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, 1997
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 87-0320209
------ -------------
(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
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Page
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PART I Financial Information
ITEM 1 Financial Statements
Balance Sheets. . . . . . . . . . . . . . . . . . . . . . . .2
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
FINANCIAL STATEMENTS
November 30, 1996
&
February 29, 1996
<PAGE>
FIRST MORTGAGE CORPORATION
Balance Sheets
November 30, 1997 and February 28, 1997
<TABLE>
<CAPTION>
November February
30, 1997 28, 1997
----------- -----------
<S> <C> <C>
ASSETS
Current Assets
- --------------
Cash in Bank $ 245,287 $ 48,153
Cash in Savings 300,000 422,000
Other Receivables 125,000 -0-
Contracts Receivable -0- 34,430
Prepaid Taxes -0- 4,742
----------- -----------
Total Current Assets 670,287 509,325
Fixed Assets
- ------------
Office Equipment 2,189 -0-
Leasehold Improvements 505 610
----------- -----------
Total Fixed Assets 2,694 610
Other Assets
- ------------
Land - (Note #4) 47,968 43,640
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Total Other Assets 47,968 43,640
----------- -----------
TOTAL ASSETS $ 720,949 $ 553,575
=========== ===========
</TABLE>
(See Accountant's Notes)
3<PAGE>
FIRST MORTGAGE CORPORATION
Balance Sheets -Continued-
November 30, 1997 & February 28, 1997
<TABLE>
<CAPTION>
November February
30, 1997 28, 1997
----------- -----------
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
- -------------------
Accounts Payable $ -0- $ -0-
Taxes Payable 53,631 -0-
----------- -----------
Total Current Liabilities 53,631 -0-
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 373,519 259,776
----------- -----------
Total Stockholders' Equity 667,318 553,575
----------- -----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 720,949 $ 553,575
=========== ===========
</TABLE>
(See accompanying notes)
4<PAGE>
FIRST MORTGAGE CORPORATION
Statements of Operations
For the Nine Month Period November 30, 1997 & 1996
and the Three Month Period Ended November 30, 1997 & 1996
<TABLE>
<CAPTION>
Nine Month Periods Ended Three Months Period Ended
November November November November
30, 1997 30, 1996 30, 1997 30, 1996
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Revenues
- --------
Mortgage Recovery $ 245,070 $ 66,000 $ 145,000 $ 38,000
Interest 17,575 13,058 5,629 4,374
Bad Debt Recovery 1,419 1,696 623 -0-
----------- ----------- ----------- -----------
Total Revenues 264,063 80,754 151,251 42,374
Expenses
- --------
Commission Expense 69,600 56,800 50,800 40,600
Interest Expense -0- 3,752 -0- 2,188
Office Expense 4,267 4,092 1,331 1,395
Rent 6,525 6,525 2,175 2,175
Professional Fees 4,080 4,551 -0- 451
Telephone 1,673 1,521 648 523
Depreciation 575 279 203 93
Land Expense 249 -0- -0- -0-
Travel 8,928 2,729 1,727 2,282
Taxes 792 423 393 408
----------- ----------- ----------- -----------
Total Expenses 96,689 80,672 57,277 50,115
----------- ----------- ----------- -----------
Net Profit (Loss)
Before Taxes 167,374 82 93,974 ( 7,741)
Income Taxes 53,631 -0- 23,303 1,161
----------- ----------- ----------- -----------
Net Profit After Taxes $ 113,743 $ 82 $ 70,671 ($ 6,580)
=========== =========== =========== ===========
Earnings Per Share $ .002 $ .00 $ .001 ($ .00)
Weighted Average
Shares Outstanding 51,101,680 51,101,680 51,101,680 51,101,680
</TABLE>
(See accompanying notes)
5<PAGE>
FIRST MORTGAGE CORPORATION
Statements of Cash Flows
For the Nine Months Periods Ended November 30, 1997 & 1996
<TABLE>
<CAPTION>
(Unaudited) (Unaudited)
1997 1996
----------- -----------
<S> <C> <C>
Cash Flows from Operating Activities
- ------------------------------------
Net Income (Loss) $ 113,743 $ 82
Adjustments to Reconcile Net Income
or (Loss) to Operating Activities:
Depreciation 575 279
Changes in Operating Assets & Liabilities:
Decrease in Prepaid Taxes 4,742 2,128
(Increase) Decrease in Other Receivable ( 125,000) 100,000
(Decrease) Increase in Accounts Payable -0- ( 897)
Increase (Decrease) in Taxes 53,631 -0-
Rounding ( 1) -0-
----------- -----------
Net Cash Provided by Operating Activities 47,690 101,592
Cash Flows from Investing Activities
- ------------------------------------
Purchase of Equipment ( 2,658) -0-
Purchase of Land ( 4,328) ( 11,607)
Collected on Contracts 34,430 153,000
Payment on Notes Payable -0- ( 140,000)
----------- -----------
Net Cash Provided by Investing Activities 27,444 1,393
Cash Flows from Financing Activities
- ------------------------------------
Net Cash Provided by Financing Activities -0- -0-
----------- -----------
Increase (Decrease) in Cash 75,134 102,985
Cash at Beginning of Year $ 470,153 $ 340,577
----------- -----------
Cash at End of Year $ 545,287 $ 443,562
=========== ===========
Expense Disclosures
- -------------------
Interest $ -0- $ 3,752
Taxes 53,631 -0-
</TABLE>
(See accompanying notes)
6<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 28, 1997 10-K report.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
Liquidity and Capital Resources
- --------------------------------
Management believes that proceeds from current mortgage recovery revenues,
interest revenues and cash reserves will provide sufficient capital and
liquidity to meet the Company's needs for the next nine months.
The general business outlook continues to be unclear for the Company. The
Company's management is convinced it must find a revenue source to replace
the RTC loan packages it has processed in the past few years. Currently,
the Company is purchasing secured "Bridge Loans" for mortgages on real
property. Management believes these mortgage loan receivables will provide
additional revenues for the Company.
During the nine month period ending November 30, 1997, the Company
collected $245,069 from mortgage recovery activities and $17,575 from
interest income. Comparable figures for the nine months of 1996 are
$66,000 from mortgage recovery income and $13,058 from interest income.
For the nine months period ending November 30, 1997, mortgage recovery
revenues were $144,999 and interest earnings were $5,629. Comparable
figures for the three month period of 1996, are $38,000 from mortgage
revenues and $4,374 from interest income. The increase in revenues from
the previous comparable periods are the result of specific loan packages
obtained from the FDIC. The Company expects this trend to continue into
the next six months but not into the next fiscal year.
Results of Operations
- ---------------------
The Company had $264,063 in revenues in the nine months period ending
November 30, 1997. For the comparable nine months of 1996, total revenues
were $80,754.
Commission expense for the nine month period ending November 30, 1997, were
$69,600 and $56,800 for the nine month period ending November 30, 1996.
Administrative expenses for the nine months period ending November 30,
1997, were $27,089 and for the comparable period of 1996 were $23,872.
Net profit after provisions for income taxes were $113,743 for November 30,
1997, and $82 for November 30, 1996.
The Company's management anticipates that revenues will continue at the
current quarter level for the next six months but not beyond the fiscal
year end of February 28, 1998. The basis of this is the collection of the
loans packages producing the revenues will be completed by February 28,
1998.
8
<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.
April 3, 1998 /S/ William S. Greaves
Date: ------------------------- By: ------------------------------
April 3, 1998 William S. Greaves, President
(Principal Executive Officer)
April 3, 1998 /S/ William S. Greaves
Date: ------------------------- By: ------------------------------
April 3, 1998 William S. Greaves, President
(Principal Financial &
Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000036548
<NAME> FIRST MORTGAGE CORP
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> FEB-28-1997
<PERIOD-END> NOV-30-1997
<CASH> 545,287
<SECURITIES> 0
<RECEIVABLES> 125,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 50,662
<DEPRECIATION> 0
<TOTAL-ASSETS> 720,949
<CURRENT-LIABILITIES> 53,631
<BONDS> 0
0
0
<COMMON> 51,102
<OTHER-SE> 616,216
<TOTAL-LIABILITY-AND-EQUITY> 720,949
<SALES> 0
<TOTAL-REVENUES> 264,063
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 96,689
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 167,374
<INCOME-TAX> 53,631
<INCOME-CONTINUING> 113,743
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 113,743
<EPS-PRIMARY> .002
<EPS-DILUTED> 0
</TABLE>
