STOCK-BASED COMPENSATION

6 Months Ended

Jul. 31, 2015

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

NOTE 12 — STOCK-BASED COMPENSATION

At the Company’s annual meeting held on June 24, 2015, the stockholders approved an amendment to the Company’s 2011 Stock Plan (the “Stock Plan”) in order to increase the total number of shares of common stock reserved for issuance thereunder by 750,000 shares. As a result, at July 31, 2015, there were 1,794,000 shares of the Company’s common stock reserved for issuance under the Company’s stock option plans, including approximately 848,000 shares of the Company’s common stock available for future awards under the Stock Plan. Summaries of activity under the Company’s stock option plans for the six months ended July 31, 2015 and 2014 are presented below:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Term (years)	Weighted Average Fair Value
Outstanding, February 1, 2015	876,350		$	22.34	7.08	$	6.01
Granted	135,000		$	33.62
Exercised	(59,450	)	$	16.82
Forfeited	(6,000	)	$	17.33
Outstanding, July 31, 2015	945,900		$	24.33	7.20	$	6.53
Exercisable, July 31, 2015	685,900		$	20.85	6.60	$	5.71

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Term (years)	Weighted Average Fair Value
Outstanding, February 1, 2014	916,150		$	17.36	6.04	$	5.58
Granted	180,500		$	27.09
Exercised	(153,800	)	$	14.84
Outstanding, July 31, 2014	942,850		$	19.63	6.65	$	5.72
Exercisable, July 31, 2014	540,350		$	15.67	5.92	$	5.91

Summaries of the changes in the number of non-vested options to purchase shares of common stock for the six months ended July 31, 2015 and 2014 are presented below:

	Shares		Weighted Average Fair Value
Nonvested, February 1, 2015	305,500		$	7.14
Granted	135,000		$	8.99
Vested	(180,500	)	$	6.28
Nonvested, July 31, 2015	260,000		$	8.70

	Shares		Weighted Average Fair Value
Nonvested, February 1, 2014	303,000		$	4.40
Granted	180,500		$	6.28
Vested	(81,000	)	$	3.30
Nonvested, July 31, 2014	402,500		$	5.46

Compensation expense amounts related to stock options were $536,000 and $625,000 for the three months ended July 31, 2015 and 2014, respectively, and were $1,057,000 and $968,000 for the six months ended July 31, 2015 and 2014, respectively. At July 31, 2015, there was $1,211,000 in unrecognized compensation cost related to outstanding stock options. The Company expects to recognize the compensation expense for these awards within the next eleven months. The total intrinsic values of the stock options exercised during the six months ended July 31, 2015 and 2014 were approximately $1,125,000 and $2,452,000, respectively. At July 31, 2015, the aggregate market values of the shares of common stock subject to outstanding and exercisable stock options exceeded the aggregate exercise prices of such options by approximately $13,763,000 and $12,367,000, respectively.

The fair value of each stock option granted in the six-month periods ended July 31, 2015 and 2014 was estimated on the corresponding date of award using the Black-Scholes option-pricing model based on the following weighted average assumptions.

	Six Months Ended July 31,
	2015		2014
Dividend yield	2.09	%	2.77	%
Expected volatility	34.80	%	33.83	%
Risk-free interest rate	1.43	%	1.26	%
Expected life in years	5.22		4.81