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Note I - Long-Term Debt

12 Months Ended

Dec. 31, 2013

NOTE I—LONG-TERM DEBT

The Company entered into a Third Amended and Restated Business Loan and Security Agreement (the “Credit Facility”) on March 14, 2012, as amended on May 29, 2012 and on July 31, 2013, with a syndication of eleven commercial banks to allow for borrowings of up to $500.0 million for a period of five years (maturing March 14, 2017) under a revolving line of credit. The Credit Facility amends and restates the Company’s previous agreement entered into on February 20, 2008, which had allowed for borrowings of up to $350.0 million. The Credit Facility provides for borrowings of up to $400.0 million without a borrowing base requirement, subject to limitations based upon certain financial, performance-based calculations. The Credit Facility also provides for an “accordion feature,” which permits additional revolving credit commitments of up to $100.0 million, subject to lenders’ approval. The Company incurred approximately $2.0 million in additional debt issuance costs in 2012 related to amending the Credit Facility, which are amortized over the term of the agreement. The Credit Facility is collateralized by substantially all of the assets of the Company and requires that the Company remain in compliance with certain financial and non-financial covenants. The financial covenants, as defined in the Credit Facility, require, among other things, that the Company maintain, on a consolidated basis for each quarter, a fixed charge coverage ratio of not less than 1.25 to 1.00 and a leverage ratio of not more than 3.75 to 1.00. As of December 31, 2013, the Company was in compliance with its covenants under the Credit Facility.

The Company has the ability to borrow funds under its Credit Facility at interest rates based on both LIBOR and prime rates, at its discretion, plus their applicable margins. Interest rates on debt outstanding ranged from 1.42% to 1.46% during 2013.

As of December 31, 2013, the Company had $40.0 million in long-term debt outstanding, $3.0 million in outstanding letters of credit, and unused borrowing capacity of $357.0 million under the Credit Facility. As of December 31, 2013, available borrowing capacity excluding the accordion feature under the Credit Facility, taking into account the financial, performance-based limitations, was $314.0 million.

The Company’s debt issuance costs are amortized over the term of indebtedness. Amortizable debt issuance costs were $4.6 million as of December 31, 2013 and 2012. Accumulated amortization related to debt issuance costs was $3.1 million and $2.6 million, as of December 31, 2013 and 2012, respectively. Amortization expense of $0.5 million, $0.6 million, and $0.5 million was recorded for the years ended December 31, 2013, 2012, and 2011, respectively.

Long-term debt consisted of the following at December 31:

		2013				2012
Revolving Line of Credit/Swing Line. Outstanding borrowings bear daily interest at a base rate (based on the U.S. Prime Rate, which was 3.25% at December 31, 2013 and December 31, 2012, plus a spread) or LIBOR (1, 3, or 6 month rates) plus a spread, payable monthly		$	40,000			$	105,000

Letters of Credit

At December 31, 2013 and 2012, the Company had outstanding letters of credit totaling approximately $3.0 million and $2.9 million, respectively. These letters of credit are renewed annually.