Note 10 - Debt

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Debt Disclosure [Text Block]

10. Debt:

The Company’s debt is comprised of the following components:

	As of December 31,
(in thousands)	2022		2021
Asset-based revolving credit facility due June 16, 2026	$	165,658	$	327,764
Total debt		165,658		327,764
Less current amount		-		-
Total long-term debt	$	165,658	$	327,764

The Company’s asset-based credit facility (the ABL Credit Facility) is collateralized by the Company’s accounts receivable, inventory and personal property. The $625 million ABL Credit Facility consists of: (i) a revolving credit facility of up to $595 million, including a $20 million sub-limit for letters of credit, and (ii) a first in, last out revolving credit facility of up to $30 million. Under the terms of the ABL Credit Facility, the Company may, subject to the satisfaction of certain conditions, request additional commitments under the revolving credit facility in the aggregate principal amount of up to $200 million to the extent that existing or new lenders agree to provide such additional commitments, and add real estate as collateral at the Company’s discretion. The ABL Facility matures on June 16, 2026.

The ABL Credit Facility contains customary representations and warranties and certain covenants that limit the ability of the Company to, among other things: (i) incur or guarantee additional indebtedness; (ii) pay distributions on, redeem or repurchase capital stock or redeem or repurchase subordinated debt; (iii) make investments; (iv) sell assets; (v) enter into agreements that restrict distributions or other payments from restricted subsidiaries to the Company; (vi) incur or suffer to exist liens securing indebtedness; (vii) consolidate, merge or transfer all or substantially all of their assets; and (viii) engage in transactions with affiliates. In addition, the ABL Credit Facility contains a financial covenant which provides that: (i) if any commitments or obligations are outstanding and the Company’s availability is less than the greater of $30 million or 10.0% of the aggregate amount of revolver commitments ($47.5 million at December 31, 2022) or 10.0% of the aggregate borrowing base ($47.5 million at December 31, 2022), then the Company must maintain a ratio of Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) minus certain capital expenditures and cash taxes paid to fixed charges of at least 1.00 to 1.00 for the most recent twelve fiscal month period.

The Company has the option to borrow under its revolver based on the agent’s base rate plus a premium ranging from 0.00% to 0.25% or the London Interbank Offered Rate (LIBOR) plus a premium ranging from 1.25% to 2.75%.

As of December 31, 2022, the Company was in compliance with its covenants and had approximately $305.6 million of availability under the ABL Credit Facility.

As of December 31, 2022 and December 31, 2021, $1.2 million and $1.6 million, respectively, of bank financing fees were included in “Prepaid expenses and other” and “Other long-term assets” on the accompanying Consolidated Balance Sheets. The financing fees are being amortized over the five-year term of the ABL Credit Facility and are included in “Interest and other expense on debt” on the accompanying Consolidated Statements of Comprehensive Income (Loss).

Scheduled Debt Maturities, Interest, Debt Carrying Values

The Company’s principal payments over the next five years, as of December 31, 2022, are detailed in the table below:

(in thousands)	2023		2024		2025		2026		2027		Total
ABL Credit Facility	$	-	$	-	$	-	$	165,658	$	-	$	165,658
Total principal payments	$	-	$	-	$	-	$	165,658	$	-	$	165,658

The overall effective interest rate for all debt, exclusive of deferred financing fees and deferred commitment fees, amounted to 3.2%, 2.5% and 3.3% in 2022, 2021 and 2020, respectively. Interest paid totaled $9.6 million, $6.8 million and $7.0 million for the years ended December 31, 2022, 2021 and 2020, respectively. Average total debt outstanding was $280.4 million, $255.8 million and $188.4 million in 2022, 2021 and 2020, respectively.