SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarter Ended November 30, 1996
Commission File No. 33-2749
FIRST MORTGAGE CORPORATION
(Exact name of registrant as specified in its charter)
Incorporated under the laws of
the State of UTAH 87-03202209
(State or other jurisdiction of (I.R.S. Employer
incorporation of organization) Identification Number)
257 East 200 South, Suite 950, Salt Lake City, Utah 84111
(Address of Principal Executive Offices)
Registrant's telephone number, including area code
(801) 363-7663
N/A
Former name, former address and former fiscal year,
if changed since last report
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.
(1) Yes X No
(2) Yes X No
Indicate the number of shares outstanding of each class of common stock as of
November 30, 1996.
51,101,680 COMMON STOCK (PAR VALUE $.001)<PAGE>
FIRST MORTGAGE CORPORATION
Form 10-Q
Nine Months Ended November 30, 1996
INDEX
PAGE
PART I Financial Information
ITEM 1 Financial Statements
Balance Sheets. . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Statements of Operations. . . . . . . . . . . . . . . . . . . . . . 4
Statements of Cash Flows. . . . . . . . . . . . . . . . . . . . . . 5
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . 6
Management's Discussion and Analysis of
the Statement of Income . . . . . . . . . . . . . . . . . . . . . . 7
PART II Other Information
ITEM 1 Legal Proceedings. . . . . . . . . . . . . . . . . . . . . . . 8
ITEM 2 Changes in Securities. . . . . . . . . . . . . . . . . . . . . 8
ITEM 3 Defaults upon Senior Securities . . . . . . . . . . . . . 8
ITEM 4 Submission of Matters to a Vote of Security Holders. . . . . . 8
ITEM 5 Other Information . . . . . . . . . . . . . . . . . . . . 8
ITEM 6 Exhibits and Reports on Form 8-K. . . . . . . . . . . . . 8
SIGNATURES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
<PAGE>
FIRST MORTGAGE CORPORATION
Balance Sheets
November 30, 1996 and February 29, 1996
<TABLE>
<CAPTION>
(Unaudited) (Unaudited)
November February
30, 1996 28, 1996
------------ ------------
<S> <C> <C>
ASSETS
Current Assets
Cash in Bank $ 22,562 $ 20,577
Cash in Savings 421,000 320,000
Other Receivables -0- 100,000
Contracts Receivable 107,441 260,441
Prepaid Taxes -0- 2,128
------------- ------------
Total Current Assets 551,003 703,146
Fixed Assets
Office Equipment 25 55
Leasehold Improvements 501 750
------------ ------------
Total Fixed Assets 526 805
Other Assets
Land 38,023 26,416
------------- ------------
Total Other Assets 38,023 26,416
------------- ------------
TOTAL ASSETS $ 589,552 $ 730,367
============= ============
</TABLE>
See accompanying notes<PAGE>
FIRST MORTGAGE CORPORATION
Balance Sheets -Continued-
November 30, 1996 & February 29, 1996
<TABLE>
<CAPTION>
(Unaudited)
November February
30, 1996 29, 1996
------------- ------------
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable $ 800 $ 1,697
Taxes Payable -0- -0-
Notes Payable -0- 140,000
------------- ------------
Total Current Liabilities 800 141,697
Stockholders' Equity
Common Stock, 100,000,000
Shares Authorized at $0.001 Par Value;
51,101,680 Shares Issued & Outstanding 51,102 51,102
Capital in Excess of Par Value 242,697 242,697
Retained Earnings 294,953 294,871
------------- -------------
Total Stockholders' Equity 588,752 588,670
------------- -------------
TOTAL LIABILITIES &
STOCKHOLDERS' EQUITY $ 589,552 $ 730,367
============= =============
</TABLE>
See accompanying notes<PAGE>
FIRST MORTGAGE CORPORATION
Statements of Operations
For the Nine Month Period November 30, 1996 & 1995
and the Three Month Period Ended November 30, 1996 & 1995
<TABLE>
<CAPTION>
Nine Month Three Month
Period Ended Period Ended
November November November November
30, 1996 30, 1995 30, 1996 30, 1995
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Revenues
Mortgage Recovery $ 66,000 $ 58,357 $ 38,000 $ 25,713
Interest 13,058 23,313 4,374 4,646
Miscellaneous Income -0- 1,773 -0- 1,773
Rent Income -0- 66,654 -0- 22,218
Bad Debt Recovery 1,696 2,614 -0- 480
------------ ------------ ------------ -------------
Total Revenues 80,754 152,711 42,374 54,830
Expenses
Commission Expense 56,800 30,200 40,600 6,200
Interest Expense 3,752 35,330 2,188 14,044
Office Expense 4,092 7,934 1,395 1,354
Rent 6,525 6,525 2,175 2,175
Professional Fees 4,551 12,004 451 5,266
Telephone 1,521 1,295 523 440
Depreciation 279 8,247 93 5,027
Filings & Fees -0- -0- -0- 1,906
Land Expense -0- 5,126 -0- 3,775
Travel 2,729 2,152 2,282 974
Taxes 423 8,604 408 7,999
------------ ------------ ------------ ------------
Total Expenses 80,672 117,417 50,115 49,163
------------ ------------ ------------ ------------
Net Profit (Loss)
Before Taxes 82 35,294 (7,741) 5,667
Income Taxes -0- 7,059 1,161 (1,133)
------------ ------------ ------------ ------------
Net Profit
After Taxes $ 82 $ 28,235 $ (6,580) $ 4,534
============ ============ ============ =============
Earnings Per
Share $ .00 $ .00 $ (.00) $ .00
Weighted
Average Shares
Outstanding 51,101,680 51,101,680 51,101,680 51,101,680
</TABLE>
See accompanying notes<PAGE>
FIRST MORTGAGE CORPORATION
Statements of Cash Flows
For the Nine Months Periods Ended November 30, 1996 & 1995
<TABLE>
<CAPTION>
(Unaudited) (Unaudited)
1996 1995
------------ ------------
<S> <C> <C>
Cash Flows from Operating Activities
Net Income (Loss) $ 82 $ 28,235
Adjustments to Reconcile Net Income
or (Loss) to Operating Activities:
Depreciation 279 8,247
Changes in Operating Assets &Liabilities:
Decrease in Prepaid Taxes 2,128 -0-
(Increase) Decrease in Other Receivable 100,000 49,795
(Decrease) Increase in Accounts Payable (897) (28,689)
Increase (Decrease) in Taxes -0- (12,447)
Rounding -0- (1)
------------ ------------
Net Cash Provided by Operating Activities 101,592 45,140
Cash Flows from Investing Activities
Purchase of Land (11,607) -0-
Purchase of Building -0- (564,921)
Increase in Long Term Debt -0- 564,921
Collected on Contracts 153,000 46,500
Payment on Notes Payable (140,000) (65,813)
Payment on Mortgages -0- (8,740)
------------ ------------
Net Cash Provided by Investing Activities 1,393 (28,053)
Cash Flows from Financing Activities -0- -0-
------------ ------------
Net Cash Provided by Financing Activities -0- -0-
------------ ------------
Increase (Decrease) in Cash 102,985 17,087
Cash at Beginning of Year $ 340,577 $ 435,781
------------ ------------
Cash at End of Year $ 443,562 $ 452,868
============ ============
Expense Disclosures
Interest $ 3,752 $ 35,330
Taxes -0- 7,059
</TABLE>
See accompanying notes <PAGE>
First Mortgage Corporation
Notes to Financial Statements
NOTE #1 - STATEMENT PREPARATION
The Company has prepared the accompanying financial statements with
interim financial reporting requirement promulgated by the Securities and
Exchange Commission. The information furnished reflects all adjustments which
are, in the opinion of management, necessary for a fair presentation of
financial position and results of operations.
The consolidated financial statements should be read in conjunction
with the consolidated financial statements and notes thereto included in the
Company's February 29, 1996 10-K report.<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
LIQUIDITY AND CAPITAL RESOURCES
First Mortgage Corporation (the Company) is engaged in the business of
buying loan packages of mostly commercial loans from the FDIC or RTC. The
Company attempts to recover its investment and make a profit through collection
efforts. It is the Company's policy to not recognize any income until it has
recovered its initial investment. During the current quarter the Company
collected $165,000 on its investments, recognized $101,500 as income, and
purchased no new loan packages.
During the quarter ending May 31, 1995, the Company foreclosed on one
of the loans it had purchased. As a result of the foreclosure the Company
borrowed $564,921 to pay off a first mortgage position holder and took over
possession of a 20,000 square foot industrial building in Phoenix, Arizona. In
1996, the Company sold its position in the building to an associated investor.
The Company received $100,000 from the investor in October 1996. The investor
paid off the $564,921.
RESULTS OF OPERATIONS
First Mortgage Corporation (the Company) maintains adequate cash
reserves to pay for its operations for at least nine months without having to
use its cash in savings (cash equivalents), cash is collected on contracts,
commission are paid based on these collections. The Company has sufficient
cash and cash equivalents to retire all of its debt and still have adequate
working capital to continue its operations.
The Company has no present need to raise additional capital by sale of
its common stock shares.
<PAGE>
PART II - OTHER INFORMATION
Item 1 Legal Proceedings. . . . . . . . . . . . . . . . . . . . . None
Item 2 Changes in the Rights of the Company's Security Holders. . None
Item 3 Defaults by the Company on its Senior Securities . . . . . .None
Item 4 Results of Votes of Security Holders . . . . . . . . . . . .None
Item 5 Other Information. . . . . . . . . . . . . . . . . . . . . .None
Item 6 Exhibits and Reports on Form 8-K. . . . . . . . . . . . . . None
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
Date: January 30, 1997 By: William S. Greaves
------------------ -----------------------------
William s. Greaves, President &
Chief Executive Officer &
Chief Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains financial information extracted from the Financial
Statement of Financial Condition at November 30, 1996 (Unaudited) and the
Statement of Income for the nine months ended November 30, 1996 (Unaudited) and
is qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000036548
<NAME> FIRST MORTGAGE CORPORATION
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> FEB-28-1996
<PERIOD-END> NOV-30-1996
<CASH> 443,562
<SECURITIES> 0
<RECEIVABLES> 107,441
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 526
<DEPRECIATION> 0
<TOTAL-ASSETS> 38,023
<CURRENT-LIABILITIES> 800
<BONDS> 0
<COMMON> 51,102
0
0
<OTHER-SE> 537,650
<TOTAL-LIABILITY-AND-EQUITY> 589,552
<SALES> 80,754
<TOTAL-REVENUES> 80,754
<CGS> 0
<TOTAL-COSTS> 80,672
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,752
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 82
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
