XML 47 R14.htm IDEA: XBRL DOCUMENT
v3.19.3

DEBT | 12 Months Ended
--- | ---
Sep. 30, 2019
DEBT |
DEBT | 6. DEBT: The Company primarily finances its operations through a credit facility agreement (the “Facility”) and long-term debt agreements with banks. The Facility is provided through Bank of America acting as the senior agent and with BMO Harris Bank participating in a loan syndication. CREDIT FACILITY
|  | 2019 |  | 2018
Revolving portion of the Facility, interest payable at 3.89% at September 2019 |  | $ | 60,376,714 |  | $ | 35,428,597
The Facility included the following significant terms at September 2019:
| · |  | A November 2022 maturity date without a penalty for prepayment.
| · |  | $70.0 million revolving credit limit.
| · |  | Loan accordion allowing the Company to increase the size of the credit facility agreement by $25.0 million.
| · |  | A provision providing an additional $10.0 million of credit advances for certain inventory purchases.
| · |  | Evergreen renewal clause automatically renewing the agreement for one year unless either the borrower or lender provides written notice terminating the agreement at least 90 days prior to the end of any original or renewal term of the agreement.
| · |  | The Facility bears interest at either the bank’s prime rate, or at LIBOR plus 125 ‑ 150 basis points depending on certain credit facility utilization measures, at the election of the Company.
| · |  | Lending limits subject to accounts receivable and inventory limitations.
| · |  | An unused commitment fee equal to one‑quarter of one percent (1/4%) per annum on the difference between the maximum loan limit and average monthly borrowings.
| · |  | Secured by collateral including all of the Company’s equipment, intangibles, inventories, and accounts receivable.
| · |  | A financial covenant requiring a fixed charge coverage ratio of at least 1.0 as measured by the previous twelve month period then ended only if excess availability falls below 10% of the maximum loan limit as defined in the credit agreement. The Company’s fixed charge coverage ratio is over 1.0 for the trailing twelve months.
| · |  | Provides that the Company may pay up to $2.0 million of dividends on its common stock annually provided the Company is not in default before or after the dividend. Additionally, the Company may pay dividends on its common stock in excess of $2.0 million annually provided the Company meets certain excess availability and proforma fixed charge coverage ratios and is not in default before or after the dividend.
During fiscal 2019, total borrowings and payments on the Facility were approximately $1.4 billion and $1.4 billion, respectively, resulting in net advances of $24.9 million. Total borrowings and repayment on the Facility during fiscal 2018 were approximately $1.4 billion and $1.4 billion, respectively, resulting in net advances of $6.4 million. The amount available for use on the Facility at any given time is subject to a number of factors including eligible accounts receivable and inventory balances that fluctuate day‑to‑day. Based on our collateral and loan limits as defined in the Facility agreement, the credit limit of the Facility at September 2019 was $79.5 million, of which $60.4 million was outstanding, leaving $19.1 million available. LONG-TERM DEBT In addition to the Facility, the Company also had the following long‑term obligations at fiscal 2019 and fiscal 2018.
|  | 2019 |  | 2018
Note payable to a bank (“Real Estate Loan”), interest payable at a fixed rate of 2.99% with monthly installments of principal and interest of $38,344 through August 2021 with remaining principal due September 2021, collateralized by three distribution facilities |  | $ | 2,263,040 |  | $ | 2,648,179
Note payable, interest payable at a fixed rate of 4.50% with quarterly installments of principal and interest of $49,114 through June 2023 with remaining principal due September 2023 |  |  | 1,395,351 |  |  | 1,476,772
Note payable, interest-free with varying installments during fiscal 2019 |  |  | — |  |  | 629,746
|  |  | 3,658,391 |  |  | 4,754,697
Less current maturities |  |  | (532,747) |  |  | (1,096,306)
|  | $ | 3,125,644 |  | $ | 3,658,391
The aggregate minimum principal maturities of the long‑term debt for each of the next five fiscal years are as follows:
Fiscal Year Ending |  |  |
2020 |  | $ | 532,747
2021 |  |  | 2,008,390
2022 |  |  | 148,665
2023 |  |  | 968,589
2024 |  |  | —
|  | $ | 3,658,391
Market rate risk for fixed rate debt is estimated as the potential increase in fair value of debt obligations resulting from decreases in interest rates. Based on the borrowing rates currently available to the Company for bank loans with similar terms and average maturities, the fair value of the Company’s long‑term debt approximated its carrying value at September 2019. Cross Default and Co‑Terminus Provisions The Company owns real estate in Bismarck, ND, Quincy, IL, and Rapid City, SD, which is financed through a single term loan with BMO Harris Bank (the “Real Estate Loan”) which is also a participant lender on the Company’s revolving line of credit. The Real Estate Loan contains cross default provisions which cause the loan to be considered in default if the loans where BMO is a lender, including the revolving credit facility, is in default. There were no such cross defaults at September 2019. In addition, the Real Estate Loan contains co‑terminus provisions which require all loans with BMO to be paid in full if any of the loans are paid in full prior to the end of their specified terms. Other The Company has issued a letter of credit for $0.5 million to its workers’ compensation insurance carrier as part of its self‑insured loss control program.

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 information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration