EX-99.1 5 flow-exx991_20131031xq2fy14.htm DEBT COVENANT COMPLIANCE FLOW-Ex-99.1_2013.10.31-Q2 FY14


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

Adjusted EBITDA:
(in 000s)
LTM (i)
 
Q3 FY13
 
Q4 FY13
 
Q1 FY14
 
Q2 FY14
Net Income
$
1,951

 
$
2,611

 
$
(1,905
)
 
$
(845
)
 
$
2,090

Add Back:
 
 
 
 
 
 
 
 
 
Depreciation and Amortization
6,307

 
1,546

 
1,534

 
1,592

 
1,635

Income Tax Provision (Benefit)
4,135

 
1,551

 
749

 
(121
)
 
1,956

Interest Charges
1,430

 
297

 
611

 
384

 
138

Non-Cash Charges (ii)
4,146

 
942

 
891

 
2,036

 
277

Adjusted EBITDA
$
17,969

 
$
6,947

 
$
1,880

 
$
3,046

 
$
6,096

I. Consolidated Leverage Ratio
 
 
 
 
 
 
 
 
 
A. Total Long-Term Obligations and Notes Payable (iii)
$
9,214

 
 
 
 
 
 
 
 
B. Adjusted EBITDA
$
17,969

 
 
 
 
 
 
 
 
C. Consolidated Leverage Ratio (Line I.A / Line I.B)
0.51

 
 
 
 
 
 
 
 
Maximum Permitted
2.75x to 1
 
 
 
 
 
 
 
 
II. Consolidated Fixed Charge Coverage Ratio
 
 
 
 
 
 
 
 
 
A. Adjusted EBITDA
 
 
 
 
 
 
 
 
 
1. Consolidated Net Income
$
1,951

 
 
 
 
 
 
 
 
2. Consolidated Interest Charges
$
1,430

 
 
 
 
 
 
 
 
3. Provision for income taxes
$
4,135

 
 
 
 
 
 
 
 
4. Depreciation expenses
$
5,726

 
 
 
 
 
 
 
 
5. Amortization expenses
$
581

 
 
 
 
 
 
 
 
6. Non-recurring non-cash reductions of Consolidated Net Loss
$
4,146

 
 
 
 
 
 
 
 
7. Adjusted EBITDA (Lines II.A.1 + 2 + 3 + 4 + 5 + 6)
$
17,969

 
 
 
 
 
 
 
 
B. Cash payments for taxes
$
1,518

 
 
 
 
 
 
 
 
C. Maintenance Capital Expenditures
$
2,000

 
 
 
 
 
 
 
 
D. Consolidated Interest Charges (except certain non-cash interest)
$
1,392

 
 
 
 
 
 
 
 
E. Current portion of other long term debt (iv)
$
29

 
 
 
 
 
 
 
 
F. Consolidated Fixed Charge Coverage Ratio ((Line II.A.7 - Line II.B - Line II.C) / (Line II.D + Line II.E)
10.2

 
 
 
 
 
 
 
 
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 $6.6 million
(iv) Represents current portion of other long-term debt as of October 31, 2013