Page 20 - RosboroAR2018

Rosboro maintains a competitive advantage by delivering glulam products that directly meet the needs of builders. Cost competitiveness is obtained through the company’s unique vertical integration and in-house production of lamstock.
NOTE 3
Timber under contract
Timber deposits and logging roads
Less current portion
NOTE 4
PROPERTY, PLANT & EQUIPMENT
Depreciation expense totaled $7,165,000 and $6,357,000 for the years ended December 31, 2018 and 2017, respectively.
NOTE 5
ACCOUNTS PAYABLE & ACCRUED EXPENSES
Trade accounts payable
Payroll related accrued expenses
The Company has existing credit agreements that include a $60 million four-year revolving line of credit with Northwest Farm Credit Services (NWFCS) and other members of a group of banks and a $20 million four-year revolving line of credit with U.S. Bank.
The revolving line with NWFCS has a maturity date of August 2021. Interest is variable based on a pricing grid adjusted quarterly as a result of any changes to the Company’s consolidated leverage ratio (2.96%-3.89% at December 31, 2018).
The revolving line with U.S. Bank has a maturity date of August 2021. Interest is variable based on a pricing grid adjusted quarterly as a result of any changes to the Company’s consolidated leverage ratio (3.81% at December 31, 2018).
Essentially all the assets of the Company have been pledged as collateral for the above obligations. The credit agreements contain various covenants which, among other things, require the Company to maintain certain liquidity, leverage and coverage ratios.
The Company had credit agreements that included a $67.5 million ve-year term facility (term note) and a $15 million ve- year revolving facility with Cerberus Business Finance, LLC that were terminated in July 2017. The Company accounted for this termination as a debt extinguishment.
The term note was due in quarterly installments of principal. Interest was paid monthly at either the reference rate plus 6.00% applicable margin or the LIBOR rate plus 7.25% applicable margin with a terminal balloon payment at the note’s maturity date of December 2021. The term note was priced at the LIBOR rate plus 7.25% applicable margin.
TIMBER ASSETS
(IN THOUSANDS)
DEC. 31, 2018
$11,874 2,665
DEC. 31, 2017
$11,701 2,470
14,539 10,358
14,171 10,330
$4,181
$3,841
(IN THOUSANDS)
DEC. 31, 2018
$5,334
2,767 290
DEC. 31, 2017
$6,140
2,991 375
$8,391
$9,506
(IN THOUSANDS)
Land - plantsite
Land improvements
Buildings
Manufacturing equipment
O ce equipment
Transportation and rolling stock
Construction in progress
Less accumulated depreciation
NOTE 6
LONG-TERM DEBT
USEFUL LIVES
-
3-20 yrs 5-40 yrs
5-20 yrs 3-10 yrs
3-10 yrs -
DEC. 31, 2018
$6,290
336 16,549
58,282 2,566
558 7,131
DEC. 31, 2017
$6,290
161 16,486
58,098 993
448 62
Accrued interest
(IN THOUSANDS)
DEC. 31, 2018
$40,000 14,137
DEC. 31, 2017
$48,000 9,623
54,137 (355)
57,623 (492)
53,782 - $53,782
57,131
(1,500) $55,631
Note payable to Northwest Farm Credit Services for revolving line of credit
Note payable to U.S. Bank for revolving line of credit
Unamortized issuance costs
Less current portion
91,712 13,997
82,538 6,864
$77,715
$75,674
20
ANNUAL REPORT 2018