INCOME TAXES:

12 Months Ended

Apr. 30, 2012

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

(12)         INCOME TAXES:

The provision (benefit) for income taxes consists of the following:

		Year Ended April 30,
	2012			2011			2010
				(Thousands)
Current:
Federal	$	(370	)	$	(606	)	$	(2,811	)
State and local		114			4			96
		(256	)		(602	)		(2,715	)
Deferred:
Federal		(505	)		(2,277	)		(3,401	)
State and local		(135	)		(333	)		225
		(640	)		(2,610	)		(3,176	)
Total provision (benefit) for income taxes	$	(896	)	$	(3,212	)	$	(5,891	)

The components of the net deferred income taxes are as follows:

	April 30,
	2012		2011
	(Thousands)
Deferred income tax assets:
State tax loss carryforwards	$	3,942		$	3,971
Accrued pension costs		4,927			4,547
Federal NOL carryforward		4,476			2,399
Vacation accrual		700			740
Intangibles and deductible goodwill		7,377			8,159
Real estate basis differences		1,045			790
Total deferred income tax assets	$	22,467		$	20,606

Deferred income tax liabilities:
Reserve for periodical returns	$	(2,009	)	$	(1,812	)
Depreciable assets		(4,358	)		(4,867	)
Deferred gains on investment assets		(4,679	)		(5,249	)
Capitalized costs for financial reporting purposes, expensed for tax		(536	)		(810	)
Other		(315	)		(88	)
Total deferred income tax liabilities		(11,897	)		(12,826	)
Valuation allowance for realization of state tax loss carryforwards		(2,544	)		(2,882	)
Net deferred income tax asset	$	8,026		$	4,898

The following table reconciles taxes computed at the U.S. federal statutory income tax rate from continuing operations to the Company's actual tax provision:

	Year Ended April 30,
	2012			2011			2010
				(Thousands)
Computed tax provision (benefit) at statutory rate	$	(713	)	$	(3,770	)	$	(5,379	)
Increase (reduction) in tax resulting from: State income taxes, net of federal      income tax effect		(14	)		(228	)		(1,058	)
Expiration of state NOLs		342			324			517
Change in valuation allowance		(338	)		(281	)		749
Adjustment for unrecognized tax benefits		(296	)		(619	)		(932	)
Non-deductible goodwill impairement (see Note 14)		-			1,363			-
Meals and Entertainment		47			54			56
Other		76			(55	)		156
Actual tax provision (benefit)	$	(896	)	$	(3,212	)	$	(5,891	)

A valuation allowance is provided when it is considered more likely than not that certain deferred tax assets will not be realized. The valuation allowance relates entirely to net operating loss carryforwards in states where the Company has no current operations. The remaining net operating loss carryforwards expire beginning in the fiscal years ending April 30, 2013 through April 30, 2033.  The state net operating loss carryforwards of $98,751,000 expire in future fiscal years as follows: 2013 - $5,548,000; 2014 - $6,000; 2015 - $1,045,000; 2016 - $1,047,000; 2017 - $2,468,000; and thereafter - $88,637,000.

The Company has a U.S. federal net operating loss carryforward of approximately $13,000,000 of which $5,000,000 resulted from the purchase of Palm Coast which will begin to expire in the fiscal year ending April 30, 2024.  In addition, $14,335,000 of goodwill associated with the Palm Coast acquisition remains amortizable as of April 30, 2012.

The Company is subject to U.S. federal income taxes, and also to various state and local income taxes.  Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply.  The Company is undergoing an examination of its fiscal 2010 and 2005 U.S. federal tax returns by the Internal Revenue Service.  The Company is not currently under examination by any other tax authorities with respect to its income tax returns.  Other than the U.S. federal tax return, in nearly all jurisdictions, the tax years through the fiscal year ended April 30, 2008 are no longer subject to examination due to the expiration of the statute of limitations.

ASC 740-10 clarifies the accounting for uncertain tax positions, prescribing a minimum recognition threshold a tax position is required to meet before being recognized, and providing guidance on the derecognition, measurement, classification and disclosure relating to income taxes.  The following table summarizes the beginning and ending gross amount of unrecognized tax benefits (in thousands):

	2012			2011
Gross unrecognized tax benefits at beginning of year	$	2,384		$	3,253
Gross increases:
Additions based on tax positions related to current year		-			60
Additions based on tax positions of prior years		-			265
Gross decreases:
Reductions based on tax positions of prior years		(302	)		(411	)
Reductions based on the lapse of the applicable       statute of limitations		(341	)		(783	)
Gross unrecognized tax benefits at end of year	$	1,741		$	2,384

The total tax effect of gross unrecognized tax benefits at April 30, 2012 and 2011 was $66,000 and $333,000 which, if recognized, would have an impact on the effective tax rate.  The Company believes it is reasonably possible that the liability for unrecognized tax benefits will decrease by up to approximately $10,000 in the next twelve months due to the expiration of the statute of limitations.  The Company has elected to include interest and penalties in its income tax expense.  The total amount of interest payable recognized in the accompanying consolidated balance sheets was $171,000 at April 30, 2012 and $238,000 at April 30, 2011.  No amount has been accrued for penalties.  In 2012 and 2011, the Company recognized net credits of $55,000 and $155,000 to its income tax provision related to interest, which resulted from the reduction of unrecognized tax benefits due to the expiration of the statute of limitations, offset in part by interest accrued for existing uncertain tax positions.