XML 45 R30.htm IDEA: XBRL DOCUMENT v3.21.4
Stockholders' Equity
 12 Months Ended
Oct. 31, 2021
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Stockholders’ Equity
Series A Junior Participating Preferred Stock
The Company has 20,000 shares of preferred stock authorized as Series A Junior Participating Preferred Stock at $0.01 par value (the “Series A Stock”). No shares are issued or outstanding.
Stock-based compensation 
The Company has a stock-based compensation plan (the “Stock Plan”) that allows for the grant of common stock of the Company to members of management, key executives and non-employee directors. The fair value of such awards is based on the fair value of the Company's stock on the date of grant and all are classified as equity awards. The Stock Plan has 156,036 remaining shares available to be issued as of October 31, 2021.
Performance Awards
Certain restricted stock grants are made to management each December under the Stock Plan based on the achievement of certain annual financial performance and other criteria achieved during the previous fiscal year (“Performance Awards”). The performance grants are based on a percentage of the employee’s base salary divided by the stock price on the grant date once the performance criteria has been met, and generally vest over a two-year period as service is provided. During December 2021, 2020 and 2019, there were no Performance Awards of restricted stock granted for fiscal year 2021, 2020 or 2019 performance because the financial performance and other criteria were not met.
20. Stockholders’ Equity (continued)
Stock-based compensation 
Executive Awards
Certain restricted stock grants are made to key executives under the Stock Plan (“Executive Awards”). These grants generally vest over a three to five-year period as service is provided. During December 2021, subsequent to fiscal year 2021, the Company granted 70,000 shares of common stock with a per share price of $14.96 to key executives under the Stock Plan. The related compensation expense of approximately $1,047,000 will be recognized equally over the next three years as the shares vest.
Director Awards
The Company issues shares of common stock to non-employee directors under the Stock Plan on an annual basis that vest upon grant (“Director Awards”).
A summary of the Performance, Executive, and Director awards granted under the Stock Plan during fiscal years 2021, 2020 and 2019, and the weighted average grant price is as follows:
Year Ended October 31,
202120202019
Number of SharesWeighted-Average Grant PriceNumber of SharesWeighted-Average Grant PriceNumber of SharesWeighted-Average Grant Price
Performance Awards— $— — $— 40,095 $18.74 
Executive Awards95,000 $15.26 95,000 $18.87 90,000 $19.84 
Director Awards30,663 $16.85 17,841 $20.05 15,642 $21.65 
Total125,663 $15.65 112,841 $19.06 145,737 $19.73 
The Company recognized $2,582,000, $2,044,000 and $1,791,000 of stock-based compensation in fiscal years 2021, 2020 and 2019, respectively, of which substantially all of the expense has been included in selling, general and administrative expenses for all years presented. Forfeitures are accounted for in the period that the forfeiture occurs. The income tax benefit recognized in the income statement for stock-based compensation arrangements was $476,000, $400,000 and $324,000 for fiscal years 2021, 2020 and 2019, respectively. The total fair value of shares vested during the years ended October 31, 2021, 2020 and 2019 was $2,951,000, $2,365,000 and $1,788,000 respectively. The Company has unrecognized stock-based compensation expense of $1,963,000 as of October 31, 2021, which is expected to be recognized over the next two years as the shares vest. All unvested shares are expected to vest.
During fiscal years 2021, 2020 and 2019, respectively, members of management exchanged 46,993, 11,314 and 36,627 shares of common stock with fair values of $701,000, $213,000 and $606,000, at the dates of the exchanges, for the payment of payroll taxes associated with the vesting of shares under the Company’s stock-based compensation programs.
A summary of the status of the Company’s nonvested shares as of October 31, 2021, and changes during the year ended October 31, 2021, is presented below:
Number of SharesWeighted-Average
Grant Price
Nonvested at October 31, 2020148,460 $19.85 
Granted125,663 $15.65 
Vested(161,123)$18.31 
Nonvested at October 31, 2021113,000 $17.38 
Treasury Stock
Share Repurchase Program
In fiscal year 2021, the Company's Board of Directors approved a share repurchase program authorizing it to repurchase up to $10,000,000 of its outstanding shares of common stock through September 2022; no shares have been repurchased under this program. In fiscal year 2020, the Company repurchased 250,977 shares for $3,493,000 under a program which expired in March 2021.
20. Stockholders’ Equity (continued)
Dividend
On December 14, 2021, the Company declared a $0.075 per share dividend payable on January 14, 2022, in the aggregate amount of $1,328,000 to common shareholders of record as of December 27, 2021.