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Note K - Stock-based Compensation Plans
 12 Months Ended
Apr. 30, 2018
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
$1.6
million (
$1.1
million after tax effects),
$1.3
million (
$811,000
after tax effects) and
$1.5
million (
$952,000
after tax effects) for the years ended
April 30, 2018,
2017
and
2016,
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
2018
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  
May 1, 2027
Shares available for grant at April 30, 2018  
297,500
 
 
 
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, 2018   April 30, 2017   April 30, 2016
Expected terms (years)  
5.5
  
5.5
  
5.5
Risk-free interest rate  
1.81%
  
1.47%
  
1.55%
Volatility  
36%
  
36%
  
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, 2015
to
April 30, 2018:
 
    Number of Options   Exercise Price per Share   Proceeds on Exercise   Weighted Average Exercise Price per Share
            (in thousands)    
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
    
(4,739
 )    
17.92
  
Cancelled    
(30,250
 )  
$41.86
to
$53.02
    
(1,559
 )    
51.55
  
Outstanding at April 30, 2017    
1,028,500
    
 
   $
34,084
     $
33.51
  
Granted    
25,000
    
 
$37.30
 
    
933
      
37.30
  
Exercised    
(323,000
 )  
$11.90
to
$37.94
    
(6,692
 )    
20.72
  
Expired    
(15,000
 )  
$44.52
-
$51.81
    
(710
 )    
47.26
  
Cancelled    
(20,000
 )  
$41.86
to
$53.02
    
(932
 )    
46.61
  
Outstanding at April 30, 2018    
695,500
    
 
   $
26,683
     $
30.50
  
 
Stock option compensation expense on a pre-tax basis was
$1.2
million (
$773,000
after tax effects),
$1.2
million (
$728,000
after tax effects) and
$1.4
million (
$870,000
after tax effects) for the years ended
April 30, 2018,
2017
and
2016,
respectively. As of
April 30, 2018,
the Company had approximately
$1.7
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
1.9
years.
 
There were
25,000
options granted during fiscal
2018.
The grant-date fair value of all options granted during fiscal
2018,
2017
and
2016
was
$336,000,
$461,000
and
$5.6
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, 2018,
there were
126,500
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, 2018,
the Company had
$1
million in unrecognized compensation expense related to
61,000
of these options that are
not
currently expected to vest.
 
The aggregate intrinsic value of outstanding options at
April 30, 2018
and
2017
was
$10.4
million and
$8.7
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)   2018   2017   2016
             
Options Exercised    
323,000
      
264,500
      
30,750
  
Cash Received from Options Exercised   $
2,832
     $
2,609
     $
400
  
Intrinsic Value of Options Exercised   $
8,381
     $
6,439
     $
943
  
 
During the year ended
April 30, 2018,
there were
187,000
options exercised through net settlements in accordance with plan provisions, wherein the shares issued were reduced by
106,366
shares to satisfy the exercise price and applicable withholding taxes to acquire
80,634
shares.
 
As of
April 30, 2018,
there were
367,500
vested and exercisable stock options outstanding with an aggregate intrinsic value of
$8.4
million and a weighted average remaining contractual life of
2.66
years and a weighted average exercise price of
$30.50.
 
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, 2015    
9,500
     $
52.10
  
Shares granted    
-
      
-
  
Shares vested    
-
      
-
  
Shares cancelled    
-
      
-
  
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
  
Shares granted    
166,500
      
45.86
  
Shares vested    
-
      
-
  
Shares cancelled    
(4,500
 )    
38.28
  
Unvested shares at April 30, 2018    
179,000
     $
45.96
  
 
The fair value at vesting for awards under the stock incentive plan was
$8.2
million,
$763,000
and
$495,000
in fiscal
2018,
2017
and
2016,
respectively.
 
During the fiscal year
2018,
132,000
restricted shares were granted with a fair value of
$48.70
per share and
34,500
shares were granted with a fair value of
$35.00
per share. 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.
A total of
8,027
shares remain available for award at
April 30, 2018.
 
The Company recorded compensation cost of
$430,000
(
$288,000
after tax effects),
$107,000
(
$67,000
after tax effects) and
$99,000
(
$62,000
after tax effects) related to the Stock Incentive Plan during the years ended
April 30, 2018,
2017
and
2016,
respectively. As of
April 30, 2018,
the Company had
$7.6
million 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
8.2
years.