EX-99.1 5 v55128exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
DEBT COVENANT COMPLIANCE
AS OF JANUARY 31, 2010
Consolidated Adjusted EBITDA:
                                         
(in 000s)   LTM(i)     Q4 FY09     Q1 FY10     Q2 FY10     Q3 FY10  
Net Loss
   $ (13,067 )   $ (4,471 )   $ (8,546 )   $ 697     $ (747 )
Add Back:
                                        
Depreciation and Amortization
     5,211       1,133       1,232       1,361       1,485  
Income Tax Provision (Benefit)
     (4,603 )     (1,950 )     (606 )     (923 )     (1,124 )
Interest Charges
     2,849       943       964       474       468  
Non-Cash Charges
     4,019       1,492       163       622       1,742  
Allowable Add backs Pursuant to Credit Facility Agreement, as amended
     10,054       4,336       5,698       71       (51 )
 
                              
Consolidated Adjusted EBITDA
   $ 4,463     $ 1,483     $ (1,095 )   $ 2,302     $ 1,773  
 
                              
I. Consolidated Leverage Ratio
                                        
A. Total Long-Term Obligations and Notes Payable (ii)
   $ 5,602                                  
B. Consolidated Adjusted EBITDA
   $ 4,463                                  
C. Consolidated Leverage Ratio (Line I.A ÷ Line I.B)
     1.26                                  
Maximum Permitted
   3.5x to 1                                
II. Liquidity Test
                                        
Book Value of Consolidated Accounts Receivable at 65%
   $ 23,958                                  
Book Value of Consolidated Inventory at 40%
   $ 8,812                                  
 
                                      
A.
   $ 32,770                                  
B. Total Long-Term Obligations and Notes Payable (ii)
   $ 5,602                                  
(Line II.A) must be greater than (Line II. B)
   Yes                                
 
                                      
III. Consolidated Fixed Charge Coverage Ratio (i)
                                        
A. Consolidated Adjusted EBITDA
                                        
1 Consolidated Net Income
   $ (13,067 )                                
2 Consolidated Interest Charges
   $ 2,849                                  
3 Provision for income taxes
   $ (4,603 )                                
4 Depreciation expenses
   $ 4,831                                  
5 Amortization expenses
   $ 380                                  
6 Non-recurring non-cash reductions of Consolidated Net Income
   $ 4,019                                  
7 Allowable Add backs Pursuant to Credit Facility Agreement, as amended
   $ 10,054                                  
8 Consolidated Adjusted EBITDA (Lines III.A.1 + 2 + 3 + 4 + 5 + 6 + 7)
   $ 4,463                                  
B. Cash payments for taxes
   $ 547                                  
C. Maintenance Capital Expenditures
   $ 2,000                                  
D. Consolidated Interest Charges (except non-cash interest)
   $ 974                                  
E. Current portion of other long term debt (iii)
   $ 54                                  
F. Consolidated Fixed Charge Coverage Ratio ((Line III.A.8 - Line III.B — Line III.C) / (Line III.D + Line III.E)
     1.9                                  
Minimum required
   1.2x to 1                                
Notes:
 
(i)   Last Twelve Months (Most Recent Four Fiscal Quarters)
 
(ii)   Includes letters of credit of $3.4 million and excludes subordinated debt
 
(iii)   Represents current portion of other long-term debt as of January 31, 2010