Note 6 - Notes Payable

12 Months Ended

Dec. 31, 2013

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

(6)     Notes Payable

Notes payable consisted of the following:

	2013		2012
	(In thousands)
Revolving credit note with U.S. Bank, maximum available $6.5 million subject to borrowing base, matures June 30, 2014	$	--	$	--
Note payable to U.S. Bank for $11.8 million, interest at a 3.12% fixed rate, 60 monthly principal and interest payments of $212,468 through April 2018		10,324		--
Notes payable to U.S. Bank, interest at a 3.79% fixed rate, monthly principal and interest payments of $201,294, with final balloon payment due July 31, 2013		--		12,436
Total notes payable		10,324		12,436
Less current portion		2,256		12,436
Note payable, net of current portion	$	8,068	$	--

The Company had two term notes, which were used to partially finance acquisitions in 2008 and 2010. Borrowings under the term notes bore interest at an annual rate of 3.79%. The Company refinanced these two term notes on May 9, 2013, and combined them into one new term note. The new term note is payable in 60 monthly installments of $212,468. Borrowings under the new term note bear interest at an annual rate of 3.12%.

The Company also has a revolving credit note that was renewed in May 2013 to extend the term to June 30, 2014. The Company may borrow, repay and re-borrow amounts under the revolving credit note from time to time until its maturity on June 30, 2014. The maximum aggregate amount available under the revolving credit note of $6.5 million is subject to a borrowing base equal to 75.0% of the Company’s eligible accounts receivable. Borrowings under the renewed revolving credit note bear interest at a variable annual rate, with three rate options at the discretion of management as follows: (1) 2.5% plus the daily reset one-month LIBOR rate or (2) 2.2% plus the one-, two-, three-, six- or twelve-month London Interbank Offered Rate (“LIBOR”) rate, or (3) the bank’s one-, two-, three-, six- or twelve-month Money Market Loan Rate. The rate at December 31, 2013 was 2.67%. As of December 31, 2013, the revolving credit note did not have a balance. According to borrowing base requirements, the Company had the capacity to borrow $6.5 million as of December 31, 2013. 

The term note and revolving credit note are secured by certain of the Company’s assets, including the Company’s land, building, accounts receivable and intangible assets. The term note and the revolving credit note contain various restrictions and covenants applicable to the Company, including requirements that the Company maintain certain financial ratios at prescribed levels and restrictions on the ability of the Company to consolidate or merge, create liens, incur additional indebtedness or dispose of assets. As of December 31, 2013, the Company was in compliance with the financial covenants.

The remaining note payable maturities for each year subsequent to December 31, 2013, are as follows:

	Total Payments		2014		2015		2016		2017		2018
	(In thousands)
Notes payable	$	10,324	$	2,256	$	2,328	$	2,402	$	2,480	$	858