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Long-term Debt and Other Credit Arrangements
 9 Months Ended
Jan. 31, 2026
Debt Disclosure [Abstract]  
Long-term Debt and Other Credit Arrangements Long-term Debt and Other Credit Arrangements
The components of the Company's long-term debt at January 31, 2026 and April 30, 2025, excluding lease, deferred financing costs of $0.4 million and $0.8 million related to the debt at each respective date, and sale-leaseback-related activity, as presented on the Condensed Consolidated Balance Sheet were as follows:
($ in thousands)
January 31, 2026April 30, 2025
Seller Notes
$— $23,935 
Term Loan11,500 13,750 
First Amendment Term Loan9,833 — 
Total outstanding balance under Amended Loan Agreement
21,333 13,750 
Total long-term debt
$21,333 $37,685 
Current portion of Term Loan
$3,000 $3,000 
Current portion of First Amendment Term Loan
2,000 — 
Current portion of Amended Loan Agreement balance
5,000 3,000 
Total current portion of long-term debt
5,000 3,000 
Seller Notes
— 23,935 
Non-current portion of Term Loan
8,500 10,750 
Non-current portion of First Amendment Term Loan
7,833 — 
Non-current portion of Amended Loan Agreement balance
16,333 10,750 
Total non-current portion of long-term debt
16,333 34,685 
Total long-term debt
$21,333 $37,685 
See Note J, Leases, for more information on any long-term debt related to the Company's lease portfolio and Note I, Sale-Leaseback Financing Transaction, for more information on any long-term debt related to the Company's sale-leaseback financing transaction.
PNC Loan Agreement
As noted in Note C, Nu Aire Acquisition, the Company entered into a Loan Agreement (the “Loan Agreement”) with PNC on November 1, 2024. The loans governed by the Loan Agreement include (i) a $20.0 million committed senior secured revolving
line of credit facility (the “Revolving Credit Facility”), which contains an option to increase the facility upon request by the Company and approval by PNC, in its discretion, by an additional $10.0 million; and (ii) a $15.0 million term loan (the “Term Loan”). The Revolving Credit Facility and Term Loan mature on November 1, 2029.
On December 4, 2025, the Company entered into a First Amendment to Loan Agreement ("First Amendment") with PNC. The First Amendment amends the Loan Agreement (together with the "First Amendment," the "Amended Loan Agreement") between the Company and PNC to, among other things, (i) permit the Company to repay in full the outstanding principal balances of the subordinated seller notes issued by the Company in connection with its acquisition of Nu Aire in November 2024, together with all accrued but unpaid interest thereon (the "Seller Note Repayment"), (ii) provide for an additional $10.0 million term loan the proceeds of which are to be used by the Company to partially fund the Seller Note Repayment (the "First Amendment Term Loan" and together with the Term Loan, the "Term Loans"), and (iii) permit the Company to draw and use available funds under the revolving line of credit established by the Loan Agreement to partially fund the Seller Note Repayment. The First Amendment Term Loan matures on December 4, 2030.
The Revolving Credit Facility and the Term Loans can be paid at any time without penalty.
There were no advances outstanding under the Revolving Credit Facility at January 31, 2026 and April 30, 2025. Amounts available under the Revolving Credit Facility were $20.0 million at January 31, 2026 and April 30, 2025.
For the Revolving Credit Facility, the interest rate will be selected by the Company at each advance from one of two options. Option 1 is a base rate option. Option 2 is a daily secured overnight financing rate. There is an unused fee of 0.15% to 0.25%, determined by the ratio of senior debt to the Company’s EBITDA, of the unused daily balance of the Revolving Credit Facility. For the Term Loan, the principal will be paid in 60 substantially equal monthly installments over the term of the Loan Agreement. For the First Amendment, the principal will be paid in 59 substantially equal monthly installments over the term of the agreement. Interest will be paid at the same time and calculated on the outstanding principal balance at an interest rate equal to the rate under Option 2 of the Revolving Credit Facility. The borrowing rate on the Term Loans was 5.25% as of January 31, 2026, as compared to 5.96% as of April 30, 2025. The Company recorded interest expense of $249,000 and $641,000 related to the Term Loans for the three and nine months ended January 31, 2026, respectively. The Company recorded interest expense of $236,000 related to the Term Loan for the three and nine months ended January 31, 2025.
The Amended Loan Agreement has customary reporting covenants. The principal financial covenants require that (1) the Company maintain on a consolidated basis a ratio of senior funded indebtedness to EBITDA of not more than 2.50 to 1.00 and (2) a fixed charge coverage ratio of at least 1.20 to 1.00. The Loan Agreement also contains covenants prohibiting under certain circumstances (1) the incurrence of certain indebtedness, (2) the granting of security interests by the Company to persons other than PNC, (3) the delivery of guaranties for debts of third parties, and (4) certain transactions not in the ordinary course of business. At January 31, 2026 and April 30, 2025, the Company was in compliance with all of the financial covenants under the Amended Loan Agreement.
Seller Notes
As noted in Note C, Nu Aire Acquisition, $23.0 million of the aggregate purchase price paid in the Nu Aire Acquisition was paid by the issuance of subordinated seller notes (the "Seller Notes") entered into by the Company on November 1, 2024. The Seller Notes accrued interest at 8% per annum and were scheduled to mature on November 1, 2027, at which time the outstanding principal amount and all unpaid accrued interest were to become due and payable by the Company.
On December 4, 2025, the Company completed the Seller Note Repayment. Pursuant to the terms of the Seller Notes, the Seller Notes could be prepaid, in full or in part, at any time without prepayment penalty, premium, or other fee. Upon completion of the Seller Note Repayment, all obligations, covenants, debts and liabilities of the Company under the Seller Notes were satisfied and discharged in full, and the Seller Notes and all other documents entered into in connection with the Seller Notes were terminated.
Prior to the Seller Note Repayment, the Company accrued $905,000 in PIK interest for the six month period ended October 31, 2025 and $935,000 for the fiscal year ended April 30, 2025. The Company made a payment of $1,840,000 during the three month period ended October 31, 2025 for its accrued PIK interest, resulting in a PIK interest balance of zero as of October 31, 2025. As part of the Seller Note Repayment, the Company repaid the outstanding Seller Notes balance of $23.0 million and accrued but unpaid interest balance of $173,000. The Company incurred $0.3 million in related expenses as a result of the Seller Note Repayment.
Mid Cap Revolving Credit Facility
On September 30, 2024, the Company terminated the Company's previous revolving credit facility with Mid Cap Funding IV Trust (the "Mid Cap Revolving Credit Facility"). At the time of termination, there was a $3.0 million balance outstanding under the Mid Cap Revolving Credit Facility, which was paid off in full as part of the termination. The Company incurred $0.5 million in related expenses as a result of the termination.
International Subsidiaries Short-Term Borrowings
The Company's International subsidiaries had a balance outstanding of $1,542,000 in short-term borrowings related to overdraft protection and short-term loan arrangements at January 31, 2026. The Company's International subsidiaries had a balance outstanding at April 30, 2025 of $986,000 in short-term borrowings related to overdraft protection and short-term loan arrangements.