Note 9 - Equity Compensation

12 Months Ended

Jun. 30, 2013

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

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

NOTE 9 — EQUITY COMPENSATION

Stock Options 

The Company has an equity compensation plan that was approved by shareholders in November 2012 and that covers all of its full-time employees, outside directors and certain advisors.  This 2012 Stock Incentive Plan replaces all previous equity compensation plans. The options granted or stock awards made pursuant to this plan are granted at fair market value at date of grant or award.  Options granted to non-employee directors become exercisable 25% each ninety days (cumulative) from date of grant and options granted to employees generally become exercisable 25% per year (cumulative) beginning one year after the date of grant.  If a stock option holder’s employment with the Company terminates by reason of death, disability or retirement, as defined in the Plan, the Plan generally provides for acceleration of vesting.  The number of shares reserved for issuance is 1,102,236 shares (includes 312,848 shares transferred in from the previous plan), all of which were available for future grant or award as of June 30, 2013.  This plan allows for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted and unrestricted stock awards, performance stock awards, and other stock awards.  As of June 30, 2013, a total of 2,341,150 options for common shares were outstanding from this plan as well as two previous stock option plans (each of which had also been approved by shareholders), and of these, a total of 1,643,050 options for common shares were vested and exercisable.  As of June 30, 2013, the approximate unvested stock option expense that will be recorded as expense in future periods is $462,435.  The weighted average time over which this expense will be recorded is approximately 30 months.

The fair value of each option on the date of grant was estimated using the Black-Scholes option pricing model. The below listed weighted average assumptions were used for grants in the periods indicated.

	2013			2012			2011
Dividend yield		3.6	%		3.1	%		3.7	%
Expected volatility		51	%		55	%		53	%
Risk-free interest rate		0.6	%		1.0	%		1.4	%
Expected life (years)		4.7			4.7			4.5

At June 30, 2013, the 414,750 options granted during fiscal 2013 to both employees and non-employee directors had exercise prices ranging from $6.28 to $6.58, fair values ranging from $2.00 to $2.11 per option, and remaining contractual lives of nine years two months to nine years five months.

At June 30, 2012, the 36,000 options granted during fiscal 2012 to both employees and non-employee directors had exercise prices ranging from $6.68 to $7.22 per share, fair values ranging from $2.45 to $2.60 per share, and remaining contractual lives of between nine years five months and nine years eight months.

At June 30, 2011, the 288,200 options granted in fiscal 2011 to both employees and non-employee directors had exercise prices ranging from $4.84 to $8.92, fair values ranging from $1.60 to $3.37, and remaining contractual lives of between nine years and nine years five months.

The Company calculates stock option expense using the Black-Scholes model.  Stock option expense is recorded on a straight line basis, or sooner if the grantee is retirement eligible as defined in the 2012 Stock Incentive Plan, with an estimated 2.3% forfeiture rate effective January 1, 2013, with the previous estimated forfeiture rates having been a 3.4% forfeiture rate effective October 1, 2012, a 4.1% forfeiture rate effective April 1, 2012, a 3.6% forfeiture rate effective April 1, 2011, a 3.0% effective July 1, 2010 and a 6.55% prior to July 1, 2010.  The expected volatility of the Company’s stock was calculated based upon the historic monthly fluctuation in stock price for a period approximating the expected life of option grants.  The risk-free interest rate is the rate of a five year Treasury security at constant, fixed maturity on the approximate date of the stock option grant.  The expected life of outstanding options is determined to be less than the contractual term for a period equal to the aggregate group of option holders’ estimated weighted average time within which options will be exercised.  It is the Company’s policy that when stock options are exercised, new common shares shall be issued.  The Company recorded $842,401, $410,550, and $851,755 of expense related to stock options in fiscal years 2013, 2012 and 2011, respectively.  As of June 30, 2013, the Company had 2,331,830 stock options that were vested and that were expected to vest, with a weighted average exercise price of $9.97 per share, an aggregate intrinsic value of $1,530,297 and weighted average remaining contractual terms of 5.6 years.

Information related to all stock options for the years ended June 30, 2013, 2012 and 2011 is shown in the following table:

	Twelve Months Ended June 30, 2013
	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
Outstanding at 6/30/12		2,006,250		$	10.64		5.8	$	654,747
Granted		414,750		$	6.58
Forfeitures		(44,350	)	$	13.61
Exercised		(35,500	)	$	4.93
Outstanding at 6/30/13		2,341,150		$	9.95		5.6	$	1,544,896
Exercisable at 6/30/13		1,643,050		$	11.34		4.6	$	524,522

	Twelve Months Ended June 30, 2012
	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
Outstanding at 6/30/11		2,123,939		$	10.80		6.3	$	955,401
Granted		36,000		$	7.13
Forfeitures		(150,939	)	$	12.12
Exercised		(2,750	)	$	5.18
Outstanding at 6/30/12		2,006,250		$	10.64		5.8	$	654,747
Exercisable at 6/30/12		1,404,400		$	12.11		5.1	$	234,971

	Twelve Months Ended June 30, 2011
	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
Outstanding at 6/30/10		2,123,086		$	11.64		6.6	$	15,270
Granted		288,200		$	5.29
Forfeitures		(280,347	)	$	11.53
Exercised		(7,000	)		8.40
Outstanding at 6/30/11		2,123,939		$	10.80		6.3	$	955,401
Exercisable at 6/30/11		1,192,814		$	12.85		5.0	$	112,594

The aggregate intrinsic values of options exercised during the years ended June 30, 2013, 2012 and 2011 were $95,223, $3,365 and $6,526, respectively. The Company received $175,023, $14,235, and $58,800 of cash from employees who exercised options in the fiscal years 2013, 2012 and 2011, respectively.

Stock Compensation Awards 

The Company awarded a total of 8,092 common shares in fiscal 2013, a total of 7,076 common shares in fiscal 2012, and a total of 6,256 common shares in fiscal 2011 as stock compensation awards. These common shares were valued at their approximate $56,700, $47,700, and $40,900 fair market values on their dates of issuance, respectively, pursuant to the compensation programs for non-employee directors who receive a portion of their compensation as an award of Company stock and for employees who receive a nominal stock award following their twentieth employment anniversary. Stock compensation awards are made in the form of newly issued common shares of the Company.

Deferred Compensation Plan

The Company has a non-qualified deferred compensation plan providing for both Company contributions and participant deferrals of compensation. This plan is fully funded in a Rabbi Trust. All plan investments are in common shares of the Company. As of June 30, 2013 there were 27 participants, all with fully vested account balances. A total of 288,505 common shares with a cost of $2,791,000, and 266,615 common shares with a cost of $2,641,000 were held in the plan as of June 30, 2013 and June 30, 2012, respectively, and, accordingly, have been recorded as treasury shares. The change in the number of shares held by this plan is the net result of share purchases and sales on the open stock market for compensation deferred into the plan and for distributions to terminated employees. The Company does not issue new common shares for purposes of the non-qualified deferred compensation plan. The Company accounts for assets held in the non-qualified deferred compensation plan in accordance with Accounting Standards Codification Topic 710, Compensation — General. The Company used approximately $175,100 and $154,300 to purchase 25,549 and 22,855 common shares of the Company in the open stock market during fiscal years 2013 and 2012, respectively, for either employee salary deferrals or Company contributions into the non-qualified deferred compensation plan. For fiscal year 2014, the Company estimates the Rabbi Trust for the Nonqualified Deferred Compensation Plan will make net repurchases in the range of 22,000 to 25,000 common shares of the Company. The Company does not currently repurchase its own common shares for any other purpose.