XML 26 R11.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Revolving Line Of Credit And Term Notes Payable | 12 Months Ended
--- | ---
Aug. 31, 2016
Revolving Line Of Credit And Term Notes Payable [Abstract] |
Revolving Line Of Credit And Term Notes Payable | ﻿ ﻿ 4.REVOLVING LINE OF CREDIT AND TERM NOTES PAYABLE ﻿ During fiscal 2011, we entered into an amended and restated secured credit agreement (the Restated Credit Agreement) with our existing lender. The Restated Credit Agreement provides us with a revolving line of credit facility and the ability to borrow on other instruments, such as term loans. We generally renew the Restated Credit Agreement on a regular basis to maintain the long-term availability of this credit facility. ﻿ On May 24, 2016, we entered into the Fifth Modification Agreement to the Restated Credit Agreement. The primary purposes of the Fifth Modification Agreement were to (i) obtain a term loan for $15.0 million (the Term Loan); (ii) increase the maximum principal amount of the revolving line of credit from $30.0 million to $40.0 million; (iii) extend the maturity date of the Restated Credit Agreement from March 31, 2018 to March 31, 2019; (iv) permit the Company to convert balances outstanding from time to time under the revolving line of credit to term loans; and (v) adjust the fixed charge coverage ratio from 1.40 to 1.15. ﻿ In connection with the Fifth Modification Agreement, we entered into a promissory note, a security agreement, repayment guaranty agreements, and a pledge and security agreement. These agreements pledge substantially all of our assets located in the United States to the lender as collateral for borrowings under the Restated Credit Agreement and subsequent amendments. ﻿ Revolving Line of Credit ﻿ The key terms and conditions of the revolving line of credit under the Fifth Modification Agreement are as follows: ﻿
| · |  | Available Credit – The maximum available credit is $40.0 million. The amount of available credit may be reduced by additional term loans (refer to discussion below) obtained during the life of Restated Credit Agreement.
﻿
| · |  | Maturity Date – The maturity date of the Revolving Line of Credit is March 31, 2019.
﻿
| · |  | Interest Rate – The effective interest rate continues to be LIBOR plus 1.85 percent per annum and the unused credit fee on the line of credit remains 0.25 percent per annum.
﻿
| · |  | Financial Covenants – The Restated Credit Agreement requires us to be in compliance with specified financial covenants, including (a) a funded debt to EBITDAR (earnings before interest, taxes, depreciation, amortization, and rental expense) ratio of less than 3.00 to 1.00; (b) a fixed charge coverage ratio greater than 1.15 to 1.0; (c) an annual limit on capital expenditures (not including capitalized curriculum development) of $8.0 million; and (d) outstanding borrowings on the Revolving Line of Credit may not exceed 150 percent of consolidated accounts receivable.
﻿ In the event of noncompliance with these financial covenants and other defined events of default, the lender is entitled to certain remedies, including acceleration of the repayment of any amounts outstanding on the Restated Credit Agreement. At August 31, 2016, we believe that we were in compliance with the terms and covenants applicable to the Fifth Modification Agreement. The effective interest rate on our Revolving Line of Credit and term notes payable (refer to discussion below) was 2.3 percent at August 31, 2016 and 2.0 percent August 31, 2015. We did not have any borrowings on the revolving line of credit at August 31, 2016 or 2015. ﻿ Term Notes Payable ﻿ In connection with the Fifth Modification Agreement, we obtained a $15.0 million term loan and have the ability to obtain additional term loans in increments of $5.0 million up to a maximum of $40.0 million. Each additional term loan will reduce the amount available to borrow on the revolving line of credit facility on a dollar-for-dollar basis. Interest on the term loans is payable monthly at LIBOR plus 1.85 percent per annum and each term loan matures in three years. Interest is payable monthly and principal payments are due and payable on the first day of each January, April, July, and October. Principal payments are equal to the original amount of the term loan divided by 16 and any remaining principal at the maturity date is immediately payable. The proceeds from each term loan may be used for general corporate purposes and each term loan may be repaid sooner than the maturity date at our discretion. ﻿ Principal payments by fiscal year through the maturity dates of the term loans are as follows (in thousands): ﻿
﻿ |  |
﻿ |  |
﻿YEAR ENDING |  |
﻿AUGUST 31, |  |
﻿2017 | $ | 3,750
﻿2018 |  | 3,750
﻿2019 |  | 6,563
﻿ | $ | 14,063
﻿ Subsequent to August 31, 2016, we obtained an additional term loan with a principal amount of $5.0 million. This additional term loan has the same terms and conditions as described above and the first principal payment is due on October 1, 2016.

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 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 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration