XML 42 R14.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Long-Term Debt Obligations | 3 Months Ended
--- | ---
Mar. 31, 2013
Long-Term Debt Obligations |
Long-Term Debt Obligations | 7. Long-Term Debt Obligations Long-term debt obligations consist of the following (in thousands):
|  | March 31, 2013 |  | December 31, 2012 |
--- | --- | --- | --- | --- | ---
Revolving credit facility |  | $ | — |  | $ | — |
Other debt |  |  | 2,400 |  |  | 2,400 |
Notes to former owners |  |  | 5,000 |  |  | 5,000 |
Total debt |  |  | 7,400 |  |  | 7,400 |
Less—current portion |  |  | (300 | ) |  | (300 | )
Total long-term portion of debt |  | $ | 7,100 |  | $ | 7,100 |
Revolving Credit Facility On September 23, 2011, we amended our $125.0 million senior credit facility (the "Facility") provided by a syndicate of banks. The Facility, which is available for borrowings and letters of credit, expires in September 2016 and is secured by the capital stock of our current and future subsidiaries. As of March 31, 2013, we had no outstanding borrowings, $53.2 million in letters of credit outstanding and $71.8 million of credit available. There are two interest rate options for borrowings under the Facility, the Base Rate Loan Option and the Eurodollar Rate Loan Option. These rates are floating rates determined by the broad financial markets, meaning they can and do move up and down from time to time. Additional margins are then added to these two rates. The following is a summary of the additional margins:
|  | Consolidated Total Indebtedness to Credit Facility Adjusted EBITDA |
--- | --- | --- | ---
|  | Less than 0.75 |  | 0.75 to 1.25 |  | 1.25 to 2.00 |  | 2.00 to 2.50 |  | 2.50 or greater |
Additional Per Annum Interest Margin Added Under: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Base Rate Loan Option |  |  | 0.75 | % |  | 1.00 | % |  | 1.25 | % |  | 1.50 | % |  | 1.75 | %
Eurodollar Rate Loan Option |  |  | 1.75 | % |  | 2.00 | % |  | 2.25 | % |  | 2.50 | % |  | 2.75 | %
We estimate that the weighted average interest rate applicable to the borrowings under the Facility would be approximately 2.2% as of March 31, 2013. We have used letters of credit to guarantee performance under our contracts and to ensure payment to our subcontractors and vendors under those contracts. Our lenders issue such letters of credit through the Facility for a fee. We have never had a claim made against a letter of credit that resulted in payments by a lender or by us and believe such claims are unlikely in the foreseeable future. The letter of credit fees range from 1.30% to 2.10% per annum, based on the ratio of Consolidated Total Indebtedness to Credit Facility Adjusted EBITDA, as defined in the credit agreement. Commitment fees are payable on the portion of the revolving loan capacity not in use for borrowings or letters of credit at any given time. These fees range from 0.25% to 0.50% per annum, based on the ratio of Consolidated Total Indebtedness to Credit Facility Adjusted EBITDA, as defined in the credit agreement. The Facility contains financial covenants defining various financial measures and the levels of these measures with which we must comply. Covenant compliance is assessed as of each quarter end. The Facility's principal financial covenants include: Leverage Ratio—The Facility requires that the ratio of our Consolidated Total Indebtedness to our Credit Facility Adjusted EBITDA not exceed 3.00 through December 31, 2013, 2.75 through June 30, 2014 and 2.50 through maturity. The leverage ratio as of March 31, 2013 was 0.14. Fixed Charge Coverage Ratio—The Facility requires that the ratio of Credit Facility Adjusted EBITDA, less non-financed capital expenditures, tax provision, dividends and amounts used to repurchase stock to the sum of interest expense and scheduled principal payments of indebtedness be at least 2.00; provided that the calculation of the fixed charge coverage ratio excludes stock repurchases and the payment of dividends at any time that the Company's Net Leverage Ratio does not exceed 2.00 through December 31, 2013, 1.50 through June 30, 2014 and 1.00 through maturity. Capital expenditures, tax provision, dividends and stock repurchase payments are defined under the Facility for purposes of this covenant to be amounts for the four quarters ending as of any given quarterly covenant compliance measurement date. The fixed charge coverage ratio as of March 31, 2013 was 18.25. Other Restrictions—The Facility permits acquisitions of up to $15.0 million per transaction, provided that the aggregate purchase price of such an acquisition and of acquisitions in the preceding 12 month period does not exceed $30.0 million. However, these limitations only apply when the Company's Net Leverage Ratio is equal to or greater than 2.00. While the Facility's financial covenants do not specifically govern capacity under the Facility, if our debt level under the Facility at a quarter-end covenant compliance measurement date were to cause us to violate the Facility's leverage ratio covenant, our borrowing capacity under the Facility and the favorable terms that we currently have could be negatively impacted by the lenders. We are in compliance with all of our financial covenants as of March 31, 2013. Notes to Former Owners We issued subordinated notes to the former owners of acquired companies as part of the consideration used to acquire these companies. These notes had an outstanding balance of $5.0 million as of March 31, 2013 and bear interest, payable annually, at a weighted average interest rate of 3.3%. The maturity date of the outstanding balance is July 2014. Other Debt In conjunction with our acquisition of ColonialWebb in 2010, we acquired long-term debt related to an industrial revenue bond associated with its office building and warehouse. The outstanding balance as of March 31, 2013 was $2.4 million, of which $0.3 million is current. The weighted average interest rate on this variable rate debt as of March 31, 2013 was approximately 0.30%. In addition, our majority owned subsidiary, EAS, has a revolving $2.5 million credit line that is available for temporary working capital needs. As of March 31, 2013, EAS has not used the facility.

X
- Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for long-term debt. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 22 -Article 5 + Details
Name: | us-gaap_LongTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration