XML 27 R47.htm IDEA: XBRL DOCUMENT v2.4.0.8
LONG-TERM DEBT AND LEASE OBLIGATIONS (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Long-term debt and lease obligations [Abstract]      
Long term debt and capital lease obligations $ 90,116,000 $ 73,527,000  
Less current maturities (435,000) (412,000)  
Long-term debt and lease obligations 89,681,000 73,115,000  
Sale and a leaseback of several facilities, Date December 28, 2001    
Rent expense under finance lease 1,500,000 1,500,000 1,500,000
Lease expiration date Dec. 31, 2016    
Scheduled maturities of long-term debt and lease obligations [Abstract]      
2014 435,000    
2015 54,971,000    
2016 10,244,000    
2017 748,000    
2018 810,000    
Thereafter 22,908,000    
Long term debt and capital lease obligations 90,116,000 73,527,000  
Credit Agreement [Member]
     
Long-term debt and lease obligations [Abstract]      
Credit agreement 54,500,000 [1] 37,500,000 [1]  
Number of lenders led by Bank of America 4    
Maximum borrowing capacity of credit facility 60,000,000    
Reduced amount of credit facility 40,000,000    
Expiration date of credit facility Apr. 05, 2015    
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) 7.25% 4.50%  
Amount outstanding under letter of credit 5,300,000    
Outstanding amount of credit facility 54,500,000 37,500,000  
Letter of Credit [Member]
     
Long-term debt and lease obligations [Abstract]      
Maximum borrowing capacity of credit facility 25,000,000    
Minimum [Member] | Credit Agreement [Member]
     
Long-term debt and lease obligations [Abstract]      
Interest rate of credit facility (in hundredths) 2.50%    
Maximum [Member] | Credit Agreement [Member]
     
Long-term debt and lease obligations [Abstract]      
Interest rate of credit facility (in hundredths) 6.00%    
Finance Obligation [Member]
     
Long-term debt and lease obligations [Abstract]      
Capital lease and finance obligation 9,672,000 [2] 9,672,000 [2]  
Capital Lease-Property (with a rate of 8.0%) [Member]
     
Long-term debt and lease obligations [Abstract]      
Capital lease and finance obligation 25,944,000 [3] 26,344,000 [3]  
Interest rate of debt instrument (in hundredths) 8.00%    
Capital Leases-Equipment (with rates ranging from 5.0% to 8.5%) [Member]
     
Long-term debt and lease obligations [Abstract]      
Capital lease and finance obligation $ 0 $ 11,000  
Interest rate of debt instrument, minimum (in hundredths) 5.00%    
Interest rate of debt instrument, maximum (in hundredths) 8.50%    
[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 with a syndicate of four lenders led by Bank of America, N.A., as administrative agent and letter of credit issuer (the “Credit Facility”). The April 5, 2012 agreement, along with subsequent amendments dated June 18, 2013 and December 20, 2013, are collectively referred to as the “Credit Agreement.” As of December 31, 2013, the aggregate principal amount available under the Credit Facility was $60 million. Effective January 16, 2014, this amount was reduced to $40 million. 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 $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 including real estate. The term of the Credit Facility is 36 months, maturing on April 5, 2015. The Credit Agreement provides that the lenders will receive first priority lien on substantially all of the tangible and intangible non-real property assets of the Company and its subsidiaries as well as a first priority lien on substantially all real property owned by the Company and its subsidiaries and that all net proceeds of future sales of real property by the Company and its subsidiaries be used to prepay revolving loans and permanently reduce the principal amount of revolving loans available under the Credit Facility. 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 rate of interest announced from time to time by Bank of America, N.A. as its 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%. Pursuant to the Amendment, the margin interest rate is subject to adjustment within a range of 2.50% to 6.00% 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. 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 December 31, 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 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 December 31, 2013 the Company is in compliance with all financial covenants. As of December 31, 2013, the Company had $54.5 million outstanding under the Credit Agreement. The interest rate on borrowings under the Credit Agreement during the year ended December 31, 2013 was 7.25%. All amounts outstanding on December 31, 2013 were repaid on January 3, 2014. The Company had $37.5 million outstanding under the Credit Agreement as of December 31, 2012. The interest rate on this borrowing was 4.5%.
[2] The Company completed a sale and a leaseback of several facilities on December 28, 2001. The Company retained 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. Rent payments under this obligation for the three years in the period ended December 31, 2013 were $1.5 million, respectively. These payments have been reflected in the accompanying consolidated statements of operations as interest expense for all periods presented since the effective interest rate on the obligation is greater than the scheduled payments. The lease expiration date is December 31, 2016.
[3] 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.