Exhibit 99.1
DEBT COVENANT COMPLIANCE
AS OF JANUARY 31, 2010
AS OF JANUARY 31, 2010
Consolidated Adjusted EBITDA:
(in 000s) | LTM(i) | Q4 FY09 | Q1 FY10 | Q2 FY10 | Q3 FY10 | |||||||||||||||
Net Loss | $ | (13,067 | ) | $ | (4,471 | ) | $ | (8,546 | ) | $ | 697 | $ | (747 | ) | ||||||
Add Back: | ||||||||||||||||||||
Depreciation and Amortization | 5,211 | 1,133 | 1,232 | 1,361 | 1,485 | |||||||||||||||
Income Tax Provision (Benefit) | (4,603 | ) | (1,950 | ) | (606 | ) | (923 | ) | (1,124 | ) | ||||||||||
Interest Charges | 2,849 | 943 | 964 | 474 | 468 | |||||||||||||||
Non-Cash Charges | 4,019 | 1,492 | 163 | 622 | 1,742 | |||||||||||||||
Allowable Add backs Pursuant to Credit Facility Agreement, as amended | 10,054 | 4,336 | 5,698 | 71 | (51 | ) | ||||||||||||||
Consolidated Adjusted EBITDA | $ | 4,463 | $ | 1,483 | $ | (1,095 | ) | $ | 2,302 | $ | 1,773 | |||||||||
I. Consolidated Leverage Ratio | ||||||||||||||||||||
A. Total Long-Term Obligations and Notes Payable (ii) | $ | 5,602 | ||||||||||||||||||
B. Consolidated Adjusted EBITDA | $ | 4,463 | ||||||||||||||||||
C. Consolidated Leverage Ratio (Line I.A ÷ Line I.B) | 1.26 | |||||||||||||||||||
Maximum Permitted | 3.5x to 1 | |||||||||||||||||||
II. Liquidity Test | ||||||||||||||||||||
Book Value of Consolidated Accounts Receivable at 65% | $ | 23,958 | ||||||||||||||||||
Book Value of Consolidated Inventory at 40% | $ | 8,812 | ||||||||||||||||||
A. | $ | 32,770 | ||||||||||||||||||
B. Total Long-Term Obligations and Notes Payable (ii) | $ | 5,602 | ||||||||||||||||||
(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 | $ | (13,067 | ) | |||||||||||||||||
2 Consolidated Interest Charges | $ | 2,849 | ||||||||||||||||||
3 Provision for income taxes | $ | (4,603 | ) | |||||||||||||||||
4 Depreciation expenses | $ | 4,831 | ||||||||||||||||||
5 Amortization expenses | $ | 380 | ||||||||||||||||||
6 Non-recurring non-cash reductions of Consolidated Net Income | $ | 4,019 | ||||||||||||||||||
7 Allowable Add backs Pursuant to Credit Facility Agreement, as amended | $ | 10,054 | ||||||||||||||||||
8 Consolidated Adjusted EBITDA (Lines III.A.1 + 2 + 3 + 4 + 5 + 6 + 7) | $ | 4,463 | ||||||||||||||||||
B. Cash payments for taxes | $ | 547 | ||||||||||||||||||
C. Maintenance Capital Expenditures | $ | 2,000 | ||||||||||||||||||
D. Consolidated Interest Charges (except non-cash interest) | $ | 974 | ||||||||||||||||||
E. Current portion of other long term debt (iii) | $ | 54 | ||||||||||||||||||
F. Consolidated Fixed Charge Coverage Ratio ((Line III.A.8 - Line III.B — Line III.C) / (Line III.D + Line III.E) | 1.9 | |||||||||||||||||||
Minimum required | 1.2x to 1 |
Notes:
(i) | Last Twelve Months (Most Recent Four Fiscal Quarters) | |
(ii) | Includes letters of credit of $3.4 million and excludes subordinated debt | |
(iii) | Represents current portion of other long-term debt as of January 31, 2010 |