XML 29 R16.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Note 9 - Line of Credit and Long-term Debt | 12 Months Ended
--- | ---
Dec. 31, 2016
Notes to Financial Statements |
Debt Disclosure [Text Block] |
9. | Line of Credit and Long-Term Debt
Long-term debt consists of the following (in thousands):
|  | As of December 31,
|  | 2016 |  | 2015
Equipment-based Facility |  | $ | 3,532 |  |  | $ | 17,957 |
Less deferred loan costs |  |  | (803 | ) |  |  | (1,119 | )
Equipment-based Facility, Net |  |  | 2,729 |  |  |  | 16,838 |
Notes payable for transportation and construction equipment and other |  |  | 2,665 |  |  |  | 3,342 |
|  |  | 5,394 |  |  |  | 20,180 |
Current maturities of long-term debt |  |  | 4,648 |  |  |  | 5,192 |
Less current deferred loan costs |  |  | (803 | ) |  |  | (336 | )
Less current maturities of long-term debt, net |  |  | (3,845 | ) |  |  | (4,856 | )
Total long-term debt |  | $ | 1,549 |  |  | $ | 15,324 |
Equipment-based Facility In May 2015, the Company and its wholly-owned subsidiaries entered into a $40.0 million loan and security agreement with Nations, consisting of a $20.0 million Term Loan and a $20.0 million Revolving Loan (combined, the “Equipment-based Facility”), which replaced its Prior Credit Facility. The sum of the outstanding balances of the Equipment-based Facility may not exceed the lesser of $40.0 million or 65% of the appraised value of the collateral pledged for the loans. At December 31, 2016, the Company had a borrowing base of approximately $24.4 million, which was the result of calculating 65% of the appraised value (where appraised value equals net operating liquidated value) of the Company’s collateral. The amount of the Revolving Loan that may be borrowed from time to time is the lesser of $20.0 million or the available borrowing base. However, as a result of the $10.0 million in principal payments made to our Term Loan during the year, as discussed below, we have reached our $20.0 million revolver cap, and therefore, only $20.0 million of borrowings were available at December 31, 2016. The Revolving Loan may be utilized by the Company to provide ongoing working capital and for other general corporate purposes. The Equipment-based Facility bears interest at an initial fixed annual rate of 12%, which is subject to (i) a decrease of up to two percentage points based on the Company's fixed charge coverage ratio for each of the most recently ended four quarters beginning with the four quarters ending June 30, 2016; and (ii) an increase of up to two percentage points beginning December 31, 2015 based on the fixed charge coverage ratio at the end of the following four quarters. The interest rate has not changed since inception and continues to be 12%. Principal on the Term Loan is payable in 47 monthly installments (with accrued interest) with a final payment of the then outstanding principal amount on May 29, 2019. The Term Loan may be prepaid in any year, but subject to a pre-payment fee that declines as the Term Loan nears maturity. Outstanding Revolving Loans are payable in full thirty days before the maturity date of the Term Loan. The Equipment-based Facility is secured by all of the Company's personal property except accounts receivable, including all of its construction equipment, which forms the basis of availability under the Revolving Loan. The Equipment-based Facility is also secured by one -half of the equipment of the Company's 50% -owned affiliates, Road and Highway Builders, LLC and Myers & Sons Construction, L.P. pursuant to a separate security agreement with those entities. If a default occurs, Nations may exercise the Company's rights in the collateral, with all of the rights of a secured party under the Uniform Commercial Code, including, among other things, the right to sell the collateral at public or private sale. The proceeds of the Term Loan of $20.0 million and our initial draw of $14.6 million under the Revolving Loan were utilized by the Company to repay the balance outstanding and terminate the Prior Credit Facility and for other general corporate purposes. In addition, in connection with incurring this debt, we recorded $1.3 million in deferred debt issuance costs which were included in “Long-term debt, net of current maturities” and “Current maturities of long-term debt” in our consolidated balance sheet, which is being amortized on a straight line basis over the term of the Equipment-based Facility. The Company’s Equipment-based Facility has no financial covenants; however, it contains restrictions on the Company’s ability to:
| · | Incur liens and encumbrances on equipment;
| · | Incur further indebtedness;
| · | Dispose of a material portion of assets or merge with a third party;
| · | Make acquisitions; and
| · | Make investments in securities.
Due to this new Equipment-based Facility agreement, the Company’s Letter of Credit, which under our Prior Credit Facility reduced the Company’s borrowing availability, is now collateralized with cash. Refer to Note 2 for more information regarding the Company’s cash and cash equivalents including restricted cash used as collateral. During 2016, the Company prepaid $10.0 million of the principal balance of our Term Loan and paid approximately $0.3 million as prepayment fees which were recorded as “Interest expense” in our consolidated statement of operations. There were no prepayments made to the Term Loan in 2015. Interest expense related to our Equipment-based Facility was $2.6 million for the 2016 fiscal year compared to $2.9 million and $1.0 million in the 2015 and 2014 fiscal years, respectively. The decrease in interest expense for 2016 was due to the decreased debt outstanding during the period offset by the prepayment fees noted above. At December 31, 2016, the Company had no amounts drawn on the Revolving Loan, $3.5 million outstanding under the Term Loan and $20.0 million of borrowings available. At December 31, 2015, the Company had no amounts drawn on the Revolving Loan, $18.0 million outstanding under the Term Loan and $11.6 million of borrowings available. Fair Value The Company’s debt is recorded at the carrying amount in the consolidated balance sheets. The Company uses an income approach to determine the fair value of its 12% Term Loan due May 29, 2019 using estimated cash flows, which is a Level 3 fair value measurement. As of December 31, 2016 and 2015, the carrying values approximated fair values and were $3.5 million and $18.0 million, respectively, for the Term Loan. There were no amounts outstanding on the Revolving Loan as of December 31, 2016 and 2015. In order to extinguish our Prior Credit Facility debt, the Company incurred costs of $0.2 million which were included in “Loss on extinguishment of debt” in the Company’s 2015 consolidated statement of operations. Notes Payable for Transportation and Construction Equipment The Company has purchased and financed various transportation and construction equipment to enhance the Company’s fleet of equipment. The total long-term notes payable, including current maturities of long-term debt, related to the purchase of financed equipment was $2.7 million at December 31, 2016, and $3.3 million at December 31, 2015. The purchases have payment terms ranging from 3 to 5 years and the associated interest rates range from 3.12% to 6.92%. Maturities of Debt The Company’s long-term obligations mature in future years as follows (amounts in thousands):
| Years Ending December 31, |  | Amount |
| 2017 |  | $ | 3,845 |  |
| 2018 |  |  | 920 |  |
| 2019 |  |  | 566 |  |
| 2020 |  |  | 59 |  |
| 2021 |  |  | 4 |  |
| Thereafter |  |  | -- |  |
|  |  | $ | 5,394 |  |
The long-term obligations above include $0.4 million related to two capital leases outstanding as of December 31, 2016. See Note 1 for more information regarding our capital leases.

X
- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration