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, 1999
Commission File No. 33-2749
FIRST MORTGAGE CORPORATION
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(Exact name of registrant as specified in its charter)
Incorporated under the laws of the State of
Utah 87-03202209
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(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
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Registrant's telephone number, including area code
N/A
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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
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(2) Yes X No
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Indicate the number of shares outstanding of each class of common stock as
of December 1, 1999.
51,101,680 Common Stock (Par Value $.001)
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First Mortgage Corporation
Form 10-Q
Three Months Ended May 31, 1999
INDEX
Page
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PART I Financial Information
ITEM 1 Financial Statements
Balance Sheets. . . . . . . . . . . . . . . . . . . . . . 3
Statements of Operations. . . . . . . . . . . . . . . . . 5
Statements of Cash Flows. . . . . . . . . . . . . . . . . 6
Notes to Financial Statements . . . . . . . . . . . . . . 7
Management's Discussion and Analysis of
the Statement of Income . . . . . . . . . . . . . . . . . 8
PART II Other Information
ITEM 1 Legal Proceedings . . . . . . . . . . . . . . . . . . . . 9
ITEM 2 Changes in Securities . . . . . . . . . . . . . . . . . . 9
ITEM 3 Defaults upon Senior Securities . . . . . . . . . . . . . 9
ITEM 4 Submission of Matters to a Vote of Security Holders . . . 9
ITEM 5 Other Information . . . . . . . . . . . . . . . . . . . . 9
ITEM 6 Exhibits and Reports on Form 8-K. . . . . . . . . . . . . 9
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . .10
First Mortgage Corporation
Balance Sheets
May 31, 1999 and February 28, 1999
(Unaudited)
May February
31, 1999 28, 1999
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Assets
Current Assets
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Cash in Bank $ 62,824 $ 48,566
Cash in Savings 100,000 100,000
Other Receivables 3,922 3,922
Contracts Receivable 2,500 2,500
Notes Receivable 666,500 594,000
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Total Current Assets 835,746 748,988
Fixed Assets
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Office Equipment 1,707 1,818
Leasehold Improvements 295 330
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Total Fixed Assets 2,002 2,148
Other Assets
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Investment 50,000 50,000
Certificate of Deposit 200,000 200,000
Land 47,968 47,968
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Total Other Assets 297,968 297,968
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Total Assets $1,135,716 $ 1,049,104
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See Accompanying Notes
3
First Mortgage Corporation
Balance Sheets -Continued-
May 31, 1999 & February 28, 1999
(Unaudited)
May February
31, 1999 28, 1999
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Liabilities and Stockholders' Equity
Current Liabilities
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Accounts Payable $ 592 $ 592
Taxes Payable 123,375 93,927
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Total Current Liabilities 123,967 94,519
Stockholders' Equity
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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 717,950 660,786
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Total Stockholders' Equity 1,011,749 954,585
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Total Liabilities &
Stockholders' Equity $ 1,135,716 $ 1,049,104
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See Accompanying Notes
4
First Mortgage Corporation
Statements of Operations
For the Three Month Periods Ended May 31, 1999 & 1998
(Unaudited) (Unaudited)
1999 1998
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Revenues
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Mortgage Recovery $ 130,000 $ 94,000
Interest 4,362 21,018
Bad Debt Recovery 8,000 423
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Total Revenues 142,362 115,441
Expenses
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Interest Expense 463 -0-
Commission Expense 47,000 48,000
Office Expense 225 2,092
Rent 2,175 2,175
Professional Fees 1,200 59
Telephone 565 1,068
Depreciation 146 135
Land Expense 866 -0-
Travel 3,110 302
Taxes -0- 6,500
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Total Expenses 55,750 60,331
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Net Profit Before Taxes 86,612 55,110
Income Taxes 29,448 8,778
Net Profit After Taxes $ 57,164 $ 46,332
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Earnings Per Share $ 0.001 $ 0.001
Weighted Average Shares Outstanding 51,101,680 51,101,680
See Accompanying Notes
5
First Mortgage Corporation
Statements of Cash Flows
For the Three Months Periods Ended May 31, 1999 & 1998
(Unaudited) (Unaudited)
1999 1998
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Cash Flows from Operating Activities
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Net Income $ 57,164 $ 46,332
Adjustments to Reconcile Net Income
to Operating Activities:
Depreciation 146 135
Changes in Operating Assets & Liabilities:
Decrease in Other Receivables -0- 9,509
(Decrease) in Accounts Payable -0- ( 883)
Increase (Decrease) in Taxes 29,448 ( 33,337)
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Net Cash Provided by Operating Activities 86,758 21,756
Cash Flows from Investing Activities
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Increase in Contracts ( 130,000) ( 212,500)
Collected on Contracts 57,500 -0-
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Net Cash Provided by Investing Activities ( 72,500) ( 212,500)
Cash Flows from Financing Activities
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Net Cash Provided by Financing Activities -0- -0-
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Increase (Decrease) in Cash 14,258 ( 190,744)
Cash at Beginning of Year $ 148,566 $ 298,335
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Cash at End of Year $ 162,824 $ 107,591
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Expense Disclosures
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Interest $ -0- $ -0-
Taxes 29,448 8,778
See Accompanying Notes
6
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.
7
MANAGEMENT'S DISCUSSION AND ANALYSIS
Liquidity and Capital Resources
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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
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During the three months period ended May 31, 1999 the Company collected
$130,000 from its mortgage recovery loan package purchased from FDIC or the
RTC. In addition, the Company earned $4,362 in interest from its Trust
Deed Notes. In 1998, for the three months period ended May 31, 1998, the
Company collected $94,000 from its mortgage recovery program and earned
$21,018 in interest.
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PART II - OTHER INFORMATION
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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
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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.
/S/ William S. Greaves
Date: December 5, 1999 By:------------------------------
William S. Greaves, President
(Principal Executive Officer)
(Principal Financial & Accounting Officer)
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