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Stockholders’ Equity
 12 Months Ended
Oct. 31, 2024
Share-Based Payment Arrangement [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 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. In fiscal year 2022, the 2010 Stock Plan terminated and was replaced by the 2022 Stock Plan (the “Stock Plan” and together with the 2010 Stock Plan, the "Stock Plans") with 500,000 initial authorized shares. In fiscal year 2024 an additional 1,000,000 shares were authorized. The Stock Plan had 944,544 remaining shares available to be issued as of October 31, 2024.
Management Performance Awards
Certain restricted stock grants are made to management under the Stock Plans ("Performance Awards"). Historically, the Company granted awards to management each December based on the achievement of certain annual financial performance and other criteria achieved during the previous fiscal year. These grants were based on a percentage of the employee’s base salary divided by the stock price on the grant date once the performance criteria were met, and generally vested over a two-year period as service is provided. During December 2023, 36,127 shares of stock with a per share price of $19.57 were granted to management for fiscal year 2023 performance, resulting in total compensation expense of approximately $707,000, with $293,000 recognized in fiscal year 2023, and the balance recognized over the next two years as the shares vest.
During April 2024, 4,330 shares of stock with a weighted average per share price of $19.49 were granted to management and vested upon issuance. The related compensation expense of $84,000 was recognized upon vesting. During May 2024, 35,779 shares of stock with a per share price of $20.07 were granted to management. The related compensation expense of approximately $718,000 will be recognized over three years as the shares vest.
In May 2024, the Company entered into Performance Share-Based Agreements with members of management whereby the employees may be granted up to a maximum of 71,558 shares of common stock in the future based on the achievement of certain long-term performance goals over a three-year period. The Company recorded $306,000 of stock compensation expense, based on the awards probable of vesting, during fiscal year 2024.
Executive Awards
Certain restricted stock grants are made to key executives under the Stock Plans (“Executive Awards”). These grants generally vest over a three-year period as service is provided. During November 2023, the Company granted 53,078 shares of common stock with a per share price of $14.13 to key executives. The related compensation expense of approximately $750,000 will be recognized equally over the next three years as the shares vest.
20. Stockholders’ Equity (continued)
Stock-based Compensation (continued)
Executive Awards (continued)
In fiscal year 2022, the Company entered into Retention Bonus Agreements with key executives (collectively, the “Retention Bonus Agreements”) whereby the executives are eligible to receive cash and restricted stock grants. During December 2023, the Company granted 12,709 shares of common stock with a per share price of $19.57 to key executives related to the Retention Bonus Agreements. The related compensation expense of approximately $249,000 had $115,000 recognized for fiscal year 2023 and the balance recognized over the next year as the shares vest. During June 2024, the Company granted 40,926 shares of stock with a per share price of $20.36. The related compensation expense of approximately $833,000 will be recognized over one year as the shares vest.
In November 2023, the Company entered into Performance Share-Based Award Agreements with key executives whereby the executives may be granted up to a maximum of 106,157 shares of common stock in the future based on the achievement of certain long-term performance goals over a three-year period. The Company recorded $454,000 of stock compensation expense, based on the awards probable of vesting, during fiscal year 2024.
Director Awards
The Company issues shares of restricted common stock to non-employee directors under the Stock Plan on an annual basis that generally vest after a one-year period (“Director Awards”). During January 2024, 609 shares of stock were granted as Director Awards with a per share price of $20.37. During March 2024, an additional 26,478 shares of stock were granted as Director Awards with a per share price of $19.26.
Summary of Awards
A summary of the Performance, Executive, and Director Awards granted under the Stock Plan, and the weighted average grant prices, during the fiscal years ended October 31, is as follows:
202420232022
Number of SharesWeighted-Average Grant PriceNumber of SharesWeighted-Average Grant PriceNumber of SharesWeighted-Average Grant Price
Performance Awards76,236 $19.80 79,972 $13.19 — $— 
Executive Awards106,713 $17.18 193,381 $14.87 70,000 $14.96 
Director Awards27,087 $19.28 22,836 $16.26 49,231 $13.55 
Total210,036 $18.40 296,189 $14.52 119,231 $14.38 
The Company recognized $4,116,000, $3,841,000 and $2,732,000 of stock-based compensation for fiscal years 2024, 2023 and 2022, respectively, of which the majority 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 $1,451,000, $1,075,000 and $604,000 for fiscal years 2024, 2023 and 2022, respectively. The total fair value of shares vested was $3,976,000, $1,323,000 and $1,856,000 for fiscal years 2024, 2023 and 2022, respectively. The Company has unrecognized stock-based compensation expense of $1,700,000 as of October 31, 2024, which is expected to be recognized over the next one to two years as the shares vest. All unvested shares are expected to vest.
Exchange of Common Stock
During fiscal years 2024, 2023 and 2022 members of management exchanged 117,897, 39,472 and 105,316 shares of common stock with fair values of $2,312,000, $567,000 and $1,530,000, respectively, 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.
20. Stockholders’ Equity (continued)
Stock-based Compensation (continued)
Summary of Nonvested Shares
A summary of the status of the Company’s nonvested shares as of October 31, 2024, and changes during fiscal year 2024, is presented below:
Number of SharesWeighted-Average
Grant Price
Nonvested at October 31, 2023314,522 $14.55 
Granted210,036 $18.40 
Vested(264,411)$15.04 
Nonvested at October 31, 2024260,147 $17.16 
Dividend
On December 17, 2024, the Company declared a cash dividend of $0.075 per common share payable on January 15, 2025, in the aggregate amount of $1,357,000 to common stockholders of record as of December 30, 2024.