This excerpt taken from the TISI 10-K filed Aug 15, 2005.
The Company holds certain floating-rate obligations. The Company is exposed to market risk, primarily related to potential increases in interest rates related to the Companys debt.
The carrying amounts for cash and cash equivalents, accounts receivable, note payable and accrued liabilities shown in the consolidated balance sheets approximate fair value at May 31, 2005.
This excerpt taken from the TISI 10-K filed Apr 14, 2005.
The Company has a credit facility, which subjects the Company to the risk of loss associated with movements in market interest rates. At May 31, 2004, the Company has floating-rate obligations totaling $18.6 million outstanding under its credit facility (see Note 6 to the Companys Consolidated Financial Statements). A 1% increase in interest rates could result in an annual increase in interest expense of $186,000.