Note 5 - Debt

3 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Debt and Capital Leases Disclosures [Text Block]

5

. Debt

Credit Facility

On

January 28, 2016,

the Company entered into a credit facility (the Credit Facility). The operating company is the borrower under the Credit Facility and its obligations under the Credit Facility are guaranteed by the holding company and

VC2.

The Credit Facility is secured by a lien on substantially all of the Company’s assets. The amount available for borrowing under the Credit Facility is

$50.0

million, including a

$5.0

million sublimit for standby letters of credit. The Company has the right to borrow, prepay and re-borrow amounts under the Credit Facility at any time prior to the maturity date. The Credit Facility matures on

January 31, 2021.

For floating rate borrowings under the Credit Facility, interest is determined by the lender’s administrative agent based on the most recent compliance certificate of the operating company and stated at the base rate less the lender spread based upon certain financial measures. For fixed rate borrowings under the Credit Facility, interest is determined by quoted LIBOR rates for the interest period plus the lender spread based upon certain financial measures. The unused commitment fee is based upon certain financial measures.

The Credit Facility requires compliance with certain customary operational and financial covenants, including a leverage ratio. The Credit Facility also contains certain other customary limitations on the Company’s ability to incur additional debt, guarantee other obligations, grant liens on assets and make investments or acquisitions, among other limitations. Additionally, the Credit Facility prohibits the payment of cash dividends to the holding company from the operating company without the administrative agent’s consent, except when

no

default or event of default exists. If

no

default or event of default exists, dividends are allowed for various audit, accounting, tax, securities, indemnification, reimbursement, insurance and other reasonable expenses incurred in the ordinary course of business, including cash dividends to the holding company for the repurchase of shares of common stock in an amount

not

to exceed

$10.0

million.

The Company had

$12.7

million and

$13.2

million outstanding under the Credit Facility as of

December 31, 2018

and

September 30, 2018,

respectively. As of each of

December 31, 2018

and

September 30, 2018,

the Company had undrawn, issued and outstanding letters of credit of

$1.0

million, which were reserved against the amount available for borrowing under the terms of the Credit Facility. The Company had

$36.3

million and

$35.8

million available for borrowing under the Credit Facility as of

December 31, 2018

and

September 30, 2018,

respectively.

As of

December 31, 2018

and

September 30, 2018,

the Company was in compliance with the financial covenants under the Credit Facility.

Capital and Financing Lease Obligations

The Company had

21

and

20

leases as of

December 31, 2018

and

September 30, 2018,

respectively, that are included in capital and financing lease obligations (see Note

7

).

No

rent expense is recorded for these capitalized real estate leases, but rather rental payments under the capital leases are recognized as a reduction of the capital and financing lease obligation and as interest expense. The interest rate on capital and financing lease obligations is determined at the inception of the lease.

Interest

The Company incurred gross interest expense of approximately

$1.3

million and

$1.1

million for the

three

months ended

December 31, 2018

and

2017,

respectively. Interest expense for the

three

months ended

December 31, 2018

and

2017

relates primarily to interest on capital and financing lease obligations. The Company capitalized interest of less than

$0.1

million for each of the

three

months ended

December 31, 2018

and

2017.