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Note 3 - Long-term Debt | 6 Months Ended
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Jun. 30, 2022
Notes to Financial Statements |
Long-Term Debt [Text Block] |
NOTE 3 – Long-Term Debt:
Debt consisted of the following (in thousands):
|  | June 30, |  |  | December 31, |
|  | 2022 |  |  | 2021 |
Credit Facilities: |  |  |  |  |  |  |  |
Revolving credit facility due February 2026 |  | $ | 101,651 |  |  | $ | 61,517 |
Term loan due February 2024 (“2017 Term Loan”) |  |  | 12,000 |  |  |  | 15,000 |
Term loan due January 2026 (“2018 Term Loan”) |  |  | 35,595 |  |  |  | 40,238 |
|  |  | 149,246 |  |  |  | 116,755 |
Less: |  |  |  |  |  |  |  |
Payments due within one year included in current liabilities |  |  | 15,286 |  |  |  | 15,286 |
Debt issuance costs |  |  | 553 |  |  |  | 624 |
Long-term debt less current maturities |  | $ | 133,407 |  |  | $ | 100,845 |
The Company is party to a credit agreement with Truist Bank, consisting of a revolving credit facility, a term loan maturing in February 2024 (“2017 Term Loan”) and a term loan maturing in January 2026 (“2018 Term Loan”). The revolving credit facility, 2017 Term Loan and 2018 Term Loan are collectively referred to as the “Credit Facilities.” On February 8, 2021, the Company entered into a Second Amended and Restated Credit Agreement with Truist Bank (the “Credit Agreement”), pursuant to which the maximum availability under the Company’s existing revolving credit facility was increased from $75.0 million to $125.0 million and its maturity date was extended until February 8, 2026. The 2017 Term Loan and the 2018 Term Loan remain outstanding with the same amortization schedules. The floor on LIBOR for the revolving credit facility was increased from zero to 0.25%, but the interest rates on the revolving credit facility and the term loans were not otherwise modified. Except as described above, the covenants, events of default and substantially all of the other terms that were contained in the Company’s prior credit agreement with Truist Bank remain unchanged in the Credit Agreement. Obligations outstanding under the 2018 Term Loan have a variable interest rate of LIBOR plus a margin of between 0.85% and 1.65% (based on the Company’s funded debt to EBITDA ratio) (2.30% at June 30, 2022). Obligations outstanding under the revolving credit facility and the 2017 Term Loan generally have a variable interest rate of one-month LIBOR (with a 0.25% floor on LIBOR for the revolving credit facility) plus a margin of between 0.68% and 1.50% (based on the Company’s funded debt to EBITDA ratio) (2.13% for the revolving credit facility and 2017 Term Loan at June 30, 2022). The Company is obligated to pay a commitment fee of 0.15% per annum on the average unused portion of the commitment under the revolving credit facility. The available balance under the revolving credit facility is reduced by outstanding letters of credit. As of June 30, 2022, there were no outstanding letters of credit under the revolving credit facility. Contractual principal payments for the 2017 Term Loan are as follows: remainder of 2022 - $3.0 million; 2023 - $6.0 million; and 2024 - $3.0 million. Contractual principal payments for the 2018 Term Loan are as follows: remainder of 2022 - $4.6 million; 2023 through 2025 - $9.3 million per year; and 2026 - $3.1 million. The term loans do not contain pre-payment penalties. The Credit Agreement contains customary events of default and negative covenants, including but not limited to those governing indebtedness, liens, fundamental changes, investments, restricted payments, and sales of assets. The Credit Agreement also requires the Company to maintain a fixed charge coverage ratio (as defined in the Credit Agreement) of at least 1.25:1 and a funded debt to EBITDA ratio (as defined in the Credit Agreement) not to exceed 5.0:1. As of June 30, 2022, the Company was in compliance with these ratios. The Credit Facilities are secured by substantially all of the operating assets of the Company as collateral, and the Company’s obligations under the Credit Facilities are guaranteed by all of its domestic subsidiaries. The Company’s obligations under the Credit Facilities are subject to acceleration upon the occurrence of an event of default as defined in the Credit Agreement. The Company is a party to an interest rate swap with a total notional value of $5.3 million as of June 30, 2022 pursuant to which it makes fixed payments and receives floating payments. The Company entered into the interest rate swap to offset changes in expected cash flows due to fluctuations in the associated variable interest rates. The Company’s interest rate swap expires in February 2024. The interest rate swap is not designated as a hedge transaction. Changes in fair value and gains and losses on settlement on the interest rate swap are recognized in interest expense in our statements of comprehensive income (loss). During the six months ended June 30, 2022, a gain of $0.1 million was recognized on the interest rate swap. No gain or loss was recognized on the interest rate swap during the six months ended June 30, 2021.

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI https://asc.fasb.org/topic&trid=2208564 + Details
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