Shareholder's Equity

6 Months Ended

Aug. 31, 2011

Shareholder's Equity [Abstract]

Shareholder's Equity

Note 11. — Shareholder’s Equity

Earnings Per Share

          Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during each period. Shares issued during the period are weighted for the portion of the period that they were outstanding. Diluted earnings per share is calculated in a manner consistent with that of basic earnings per share while giving effect to all dilutive potential common shares that were outstanding during the period.

          The following table sets forth the computation of basic and diluted earnings per share for the three and six month periods ended August 31, 2011 and 2010 (in thousands, except per share data):

				Weighted
				Average		Earnings
	Net			Common Shares		Per
	Income			Outstanding		Share
Three months ended August 31, 2011
Basic-continuing operations	$	1,001			7,620	$	0.13
Effect of dilution:
Options		—			316		(0.00	)
Diluted	$	1,001			7,936	$	0.13
Three months ended August 31, 2010
Basic-continuing operations	$	1,241			8,365	$	0.15
Basic-discontinued operations		103			8,365		0.01
Effect of dilution:
Options		—			315		(0.01	)
Diluted	$	1,344			8,680	$	0.15
Six months ended August 31, 2011
Basic-continuing operations	$	2,239			7,614	$	0.29
Effect of dilution:
Options		—			326		(0.01	)
Diluted	$	2,239			7,940	$	0.28
Six months ended August 31, 2010
Basic-continuing operations	$	1,961			8,365	$	0.24
Basic-discontinued operations		(40	)		8,365		(0.01	)
Effect of dilution:
Options		—			325		(0.01	)
Diluted	$	1,921			8,690	$	0.22

Stock-Based Compensation Plans

          For the six-month period ended August 31, 2011 and 2010, the Company recognized general and administrative expenses of $17.5 thousand and $19.1 thousand, respectively, related to share-based compensation. The liability for the share-based compensation recognized is presented in the consolidated balance sheet as part of additional paid in capital. As of August 31, 2011, total unrecognized compensation costs related to stock options granted was $17.3 thousand. The unrecognized stock option compensation cost is expected to be recognized over a period of approximately 1 year.

          The Company estimates the fair value of stock options granted using the Black-Scholes option-pricing model, which requires the Company to estimate the expected term of the stock option grants and expected future stock price volatility over the term. The term represents the expected period of time the Company believes the options will remain outstanding based on historical information. Estimates of expected future stock price volatility are based on the historic volatility of the Company’s common stock, which represents the standard deviation of the differences in the weekly stock closing price, adjusted for dividends and stock splits.

          No options were granted during the six month periods ended August 31, 2011. Three members of the board of directors were each granted 3,000 stock options during the six-month period ended August 31, 2010.

Stock Repurchase Program

          The Company has a stock repurchase program, pursuant to which it was originally authorized to repurchase up to 1,632,500 shares of the Company’s common stock in the open market. On July 8, 2009, the Board of Directors of the Company approved a one time continuation of the stock repurchase program, and authorized the Company to repurchase up to 1,000,000 additional shares of the Company’s common stock, depending on the market price of the shares. There is no minimum number of shares required to be repurchased under the program. Under the Company’s stock repurchase program, an additional 816,418 shares remain authorized to be repurchased by the Company at August 31, 2011. The Credit Agreement executed by the Company on December 23, 2010 includes restrictions on investments that restrict further repurchases of stock under this program. For the six months ended August 31, 2011 and August 31, 2010, no treasury shares were repurchased.