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Debt | 12 Months Ended
--- | ---
Jan. 31, 2013
Debt [Abstract] |
Debt Disclosure [Text Block] | Note 5 - Debt
| 2012 |  | 2011 |
Revolving line domestic | $13,989 | $18,252
Mortgage notes | 12,312 |  | 11,012 |
Revolving lines foreign | 2,529 |  | 1,526 |
Term loans | 10,608 |  | 4,797 |
Capitalized lease obligations (See Note 6 - Lease information) | 2,584 |  | 1,831 |
Total debt | 42,022 |  | 37,418 |
Less current maturities | 5,419 |  | 2,736 |
Total long-term debt | $36,603 | $34,682
The following table summarizes the Company's scheduled maturities at January 31,:
| Total | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | Thereafter |
Revolving line domestic | $13,989 |  | $— |  |  | $— |  |  | $— |  |  | $13,989 |  |  | $— |  |  | $— |
Mortgages | 12,312 | 357 | 370 | 389 | 408 | 3,598 | 7,190
Revolving line foreign | 2,529 | 1,726 | — |  | — |  | — |  | — |  | 803
Term loans | 10,608 | 2,729 | 2,302 | 1,715 | 1,706 |  | 328 |  | 1,828
Capitalized lease obligations | 2,584 | 607 | 593 | 616 | 630 | 138 | — |
Total | $42,022 | $5,419 | $3,265 | $2,720 | $16,733 | $4,064 | $9,821
On July 11, 2002, the Company entered into a secured loan and security agreement with a financial institution ("Loan Agreement"). Under the terms of the Loan Agreement as amended, the Company can borrow up to $38 million, subject to borrowing base and other requirements, under a revolving asset-based line of credit. The third amendment to the loan agreement executed March 15, 2013 extended the maturity date of the loan from November 30, 2013 to November 30, 2016. The Loan Agreement covenants restrict debt, liens, investments, do not permit payment of dividends, and require attainment of levels of profitability and cash flows. At January 31, 2013, the Company was in compliance with all covenants under the Loan Agreement. Interest rates are based on options selected by the Company as follows: (a) a margin in effect plus a prime rate; or (b) a margin in effect plus the LIBOR rate for the corresponding interest period. At January 31, 2013, the prime rate was 3.25%, the LIBOR rate was 0.25%, and the margins added to the prime rate and the LIBOR rate, which are determined each quarter based on the applicable financial statement ratio, were 0.5 and 2.75 percentage points, respectively. Monthly interest payments were made during the years ended January 31, 2013 and 2012. As of January 31, 2013, the Company had borrowed $14 million and had $4.8 million available to it under the revolving line of credit. In addition, $0.2 million of availability was used under the Loan Agreement primarily to support letters of credit to guarantee amounts committed for inventory purchases. The Loan Agreement provides that all domestic receipts are deposited in a bank account from which all funds may only be used to pay the debt under the Loan Agreement. At January 31, 2013, the amount of such restricted cash was $0.1 million. Cash required for operations is provided by draw-downs on the line of credit. Revolving lines foreign. The Company also has credit arrangements used by its Danish and Middle Eastern subsidiaries. These credit arrangements are in the form of overdraft facilities and project financing at rates competitive in the countries in which the Company operates. At January 31, 2013, borrowings under these credit arrangements totaled $2.5 million; an additional $2.9 million remained unused. The Company guarantees the subsidiaries' debt including all foreign debt. Mortgages. On June 19, 2012, Perma-Pipe, Inc. borrowed $1.8 million under a mortgage note secured by its manufacturing facility in Lebanon, Tennessee. The proceeds were used for payment of amounts borrowed. The loan bears interest at 4.5% with monthly payments of $13 thousand for both principal and interest and matures July 1, 2027. On June 19, 2022, and on the same day of each year thereafter, the interest rate shall adjust to the prime rate provided the applicable interest rate shall not adjust more than 2% per annum, and shall be subject to ceiling of 18% and a floor of 4.5%. On March 27, 2012, the Company obtained a loan in the amount of 7,927,000 Danish Kroners ("DKK") (approximately $1.4 million U.S. dollars at the prevailing exchange rate on transaction date) from a Danish bank under a mortgage note secured by its filtration products manufacturing facility in Denmark. The loan has an interest rate of 2.21%, monthly payments of approximately $7.5 thousand for both principal and interest and matures March 2032. On July 10, 2010, the Company obtained a loan in the amount of 4,649,000 DKK (approximately $850 thousand U.S. dollars at the prevailing exchange rate on transaction date) from a Danish bank under a mortgage note secured by its industrial process cooling manufacturing facility in Denmark. The loan has an interest rate of 3.29%, quarterly payments of approximately $16 thousand for both principal and interest and matures July 2030 . On March 4, 2008, the Company borrowed $5.4 million million under a mortgage note secured by the filtration products manufacturing facility located in Bolingbrook, Illinois and matures March 2033. The 25 mortgage resets its interest rate every five years based on a published index. The initial interest rate is 6.54% with monthly payments of $37 thousand for principal and interest combined. On January 18, 2008, the Company borrowed $3.7 million under a mortgage note secured by its manufacturing and office facility in Niles, Illinois. The loan bears interest at 6.26% with monthly payments of $23 thousand for both principal and interest based on an amortization schedule of thirty years with a balloon payment at maturity in January 2018. Term loans. On August 28, 2007, the Company amended and restated the Term Loan Note to $3 million ("Term Loan"). Interest rates under the Term Loan are based on options selected by the Company as follows: (a) a margin in effect plus a prime rate; or (b) a margin in effect plus the LIBOR rate for the corresponding interest period. At January 31, 2013, the prime rate was 3.25%, the LIBOR rate was 0.375% and the margin added to the prime rate , which is determined each quarter based on the applicable financial statement ratio, was 0.75 percentage points. The Company is scheduled to pay $107 thousand of principal on the first days of March, June, and September, with the remaining unpaid principal payable on November 30, 2013. The third amendment to the loan agreement allows for an additional term loan of $2.5 million less $0.6 million, the amount outstanding on this loan, in 2013 subject to attaining certain performance levels. The weighted average interest rates based on this loan at January 31, 2013 and 2012, were 4.24% and 3.34%, respectively. On December 10, 2012, the Company obtained a loan in the amount of 1,360,000 Euros (approximately $1.8 million U.S. dollars at the prevailing exchange rate on transaction date) from a Danish bank by its filtration products manufacturing facility in Denmark. Interest rate at January 31, 2013 was 3.69%. The loan has a variable interest rate plus margin, quarterly payments of approximately $108 thousand for both principal and interest and matures December 2017. Between November 25, 2012 and year end the Company obtained a loan in the amount of 423 thousand Dirhams, approximately $115 thousand U.S. dollars at the exchange rate prevailing on the transaction date. The loan bears interest at 3.39% with monthly payments of $5 thousand for both principal and interest and matures between January and March of 2015. On April 10, 2012, the Company obtained a loan from a U.A.E. bank to purchase equipment and office furniture for a building for the piping system's facility in Saudi Arabia, in the amount of 22.2 million Dirhams, approximately $5.9 million U.S. dollars at the exchange rate prevailing on the transaction date. The loan bears interest at 5.5% with quarterly payments of approximately $408 thousand for both principal and interest and matures April, 2017. On May 14, 2010, Perma-Pipe, Inc. borrowed $1 million under an equipment loan secured by equipment. The loan bears interest at 5.84% with monthly payments of $24 thousand for both principal and interest and matures May 2014. The Company purchased insurance on the lives of key executive officers. As beneficiary, the Company receives the cash surrender value if the policy is terminated and, upon death of the insured, receives all benefits payable. Cash surrender value of life insurance is reported in long term assets on the balance sheet. On April 27, 2010, the Company obtained a loan with no maturity date in the amount of $2 million collateralized by the cash surrender value of the policies. The loans carry interest at a rate of 4.25% and require interest only payments annually. At January 31, 2013, the balance was $1.8 million. On April 8, 2003, the Company obtained a loan from a Danish bank to purchase equipment and office furniture for a building for the filtration products' facility in Denmark, in the amount of 700,000 Euros, approximately $800 thousand U.S. dollars at the exchange rate prevailing on the transaction date. The loan bears interest at 6.1% with quarterly payments of $9 thousand for both principal and interest and matures April 2014. Capital leases. On January 31, 2012, Perma-Pipe, Inc. borrowed $1.2 million under an equipment loan secured by equipment. The loan bears interest at 6.7% with monthly payments of $24 thousand for both principal and interest and matures January 2017. On July 1, 2011, filtration products' Denmark location obtained a capital lease in the amount of 2,180,827 DKK (approximately $387 thousand U.S. dollars at the prevailing exchange rate on the transaction date) from a Danish bank to finance capital expenditures. The loan bears interest at a fixed rate of 6.37% per annum with monthly principal payments of $6 thousand, and quarterly interest payments and matures June 2016. Between 2009 and 2011, the Company obtained several capital leases totaling $273 thousand to finance capital computer equipment. The interest rate for these capital leases range from 3.8% to 5.8% per annum with monthly principal and interest payments of $9 thousand and matures between October 2013 and May 2014. During 2011, piping systems obtained several capital leases totaling 3,129,000 Indian Rupees (approximately $57 thousand U.S. dollars at the prevailing exchange rate on the transaction date) to finance vehicle equipment. The interest rate for these capital leases range from 14.4% to 17.8% per annum with monthly principal and interest payments of $2.5 thousand and mature in 2014. On April 23, 2010, filtration products' Denmark location obtained a capital lease in the amount of 952,600 DKK (approximately $170 thousand U.S. dollars at the prevailing exchange rate on the transaction date) from a Danish bank to finance capital expenditures. The loan bears interest at a fixed rate of 5% per annum with monthly principal payments of $2.5 thousand, and quarterly interest payments and matures April 2015.

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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 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 Reference 2: 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 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 4 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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