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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 10-K/A
Amendment No. 3
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Annual Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the Fiscal Year Ended January 31, 1997
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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
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Securities Registered Pursuant to Section 12(g)
of the Securities Exchange Act of 1934:
Common Stock, $.001 par value
------------------------------
The undersigned registrant hereby amends the following items, financial
statements, exhibits or other portions of its Annual Report on Form 10-K for
the fiscal year ended January 31, 1997:
(List all such items, financial statements, exhibits or other portions
amended)
Item 6. Selected Financial Data.
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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.
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<TABLE>
<CAPTION>
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:
<S> <C> <C> <C> <C> <C>
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
</TABLE>
<TABLE>
<CAPTION>
MARCH 31, JANUARY 31,
-------------------------------- ----------------------
1993 1994 1995 1996(1) 1997
------ ----- -------- -------- ------
<S> <C> <C> <C> <C> <C>
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
</TABLE>
- - -----------
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(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)
<TABLE>
<CAPTION>
First Second Third Fourth
Quarter Quarter Quarter Quarter
-------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Year ended January 31, 1997
Maxim net sales $33,655 $36,438 $38,110 $38,838
Image net sales 39,587 39,643 44,029 39,421
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Total Company net sales 73,242 76,081 82,139 78,259
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Maxim gross profit 13,643 13,320 13,991 13,426
Image gross profit 6,641 7,088 9,845 9,477
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Total Company gross profit 20,284 20,408 23,836 22,903
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Maxim net earnings (loss) 1,007 (92) (2,171) 521
Image net earnings (loss) 145 100 1,059 1,576
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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 42,378 12,981
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Total Company net sales 63,554 69,186 73,742 21,069
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Maxim gross profit 11,974 13,681 13,181 1,646
Image gross profit 8,722 6,965 7,350 2,309
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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
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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)
-------------------------------------------------------------
</TABLE>
(a) Includes goodwill impairment charge of $6.6 million (pre-tax)
(b) Includes merger related costs of $4.7 million (pre-tax)
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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.
3) to be signed on its behalf by the undersigned, in the City of Kennesaw,
State of Georgia on October 15, 1997.
THE MAXIM GROUP, INC.
By: /s/ A. J. Nassar
-------------------------------------
A.J. Nassar
President and Chief Executive Officer
