XML 43 R17.htm IDEA: XBRL DOCUMENT
v3.24.1.u1

CREDIT FACILITY AND ACQUISITION DEBT | 3 Months Ended
--- | ---
Mar. 31, 2024
Debt Disclosure [Abstract] |
CREDIT FACILITY AND ACQUISITION DEBT | CREDIT FACILITY AND ACQUISITION DEBT At March 31, 2024, our senior secured revolving credit facility (the “Credit Facility”) was comprised of: (i) a $250.0 million revolving credit facility, including a $15.0 million subfacility for letters of credit and a $10.0 million swingline, and (ii) an accordion or incremental option allowing for future increases in the facility size by an additional amount of up to $75.0 million in the aggregate in the form of increased revolving commitments or incremental term loans. The final maturity of the Credit Facility will occur on May 13, 2026. Our obligations under the Credit Facility are unconditionally guaranteed on a joint and several basis by the same subsidiaries which guarantee the Senior Notes (as defined in Note 12) and certain of our subsequently acquired or organized domestic subsidiaries (collectively, the “Subsidiary Guarantors”). The Credit Facility contains customary affirmative covenants, including, but not limited to, covenants with respect to the use of proceeds, payment of taxes and other obligations, continuation of the Company’s business and the maintenance of existing rights and privileges, and the maintenance of property and insurance, among others. In addition, the Credit Facility also contains customary negative covenants, including, but not limited to, covenants that restrict (subject to certain exceptions) the ability of the Company and the Subsidiary Guarantors to incur indebtedness, grant liens, make investments, engage in mergers and acquisitions, pay dividends and make other restricted payments, and certain financial maintenance covenants. At March 31, 2024, we were subject to the following financial covenants under our Credit Facility: (A) a Total Leverage Ratio not to exceed 5.50 to 1.00 and (B) a Fixed Charge Coverage Ratio (as defined in the Credit Facility) of not less than 1.20 to 1.00 as of the end of any period of four consecutive fiscal quarters. These financial maintenance covenants are calculated for the Company and its subsidiaries on a consolidated basis. We were in compliance with all of the covenants contained in our Credit Facility at March 31, 2024. Our Credit Facility and acquisition debt consisted of the following (in thousands):
| December 31, 2023 |  | March 31, 2024
Credit Facility | $ | 179,100 |  |  | $ | 154,100 |
Debt issuance costs, net of accumulated amortization of $2,478 and $2,616, respectively | (1,306) |  |  | (1,168) |
Total Credit Facility | $ | 177,794 |  |  | $ | 152,932 |
Acquisition debt | $ | 5,998 |  |  | $ | 5,979 |
Less: current portion | (537) |  |  | (599) |
Total acquisition debt, net of current portion | $ | 5,461 |  |  | $ | 5,380 |
At March 31, 2024, we had outstanding borrowings under the Credit Facility of $154.1 million. We also had one letter of credit for $2.6 million under the Credit Facility. The letter of credit will expire on November 25, 2024 and is expected to automatically renew annually and secures our obligations under our various self-insured policies. At March 31, 2024, we had $93.3 million of availability under the Credit Facility. The interest expense and amortization of debt issuance costs related to our Credit Facility are as follows (in thousands):
| Three months ended March 31, |  |
| 2023 |  | 2024 |  |  |  |
Credit Facility interest expense | $ | 3,811 |  |  | $ | 3,916 |  |  |  |  |
Credit Facility amortization of debt issuance costs | 138 |  |  | 138 |  |  |  |  |
Outstanding borrowings under our Credit Facility bear interest at a prime rate or the Bloomberg Short-Term Bank Yield Index (“BSBY”) rate, plus an applicable margin based on our leverage ratio. At March 31, 2024, the prime rate margin was equivalent to 2.375% and the BSBY rate margin was 3.375%. The weighted average interest rate on our Credit Facility was 7.9% and 8.9% for the three months ended March 31, 2023 and 2024, respectively. Acquisition debt consists of deferred purchase price and promissory notes payable to sellers. A majority of the deferred purchase price and notes bear no interest and are discounted at imputed interest rates ranging from 6.5% to 7.3%. Original maturities typically range from five to twenty years. The imputed interest expense related to our acquisition debt is as follows (in thousands):
| Three months ended March 31, |  |
| 2023 |  | 2024 |  |  |  |
Acquisition debt imputed interest expense | $ | 71 |  |  | $ | 104 |  |  |  |  |

X
- References No definition available. + 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://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//470/tableOfContent + Details
Name: | us-gaap_LongTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration