Stock-Based Compensation | 6 Months Ended |
Jan. 31, 2015 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 6. Stock-Based Compensation |
The Company has stock-based incentive plans which are described in more detail in Note 11 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for fiscal year 2014. The Company recognized stock-based compensation costs of approximately $702,000 and $191,000 for the three months and $1.1 million and $1.4 million for the six months ended January 31, 2015 and 2014, respectively. The amount recognized in the first six months of fiscal year 2014 includes $1.1 million for shares granted to Christopher T. Fraser upon becoming President and CEO. The Company also recognized the related tax benefits of $272,000 and $108,000 for the three months and $433,000 and $544,000 for the six months ended January 31, 2015 and 2014, respectively. Stock-based compensation costs are recorded under selling, general and administrative expenses in the condensed consolidated statements of income (loss). |
As of January 31, 2015, the unrecognized compensation costs related to stock-based awards was approximately $5.0 million, which is expected to be recognized over a weighted-average period of 2.2 years. |
Performance Shares |
On August 1, 2014, there were 250,944 non-vested performance shares outstanding which reflected the maximum number of shares under the awards. No performance share awards vested during the six months ended January 31, 2015. As of January 31, 2015, the non-vested performance-based stock awards consisted of Series 1 awards granted to certain executives and employees in fiscal years 2015 and 2014 as summarized below reflecting the target number of shares under the awards. The Series 1 awards granted in fiscal year 2013 are not expected to vest at this time. |
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| | | | Target | | | | | | | | | Expected | | | | | |
| | Series | | Award | | | Grant Date | | | Measurement | | Percentage of | | | Shares Expected | |
Date of Grant | | Award | | Shares | | | Fair Value | | | Period Ending | | Vesting(1) | | | to Vest | |
Fiscal Year 2015 Awards | | | | | | | | | | | | | | | | | | | | |
12/9/14 | | Series 1 | | | 103,499 | | | $ | 17.81 | | | 7/31/17 | | | | | | | | |
| | Forfeitures(2) | | | 0 | | | | | | | | | | | | | | | |
Total | | | | | 103,499 | | | | | | | | | | 154 | % | | | 159,181 | |
Fiscal Year 2014 Awards | | | | | | | | | | | | | | | | | | | | |
2/25/14 | | Series 1 | | | 127,315 | | | $ | 14.88 | | | 7/31/16 | | | | | | | | |
| | Forfeitures(2) | | | (3,686 | ) | | | | | | | | | | | | | | |
Total | | | | | 123,629 | | | | | | | | | | 100 | % | | | 123,629 | |
Fiscal Year 2013 Awards | | | | | | | | | | | | | | | | | | | | |
12/4/12 | | Series 1 | | | 141,059 | | | $ | 18.75 | | | 7/31/15 | | | | | | | | |
| | Forfeitures(2) | | | (85,209 | ) | | | | | | | | | | | | | | |
Total | | | | | 55,850 | | | | | | | | | | 0 | % | | | — | |
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-1 | The percentage vesting for performance share awards is currently estimated at 154.0%, 100.0% and 0.0% of the target award for the fiscal year 2015, 2014 and 2013 awards, respectively. | | | | | | | | | | | | | | | | | | | |
-2 | Forfeitures include Series 1 awards that were granted in fiscal years 2014 and 2013 to certain employees that were forfeited at the termination of their employment. | | | | | | | | | | | | | | | | | | | |
Series 1: For the fiscal year 2015, 2014 and 2013 awards, vesting is subject to performance requirements composed of certain objectives including average annual return on invested capital and annual compound growth rate in the Company’s diluted earnings per share. These objectives are measured quarterly using the Company’s budget, actual results and long-term projections. For each of the Series 1 awards, the expected percentage of vesting is evaluated through January 31, 2015, and reflects the percentage of shares projected to vest for the respective awards at the end of their measurement periods. For the fiscal year 2015 and 2014 awards, shares vested may increase to a maximum of 167.0% and 150.0%, respectively, of the target award on achievement of maximum performance objectives. For the fiscal year 2013 awards, the target award is equal to the maximum award. |
Series 2: None outstanding. |
Series 3: The table does not include certain performance-based awards to be granted to Christopher T. Fraser according to his employment agreement as of September 24, 2013. Awards to Mr. Fraser for fiscal year 2015 included (i) a performance-based Series 3 award for 10,000 shares of common stock (at maximum) having performance requirement related to debt payments during fiscal year 2015, and (ii) a performance-based Series 3 award for 4,000 shares of common stock having certain organizational objectives as a performance requirement, and in each case such awards vest and are measured over a one year period beginning August 1, 2014 and ending July 31, 2015. As of January 31, 2015, the Series 3 awards to Mr. Fraser are expected to vest at 100%. |
The weighted-average per share grant-date fair value of target award shares for performance awards outstanding was $16.53 and $14.88 at January 31, 2015 and August 1, 2014, respectively. |
The weighted-average per share grant-date fair value of the target award shares for performance-based awards granted during the six months ended January 31, 2015 and 2014 was $17.67 and $16.65, respectively. |
Time Based Shares |
A summary of activity for time-based stock awards for the six months ended January 31, 2015 is presented below: |
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| | Shares | | | Weighted-Average Grant-Date | | | | | | | | | | | | | |
Fair Value | | | | | | | | | | | | |
Non-vested on August 1, 2014 | | | 50,100 | | | $ | 19.19 | | | | | | | | | | | | | |
Granted (1) | | | 49,091 | | | | 18.04 | | | | | | | | | | | | | |
Vested(2) | | | (21,592 | ) | | | 19.16 | | | | | | | | | | | | | |
Non-vested on January 31, 2015 | | | 77,599 | | | | 18.47 | | | | | | | | | | | | | |
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-1 | Includes 3,000 shares granted to certain executives and employees which generally vest over one or two year service periods from the grant date or commencement of their employment, and 11,592 shares granted to non-employee directors on January 31, 2015 for service for the six months ended January 31, 2015. Also includes 34,499 shares granted to certain executives which vest over a service period of three years beginning on August 1, 2014. | | | | | | | | | | | | | | | | | | | |
-2 | Includes 5,663 and 11,592 shares granted to non-employee directors for service for the three and six months ended January 31, 2015. The shares vest on the date of grant, and the Company recognizes compensation expense related to the awards over the respective service periods in accordance with GAAP. The vested amount includes 6,000 shares granted to Mr. Fraser and 4,000 shares granted to certain other executives of the Company that vested. | | | | | | | | | | | | | | | | | | | |
The total fair value of shares vested under timed based awards during the six months ended January 31, 2015 and 2014 was approximately $414,000 and $1.4 million, respectively. The amount in the first six months of fiscal year 2014 includes $1.1 million for shares granted to Mr. Fraser upon becoming President and CEO. |
The weighted-average per share grant-date fair value of awards forfeited during the six months ended January 31, 2015 and 2014 was $14.88 and $17.10, respectively. |