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Note 7 - Line of Credit
12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Debt Disclosure [Text Block]
7
.
LINE OF CREDIT
:
 
The Company’s Loan and Security Agreement (the “Agreement”) with Bank of America, N.A, as amended, expires on
October
 
25,
2018
and provides for revolving loans and letters of credit in the aggregate amount of up to
$60
 million, subject to a borrowing base. The borrowing base is calculated by applying various advance rates to eligible accounts receivable, costs and expected earnings in excess of billings, inventories and fixed assets, subject to various exclusions, adjustments and sublimits.
 
Borrowings under the Agreement bear interest at rates related to London Interbank Offered Rate plus
1.75%
to
2.25%,
or at Bank of America’s prime rate plus
0.75%
to
1.25%.
Borrowings under the Agreement are secured by substantially all of the Company’s assets. As of
December
 
31,
2016
and
2015,
there were no outstanding borrowings. As of
December
 
31,
2016,
the Company’s borrowing capacity under the Agreement was
$13.0
 million, net of outstanding letters of credit.
 
The Agreement also contains customary representations, warranties and events of default, which include the occurrence of events or circumstances which have a Material Adverse Effect, as defined in the Agreement. Payment of outstanding advances
may
be accelerated, at the option of Bank of America, should the Company default in its obligations under the Agreement.
 
In conjunction with entering into the Agreement in
October
2015,
the Company terminated the Second Amended and Restated Credit Agreement dated as of
October
 
24,
2012.
The Company incurred incremental interest expense of approximately
$0.4
 million during the
fourth
quarter of
2015
related to the write-off of unamortized financing costs associated with the terminated agreement.
 
Interest expense for continuing operations from line of credit borrowings, term notes and capital leases was
$0.5
 million in
2016,
$1.4
 million, net of amounts capitalized of
$0.1
 million in
2015
and
$2.3
 million, net of amounts capitalized of
$0.2
 million in
2014.
No interest was capitalized in
2016.
Term notes were paid off in
2014.