XML 33 R10.htm IDEA: XBRL DOCUMENT

Long Term Debt and Other Credit Arrangements

12 Months Ended

Apr. 30, 2012

Long-term Debt and Other Credit Arrangements [Abstract]

Long-term Debt and Other Credit Arrangements

Note 3—Long-term Debt and Other Credit Arrangements

In August 2011, the Company amended its existing bank agreement and increased its unsecured revolving credit facility to $15,000,000 from $14,000,000 and extended the facility’s expiration date to July 31, 2014. Monthly interest payments under the facility, as amended, are payable calculated at the 30-day LIBOR Market Interest Rate plus a variable rate ranging from 1.575% to 2.175%. The borrowing rate at April 30, 2012 was 2.414%, including a variable rate adjustment of 2.175%. The credit facility includes financial covenants with respect to certain ratios, including (a) debt-to-net worth, (b) fixed charge coverage, and (c) asset coverage. At April 30, 2012 and 2011, the Company was in compliance with all of the financial covenants. In July 2009, the Company entered into an interest rate swap agreement whereby the interest rate payable by the Company on $2 million of outstanding advances under the revolving credit facility effectively converted to a fixed rate of 3.9% for the period beginning August 3, 2009 and ending August 1, 2012.

At April 30, 2012, there were advances of $6.8 million outstanding under the revolving credit facility. Additionally, at April 30, 2012, the Company’s Asia subsidiaries had standby letters of credit in the aggregate amount of $2.2 million outstanding under the credit facility to guarantee performance on certain customer projects. All of the letters of credit outstanding at April 30, 2012 have expiration dates during fiscal year 2013.

On August 2, 2010, the Company amended its existing bank agreement covering its unsecured revolving credit facility to provide for an additional $4 million seven-year term loan secured by the Company’s real property and equipment located in Statesville, North Carolina. Amounts outstanding under the term loan were as follows as of April 30:


$ in thousands	2012		2011
Term loan payable	$	3,667	$	3,867
Less: current portion		(200)		(200)

Long-term debt	$	3,467	$	3,667

The term loan requires monthly principal payments of $17,000, plus interest calculated at the 30-day LIBOR Market Index Rate plus 1.575%, with payment of the outstanding principal balance and any unpaid interest at the term loan maturity date. In June 2010, the Company entered into an interest rate swap agreement with a notional amount that is adjusted to match the outstanding principal on the related debt. Accordingly, the interest rate payable by the Company on the term loan was effectively converted to a fixed rate of 4.875% beginning August 2, 2010. Scheduled annual principal payments for the term loan are $200,000 for fiscal years 2013 through 2017, and $2,667,000 for fiscal year 2018.

Obligations for leases classified as capital leases were $36,000 at April 30, 2012. All obligations for capital leases are scheduled to be paid in full in fiscal year 2013.