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Financing Agreements
 12 Months Ended
Apr. 26, 2014
Debt Disclosure [Abstract]  
Financing Agreements
Financing Agreements

We have a credit agreement with a U.S. bank for a $35.0 million line of credit, which includes up to $15.0 million for standby letters of credit.  The line of credit, which was amended on November 15, 2013, is due on November 15, 2016. The interest rate ranges from LIBOR plus 145 basis points to LIBOR plus 195 basis points depending on the ratio of our interest-bearing debt to EBITDA.  EBITDA is defined as net income before deductions for income taxes, interest expense, depreciation and amortization, all as determined in accordance with GAAP. The effective interest rate was 1.6 percent at April 26, 2014.  We are assessed a loan fee equal to 0.125 percent per annum of any non-used portion of the loan.  As of April 26, 2014, there were no advances to us under the line of credit, and the balance of letters of credit outstanding was approximately $6.7 million.

The credit agreement is unsecured and requires us to be in compliance with the following financial ratios:

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A minimum fixed charge coverage ratio of at least 2 to 1 at the end of any fiscal year.  The ratio is equal to (a) EBITDA less dividends or other distributions, a capital expenditure reserve of $6 million, and income tax expenses, over (b) all principal and interest payments with respect to debt, excluding principal payments on the line of credit; and
•
A ratio of interest-bearing debt, excluding any marketing obligations, to EBITDA of less than 1 to 1 at the end of any fiscal quarter.

We have an additional credit agreement with another U.S. bank which supports our credit needs outside of the United States. It was also amended on November 15, 2013 and becomes due on November 15, 2016.  The facility provides for a $40.0 million line of credit and includes facilities for letters of credit and bank guarantees and to secure foreign loans for our international subsidiaries.  This credit agreement is unsecured.  It contains the same covenants as the credit agreement on the line of credit and contains an inter creditor agreement whereby the debt has a cross default provision with the primary credit agreement described above. The total credit allowed between the two credit agreements is limited to $40 million. As of April 26, 2014, there were no advances outstanding and approximately $4.6 million in bank guarantees under this line of credit.

We were in compliance with all applicable covenants as of April 26, 2014 and April 27, 2013.  The minimum fixed charge coverage ratio as of April 26, 2014 was 56-to-1, and the ratio of interest-bearing debt to EBITDA as of April 26, 2014 was 0.06-to-1.