COMMITMENTS AND CONTINGENCIES

12 Months Ended

May 31, 2013

Commitments And Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 11 – COMMITMENTS AND CONTINGENCIES

Rental expense was $1,438,402 in 2013 and $1,298,242 in 2012.

The Company has entered into various operating lease agreements to replace aging route vans and transport trucks.  The current annual obligation under this agreement is $826,582.  Future minimum lease commitments for operating leases at May 31, 2013 were as follows:

2014	826,582
2015	480,301
2016	185,058
2017	70,075
2018	-

The Company has a letter of credit in the amount of $1,900,000 outstanding at May 31, 2013 and June 1, 2012.  The letter of credit supports the Company’s commercial self-insurance program.  The Company pays a commitment fee of 0.75% to maintain the letters of credit.

The Company has entered into various other short term purchase commitments with suppliers for raw materials in the normal course of business.

The Company is subject to routine litigation and claims incidental to its business.  In the opinion of management, such routine litigation and claims should not have a material adverse effect upon the Company’s consolidated financial statements taken as a whole.