XML 23 R12.htm IDEA: XBRL DOCUMENT
v3.10.0.1

LONG-TERM DEBT | 3 Months Ended
--- | ---
Sep. 29, 2018
Debt Disclosure [Abstract] |
LONG-TERM DEBT | Long-Term Debt On September 30, 2018, the Company entered into a Fourth amendment to the amended and restated credit agreement to extend the maturity date to August 31, 2021 on the term loan in the amount of $35.0 million that was used to acquire all of the outstanding shares of CDR Manufacturing, Inc. (dba Ayrshire Electronics). The term loan requires quarterly payments of $1.25 million through June 15, 2021, with a final payment of the remaining outstanding balance on August 31, 2021. The Company had an outstanding balance of $15.0 million and $16.3 million under the term loan as of September 29, 2018 and June 30, 2018, respectively. On August 6, 2015, the Company entered into a First Amendment to the amended and restated credit agreement extending the limit on our line of credit facility to $45.0 million as evidenced by the Second Replacement Revolving Note. The agreement specifies that the proceeds of the revolving line of credit be used primarily for working capital and general corporate purposes. The line of credit is secured by substantially all of the assets of the Company. On September 30, 2018, the Company entered into a Fourth amendment to the amended and restated credit agreement to extend the maturity date to November 1, 2023, at which time all outstanding balances are payable. As of September 29, 2018, the Company had an outstanding balance under the credit facility of $18.2 million, $0.4 million in outstanding letters of credit and $26.4 million available for future borrowings. As of June 30, 2018, the Company had an outstanding balance under the credit facility of $16.2 million, $0.4 million in outstanding letters of credit and $28.4 million available for future borrowings. On December 28, 2016, the Company entered into an equipment term loan agreement in the amount of $3.9 million in order to further invest in production equipment. The equipment term loan is collateralized by production equipment. Under this loan agreement, equal quarterly payments of approximately $0.2 million commenced on March 31, 2017 and will continue through the maturity of the equipment term loan on June 30, 2021. Amortization of the debt issuance costs is reported as interest expense on the consolidated income statement. As of September 29, 2018, the Company had an outstanding balance of $2.4 million. As of June 30, 2018, the Company had an outstanding balance of $2.6 million. The Company has available an additional $2.1 million which can be borrowed in the future under this agreement. Borrowings under the revolving line of credit, term loan and equipment term loan bear interest at either a “Base Rate” or a “Fixed Rate,” as elected by the Company. The base rate is the higher of the Wells Fargo Bank prime rate, daily one month London Interbank Offered Rate (LIBOR) plus 1.5%, or the Federal Funds rate plus 1.5%. The fixed rate is LIBOR plus 1.75%, LIBOR plus 2.00%, or LIBOR plus 2.25% depending on the level of the Company’s trailing four quarters Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA). The interest rates on outstanding debt as of September 29, 2018 range from 4.07% - 5.25% compared to 4.09% - 5.00% as of June 30, 2018. Debt maturities as of September 29, 2018 for the next five years and thereafter are as follows (in thousands):
Fiscal Years Ending | Amount
2019 (1) | $ | 4,403 |
2020 | 5,871 |
2021 | 5,871 |
2022 | 1,250 |
2023 | — |
Thereafter | 18,170 |
Total debt | $ | 35,565 |
Unamortized debt issuance costs | $ | (82 | )
Long-term debt, net of debt issuance costs | $ | 35,483 |
(1) Represents scheduled payments for the remaining nine-month period ending June 29, 2019. The Company must comply with certain financial covenants, including a cash flow leverage ratio, an asset coverage ratio, and a fixed charge coverage ratio. The credit agreement requires the Company to maintain a minimum profit threshold, limits the maximum capital lease expenditures and restricts the Company from declaring or paying dividends in cash or stock without prior bank approval. The Company was not in compliance with all financial covenants as of June 30, 2018 due to the loss recognized by the arbitration settlement. However, the Company obtained a waiver from Wells Fargo Bank with respect to the noncompliance as of June 30, 2018. The Company was in compliance with all financial covenants as of September 29, 2018.

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://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_LongTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration