Exhibit 99.1
DEBT COVENANT COMPLIANCE
AS OF OCTOBER 31, 2010
AS OF OCTOBER 31, 2010
Consolidated Adjusted EBITDA:
(in 000s) | LTM (i) | Q3 FY10 | Q4 FY10 | Q1 FY11 | Q2 FY11 | |||||||||||||||
Net Loss | $ | (1,498 | ) | $ | (747 | ) | $ | 112 | $ | (540 | ) | $ | (323 | ) | ||||||
Add Back: | ||||||||||||||||||||
Depreciation and Amortization | 6,316 | 1,485 | 1,647 | 1,622 | 1,562 | |||||||||||||||
Income Tax Provision (Benefit ) | 553 | (1,124 | ) | (191 | ) | 1,064 | 804 | |||||||||||||
Interest Charges | 1,786 | 468 | 468 | 413 | 437 | |||||||||||||||
Non-Cash Charges | 3,496 | 1,742 | 853 | 370 | 531 | |||||||||||||||
Allowable Add backs Pursuant to Credit Facility Agreement | 67 | (51 | ) | 6 | 9 | 103 | ||||||||||||||
Consolidated Adjusted EBITDA | $ | 10,720 | $ | 1,773 | $ | 2,895 | $ | 2,938 | $ | 3,114 | ||||||||||
I. Consolidated Leverage Ratio | ||||||||||||||||||||
A. Total Long-Term Obligations and Notes Payable (ii) | $ | 4,144 | ||||||||||||||||||
B. Consolidated Adjusted EBITDA | $ | 10,720 | ||||||||||||||||||
C. Consolidated Leverage Ratio (Line I.A ÷ Line I.B) | 0.39 | |||||||||||||||||||
Maximum Permitted | 2.50x to 1 | |||||||||||||||||||
II. Liquidity Test | ||||||||||||||||||||
Book Value of Consolidated Accounts Receivable at 65% | $ | 26,284 | ||||||||||||||||||
Book Value of Consolidated Inventory at 40% | $ | 10,885 | ||||||||||||||||||
A. | $ | 37,169 | ||||||||||||||||||
B. Total Long-Term Obligations and Notes Payable (ii) | $ | 4,144 | ||||||||||||||||||
(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 Loss | $ | (1,498 | ) | |||||||||||||||||
2 Consolidated Interest Charges | $ | 1,786 | ||||||||||||||||||
3 Provision (Benefit) for income taxes | $ | 553 | ||||||||||||||||||
4 Depreciation expenses | $ | 5,872 | ||||||||||||||||||
5 Amortization expenses | $ | 444 | ||||||||||||||||||
6 Non-recurring non-cash reductions of Consolidated Net Loss | $ | 3,496 | ||||||||||||||||||
7 Allowable Add backs Pursuant to Credit Facility Agreement | $ | 67 | ||||||||||||||||||
8 Consolidated Adjusted EBITDA (Lines III.A.1 + 2 + 3 + 4 + 5 + 6 + 7) | $ | 10,720 | ||||||||||||||||||
B. Cash payments for taxes | $ | 671 | ||||||||||||||||||
C. Maintenance Capital Expenditures | $ | 2,000 | ||||||||||||||||||
D. Consolidated Interest Charges (except non-cash interest) | $ | 392 | ||||||||||||||||||
E. Current portion of other long term debt (iii) | $ | 28 | ||||||||||||||||||
F. Consolidated Fixed Charge Coverage Ratio ((Line III.A.8 - Line III.B — Line III.C) / (Line III.D + Line III.E) | 19.2 | |||||||||||||||||||
Minimum required | 2.0x to 1 |
Notes: | ||
(i) | Last Twelve Months (Most Recent Four Fiscal Quarters) | |
(ii) | Includes letters of credit of $2.1 million and excludes subordinated debt | |
(iii) | Represents current portion of other long-term debt as of October 31, 2010 |