Stock-Based Compensation

12 Months Ended

Sep. 30, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation

Stock-Based Plans –The 2007 Employee Stock Incentive Plan (the “2007 Plan), under which 500,000 shares could be granted, was adopted by the Board of Directors in April 2007, and approved by the shareholders in May 2007. The 1998 Employee Stock Option Plan (the “1998 Plan”), under which 50,000 shares could be granted, was adopted by the Board of Directors in January 1998, and approved by shareholders in March 1998. The number of shares available for options under the 1998 Plan has since been increased to 500,000 shares through authorization by the Board of Directors and approval of shareholders. The 1998 Plan expired in January 2008. The Non-Employee Directors Stock Option Plan was approved by the shareholders in 1996 for issuance of up to 100,000 shares of Common Stock to directors. In July 2005, the Board of Directors authorized, and shareholders approved, an increase in the number of shares available for options under the Non-Employee Directors Stock Option Plan to 200,000 shares. In the second quarter of fiscal 2009, the Company’s shareholders approved an amendment to our 2007 Employee Stock Incentive Plan and our Non-Employee Directors Stock Option Plan to authorize an additional 900,000 and 150,000 shares, respectively.

Stock options issued under the terms of the plans have, or will have, an exercise price equal to or greater than the fair market value of the Common Stock at the date of the option grant and expire no later than 10 years from the date of grant, with the most recent grant expiring in 2022. Options issued by the Company vest over 1 to 4 years. The Company may also grant restricted stock awards under the 2007 Plan.

As of September 30, 2012 and 2011, the unamortized expense related to restricted shares was $0.8 million and $0.8 million and it is expected to be recognized over two and three years, respectively.

Restricted stock transactions and outstanding are summarized as follows:

	Years Ended September 30,
	2012				2011				2010
	Awards		Weighted Average Grant Date Fair Value		Awards		Weighted Average Grant Date Fair Value		Awards		Weighted Average Grant Date Fair Value
Beginning Outstanding	120,970		$	9.42	128,751		$	6.34	122,875		$	5.85
Awarded	60,600		7.98		35,517		17.28		40,751		8.00
Released	(51,595	)	8.72		(43,298	)	6.78		(33,625	)	6.46
Forfeited	(2,000	)	7.22		—		—		(1,250	)	8.20
Ending Outstanding	127,975		$	9.06	120,970		$	9.42	128,751		$	6.34

Stock-based compensation plans are summarized in the table below:

Name of Plan	Shares Authorized	Shares Available	Options Outstanding	Plan Expiration
2007 Employee Stock Incentive Plan	1,400,000	352,878	688,668	Apr. 2017
1998 Employee Stock Option Plan	500,000	—	79,772	Jan. 2008
Non-Employee Directors Stock Option Plan	350,000	90,600	122,853	Jul. 2015
		443,478	891,293

Stock options were valued using the Black-Scholes option pricing model. See Note 1 for further discussion. Stock option transactions and the options outstanding are summarized as follows:

	Years Ended September 30,
	2012					2011					2010
	Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price
Outstanding at beginning of period	611,384			$	10.02	636,283			$	7.59	691,403			$	7.03
Granted	285,400			7.98		155,233			16.89		165,499			8.05
Exercised	(600		)	5.33		(178,882		)	7.35		(214,094		)	6.19
Forfeited/canceled	(4,891		)	9.50		(1,250		)	6.94		(6,525		)	5.70
Outstanding at end of period	891,293			9.37		611,384			$	10.02	636,283			$	7.59
Exercisable at end of period	400,638			$	9.25	232,018			$	8.31	259,595			$	7.97
Weighted average grant-date fair value of options granted during the period	$	4.95				$	10.57				$	4.98

The following tables summarize information for stock options outstanding and exercisable as of September 30, 2012:

	Options Outstanding
Range of Exercise Prices	Number Outstanding	Remaining Contractual Life	Average Exercise Price		Aggregate Intrinsic Value
		(in years)			(in thousands)
3.01 - 7.00	273,353	6.2	$	5.06	$	—
7.01 - 10.00	314,400	8.7	7.97		—
10.01 - 15.00	158,387	6.6	12.32		—
15.01 - 23.00	145,153	8.1	17.33		—
	891,293	7.5	$	9.37	$	—
Vested and expected  to vest as of September 30, 2012	879,805	7.4	$	9.38	$	—

	Options Exercisable
Range of Exercise Prices	Number Exercisable	Weighted Average Exercise Price		Aggregate Intrinsic Value
				(in thousands)
3.01 - 7.00	191,162	$	5.09	$	—
7.01 - 10.00	31,000	7.84		—
10.01 - 15.00	130,161	12.68		—
15.01 - 23.00	48,315	17.33		—
	400,638	$	9.25	$	—

The aggregate intrinsic value in the tables above represents the total pretax intrinsic value, based on the Company’s closing stock price of $3.31 per share as of September 30, 2012, which would have been received by the option holders had all option holders exercised their options as of that date. The total intrinsic value of stock options exercised during the fiscal years ended September 30, 2012, 2011 and 2010 was less than $0.1 million, $1.3 million and $1.8 million, respectively.