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Stock Option Plan and Stock Based Compensation
 3 Months Ended
May 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Option Plan and Stock Based Compensation

10. Stock Option Plan and Stock Based Compensation

The Company grants stock options and restricted stock to key executives and managerial employees and non-employee directors. At May 31, 2017, the Company had one stock option plan, the 2004 Long-Term Incentive Plan of Ennis, Inc., as amended and restated as of June 30, 2011, formerly the 1998 Option and Restricted Stock Plan amended and restated as of May 14, 2008 (the “Plan”). The Company has 529,408 shares of unissued common stock reserved under the Plan for issuance as of May 31, 2017. The exercise price of each stock option granted under the Plan equals a referenced price of the Company’s common stock as reported on the New York Stock Exchange on the date of grant, and an option’s maximum term is ten years. Stock options and restricted stock may be granted at different times during the year and vest ratably over various periods, from grant date up to five years. The Company uses treasury stock to satisfy option exercises and restricted stock awards.

The Company recognizes compensation expense for stock options and restricted stock grants on a straight-line basis over the requisite service period. For the three months ended May 31, 2017 and May 31, 2016, the Company included compensation expense related to share-based compensation of $0.3 million ($0.2 million net of tax), and $0.3 million ($0.2 million net of tax), respectively, in selling, general, and administrative expenses.

Stock Options

The Company had the following stock option activity for the three months ended May 31, 2017:

 

     Number
of Shares
(exact quantity)		      Weighted
Average
Exercise
Price		      Weighted
Average
Remaining
Contractual
Life (in years)		      Aggregate
Intrinsic
Value(a)
(in thousands)		  

Outstanding at March 1, 2017

      172,496      $ 15.95        4.2      $ 223  

Granted

      —          —          

Terminated

      —          —          

Exercised

      —          —          
  

 

 

           

Outstanding at May 31, 2017

      172,496      $ 15.95        4.0      $ 200  
  

 

 

           

Exercisable at May 31, 2017

      170,880      $ 15.97        3.9      $ 196  
  

 

 

           

 

(a) Intrinsic value is measured as the excess of fair market value of the Company’s common stock as reported on the New York Stock Exchange over the applicable exercise price.

No stock options were granted during the three months ended May 31, 2017 and May 31, 2016.

A summary of the stock options exercised and tax benefits realized from stock based compensation is presented below (in thousands):

 

     Three months ended  
     May 31,  
     2017      2016  

Total cash received

    $ —        $ 2,910  

Income tax benefits

      —          —    

Total grant-date fair value

      —          532  

Intrinsic value

      —          969  

 

A summary of the Company’s unvested stock options at May 31, 2017 and the changes during the three months ended May 31, 2017 are presented below:

 

     Number
of Options		      Weighted
Average
Grant Date
Fair Value		  

Unvested at March 1, 2017

      5,073      $ 2.41  

New grants

      —          —    

Vested

      (3,457 )       2.48  

Forfeited

      —          —    
  

 

 

     

Unvested at May 31, 2017

      1,616      $ 2.24  
  

 

 

     

As of May 31, 2017, there was approximately $2,000 of unrecognized compensation cost related to unvested stock options granted under the Plan. The weighted average remaining requisite service period of the unvested stock options was 0.9 years.

Restricted Stock

The Company had the following restricted stock grant activity for the three months ended May 31, 2017:

 

     Number of
Shares		      Weighted
Average
Grant Date
Fair Value		  

Outstanding at March 1, 2017

      166,546      $ 16.35  

Granted

      74,900        16.30  

Terminated

      —          —    

Vested

      (85,189 )       15.87  
  

 

 

     

Outstanding at May 31, 2017

      156,257      $ 16.60  
  

 

 

     

As of May 31, 2017, the total remaining unrecognized compensation cost related to unvested restricted stock granted under the Plan was approximately $2.4 million. The weighted average remaining requisite service period of the unvested restricted stock awards was 2.1 years.