XML 46 R19.htm IDEA: XBRL DOCUMENT v3.2.0.727
Debt
6 Months Ended
Jul. 31, 2015
Debt [Abstract]  
Debt Disclosure [Text Block]
Debt. Debt totaled $31.7 million at July 31, 2015, a net increase of $2.1 million since January 31, 2015.

Revolving lines domestic. On September 24, 2014, the Company entered into a Credit and Security Agreement with a financial institution ("Credit Agreement"). Under the terms of the Credit Agreement, which matures on September 24, 2019, the Company can borrow up to $25.0 million, subject to borrowing base availability from secured domestic assets and other requirements, under a revolving line of credit. The Loan Agreement covenants restrict debt, liens, and investments, and require attainment of specific levels of profitability and cash flows. At July 31, 2015, the Company was in compliance with loan covenants. The domestic revolving line balance as of January 31, 2015 and July 31, 2015 was included as a current liability on the consolidated balance sheets.

Interest rates vary based on the average availability in the preceding fiscal quarter and are: (a) a margin in effect plus a base rate, if below certain availability limits; or (b) a margin in effect plus the Eurodollar rate for the corresponding interest period. As of July 31, 2015, the Company had borrowed $14.4 million at 3.25% and 1.69% and had $9.6 million available to it under the revolving line of credit. In addition, $0.1 million of availability was used under the Credit Agreement primarily to support letters of credit to guarantee amounts committed for inventory purchases. 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. The lines are secured by certain equipment, certain assets, such as accounts receivable and inventory, and a guarantee by the Company. Some credit arrangement covenants requires a minimum tangible net worth to be maintained. At July 31, 2015, the Company was in compliance with the covenants under the credit arrangements. At July 31, 2015, interest rates were 4.0% per annum below National Bank of Fujairah Base Rate, minimum 3.5% per annum, and Emirates Inter Bank Offered Rate (EIBOR) plus 3.5% per annum. At July 31, 2015, the Company's interest rates range from 3.5% to 6.0%. At July 31, 2015, the Company could have borrowed $45.2 million under these credit arrangements. In addition, $5.9 million of availability was used to support letters of credit to guarantee amounts committed for inventory purchases. At July 31, 2015, borrowings under these credit arrangements totaled $1.1 million; an additional $26.2 million remained unused.