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Long-Term Indebtedness
9 Months Ended
Sep. 30, 2013
Long-Term Indebtedness [Abstract]  
Long-Term Indebtedness

8. Long-Term Indebtedness

The Company had no debt outstanding at September 30, 2013 and 2012, or December 31, 2012.

     The Company has a $50.0 million line of credit (the "Credit Agreement") with JPMorgan Chase Bank, N.A. and Wells Fargo Bank, N.A. (collectively, the "Lenders"). The maximum borrowings under the Company's line of credit can be increased by $20.0 million upon approval of the Lenders. Interest on borrowings under the line of credit is designated from time to time by the Company as either (i) the Prime Rate, but not less than 2.5 percent, plus additional interest up to 0.8 percent (0 percent at September 30, 2013), or (ii) LIBOR plus additional interest ranging from 2.0 percent to 2.8 percent (2.0 percent at September 30, 2013) depending on the Company's performance and financial condition. The Credit Agreement expires on January 1, 2016. At September 30, 2013, the Company had $2.2 million in outstanding letters of credit under the line of credit. Availability under the Company's line of credit was $47.8 million at September 30, 2013.

     The Company also has a $150.0 million "shelf-loan" facility with Prudential Investment Management, Inc. and its affiliates ("Prudential"). The facility provides for Prudential to consider purchasing, at the Company's request, in one or a series of transactions, Senior Promissory Notes of the Company in the aggregate principal amount of up to $150.0 million, to mature no more than twelve years after the date of original issue of each Senior Promissory Note. Prudential has no obligation to purchase the Senior Promissory Notes. Interest payable on the Senior Promissory Notes will be at rates determined by Prudential within five business days after the Company issues a request to Prudential. At September 30, 2013, there were no Senior Promissory Notes outstanding. This facility expires on February 24, 2014.

     Both the line of credit pursuant to the Credit Agreement and the "shelf-loan" facility are subject to a maximum leverage ratio covenant which limits the amount of consolidated outstanding indebtedness to 2.5 times the trailing twelve-month EBITDA, as defined. This limitation did not impact the Company's borrowing availability at September 30, 2013. The remaining availability under these facilities was $197.8 million at September 30, 2013. The Company believes this availability, together with the $52.9 million in cash at September 30, 2013, is more than adequate to finance the Company's anticipated cash requirements for the next twelve months.

     Pursuant to the Credit Agreement and "shelf-loan" facility, at September 30, 2013 the Company was required to maintain minimum interest and fixed charge coverages, and to meet certain other financial requirements. At September 30, 2013, the Company was in compliance with all such requirements, and expects to remain in compliance for the next twelve months.

     Borrowings under both the line of credit and the "shelf-loan" facility are secured on a pari-passu basis by first priority liens on the capital stock or other equity interests of each of the Company's direct and indirect subsidiaries.

     The Company is currently negotiating a three-year extension of its line of credit and shelf loan facility, as well as a $25 million increase in its line of credit. The Company is extending these arrangements now because the shelf loan facility expires in February 2014, and current market conditions are favorable.