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Related Party Transactions
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6 Months Ended |
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Jun. 30, 2014
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| Related Party Transactions [Abstract] | |
| Related Party Transactions | 14. RELATED PARTY TRANSACTIONS
Commercial Contracts
Three subsidiaries of the Company have executed separate financing agreements for equipment with AXIS Capital Inc. Gordon F. Glade, President and Chief Executive Officer of AXIS Capital, is a member of the Company’s Board of Directors. In March 2014, a subsidiary of the Company entered into $1.4 million of new equipment financing agreements with AXIS Capital with monthly payments beginning in April 2014. Totals of $1.3 million and $0.1 million were included in debt at June 30, 2014 and December 31, 2013, respectively, under these financing arrangements. Payments, including principal and interest, totaled $18 thousand and $55 thousand during the three and six months ended June 30, 2014, respectively, and $37 thousand and $74 thousand during the three and six months ended June 30, 2013, respectively. The weighted average interest rate for all financing agreements with AXIS Capital was 6.8%.
Aircraft Lease
Effective April 1, 2014, the Company entered into two agreements with entities controlled by Wayne B. Hoovestol for the lease of two aircrafts. Mr. Hoovestol is Chairman of the Company’s Board of Directors. In total, the Company agreed to pay $15,834 per month for combined use of up to 125 hours per year of the aircrafts. Any flight time in excess of 125 hours per year will incur additional hourly-based charges. These agreements replaced a prior agreement with an entity controlled by Mr. Hoovestol for the lease of an aircraft for $6,667 per month for use of up to 100 hours per year, with any flight time in excess of 100 hours resulting in additional hourly-based charges. During the three and six months ended June 30, 2014, payments related to these leases totaled $68 thousand and $99 thousand, respectively, and during the three and six months ended June 30, 2013, payments related to the aircraft lease totaled $39 thousand and $74 thousand, respectively. The Company did not have any outstanding payables related to these agreements at June 30, 2014 or December 31, 2013.
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