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Note 6 - Long-term Debt

12 Months Ended

Dec. 31, 2013

6. LONG-TERM DEBT

Long-term debt at December 31, consists of the following:

	2013			2012
	(in thousands)
Line of credit with a bank—due June 1, 2015, and collateralized by accounts receivable (1)	$	-		$	5,417
Equipment financing (2)		110,469			102,084
Total long-term debt		110,469			107,501
Less current maturities		(40,103	)		(28,918	)

Long-term debt—net of current maturities	$	70,366		$	78,583

(1)

Line of credit agreement with a bank provides for maximum borrowings of $35.0 million and contains certain restrictive covenants that must be maintained by the Company on a consolidated basis. Borrowings on the line of credit are at an interest rate of LIBOR as of the first day of the month plus 1.75% (1.92% at December 31, 2013) and are secured by our trade accounts receivable. Monthly payments of interest are required under this agreement. Also, under the terms of the agreement the Company must have (a) a debt to equity ratio of no more than 2.15:1, and (b) maintain a tangible net worth of at least $115 million. The Company was in compliance with all provisions of the agreement throughout 2013.

(2)

Equipment financings consist of installment obligations for revenue equipment purchases, payable in various monthly installments with various maturity dates through September 2018, at a weighted average interest rate of 2.91% as of December 31, 2013 and collateralized by revenue equipment.

The Company has provided letters of credit to third parties totaling approximately $1,101,000 at December 31, 2013. The letters are held by these third parties to assist such parties in collection of any amounts due by the Company should the Company default in its commitments to the parties.

Scheduled annual maturities on long-term debt outstanding at December 31, 2013, are:

	(in thousands)

2014	$	40,103
2015		47,154
2016		21,224
2017		1,477
2018		511

Total	$	110,469