10-Q 1 fmc801q.txt QUARTERLY REPORT AT AUGUST 31, 2000 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 ---------------------------- (Exact name of registrant as specified in its charter) Utah 87-03202209 ------------------------------- ---------------------- (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 -------------------------------------------------------------- (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 June 12, 2001. 51,101,680 Common Stock (Par Value $.001) ------------------------------------------- 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

Continued 3 First Mortgage Corporation Balance Sheets August 31, 2000 & February 29, 2000

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

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

See accompanying notes to financial statements 6 First Mortgage Corporation Notes to Financial Statements NOTE 1 - Corporate History and Purpose -------------------------------------- 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 --------------------------------------------------- 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 ------------------------------ 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. 7 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 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. 8 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 9 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 ------------------------------------------ William S. Greaves, President (Principal Executive Officer) (Principal Financial & Accounting Officer) 10

FIRST MORTGAGE CORP /UT/ 10-Q