Note 5 - Notes Payable

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Debt Disclosure [Text Block]

( 5 ) NOTES PAYABLE

The Company’s long-term debt consists of the following:  

	March 31, 2019			December 31, 2018
	(In thousands)
Term Loans	$	37,079		$	37,996
Less: current portion		(3,714	)		(3,667	)
Less: unamortized debt issuance costs		(142	)		(153	)
Notes payable, net of current portion	$	33,223		$	34,176

The Company’s credit agreement (the “Credit Agreement”) with First National Bank of Omaha, a national banking association includes (i) a

$15,000,000

revolving credit facility (the “Line of Credit”), (ii) a

$40,000,000

term loan (the “Term Loan”) and (iii) a

$15,000,000

delayed draw-dawn term facility (the “Delayed Draw Term Loan”). The Delayed Draw Term Loan

may

be used to fund any permitted future business acquisitions or repurchasing of the Company’s Common Stock and the Line of Credit will be used to fund ongoing working capital needs and other general corporate purposes.

The Term Loan is payable in monthly installments of

$462,988

through

April 2020

and

$526,362

thereafter, with a balloon payment due at maturity in

April 2023.

The Term Loan bears interest at a fixed rate of

5%.

Borrowings under the Line of Credit and the Delayed Draw Term Loan, if any, bear interest at a floating rate equal to the

30

-day London Interbank Offered Rate plus

225

basis points (

4.73%

at

March 31, 2019).

Interest on the Line of Credit accrues and is payable monthly. Principal amounts outstanding under the Line of Credit are due and payable in full at maturity, in

April 2021.

As of

March 31, 2019,

borrowings outstanding under the Line of Credit were

$1.8

million and the Company had the availability to borrow an additional

$13.2

million. There were

no

borrowings outstanding under the Line of Credit at

December 31, 2018.

The weighted average interest rate on borrowings on the Line of Credit for the

three

-month period ended

March 31, 2019

was

4.75%.

There have been

no

borrowings on the Delayed Draw Term Loan since origination.

The Credit Agreement is collateralized by substantially all of the Company’s assets and contains customary representations, warranties, affirmative and negative covenants (including financial covenants) and events of default. The negative covenants include, among other things, restrictions regarding the incurrence of indebtedness and liens, repurchases of the Company’s Common Stock and acquisitions, subject in each case to certain exceptions. The Credit Agreement also contains certain financial covenants with respect to a minimum fixed charge coverage ratio of

1.10x

and a maximum cash flow leverage ratio of

3.00x

or less. As of

March 31, 2019,

the Company was in compliance with its financial covenants.