-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UHqy1SZVkUVyWmE7QGcUIF92uksonHi+W4L/8FFUrnzsWG0+YyLRJeoxwhY6+iXc XN02ZMHjvG02P8jwYlb6Bw== 0000794927-99-000001.txt : 19990716 0000794927-99-000001.hdr.sgml : 19990716 ACCESSION NUMBER: 0000794927-99-000001 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990531 FILED AS OF DATE: 19990715 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CANTERBURY INFORMATION TECHNOLOGY INC CENTRAL INDEX KEY: 0000794927 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-EDUCATIONAL SERVICES [8200] IRS NUMBER: 232170505 STATE OF INCORPORATION: PA FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-15588 FILM NUMBER: 99664788 BUSINESS ADDRESS: STREET 1: 1600 MEDFORD PLZ STREET 2: RTE 70 & HARTFORD RD CITY: MEDFORD STATE: NJ ZIP: 08055 BUSINESS PHONE: 6099530044 MAIL ADDRESS: STREET 1: 1600 MEDFORD PLZ CITY: MEDFORD STATE: NJ ZIP: 08055 FORMER COMPANY: FORMER CONFORMED NAME: CANTERBURY CORPORATE SERVICES INC DATE OF NAME CHANGE: 19940323 FORMER COMPANY: FORMER CONFORMED NAME: CANTERBURY EDUCATIONAL SERVICES INC /PA/ DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: CANTERBURY PRESS INC DATE OF NAME CHANGE: 19870615 10-Q 1 FORM 10-Q FOR QUARTER ENDING 5/31/99 FORM 10-Q ----------- SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 -------------------------------------- Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarter Ended: Commission File Number: May 31, 1999 0-15588 CANTERBURY INFORMATION TECHNOLOGY, INC. ----------------------------------------------------- (Exact name of registrant as specified in its charter) Pennsylvania 23-2170505 (State of Incorporation) (I.R.S. Employer Identification No.) 1600 Medford Plaza Route 70 & Hartford Road Medford, New Jersey 08055 (Address of principal executive office) Telephone Number: (609) 953-0044 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 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 --- --- The number of shares outstanding of the registrant's common stock as of the date of the filing of this report: 8,698,022 shares. FORM 10-Q PART 1 - FINANCIAL INFORMATION ----------------------------------- Item 1. Financial Statements CANTERBURY INFORMATION TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEET ------------------------------------------ ASSETS May 31, 1999 November 30, (Unaudited) 1998 ----------- ------------- Current Assets: Cash and cash equivalents $ 587,479 $ 287,274 Accounts receivable, net 1,509,216 1,141,544 Notes receivable 349,765 341,268 Prepaid expenses and other assets 1,550,598 1,494,001 Deferred income tax benefit 150,000 150,000 ---------- ---------- Total Current Assets 4,147,058 3,414,087 Property and equipment at cost, net of accumulated depreciation and amortization of $4,296,000 and $3,993,000 2,125,735 2,323,996 Goodwill net of accumulated amortization of $2,128,000 and $1,910,000 8,775,120 8,993,805 Deferred income tax benefit 2,712,919 2,712,919 Notes receivable 7,821,318 7,994,641 Other assets 313,040 260,967 ----------- ------------ Total Assets $25,895,190 $25,700,415 =========== =========== See Accompanying Notes FORM 10-Q CANTERBURY INFORMATION TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEET LIABILITIES AND SHAREHOLDERS' EQUITY May 31, 1999 November 30, (Unaudited) 1998 ------------ ------------ Current Liabilities: Accounts payable - trade $ 228,665 $ 357,100 Accrued expenses 247,764 231,743 Income taxes payable - 63,217 Unearned tuition income 1,033,405 954,128 Current portion, long-term debt 976,877 1,738,565 ------------ ------------ Total Current Liabilities 2,486,711 3,344,753 Long-term debt 2,640,075 2,640,075 Deferred income tax liability 2,964,369 3,115,801 Common stock, $.001 par value, 50,000,000 shares authorized; 8,698,000 and 6,421,000 issued 8,698 6,421 Additional paid in capital 18,712,836 17,580,522 Unrealized loss on securities available for sale (343,507) (143,757) Deficit (166,692) (436,100) Less treasury shares, at cost (407,300) (407,300) ----------- ----------- Total Shareholders' Equity 17,804,035 16,599,786 ----------- ----------- Total Liabilities and Shareholders' Equity $25,015,190 $25,700,415 ============ ============ See Accompanying Notes FORM 10-Q CANTERBURY INFORMATION TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF INCOME The following Consolidated Statements of Income for the three- month and six month periods ended May 31, 1999, and May 31, 1998, are unaudited, but the Company believes that all adjustments (which consist only of normal recurring accruals) necessary for a fair presentation of the results of operations for the respective periods have been included. Quarterly results of operations are not necessarily indicative of results for the full year. Three months ended Six months ended May 31, May 31, (Unaudited) (Unaudited) --------------- ---------------- 1999 1998 1999 1998 ---- ---- ---- ---- Net revenues $3,518,806 $3,437,546 $6,320,936 $6,221,450 Costs and expenses 1,897,870 1,901,386 3,418,182 3,156,435 ---------- --------- --------- ---------- Gross profit 1,620,936 1,536,160 2,902,754 3,065,015 Selling 458,528 487,391 876,414 1,007,562 General and administrative 1,004,232 993,763 1,912,003 1,941,693 ---------- --------- --------- --------- Total operating expenses 1,462,760 1,481,154 2,788,417 2,949,255 Other (income)/expenses Interest income (169,473) (354,022) (340,422) (498,570) Interest expense 92,870 104,086 183,498 196,927 Other (11,751) (16,701) (28,867) (104,261) --------- --------- ---------- --------- Income before provision for income taxes 246,530 321,643 300,128 521,664 Provision for income taxes 20,000 80,411 30,720 130,416 ---------- --------- --------- --------- Net income $ 226,530 $241,232 $ 269,408 $391,248 ========== ========= ========= ========= Basic earnings per share: Basic Net income per share $ .03 $ .04 $ .04 $ .07 ======= ======= ======= ======== Weighted average shares outstanding: Basic 8,000,600 6,031,000 7,212,400 5,890,000 See Accompanying Notes FORM 10-Q CANTERBURY INFORMATION TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX-MONTHS ENDED MAY 31, 1999 AND MAY 31, 1998 May 31,1999 May 31,1998 ----------- ----------- Operating activities: Net income $ 269,408 $391,248 Adjustments to reconcile net income to net cash provided by/(used in) operating activities: Depreciation and amortization 521,888 498,670 Provision for losses on accounts receivable 5,610 9,000 Deferred income taxes (151,432) 66,945 Other noncash items, net (151,558) 62,307 Changes in operating assets Accounts receivable (373,282) (254,107) Prepaid expenses and other assets (108,670) (296,595) Income taxes (63,217) - Accounts payable (128,435) (68,094) Accrued expenses 16,021 (553,689) Unearned tuition income 79,277 137,121 ---------- --------- Net cash used in operating activities (84,390) (7,194) Investing activities: Capital expenditures, net (104,942) (207,609) --------- --------- Net cash used in investing activities (104,942) (207,609) Financing activities: Proceeds from issuance of common stock, net 1,086,399 - Proceeds from long term debt - 143,982 Principal payments on long term debt (761,688) (295,030) Proceeds from payments on notes receivable 164,826 189,775 ---------- --------- Net cash provided by financing activities 489,537 38,727 ----------- ---------- Net increase/(decrease) in cash 300,205 (176,076) Cash, beginning of period 287,274 295,936 --------- -------- Cash, end of period $ 587,479 $ 119,860 ========== ========== See Accompanying Notes CANTERBURY INFORMATION TECHNOLOGY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. Operations and Summary of Significant Accounting Policies Description of Business Canterbury Information Technology, Inc. ("the Company") provides information technology services through two wholly owned subsidiaries. These services include computer training and software development. The Company also offers management training through a separate subsidiary. Principles of Consolidation The consolidated financial statements include the accounts of the Company and all of its subsidiaries. All material intercompany transactions have been eliminated. Stock Based Compensation The Company has adopted SFAS No. 123- Accounting for Stock Based Compensation. As provided by SFAS No. 123, the Company accounts for stock options under Accounting Principles Board (APB) Opinion No. 25-Accounting for Stock Issued to Employees. The Company discloses the pro forma net income and earnings per share effect as if the Company had used the fair value method prescribed under SFAS No.123 (see Note 11). Use of Estimates The preparation of 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. The ultimate outcome and actual results could differ from the estimates and assumptions used. Revenue Recognition The Company records revenue at the time services are performed or product is shipped. Statement of Cash Flows For purposes of the Statement of Cash Flows, cash refers solely to demand deposits with banks and cash on hand. Depreciation and Amortization The Company depreciates and amortizes its property and equipment for financial statement purposes using the straight-line method over the estimated useful lives of the property and equipment (useful lives of leases or lives of leasehold improvements and leased property under capital leases, whichever is shorter). For income tax purposes, the Company uses accelerated methods of depreciation. The following estimated useful lives are used: Building and improvements 7 years Equipment 5 years Furniture and fixture 5 to 7 years Intangible Assets Goodwill is being amortized over twenty-five years using the straight-line method. The Company periodically evaluates whether the remaining estimated useful life of intangibles may warrant revision or the remaining balance of intangibles may require adjustment generally based upon expectations of nondiscounted cash flows and operating income. Deferred Income Taxes The Company utilizes the liability method to account for income taxes. This method gives consideration to the future tax consequences associated with the differences between financial accounting and tax bases of assets and liabilities. Earnings Per Share Basic earnings per share is computed using the weighted average common shares outstanding during the year. Diluted earnings per share considers the dilutive effect, if any, of common stock equivalents (options). Recent Accounting Pronouncements In fiscal 1997, the Financial Accounting Standards Board ("FASB") issued SFAS No. 130 "Reporting Comprehensive Income," which requires that an enterprise report, by major component and as a single total, the change in its net assets during the period from nonowner sources, the adoption of this statement in fiscal 1999 is not expected to have an impact on the Company's net income or Stockholders' Equity. The FASB also issued SFAS No. 131 "Disclosures about Segments of an Enterprise and Related Information," which establishes annual and interim reporting standards for an enterprise's operating segments and related disclosures about its products, services, geographic areas, and major customers. Management has not completed its review of SFAS No. 131, but does not anticipate that the adoption of this statement will have a significant effect on the Company's disclosures upon adoption in fiscal 1999. Reverse Stock Split On April 2, 1998, the Company's Board of Director approved a one-for-three reverse stock split of the Company's common shares. All share and per share information contained in these financial statements gives retroactive effect to the 1-for-3 reverse stock split effected April 14, 1998. Concentration of Risk As previously discussed, the Company is in the business of providing information technology services. These services are provided to a large number of customers in various industries in the United States. The Company's trade accounts receivable are exposed to credit risk, but the risk is limited due to the diversity of the customer base and the customers wide geographic dispersion. The Company performs ongoing credit evaluations of its customer's financial condition. The Company maintains reserves for potential bad debt losses and such bad debt losses have been within the Company's expectations. The Company maintains cash balances at several large creditworthy banks located in the United States. Accounts at each institution are insured by the Federal Deposit Insurance Corporation up to $100,000. The Company does not believe that it has significant credit risk related to its cash balance. 2. Property and Equipment Property and equipment consists of the following: May 31, November 30, 1999 1998 --------- ----------- Land, buildings and improvements $ 725,910 $ 725,910 Equipment 3,191,264 3,185,632 Furniture and fixtures 1,386,377 1,287,067 Leased property under capital leases and leasehold improvements 1,118,495 1,118,495 --------- ---------- 6,422,046 6,317,104 Less: accumulated depreciation (4,296,311) (3,993,108) ---------- ---------- Net property and equipment $ 2,125,735 $2,323,996 =========== =========== Depreciation expense for 1999 and 1998 was $302,000 and $279,000, respectively. 3. Long-Term Debt May 31, November 30, 1999 1998 -------- ---------- Long-term obligations consist of: Term loan $ 591,000 $1,221,000 Revolving credit line 2,774,620 2,774,620 Capital lease obligations 251,332 383,020 ---------- ----------- 3,616,952 4,378,640 Less: Current maturities (976,877) (1,738,565) ---------- ----------- $ 2,640,075 $2,640,075 =========== ========== Outstanding amounts owed under the Company's term loan and credit line facilities with its primary lender were due and payable at December 31, 1998. The Company and its lender have agreed to an extension of these agreements through December 1, 1999, subject to reasonable legal fees. The Company will continue to use its best efforts to replace its primary lender prior to that time. Subsequent to May 31, 1999 the Company has set aside $205,875 to further reduce and prepay its bank term debt to $385,125. Based upon the terms of the restructuring agreement executed on March 11, 1999 with its lender apprixmately $220,000 of additional monies, received as proceeds from an April, 1999 Private Placement, have also been set aside to reduce term debt. Once these payments are applied, the total term debt outstanding as of July 15, 1999 would be $165,125. The balance of the outstanding term debt and revolver are due on December 1, 1999. The term debt and the revolving credit line accrue interest at the prime rate plus 2.5% per annum. The long term debt is secured by substantially all of the assets of the Company and requires continued compliance with previously established convenants which include: limits on capital expenditures, certain pre- payments from excess cash flow as defined and the maintenance of certain financial ratios and amounts. The Company is restricted by its primary lender from paying cash dividends on its common stock. Aggregate maturities on long-term debt, exclusive of obligations under capital leases, are approximately $895,000 in 1999 and $2,470,000 in 2000. The carrying value of the long-term debt approximates its fair value. 4. Capital Leases Capital lease obligations are for certain equipment leases which expire through fiscal year 2004. Future required payments under capitalized leases together with the present value, calculated at the respective leases' implicit interest rate of approximately 10.5% to 14.3% at their inception, as of May 1, 1995 and May 1, 1997 are as follows: Year ending November 30, 1999 $128,989 Year ending November 30, 2000 72,619 Year ending November 30, 2001 43,055 Year ending November 30, 2002 and thereafter 37,969 -------- Total minimum lease payments 282,632 Less amount representing interest (31,300) -------- Present value of long-term obligations under capital leases $ 251,332 ========= 5. Securities Available for Sale At May 31, 1999 and November 30, 1998, the Company held investment securities in a public company. Certain officers and directors of the Company have an ownership interest in the public company. Management has estimated the fair value of the investment at May 31, 1999 at $117,500 based on discounted market values due to the stock being thinly traded and volatile and has classified the investment as available for sale. The investment is included in prepaid expenses and other assets in the accompanying balance sheet. The investment has a gross carrying value of $461,007 and an unrealized loss of $343,507 at May 31, 1999. The Company did not sell any available for sale securities during 1998. 6. Stockholder's Equity On March 10, 1999 the Company completed a Private Placement Offering for the issuance of 1,000,000 shares of common stock. The Company has received proceeds of $600,000. The Company used $500,000 in proceeds to repay amounts under the term loan as discussed in Note 3. The remaining amounts are intended to be used for further paydown of debt, general corporate purposes and for working capital. In connection with the Private Placement Offering described above, an independent third party received 200,000 shares of common stock as a finders fee. On April 20, 1999 the Company completed another Private Placement Offering for the issuance of 850,000 shares of common stock. The Company has received proceeds of $603,500. In conjunction with this second Private Placement, an independent, third party received 150,000 shares of common stock as a finders fee. Item 2. Management's Discussion of Financial Condition and Results of Operations Liquidity and Capital Resources Working capital at May 31, 1999 was $1,660,000. This was an increase of $1,590,000 over November 30, 1998, due primarily to the two Private Placement Offerings completed during the second quarter of the year. Oustanding amounts owed under the Company's term loan and credit line facilities with its primary lender were due and payable at December 31, 1998. The Company and its lender have agreed to an extension of these agreements through December 1, 1999, subject to reasonable legal fees. The Company will continue to use its best efforts to replace its primary lender prior to that time. Subsequent to May 31, 1999, the Company has set aside $205,875 to further reduce and prepay its bank term debt to $385,125. Based upon the terms of the restructuring agreement executed on March 11, 1999 with is lender approximately $220,000 of additional monies, received as proceeds from an April, 1999 Private Placement have also been set aside to reduce term debt. Once these payments are applied, the total term debt outstanding as of July 15, 1999 would be $165,125. The balance of the outstanding term debt and revolver are due on December 1, 1999. The term debt and the revolving credit accrue interest at the prime rate plus 2.5% per annum. During March and April 1999 the Company completed two Private Placement Offerings with non-affiliates for the issuance of 1,850,000 shares of common stock and the issuance of 350,000 shares as a finders fee, all with registration rights. The Company has received total gross proceeds of $1,203,500. The Company used $500,000 in proceeds to repay amounts under the term loan. The remaining amounts are intended to be used for further paydown of debt, general corporate purposes and for working capital. Management believes that positive cash flow contributions from the Company's operating subsidiaries will be sufficient to cover cash flow requirements for fiscal 1999. There was no material commitment for capital expenditures as of May 31, 1999. Inflation was not a significant factor in the Company's financial statements. Cash flow from continuing operations for the six months ended May 31, 1999 was ($254,000). As is the case historically, the Company believes that this trend will reverse itself before year end. General Description Of The Year 2000 Issue And The Nature And Effects Of The Year 2000 On Information Technology (IT) And Non-IT Systems The Year 2000 Issue is the result of computer programs being written using two digits rather than four to define the applicable year. Any of the Company's computer programs that have date-sensitive software or embedded chips may recognize a date using "00" as the year 1900 rather than the year 2000. This could result in a system failure or miscalculations causing disruptions of operations, including, among other things, a temporary inability to process transactions, send invoices, or engage in similar normal business practices. The Company began addressing the Year 2000 Issue in 1997 on a decentralized basis at each of its subsidiaries. In 1998, the Company began monitoring progress on a corporate level. Based on assessments made since 1997, the Company determined that modifications to or in limited cases replacement of computer software and hardware was necessary to enable those systems to operate properly after December 31, 1999. The Company presently believes that with modifications to and replacement of existing software and hardware, the Year 2000 Issue can be mitigated. However, if such modifications and replacements are not made, or are not completed timely, the Year 2000 Issue may have a material impact on the operations of the Company. The Company's plan to resolve the Year 2000 Issue involves the following four phases: assessment, remediation, testing, and implementation. To date, the Company has completed its assessment of all systems that could be significantly affected by the Year 2000. The assessment indicated that most of the Company's significant information technology systems could be affected, particularly the Company's registration/scheduling and accounting systems. The assessment also indicated that software and hardware (embedded chips) used in these applications were also at risk. The software developed and distributed by ATM/Canterbury is Y2K compliant. The Company's other training services are not at risk. Status Of Progress In Becoming Year 2000 Compliant, Including Timetable For Completion Of Each Remaining Phase The following estimates of completion percentages and dates are based on the Company's best estimates. However, there can be no guarantee that these dates can be achieved and actual results may differ. For its information technology exposures, to date the Company is approximately 95% complete on the remediation phase and completed its software reprogramming and replacement by June 30, 1999. Once software is reprogrammed or replaced for a system, the Company begins testing and implementation. These phases run concurrently for different systems. To date, the Company has completed 100% of its testing and has implemented 95% of its remediated systems. Completion of the testing phase for all significant operating systems was completed by April 30, 1999, with all remediated systems fully tested and implemented by September 1, 1999. Nature And Level Of Importance Of Third Parties And Their Exposure To The Year 2000 The Company has surveyed its significant vendors as to their Year 2000 compliance. Based on the nature of their responses, the Company does not need to develop contingency plans. Costs The Company has utilized and will continue to utilize both internal and external resources to reprogram, or replace, test, and implement the software and operating equipment for Year 2000 modifications. Many of the program fixes were completed in conjunction with other projects and had little incremental cost. The Company estimates that incremental costs relating to Year 2000 projects to date approximate $25,000. These costs have been expensed as incurred. The Company expects to spend less than $50,000 on Year 2000 projects in fiscal 1999. Year 2000 costs are difficult to estimate accurately and the projected cost could change due to unanticipated technical difficulties, project delays, and third party non-compliance, among other things. Risks Management of the Company believes that it has an effective program in place to resolve the Year 2000 Issue in a timely manner. As noted above, the Company has not yet completed all necessary phases of its Year 2000 plan. Because of the range of possible issues and the large number of variables involved, it is impossible to quantify the potential cost of problems should the Company or its trading partners not properly complete their Year 2000 plans and become Year 2000 compliant. Such costs and any failure of compliance efforts could have a material adverse effect on the Company. The Company believes that the most likely risks of serious Year 2000 business disruption are external in nature, including continuity of utility, telecommunication and transportation services, and the potential failure of the Company's customers due to their own non-compliance or the non- compliance of their business partners. In the event the Company does not properly complete its Year 2000 efforts or is affected by the disruption of outside services, the Company could be unable to take orders, distribute goods, invoice customers or collect payments. In addition, disruptions in the economy generally resulting from Year 2000 could have a material adverse effect on the Company. The Company could be subject to litigation for computer systems failure. The amount of potential liability and lost revenue cannot be reasonably estimated at this time. Contingency Plans The Company is currently in process of developing contingency plans to address the above Year 2000 risks as necessary. The Company plans to evaluate the status of completion of its Year 2000 efforts by September 1, 1999 and to determine what contingency plans are necessary at that time. In the normal course of business, the Company has contingency plans for disruption of business events and intends to augment those plans with specific Year 2000 considerations. Results of Operations Revenues Revenues for the three months ended May 31, 1999 increased by $82,000 (2%) over the comparable three-month period in fiscal 1998, due to increased sales of technical training products. For the six months ended May 31, 1999, revenues increased by $100,000 (1%) over the same six-month period in 1998. Costs and Expenses Costs and expenses for the six months ended May 31, 1999 increased by $262,000 (8%) due primarily to an increase in labor. Costs at CALC/Canterbury attributed to the higher cost of delivering technical training products, plus research and development costs associated with the creation of alternative delivery methods for the current instructor-led training model. Selling expenses for the six months ended May 31, 1999 decreased by $131,000 (13%) over the same quarter in fiscal 1998. The decrease was due primarily to a reduction in marketing expenses at CALC/Canterbury attributable to more cost effective and efficient production and distribution of their monthly training schedule. PART II - OTHER INFORMATION Item 1 Legal Proceedings - No additional legal proceedings were either initiated or brought against the Company during the first fiscal quarter. Item 2 Changes in Securities - None Item 3 Defaults Upon Senior Securities - None Item 4 Submission of Matters to a Vote of Security Holders - None Item 5 Other Information - Management Contracts - Extension of employment contracts of Stanton M. Pikus and Kevin J. McAndrew from 2001 to 2003 in order to provide continuity of senior management as well as consideration for their waiver of contractual bonus opportunity and salary increases in Fiscal 1998. Item 6 Exhibits and Reports on Form 8-K (a) Exhibits: None (b) Reports on Form 8-K: None SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934,the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. CANTERBURY INFORMATION TECHNOLOGY, INC. -------------------------------------- (Registrant) By/s/ Stanton M. Pikus ------------------------------------ Stanton M. Pikus President (Chief Executive Officer and duly authorized signer) By/s/ Kevin J. McAndrew ------------------------------------ Kevin J. McAndrew, C.P.A. Chief Operating Officer, Executive Vice President (Chief Financial Officer and duly authorized signer) Dated: July 15, 1999 EX-27 2 FINANCIAL DATA SCHEDULE
5 0000794927 CANTERBURY INFORMATION TECHNOLOGY, INC. 1 NOV-30-1999 MAR-01-1998 MAY-31-1999 6-MOS 587,479 0 1,509,216 0 0 4,147,058 6,422,046 (4,296,311) 25,895,190 2,486,711 0 0 0 8,698 17,795,337 25,895,190 6,320,936 6,320,936 3,418,182 2,788,417 (369,289) 0 183,498 300,128 30,720 30,720 0 0 0 269,408 .04 .04
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