1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------------- FORM 10-K/A Amendment No. 1 ---------------- Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Fiscal Year Ended January 31, 1997 ------------------------------ Commission File No. 1-13099 THE MAXIM GROUP, INC. A Delaware Corporation (IRS Employer Identification No. 58-2060334) 210 TownPark Drive Kennesaw, Georgia 30144 (770) 590-9369 Securities Registered Pursuant to Section 12(b) of the Securities Exchange Act of 1934: Common Stock, $.001 par value - New York Stock Exchange ------------------------------------------------------- Securities Registered Pursuant to Section 12(g) of the Securities Exchange Act of 1934: Common Stock, $.001 par value ------------------------------ 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. Yes X No --- --- Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [X] The aggregate market value of the common stock of the registrant held by nonaffiliates of the registrant (12,273,806 shares) on April 23, 1997 was approximately $138,000,000 based on the closing price of the registrant's common stock as reported on the Nasdaq National Market on April 23, 1997. For the purposes of this response, officers, directors and holders of 5% or more of the registrant's common stock are considered the affiliates of the registrant at that date. The number of shares outstanding of the registrant's common stock, as of April 23, 1997: 16,133,644 shares of $.001 par value common stock. DOCUMENTS INCORPORATED BY REFERENCE None. 2 ITEM 6. SELECTED FINANCIAL DATA. The following table sets forth selected consolidated financial data of the Company for the periods indicated, which data has been derived from the consolidated financial statements of the Company. The consolidated financial statements of the Company as of January 31, 1997 and 1996, for the year ended January 31, 1997 and for the ten month period ended January 31, 1996 have been audited by Arthur Andersen LLP, independent public accountants. The consolidated financial statements of the Company as of March 31, 1995 and for each of the years in the two-year period ended March 31, 1995 have been audited by KPMG Peat Marwick LLP, independent auditors. The selected financial data for the year ended March 31, 1993 are derived from the unaudited consolidated financial statements of the Company. The unaudited consolidated financial statements include all adjustments, consisting of normal recurring accruals, which the Company considers necessary for a fair presentation of the consolidated financial condition and results of operations for this period. The selected consolidated financial data should be read in conjunction with the consolidated financial statements, related notes and other financial information included herein. Financial data gives retroactive effect to the merger of the Company and GCO on September 28, 1994 and the merger of the Company and Image on August 30, 1996, which transactions were accounted for as a pooling-of-interests. 3 TEN MONTHS FISCAL YEAR ENDED MARCH 31, ENDED ------------------------------ JANUARY 31 FISCAL YEAR ENDED 1993 1994 1995 1996(1) JANUARY 31, 1997 ------- ------- ------ -------- ----------------- STATEMENT OF EARNINGS DATA: Revenues: Sales of floorcovering products ........... $88,676 $106,237 $174,935 $186,568 $250,968 Fees from franchise services .............. 5,113 9,688 13,876 13,432 26,336 Fiber and PET sales ....................... 4,583 5,297 12,886 24,072 28,853 Other ..................................... 479 1,369 1,644 3,479 3,564 ------- ------- -------- -------- -------- Total revenues ........................ 98,851 122,591 203,341 227,551 309,721 Cost of sales ................................. 71,570 85,847 139,521 161,723 222,290 ------- ------- -------- -------- -------- Gross profit .......................... 27,281 36,744 63,820 65,828 87,431 Selling, general, and administrative expenses . 17,417 23,669 46,870 59,197 72,366 Replacement stock option charge ............... -- 10,388(2) -- -- -- Goodwill impairment charge .................... -- -- -- 6,569(3) -- Merger-related costs .......................... -- -- 500(4) -- 4,900(5) Interest expense, net ......................... 3,824 1,579 1,442 4,280 6,393 Other expense (income) ........................ 98 263 (421) (78) (302) ------- ------- -------- -------- -------- Earnings (loss) before income taxes and extraordinary income .................. 5,942 845 15,429 (4,140) 4,074 Income tax expense ............................ 947 376 5,787 105 1,929 ------- ------- -------- -------- -------- Net earnings (loss) before extraordinary income ...................... 4,995 469 9,642 (4,245) 2,145 Extraordinary income .......................... -- 190 -- -- -- ------- ------- -------- -------- -------- Net earnings (loss) ........................... $ 4,995 $ 659 $ 9,642 $ (4,245) $ 2,145 ======= ======= ======== ======== ======== Net earnings (loss) per common share(6) ....... $ 0.56 $ 0.06 $ 0.72 $ (0.32) $ 0.15 ======= ======= ======== ======== ======== Weighted average shares outstanding(6) ........ 8,903 11,161 13,301 13,301 13,937 ======= ======= ======== ======== ======== SELECTED OPERATING DATA: Revenues attributable to: CarpetMAX operations ...................... $ 3,766 $10,051 $ 63,933 $ 85,278 $125,585 GCO operations ............................ 5,605 9,283 12,158 14,012 21,455 Image operations .......................... 89,480 103,257 127,250 128,261 162,681 End of period: Company-owned stores ...................... 8 8 51 59 57 Franchise territories ..................... 148 233 325 357 368 MARCH 31, JANUARY 31, -------------------------------- ---------------------- 1993 1994 1995 1996(1) 1997 ------ ----- -------- -------- ------ BALANCE SHEET DATA: Working capital ........................ $12,297 $26,489 $ 44,844 $ 61,456 $ 58,287 Total assets ........................... 63,809 95,281 162,473 202,085 219,673 Long-term debt and capital leases ...... 29,908 21,083 56,035 92,710 93,220 Stockholders' equity ................... 30,960 50,053 71,424 72,150 76,154 - ----------- 4 (1) On January 31, 1996, the Company changed its fiscal year end from March 31 to January 31. (2) Image granted replacement stock options on August 10, 1993, in replacement of a like number of unvested stock appreciation units and vested and unvested stock options. As a result of this exchange, Image recognized a non- cash, non-recurring charge of $10.4 million in its fiscal year ending March 31, 1994. See Note 13 of "Notes to Consolidated Financial Statements." (3) Certain of the Company's acquired stores have not performed as anticipated at the time of purchase. The results from these operations through the end of fiscal 1996 led management to assess the realizability of the goodwill recorded in connection with these acquisitions, the result of which indicated a permanent impairment of goodwill necessitating a write-off totaling $6.6 million. See "Management's Discussion and Analysis of Financial Condition and Results of Operations -- Ten Month Period Ended January 31, 1996 Compared to Year Ended March 31, 1995 -- Goodwill Impairment" and Note 2 of "Notes to Consolidated Financial Statements." (4) Represents a non-recurring charge of $500,000 related to the merger with GCO, Inc. (5) Represents a non-recurring charge of $4.9 million related to the mergers with Image and Bailey & Roberts. (6) Earnings per share is computed on a fully diluted basis as described in Note 1 to the Consolidated Financial Statements of the Company. Quarterly Financial Data (unaudited) First Second Third Fourth Quarter Quarter Quarter Quarter ------------------------------------------------------------- (in thousands) Year ended January 31, 1997 Maxim net sales $33,655 $36,438 $38,110 $38,438 Image net sales 39,587 39,643 44,029 38,821 ------------------------------------------------------------- Total Company net sales 73,242 76,081 82,139 77,259 ------------------------------------------------------------- Maxim gross profit 13,643 13,320 13,991 13,426 Image gross profit 6,641 7,088 9,845 9,477 ------------------------------------------------------------- Total Company gross profit 20,284 20,408 23,836 22,903 ------------------------------------------------------------- Maxim net earnings (loss) 1,007 (92) (2,171) 521 Image net earnings (loss) 145 100 1,059 1,576 ------------------------------------------------------------- Total Company net earnings (loss) 1,152 8 (1,112)(b) 2,097 ------------------------------------------------------------- Maxim net earnings (loss) per share 0.07 (0.01) (0.16) 0.04 Image net earnings (loss) per share 0.01 0.01 0.08 0.11 ------------------------------------------------------------- Total Company net earnings (loss) per share 0.08 0.00 (0.08) 0.15 ------------------------------------------------------------- Ten months ended January 31, 1996 Maxim net sales $27,989 $31,849 $31,364 $ 8,088 Image net sales 35,565 37,337 50,775 12,981 ------------------------------------------------------------- Total Company net sales 63,554 69,186 82,139 21,069 ------------------------------------------------------------- Maxim gross profit 11,974 13,681 13,181 1,646 Image gross profit 8,722 6,965 7,350 2,309 ------------------------------------------------------------- Total Company gross profit 20,696 20,646 20,531 3,955 ------------------------------------------------------------- Maxim net earnings (loss) 919 1,212 418 (9,823) Image net earnings 1,676 655 661 37 ------------------------------------------------------------- Total Company net earnings (loss) 2,595 1,867 1,079 (9,786)(a) ------------------------------------------------------------- Maxim net earnings (loss) per share 0.07 0.09 0.03 (0.73) Image net earnings per share 0.12 0.05 0.05 0.00 ------------------------------------------------------------- Total Company net earnings (loss) per share 0.19 0.14 0.08 (0.73) ------------------------------------------------------------- (a) Includes goodwill impairment charge of $6.6 million (pre-tax) (b) Includes merger related costs of $4.7 million (pre-tax) 5 SIGNATURES In accordance with the requirements of Section 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Report (Amendment No. 1) to be signed on its behalf by the undersigned, in the City of Kennesaw, State of Georgia on October 9, 1997. THE MAXIM GROUP, INC. By: /s/ A. J. Nassar ------------------------------------- A.J. Nassar President and Chief Executive Officer