XML 21 R31.htm IDEA: XBRL DOCUMENT v2.4.0.8
LONG-TERM DEBT AND LEASE OBLIGATIONS (Details) (USD $)
3 Months Ended 9 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2013
Dec. 31, 2012
Sep. 30, 2013
Credit Agreement [Member]
Lender
Dec. 31, 2012
Credit Agreement [Member]
Jun. 18, 2013
Credit Agreement [Member]
Apr. 05, 2012
Credit Agreement [Member]
Apr. 05, 2012
Swing Line [Member]
Apr. 05, 2012
Letter of Credit [Member]
Sep. 30, 2013
Minimum [Member]
Credit Agreement [Member]
Sep. 30, 2013
Maximum [Member]
Credit Agreement [Member]
Sep. 30, 2013
Finance Obligation [Member]
Dec. 31, 2012
Finance Obligation [Member]
Sep. 30, 2013
Capital Lease-Property (with a rate of 8.0%) [Member]
Dec. 31, 2012
Capital Lease-Property (with a rate of 8.0%) [Member]
Sep. 30, 2013
Capital Leases-Equipment (with rates ranging from 5.0% to 8.5%) [Member]
Dec. 31, 2012
Capital Leases-Equipment (with rates ranging from 5.0% to 8.5%) [Member]
Long-term debt and lease obligations [Abstract]                                  
Credit agreement $ 0 [1] $ 0 [1] $ 37,500,000 [1]                            
Capital lease and finance obligation                       9,672,000 [2] 9,672,000 [2] 26,047,000 [3] 26,344,000 [3] 0 11,000
Long term debt and capital lease obligations 35,719,000 35,719,000 73,527,000                            
Less current maturities (426,000) (426,000) (412,000)                            
Long-term debt and lease obligations 35,293,000 35,293,000 73,115,000                            
Interest rate of debt instrument (in hundredths)                           8.00%      
Interest rate of debt instrument, minimum (in hundredths)                               5.00%  
Interest rate of debt instrument, maximum (in hundredths)                               8.50%  
Number of lenders led by Bank of America       4                          
Maximum borrowing capacity of credit facility           60,000,000 85,000,000 5,000,000 25,000,000                
Expiration date of credit facility       Apr. 05, 2015                          
Maximum aggregate amount to increase under the credit facility       50,000,000                          
Maturity period of credit facility       36 months                          
Variable rate of debt instrument       prime rate                          
Federal Funds rate plus, variable rate (in hundredths)       0.50%                          
LIBOR rate plus, variable rate (in hundredths)       1.00%                          
Interest rate of credit facility (in hundredths) 4.75%       4.50%         1.25% 2.75%            
Amount outstanding under letter of credit       5,300,000                          
Outstanding amount of credit facility       0 37,500,000                        
Sale and a leaseback of several facilities, Date   December 28, 2001                              
Lease expiration date   Dec. 31, 2016                           Dec. 31, 2032  
Proceeds from borrowings 5,000,000                                
Payments on borrowings 5,000,000                                
Scheduled maturities of long-term debt and lease obligations [Abstract]                                  
2013 426,000 426,000                              
2014 462,000 462,000                              
2015 515,000 515,000                              
2016 10,405,000 10,405,000                              
2017 623,000 623,000                              
Thereafter 23,288,000 23,288,000                              
Long term debt and capital lease obligations $ 35,719,000 $ 35,719,000 $ 73,527,000                            
[1] (a) On April 5, 2012, the Company, as borrower, and certain of its wholly-owned subsidiaries, as guarantors, entered into a secured revolving credit agreement (the “Credit Agreement”) with a syndicate of four lenders led by Bank of America, N.A., as administrative agent, swing line lender and letter of credit issuer, for an aggregate principal amount of up to $85 million (the “Credit Facility”). On June 18, 2013, the Company, as borrower, and certain of its wholly-owned subsidiaries, as guarantors, entered into an amendment to the Credit Agreement (the “Amendment to the Credit Agreement”). Under the Credit Agreement, the Company has the right to increase the aggregate amount available under the Credit Facility by up to $50 million upon satisfaction of certain conditions. The Credit Facility may be used to finance capital expenditures and permitted acquisitions, to pay transaction expenses, for the issuance of letters of credit and for general corporate purposes. The Credit Agreement includes a $5 million swing line sublimit and a $25 million letter of credit sublimit. Borrowings under the Credit Facility are secured by a first priority lien on substantially all of the tangible and intangible assets of the Company and its subsidiaries exclusive of real estate. The term of the Credit Facility is 36 months, maturing on April 5, 2015. Amounts borrowed as revolving loans under the Credit Facility will bear interest, at the Company’s option, at either (i) an interest rate based on LIBOR and adjusted for any reserve percentage obligations under Federal Reserve Bank regulations (the “Eurodollar Rate”) for specified interest periods or (ii) the Base Rate (as defined in the Credit Agreement), in each case, plus an applicable margin rate as determined under the Credit Agreement. The “Base Rate”, as defined under the Credit Agreement, is the highest of (a) the prime rate, (b) the Federal Funds rate plus 0.50% and (c) a daily rate equal to the one-month LIBOR rate plus 1.0%. Under the Credit Agreement, the margin interest rate is subject to adjustment within a range of 1.25% to 2.75% based upon changes in the Company’s consolidated leverage ratio and depending on whether the Company has chosen the Eurodollar Rate or the Base Rate option. Swing line loans will bear interest at the Base Rate plus the applicable margin rate. Letters of credit will require a fee equal to the applicable margin rate multiplied by the daily amount available to be drawn under each issued letter of credit plus an agreed upon fronting fee and customary issuance, presentation, amendment and other processing fees associated with letters of credit. At September 30, 2013, the Company had outstanding letters of credit aggregating $5.3 million, which were primarily comprised of letters of credit for the Department of Education, or DOE, matters and real estate leases. The Amendment to the Credit Agreement reduced the aggregate principal amount available under the Credit Facility from $85 million to $60 million. The Credit Facility continues to provide the Company with a $25 million letter of credit sublimit and a $5 million swing line sublimit, the availability of which will be at the discretion of the swing line lender, and the right to increase the aggregate amount available under the Credit Facility by up to $50 million upon the satisfaction of certain conditions. The Amendment to the Credit Agreement includes certain revisions relevant to the calculation of consolidated leverage ratio and consolidated fixed charge coverage ratio. The Amendment to the Credit Agreement contains customary representations, warranties and covenants including consolidated adjusted net worth, consolidated leverage ratio, consolidated fixed charge coverage ratio, minimum financial responsibility composite score, cohort default rate and other financial covenants, certain restrictions on capital expenditures as well as affirmative and negative covenants and events of default customary for facilities of this type. In addition, the Company is paying fees to the lenders that are customary for facilities of this type. As of September 30, 2013, the Company is in compliance with all financial covenants under the Credit Agreement, as amended. During the third quarter of 2013 the Company borrowed and subsequently repaid $5.0 million under the facility. The interest rates on these borrowings were 4.75%. As of September 30, 2013, the Company had no amounts outstanding under the Credit Agreement as amended. The Company had $37.5 million outstanding under the Credit Agreement as of December 31, 2012. The interest rates on these borrowings were 4.5%.
[2] (b) The Company completed a sale and a leaseback of several facilities on December 28, 2001. The Company retains a continuing involvement in the lease and, as a result, it is prohibited from utilizing sale-leaseback accounting. Accordingly, the Company has treated this transaction as a finance lease. The lease expires on December 31, 2016.
[3] (c) In 2009, the Company assumed real estate capital leases in Fern Park, Florida and Hartford, Connecticut. These leases bear interest at 8% and expire in 2032 and 2031, respectively.