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Note K - Stock-based Compensation Plans
 12 Months Ended
Apr. 30, 2017
Notes to Financial Statements  
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 current stock-based compensation plans are the Amended and Restated Stock Option Plan and the Amended and Restated Stock Incentive Plan. The Company recorded total stock-based compensation expense for all plans of
$1.3
million (
$811,000
after tax effects),
$1.5
million (
$952,000
after tax effects) and
$780,000
(
$489,000
after tax effects) for the years ended
April 30, 2017,
2016
and
2015,
respectively. Tax benefits were recognized for these costs at the Company’s overall effective tax rate
.
 
Stock Options
 
The Company has options outstanding under the Amended and Restated Stock Option Plan. The shareholders of the Company approved the Amended and Restated Stock Option Plan (the “Restated Option Plan”) on
August 5, 2015,
which extended the term of the Restated Option Plan to
June 10, 2025
and increased the number of shares of common stock reserved for issuance under the plan by an additional
300,000
shares to
1,800,000
shares. The Restated Option 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
2016
through
2027.
 
    Restated Option Plan
Minimum exercise price as a percentage of fair market value at date of grant    
100
 %
Last expiration date for outstanding options    
March 13, 2027
  
Shares available for grant at April 30, 2017    
277,500
  
 
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, 2017   April 30, 2016   April 30, 2015
Expected terms (years)    
5.5
      
5.5
      
5.4
  
Risk-free interest rate    
1.47
 %    
1.55
 %    
1.64
 %
Volatility    
36
 %    
34
 %    
34
 %
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 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, 2014
to
April 30, 2017:
 
    Number
of
Shares		   Exercise
Price
per Share		   Proceeds
on
Exercise		   Weighted Average
Exercise Price per
Share
            (in thousands)    
Outstanding at April 30, 2014    
1,117,000
    
$ 11.90
to
$ 46.44
   $
24,294
     $
21.75
  
Granted    
89,000
    
$ 36.54
to
$ 50.25
    
3,997
      
44.91
  
Exercised    
(212,250
 )  
$ 11.90
to
$ 45.46
    
(4,143
 )    
19.52
  
Cancelled    
(12,000
 )  
$ 41.86
to
$ 45.72
    
(540
 )    
45.08
  
Outstanding at April 30, 2015    
981,750
    
$ 11.90
to
$ 53.02
   $
23,608
     $
24.05
  
                                 
Granted    
338,750
    
$ 26.37
to
$ 53.02
    
16,471
      
48.62
  
Exercised    
(30,750
 )  
$ 11.90
to
$ 23.34
    
(400
 )    
13.00
  
Cancelled    
(11,500
 )  
$ 41.86
to
$ 53.02
    
(598
 )    
52.05
  
Outstanding at April 30, 2016    
1,278,250
    
 
 
 
   $
39,081
     $
30.57
  
                                 
Granted    
45,000
    
$ 26.42
to
$ 34.09
    
1,301
      
28.90
  
Exercised    
(264,500
 )  
$ 11.90
to
$ 28.13
    
(4,363
 )    
17.92
  
Cancelled    
(30,250
 )  
$ 41.86
to
$ 53.02
    
(1,559
 )    
51.55
  
Outstanding at April 30, 2017    
1,028,500
    
 
 
 
   $
34,460
     $
33.51
  
 
Stock option compensation expense on a pre-tax basis was
$1.2
million (
$728,000
after tax effects),
$1.4
million (
$870,000
after tax effects) and
$664,000
(
$416,000
after tax effects) for the years ended
April 30, 2017,
2016
and
2015,
respectively. As of
April 30, 2017,
the Company had approximately
$2.8
million of total unrecognized compensation cost related to unvested options that are expected to vest. These options have a weighted-average remaining vesting period of
2.9
years.
 
There were
45,000
options granted during fiscal
2017.
The grant-date fair value of all options granted during fiscal
2017,
2016
and
2015
was
$461,000,
$5.6
million and
$1.4
million, respectively. The options were granted at fair market value on date of grant. Generally, options vest after
three
to
five
years, except for options issued to directors which are immediately vested at date of grant.
 
As of
April 30, 2017,
there were
131,125
performance based stock options outstanding that were granted in fiscal year
2016
with a
five
-year performance period ending
April 30, 2020.
Tiered vesting of these options is based solely on comparing the Company’s net income over the specified performance period to net income at
April 30, 2015.
As of
April 30, 2017,
the Company had
$1.1
million in unrecognized compensation expense related to
62,750
of these options that are
not
currently expected to vest.
 
The aggregate intrinsic value of outstanding options at
April 30, 2017
and
2016
was
$8.7
million and
$4.8
million, respectively.
 
The Company had the following options exercised for the periods indicated. The impact of these cash receipts is included in financing activities in the accompanying Consolidated Statements of Cash Flows
.
 
    Years Ended April 30,
(Dollars in thousands)   2017   2016   2015
             
Options Exercised    
264,500
      
30,750
      
212,250
  
Cash Received from Options Exercised   $
2,609
     $
400
     $
4,143
  
Intrinsic Value of Options Exercised   $
6,439
     $
943
     $
5,983
  
 
During the year ended
April 30, 2017,
there were
88,750
options exercised through net settlements in accordance with plan provisions, wherein the shares issued were reduced by
68,397
shares to satisfy the exercise price and applicable withholding taxes to acquire
20,353
shares.
 
As of
April 30, 2017
there were
669,500
vested and exercisable stock options outstanding with an aggregate intrinsic value of
$8.2
million and a weighted average remaining contractual life of
3.11
years and a weighted average exercise price of
$26.17.
 
Stock Incentive Plan
 
On
October 14, 2009,
the shareholders of the Company approved an amendment to the Company’s Stock Incentive Plan that increased the number of shares of common stock that
may
be issued under the Stock Incentive Plan from
150,000
to
300,000.
On
August 5, 2015,
the shareholders of the Company approved the Amended and Restated Stock Incentive Plan, which extended the term of the Stock Incentive Plan to
June 10, 2025.
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, 2016    
9,500
     $
52.10
  
Shares granted    
10,000
      
39.14
  
Shares vested    
-
      
-
  
Shares cancelled    
(2,500
 )    
49.51
  
                 
Unvested shares at April 30, 2017    
17,000
     $
44.86
  
 
The fair value at vesting for awards under the stock incentive plan was
$763,000,
$495,000
and
$495,000
in fiscal
2017,
2016
and
2015,
respectively.
 
During the fiscal year
2017,
10,000
restricted shares were granted with a fair value of
$39.14
per share. There were
no
restricted shares granted during fiscal year
2016.
During the fiscal year
2015,
9,500
restricted shares were granted with a fair value of
$52.10
per share. A total of
170,027
shares remain available for award at
April 30, 2017.
 
The Company recorded compensation cost of
$107,000
(
$67,000
after tax effects),
$99,000
(
$62,000
after tax effects) and
$90,000
(
$56,000
after tax effects) related to the Stock Incentive Plan during the years ended
April 30, 2017,
2016
and
2015,
respectively. As of
April 30, 2017
the Company had
$557,000
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
four
years.