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Note 7 - Long-term Debt | 12 Months Ended
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Mar. 31, 2017
Notes to Financial Statements |
Debt Disclosure [Text Block] | Note 7 . Long-term Debt Long-term debt consists of the following (in thousands):
|  | March 31, 201 7 |  |  | March 31, 2016 |
Line of credit (2.81% at March 31, 2017) |  | $ | 35,500 |  |  | $ | 27,500 |
Term loan (2.81% at March 31, 2017) |  |  | 19,750 |  |  |  | 17,750 |
Less: discount |  |  | (450 | ) |  |  | -- |
Less: current portion |  |  | (1,125 | ) |  |  | (3,000 | )
Long-term portion |  | $ | 53,675 |  |  | $ | 42,250 |
On July 1, 2015, we entered into a five -year credit agreement for a $50,000,000 revolving line of credit, a $20,000,000 term loan and up to $1,000,000 of letters of credit. On March 1, 2017, we entered into a new five -year agreement (the “Credit Facility”) for an $80,000,000 revolving line of credit (“Line of Credit”), a $20,000,000 term loan (“Term Loan”) and up to $2,500,000 of letters of credit with a banking syndicate of four banks. In addition, the Credit Facility provides a post-closing accordion feature which allows for the Company to request to increase the Line of Credit or Term Loan up to an additional $100,000,000 . Funds from the Credit Facility may be used to pay down its previous credit facility, finance working capital needs and for general corporate purposes in the ordinary course of business (including, without limitation, permitted acquisitions). Line of Credit and Term Loan indebtedness bears interest at either: ( 1 ) LIBOR, as defined, plus an applicable margin ranging from 1.5% to 2.50%; or ( 2 ) the alternate base rate (“ABR”), which is the greater of JPMorgan’s prime rate or the federal funds effective rate or the overnight bank funding rate plus 0.5%. We elect the interest rate with each borrowing under the line of credit. In addition, there is an unused line fee of 0.15% to 0.35%. Letter of credit fees are based on the applicable LIBOR rate. The Term Loan requires 20 quarterly principal payments (the first due date was March 31, 2017) in the amount of $250,000 (increasing by $125,000 each year up to $750,000 in the fifth year). The remaining balance of principal and accrued interest are due on March 1, 2022. The Credit Facility is secured by all of our assets and requires us to maintain a ratio of funded debt to our trailing four quarters of EBIDTA (the “Leverage Ratio”), as defined, of less than 3.0 to 1.0, provided that, we may once during the term of the Credit Facility, in connection with a Permitted Acquisition for which the aggregate consideration paid or to be paid in respect thereof equals or exceeds $20,000,000, elect to increase the maximum Leverage Ratio permitted hereunder to (i) 3.50 to 1.00 for a period of four consecutive fiscal quarters commencing with the fiscal quarter in which such Permitted Acquisition occurs (the “Initial Holiday Period”) and (ii) 3.25 to 1.00 for the period of four consecutive fiscal quarters immediately following the Initial Holiday Period. The Credit Facility also requires us to maintain a minimum fixed charge coverage ratio of less than 1.25 to 1.0. We were in compliance with the required covenants at March 31, 2017. We incurred origination and debt issuance costs of $460,000 which are treated as a debt discount and are netted against amounts outstanding on the consolidated balance sheets. Future contractual maturities of debt as of March 31, 2017 are as follows (in thousands):
Year ending March 31, |  |  |  |
2018 |  | $ | 1,125 |
2019 |  |  | 1,625 |
2020 |  |  | 2,125 |
2021 |  |  | 2,625 |
2022 |  |  | 47,750 |
|  | $ | 55,250 |
Subsequent to March 31, 2017, we made $3,000,000 in payments under the Line of Credit.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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