Stock-Based Compensation (Tables)

12 Months Ended

Sep. 30, 2014

Restricted stock transactions and outstanding awards are summarized as follows:



	Years Ended September 30,
	2014				2013				2012
	Awards		Weighted Average Grant Date Fair Value		Awards		Weighted Average Grant Date Fair Value		Awards		Weighted Average Grant Date Fair Value
Beginning Outstanding	69,154		$	10.13	127,975		$	9.06	120,970		$	9.42
Awarded	—		—		—		—		60,600		7.98
Released	(33,951	)	10.13		(58,771	)	7.81		(51,595	)	8.72
Forfeited	—		—		(50	)	7.98		(2,000	)	7.22
Ending Outstanding	35,203		$	10.13	69,154		$	10.13	127,975		$	9.06

Stock-based compensation expense for the fiscal years ended September 30, 2014, 2013 and 2012 reduced the Company’s results of operations as follows:



	Years Ended September 30,
	2014			2013			2012
	(dollars in thousands)
Effect on income before income taxes (1)	$	(795	)	$	(2,472	)	$	(1,763	)
Effect on income taxes	$	326		$	512		$	255
Effect on net income	$	(469	)	$	(1,960	)	$	(1,508	)

(1) Stock-based compensation expense is included in selling, general and administrative expense

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	2,300,000	850,892	856,394	Mar. 2020
1998 Employee Stock Option Plan	500,000	—	52,460	Jan. 2008
Non-Employee Directors Stock Option Plan	500,000	191,600	154,470	Mar. 2020
		1,042,492	1,063,324

Stock option transactions and the options outstanding are summarized as follows:



	Years Ended September 30,
	2014					2013					2012
	Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price
Outstanding at beginning of period	1,059,567			$	6.71	891,293			$	9.37	611,384			$	10.02
Granted	272,906			7.01		312,850			2.95		285,400			7.98
Exercised	(263,643		)	4.31		(8,450		)	3.08		(600		)	5.33
Forfeited/canceled	(5,506		)	9.63		(136,126		)	15.75		(4,891		)	9.50
Outstanding at end of period	1,063,324			$	7.37	1,059,567			$	6.71	891,293			$	9.37

Exercisable at end of period	674,237			$	8.18	874,591			$	7.13	400,638			$	9.25

Weighted average grant-date fair value of options granted during the period	$	4.38				$	1.82				$	4.95

The following tables summarize information for stock options outstanding and exercisable as of September 30, 2014:



	Options Outstanding
Range of Exercise Prices	Number Outstanding	Remaining Contractual Life	Average Exercise Price		Aggregate Intrinsic Value
		(in years)			(in thousands)
2.95-3.00	196,574	8.2	$	2.95	$	1,523
3.01-7.00	160,923	4.1	5.70		805
7.01-8.00	524,292	8.2	7.47		1,693
8.01-15.00	109,000	4.9	10.49		38
15.01-23.00	72,535	6.2	17.55		—
	1,063,324	7.1	$	7.37	$	4,059
Vested and expected to vest as of September 30, 2014	1,058,894	7.1	$	7.37	$	4,040



	Options Exercisable
Range of Exercise Prices	Number Exercisable	Weighted Average Exercise Price		Aggregate Intrinsic Value
				(in thousands)
2.95-3.00	85,611	$	2.95	$	663
3.01-7.00	160,923	5.70		805
7.01-8.00	251,686	7.98		685
8.01-15.00	106,500	10.49		—
15.01 - 23.00	69,517	17.56		—
	674,237	$	8.18	$	2,153