Note 7 - Long-term Debt

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Long-term Debt [Text Block]

7. LONG-TERM DEBT

Long-term debt at December 31, consists of the following:

	2021			2020
	(in thousands)
Line of credit with a bank—due July 1, 2024, and collateralized by accounts receivable (1)		-			18,246
Equipment financing (2)		206,539			250,572
Real estate financing (3)		15,738			17,288
Total long-term debt		222,277			286,106
Less current maturities		(49,544	)		(57,776	)
Long-term debt—net of current maturities	$	172,733		$	228,330

(1) Line of credit agreement with a bank provides for maximum borrowings of $60.0 million and contains certain restrictive covenants that must be maintained by the Company on a consolidated basis. Borrowings on the line of credit are at an interest rate of LIBOR as of the first day of the month (with a floor of 0.5%) plus 1.25%, (1.75% at December 31, 2021) and are secured by our trade accounts receivable. An “unused fee” of 0.25% is charged if average daily borrowings are less than $18.0 million in a given month. Monthly payments of interest are required under this agreement. Also, under the terms of the agreement the Company must maintain a debt to adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization, excluding gains/losses on equity securities and extraordinary items) ratio of less than 4.00:1. The Company was in compliance with all provisions under this agreement throughout 2021. At December 31, 2021, outstanding advances on the line were approximately $0.4 million, including letters of credit totaling $0.3 million, with availability to borrow $59.6 million. At December 31, 2020, outstanding advances on the line were approximately $18.6 million, including letters of credit totaling $0.3 million.

(2) Equipment financings consist of installment obligations for revenue equipment purchases, payable in various monthly installments with various maturity dates through March 2028, at a weighted average interest rate of 2.81% as of December 31, 2021 and collateralized by revenue equipment.

(3) Real estate financing consisting of an installment obligation for the purchase of real estate in Laredo, TX, payable in 120 installments at an interest rate of 3.02% and maturing in August 2030. This obligation is collateralized by the underlying real estate and any rental income generated by the underlying real estate.

The Company has provided letters of credit to third parties totaling approximately $310,000 and $310,000 at December 31, 2021 and December 31, 2020, respectively. The letters are held by these third parties to assist such parties in collection of any amounts due by the Company should the Company default in its commitments to the parties.

Scheduled annual maturities on long-term debt outstanding at December 31, 2021, are:

2022	$	49,544
2023		47,915
2024		50,534
2025		40,766
2026		21,805
Thereafter		11,713
Total	$	222,277