6. LONG-TERM DEBT

12 Months Ended

Dec. 31, 2013

Debt Disclosure [Abstract]

LONG-TERM DEBT

Long-term debt consisted of the following:

	December 31, 2013			December 31, 2012
Secured credit agreement - Whitney Bank	$	1,917		$	2,909
Note payable		2,906			–
Capital lease obligations		111			707
Total long-term debt		4,934			3,616
Less: Current portion of long-term debt		(1,716	)		(680	)
Long-term debt, net of current portion	$	3,218		$	2,936

Whitney Credit Agreement

Since 2008, we have maintained a credit facility (the “Facility”) with Whitney Bank, a state chartered bank (“Whitney”). The Facility has been amended and restated several times, most recently on March 5, 2013. The current relevant terms of the Facility include:

· a committed amount under the revolving credit facility (“Revolving Credit Facility”) of $5,000, at an interest rate of 4.0 percent annum, maturing April 15, 2014;

· a real estate term facility (“RE Term Facility”) of $2,000, at an interest rate of 4.0 percent annum, maturing April 15, 2018, with the Company obligated to make monthly increasing repayments of principal (along with accrued and unpaid interest thereon) starting at $8, beginning April 1, 2013; and

· outstanding balances under the Facility are secured by all of the Company’s assets.

As of December 31, 2013, the Company’s indebtedness under the Revolving Credit Facility and the RE Term Facility was $0 and $1,917, respectively. We are currently in negotiations with Whitney for an extension of the Revolving Credit Facility beyond the current April 15, 2014 maturity. We are confident that we will be able to reach an agreement regarding this extension on or before April 15, 2014.

Our credit agreement with Whitney obligates us to comply with the following financial covenants:

· Leverage Ratio - The ratio of total debt to consolidated EBITDA must be less than 3.0 to 1.0; actual Leverage Ratio as of December 31, 2013: 2.78 to 1.0.

· Fixed Charge Coverage Ratio - The ratio of consolidated EBITDA to consolidated net interest expense, plus principal payments on total debt, must be greater than 1.5 to 1.0; actual Fixed Charge Coverage Ratio as of December 31, 2013: 1.51 to 1.0.

· Tangible Net Worth - Our consolidated net worth, after deducting other assets as are properly classified as “intangible assets,” plus 50 percent of net income, after provision for taxes, must be in excess of $13,000; actual Tangible Net Worth as of December 31, 2013: $25,344.

· Moreover, we continue to have obligations for other covenants, including, among others, limitations on issuance of common stock, liens, transactions with affiliates, additional indebtedness and permitted investments.

As of December 31, 2013 and 2012, we were in compliance with all of the covenants.

Other Debt

On November 5, 2013, we entered into a Purchase and Sale Agreement (“PSA”) with a customer to buy back a 3.5 metric ton portable umbilical carousel, which we had fabricated specifically for this customer. The PSA calls for purchase price of $3,293 to be paid in 24 monthly installments of $137.2, commencing November 5, 2013 through October 5, 2015. The obligation is non-interest bearing. The balance of this debt at December 31, 2013 was $2,906.

Debt Maturities

Maturities of long-term debt as of December 31, 2013 were as follows:

	Debt Maturities
Years ending December 31,:
2014	$	1,716
2015		1,510
2016		111
2017		116
2018		1,481
	$	4,934