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 August 31, 2000
Commission File No. 33-2749
FIRST MORTGAGE CORPORATION
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(Exact name of registrant as specified in its charter)
Utah 87-03202209
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(State or other jurisdiction of (I.R.S. Employer
incorporation of organization) Identification Number)
310 South Main Street, 14th Floor, 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 June 12, 2001.
51,101,680 Common Stock (Par Value $.001)
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First Mortgage Corporation
Form 10-Q
Six Months Ended August 31, 2000
INDEX
Page
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
August 31, 2000 and February 29, 2000
August February
31, 2000 29, 2000
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(Unaudited)
Assets
Current Assets
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Cash in Bank $ 114,330 $ 71,737
Cash in Savings 100,000 100,000
Other Receivables 3,922 3,922
Notes Receivable 456,176 473,621
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Total Current Assets 674,428 649,280
Fixed Assets (Net) 3,329 1,614
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Other Assets
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Notes Receivable 75,000 75,000
Investment 50,000 50,000
Certificate of Deposit 200,000 200,000
Land 115,761 115,761
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Total Other Assets 440,761 440,761
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Total Assets $ 1,118,518 $ 1,091,655
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Continued
3
First Mortgage Corporation
Balance Sheets
August 31, 2000 & February 29, 2000
August February
31, 2000 29, 2000
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(Unaudited)
Liabilities And Stockholders' Equity
Current Liabilities
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Taxes Payable $ - $ 54,458
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Total Current Liabilities - 54,458
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 824,719 743,398
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Total Stockholders' Equity 1,118,518 1,037,197
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Total Liabilities &
Stockholders' Equity $ 1,118,518 $ 1,091,655
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See accompanying notes to financial statements
4
First Mortgage Corporation
Statements of Operations (Unaudited)
For the Six Months Periods Ended August 31, 2000 & 1999
and the Three Months Period Ended August 31, 2000 & 1999
For the Six Months For the Three Months
Periods Ended Periods Ended
August August August August
31, 2000 31, 1999 31, 2000 31, 1999
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Revenues
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Mortgage Recovery $ 152,250 $ 188,500 $ 90,250 $ 58,500
Interest 9,903 8,854 5,483 4,492
Bad Debt Recovery - 8,462 - 462
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Total Revenues 162,153 205,816 95,733 63,454
Expenses
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Interest Expense - 463 - -
Commission Expense 61,600 70,400 36,200 23,400
Office Expense 873 31 603 (194)
Rent 2,425 4,040 1,455 1,865
Professional Fees 3,664 2,800 3,001 1,600
Telephone 722 1,092 368 527
Depreciation 446 292 223 146
Land Expense 476 1,238 - 372
Travel 3,148 3,610 3,048 500
Taxes 7,478 10,800 836 10,800
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Total Expenses 80,832 94,766 45,734 39,016
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Net Profit
Before Taxes 81,321 111,050 49,999 24,438
Income Taxes - 37,436 - 7,988
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Net Profit
After Taxes $ 81,321 $ 73,614 $ 49,999 $ 16,450
=========== =========== =========== ===========
Earnings Per Share $ 0.00 $ 0.00 $ 0.00 $ 0.00
Weighted Average
Shares Outstanding 51,101,680 51,101,680 51,101,680 51,101,680
See accompanying notes to financial statements
5
First Mortgage Corporation
Statements of Cash Flows (Unaudited)
For the Six Months Periods Ended August 31, 2000 & 1999
2000 1999
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Cash Flows from Operating Activities
- ------------------------------------
Net Income $ 49,999 $ 73,614
Adjustments to Reconcile Net Income
to Operating Activities:
Depreciation 223 292
Changes in Operating Assets & Liabilities:
Increase (Decrease) in Taxes - (30,242)
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Net Cash Provided by Operating Activities 50,222 43,664
Cash Flows from Investing Activities
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Purchase of Office Equipment (420) -
Increase in Contracts - (136,800)
Collected On Contracts - 102,500
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Net Cash Provided by Investing Activities (420) (34,300)
Cash Flows from Financing Activities
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Increase in Notes Receivables 14,000 -
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Net Cash Provided by Financing Activities 14,000 -
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Increase (Decrease) in Cash 63,802 9,364
Cash at Beginning of Year 50,528 148,566
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Cash at End of Year $ 114,330 $ 157,930
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Expense Disclosures
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Interest $ - $ -
Taxes - 37,436
See accompanying notes to financial statements
6
First Mortgage Corporation
Notes to Financial Statements
NOTE 1 - Corporate History and Purpose
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The Company was incorporated on March 1, 1977, under the laws of the State
of Utah and amended its articles of incorporation April 5, 1982. The
Company's purpose is to act as a Real Estate Mortgage Broker and to take
advantage of any legal business opportunity which appears to have
profitable potential for the Company.
NOTE 2 - Summary of Significant Accounting Policies
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1. Depreciation on assets is recorded using the straight-line method and
a 6 or 10 year life.
2. The Company uses the accrual method of accounting.
3. Revenues and expenses are recognized in the period in which the
activities occur.
4. The Company has had no noncash financing activities.
5. The Company considers all short term, highly liquid investments that
are readily convertible to known amounts, within ninety days as cash.
6. Estimates: The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to
make estimates and assumptions that affect the amounts reported in the
financial statements and accompanying notes. Actual results could
differ from those estimates.
NOTE 3 - Statement Preparation
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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, 2000 10-K report.
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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 six months period ending August 31, 2000, the Company collected
$152,250 from mortgage recovery activities and $9,903 from interest income.
Comparable figures for the six months of 1999 are $188,500 from mortgage
recovery income and $8,854 from interest income.
For the three months period ending August 31, 2000, mortgage recovery
revenues were $90,250 and interest earnings were $5,483. Comparable
figures for the three month period of 1999, are $58,500 from mortgage
revenues and $4,492 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 $162,163 in revenues in the six months period ending August
31, 2000. For the comparable six months period ending August 31 1999,
total revenues were $205,816.
Commissions expense for the six months period ending August 31, 2000, were
$61,600 and $70,400 for the six months period of 1999.
Administrative expenses for the six months period ending August 31, 2000,
were $19,232 and for the comparable period of 1999 were $24,366.
Net profit after provisions for income taxes were $81,321 for August 31,
2000, and $73,614 for August 31, 1999.
The Company's management anticipates that revenues for the next fiscal year
will be limited to interest earned on mortgage contracts.
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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.
Date: July 3, 2001 By:/S/ William S. Greaves
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William S. Greaves, President
(Principal Executive Officer)
(Principal Financial & Accounting Officer)
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