Long-Term Debt, Capital Leases and Notes Payable

6 Months Ended

Jun. 30, 2011

Long-Term Debt, Capital Leases and Notes Payable [Abstract]

Long-Term Debt, Capital Leases and Notes Payable

4. Long-Term Debt, Capital Leases and Notes Payable

Long-term debt, capital leases and notes payable are summarized as follows:

	June 30,			December 31,
	2011			2010
Senior revolving credit facility	$	–		$	17,912
Notes payable and capital leases		68			44
		68			17,956
Less current portion		(16	)		(11	)
Long-term debt, notes payable and capital leases, net of current portion	$	52		$	17,945

We entered into a $40,000 senior revolving credit facility in November 2010 that was amended in April 2011 (“Senior Revolving Credit Facility”) that replaced our previous loan agreement. The Senior Revolving Credit Facility has a three-year term and is secured by substantially all of our assets.

Interest on the outstanding borrowings under the Senior Revolving Credit Facility is payable at our option at either a floating base rate plus an interest rate spread or a floating rate of LIBOR plus an interest rate spread. Both the interest rate spreads and the commitment fee rate are determined from a pricing grid based on our total leverage ratio. The Senior Revolving Credit Facility also provides for letters of credit issued to our vendors, which reduce the amount available for cash borrowings. We are required to pay a commitment fee on the unused amounts of the commitments under the Senior Revolving Credit Facility. At June 30, 2011, we had no base rate and floating LIBOR borrowings outstanding. At June 30, 2011, there were no outstanding letters of credit under the Senior Revolving Credit Facility. The availability under the Senior Revolving Credit Facility was $21,664, based upon the maximum leverage ratio allowed at June 30, 2011.

The Senior Revolving Credit Facility contains various restrictive covenants and the following financial covenants: (i) a maximum total leverage ratio that for the quarter ended June 30, 2011 is set at 3.5 to 1.0, steps down to 2.75 to 1.0 for the period beginning July 1, 2011 and ending September 30, 2011 and further steps down to 2.5 to 1.0 for the period beginning October 1, 2011 and continuing until the termination of the Senior Revolving Credit Facility; (ii) a minimum EBITDA (as defined in our Senior Revolving Credit Facility; measured on a trailing four-quarter basis) threshold that is currently set at $9,000 for the twelve-month period ended June 30, 2011; (iii) a minimum interest coverage ratio of 3.0 to 1.0 beginning with the quarter ended September 30, 2011; and (iv) a maximum amount of capital expenditures of $25,000 for the year ending December 31, 2011. We were in compliance with all of our debt covenants as of June 30, 2011, including those noted above, with the exception of the minimum EBITDA threshold. We received a waiver for that covenant for the twelve-month period ended June 30, 2011 that also limited the availability to $10,000 until the requirement is amended, which we believe will occur in the third quarter of 2011.