Note 9 - Line of Credit |
9 Months Ended | ||
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Sep. 30, 2017 | |||
Notes to Financial Statements | |||
Debt Disclosure [Text Block] |
The Company and its subsidiaries are party to a loan agreement with Citizens Bank of Pennsylvania which provides for a $35 million revolving credit facility and includes a sub-limit of $5 million for letters of credit (the “Revolving Credit Facility”) and expires December 11, 2019. The Revolving Credit Facility has been amended several times, most recently pursuant to the Seventh Amendment entered into on March 8, 2017 when the Company was granted a waiver that expressly excludes $1.3 million of certain legal settlement and office closure expenses in the calculation of the Company’s loan covenants. Borrowings under the Revolving Credit Facility bear interest at one of two alternative rates, as selected by the Company at each incremental borrowing. These alternatives are: (i) LIBOR (London Interbank Offered Rate), plus applicable margin, typically borrowed in fixed 30 -day increments or (ii) the agent bank’s prime rate generally borrowed over shorter durations. The Company also pays unused line fees based on the amount of the Revolving Credit Facility that is not drawn. Unused line fees are recorded as interest expense. The effective interest rate, including unused line fees, for the thirty-nine week period ended September 30, 2017 was 2.6%. All borrowings under the Revolving Credit Facility are collateralized by all of the assets of the Company and its subsidiaries and a pledge of the stock of its subsidiaries. The Revolving Credit Facility also contains various financial and non-financial covenants, such as a covenant that restricts on the Company’s ability to borrow in order to pay dividends. As of September 30, 2017, the Company was in compliance with all covenants contained in its Revolving Credit Facility.Borrowings under the line of credit as of September 30, 2017 and December 31, 2016 were $9.5 million and $14.3 million, respectively. At September 30, 2017 and December 31, 2016 there were letters of credit outstanding for $0.8 September 30, 2017, the Company had availability for additional borrowings under the Revolving Credit Facility of $24.7 million. |