**SECURITIES      AND EXCHANGE COMMISSION **

**WASHINGTON,      D.C. 20549 **

**Form      10-K/A**

**(Amendment      No. 1) **

| **x** | **ANNUAL                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934** |
|-------|---------------------------------------------------------------------------------------------------------------------------------------|

|  **¨** | **TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934** |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

**PORTRAIT      CORPORATION OF AMERICA, INC. **

**(Exact      name of registrant as specified in its charter) **

|                                                                                               |   |                                                      |
|----------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|
| **North                Carolina**                                                                  |   | **57-1208051**                                            |
| ***(State                or other jurisdiction of incorporation or                organization)*** |   | ***(I.R.S.                Employer Identification No.)*** |
|                                                                                               |   |
| **815                Matthews-Mint Hill Road, Matthews, NC**                                  |   | **28105**                                                 |
| ***(Address                of principal executive offices)***                                      |   | ***(Zip                Code)***                           |

**(704)      847-8011 **

***(Registrant’s      telephone number, including area code)***

**SECURITIES      REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: **

**NONE      **

**SECURITIES      REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: **

**NONE**

**DOCUMENTS      INCORPORATED BY REFERENCE: NONE **

----

**EXPLANATORY      NOTE **

|                                                                    |   | Page   |
|-------------------------------------------------------------------------|--------|--------|
| The                Items of our 2004 10-K which are amended herein are: |   |   |
|                                                                    |   |   |
| Part                II                                                  |   | 26     |
|                                                                    |   |   |
| Item                6. Selected Financial Data                          |   | 26     |
|                                                                    |   |   |

----

**ITEM      6.**
**SELECTED      FINANCIAL DATA**

|                                                                       |   | **For                the Fiscal Year** |    |
|----------------------------------------------------------------------------|--------|----------------------------------------|---------|
|                                                                       |   | **2004**                               |    | **2003****(13)****Restated** |   | **2002****(13)****Restated** |   | **2001****(1)(13)****Restated** |   | **2000****(13)****Restated** |   |
|                                                                       |   | **(in                thousands)**      |    |
| **Statement                of Operations Data:**                           |   |                                   |    |   |   |   |   |   |   |   |   |
| Sales                (2)                                                   |   | $                                      | 323,553 |   | $ | 324,814 |   | $ | 296,616 |   | $ | 258,403 |   | $ | 227,470 |   |
| Costs                of sales                                              |   |                                   | 258,396 |   |   | 245,028 |   |   | 219,551 |   |   | 192,362 |   |   | 171,875 |   |
| Gross                profit                                                |   |                                   | 65,157  |   |   | 79,786 |   |   | 77,065 |   |   | 66,041 |   |   | 55,595 |   |
| General                and administrative expenses (3)                     |   |                                   | 47,669  |   |   | 45,610 |   |   | 41,300 |   |   | 37,652 |   |   | 34,546 |   |
| Amortization                of intangibles                                 |   |                                   | ----    |   |   | ---- |   |   | 192 |   |   | 1,971 |   |   | 1,974 |   |
| Income                from operations                                      |   |                                   | 17,488  |   |   | 34,176 |   |   | 35,573 |   |   | 26,418 |   |   | 19,075 |   |
| Interest                expense, net                                       |   |                                   | 32,459  |   |   | 30,706 |   |   | 28,610 |   |   | 29,681 |   |   | 29,107 |   |
| Other                expense (4)                                           |   |                                   | ----    |   |   | ---- |   |   | 2,776 |   |   | 15,026 |   |   | ---- |   |
| Early                extinguishment of debt (5)                            |   |                                   | ----    |   |   | ---- |   |   | 4,569 |   |   | ---- |   |   | ---- |   |
| Income                tax provision (benefit) (6)                          |   |                                   | 14,769  |   |   | 2,148 |   |   | (14,817 | ) |   | 43 |   |   | (448 | ) |
| Income                (loss) before cumulative effect of accounting change |   |                                   | (29,740 | ) |   | 1,322 |   |   | 14,435 |   |   | (18,332 | ) |   | (9,584 | ) |
| Cumulative                effect of accounting change (7)                  |   |                                   | ----    |   |   | ---- |   |   | ---- |   |   | (1,728 | ) |   | (5,990 | ) |
| Net                income (loss)                                           |   | $                                      | (29,740 | ) | $ | 1,322 |   | $ | 14,435 |   | $ | (20,060 | ) | $ | (15,574 | ) |

----

|                                                                |   | **For                the Fiscal Year** |    |
|---------------------------------------------------------------------|--------|----------------------------------------|---------|
|                                                                |   | **2004**                               |    | **2003****(13)****Restated** |   | **2002****(13)****Restated** |   | **2001****(1)(13)****Restated** |   | **2000****(13)****Restated** |   |
|                                                                |   | **(in                thousands)**      |    |
| **Cash                Flow Data:**                                  |   |                                   |    |   |   |   |   |   |   |   |   |
| Purchases                of property and equipment                  |   | $                                      | 21,382  |   | $ | 21,080 |   | $ | 17,046 |   | $ | 12,924 |   | $ | 11,316 |   |
| Depreciation                and amortization                        |   |                                   | 12,818  |   |   | 11,408 |   |   | 10,168 |   |   | 9,114 |   |   | 9,477 |   |
| Net                cash provided by operating activities            |   |                                   | 24,248  |   |   | 17,994 |   |   | 30,901 |   |   | 12,522 |   |   | 5,702 |   |
| Net                cash used in investing activities                |   |                                   | (22,522 | ) |   | (21,066 | ) |   | (17,046 | ) |   | (12,924 | ) |   | (9,076 | ) |
| Net                cash provided by (used in) financing activities  |   |                                   | 8,713   |   |   | 6,031 |   |   | (14,598 | ) |   | (963 | ) |   | (298 | ) |
|                                                                |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Other                Financial Data:**                            |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio                of earnings to fixed charges (8)               |   |                                   | ---     |   |   | 1.1 |   |   | --- |   |   | --- |   |   | --- |   |
| Deficiency                of earnings to fixed charges (8)          |   | $                                      | 14,971  |   |   | --- |   | $ | 382 |   | $ | 18,289 |   | $ | 10,032 |   |
| Same                studio sales percentage increase (decrease) (9) |   |                                   | (7.0    | )% |   | 1.5 | % |   | 5.2 | % |   | 3.2 | % |   | 6.4 | % |

|                                                       |   | **At                End of Fiscal Year**  |     |
|------------------------------------------------------------|--------|------------------------------------------------|----------|
|                                             |   |  **2004**                            |     | **2003****(13)****Restated** |   | **2002****(13)****Restated** |   | **2001****(1)(13)****Restated** |   | **2000****(13)****Restated** |   |
| **Balance                Sheet Data: (in thousands)**      |   |                                           |     |   |   |   |   |   |   |   |   |
| Cash                and cash equivalents                   |   | $                                              | 15,178   |   | $ | 4,820 |   | $ | 2,515 |   | $ | 2,870 |   | $ | 4,822 |   |
| Working                capital (deficit) (10)              |   |                                           | (39,393  | ) |   | (39,592 | ) |   | (36,253 | ) |   | (50,322 | ) |   | (37,613 | ) |
| Total                assets                                |   |                                           | 166,792  |   |   | 163,665 |   |   | 150,981 |   |   | 129,294 |   |   | 125,886 |   |
| Total                consolidated debt                     |   |                                           | 245,862  |   |   | 229,937 |   |   | 217,247 |   |   | 217,961 |   |   | 214,975 |   |
| Series                A preferred stock                    |   |                                           | 15,000   |   |   | 15,000 |   |   | 15,000 |   |   | 7,688 |   |   | 14,914 |   |
| Consolidated                shareholders’ deficiency |   |                                           | (171,041 | ) |   | (141,144 | ) |   | (142,793 | ) |   | (179,177 | ) |   | (160,872 | ) |
|                                                       |   |                                           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Studio/Store                Data:**                      |   |                                           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Number                of permanent studios and stores:     |   |                                           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Wal-Mart:                                                  |   |                                           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S.                (11)                                   |   |                                           | 2,063    |   |   | 1,900 |   |   | 1,707 |   |   | 1,537 |   |   | 1,381 |   |
| Canada,                Mexico, Germany and U.K.            |   |                                           | 340      |   |   | 301 |   |   | 256 |   |   | 210 |   |   | 171 |   |
| Other                (12)                                  |   |                                           | 13       |   |   | 39 |   |   | 38 |   |   | 30 |   |   | 10 |   |
| Total                                                      |   |                                           | 2,416    |   |   | 2,240 |   |   | 2,001 |   |   | 1,777 |   |   | 1,562 |   |
|                                                       |   |                                           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |