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Note 13 - Subsequent Events
6 Months Ended
Aug. 03, 2019
Notes to Financial Statements  
Subsequent Events [Text Block]
13.
Subsequent events
 
On
September 11, 2019,
we entered into the
twentieth
amendment to this credit agreement with our lender. Under the
twentieth
amendment, the bank line provides availability of up to
$20.0
million. Borrowings under the credit agreement are secured by our assets and a pledge of
66%
of our ownership interest in certain of our foreign subsidiaries. The credit agreement expires on
December 31, 2020
and contains various restrictions on indebtedness, liens, guarantees, redemptions, mergers, acquisitions or sale of assets, loans, transactions with affiliates and investments. The agreement limits the conditions under which the Company
may
declare dividends and repurchase shares. For example, we
may
not
use the proceeds of the line of credit to repurchase shares. The commitment fee is
0.25%
per annum and borrowings bear interest at LIBOR plus
3.25%.
Financial covenants include maintaining minimum thresholds for cumulative earnings before interest, depreciation and amortization (“EBITDA”) for the
third
quarter of fiscal
2019
(as defined by the credit agreement), maintaining minimum liquidity at all times, maintaining a minimum fixed charge coverage ratio effective in the
fourth
quarter of fiscal
2019
(as defined in the credit agreement) and
not
exceeding a maximum funded debt to EBITDA ratio as of the end of the
fourth
quarter of fiscal
2019
(as defined in the credit agreement). In addition, the company has a
$1.0
million letter of credit against the line of credit at the end of the
second
quarter of fiscal
2019.