XML 20 R10.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Credit Facilities | 6 Months Ended
--- | ---
Mar. 31, 2017
Debt Disclosure [Abstract] |
Credit Facilities | Credit Facilities A summary of our loan facilities and subordinated debt financing as of March 31, 2017 is as follows:
|  | ($ in Millions)
|  | As of March 31, 2017
Lender |  | Arrangement |  | Loan Balance |  | Interest |  | Maturity Date
Fifth Third Bank |  | Secured term loan $25 million ceiling (a) |  | $ | 21.6 |  |  | LIBOR* + 3.0% |  | 05/01/21
Fifth Third Bank |  | Secured revolving line of credit $10 million ceiling (b) |  | $ | — |  |  | LIBOR* + 3.0% |  | 05/01/18
* LIBOR rate as of March 31, 2017 was 1.15%
(a) Represents the principal amounts payable on our Term Loan with Fifth Third Bank that partially funded our acquisition of Danya on May 3, 2016. The $25.0 million term loan from Fifth Third Bank was funded at closing and is secured by liens on substantially all of the assets of the Company. The principal of the Term Loan is payable in fifty-nine consecutive monthly installments of $312,500 beginning on June 1, 2016 with the remaining balance due on May 1, 2021. The Term Loan agreement requires compliance with a number of financial covenants and contains restrictions on our ability to engage in certain transactions. We are in compliance with all loan covenants and restrictions. Among other matters, we must comply with limitations on: granting liens; incurring other indebtedness; maintenance of assets; investments in other entities and extensions of credit; mergers and consolidations; and changes in nature of business. The loan agreement also requires us to comply with certain financial covenants including: (i) a minimum fixed charge coverage ratio of at least 1.35 to 1.0 commencing with the quarter ending June 30, 2016, and for all subsequent periods, and (ii) a Funded Indebtedness to Adjusted EBITDA ratio not exceeding the ratio of 2.99 to 1.0 at closing and thereafter a ratio ranging from 3.5 to 1.0 for the period through September 30, 2016 to 2.5 to 1.0 for the period ending September 30, 2018. In addition to monthly payments of the outstanding indebtedness, the loan agreement also requires prepayments of a percentage of excess cash flow, as defined in the loan agreement. Accordingly, a portion of our cash flow from operations will be dedicated to the repayment of our indebtedness. (b) The secured revolving line of credit from Fifth Third Bank has a ceiling of up to $10.0 million, of which $5.0 million was drawn at closing to cover partial financing of the Danya purchase. Borrowing on the line of credit is secured by liens on substantially all of the assets of the Company. At December 31, 2016, DLH had repaid all draws on our revolving line of credit with no remaining balance. The Company's total borrowing availability, based on eligible accounts receivables at March 31, 2017, was $6.3 million. This capacity was comprised of $0.9 million in a stand-by letter of credit and unused borrowing capacity of $5.4 million. The revolving line of credit is subject to loan covenants as described above in the Term Loan, and DLH is fully compliant with those covenants. Management believes that: (a) cash and cash equivalents of approximately $3.1 million as of March 31, 2017; (b) the amount available under its line of credit that was in effect at March 31, 2017; and (c) planned operating cash flow should be sufficient to support the Company's operations for twelve months from the date of these financial statements.

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for long-term debt. + 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 210.5-02.22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
Name: | us-gaap_LongTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration