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 May 31, 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 87-03202209
(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 May 31, 1997
51,101,680 Common Stock (Par Value $.001)
------------------------------------------
FIRST MORTGAGE CORPORATION
Form 10-Q
Three Months Ended May 31, 1997
INDEX
Page
PART I Financial Information
ITEM 1 Financial Statements
Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Statements of Operations . . . . . . . . . . . . . . . . . . . . . . . . 6
Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . 7
Note to Financial Statements . . . . . . . . . . . . . . . . . . . . . . 8
Management's Discussion and Analysis of
the Statement of Income. . . . . . . . . . . . . . . . . . . . . . . . . 9
PART II Other Information
ITEM 1 Legal Proceedings. . . . . . . . . . . . . . . . . . . . . . . . . 10
ITEM 2 Changes in Securities. . . . . . . . . . . . . . . . . . . . . . . 10
ITEM 3 Defaults upon Senior Securities. . . . . . . . . . . . . . . . . . 10
ITEM 4 Submission of Matters to a Vote of Security Holders. . . . . . . . 10
ITEM 5 Other Information. . . . . . . . . . . . . . . . . . . . . . . . . 10
ITEM 6 Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . 10
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
FIRST MORTGAGE CORPORATION
FINANCIAL STATEMENTS
May 31, 1997 (Unaudited)
&
February 28, 1997
FIRST MORTGAGE CORPORATION
Balance Sheets
May 31, 1997 and February 28, 1997
(Unaudited)
May February
31, 1997 28, 1997
------------ ------------
ASSETS
Current Assets
- --------------
Cash in Bank $ 91,686 $ 48,153
Cash in Savings 422,000 422,000
Other Receivables -0- -0-
Contracts Receivable (5,426) 34,430
Tax Refund Receivable -0- 4,742
------------ ------------
Total Current Assets 508,260 509,325
Fixed Assets
- ------------
Office Equipment 2,525 -0-
Leasehold Improvements 575 610
------------ ------------
Total Fixed Assets 3,100 610
Other Assets
- ------------
Investment 5,000 -0-
Land 47,968 43,640
------------ ------------
Total Other Assets 52,968 43,640
------------ ------------
TOTAL ASSETS $ 564,328 $ 553,575
============ ============
(See accompanying note)
- 4 -
FIRST MORTGAGE CORPORATION
Balance Sheets -Continued-
May 31, 1997 & February 28, 1997
(Unaudited)
May February
31, 1997 28, 1997
------------ ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
- -------------------
Accounts Payable $ -0- $ -0-
------------ ------------
Total Current Liabilities -0- -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 270,529 259,776
------------ ------------
Total Stockholders' Equity 564,328 553,575
------------ ------------
TOTAL LIABILITIES &
STOCKHOLDERS' EQUITY $ 564,328 $ 553,575
============ ============
(See accompanying note)
- 5 -
FIRST MORTGAGE CORPORATION
Statements of Operations
For the Three Month Periods Ended May 31, 1997 & 1996
(Unaudited) (Unaudited)
May 31, May 31,
1997 1996
------------ ------------
Revenues
- --------
Mortgage Recovery $ 18,143 $ 23,000
Interest 4,944 4,311
Bad Debt Recovery 380 1,292
------------ ------------
Total Revenues 23,467 28,603
Expenses
- --------
Commission Expense 7,000 13,200
Office Expense 1,438 1,497
Rent 2,175 2,175
Professional Fees -0- 1,000
Telephone 507 496
Depreciation 168 93
Land Expense 249 -0-
Travel 1,157 147
Taxes 20 15
------------ ------------
Total Expenses 12,714 18,623
------------ ------------
Net Profit Before Taxes 10,753 9,980
Income Taxes -0- (1,497)
------------ ------------
Net Profit After Taxes $ 10,753 $ 8,483
============ ============
Earnings Per Share $ .00 $ .00
Weighted Average Shares Outstanding 51,101,680 51,101,680
(See accompanying note)
- 6 -
FIRST MORTGAGE CORPORATION
Statements of Cash Flows
For the Three Months Periods Ended May 31, 1997 & 1996
(Unaudited) (Unaudited)
1997 1996
------------ ------------
Cash Flows from Operating Activities
- ------------------------------------
Net Income (Loss) $ 10,753 $ 8,483
Adjustments to Reconcile Net Income
or (Loss) to Operating Activities:
Depreciation 168 93
Changes in Operating Assets &Liabilities:
Decrease in Prepaid Taxes 4,742 2,128
(Decrease) Increase in Accounts Payable -0- (897)
Increase (Decrease) in Taxes -0- 1,497
------------ ------------
Net Cash Provided by
Operating Activities 15,663 11,304
Cash Flows from Investing Activities
- ------------------------------------
Increase in Land Investment (4,329) -0-
Increase in Investment (5,000) -0-
Purchase of Equipment (2,658) -0-
Collected on Contracts 39,857 72,000
(Decrease) Increase in Notes Payable -0- (84,000)
------------ ------------
Net Cash Provided by
Investing Activities 27,870 (12,000)
Cash Flows from Financing Activities
- ------------------------------------
Net Cash Provided by
Financing Activities -0- -0-
------------ ------------
Increase (Decrease) in Cash 43,533 (696)
Cash at Beginning of Year $ 470,153 $ 340,577
------------ ------------
Cash at End of Year $ 513,686 $ 339,881
============ ============
Expense Disclosures
- -------------------
Interest $ -0- $ -0-
Taxes -0- 1,497
(See accompanying note)
- 7 -
First Mortgage Corporation
Note 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.
- 8 -
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 $39,897 on its investments, recognized $18,143 as
revenue, 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 on October 4, 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 three 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.
- 9 -
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
- 10 -
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: July 11, 1997 By: /S/ William S. Greaves
-------------------------------
William S. Greaves, President
(Principal Executive Officer)
/S/ William S. Greaves
Date: July 11, 1997 By: ------------------------------
William S. Greaves, President
(Principal Financial & Accounting Officer)
- 11 -