EX-99.1 5 flow-exx991_20120131xq3.htm DEBT COVENANT FLOW-Ex-99.1_2012.01.31-Q3


Exhibit 99.1
DEBT COVENANT COMPLIANCE
AS OF JANUARY 31, 2012

Adjusted EBITDA:
(in 000s)
LTM (i)
 
Q4 FY11
 
Q1 FY12
 
Q2 FY12
 
Q3 FY12
Net Income
$
7,194

 
$
388

 
$
711

 
$
2,779

 
$
3,316

Add Back:
 
 
 
 
 
 
 
 
 
Depreciation and Amortization
6,319

 
1,596

 
1,572

 
1,579

 
1,572

Income Tax Provision (Benefit)
4,248

 
(31
)
 
100

 
2,138

 
2,041

Interest Charges
1,445

 
508

 
311

 
309

 
317

Non-Cash Charges (ii)
2,392

 
300

 
666

 
558

 
868

Adjusted EBITDA
$
21,598

 
$
2,761

 
$
3,360

 
$
7,363

 
$
8,114

I. Consolidated Leverage Ratio
 
 
 
 
 
 
 
 
 
A. Total Long-Term Obligations and Notes Payable (iii)
$
2,888

 
 
 
 
 
 
 
 
B. Adjusted EBITDA
$
21,598

 
 
 
 
 
 
 
 
C. Consolidated Leverage Ratio (Line I.A / Line I.B)
0.13

 
 
 
 
 
 
 
 
Maximum Permitted
2.75x to 1
 
 
 
 
 
 
 
 
II. Consolidated Fixed Charge Coverage Ratio (i)
 
 
 
 
 
 
 
 
 
A. Adjusted EBITDA
 
 
 
 
 
 
 
 
 
1. Consolidated Net Income
$
7,194

 
 
 
 
 
 
 
 
2. Consolidated Interest Charges
$
1,445

 
 
 
 
 
 
 
 
3. Provision for income taxes
$
4,248

 
 
 
 
 
 
 
 
4. Depreciation expenses
$
5,811

 
 
 
 
 
 
 
 
5. Amortization expenses
$
508

 
 
 
 
 
 
 
 
6. Non-recurring non-cash reductions of Consolidated Net Loss
$
2,392

 
 
 
 
 
 
 
 
7. Adjusted EBITDA (Lines II.A.1 + 2 + 3 + 4 + 5 + 6)
$
21,598

 
 
 
 
 
 
 
 
B. Cash payments for taxes
$
1,062

 
 
 
 
 
 
 
 
C. Maintenance Capital Expenditures
$
2,000

 
 
 
 
 
 
 
 
D. Consolidated Interest Charges (except non-cash interest)
$
515

 
 
 
 
 
 
 
 
E. Current portion of other long term debt (iv)
$
26

 
 
 
 
 
 
 
 
F. Consolidated Fixed Charge Coverage Ratio ((Line II.A.7 - Line II.B - Line II.C) / (Line II.D + Line II.E)
34.3

 
 
 
 
 
 
 
 
Minimum required
1.75x to 1
 
 
 
 
 
 
 
 
____________
Notes:
(i) Last Twelve Months (Most Recent Four Fiscal Quarters)
(ii) Allowable add backs pursuant to Credit Facility Agreement
(iii)
Includes letters of credit of $2.8 million and excludes subordinated debt
(iv) Represents current portion of other long-term debt as of January 31, 2012