Note 9 - Debt

6 Months Ended

Dec. 31, 2025

Notes to Financial Statements

Debt Disclosure [Text Block]

NOTE 9 - DEBT

The Company’s long-term debt as of December 31, 2025, and June 30, 2025, consisted of the following:

	December 31,		June 30,
(In thousands)	2025		2025
Secured line of credit	$	27,939	$	36,956
Term loan, net of debt issuance costs of $0 and $14, respectively		-		11,601
Total debt	$	27,939	$	48,557
Less: amounts due within one year		-		3,571
Total amounts due after one year, net	$	27,939	$	44,986

In September 2025, the Company amended its existing $100 million credit facility which consisted of a $25 million term loan and a $75 million revolving credit line to a $125 million revolving credit line. The $125 million credit facility will expire in the first quarter of fiscal 2031. Interest on the revolving line of credit is charged based upon an increment over the Secured Overnight Financing Rate (SOFR). The increment over the SOFR borrowing rate fluctuates between 100 and 225 basis points of which depend upon the ratio of indebtedness to earnings before interest, taxes, depreciation, and amortization (“EBITDA”), as defined in the line of credit agreement. As of December 31, 2025, the Company’s borrowing rate against its revolving line of credit was 5.5%. The increment over the SOFR borrowing rate will be 100 basis points for the third quarter of fiscal 2026. The fee on the unused balance of the $125 million committed line of credit fluctuates between 15 and 25 basis points. Under the terms of the credit agreement, the Company is required to comply with a financial covenant that limits the ratio of indebtedness to EBITDA. The Company is also required to maintain an interest coverage ratio equal to or above the minimum set forth in the agreement. Under the amended credit facility, there was $104.6 available for borrowing under the $125 million line of credit.

The Company is in compliance with all of its loan covenants as of December 31, 2025.