<PAGE>
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, 1999
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
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(Address of Principal Executive Offices)
(801) 363-7663
---------------
Registrant's telephone number, including area code
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 December 31, 1999.
51,101,680 Common Stock (Par Value $.001)
------------------------------------------
<PAGE>
First Mortgage Corporation
Form 10-Q
Nine Months Ended November 30, 1999
INDEX
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Page
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PART I Financial Information
ITEM 1 Financial Statements
Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . .5
Statements of Operations. . . . . . . . . . . . . . . . . . . .7
Statements of Cash Flows. . . . . . . . . . . . . . . . . . . .8
Notes to Financial Statements . . . . . . . . . . . . . . . . .9
Management's Discussion and Analysis of
the Statement of Income. . . . . . . . . . . . . . . . . . . . . . 10
PART II Other Information
ITEM 1 Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . 11
ITEM 2 Changes in Securities . . . . . . . . . . . . . . . . . . . . 11
ITEM 3 Defaults upon Senior Securities . . . . . . . . . . . . . . . 11
ITEM 4 Submission of Matters to a Vote of Security Holders . . . . . 11
ITEM 5 Other Information . . . . . . . . . . . . . . . . . . . . . . 11
ITEM 6 Exhibits and Reports on Form 8-K. . . . . . . . . . . . . . . 11
SIGNATURES. . . . . . . . . . . . . . . . . . . . . . . . . . 12
<PAGE>
First Mortgage Corporation
Financial Statements
November 30, 1999
&
February 28, 1999
<PAGE>
First Mortgage Corporation
Balance Sheets
November 30, 1999 and February 28, 1999
<TABLE>
<CAPTION>
(Unaudited)
November February
30, 1999 28, 1999
----------- -----------
<S> <C> <C>
Assets
Current Assets
- --------------
Cash in Bank $ 76,691 $ 48,566
Cash in Savings 100,000 100,000
Other Receivables 3,922 3,922
Contracts Receivable 2,500 2,500
Notes Receivable 560,495 594,000
----------- -----------
Total Current Assets 743,608 748,988
Fixed Assets
- ------------
Office Equipment 1,526 1,818
Leasehold Improvements 225 330
----------- -----------
Total Fixed Assets 1,751 2,148
Other Assets
- ------------
Investment 50,000 50,000
Certificate of Deposit 200,000 200,000
Land 91,832 47,968
----------- -----------
Total Other Assets 341,832 297,968
----------- -----------
Total Assets $1,087,191 $1,049,104
=========== ===========
</Page>
See Accompanying Notes
<PAGE>
First Mortgage Corporation
Balance Sheets -Continued-
November 30, 1999 & February 28, 1999
</TABLE>
<TABLE>
<CAPTION>
(Unaudited)
November February
30, 1999 28, 1999
----------- -----------
<S> <C> <C>
Liabilities And Stockholders' Equity
Current Liabilities
- -------------------
Accounts Payable $ 592 $ 592
Taxes Payable 41,678 93,927
----------- -----------
Total Current Liabilities 42,270 94,519
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 751,122 660,786
----------- -----------
Total Stockholders' Equity 1,044,921 954,585
----------- -----------
Total Liabilities &
Stockholders' Equity $1,087,191 $1,049,104
=========== ===========
</TABLE>
See Accompanying Notes
<PAGE>
First Mortgage Corporation
Statements of Operations -Unaudited-
For the Nine Months Periods Ended November 30, 1999 & 1998
and the Three Months Period Ended November 30, 1999 & 1998
<TABLE>
<CAPTION>
For the Nine Months For the Three Months
Periods Ended Periods Ended
November November November November
30, 1999 30, 1998 30, 1999 30, 1998
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Revenues
- --------
Mortgage Recovery $ 240,500 $ 333,000 $ 49,300 $ 20,000
Interest 13,328 69,257 4,475 26,146
Bad Debt Recovery 10,462 3,839 2,000 2,371
----------- ----------- ----------- -----------
Total Revenues 264,290 406,096 55,775 48,517
Expenses
- --------
Interest Expense 463 -0- -0- -0-
Commission Expense 91,200 150,200 20,800 16,000
Office Expense ( 1,005) 7,655 -0- 2,550
Rent 7,250 7,250 2,175 2,900
Professional Fees 9,032 5,241 6,232 -0-
Telephone 1,574 2,125 481 544
Depreciation 438 405 146 135
Land Expense 1,238 -0- -0- -0-
Travel 3,610 2,610 -0- 2,308
Taxes 13,617 15,830 2,817 -0-
----------- ----------- ----------- -----------
Total Expenses 127,417 191,316 32,651 24,437
----------- ----------- ----------- -----------
Net Profit Before
Taxes 136,873 214,780 23,124 24,080
Income Taxes 46,537 67,119 8,093 9,391
----------- ----------- ----------- -----------
Net Profit After
Taxes $ 90,336 $ 147,661 $ 15,031 $ 14,689
=========== =========== =========== ===========
Earnings Per Share $ 0.002 $ 0.003 $ 0.000 $ 0.000
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, 1999 & 1998
<TABLE>
<CAPTION>
(Unaudited) (Unaudited)
1999 1998
----------- -----------
<S> <C> <C>
Cash Flows from Operating Activities
- ------------------------------------
Net Income $ 90,336 $ 147,661
Adjustments to Reconcile Net Income
to Operating Activities:
Depreciation 438 405
Changes in Operating Assets & Liabilities:
Decrease in Other Receivables -0- 9,509
(Decrease) in Accounts Payable -0- ( 883)
Increase (Decrease) in Taxes ( 52,249) ( 43,809)
----------- -----------
Net Cash Provided by Operating Activities 38,525 112,884
Cash Flows from Investing Activities
- ------------------------------------
Increase in Contracts ( 143,300) ( 290,000)
Purchase of Land ( 43,864) -0-
Collected On Contracts 176,764 32,500
----------- -----------
Net Cash Provided by Investing Activities ( 10,400) ( 257,500)
Cash Flows from Financing Activities
- ------------------------------------
Net Cash Provided by Financing Activities -0- -0-
----------- -----------
Increase (Decrease) in Cash 28,125 ( 144,616)
Cash at Beginning of Year 148,566 298,335
----------- -----------
Cash at End of Year $ 176,691 $ 153,719
=========== ===========
Expense Disclosures
- -------------------
Interest $ 463 $ -0-
Taxes 46,537 67,119
</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 28, 1999 10-K report.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
Liquidity and Capital Resources
- -------------------------------
Management believes that proceeds from current revenues from interest and
cash reserves will provide sufficient capital to meet the Company's needs
for the next twelve months.
Management believes that its prime source of funds will be interest earned
from the trust deed notes receivable.
Results of Operations
- ---------------------
During the nine months period ending November 30, 1999, the Company
collected $240,500 from mortgage recovery activities and $13,328 from
interest income. Comparable figures for the nine months of 1998 are
$333,000 from mortgage recovery income and $69,257 from interest income.
For the three months period ending November 30, 1999, mortgage recovery
revenues were $49,300 and interest earnings were $4,475. Comparable
figures for the three month period of 1998, are $20,000 from mortgage
revenues and $26,146 from interest income. The increase in revenues from
the previous comparable period 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.
The Company had $264,290 in revenues in the nine months period ending
November 30, 1999. For the comparable six months period ending November
30, 1998, total revenues were $406,906.
Commissions expense for the six months period ending November 30, 1999,
were $91,200 and $150,200 for the nine months period of 1998.
Administrative expenses for the nine months period ending November 30,
1999, were $36,217 and for the comparable period of 1998 were $41,116.
Net profit after provisions for income taxes were $46,537 for November 30,
1999, and $67,119 for November 30, 1998.
The Company's management anticipates that revenues for the next fiscal year
will be limited to interest earned on mortgage contracts.
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
- --------------------------------------------------------------------------
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 14, 2000 By:/S/ William S. Greaves
------------------ ---------------------------------
William S. Greaves, President
(Principal Executive Officer)
(Principal Financial & Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000036548
<NAME> FIRST MORTGAGE CORP
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> FEB-28-1999
<PERIOD-START> SEP-01-1999
<PERIOD-END> NOV-30-1999
<CASH> 176,691
<SECURITIES> 0
<RECEIVABLES> 566,917
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 743,608
<PP&E> 1,751
<DEPRECIATION> 0
<TOTAL-ASSETS> 1,087,191
<CURRENT-LIABILITIES> 42,678
<BONDS> 0
0
0
<COMMON> 51,102
<OTHER-SE> 993,819
<TOTAL-LIABILITY-AND-EQUITY> 1,087,191
<SALES> 0
<TOTAL-REVENUES> 264,290
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 127,417
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 136,873
<INCOME-TAX> 46,537
<INCOME-CONTINUING> 90,336
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 90,336
<EPS-BASIC> (0.002)
<EPS-DILUTED> 0
</TABLE>
