FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

(Mark One)

[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
         SECURITIES EXCHANGE ACT OF 1934

         For the quarterly period ended:       May 31, 1997


[  ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
         SECURITIES EXCHANGE ACT OF 1934

                          Commission File No.: 0-10093


                          AMERICAN METALS SERVICE, INC.
       (Exact name of small business issuer as specified in its charter)


         Florida                                                 59-1224913
(State or other jurisdiction of                               (I.R.S. Employer
incorporation or organization)                               Identification No.)


           376 Main Street, P.O. Box 74, Bedminster, New Jersey 07921
              (Address of principal executive offices)     (Zip Code)


                                 (908) 234-0078
                           (Issuer's telephone number)

                                 Not Applicable
              (Former name, former address and former fiscal year,
                          if changed since last report)

     Check  whether  the issuer (1) filed all  reports  required  to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to such filing requirements for the past 90 days.

                                 Yes X    No _____

     State the number of shares  outstanding of each of the issuer's  classes of
common equity as of the latest  practicable date: As of May 31, 1997, the issuer
had 1,950,632 shares of its common stock, par value $.01 per share, outstanding.

           Transitional Small Business Disclosure Format (check one):
                                  Yes_____  No X



<PAGE>



PART I -          FINANCIAL INFORMATION

Item 1. -         Financial Statements





                          AMERICAN METALS SERVICE, INC.
                                  BALANCE SHEET
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                 May 31,   
                                                                  1997
                                                            ----------------
                                                             ($000 Omitted)
<S>                                                             <C>
ASSETS

     Current assets:
       Cash and cash equivalents, including
         U.S. treasury bills of $2,000,000                       $2,102
                                                                 ------
           Total current assets                                  $2,102
                                                                 ======


LIABILITIES AND STOCKHOLDERS' EQUITY

     Current liabilities:
         Accounts payable and accrued liabilities                $   11
                                                                 ------
           Total current liabilities                                 11
                                                                 ------

     Stockholders' equity:
         Common stock, $.01 par value, 6,000,000
           shares authorized, 1,950,632 outstanding                  20
         Additional capital in excess of par value                3,055
         Accumulated deficit                                    (   984)
                                                                 ------

           Total stockholders' equity                             2,091
                                                                 ------

           Total liabilities and stockholders'
             equity                                              $2,102
                                                                 ======






                 See accompanying note to financial statements.


</TABLE>

<PAGE>


                          AMERICAN METALS SERVICE, INC.
                            STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>



                                                     For the three months ended
                                                              May 31,
                                                     --------------------------
                                                       1997              1996
                                                     --------          --------
                                                           ($000 Omitted,
                                                        Except Per Share Data)

<S>                                                  <C>               <C>
Interest income                                      $    26           $    25

General and administrative expenses                       16                22
                                                     -------           -------

Income before income taxes                                10                 3

Provision for income taxes                                 -                 -
                                                     -------           -------

Net income                                           $    10           $     3
                                                     =======           =======

Net income per common share                          $   .01           $     -
                                                     =======           =======

Weighted average number of shares
  outstanding (in 000's)                               1,958             1,959
                                                     =======           =======




                 See accompanying note to financial statements.

</TABLE>

                                                          
<PAGE>



                          AMERICAN METALS SERVICE, INC.
                            STATEMENTS OF OPERATIONS
                                   (Unaudited)


<TABLE>
<CAPTION>

                                                     For the nine months ended
                                                              May 31,
                                                     --------------------------
                                                       1997              1996
                                                     --------          --------
                                                           ($000 Omitted,
                                                        Except Per Share Data)

<S>                                                  <C>               <C>
Revenues:

     Interest                                        $    76           $    79
     Other income                                          1                15
                                                     -------           -------
                                                          77                94


General and administrative expenses                       44                60
                                                     -------           -------


Income before income taxes                                33                34

Provision for income taxes                                 -                 -
                                                     -------           -------

Net income                                           $    33           $    34
                                                     =======           =======

Net income per common share                          $   .02           $   .02
                                                     =======           =======

Weighted average number of shares
  outstanding (in 000's)                               1,958             1,959
                                                     =======           =======




                 See accompanying note to financial statements.

                                                               
</TABLE>





<PAGE>



                          AMERICAN METALS SERVICE, INC.
                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)


<TABLE>
<CAPTION>

                                                     For the nine months ended
                                                              May 31,
                                                     --------------------------
                                                       1997              1996
                                                     --------          --------
                                                           ($000 Omitted)

<S>                                                  <C>               <C>
Cash flows from operating activities:
     Net cash provided by
       operating activities                           $    19          $    41
                                                      -------          -------

Cash flows from financing activities:
     Purchase of common stock                        (      7)               -
                                                      -------          -------

Net increase in cash and cash
  equivalents                                              12               41
Cash and cash equivalents at beginning
  of the period                                         2,090            2,025
                                                      -------          -------
Cash and cash equivalents at end of
  the period                                          $ 2,102          $ 2,066
                                                      =======          =======

Reconciliation of net income to net 
     cash provided by operating activities:
  Net income                                          $    33          $    34
    Adjustments to reconcile net income
         to net cash provided by
         operating activities:
      Change in accounts payable
        and accrued liabilities                      (     14)               7
                                                      -------          -------
  Net cash provided by operating
    activities                                        $    19          $    41
                                                      =======          =======


                 See accompanying note to financial statements.


</TABLE>

<PAGE>



                          AMERICAN METALS SERVICE, INC.

                          NOTE TO FINANCIAL STATEMENTS

                                   (Unaudited)




     The accompanying unaudited financial statements of American Metals Service,
Inc.  (the  "Company")  as of May 31, 1997 and for the  quarters  and nine month
periods ended May 31, 1997 and 1996 reflect all material  adjustments  which, in
the opinion of management,  are necessary for a fair presentation of results for
the interim periods. Certain information and footnote disclosures required under
generally accepted accounting principles have been condensed or omitted pursuant
to the rules and regulations of the Securities and Exchange Commission, although
the Company  believes that the  disclosures are adequate to make the information
presented  not  misleading.   These  financial  statements  should  be  read  in
conjunction with the year-end financial statements and notes thereto included in
the  Company's  Annual Report on Form 10-KSB for the year ended August 31, 1996,
as filed with the Securities and Exchange Commission.

     The results of  operations  for the three and nine month  periods ended May
31, 1997 are not  necessarily  indicative  of the results to be expected for the
entire fiscal year or for any other period.



<PAGE>



Item 2. -  Management's Discussion and Analysis or Plan of
           Operations


Results of Operations
---------------------

     Until the fourth  quarter of fiscal  1992,  the  Company was engaged in the
wholesale distribution of aluminum alloys, steel and other specialty metals. The
Company has liquidated the assets of its former business and is actively seeking
an acquisition with the goal of becoming an operating  company.  In the interim,
available cash is being invested in U.S.  Treasury  securities.  Interest income
for the quarter  ended May 31,  1997,  was  approximately  $26,000,  compared to
$25,000 in the  comparable  quarter of the prior fiscal year. For the nine month
period ended May 31, 1997,  interest income was $76,000  compared to $79,000 for
the comparable  period of the prior fiscal year. The decrease in interest income
during the  current  fiscal year  compared  to the prior  fiscal year was due to
lower available interest rates on the Company's cash equivalents. Collections of
previously  written-off accounts receivable from the Company's prior business of
$1,000 and  $15,000  accounted  for the other  income in the nine month  periods
ended May 31, 1997 and 1996, respectively.

     General  and  administrative  expenses  were  $16,000  and  $22,000 for the
quarters ended May 31, 1997 and 1996, respectively,  and $44,000 and $60,000 for
the nine month periods ended May 31, 1997 and 1996,  respectively.  The decrease
in general  and  administrative  expenses  was due to  expenses  incurred in the
search for an operating  business in the prior fiscal year. A management  fee of
$12,500 per quarter is paid to an affiliated  company for accounting,  financial
and administrative  management.  This fee is based on the affiliate's  estimated
costs,  and management  believes that the allocation  method is reasonable.  The
remaining  general and  administrative  expenses for the quarters and nine month
periods ended May 31, 1997 and 1996 consist of stockholder,  insurance and other
miscellaneous expenses.


Liquidity and Capital Resources
-------------------------------

     At May 31, 1997,  cash and cash  equivalents  and net working  capital were
approximately  $2,102,000 and $2,091,000,  respectively.  U.S. Treasury bills of
approximately  $2,000,000  mature at various dates  through  August 14, 1997 and
bear  interest  rates  ranging  from  4.96% to 5.16%.  Management  believes  the
Company's cash and cash equivalents and net working capital are adequate for its
remaining business  activities and for the costs of seeking an acquisition of an
operating  business.  The net  book  value  of the  Company  at May 31,  1997 is
approximately $1.07 per share.



<PAGE>



PART II -  OTHER INFORMATION

Item 6. -  Exhibits and Reports on Form 8-K
-------    --------------------------------

         (a)    Exhibits
                --------

               (27). Financial Data Schedule for the nine months ended
                     May 31, 1997.

         (b)    Reports on Form 8-K
                -------------------

                No reports on Form 8-K were filed during the quarter for which
                this Form 10-QSB is filed.

<PAGE>



                                    SIGNATURE


     In accordance  with the  requirements  of the Exchange Act, the  registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                                                AMERICAN METALS SERVICE, INC.




Dated: June 26, 1997                             By:/s/ Mark Koscinski
                                                   ----------------------------
                                                   Mark Koscinski
                                                   Vice President and Secretary
                                                  (Principal Accounting Officer)