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Note K - Stock Based Compensation Plans
 12 Months Ended
Apr. 30, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
K – Stock-Based Compensation Plans

The Company has stock-based compensation plans available to grant non-qualified stock options, incentive stock options and restricted stock to employees, directors and certain advisors of the Company.  The stock-based compensation plans currently being utilized are the 2007 Stock Option Plan (the “2007 Plan”) and the Stock Incentive Plan.  At April 30, 2012, there are 680,250 vested but unexercised options outstanding under the 1997 Option Plan (“1997 Plan”).  The Company recorded total stock-based compensation expense for all plans of $2.2 million ($1.4 million after tax effects) and $2.9 million ($1.8 million after tax effects) for the year ended April 30, 2012 and 2011, respectively.  Tax benefits were recognized for these costs at the Company’s overall effective tax rate.

Stock Options

The Company has options outstanding under two stock option plans approved by the shareholders, the 1997 Stock Option Plan (“1997 Plan”) and the 2007 Stock Option Plan (the “2007 Plan”).  While previously granted options remain outstanding, no additional option grants may be made under the 1997 Plan.  The shareholders of the Company approved an amendment to the Company’s 2007 Plan on October 13, 2010. The amendment increased from 1,000,000 to 1,500,000 the number of options to purchase our common stock that may be issued under the 2007 Plan.  The 2007 Plan provides for the grant of options to purchase shares of the Company’s common stock to employees, directors and certain advisors of the Company at a price not less than the fair market value of the stock on the date of grant and for periods not to exceed ten years.  Options granted under the Company’s stock option plans expire in the calendar years 2013 through 2022.

 
1997 Plan
2007 Plan
Minimum exercise price as a percentage of fair market value at date of grant
100%
100%
Last expiration date for outstanding options
July 2, 2017
March 27, 2022
Shares available for grant at April 30, 2012
-
432,500

The fair value of options granted is estimated on the date of grant using the Black-Scholes option pricing model based on the assumptions in the table below.

   
April 30, 2012
 
April 30, 2011
 
April 30, 2010
Expected terms (years)
 
5.0
 
5.0
 
5.0
Risk-free interest rate
 
1.48%
 
1.80%
 
2.07%
Volatility
 
50%
 
50%
 
54%
Dividend yield
 
-
 
-
 
-

The expected term of the options is based on evaluations of historical and expected future employee exercise behavior.  The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected life at the grant date.  Volatility is based on historical volatility of the Company’s common stock.  The Company has not historically issued any dividends and does not expect to do so in the foreseeable future.

The following is an aggregate summary of the activity in the Company’s stock option plans from April 30, 2009 to April 30, 2012:

   
Number
of
Shares
   
Exercise
Price
per Share
   
Proceeds
on
Exercise
   
Weighted Average
Exercise Price per
Share
 
                         
Outstanding at April 30, 2009
    526,647       $3.67 to $ 23.75     $ 7,169,018     $ 13.61  
                                 
Granted
    595,000       $21.14 to $ 24.47       14,396,700       24.20  
Exercised
    (11,250 )     $13.37 to $ 21.14       (200,138 )     17.79  
                                 
Outstanding at April 30, 2010
    1,110,397       $6.59 to $ 24.47     $ 21,365,580     $ 19.24  
                                 
Granted
    23,750       $22.87       543,163       22.87  
Expired
    (1,000 )     $11.62       (11,620 )     11.62  
                                 
Outstanding at April 30, 2011
    1,133,147       $6.59 to $ 24.47     $ 21,897,123     $ 19.32  
                                 
Granted
    73,750       $24.69 to $ 45.72       2,354,838       31.93  
Exercised
    (88,647 )     $6.59 to $ 24.69       (1,370,207 )     15.46  
                                 
Outstanding at April 30, 2012
    1,118,250       $11.83 to $ 45.72     $ 22,881,754     $ 20.46  

Stock option compensation expense on a pre-tax basis was $2.0 million ($1.3 million after tax effects) and $2.7 million ($1.7 million after tax effects) and $2.5 million ($1.6 million after tax effects) for the years ended April 30, 2012, 2011 and 2010, respectively.  As of April 30, 2012, the Company had $2.3 million of total unrecognized compensation cost related to unvested options.  Unvested outstanding options have a weighted-average remaining vesting period of 1.17 years.

The grant-date fair value of all options granted during fiscal 2012, 2011 and 2010 was $1.0 million, $244,000 and $6.9 million respectively. The options were granted at fair market value on date of grant.  Generally options vest after three years, except for options issued to directors which are immediately vested at date of grant.

The aggregate intrinsic value of outstanding options at April 30, 2012 and 2011 was $28.5 million and $5.8 million, respectively.

The Company received cash from options exercised of $1.4 million and $200,000 in fiscal years 2012 and 2010, respectively.  The impact of these cash receipts is included in financing activities in the accompanying Consolidated Statements of Cash Flows.  The intrinsic value for options exercised was $1.5 million and $85,000 in fiscal years 2012 and 2010, respectively.  There were no options exercised in fiscal 2011.

As of April 30, 2012 there were 680,250 vested and exercisable stock options outstanding with a weighted average remaining contractual life of 5.98 years and a weighted average exercise price of $17.25.

Stock Incentive Plan

The shareholders of the Company approved an amendment to the Company’s Stock Incentive Plan on October 14, 2009.  The amendment increased from 150,000 to 350,000 the number of shares of common stock that may be issued under the Stock Incentive Plan.  For shares issued under the Stock Incentive Plan, the associated compensation expense is generally recognized equally over the vesting periods established at the award date and is subject to the employee’s continued employment by the Company.

The following is a summary of the activity in the Company’s Stock Incentive Plan:

   
Number of
Shares
   
Weighted
Average Grant
Date Fair
Value
 
Unvested shares at April 30, 2011
    29,000     $ 22.79  
                 
Shares granted
    -       -  
Shares vested
    2,000       19.06  
                 
Unvested Shares at April 30, 2012
    27,000     $ 23.07  

During the fiscal year 2010, 10,000 restricted shares were granted with a fair value of $19.06 per share and 20,000 restricted shares were granted with a fair value of $24.47 per share, the market prices of the Company’s stock on the grant dates.

The fair value at vesting for awards under the stock incentive plan was $92,000, $76,000 and $624,000 in fiscal 2012, 2011 and 2010, respectively.

 A total of 187,027 shares remain available for award at April 30, 2012.

The Company recorded compensation cost of $137,000 ($86,000 after tax effects), $188,000 ($118,000 after tax effects) and $220,000 ($141,000 after tax effects) related to the Stock Incentive Plan during the years ended April 30, 2012, 2011 and 2010, respectively.  As of April 30, 2012 the Company had $317,000 of total unrecognized compensation cost related to unvested awards granted under the Stock Incentive Plan, which the Company expects to recognize over a weighted-average remaining period of 2.49 years.