Note 8 - Debt and Credit Agreements

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Debt Disclosure [Text Block]

NOTE 8 — DEBT AND CREDIT AGREEMENTS

The Company’s outstanding debt balances as of March 31, 2024 and December 31, 2023 consisted of the following:

	March 31,			December 31,
	2024			2023
Line of credit	$	—		$	4,657
Other notes payable		1,826			1,361
Long-term debt		5,864			6,135
Total debt		7,690			12,153
Less: current maturities		(1,428	)		(5,903	)
Long-term debt, net of current maturities	$	6,262		$	6,250

Credit Facility

On August 4, 2022, the Company entered into a credit agreement (the “2022 Credit Agreement”) with Wells Fargo which replaced its prior credit facility and provided the Company and its subsidiaries with a $35,000 senior secured revolving credit facility (which may be further increased by up to an additional $10,000 upon the request of the Company and at the sole discretion of Wells Fargo) and a $7,578 senior secured term loan (collectively, the “2022 Credit Facility”). The proceeds of the 2022 Credit Facility are available for general corporate purposes, including strategic growth opportunities. Deferred financing costs related to the 2022 Credit Facility were $333 primarily related to the revolving credit loan, which is net of accumulated amortization of $167, at March 31, 2024. Deferred financing costs related to the 2022 Credit Facility were $359 which is net of accumulated amortization of $141, at December 31, 2023. These costs are included in the “Other assets” line item of the Company's condensed consolidated financial statements at March 31, 2024 and December 31, 2023. 

On February 8, 2023, the Company executed Amendment No. 1 to Credit Agreement and Limited Waiver which waived the Company’s fourth quarter minimum EBITDA (as defined in the 2022 Credit Agreement) requirement for the period ended December 31, 2022, amended the Fixed Charge Coverage Ratio (as defined in the 2022 Credit Agreement) requirements for the twelve-month period ending January 31, 2024 through and including June 30, 2024 and each twelve-month period thereafter, and amended the minimum EBITDA requirements applicable to the twelve-month periods ending March 31, 2023, June 30, 2023, September 30, 2023, and December 31, 2023.

The 2022 Credit Agreement, as amended, contains customary covenants limiting the Company’s and its subsidiaries’ ability to, among other things, incur liens, make investments, incur indebtedness, merge or consolidate with others or dispose of assets, change the nature of its business, and enter into transactions with affiliates. The initial term of the revolving credit facility matures August 4, 2027. The term loan also matures on August 4, 2027, with monthly payments based on an 84-month amortization.

As of March 31, 2024, there was $5,864 of outstanding indebtedness under the 2022 Credit Facility, with the ability to borrow an additional $21,326. As of March 31, 2024, the Company was in compliance with all financial covenants under the 2022 Credit Facility. As of March 31, 2024, the effective interest rate of the senior secured revolving credit facility was 7.32% and the senior secured term loan was 7.82%. As of December 31, 2023, the effective interest rate of the senior secured revolving credit facility was 7.64% and the effective rate of the senior secured term loan was 7.89%. 

Other 

 In addition, the Company has outstanding notes payable for capital expenditures in the amount of $1,826 and $1,361 as of March 31, 2024 and December 31, 2023, respectively, with $345 and $163 included in the “Line of credit and current maturities of long-term debt” line item of the Company’s condensed consolidated financial statements as of March 31, 2024 and December 31, 2023, respectively. The notes payable have monthly payments that range from $3 to $20 and an interest rate of approximately 6%. The equipment purchased is utilized as collateral for the notes payable. The outstanding notes payable mature in  September 2028.