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Note 7 - Revolving Lines of Credit and Long-Term Debt
12 Months Ended
Jun. 30, 2014
Disclosure Text Block [Abstract]  
Long-term Debt [Text Block]

NOTE 7 — REVOLVING LINES OF CREDIT AND LONG-TERM DEBT


In April 2014, the Company renewed its unsecured revolving credit line placing both the $30 million unsecured revolving line of credit for its U.S. operations and the $5 million unsecured revolving line of credit for its Canadian operations under one bank. The lines of credit expire in the third quarter of fiscal 2017. Interest on the revolving line of credit is charged based upon an increment over the LIBOR rate as periodically determined, or at the bank’s base lending rate, at the Company’s option.  The increment over the LIBOR borrowing rate, as periodically determined, fluctuates between 150 and 190 basis points depending upon the ratio of indebtedness to earnings before interest, taxes, depreciation and amortization (“EBITDA”), as defined in the credit facility.  The fee on the unused balance of both the $30 million and $5 million committed lines of credit is 15 basis points.  Under the terms of this credit facility, the Company has agreed to a negative pledge of assets and is required to comply with financial covenants that limit the amount of debt obligations, require a minimum amount of tangible net worth, and limit the ratio of indebtedness to EBITDA. There are no borrowings against either line of credit as of June 30, 2014.


The Company is in compliance with all of its loan covenants as of June 30, 2014.