Note 7 - Debt

12 Months Ended

Jun. 30, 2014

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

7. DEBT

Long-term debt is comprised of the following at June 30 (in thousands):

	2014		2013
Bank credit agreements	$	45,000	$	50,000
Other		56		72
Total long-term debt	$	45,056	$	50,072

Long-term debt is due as follows (in thousands):

2015	$	18
2016		15
2017		45,015
2018		8
2019		-
Thereafter		-

Bank Credit Agreements

On January 5, 2012, the Company entered into a five-year $225 million unsecured Revolving Credit Facility (“Credit Agreement”, or “facility”), which can be increased by the Company by an amount of up to $100 million, in accordance with specified conditions contained in the agreement. The facility also includes a $10 million sub-facility for swing line loans and a $30 million sub-facility for letters of credit. Interest is payable on borrowings at either a LIBOR or base rate benchmark rate plus an applicable margin, which will fluctuate based on financial performance. The Credit Agreement requires a ratio of funded debt to EBITDA (as defined in the Credit Agreement) of no greater than 3.5:1, an interest coverage ratio of no less than 3:1, as well as customary affirmative and negative covenants and events of default. The Credit Agreement also includes certain requirements related to acquisitions and dispositions. Borrowings under the Credit Agreement are guaranteed by the Company’s domestic subsidiaries and are unsecured. The Company intends to use this Credit Agreement to fund potential acquisitions, to support organic growth initiatives, working capital needs, and for general corporate purposes.

As of June 30, 2014, the Company had the ability to borrow $168.6 million under this facility. The carrying value of the current borrowings under the facility approximated fair value.

The facility expires in January 2017 and contains customary representations, warranties and restrictive covenants, as well as specific financial covenants. The terms of the Credit Agreement limited the ability of the Company to pay dividends to shareholders unless the Company is in compliance with the specific financial covenants under the facility. The Company’s current financial covenants under the facility are as follows:

Interest Coverage Ratio - The Company is required to maintain a ratio of Earnings Before Interest and Taxes, as Adjusted (“Adjusted EBIT per the Credit Agreement”), to interest expense for the trailing twelve months of at least 3:1. Adjusted EBIT per the Credit Agreement specifically excludes extraordinary and certain other defined items such as non-cash restructuring and acquisition-related charges up to $2.0 million, and goodwill impairment. At June 30, 2014, the Company’s Interest Coverage Ratio was 35.58:1.

Leverage Ratio - The Company’s ratio of funded debt to trailing twelve month Adjusted EBITDA per the credit agreement, calculated as Adjusted EBIT per the Credit Agreement plus Depreciation and Amortization, may not exceed 3.5:1. At June 30, 2014, the Company’s Leverage Ratio was 0.59:1.

Other Long-Term Borrowings

At June 30, 2014, and 2013, the Company had standby letters of credit outstanding, primarily for insurance purposes, of $11.3 million and $10.7 million, respectively.