Long-term Debt and Other Credit Arrangements

9 Months Ended

Jan. 31, 2022

Debt Disclosure [Abstract]

Long-term Debt and Other Credit Arrangements

Long-term Debt and Other Credit Arrangements

At January 31, 2022, advances of $8.4 million were outstanding under the Company's revolving credit facility, compared to advances of $6.8 million outstanding as of April 30, 2021. The Company had standby letters of credit outstanding of $704,000 at January 31, 2022, unchanged from April 30, 2021. Amounts available under the revolving credit facility were $4.1 million and $7.5 million at January 31, 2022 and April 30, 2021, respectively.

On July 30, 2021, the Company entered into a Twelfth Amendment to Credit and Security Agreement (the “Amendment”) with Wells Fargo Bank, National Association (the “Bank”). The Amendment made certain changes to the Credit and Security Agreement, dated as of May 6, 2013, as amended (the “Credit Agreement”), between the Company and the Bank, and to the Revolving Line of Credit Note, dated May 6, 2013, made by the Company and payable to the order of the Bank, as amended (the “Revolving Note”). The changes included (i) extending the maturity date under the Credit Agreement and Revolving Note from July 30, 2021 to April 30, 2022; (ii) removing the minimum EBITDA covenant; (iii) in addition to the existing Minimum Monthly Liquidity requirement as of the end of each calendar month of not less than $2,000,000, adding an additional covenant that the Company will maintain Supplemental Liquidity (as defined in the amended Credit Agreement) as of the first day of each calendar month not less than (a) during the period from August 1, 2021 through December 31, 2021, $1,000,000 and (b) thereafter $1,500,000; and (iv) restating the amended Credit Agreement to reflect all amendments to date.

At January 31, 2022 and April 30, 2021, the Company was in compliance with all the financial covenants under its revolving credit facility. During the three months ended January 31, 2022, the supplemental liquidity threshold for the Company, as defined in the Credit Agreement, fell below $3,000,000 for one reporting period. The Company has obtained a waiver of the debt covenant violation that occurred on that date and returned to full compliance for the subsequent months during the period ended January 31, 2022.