Stock-Based Compensation (Tables)

3 Months Ended

May 05, 2018

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model. There were no stock options granted in the first quarter of fiscal 2017. The following assumptions were used for grants for the first quarter of fiscal 2018:

	May 5, 2018
Expected volatility		48.9	%
Risk-free interest rate		2.55	%
Expected life	4.5 yrs
Dividend rate		—

Employee Stock Plan, 2006 Plan and 2016 Plan

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Summary of Restricted Stock Activity

The following tables summarize the share activity and stock option activity for the Company’s 2006 Plan and 2016 Plan, on a combined basis, for the first three months of fiscal 2018:

	Restricted shares		Restricted Stock Units ⁽¹⁾			Deferred shares ⁽²⁾			Fully-vested shares ⁽³⁾			Total number of shares			Weighted-average grant-date fair value ⁽⁴⁾
Shares
Outstanding non-vested shares at beginning of year		36,666		1,048,552			115,457			—			1,200,675		$	3.43
Shares granted		30,000		305,161			21,494			26,080			382,735		$	1.97
Shares vested/issued		—		(171,798	)		(2,613	)		(26,080	)		(200,491	)	$	4.60
Shares canceled		—		—			—			—			—		$	-
Outstanding non-vested shares at end of quarter		66,666		1,181,915			134,338			—			1,382,919		$	2.85

(1)

Restricted stock units (“RSUs”) were primarily granted in connection with the partial achievement of performance targets under the 2016-2017 LTIP, see Note 4, Long-Term Incentive Plans. As a result of net share settlement, of the 171,798 time-based RSUs which vested during the first quarter of fiscal 2018, only 165,108 shares of common stock were issued.

(2)

The 21,494 shares of deferred stock, with a fair value of $51,084, represent compensation to certain directors in lieu of cash, in accordance with their irrevocable elections. The shares of deferred stock will vest three years from the date of grant or at separation of service, based on the irrevocable election of each director.

(3)

During the first three months of fiscal 2018, the Company granted 26,080 shares of stock, with a fair value of approximately $63,896, to certain directors as compensation in lieu of cash, in accordance with their irrevocable elections. Directors are required to elect 50% of their quarterly retainer in equity. Any shares in excess of the minimum required election are issued from the Company’s Third Amendment to the Third Amended and Restated Non-Employee Director Compensation Plan (“Non-Employee Director Compensation Plan”).

(4)

The fair value of a restricted share, deferred share and fully-vested share is equal to the Company’s closing stock price on the day immediately preceding the date of grant.

Stock Option Activity

	Number of shares			Weighted-average exercise price per option		Weighted-average remaining contractual term	Aggregate intrinsic value
Stock Options
Outstanding options at beginning of year		1,195,910		$	4.80		$	21,750
Options granted		138,888		$	2.50
Options expired and canceled		(93,244	)	$	5.08
Options exercised		—			—
Outstanding options at end of quarter		1,241,554		$	4.52	5.1 years	$	-
Options exercisable at end of quarter		1,082,666		$	4.83	4.5 years