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Note 9 - Line of Credit
 12 Months Ended
Jan. 03, 2015
Debt Disclosure [Abstract]  
Debt Disclosure [Text Block]

9.

LINE OF CREDIT


The Company and its subsidiaries are party to a loan agreement with Citizens Bank of Pennsylvania, amended and restated effective February 20, 2009, which provides for a $35 million revolving credit facility and includes a sub-limit of $5 million for letters of credit (the “Revolving Credit Facility”). The Revolving Credit Facility has been amended several times, most recently on December 12, 2014 when the maturity date was extended to December 11, 2019. Borrowings under the Revolving Credit Facility bear interest at one of two alternative rates, as selected by the Company at each incremental borrowing. These alternatives are: (i) LIBOR (London Interbank Offered Rate), plus applicable margin, or (ii) the agent bank’s prime rate. The Company also pays unused line fees based on the amount of the Revolving Credit Facility that is not drawn. Unused line fees are recorded as interest expense.


All borrowings under the Revolving Credit Facility are collateralized by all of the assets of the Company and its subsidiaries and a pledge of the stock of its subsidiaries.  The Revolving Credit Facility also contains various financial and non-financial covenants, such as a covenant that restricts on the Company’s ability to borrow in order to pay dividends.  The Company paid a special cash dividend on December 30, 2014 which was expressly permitted under its amended Revolving Credit Facility. The Company was in full compliance with the covenants in its Revolving Credit Facility as of January 3, 2015.


The Company had borrowings of $20.0 million as of January 3, 2015 and no borrowings as of December 28, 2013.  At January 3, 2015 and December 28, 2013, there were letters of credit outstanding for $0.8 million.  At January 3, 2015, the Company had availability for additional borrowings under the Revolving Credit Facility of $14.2 million.