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Stock Option Plan and Stock Based Compensation | 12 Months Ended
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Feb. 28, 2023
Share-Based Payment Arrangement [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. Prior to June 30, 2021, the Company had one stock incentive plan, the 2004 Long-Term Incentive Plan of Ennis, Inc., as amended and restated as of May 18, 2008 and was further amended on June 30, 2011 (the "Old Plan"). The Old Plan expired June 30, 2021 and all remaining unused shares expired. Subject to the affirmative vote of the shareholders, the Board adopted the 2021 Long-Term Incentive Plan of Ennis, Inc. (the "New Plan") on April 16, 2021 authorizing 1,033,648 shares of common stock for awards. The New Plan was approved by the shareholders at the Annual Meeting on July 15, 2021 by a majority vote. The New Plan expires June 30, 2031 and all unissued stock will expire on that date. At fiscal year ended February 28, 2023, the Company has 890,044 shares of unissued common stock reserved under the New Plan for issuance and 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 fiscal years ended 2023, 2022 and 2021, the Company included in selling, general and administrative expenses, compensation expense related to share based compensation of $2.8 million, $2.8 million and $1.4 million, respectively. Stock Options No stock options were granted during fiscal years 2023, 2022 or 2021. The Company had no unvested stock options outstanding at any time during the fiscal year ended February 28, 2023. Restricted Stock The following occurred with respect to the Company’s restricted stock awards for each of the three fiscal years ended February 28, 2023:
|  |  |  | Weighted |
|  |  |  | Average |
| Number of |  |  | Grant Date |
| Shares |  |  | Fair Value |
Outstanding at March 1, 2020 |  | 143,926 |  |  | $ | 19.79 |
Granted |  | 59,315 |  |  |  | 17.09 |
Terminated |  | (10,098 | ) |  |  | 19.00 |
Vested |  | (73,414 | ) |  |  | 19.16 |
Outstanding at February 28, 2021 |  | 119,729 |  |  | $ | 18.90 |
Granted |  | 51,920 |  |  |  | 20.30 |
Terminated |  | — |  |  |  | 19.00 |
Vested |  | (104,485 | ) |  |  | 19.70 |
Outstanding at March 1, 2022 |  | 67,164 |  |  | $ | 18.73 |
Granted |  | 22,000 |  |  |  | 19.78 |
Terminated |  | — |  |  |  | — |
Vested |  | (39,381 | ) |  |  | 19.00 |
Outstanding at February 28, 2023 |  | 49,783 |  |  | $ | 18.99 |
As of February 28, 2023, the total remaining unrecognized compensation cost related to unvested restricted stock was approximately $0.6 million. The weighted average remaining requisite service period of the unvested restricted stock awards was 1.4 years. As of February 28, 2023, the Company’s outstanding restricted stock had an underlying fair value of $0.9 million at date of grant. Restricted Stock Units During the fiscal year ended February 28, 2023, 93,532 performance-based RSUs and 9,893 time-based RSUs were granted under the New Plan. The fair value of the time-based RSUs was estimated based on the fair market value of the Company’s stock on the date of grant of $19.47 per unit. The fair value of the performance-based RSUs, using a Monte Carlo valuation model, was $23.17 per unit. The performance measures include a threshold, target and maximum performance level providing the grantees an opportunity to receive more or less shares than targeted depending on actual financial performance. The award will be based on the Company’s return on equity, EBITDA and adjusted for the Company’s Relative Shareholder Return as measured against a defined peer group. The performance-based RSUs will vest no later than March 15, 2024, which is the deadline for the Compensation Committee to determine the extent of the Company’s attainment of the Performance Goals during the Performance Period that ends on February 29, 2024. The time-based RSUs vest ratably over two to three years from the date of grant. The following occurred with respect to the Company’s restricted stock units ("RSUs") for each of the three fiscal years ended February 28:
| Time-based |  |  | Performance-based |
|  |  |  | Weighted |  |  |  |  |  | Weighted |
|  |  |  | Average |  |  |  |  |  | Average |
| Number of |  |  | Grant Date |  |  | Number of |  |  | Grant Date |
| Shares |  |  | Fair Value |  |  | Shares |  |  | Fair Value |
Outstanding at February 28, 2021 |  | — |  |  | $ | — |  |  |  | — |  |  | $ | — |
Granted |  | 44,494 |  |  |  | 20.38 |  |  |  | 177,977 |  |  |  | 23.17 |
Terminated |  | (9,423 | ) |  |  | 20.38 |  |  |  | (37,690 | ) |  |  | 23.17 |
Vested |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Outstanding at March 1, 2022 |  | 35,071 |  |  | $ | 20.38 |  |  |  | 140,287 |  |  | $ | 23.17 |
Granted |  | 9,893 |  |  |  | 19.47 |  |  |  | 93,532 |  |  |  | 23.17 |
Terminated |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Vested |  | (11,690 | ) |  |  | 20.38 |  |  |  | — |  |  |  | — |
Outstanding at February 28, 2023 |  | 33,274 |  |  | $ | 20.11 |  |  |  | 233,819 |  |  | $ | 23.17 |
As of February 28, 2023, the total remaining unrecognized compensation cost of time-based RSUs was approximately $0.4 million over a weighted average remaining requisite service period of 1.5 years. The total remaining unrecognized compensation of performance-based RSUs was approximately $2.2 million over a weighted average remaining requisite service period of 1.8 years. As of February 28, 2023, the Company’s outstanding RSUs had an underlying fair value of $6.1 million at date of grant.

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