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Stock-Based Compensation
 3 Months Ended
Jun. 25, 2011
Stock-Based Compensation [Abstract]  
STOCK-BASED COMPENSATION
NOTE 3 — STOCK-BASED COMPENSATION
The Transcat, Inc. 2003 Incentive Plan, as amended (the “2003 Plan”), provides for, among other awards, grants of restricted stock and stock options to directors, officers and key employees at the fair market value at the date of grant. At June 25, 2011, the number of shares available for future grant under the 2003 Plan totaled 0.2 million.
In addition, Transcat maintains a warrant plan for directors (the “Directors’ Warrant Plan”). Under the Directors’ Warrant Plan, as amended, warrants have been granted to non-employee directors to purchase common stock at the fair market value at the date of grant. All warrants authorized for issuance pursuant to the Directors’ Warrant Plan have been granted, were fully vested as of August 2009 and expire August 2011.
Restricted Stock: During the first quarter of fiscal years 2012, 2011 and 2010, the Company granted performance-based restricted stock awards that vest after three years subject to certain cumulative diluted earnings per share growth targets over the eligible three-year period.
Compensation cost ultimately recognized for these performance-based restricted stock awards will equal the grant date fair market value of the award that coincides with the actual outcome of the performance conditions. On an interim basis, the Company records compensation cost based on an assessment of the probability of achieving the performance conditions. At June 25, 2011, the Company estimated the probability of achievement for the performance-based restricted stock awards granted in fiscal years 2012, 2011 and 2010 to be 100%, 75% and 50% of the target levels, respectively. Total expense relating to performance-based restricted stock awards, based on grant date fair value and the estimated probability of achievement, was less than $0.1 million and $0.1 million in the first quarters of fiscal years 2012 and 2011, respectively. Unearned compensation totaled $0.4 million as of June 25, 2011.
On April 4, 2011, the Company granted restricted stock awards, which vested immediately, to its officers and certain key employees. Total expense related to these restricted stock awards, based on grant date fair value, was $0.1 million in the first quarter of fiscal year 2012.
Stock Options: Options generally vest over a period of up to four years, using either a graded schedule or on a straight-line basis, and expire ten years from the date of grant. The expense relating to options is recognized on a straight-line basis over the requisite service period for the entire award.
The following table summarizes the Company’s options as of and for the first quarter ended June 25, 2011:
                                 
            Weighted              
            Average     Weighted Average        
    Number     Exercise     Remaining     Aggregate  
    of     Price Per     Contractual     Intrinsic  
    Shares     Share     Term (in years)     Value  
Outstanding as of March 26, 2011
    654     $ 5.77                  
Granted
    —       —                  
Exercised
    (4 )     5.15                  
Cancelled/Forfeited
    (53 )     6.80                  
 
                             
Outstanding as of June 25, 2011
    597       5.75       5     $ 2,800  
 
                       
Exercisable as of June 25, 2011
    478       5.24       5       2,396  
 
                       
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the first quarter of fiscal year 2012 and the exercise price, multiplied by the number of in-the-money stock options) that would have been received by the option holders had all holders exercised their options on June 25, 2011. The amount of aggregate intrinsic value will change based on the fair market value of the Company’s stock.
Total unrecognized compensation cost related to non-vested stock options as of June 25, 2011 was less than $0.1 million, which is expected to be recognized over a weighted average period of approximately one year. The aggregate intrinsic value of stock options exercised in the first quarter of fiscal year 2012 was less than $0.1 million. Cash received from the exercise of options in the first quarter of fiscal year 2012 was less than $0.1 million.
Warrants: The following table summarizes the Company’s warrants, which are set to expire in August 2011, as of and for the first quarter ended June 25, 2011:
                         
            Weighted        
            Average        
    Number     Exercise     Aggregate  
    of     Price Per     Intrinsic  
    Shares     Share     Value  
Outstanding as of March 26, 2011
    17     $ 5.80          
Granted
    —       —          
Exercised
    (3 )     5.80          
Cancelled/Forfeited
    —       —          
 
                     
Outstanding as of June 25, 2011
    14       5.80     $ 64  
 
                 
Exercisable as of June 25, 2011
    14       5.80       64  
 
                 
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the first quarter of fiscal year 2012 and the exercise price, multiplied by the number of in-the-money warrants) that would have been received by the warrant holders had all holders exercised their warrants on June 25, 2011. The amount of aggregate intrinsic value will change based on the fair market value of the Company’s stock. The aggregate intrinsic value of warrants exercised in the first quarter of fiscal year 2012 was less than $0.1 million. Cash received from the exercise of warrants in the first quarter of fiscal year 2012 was less than $0.1 million.