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Credit Facility
12 Months Ended
Sep. 30, 2016
Credit Facility [Abstract]  
Credit Facility

10.Credit Facility



On August 2, 2013, the Company entered into an Amended and Restated Credit Agreement (the “Credit Agreement”) with its group of lenders that provided, among other things, the extension of the expiration date from November 14, 2016 to August 2, 2018 and the increase of the accordion feature from $25,000 to $50,000.



In addition, the covenants for minimum net worth were deleted from the Credit Agreement. The leverage ratio covenants changed to a maximum 3.50 to 1.00 for the period of September 30, 2013 through June 30, 2015, and to a maximum 3.25 to 1.00 for the periods September 30, 2015 and thereafter. The fixed charge ratio covenants changed to a minimum 1.10 to 1.00 for the period of September 30, 2013 through June 30, 2015, and to a minimum 1.15 to 1.00 for the periods September 30, 2015 and thereafter. The amended terms also provide for an interest rate equal to LIBOR plus a margin of between 1.25% and 2.50% and for the base rate a margin of between 0.25% and 1.50%.



On June 30, 2014, the Company and its subsidiaries GPS and IZI (collectively, the “Borrowers”), entered into a First Amendment to Amended and Restated Credit Agreement (the “Amendment”) with BMO Harris Bank N.A., as administrative agent (the “Administrative Agent”), and the lenders that are party thereto (collectively, the “Lenders”). The Amendment amended, among other things, (i) the definition of Capital Expenditures and EBITDA and (ii) kept the fixed charge coverage ratio covenant and the leverage ratio covenant constant (1.10 to 1.00 and 3.50 to 1.00, respectively) through the remainder of the term of the Credit Agreement. In connection with the Amendment, the Company paid certain amendment fees to the Lenders and certain other fees and expenses to the Administrative Agent.



On December 18, 2014, the Borrowers entered into a Consent and Amendment to the Credit Agreement (the “Consent”) with the Administrative Agent and the Lenders. The Company and the Lenders and the Administrative Agent agreed to consent, on a one time basis only, to a delay in the delivery of audited financial statements and related deliveries for fiscal 2014. The Company was required to provide its annual audited financial statements and related deliveries for fiscal 2014 only within 120 days after the end of fiscal 2014. The Company also was required to provide unaudited financial statements and related deliveries for fiscal 2014 within 90 days after the end of fiscal 2014. The Company paid a non-refundable consent fee to the Lenders in connection with the Consent.



On January 28, 2015, the Borrowers, entered into a second Consent and Amendment to the Credit Agreement (the “Second Consent”) with the Administrative Agent and the Lenders. The Company and the Lenders and the Administrative Agent agreed to consent, on a one time basis only, to a delay in the delivery of audited financial statements and related deliveries for fiscal 2014, whereby the Company was required to provide its annual audited financial statements and related deliveries for fiscal 2014 no later than February 11, 2015. The Company complied with the terms and conditions of the Second Consent.



Borrowings under the credit agreement are classified as long-term debt. The Company repaid $41,285,  $30,500 and $43,000 of the borrowings under the credit facility for the fiscal years ended September 30, 2016, 2015 and 2014, respectively. The balance outstanding under the Company’s credit agreement was $109,100 and $133,385 as of September 30, 2016 and 2015, respectively. Interest expense on the borrowings was $3,852,  $3,833 and $3,968 for the fiscal years ended September 30, 2016, 2015 and 2014, respectively. The weighted average interest rate for the base and LIBOR rate was 2.9%, 2.7% and 2.6% for fiscal 2016, 2015 and 2014, respectively. The applicable interest rate for the base and LIBOR rate separately was 4.75% and 2.77% per annum at September 30, 2016 and 4.75% and 2.69% per annum at September 30, 2015.



As of September 30, 2016, the Company had $65.9 million of unused availability under its $175.0 million credit facility and was in compliance with all covenants.  In December 2016, the Company notified its lenders that it is voluntarily reducing its credit facility from $175.0 million to $140.0 million due to the significant unused availability.