Exhibit 99.1
DEBT COVENANT COMPLIANCE
AS OF OCTOBER 31, 2009
AS OF OCTOBER 31, 2009
Consolidated Adjusted EBITDA:
(in 000s) | LTM(i) | Q3 FY09 | Q4 FY09 | Q1 FY10 | Q2 FY10 | |||||||||||||||
Net Income (Loss) | $ | (33,683 | ) | $ | (21,363 | ) | $ | (4,471 | ) | $ | (8,546 | ) | $ | 697 | ||||||
Add Back: | ||||||||||||||||||||
Depreciation and Amortization | 4,839 | 1,113 | 1,133 | 1,232 | 1,361 | |||||||||||||||
Income Tax Provision (Benefit) | (14,585 | ) | (11,106 | ) | (1,950 | ) | (606 | ) | (923 | ) | ||||||||||
Interest Charges | 2,709 | 328 | 943 | 964 | 474 | |||||||||||||||
Non-Cash Charges | 3,487 | 1,210 | 1,492 | 163 | 622 | |||||||||||||||
Allowable Add backs Pursuant to Credit Facility Agreement, as amended | 42,169 | 32,064 | 4,336 | 5,698 | 71 | |||||||||||||||
Consolidated Adjusted EBITDA | $ | 4,936 | $ | 2,246 | $ | 1,483 | $ | (1,095 | ) | $ | 2,302 | |||||||||
I. Consolidated Leverage Ratio | ||||||||||||||||||||
A. Total Long-Term Obligations and Notes Payable (ii) | $ | 7,722 | ||||||||||||||||||
B. Consolidated Adjusted EBITDA | $ | 4,936 | ||||||||||||||||||
C. Consolidated Leverage Ratio (Line I.A ÷ Line I.B) | 1.56 | |||||||||||||||||||
Maximum Permitted | 3.35x to 1 | |||||||||||||||||||
II. Liquidity Test | ||||||||||||||||||||
Book Value of Consolidated Accounts Receivable at 65% | $ | 25,346 | ||||||||||||||||||
Book Value of Consolidated Inventory at 40% | $ | 7,909 | ||||||||||||||||||
A. | $ | 33,255 | ||||||||||||||||||
B. Total Long-Term Obligations and Notes Payable (ii) | $ | 7,722 | ||||||||||||||||||
(Line II.A) must be greater than (Line II. B) | Yes | |||||||||||||||||||
III. Consolidated Fixed Charge Coverage Ratio (i) | ||||||||||||||||||||
A. Consolidated Adjusted EBITDA | ||||||||||||||||||||
1 Consolidated Net Income | $ | (33,683 | ) | |||||||||||||||||
2 Consolidated Interest Charges | $ | 2,709 | ||||||||||||||||||
3 Provision for income taxes | $ | (14,585 | ) | |||||||||||||||||
4 Depreciation expenses | $ | 4,474 | ||||||||||||||||||
5 Amortization expenses | $ | 365 | ||||||||||||||||||
6 Non-recurring non-cash reductions of Consolidated Net Income | $ | 3,487 | ||||||||||||||||||
7 Allowable Add backs Pursuant to Credit Facility Agreement, as amended | $ | 42,169 | ||||||||||||||||||
8 Consolidated Adjusted EBITDA (Lines III.A.1 + 2 + 3 + 4 + 5 + 6 + 7) | $ | 4,936 | ||||||||||||||||||
B. Cash payments for taxes | $ | 1,180 | ||||||||||||||||||
C. Maintenance Capital Expenditures | $ | 2,000 | ||||||||||||||||||
D. Consolidated Interest Charges (except non-cash interest) | $ | 1,082 | ||||||||||||||||||
E. Current portion of other long term debt (iii) | $ | 69 | ||||||||||||||||||
F. Consolidated Fixed Charge Coverage Ratio ((Line III.A.8 - Line III.B — Line III.C) / (Line III.D + Line III.E) | 1.5 | |||||||||||||||||||
Minimum required | 1.2x to 1 |
Notes:
(i) | Last Twelve Months (Most Recent Four Fiscal Quarters) | |
(ii) | Includes letters of credit of $7.4 million and excludes subordinated debt | |
(iii) | Represents current portion of other long-term debt as of October 31, 2009 |