EX-99.1 5 flow-exx991_20130731xq1fy14.htm DEBT COVENANT COMPLIANCE FLOW-Ex-99.1_2013.07.31-Q1 FY14


Exhibit 99.1
DEBT COVENANT COMPLIANCE
As of July 31, 2013
(Amounts in thousands)
(Unaudited)

Adjusted EBITDA:
(in 000s)
LTM (i)
 
Q2 FY13
 
Q3 FY13
 
Q4 FY13
 
Q1 FY14
Net Income
$
1,971

 
$
2,110

 
$
2,611

 
$
(1,905
)
 
$
(845
)
Add Back:
 
 
 
 
 
 
 
 
 
Depreciation and Amortization
6,085

 
1,413

 
1,546

 
1,534

 
1,592

Income Tax Provision (Benefit)
3,531

 
1,352

 
1,551

 
749

 
(121
)
Interest Charges
1,617

 
325

 
297

 
611

 
384

Non-Cash Charges (ii)
4,637

 
768

 
942

 
891

 
2,036

Adjusted EBITDA
$
17,841

 
$
5,968

 
$
6,947

 
$
1,880

 
$
3,046

I. Consolidated Leverage Ratio
 
 
 
 
 
 
 
 
 
A. Total Long-Term Obligations and Notes Payable (iii)
$
20,411

 
 
 
 
 
 
 
 
B. Adjusted EBITDA
$
17,841

 
 
 
 
 
 
 
 
C. Consolidated Leverage Ratio (Line I.A / Line I.B)
1.14

 
 
 
 
 
 
 
 
Maximum Permitted
2.75x to 1
 
 
 
 
 
 
 
 
II. Consolidated Fixed Charge Coverage Ratio
 
 
 
 
 
 
 
 
 
A. Adjusted EBITDA
 
 
 
 
 
 
 
 
 
1. Consolidated Net Income
$
1,971

 
 
 
 
 
 
 
 
2. Consolidated Interest Charges
$
1,617

 
 
 
 
 
 
 
 
3. Provision for income taxes
$
3,531

 
 
 
 
 
 
 
 
4. Depreciation expenses
$
5,516

 
 
 
 
 
 
 
 
5. Amortization expenses
$
569

 
 
 
 
 
 
 
 
6. Non-recurring non-cash reductions of Consolidated Net Loss
$
4,637

 
 
 
 
 
 
 
 
7. Adjusted EBITDA (Lines II.A.1 + 2 + 3 + 4 + 5 + 6)
$
17,841

 
 
 
 
 
 
 
 
B. Cash payments for taxes
$
1,537

 
 
 
 
 
 
 
 
C. Maintenance Capital Expenditures
$
2,000

 
 
 
 
 
 
 
 
D. Consolidated Interest Charges (except certain non-cash interest)
$
1,579

 
 
 
 
 
 
 
 
E. Current portion of other long term debt (iv)
$
31

 
 
 
 
 
 
 
 
F. Consolidated Fixed Charge Coverage Ratio ((Line II.A.7 - Line II.B - Line II.C) / (Line II.D + Line II.E)
8.9

 
 
 
 
 
 
 
 
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 $9.6 million and subordinated debt
(iv) Represents current portion of other long-term debt as of July 31, 2013 and excludes subordinated debt