U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 10-QSB
              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                For the quarterly period ended September 30, 1999

                                       OR

              [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
               For the transition period from ________ to ________



                    Consortium Service Management Group, Inc.
             (Exact name of registrant as specified in its charter)


    Texas                           0-27359                          74-2653437
--------------              ------------------------               -------------
  (state of                 (Commission File Number)               (IRS Employer
incorporation)                                                      I.D. Number)


                   500 North Shoreline Drive, Suite 701 North
                            Corpus Christi, TX 78471
                                  512-887-7546
             -------------------------------------------------------
             (Address and telephone number of registrant's principal
               executive offices and principal place of business)



        Indicate by check mark whether the  registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934 during the  preceding  twelve  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 ___ No X (The registrant  became
subject to filing requirements on November 15, 1999.)

        As  of  September  30,  1999,   there  were  2,918,095   shares  of  the
Registrant's Common Stock, par value $0.001 per share, outstanding.

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



<PAGE>



                         PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

                    Consortium Service Management Group, Inc.
                                  Balance Sheet
                               September 30, 1999
<TABLE>
<CAPTION>

                                                 Unaudited             Audited
                                                 09-30-99              12-31-98
                                                 ---------             --------

CURRENT ASSETS

<S>                                              <C>                   <C>
Cash                                             $ (1,069)             $ 50,179
Account Receivable-Alba                            17,800                17,800
Notes Receivable-Current                          178,000                   600
                                                 --------              --------

        Total Current Assets                     $194,731              $ 68,579

FIXED ASSETS

Furniture and Fixtures                           $  8,118              $  8,118
Equipment                                          50,400                50,400
Accumulated Depreciation                          (20,331)              (20,331)
                                                 --------              --------

        Total Property and Equipment             $ 38,187              $ 38,187

OTHER ASSETS

UEC Founders Fund                                $ 73,843              $ 73,843
Account Receivable-UEC                            383,613               383,613
Account Receivable-Other                            2,474                     -
Allowance for Doubtful Accounts                  (323,613)             (323,613)
Investment-UEC                                    569,849               522,014
Employee Advances                                  30,565                39,533
                                                 --------              --------

        Total Other Assets                       $736,731              $695,390

Total Assets                                     $969,649              $802,156
</TABLE>
                                                 ========              ========

                                        2

<PAGE>



                    Consortium Service Management Group, Inc.
                            Balance Sheet (Continued)
                               September 30, 1999
<TABLE>
<CAPTION>

                                                 Unaudited             Audited
                                                 09-30-99              12-31-98
                                                 ---------             --------


CURRENT LIABILITIES

<S>                                              <C>                 <C>
Accounts Payable                                 $    6,500          $   33,174
Taxes Payable                                        12,852
Notes Payable to Stockholders                       417,158             539,655
Interest Payable                                     22,904              15,000
Stock Subscribed                                         30                   -
Other Current Liabilities                            31,000                   -
                                                 ----------          ----------

        Total Current Liabilities                $  490,444          $  587,829

STOCKHOLDERS EQUITY

Preferred Stock $.001 Par Value                  $       76          $       76
10,000,000 Shares Authorized;
73,669 issued and outstanding

Common Stock $.001 Par Value                          2,918               2,271
40,000,000 Shares Authorized;
2,271,233 issued and outstanding
at 12-31-98; 2,918,095 issued
and outstanding at 9-30-99

Additional Paid-In Capital                        1,993,279           1,453,561

Retained Earnings, 12-31-98                      (1,430,594)         (1,430,594)
Current Year Earnings                               (86,474)
                                                 ----------          ----------

        Total Stockholders Equity                $  479,205          $   25,314
                                                 ----------           ---------

        Total Liabilities and
        Stockholders Equity                      $  969,649          $  613,143
                                                 ==========          ==========
</TABLE>

                                        3

<PAGE>



                    Consortium Service Management Group, Inc.
                             Statements of Operation
                 For the Third Quarter Ending September 30, 1999
<TABLE>
<CAPTION>


                                                 09-30-99              09-30-98
                                                 --------              --------

<S>                                              <C>                   <C>
Revenues                                         $      0              $ 79,542

Cost of Services Sold                               5,331                79,726
                                                 --------              --------

Gross Margin                                       (5,332)                 (184)

General and Administrative Expenses                28,198                82,295
                                                 --------              --------

Operating Income                                  (33,530)              (82,479)

Interest in Income from
  Unconsolidated Company                           15,945                39,935

Income Taxes                                            -                     -
                                                 --------             ---------

Net Gain or (Loss)                                (17,585)              (42,544)
                                                 ========              ========

Net Loss per Share of Common Stock
2,918,095 shares outstanding at
9-30-99 and 2,271,233 shares
outstanding at 9-30-98                              (.006)                (.015)
</TABLE>


                                        4

<PAGE>



                    Consortium Service Management Group, Inc.
                             Statements of Operation
                  For the Nine Months Ending September 30, 1999
<TABLE>
<CAPTION>


                                                 09-30-99              09-30-98
                                                 --------              --------

<S>                                              <C>                   <C>
Revenues                                         $ 29,624              $209,556

Interest in Income from
  Unconsolidated Company                           47,835               119,806

Cost of Goods Sold                                 39,234               172,058
                                                 --------              --------

Gross Margin                                       38,225                37,497

General and Administrative Expenses               124,698               180,673
                                                 --------              --------

Operating Income                                  (86,474)             (143,177)

Income Taxes                                            -                     -
                                                 --------              --------

Net Gain or (Loss)                                (86,474)              (23,370)
                                                 ========              ========

Net Loss per Share of Common Stock
2,918,095 shares outstanding at
9-30-99 and 2,271,233 shares
outstanding at 9-30-98                              (.029)                (.008)
</TABLE>

                                        5

<PAGE>



                    Consortium Service Management Group, Inc.
                             Statements of Cash Flow
                  For the Nine Months Ending September 30, 1999
<TABLE>
<CAPTION>


                                                 09-30-99              09-30-98
                                                 --------              --------

CASH FLOWS FROM OPERATING ACTIVITIES:
------------------------------------

<S>                                              <C>                  <C>
Net Income                                       $ (86,474)           $ (23,370)

Adjustments to reconcile net income to net
  cash provided by operating activities

Accounts Receivable                                 (2,474)                   0
Employee Advances                                  (30,565)             (39,533)
Accounts Payable                                    (9,120)                   0
Payroll Taxes Payable                                 (503)             (13,997)
Notes Receivable-Current                          (177,400)                (600)
Other Current Liabilities                           31,000                    0
                                                 ---------            ---------

        Net Cash Used in Operations              $(275,536)           $ (77,500)

CASH FLOWS FROM INVESTING ACTIVITIES:
------------------------------------

Adjustments to reconcile net income to net
  cash provided by investing activities

Investments in UEC                               $ (47,835)           $(119,806)
Equipment                                                0              (24,650)
                                                 ---------            ---------

        Net Cash from Investing                  $ (47,835)           $(144,456)

CASH FLOWS FROM FINANCING ACTIVITIES:
------------------------------------

Adjustments to reconcile net income to net
  cash provided by financing activities

Common Stock                                     $     647            $       0
Stock Subscribed                                        30                    0
Increase in Paid-In Capital                        539,717                    0
Notes Payable to Stockholders                     (268,272)             228,750
                                                 ---------            ---------

        Net Cash Used in Financing               $ 272,122            $ 228,750
                                                 ---------             ---------

        Net Increase (Decrease) in Cash          $ (51,248)           $   6,794
                                                 =========            =========

Cash Balance at End of Period                    $  (1,069)           $  17,237
Cash Balance at Beginning of Period                 50,179               10,443
                                                 ---------            ---------

        Net Increase (Decrease) in Cash          $ (51,248)           $   6,794
                                                 =========            =========
</TABLE>


                                        6

<PAGE>



Item 2. Management's Discussion and Analysis of Financial Condition and  Results
        of Operations

        The following discussion and analysis should be read in conjunction with
        the  financial  statements  and  the  accompanying  notes thereto and is
        qualified  in  its  entirety  by  the  foregoing  and  by  more detailed
        financial  information  appearing  elsewhere.   See  "Item 1.  Financial
        Statements."

        Results of Operations  -  Third Quarter  of Fiscal Year 2000 Compared to
        ------------------------------------------------------------------------
        Third Quarter of Fiscal Year 1999
        ---------------------------------

        There were no revenues  received during the third fiscal quarter of 1999
as compared to revenues of $79,542 received in the third fiscal quarter of 1998.
The reason for the receipt of no revenue this most recent  quarter is that there
was a delay in our receipt of payments for the tissue bonding project.

        We nevertheless provided services,  for which we will be unable to bill,
that cost $5,332  during Q3 1999 as compared  with services that cost $79,726 in
Q3 1998 or 100.2 percent of revenue for Q3 1998.  The reason we will not be able
to bill for our services during Q3 1999 is that these  services,  which were the
development  of a strategic  marketing plan for the Anaerobic Farm Waste project
and the CO2 Separator project, are not chargeable to any customers.

        Our general and  administrative  expenses  for Q3 1999 were  $28,198,  a
$54,097 or 65.7  percent  reduction  in general and  administrative  services of
$82,295  in Q3 1998.  The  reasons  for the  reduction  were  reduced  officers'
salaries,  reduced  day-to-day  operating  expenses,  and  reduced  foreign  and
domestic travel expenses.

        We suffered a net loss of $17,585  during Q3 1999 as compared with a net
loss of $42,544 during Q3 1998. The reason for the smaller loss, which was on no
revenue,  during Q3 1999 than the loss on $79,542 in revenues during Q3 1998 was
primarily the decrease in general and administrative expenses during Q3 1999.

        Results  of  Operations  -  First  Three Quarters  of  Fiscal  Year 2000
        ------------------------------------------------------------------------
        Compared to First Three Quarters of Fiscal Year 1999
        ----------------------------------------------------

        Our revenues dropped dramatically from $209,556 in the first nine months
of 1998 to $29,624 in the first nine  months of 1999 - a decrease of $179,932 or
85.9 percent.  The decrease was due to delays in the receipt of payments for the
tissue bonding project.

        Our gross  margin was a  negative  132.4  percent  during the first nine
months of 1999 compared to a gross margin of 17.9 percent  during the comparable
period of 1998.  The reasons we were not able to recover our costs of  providing
the services for which we bill others are the delays in receiving tissue bonding
payments and the  non-chargeability  of our  services in  developing a strategic
marketing plan for the anaerobic farm waste and CO2 separator projects.

        General  and  administrative  expenses  in the first nine months of 1999
were $123,175, or 415.8 percent of revenue, compared with general and

                                        7

<PAGE>



administrative  expenses  of $180,674  during the first nine months of 1998,  or
86.2 percent of revenues.  On  considerably  less revenue  during the first nine
months of 1999,  we cut  general  and  administrative  costs by  $57,499 or 31.8
percent.  The  reduction  in general  and  administrative  costs is due to lower
foreign and domestic travel expenses, reduced day-to-day operating expenses, and
lower officers' salaries.

        We suffered a net loss of $84,950  during the first nine months of 1999,
an increase of $61,579 or 263.5 percent from the net loss of $23,371  during the
same period of 1998. The dramatic decrease in sales during the first nine months
of 1999 is the cause of the increased loss.

        Outlook
        -------

        We manage to survive by selling stock to management and shareholders and
by borrowing  working  capital from our  shareholders in exchange for promissory
notes.  We are  optimistic  about  the  future,  however,  both  short-term  and
long-term.

        Our anaerobic farm waste disposal equipment project is on track with the
Ukrainian  design experts having visited the farm in Idaho and having designed a
plant to fit the  needs of the  farmer.  We are in final  negotiations  with the
farmer for plant  purchase.  Assuming  the sale goes  through,  we estimate  the
installation  will occur during the fourth  quarter of 2000 and we will commence
to receive revenue from the plant during the first quarter of 2001.

        We have  completed  a letter of intent to  install  one  carbon  dioxide
separator  plant in Alabama.  We will  complete  the  contract  during the first
quarter of 2000 and expect to  manufacture  and  install  the plant by the third
quarter of 2000 with revenue commencing during that quarter.

        Management's Statement on Y2K
        -----------------------------

        Our   information   technology   system  is  Y2K   compliant   based  on
communications with our hardware and software providers and in-house testing. We
have no non-information  technology systems affecting  business  operations.  We
have no multiple computer systems.

        Third parties with whom we have material  relationships  have  confirmed
that they expect no business interruptions.  We expect no cost directly relating
to fixing Y2K  issues,  such as  modifying  software  and  hiring  Y2K  solution
providers.  We estimate no material lost revenues due to Y2K issues,  and we are
establishing a contingency plan.

        Our  future  results  of  operations   and  the  other   forward-looking
statements  contained herein involve a number of risks and uncertainties.  Among
the  factors  that  could  cause  actual  results to differ  materially  are the
following: inability of the Company to obtain needed additional capital and loss
of personnel -  particularly  president and chief  executive  officer  Donald S.
Robbins - as a result of accident or for health reasons.


                                        8

<PAGE>


Item 6. Exhibits and Reports on Form 8-K

(a)     Exhibits

        Exhibit                             Item
        -------                             -----

        27                   -      Financial Data Schedule.

(b)     Reports on Form 8-K

        None.


                                   SIGNATURES

        Pursuant to the requirements of the Exchange Act of 1934, the Registrant
has duly  caused  this  report  to be signed  on its  behalf by the  undersigned
hereunto duly authorized.

Date:  February ____, 2000             Consortium Service Management Group, Inc.



                                        By /s/ Donald S. Robbins
                                           -------------------------------------
                                           Donald S. Robbins, President and
                                           Chief Executive Officer

                                        9