v3.3.1.900

CREDIT FACILITY AND DEBT COVENANTS, LONG-TERM DEBT, AND FINANCING LEASE OBLIGATIONS | 12 Months Ended
--- | ---
Jan. 03, 2016
Debt Disclosure [Abstract] |
Credit Facility, Long-Term Debt and Debt Covenants Disclosure [Text Block] | (7) CREDIT FACILITY AND DEBT COVENANTS, LONG-TERM DEBT, AND FINANCING LEASE OBLIGATIONS On December 11, 2015, the Company and certain of its subsidiaries (collectively known as the “Borrower”) entered into its First Amendment to the Third Amended and Restated Credit Agreement (the “Credit Agreement”), which amended and restated the Company’s Third Amended and Restated Credit Agreement (the “Third Credit Agreement”) with Wells Fargo Bank, National Association as administrative agent and lender (the “Lender”). The Credit Agreement will expire on December 31, 2018 and contains a $3.0 million revolving credit facility (the “Facility”) with a $2.0 million letter of credit sublimit, and a term loan with a maximum of $12.0 million (the “Term Loan”). Se e “Long-Term Debt” below. Principal amounts outstanding under the Facility bear interest at either an adjusted Eurodollar rate plus an applicable margin or at a Base Rate plus an applicable margin. The Base Rate is defined in the Credit Agreement as th e greater of the Federal Funds Rate plus 1.5% or the Wells Fargo Prime rate. The applicable margin is initially 3.25% for Eurodollar Rate Loans, 1.75% for Base Rate Loans and 0.50% for Commitment Fees, and will thereafter be adjusted based upon the Adjust ed Leverage Ratio. The applicable margin will depend on the Company’s Adjusted Leverage Ratio, as defined, at the end of the previous quarter and will range from 2.2 5% to 3.25% for Eurodollar Rate Loans and from 0.75% to 1.75% for Base Rate Loans. Unused portions of the Facility will be subject to an unused Facility fee which will be equal to either 0.375% or 0.500% of the unused portion, depending on the Company’s Adjusted Leverage Ratio. Our rate for the unused portion of the Facility as of January 3, 2016, was 0.375%. Our current weighted average interest rate for the fiscal years ended January 3, 2016 and December 28, 2014 was 2.66% and 2.72%, respectively. The Facility contains customary affirmative and negative covenants for credit facilities of this type, including limitations on the Borrower with respect to indebtedness, liens, investments, distributions, mergers and acquisitions, dispositions of assets and transactions with affiliates of the Borrower, among others. The Facility also includes variou s financial covenants that include maximum target capital expenditures, cash flow ratios, minimum EBITDA ratios and adjusted leverage ratios. The Credit Agreement currently provides for up to $2.0 million in letters of credit to be used by the Company, w ith any amounts outstanding reducing our availability for general corporate purchases, and also allows for the termination of the Facility by the Borrower without penalty at any time. At January 3, 2016 we had no borrowings under this Facility, $12.0 millio n of outstanding principal under the Term Loan, and approximately $1.1 million in letters of credit for real estate locations. As of January 3, 2016, we were in compliance with all of our covenants. The Company was also generally prohibited from making any Restricted Payment (as defined in the Credit Agreement) and from making any Growth Capital Expenditures (as defined in the Credit Agreement) in the fiscal quarter ending December 31, 2015 and, for the subsequent q uarters, is prohibited from making Growth Capital Expenditures costing in excess of $2 million in the aggregate during any fiscal year. Under the terms of the Amendment, the Company is required to pay $150,000 each month commencing after the First Amendmen t Effective Date as a principal reduction of the term loans and are required to make mandatory principal prepayments in an amount equal to specified percentages of the net cash proceeds of Dispositions (as defined in the First Amendment) based upon the Adj usted Leverage Ratio. These mandatory principal prepayments will be applied first to the term loans and second to any revolving loans then outstanding. If the bank were to call the Facility prior to expiration, the Company believes there are multiple opti ons available to obtain other sources of financing. Although possibly at different terms, the Company believes there would be other lenders available and willing to finance a new credit facility. However, if replacement financing were unavailable to us, termination of the Facility without adequate replacement would have a material and adverse impact on our ability to continue our business operations. We expect to use any borrowings under the Credit Agreement for general working capital purchases as ne eded. Under the Facility, the Borrower has granted the Lender a security interest in all current and future personal property of the Borrower. Our facility consisted of the following at:
| (in thousands) |  |  | January 3, |  |  | December 28,
|  |  |  |  | 2016 |  |  | 2014
| Credit facility - Wells Fargo |  | $ | --- |  | $ | 5,000
| Less: current maturities |  |  | --- |  |  | ---
|  | Long-term credit facility net of current portion |  | $ | --- |  | $ | 5,000
Required principal payments under our credit facility are as follows: Long-Term Debt Principal amounts outstanding under the Term Loan bear interest at the same rate as the Facility. The weighted average intere st rate of the Term Loan for fiscal year s ended January 3, 2016 and December 28, 2014 was 2.77% and 2.12%, respectively. The Company is required to pay $150,000 each month commencing after the First Amendment Effective Date as a principal reduction of the term loans and are required to make mandatory principal prepayments in an amount equal to sp ecified percentages of the net cash proceeds of Dispositions (as defined in the First Amendment) based upon the Adjusted Leverage Ratio. The $150,000 monthly payments are payable until December 31, 2018 at which time the Company will have a balloon payment of approximately $6.8 million plus interest. These mandatory principal prepayments will be applied first to the term loan and second to the revolving credit facility then outstanding. Long-term debt consisted approximately of the following at:
| (in thousands) |  | January 3, |  | December 28,
|  |  |  | 2016 |  | 2014
| Notes Payable - Wells Fargo - minimum monthly |  |  |  |  |  |
| installments are $150 until December 31, 2018; |  |  |  |  |  |
| at which time we have a balloon payment |  |  |  |  |  |
| of approximately $6,750 plus interest at an |  |  |  |  |  |
| adjusted Eurodollar rate plus the applicable margin. |  | $ | 12,000 |  | $ | 4,023
| Less: current maturities |  |  | (1,800) |  |  | (680)
|  | Long-term debt net of current maturities |  | $ | 10,200 |  | $ | 3,343
Required principal payments on long-term debt are as follows:
| (in thousands) |  |
| Fiscal Year |  |
|  | 2016 | $ | 1,800
|  | 2017 |  | 1,800
|  | 2018 |  | 8,400
|  |  | Total | $ | 12,000
Financing Lease Obligation On March 31, 1999, the Company completed a $4.5 million financing obligation involving three existing restaurants as part of a sale/leaseback transaction. Under this financing, we are obligated to make monthly payments of $5 6,627 (which increases 4.04% every two years) for a minimum of 20 years. At the end of the 20 year lease term, we may extend the lease for up to two additional five year terms. We also have the option to purchase the leased restaurants on the 20th annive rsary of the lease term and between the first and second five year option terms. The option purchase price is the greater of $4.5 million or the fair market value, as defined in the agreement, of the properties at the time the purchase option is exercised. Based upon our continued involvement in the leased property and its purchase option, the transaction has been accounted for as a financing arrangement. Accordingly, the three existing restaurants are included in property, equipment and leasehold improve ments, and are be ing depreciated over a 2 0 year term. In addition, as the monthly lease payments are made, the obligation will be reduced by the 20 year amortization table. Financing lease obligations consisted of the following at:
| (in thousands) |  | January 3, |  | December 28,
|  |  |  | 2016 |  | 2014
| Financing lease – Spirit Financial – monthly installments of $54-$59 – including an interest rate of 9.63%, due in March 2019. |  | $ | 3,150 |  | $ | 3,501
| Less: current maturities |  |  | (393) |  |  | (351)
|  | Long-term financing lease net of current maturities |  | $ | 2,757 |  | $ | 3,150
Required future minimum payments under our financing leases are as follows:
| (in thousands) |  |
| Fiscal Year |  |
|  | 2016 | $ | 679
|  | 2017 |  | 700
|  | 2018 |  | 707
|  | 2019 |  | 1,838
|  |  | Total | $ | 3,924

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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration