XML 19 R10.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Debt with Commercial Bank
6 Months Ended
Jun. 30, 2011
Debt with Commercial Bank [Abstract]  
Debt Disclosure [Text Block]
Debt with Commercial Bank


On April 20, 2011 the Company entered into a seventh amendment to a credit agreement (the “Seventh Amendment”) with Bank of America, N.A. ("BOA"), as administrative agent, which materially amended the initial credit agreement dated February 12, 2010.  The Seventh Amendment increased the existing revolving credit facility from $25 million to $35 million with its term ending on April 20, 2014, and the $10 million secured term loan was increased to $20 million and now amortizes over a three year period with quarterly principal and interest payments that commenced on June 30, 2011 and a final payment of all remaining outstanding principal and accrued interest due on April 20, 2014. The entire credit facility has a variable interest rate currently set at LIBOR plus 1.50%. The revolving credit facility is used by the Company to fund working capital requirements primarily in support of current operations, organic growth, and accretive business acquisitions. The underlying financing agreement contains financial covenants regarding the Company's annualized EBITDA, fixed charge coverage ratio, and leverage ratio, as well as certain restrictive covenants pertaining to such matters as the incurrence of new debt, the aggregate amount of repurchases of the Company's equity shares, and the consummation of new business acquisitions. The Company currently is in compliance with all such financial and restrictive covenants, and there have been no violations thereof or in the event of noncompliance, appropriate waivers having been obtained.
At June 30, 2011, the outstanding balance on the revolving line of credit was $8.75 million and the facility carried an interest rate of 1.73%. This balance is included in the long-term liabilities section of the Condensed Consolidated Balance Sheets. During the six month period ending June 30, 2011 the average and maximum outstanding balance on the revolving line of credit was $23.3 million and $34.3 million, respectively.
At June 30, 2011, the outstanding balance on the term loan was $18.33 million of which $6.67 million is due within the next twelve months. This term loan also carried an interest rate of 1.73%. During the six months ended June 30, 2011 payments in the aggregate amount of $2.92 million were made against the term loan. The current and long-term portions of the term loan are included in the respective current and long-term sections of the Condensed Consolidated Balance Sheets.