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Long-Term Debt

6 Months Ended

Jun. 30, 2012

(4)

Long-Term Debt

Long-term debt is comprised of the following:


	December 31, 2011			June 30, 2012
Credit facility:
Revolving credit loan	$	54,826,716		$	54,826,716
Term loan		71,906,903			65,341,595

		126,733,619			120,168,311
Less current installments		(6,848,276	)		(6,942,545	)

	$	119,885,343		$	113,225,766

As of June 30, 2012, the credit facility consists of a revolving credit loan with a maximum commitment of $65.0 million and a term loan with a remaining balance of $65.3 million. As of June 30, 2012, the Company had $10.2 million in remaining commitments available under the revolving credit loan of its credit facility. The revolving credit loan includes a $5.0 million sub-limit for letters of credit which may not be increased. At the Company’s election, the revolving credit loan and term loan may bear interest at either the base rate or LIBOR plus a margin that is determined by the Company’s debt to operating cash flow ratio. The base rate is equal to the higher of the prime rate, the federal funds effective rate, or the one month LIBOR quoted rate plus 1.0%. Interest on base rate loans is payable quarterly through maturity. Interest on LIBOR loans is payable on the last day of the selected LIBOR period and, if the selected period is longer than three months, every three months after the beginning of the LIBOR period. The revolving credit loan and term loan carried interest, based on LIBOR, at 3.8125% and 3.8021% as of December 31, 2011 and June 30, 2012, respectively, and mature on June 30, 2015. The scheduled reductions in the amount available under the revolving credit loan may require principal repayments if the outstanding balance at that time exceeds the maximum amount available under the revolving credit loan.

As of June 30, 2012, the scheduled repayments of the credit facility for the remainder of 2012 and the next three years are as follows:


	Revolving credit loan		Term loan		Total credit facility
2012	$	—	$	3,267,080	$	3,267,080
2013		5,146,508		7,759,315		12,905,823
2014		20,426,389		8,167,700		28,594,089
2015		29,253,819		46,147,500		75,401,319

Total	$	54,826,716	$	65,341,595	$	120,168,311

The credit agreement requires the Company to comply with certain financial covenants which are defined in the credit agreement. As of June 30, 2012, these financial covenants included:

•

Consolidated Total Debt Ratio. The Company’s consolidated total debt for the four quarters ending on the last day of each fiscal quarter through maturity must not exceed 4.75 times its consolidated operating cash flow for the four quarters then ended.

•

Consolidated Interest Coverage Ratio. The Company’s consolidated operating cash flow for the four quarters ending on the last day of each fiscal quarter through maturity must not be less than 2.0 times its consolidated cash interest expense for the four quarters then ended.

•

Consolidated Fixed Charge Coverage Ratio. The Company’s consolidated operating cash flow for the four quarters ending on the last day of each fiscal quarter through maturity must not be less than 1.1 times its consolidated fixed charges for the four quarters then ended. Consolidated fixed charges include cash paid for interest, income taxes, capital expenditures, scheduled principal repayments, and agency and commitment fees.

Failure to comply with these financial covenants, scheduled interest payments, scheduled principal repayments, or any other terms of its credit agreement could result in the acceleration of the maturity of its outstanding debt. The Company believes that it will have sufficient liquidity and capital resources to permit it to meet its financial obligations for at least the next twelve months. As of June 30, 2012, the Company was in compliance with all applicable financial covenants under its credit agreement.

The credit facility is secured by substantially all of the Company’s assets and is guaranteed jointly and severally by all of the Company’s subsidiaries. The guarantees were issued to the Company’s lenders for repayment of the outstanding balance of the credit facility. If the Company defaults under the terms of the credit agreement, the subsidiaries may be required to perform under their guarantees. As of June 30, 2012, the maximum amount of undiscounted payments the subsidiaries would have had to make in the event of default was $120.2 million. The guarantees for the revolving credit loan and term loan expire on June 30, 2015.