<PAGE>   1
                     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 June 30, 2000

[ ] Transition Report under Section 13 or 15(d) of the Securities Exchange Act
of 1934 (No Fee Required)

For the transition period from                 to                .
                               ---------------    ---------------

                                  Commission File No. 2-86551C

                               Peoples Educational Holdings, Inc.
                               -----------------------------------
                         (Name of small business issuer in its charter)

           Minnesota                                          41-1368898
  -------------------------------                      -----------------
  (State or other jurisdiction of          (I.R.S. Employer Identification No.)
  incorporation or organization)

                    299 Market Street, Saddle Brook, NJ 07663
                    -----------------------------------------
               (Address of principal executive offices) (Zip Code)

                                 (201) 712-0090
                                 --------------
                            Issuer's telephone number

Former name:  Concourse Corporation

         Indicate by check mark whether the registrant (1) filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 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 [ ]

         Indicate the number of shares outstanding of each of the Issuer's
classes of common stock, as of the latest practical date: 3,188,849 shares of
Common Stock (par value $0.02 per share) outstanding on July 25, 2000.





<PAGE>   2





                                     PART 1

                             FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

PEOPLES EDUCATIONAL HOLDINGS, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS (UNAUDITED)

<TABLE>
<CAPTION>

                                                             June 30, 2000    December 31, 1999
                                                             -------------    -----------------
<S>                                                          <C>             <C>
ASSETS

Current Assets


Cash and Cash Equivalents                                       $  157,252           $  143,852
Accounts Receivable, Net of Allowance for Doubtful Accounts of
$80,000 and Allowance for Returns                                1,608,782            1,424,411

Inventory                                                          711,687              566,357

Deferred Income Taxes                                               99,000               99,000

Advance Royalties                                                  364,743               71,840

Prepaid Catalog Expenses and Other Current Assets                  201,522               56,123
                                                                ----------           ----------

     Total Current Assets                                        3,142,986            2,361,583
                                                                ----------           ----------

Equipment - At Cost, Less Accumulated Depreciation

of $150,969 in 2000 and $121,438 in 1999                           290,106              212,316
                                                                 ---------           ----------

Other Assets


Deferred Prepublication Costs, net                                 932,343              853,340

Intangible Assets, net                                              18,681               29,710

Advance Royalties                                                   33,695               35,100

Deferred Income Taxes                                                9,000                9,000

Other                                                               16,869               25,289
                                                                ----------           ----------
     Total Other Assets                                          1,010,588              952,439
                                                                 ---------           ----------
Total Assets                                                    $4,443,680           $3,526,338
                                                                ==========           ==========
</TABLE>




<PAGE>   3



PEOPLES EDUCATIONAL HOLDINGS, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS (UNAUDITED)


<TABLE>
<CAPTION>

                                                                       June 30, 2000          December 31, 1999
                                                                      --------------          -----------------
<S>                                                                  <C>                     <C>
LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities


Accounts Payable                                                         $ 1,401,295                $   886,746
Accrued Expenses                                                             261,913                    103,190
Notes Payable under Line of Credit                                                 -                    450,000
Current Maturities of Long Term Debt                                               -                     30,000
Current Maturities of Capital Leases                                           3,212                          -
Corporate Taxes Payable                                                            -                     94,516
                                                                         -----------                -----------
     Total Current Liabilities                                             1,666,420                  1,564,452


Line of Credit                                                             1,144,713
Long Term Debt, less current maturities                                            -                     83,978
Capital Leases, less current maturities                                        8,853                          -

Accrued and Unpaid Dividends on previously outstanding 1990 and
1993 Redeemable Convertible Stock                                                  -                    810,850
                                                                         -----------                -----------

Total Liabilities                                                          2,819,986                  2,459,280
                                                                         -----------                -----------

Stockholders' Equity

Common stock, $0.02 par value; authorized 15,000,000 shares
issued and outstanding 3,188,849 shares in 2000 and 2,935,216
in 1999                                                                       63,777                     58,704


Additional Paid In Capital                                                 2,753,647                  1,994,071
Accumulated Deficit                                                       (1,054,330)                  (850,067)

Less: Note Receivable from issuance of 1998 Stock                           (139,400)                  (135,650)
                                                                         -----------                -----------

Total Stockholders' Equity                                                 1,623,694                  1,067,058
                                                                         -----------                -----------

Total Liabilities and Stockholders' Equity                               $ 4,443,680                $ 3,526,338
                                                                         ===========                ===========
</TABLE>



<PAGE>   4



PEOPLES EDUCATIONAL HOLDINGS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

<TABLE>
<CAPTION>


                                                                Three Months Ended                    Six Months Ended
                                                           June 30, 2000    June 30, 1999      June 30, 2000      June 30, 1999
                                                          ---------------  --------------      -------------      -------------

<S>                                                      <C>              <C>                  <C>                <C>
Sales and Commissions                                      $ 2,232,119        $ 1,483,261        $ 3,811,738        $ 2,580,507
Cost of Sales                                                1,220,514            969,791          2,051,593          1,428,539
                                                           -----------        -----------        -----------        -----------
  GROSS PROFIT                                               1,011,605            513,470          1,760,145          1,151,968

Selling, General and Administrative Expenses
                                                               991,218            542,329          2,037,914          1,228,128
                                                           -----------        -----------        -----------        -----------
  INCOME (LOSS) FROM OPERATIONS                                 20,387            (28,859)          (277,769)           (76,160)

Nonoperating Income (Expense)
 Interest Income                                                 6,218             13,753
 Interest Expense                                              (22,061)            (7,908)           (36,494)           (17,539)
 Gain on Sale of Assets                                            500                500
                                                           -----------        -----------        -----------        -----------
  LOSS BEFORE INCOME TAXES                                      (1,674)           (30,049)          (314,263)           (79,446)

Federal and State Income Tax Benefit                            (1,000)           (12,273)          (110,000)           (32,452)
                                                           -----------        -----------        -----------        -----------
  NET LOSS                                                        (674)           (17,776)          (204,263)           (46,994)


Mandatory Redeemable Convertible Stock Dividends                  --              (23,960)              --              (47,920)
                                                           -----------        -----------        -----------        -----------
  NET LOSS APPLICABLE TO COMMON SHAREHOLDERS               $      (674)       $   (41,736)       $  (204,263)       $   (94,914)
                                                           ===========        ===========        ===========        ===========

Net Loss per Common Share
 Basic and Diluted                                         $     (0.00)       $     (0.05)       $     (0.06)       $     (0.12)
                                                           ===========        ===========        ===========        ===========

Weighted-average Number of Common Shares Outstanding
 Basic and Diluted                                           3,188,849            805,760          3,146,577            805,760
                                                           ===========        ===========        ===========        ===========
</TABLE>




<PAGE>   5



PEOPLES EDUCATIONAL HOLDINGS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED)

<TABLE>
<CAPTION>
                                               Additional
                                 Common          Paid-In        Accumulated        Notes
                                  Stock          Capital          Deficit        Receivable         Total
                              --------------  --------------  ---------------- --------------- ----------------

<S>                          <C>              <C>             <C>              <C>            <C>
Balance, December 31, 1999         $ 58,704      $ 1,994,071        (850,067)     $ (135,650)      $ 1,067,058

Conversion of Accrued
Dividends on Redeemable
Convertible Stock into Common
Stock                                 5,073          755,826                                           760,899

Interest on Notes Receivable
from issuance of 1998
Convertible Stock                                      3,750                          (3,750)                -

Net Loss                                                            (204,263)                         (204,263)
                              --------------  --------------  ---------------- --------------- ----------------

Balance, June 30, 2000             $ 63,777      $ 2,753,647    $ (1,054,330)     $ (139,400)      $ 1,623,694
                              ==============  ==============  ================ =============== ================
</TABLE>



<PAGE>   6



PEOPLES EDUCATIONAL HOLDINGS, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                           Six Months Ended
                                                                                   ---------------------------------

                                                                                    June 30, 2000     June 30, 1999
                                                                                   ---------------   ---------------
<S>                                                                               <C>                <C>
Cash Flows From Operating Activities

Net Loss                                                                            $  (204,263)       $   (46,994)
Adjustments to Reconcile Net Loss to Net Cash Provided by (Used in) Operating
Activities
            Depreciation                                                                 29,531             17,695
            Amortization of Prepublication Costs and Intangible
            Assets                                                                      211,087            152,429
Changes in Assets and Liabilities
            Accounts Receivable                                                        (184,371)          (398,063)
            Inventory                                                                  (145,330)            (8,853)
            Prepaid Catalog and Other current assets                                   (145,399)            57,499
            Advance Royalties                                                          (291,498)            24,067
            Dferred Income Taxes                                                              -            (32,707)
            Other                                                                         8,420             (5,436)
            Accounts Payable and Accrued Expenses                                       673,272            299,945
            Income Taxes Payable
                                                                                        (94,516)            (4,245)
                                                                                    -----------        -----------
                       Net Cash Provided by (Used in) Operating
                       Activities                                                      (143,067)            55,337
                                                                                    -----------        -----------

Cash Flows From Investing Activities
            Purchases of Equipment                                                     (107,318)            (3,672)
            Expenditures for Prepublication Costs                                      (279,061)          (313,552)
                                                                                    -----------        -----------
                       Net Cash Used in Investing
                       Activities                                                      (386,379)          (317,224)
                                                                                    -----------        -----------

Cash Flows From Financing Activities
            Borrowings under Long Term Credit Agreement                               1,144,713                  -
            Repayment of Short Term Line of Credit                                     (450,000)          (133,500)
            Repayment of Long Term Debt                                                (113,978)
            Borrowings under Capital Leases                                              12,065
            Deferred Financing Costs                                                          -            (30,000)
            Payment of Accrued Dividends on Redeemable Convertible Stock                (49,954)                 -
                                                                                    -----------        -----------
                       Net Cash Provided by (Used in) Financing
                       Activities                                                       542,846           (163,500)
                                                                                    -----------        -----------

                       Net Increase (Decrease) in Cash and Cash Equivalents              13,400           (425,387)

Cash and Cash Equivalents
            Beginning of Period                                                         143,852            565,678
                                                                                    -----------        -----------
            End of Period                                                           $   157,252        $   140,291
                                                                                    ===========        ===========


Supplemental Cash Flow Information
            Cash Payments for:
                       Interest                                                     $    36,494        $    17,062
                       Income Taxes                                                      97,000              4,900
                                                                                    ===========        ===========

Noncash Financing Activities
            Increase in Mandatory Redeemable Preferred Stock, and increase
            in Accumulated Deficit from Accrued Dividends                           $         -             47,920


            Conversion of Accrued Dividends into Common Stock
                                                                                        760,899                  -
                                                                                    ===========        ===========
</TABLE>





<PAGE>   7

Peoples Educational Holdings, Inc. and Subsidiary
Notes to Consolidated Financial Statements (Unaudited)

NOTE 1 - Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared
by the Company without audit and in accordance with the instructions to Form
10-QSB and therefore do not include all information and disclosures necessary
for a fair presentation of financial position, results of operations, and cash
flows in conformity with generally accepted accounting principles. These
unaudited financial statements contain, in the opinion of management, all
adjustments (consisting of normal accruals and other recurring adjustments)
necessary for a fair presentation of the consolidated financial position,
results of operations, and cash flows for the periods presented. The operating
results for the period ended June 30, 2000, are not necessarily indicative of
the operating results to be expected for the full fiscal year.


NOTE 2 - Basic & Diluted Per Share

Basic per share amounts are computed, generally, by dividing net income or loss
by the weighted average number of common shares outstanding. Diluted per share
amounts assume the conversion, exercise or issuance of all potential common
stock instruments unless their effect is anti-dilutive thereby reducing the loss
or increasing the income per common share.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

FORWARD LOOKING STATEMENTS

This Form 10-QSB contains forward-looking statements regarding Peoples
Educational Holdings, Inc., (the "Company"), its wholly-owned subsidiary, The
Peoples Publishing Group, Inc. ("PPG") and their markets as defined in section
21E of the Securities Exchange Act of 1934. These forward-looking statements
involve a number of risks and uncertainties, including (1) demand from major
customers, (2) effects of competition, (3) changes in product or customer mix or
revenues and in the level of operating expenses, (4) rapidly changing
technologies and the Company's ability to respond thereto, (5) the impact of
competitive products and pricing, (6) local and state levels of educational
spending, (7) the Company's and PPG's ability to retain qualified personnel, (8)
PPG's ability to retain its distribution agreements in the Advanced Placement
market, (9) the sufficiency of PPG's copyright protection, (10) PPG's ability to
expand its product lines into additional states and (11) PPG's ability to
continue to rely on the services of American Book Center, and other factors
disclosed below and throughout this report. The actual results that the Company
or PPG achieves may differ materially from any forward-looking statements due to
such risks and uncertainties. The Company undertakes no obligation to revise any
forward-looking statements in order to reflect events or circumstances that may
arise after the date of this report. Readers are urged to carefully review and
consider the various disclosures made by the Company in this report, including
the discussion set forth below and in the Company's other reports filed with the
Securities and Exchange Commission from time to time that attempt to advise
interested parties of the risks and factors that may affect the Company's
business and results of operations.


SEASONALITY

The supplementary school publishing business is seasonal, cycling around the
school year that runs September through May. Typically, the major marketing
campaigns, including mailing of new catalogs and focused sales efforts, begin in
September when schools reopen. This is the period when sample books are provided
free for review to teachers for their purchase consideration. General marketing
efforts including additional sales and marketing campaigns, catalog mailings,
and complementary copies, continue throughout the school year. Teachers and
school districts generally review and consider books throughout the school year,
make their decisions in the winter and spring, and place their purchase orders
with the district office or other administrative units at that time. During
spring and summer, the district offices process purchase orders and send them to
publishers.

For PPG, approximately 48-55% of sales via purchase orders have historically
been received from July through September. The remainder of the year is slower
for sales of most product lines. An exception is the Test Preparation product
line, with




<PAGE>   8




purchases occurring near the time the test is given as well as during
the summer months for summer programs that add extra test preparation for
students who are behind in their performance, and for the upcoming school year.

This natural seasonality of the supplementary educational materials market means
that PPG's fiscal year (calendar year) does not coincide with the school
purchase year. However new product development and launch, as well as expenses,
must be planned around the school year. A product launched in the fall of 2000,
for example, would not be expected to generate significant sales until summer of
2001. This seasonal delay in purchase must be accounted for when considering
growth and forecasts in the supplementary educational materials market. As noted
above, PPG receives and fulfills customer orders throughout the year, but its
largest revenue is produced in the July to September third-quarter. In general,
the Company's historical quarterly percentages of revenues to the full year
revenues fall within a predictable range, with net sales ranging from 10-14% in
the 1st quarter, 16-20% in the 2nd quarter, 48-55% in the 3rd quarter and 14-16%
in the 4th quarter.


RESULTS OF OPERATIONS

Second Quarter 2000 vs. Second Quarter 1999

Total revenue for the three months ended June 30, 2000 was $2,232,000 as
compared to $1,483,000 for the same period in 1999 representing a 50.5%
increase. All product lines, Instruction, Test Preparation and Advanced
Placement, had revenue increases as compared to the prior period.

Instruction revenue increased by $37,000 (7.4%) from the same period in the
prior year. The increase is the result of increased telemarketing efforts from
the prior year.

Test Preparation revenue for the three months ended June 30, 2000 increased by
$505,000 (594.1%) over the same period in 1999. The Test Preparation growth can
be attributed to increased market penetration and the release of new products
into a new state. In second quarter of 1999, the Company published Test
Preparation products for only one state. In 2000, the Company publishes products
for two states and is planning to expand into other states.

Advanced Placement revenue in the second quarter of 2000 was $1,102,000 as
compared to $896,000 for the same period in 1999, an increase of 23%. Included
in the 1999 amount was $9,000 of commission revenue. Effective May 1, 1999, PPG
signed a new three-year contract with one of its large volume Advanced Placement
publishers. Under the terms of the old contract, PPG limited its activity to
sales and marketing and received a sales commission from the publisher with no
corresponding cost of sales. Under the new agreement, PPG now invoices customers
for the full amount of the sale, is responsible for collections, and is billed
for the cost of the books as the publisher drop-ships to the customer. This new
arrangement has the effect of increasing Advanced Placement revenue and cost of
sales while yielding lower gross margins than Instruction and Test Preparation
revenue. As a result of this new agreement, PPG believes that it will be able to
grow Advanced Placement revenue and to increase the total amount of gross margin
associated with those sales.

As a result of the aforementioned publisher contract change from a commission to
a sales arrangement, Resale Revenue for the second quarter of 1999 on a proforma
basis, after converting Commission Revenue to Resale Revenue, would have been
$947,000. The $155,000 (16.4%) increase in revenues for the second quarter of
2000 was due to improved telemarketing and the allocation of increased marketing
resources, including additional catalog mailings and direct mail.

Gross Profit for the three months ended June 30, 2000 was $1,012,000 (45.3%) as
compared to $513,000 (34.6%) in the same period in 1999. The increase in dollars
and as a percent of sales is a result of the overall net increase in revenue as
discussed above and the significant increase in Test Preparation sales, which
have higher gross margin percentage than the other product lines.

Selling, General and Administrative expense for the three months ended June 30,
2000 was $991,000, an increase of $449,000 from the same period in 1999.
Fulfillment expense, the costs associated with warehousing and shipping of
inventory increased $117,000 from the prior year. This increase is primarily due
to the delivery expense associated with the increased level of sample books
distributed in the second quarter of 2000 as compared to the prior year. Selling
expense for the second quarter 2000 increased $207,000 from the prior year. The
change is primarily the result of increased commission expense related to
increased sales and additional new telemarketers. In addition, free sample
expense increased from the prior period due to increased marketing efforts and
the introduction of Test Preparation products into a new state.




<PAGE>   9



Administrative expense increased $126,000 from the prior year. This is a result
of higher rent expense related to the Company's move into a new facility in
October 1999 and increases in personnel and related benefits to support the
Company's revenue growth.

For the three months ended June 30, 2000, the Company had a loss before income
taxes of $2,000 as compared to a loss of $30,000 for the same period in 1999.
The decrease in the loss is due to higher sales and gross margins associated by
those sales, offset by increased operating expenses.

Six Months 2000 vs. Six Months 1999

Total revenue for the six months ended June 30, 2000 was $3,812,000 as compared
to $2,581,000 for the same period in 1999 representing a 47.7% increase. All
product lines, Instruction, Test Preparation and Advanced Placement had, revenue
increases as compared to the prior period.

Instruction revenue increased by $126,000 (13.5%) from the same period in the
prior year. This increase is the result of increased telemarketing from the
prior year.

Test Preparation revenue for the six months ended June 30, 2000 increased by
$585,000 (115.4%) over the same period in 1999. Test Preparation revenue growth
can be attributed to increased market penetration and the release of new
products into a new state and an increase in the number of commission
salespersons. In second quarter of 1999, the Company published Test Preparation
products for only one state. In 2000, the Company publishes products for two
states and is planning to expand into other states.

Advanced Placement revenue for the six months ended June 30, 2000 was $1,658,000
as compared to $1,138,000 for the same period in 1999, an increase of 45.7%.
Included in the 1999 amount was $32,000 of commission revenue. Effective May 1,
1999, PPG signed a new three-year contract with one of its large volume Advanced
Placement publishers. Under the terms of the old contract, PPG limited its
activity to sales and marketing and received a sales commission from the
publisher with no corresponding cost of sales. Under the new agreement, PPG now
invoices customers for the full amount of the sale, is responsible for
collections, and is billed for the cost of the books as the publisher drop-ships
to the customer. This new arrangement has the effect of increasing Advanced
Placement revenue and cost of sales while yielding lower gross margins than
Instruction and Test Preparation revenue. As a result of this new agreement, PPG
believes that it will be able to grow Advanced Placement revenue and to increase
the total amount of gross margin associated with those sales.

As a result of the aforementioned publisher contract change from a commission to
a sales arrangement, Resale Revenue for the six months ended June 30, 1999 on a
proforma basis, after converting Commission Revenue to Resale Revenue, would
have been $1,321,000. The $337,000 (25.5%) increase in revenues as compared to
the six months ended June 30, 2000 was due to improved telemarketing and the
allocation of increased marketing resources, including additional catalog
mailings and direct mail.

Gross Profit for the six months ended June 30, 2000 was $1,760,000 (46.2%) as
compared to $1,152,000 (44.6%) during the same period in 1999. The increase in
dollars and as a percent of sales is a result of the overall net increase in
revenue as discussed above and the significant increase in Test Preparation
sales, which have higher gross margin percentage than the other product lines.

Selling, General and Administrative expense for the six months ended June 30,
2000 was $2,038,000, an increase of $810,000 from the same period in 1999.
Fulfillment expense, the costs associated with warehousing and shipping of
inventory increased $137,000 from the prior year. This increase is primarily due
to the delivery expense associated with the increased level of sample books
distributed in the second quarter of 2000 as compared to the prior year. Selling
expense increased $423,000 from the prior year. The change is primarily the
result of increased commission expense related to increased sales and additional
telemarketers. In addition, expenditures for advertising, catalog and free
samples increased from the prior year. Free sample expense increased from the
prior period due to increased marketing efforts and the introduction of Test
Preparation products into a new state. Administrative expense increased $269,000
from the prior year. This is a result of increases in personnel and related
benefits to support the Company's revenue growth and higher rent expense related
to the Company's move into a new facility in October 1999.

For the six months ended June 30, 2000, the Company had a loss before income
taxes of $314,000 as compared to $79,000



<PAGE>   10



loss for the same period in 1999. The increase in the loss is due to the
increased General, Selling and Administrative expenses, as discussed above.


LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 2000, the Company had cash and working capital of $157,000 and
$1,477,000, respectively, as compared to cash and working capital of $144,000
and $797,000, respectively, as of December 31, 1999. Cash is comparable between
periods. Working capital increased as a result of the Company's conversion of
short term debt to long term borrowings under a new two year revolving credit
agreement, and increases in Accounts Receivable, Inventory and Advance
Royalties, offset by increases in Accounts Payable and Accrued Expenses for the
period ended June 30, 2000.

Inventory totaled $712,000 and $566,000 at June 30, 2000, and December 31, 1999,
respectively. The increase is due to higher inventory levels needed to meet the
expected third quarter sales and additional Test Preparation inventory for the
new state that the Company entered.

Accounts Receivable totaled $1,609,000 and $1,424,000 at June 30, 2000 and
December 31, 1999, respectively. The increase in Accounts Receivable is due to
normal seasonality of the business.

The Company's core business is based substantially on the development of new
proprietary educational materials with associated costs capitalized on the
Company's balance sheet as Pre-publication costs. These costs are amortized over
a three-year period. Pre-publication amortization expense for the six months
ended June 30, 2000 increased 38.8%, to $211,000 from $152,000 for the same
period in 1999. Cash used in Pre-publication capital expenditures and Advance
Royalties totaled $571,000 and $289,000 for the six months ended June 30, 2000
and 1999 respectively. The $282,000 increase is due to the Company's investment
in the development of new books. During 2000, the Company has been contracting
with authors to develop and produce books on a royalty basis, rather than as
outside contractors who receive a fixed amount for their services.

The Company finalized a financing arrangement with a new bank in April 2000. The
new arrangement provides for up to $2,500,000 under a two year revolving credit
agreement with availability based on certain percentages of inventory and
receivables. Of this amount, $1,000,000 is available for acquisitions. The new
agreement also provides for up to $500,000 under a one year revolving credit
line to support prepublication expenditures. The arrangement also requires the
Company to maintain certain financial covenants. At June 30, 2000 the Company
has $1,145,000 outstanding under the two year revolving credit agreement and had
no borrowings under the one year prepublication expenditure credit line.

The Company believes that its cash and line of credit, together with cash
generated from operations, will be sufficient to meet its normal cash needs in
2000.


<PAGE>   11



                                     PART 2

                                OTHER INFORMATION

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

On May 26, 2000, the Company held its Regular Meeting of Shareholders. At the
meeting, the following persons were elected to the Company's Board of Directors:
<TABLE>
<CAPTION>
                            Votes For   Voted Withheld
                            ---------   --------------
<S>                         <C>         <C>
John C. Bergstrom           3,066,897         60
Anton J. Christianson       3,066,897         60
James P. Dolan              3,066,897         60
Roy E. Mayers               3,066,897         60
Diane M. Miller             3,066,897         60
James J. Peoples            3,066,897         60
</TABLE>

The appointment of the Company's auditors McGladrey & Pullen LLP was ratified by
shareholders, with 3,066,907 votes for and 50 votes withheld.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

           Exhibit 27.                   Financial Data Schedule



<PAGE>   12





                                   SIGNATURES

          In accordance with the requirements of the Securities Exchange Act of
1934, the Registrant has caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

          Dated: August 2, 2000      PEOPLES EDUCATIONAL HOLDINGS, INC.


                                     By:    /s/ James J. Peoples
                                        ------------------------
                                     James J. Peoples, Chairman, President and
                                            Chief Executive Officer