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Line of Credit
6 Months Ended
Jun. 30, 2017
Debt Disclosure [Abstract]  
Line of Credit
Line of Credit
The Company has a $10.0 million revolving line of credit with a domestic bank. At both June 30, 2017 and December 31, 2016, there were no borrowings under the line. As of June 30, 2017, the Company had letters of credit outstanding of approximately $2.7 million under the facility and available borrowing of approximately $7.3 million. The line is secured by substantially all of the assets of the Company, and bears interest at varying rates (currently LIBOR plus 1.75% or Prime less 0.50%). The line requires monthly payments of interest only on outstanding balances. The line of credit matured on July 31, 2017, which was subsequently extended for 90-day term. The Company is currently evaluating its credit needs and anticipates entering into a longer term arrangement prior to the October 31, 2017 maturity date. The Company’s agreement with the bank requires it to comply with certain financial and other covenants including maintenance of a maximum leverage ratio and minimum fixed charge coverage ratio. The leverage ratio (ratio of total liabilities to tangible net worth) can be no greater than 1:1, and the fixed charge coverage ratio can be no less than 1.25:1, based upon a trailing twelve-month period. At June 30, 2017, the Company’s leverage ratio was 1.17:1 and its fixed charge coverage ratio was 2.65:1. The Company's violation of the leverage ratio requirement was waived by the bank as of June 30, 2017.