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Note I - Stock-based Compensation | 6 Months Ended
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Oct. 31, 2018
Notes to Financial Statements |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | I – Stock-Based Compensation 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 being utilized at October 31, 2018 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 approximately $1.7 million ( $1.3 million after tax effects) and $988,000 ( $619,000 after tax effects) for the six months ended October 31, 2018 and 2017, respectively. Tax benefits were recognized for these costs at the Company’s overall effective tax rate, excluding discrete income tax benefits related to excess benefits on share-based compensation. Stock Options The Company has options outstanding under a stock option plan approved by the shareholders, 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 to 1,800,000 shares. On August 29, 2018, the shareholders of the Company approved an amendment to the Restated Option Plan increasing the number of share of common stock reserved for issuance under the plan by an additional 200,000 shares to 2,000,000 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 2019 through 2028.
|  | 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 8, 2028 |
Shares available for grant at October 31, 2018 |  |  | 298,500 |
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.
|  | Six Months Ended October 31,
|  | 2018 |  | 2017
Expected term (years) |  |  | 5.5 |  |  |  | 5.5 |
Risk-free interest rate |  |  | 2.79 | % |  |  | 1.81 | %
Volatility |  |  | 36 | % |  |  | 36 | %
Dividend yield |  |  | - |  |  |  | - |
The expected term of the options is based on evaluations of historical actual and future expected 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. There were 145,000 options granted during the six months ended October 31, 2018 and 25,000 options granted during the six months ended October 31, 2017. The grant-date fair value of options granted during the months ended October 31, 2018 and 2017 was $3 million and $336,000, respectively. The options were granted at fair market value on the date of grant. Stock option compensation expense was $1.2 million ( $891,000 after tax effects) and $810,000 ( $508,000 after tax effects) for the six months ended October 31, 2018 and 2017, respectively. As of October 31, 2018, the Company had approximately $3.5 million of total unrecognized compensation cost related to unvested options that are expected to vest. These unvested outstanding options have a weighted-average remaining vesting period of 2.5 years. In May 2015, key employees of the Company were granted 91,125 performance-based stock options with a five -year performance period ending April 30, 2020. An additional 40,000 such options were granted to key employees of the Company in August 2015. Tiered vesting of these units is based solely on comparing the Company’s net income over the specified performance period to net income at April 30, 2015. As of October 31, 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 Company had the following options exercised for the periods indicated. The impact of these cash receipts is included in financing activities in the accompanying Condensed Consolidated Statements of Cash Flows.
|  | Six Months Ended October 31,
(Dollars in thousands) |  | 2018 |  | 2017
Options exercised |  |  | 220,750 |  |  |  | 113,000 |
Cash received from option exercises |  | $ | 4,294 |  |  | $ | 822 |
Intrinsic value of options exercised |  | $ | 8,317 |  |  | $ | 2,998 |
The aggregate intrinsic value of outstanding options at October 31, 2018 and 2017 was $18.5 million and $8.7 million, respectively. As of October 31, 2018, there were 182,250 vested and exercisable stock options outstanding with an aggregate intrinsic value of $7.2 million, a weighted average remaining contractual life of 3.2 years, and a weighted average exercise price of $35.36. Stock Incentive Plan On August 5, 2015, the shareholders of the Company approved the Amended and Restated Stock Incentive Plan (the “Restated Incentive Plan”), which extended the term of the Company’s Stock Incentive Plan to June 10, 2025. On August 29, 2018, the shareholders of the Company approved an amendment to the Restated Stock Incentive Plan that increased the number of shares of common stock that may be issued under the Restated Incentive Plan by 100,000 shares to 450,000. 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. There were 3,000 restricted shares granted during the six months ended October 31, 2018 and 34,500 restricted shares were granted during the six months ended October 31, 2017. A total of 106,027 shares remained available for award at October 31, 2018. There were 181,000 unvested restricted shares outstanding as of October 31, 2018 with a weighted average grant date fair value of $46.13. As of October 31, 2018, the Company had approximately $7.2 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 7.7 years. The Company recorded compensation cost of approximately $504,000 ( $383,000 after tax effects) and $168,000 ( $105,000 after tax effects) related to the Restated Incentive Plan during the six months ended October 31, 2018 and 2017, respectively. There were no modifications to any of the Company’s outstanding share-based payment awards during fiscal 2018 or during the first six months of fiscal 2019.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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