================================================================================
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------
FORM 10-QSB
|X| Quarterly Report Under Section 13 or 15(d) of the
Securities Exchange Act of 1934.
For the quarterly period ended March 31, 1999
Commission File No. 0-27994
----------------------
The Publishing Company of North America, Inc.
(Exact name of small business issuer as specified in its charter)
Florida 59-3203301
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
186 P.C.N.A. Parkway
Lake Helen, FL 32744
904-228-1000
(Address and telephone number
of principal executive offices)
Indicate by check mark 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:
|X| Yes |_| No
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:
Class Outstanding at March 31, 1999
- --------------------------- -----------------------------
Common Stock: no par value 3,263,000
Transitional Small Business Disclosure Format (check one): |_| Yes |X| No
================================================================================
<PAGE>
The Publishing Company of North America, Inc.
Form 10-QSB - March 31, 1999
INDEX
Page
PART I - FINANCIAL INFORMATION
ITEM 1. Financial Statements
Consolidated Balance Sheets
as of March 31, 1999 (unaudited) and December 31, 1998 3
Consolidated Statements of Operations
for the three months ended March 31, 1999 and 1998
(unaudited) 4
Consolidated Statements of Cash Flows
for the three months ended March 31, 1999 and 1998
(unaudited) 5 - 6
Notes to unaudited interim financial statements 7 - 9
ITEM 2. Management's Discussion and Analysis of Interim Financial
Condition and Results of Operations 10 - 14
PART II - OTHER INFORMATION
ITEM 5. Other Information 15
ITEM 6. Exhibits and Reports on Form 8-K 15
Exhibit 27 - Financial data schedule
2
<PAGE>
The Publishing Company of North America, Inc.
Form 10-QSB - March 31, 1999
Consolidated Balance Sheets
<TABLE>
<CAPTION>
March 31, December 31,
1999 1998
--------------------------------------
<S> <C> <C>
Assets (Unaudited)
Current assets:
Cash and cash equivalents $2,347,445 $2,331,633
Accounts receivable, less allowance for doubtful
accounts of $191,247 at March 31, 1999
and $179,859 at December 31, 1998 252,382 328,045
Directories in progress 288,218 344,805
Other current assets 177,083 109,779
--------------------------------------
Total current assets 3,065,128 3,114,262
Property and equipment, net 1,290,011 1,318,089
Investment in College Directory Publishing Corporation 200,000 200,000
Other assets 168,643 248,663
--------------------------------------
Total assets $4,723,782 $4,881,014
======================================
Liabilities and shareholders' equity
Current liabilities:
Accounts payable $115,843 $214,861
Accrued expenses 265,447 181,629
Income taxes payable 66,296 70,296
Deferred revenue 778,393 948,353
Mortgage payable 53,333 53,333
--------------------------------------
Total current liabilities 1,279,312 1,468,472
Mortgage payable after one year 626,667 640,000
--------------------------------------
Total liabilities 1,905,979 2,108,472
Shareholders' equity:
Common shares, no par value:
15,000,000 shares authorized; 4,897,300 shares
issued at March 31, 1999; 4,871,900 shares
issued at December 31, 1998 5,876,696 5,831,448
Accumulated deficit (1,894,758) (1,923,074)
Unearned compensation, net (5,433) (6,348)
Treasury stock, at cost; 1,634,300 shares at March 31,
1999; 1,605,300 shares at December 31, 1998 (1,158,702) (1,129,484)
--------------------------------------
Total shareholders' equity 2,817,803 2,772,542
--------------------------------------
Total liabilities and shareholders' equity $4,723,782 $4,881,014
======================================
</TABLE>
See accompanying notes.
3
<PAGE>
The Publishing Company of North America, Inc.
Form 10-QSB - March 31, 1999
Consolidated Statement of Operations
(unaudited)
<TABLE>
<CAPTION>
Three months ended
March 31, March 31,
1999 1998
------------------------------------
<S> <C> <C>
Net sales $1,428,267 $1,957,733
Costs and expenses:
Production 332,729 446,761
Marketing and selling 623,306 1,065,143
Depreciation 33,158 45,480
Amortization 6,180 30,902
General and administrative 415,179 600,332
------------------------------------
1,410,552 2,188,618
------------------------------------
Income (loss) from operations 17,715 (230,885)
Interest income (expense), net 10,601 (7,966)
------------------------------------
Net income (loss) $28,316 ($238,851)
====================================
Net income (loss) per common share - basic $0.01 ($0.05)
====================================
Net income (loss) per common share - diluted $0.01 ($0.05)
====================================
Shares used in computing net income (loss) per share - basic 3,253,613 4,864,537
====================================
Shares used in computing net income (loss) per share - diluted 3,435,114 4,864,537
====================================
</TABLE>
See accompanying notes.
4
<PAGE>
The Publishing Company of North America, Inc.
Form 10-QSB - March 31, 1999
Consolidated Statements of Cash Flows
(unaudited)
<TABLE>
<CAPTION>
Three months ended
March 31, March 31,
1999 1998
--------------------------------------
<S> <C> <C>
Cash flows from operating activities
Net income (loss) $28,316 ($238,851)
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities:
Depreciation and amortization 39,338 76,382
Accretion of unearned compensation 915 2,188
Bad debt expense 101,791 136,296
Exchange of common stock for services 6,299 --
(Increase) decrease in accounts receivable (23,728) 338,781
Decrease (increase) in directories in progress 56,587 (261,062)
Decrease (increase) in other assets 6,536 (157,845)
Decrease in accounts payable (65,068) (664,773)
Decrease in income taxes payable (4,000) --
Increase (decrease) in accrued expenses 83,818 (79,510)
(Decrease) increase in deferred revenue (169,960) 56,226
--------------------------------------
Net cash provided by (used in) operating activities 60,844 (792,168)
Cash flows from investing activities
Purchases of property, plant and equipment (5,080) (30,206)
--------------------------------------
Net cash used in investing activities (5,080) (30,206)
Cash flows from financing activities
Repayment of mortgage principal (13,333) (13,333)
Repayment of capital lease obligation -- (813)
Proceeds from the exercise of stock options 2,600 --
Purchase of treasury stock (29,219) (13,117)
--------------------------------------
Net cash used in financing activities (39,952) (27,263)
Net increase (decrease) in cash and cash equivalents 15,812 (849,637)
Cash and cash equivalents at beginning of period 2,331,633 1,710,304
--------------------------------------
Cash and cash equivalents at end of period $2,347,445 $860,667
======================================
</TABLE>
5
<PAGE>
The Publishing Company of North America, Inc.
Form 10-QSB - March 31, 1999
Consolidated Statements of Cash Flows (continued)
(unaudited)
<TABLE>
<CAPTION>
Three months ended
March 31, March 31,
Supplemental cash flow information 1999 1998
--------------------------------------
<S> <C> <C>
Interest paid $12,898 $15,976
======================================
Exchange of advertising for supplies $6,319 $8,045
======================================
Reduction of accounts payable by issuance of common stock $33,950 --
======================================
</TABLE>
See accompanying notes.
6
<PAGE>
The Publishing Company of North America, Inc.
Form 10-QSB - March 31, 1999
Notes to Unaudited Interim Consolidated Financial Statements
1. Basis of Presentation
The accompanying unaudited consolidated financial statements of The Publishing
Company of North America, Inc. and subsidiaries (the "Company") have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB and Item 310(b)
of Regulation S-B. Accordingly, they do not include all the information and
footnotes required by generally accepted accounting principles for complete
financial statements. It is recommended that these financial statements be read
in conjuction with the Company's audited financial statements as of December 31,
1998. In the opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have been
included in the accompanying unaudited consolidated financial statements. The
results of operations of any interim period are not necessarily indicative of
the results of operations for the fiscal year.
Adoption of SFAS No. 130, "Reporting Comprehensive Income", and SFAS No. 131,
"Disclosures about Segments of an Enterprise and Related Information", had no
significant impact on the Company's results of operations or shareholders'
equity.
2. Consolidation
The consolidated financial statements include the accounts of The Publishing
Company of North America, Inc., and its wholly-owned subsidiaries College
Directory Publishing, Inc. (CDP) during the period July 3, 1997 to June 10, 1998
(see Note 9), PCNA Communications Corporation since its incorporation on October
14, 1998 and Attorneys Online, Inc. since its incorporation on February 15, 1999
(collectively, the Company). Intercompany transactions have been eliminated in
consolidation.
3. Cash and Equivalents
The Company considers all highly-liquid investments with a maturity of three
months or less when purchased to be cash equivalents.
4. Accounts Receivable
Accounts receivable are comprised primarily of amounts due from advertisers in
the bar association directories. The Company's allowance for doubtful accounts
is estimated by management as a percentage of sales. All amounts outstanding in
excess of six months are written off.
5. Revenue Recognition
Revenues and related costs are recorded by the Company upon shipment of
directories. Costs accumulated under directories in progress are stated at
estimated costs, not in excess of estimated realizable value. Deferred revenue
represents amounts received from advertisers prior to shipment of the related
directories.
7
<PAGE>
The Publishing Company of North America, Inc.
Form 10-QSB - March 31, 1999
Notes to Unaudited Interim Consolidated Financial Statements (continued)
6. Earnings Per Share
The following table sets forth the computation of basic and diluted earnings per
share in accordance with Financial Accounting Standard Number 128, "Earnings Per
Share":
<TABLE>
<CAPTION>
Three months ended March 31,
1999 1998
-------------------------------
<S> <C> <C>
Numerator:
Net income (loss) from continuing operations $28,316 ($238,851)
-------------------------------
Numerator for basic earnings per share - income
(loss) available to common shareholders 28,316 (238,851)
Effect of dilutive securities -- --
-------------------------------
Numerator for diluted earnings per share -
income (loss) available to common
shareholders after assumed conversions 28,316 (238,851)
Denominator:
Denominator for basic earnings per share -
weighted-average shares 3,253,613 4,864,537
Effect of dilutive securities - stock options 181,501 --
-------------------------------
Denominator for diluted earnings per share -
adjusted weighted-average shares and
assumed conversions 3,435,114 4,864,537
Basic earnings per share $0.01 ($0.05)
===============================
Diluted earnings per share $0.01 ($0.05)
===============================
</TABLE>
In computing diluted EPS for 1998, options for 97,000 common shares were
excluded from the diluted earnings per share computation because their effects
would have been antidilutive.
7. Stock-based Compensation
The Company accounts for employee stock-based compensation under the provisions
of Accounting Principles Board (APB) Opinion No. 25, Accounting for Stock Issued
to Employees. Accounting for the issuance of stock options under the provisions
of APB No. 25 typically does not result in compensation expense for the Company
as the exercise price of options are normally established at a price which
approximates the fair market value of the Company's common stock on the date of
grant.
8
<PAGE>
The Publishing Company of North America, Inc.
Form 10-QSB - March 31, 1999
Notes to Unaudited Interim Consolidated Financial Statements (continued)
8. Use of Estimates
The preparation of consolidated financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.
9. Acquisition and Sale of College Directory Publishing, Inc.
On July 3, 1997, the Company, through a wholly-owned subsidiary, acquired 100%
of the outstanding capital stock of College Directory Publishing, Inc. ("CDP").
The acquisition was accounted for under the purchase method of accounting, and
accordingly, the results of operations were included in the Company's
consolidated statements of operations from the date of acquisition until the
sale of CDP on June 10, 1998. The purchase price was allocated to assets
acquired and liabilities assumed based on fair market value at the date of
acquisition. This resulted in an excess of purchase price over net assets
acquired of $1,947,282 which was amortized on a straight line basis over 20
years until CDP's sale, at which time $91,935 of goodwill had been amortized.
On June 10, 1998, the Company sold 100% of CDP to a group headed by the
executive management of CDP in exchange for (i) $1,400,000 (including $1,100,000
in operating loans made to CDP by the Company); (ii) a $100,000 note from the
corporation acquiring CDP (the "Acquiror" or "College Directory Publishing
Corporation") due upon the earlier of December 15, 1999 or completion of the
Acquiror's initial public offering ("IPO"); $200,000 in preferred stock of the
Acquiror convertible into $1,000,000 of common stock upon completion of an IPO
by the Acquiror; and (iv) 750,000 shares of the Company's common stock that it
issued when it acquired CDP in July 1997. The Company posted a loss of $220,744
as a result of the sale transaction.
10. Treasury Stock
Pursuant to a buy-back plan approved by its Board of Directors in May 1997, the
Company purchased 884,300 shares of its common stock in open market and private
transactions through March 31, 1999 for approximately $815,000. The Company
re-acquired an additional 750,000 shares of its common stock when it sold CDP in
June 1998 (see Note 9).
9
<PAGE>
The Publishing Company of North America, Inc.
Form 10-QSB - March 31, 1999
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
INTERIM FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
The following table sets forth the Company's results of operations for the
quarters ended March 31, 1999 and 1998, showing the results of its bar and
medical association publishing division (PCNA) and CDP separately and on a
consolidated basis:
<TABLE>
<CAPTION>
Three months ended Three months ended
March 31, 1999 March 31, 1998
PCNA PCNA CDP Consolidated
---------------- --------------------------------------------------
<S> <C> <C> <C> <C>
Net sales $1,428,267 $1,957,733 -- $1,957,733
Costs and expenses:
Production 332,729 446,761 -- 446,761
Marketing and selling 623,306 1,000,175 $64,968 1,065,143
Depreciation 33,158 40,219 5,261 45,480
Amortization 6,180 30,902 -- 30,902
General and administrative 415,179 486,539 113,793 600,332
---------------- --------------------------------------------------
1,410,552 2,004,596 184,022 2,188,618
---------------- --------------------------------------------------
Income (loss) from operations 17,715 (46,863) (184,022) (230,885)
Other income (expense), net 10,601 4,956 (12,922) (7,966)
---------------- --------------------------------------------------
Net income (loss) $28,316 ($41,907) ($196,944) ($238,851)
================ ==================================================
</TABLE>
PCNA's revenues decreased 27% for the quarter ended March 31, 1999 from
the same period a year earlier. In the first quarter of 1998 the Company
published 25 directories at an average of $78,000 per directory in revenues;
however, $686,000 of that quarter's revenues were for five directories which
were delayed from the fourth quarter of 1997 into 1998 for various reasons.
There was no such delay in the fourth quarter of 1998 into the first quarter of
1999. Average revenues excluding these five were $64,000 per directory. In the
first quarter of 1999 the Company published 16 directories at an average of
$89,000 per directory. Three of the five directories that were delayed into the
first quarter of 1998 published again in the first quarter of 1999; excluding
these three for comparison purposes, average revenues per directory in the first
quarter of 1999 was $78,000.
PCNA generally has published under a "free directory program" by which
directories are provided to all members of a professional association at no
charge to either the individual members or the association. In mid-1998 efforts
began to transition agreements with associations to a "directory participation
program" by which directories may be purchased by either individual members or
the association, often for a charge which can be billed as shipping and
handling. In some cases, associations may choose a directory price from which
PCNA and the association share in the revenues. This program is expected to
provide at least two benefits to PCNA. First, it is expected to provide an
additional source of revenue that will offset production and distribution costs.
Secondly, it is expected to reduce PCNA's cost by reducing the number of
directories that must be printed and distributed. In the most recent quarter,
PCNA published three directories under the new program and realized
approximately $24,000 in revenues in directory sales, net of royalties due to
associations and in addition to advertising revenues.
10
<PAGE>
The Publishing Company of North America, Inc.
Form 10-QSB - March 31, 1999
Results of Operations (continued)
There can be no assurances that PCNA will be able to transition most of its
agreements to the new program, nor that it will realize the benefits to revenues
and costs described above. Currently, about one-half of the directories
scheduled for the third quarter of 1999 are under the new program.
The following table sets forth PCNA's results of operations (excluding
CDP) in percentages of revenues for the quarters ended March 31, 1999 and 1998,
and for the year ended December 31, 1998:
<TABLE>
<CAPTION>
Three months ended Year ended
March 31, 1999 March 31, 1998 Dec. 31, 1998
-------------------------------------------------------------------
<S> <C> <C> <C>
Net sales 100.0% 100.0% 100.0%
Costs and expenses:
Production 23.3% 22.8% 24.2%
Marketing and selling 43.7% 51.1% 50.8%
Depreciation 2.3% 2.1% 2.4%
Amortization 0.4% 1.6% 1.0%
General and administrative 29.1% 24.8% 25.1%
-------------------------------------------------------------------
98.8% 102.4% 103.5%
-------------------------------------------------------------------
Income (loss) from operations 1.2% (2.4)% (3.5)%
===================================================================
</TABLE>
The primary reason for PCNA's income from operations in the most recent
quarter compared to an operating loss in the same period a year earlier and an
operating loss for all of 1998 was the reduction in marketing and selling
expense to 43.7% of revenues. These expenses as a percentage of revenues were
7.4% lower in the first quarter of 1999 than in the first quarter of 1998.
Payroll related expenses were reduced by 4.4% of revenues for the respective
periods. Rent expense decreased by 1.5% of revenues for the respective periods
primarily due to the closure of the Orlando sales office. In the first quarter
of 1998, PCNA incurred approximately $50,000 in expenses, or about 2.5% of
revenues, in a campaign to recruit outside sales contractors; there was no such
campaign in the most recent quarter.
PCNA's production expense for the most recent quarter rose to 23.3% of
revenues compared to 22.8% for the same period a year earlier primarily due to
labor costs for which the decrease was not proportionate to the decrease in
revenues.
While general and administrative expenses decreased $71,360 in the most
recent quarter from the same period a year earlier, the expenses rose as a
percentage of the respective revenues simply because the decrease was not
proportionate with the decrease in revenues. General and administrative payroll
increased very slightly in the first quarter of 1999 over first quarter 1998;
however, given the decrease in revenues, it accounted for 3.0% of the 4.3%
increase in these expenses when expressed as a percentage of revenues. No other
individual general and administrative expense had a significant effect upon the
overall change.
Amortization expense decreased in the first quarter of 1999 from the same
period in 1998 due solely to the elimination of the amortization of the goodwill
relating to the acquisition of CDP in 1997.
11
<PAGE>
The Publishing Company of North America, Inc.
Form 10-QSB - March 31, 1999
Liquidity and Capital Resources
The Company's cash and equivalents increased $15,812 to $2,347,445 at
March 31, 1999 from $2,331,633 at December 31, 1998. Most of these funds are
invested in either short-term bank certificates of deposit or in money market
funds.
During the most recent quarter, the Company's cash flow improved
significantly from that of the same period a year earlier, regardless of whether
CDP is considered. The Company's operating activities provided approximately
$61,000 of cash in the first quarter of 1999, compared to approximately $792,000
of cash used in the same period in 1998. The primary uses of cash in the first
quarter of 1998 were a reduction of $664,773 in Accounts Payable, the net loss
of $238,851 and an increase of $261,062 in Directories in Progress, which are
costs incurred for directories to be published in future periods. A reduction of
$338,781 in Accounts Receivable provided cash in the quarter ended March 31,
1998, due mostly to receipts relating to the high volume of advertising
published by CDP in the last quarter of 1997.
During the most recent quarter, the Company purchased 29,000 shares of its
common stock at an average cost of $1.01 per share. Since the Company began
purchasing its common stock in January 1998, it has purchased 884,300 shares in
open market and private transactions for approximately $815,000, or an average
cost of $0.92 per share. The Company also re-acquired an additional 750,000
shares of its common stock when it sold CDP in June 1998 (see Note 9 to the
financial statements). The Company presently does not foresee the purchase of
additional shares.
Based on current cash balances and the Company's anticipated results of
future operations, the Company believes that it has sufficient cash resources to
fund its operations for at least the next twelve months.
12
<PAGE>
The Publishing Company of North America, Inc.
Form 10-QSB - March 31, 1999
Year 2000 Considerations
Many companies will face potentially serious issues associated with the
inability of existing data processing hardware and software to appropriately
recognize calendar dates beginning in the year 2000. The Company believes it has
identified its software applications and hardware devices that might be impacted
by the Year 2000 issue.
All computer software used by the Company is operated on personal
computers. The Company's general ledger system has been upgraded and is Year
2000 compliant. The Company believes that all of its desktop publishing software
is Year 2000 compliant. A Year 2000 compliant version of the Company's primary
database application for sales order management and billing has been installed
and is in use by the Company. The Company is on schedule with other system
upgrades that are either on hand or readily available and it expects all of its
Information Technology (IT) systems, including its internal telephone system, to
be Year 2000 compliant on or before June 1, 1999. When completed, the Company
estimates that its total costs in obtaining Year 2000 compliance will have been
less than $25,000.
Generally, the goods and services that the Company purchases from its
vendors and suppliers are not considered to be directly vulnerable to Year 2000
issues; additionally, these goods and services are not unique and are available
to the Company from numerous alternative vendors and suppliers. Reliable
telephone service is critical particularly to the Company's sale of advertising
in its publications; disruption of telephone service could have a material
effect upon the Company's results of operations and, depending on the duration,
financial condition. The Company has not yet contacted the printing companies
and other large vendors in an effort to assess the compliance of their systems
with Year 2000; it intends to make these contacts and assessments in mid-1999,
well in time to switch to alternative suppliers if necessary. The Company does
not believe it is practicable to contact its many thousands of advertising
clients with regard to assessing their Year 2000 compliance. No single client
represents as much as 1% of the Company's overall revenues; therefore, the
Company believes that it would not be materially adversely affected by the
impact of Year 2000 upon any individual client.
At this time, the Company considers that the most reasonably likely worst
case scenario would include a loss of power and/or a loss of telephone service
for more than a very few days. In preparation for such an event, the Company has
procured and installed its own generator to power its telephone system in the
event of a failure by the utility company to maintain service. The Company plans
to procure a similar generator as an alternative power supply for its critical
computer systems by mid-1999. The Company does have alternative means available
if its primary source for long-distance telephone service fails; however, given
that such a failure would likely be widespread if it occurs at all, the Company
can not reliably predict how satisfactory these alternative means would be. The
Company can not replicate an alternative source for its local telephone service,
if it should fail.
The Company does not expect that the cost of addressing any Year 2000
issue that is within its control will be a material event or uncertainty that
would have a material adverse effect on future operating results or financial
condition.
13
<PAGE>
The Publishing Company of North America, Inc.
Form 10-QSB - March 31, 1999
Forward-Looking Statements
The statements made above relating to the Company's belief that it should
realize more savings in third-party costs in 1999 as a result of its Directory
Participation Program (DPP), to the Company's future liquidity, and to the
Company's readiness the for Year 2000 are forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. The statements that express the "belief",
"anticipation", "plans", "expectations" and similar expressions are intended to
identify forward-looking statements. The results anticipated by these
forward-looking statements may not occur. While the Company believes that these
statements are accurate, the Company's business is dependent upon general
economic conditions and various conditions specific to its industry and future
trend results cannot be predicted with certainty. Important factors that may
cause actual results to differ materially from the forward-looking statements
include the following: 1) the Company not realizing a reduction in the quantity
of directories it has to print pursuant to the DPP, 2) an unexpected downturn in
the Company's operating performance, 3) unexpected impacts of the Year 2000
event directly or indirectly upon the Company, and 4) impacts of the Year 2000
event over which the Company has no control and could not practicably prepare
for.
14
<PAGE>
The Publishing Company of North America, Inc.
Form 10-QSB - March 31, 1999
PART II - OTHER INFORMATION
ITEM 5. Other Information
Not applicable.
ITEM 6. Exhibits and Reports on Form 8-K
a. Exhibits
1. Exhibit 27 - Financial Data Schedule
b. No reports on Form 8-K were filed during the quarter ended March 31,
1999.
15
<PAGE>
The Publishing Company of North America, Inc.
Form 10-QSB - March 31, 1999
In accordance with the requirements of the Securities Exchange Act of 1934, the
registrant caused this report to be signed on its behalf on May 14, 1999 by the
undersigned, thereunto duly authorized.
The Publishing Company of North America, Inc.
/s/ Peter S. Balise
-----------------------------------
President (Chief Executive Officer)
/s/ James M. Koller
-----------------------------------
Chief Financial Officer (Principal
Financial and Accounting Officer)
16
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED MARCH
31, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Dec-31-1999
<PERIOD-END> Mar-31-1999
<CASH> 2,347,445
<SECURITIES> 0
<RECEIVABLES> 443,629
<ALLOWANCES> (191,247)
<INVENTORY> 0
<CURRENT-ASSETS> 3,065,128
<PP&E> 1,747,678
<DEPRECIATION> (457,667)
<TOTAL-ASSETS> 4,723,782
<CURRENT-LIABILITIES> 1,279,312
<BONDS> 680,000
0
0
<COMMON> 5,876,696
<OTHER-SE> (3,058,893)
<TOTAL-LIABILITY-AND-EQUITY> 4,723,782
<SALES> 1,428,267
<TOTAL-REVENUES> 1,428,267
<CGS> 332,729
<TOTAL-COSTS> 1,410,552
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 10,601
<INCOME-PRETAX> 28,316
<INCOME-TAX> 0
<INCOME-CONTINUING> 28,316
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 28,316
<EPS-PRIMARY> 0.01
<EPS-DILUTED> 0.01
</TABLE>
