Stock-Based Compensation

9 Months Ended

Oct. 31, 2014

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

Stock-Based Compensation

NOTE 10 – STOCK-BASED COMPENSATION

At October 31, 2014, there were 1,205,350 shares of the Company’s common stock reserved for issuance under its stock option plans, including approximately 312,000 shares of the Company’s common stock available for awards under the Company’s 2011 Stock Plan.

A summary of activity under the Company’s stock option plans for the nine months ended October 31, 2014 is presented below:

Options	Shares			Weighted Average Exercise Price		Weighted Average Remaining Term (Years)		Weighted Average Fair Value
Outstanding, January 31, 2014		916,150		$	17.36		6.04	$	5.58
Granted		220,500		$	28.84
Exercised		(243,300	)	$	15.96
Outstanding, October 31, 2014		893,350		$	20.57		6.52	$	5.87
Exercisable, October 31, 2014		597,850		$	16.73		5.77	$	5.58
Exercisable, January 31, 2014		613,150		$	15.40		5.09	$	6.15

A summary of the change in the number of non-vested options to purchase shares of common stock for the nine months ended October 31, 2014 is presented below:

	Shares			Weighted Average Fair Value
Nonvested, January 31, 2014		303,000		$	4.40
Granted		220,500		$	6.60
Vested		(228,000	)	$	3.85
Nonvested, October 31, 2014		295,500		$	6.47

Compensation expense amounts related to stock options were $521,000 and $393,000 for the three months ended October 31, 2014 and 2013, respectively, and were $1,489,000 and $1,152,000 for the nine months ended October 31, 2014 and 2013, respectively. At October 31, 2014, there was $856,000 in unrecognized compensation cost related to outstanding stock options. The Company expects to recognize the compensation expense for these awards within the next eleven (11) months.

The total intrinsic values of the stock options exercised during the nine months ended October 31, 2014 and 2013 were approximately $3,897,000 and $1,933,000, respectively. At October 31, 2014, the aggregate market values of the shares of common stock subject to outstanding and exercisable stock options (that were “in-the-money”) exceeded the aggregate exercise prices of such options by approximately $12,794,000 and $10,806,000, respectively.

The fair value of each stock option granted in the nine-month period ended October 31, 2014 was estimated on the corresponding date of award using the Black-Scholes option-pricing model based on the following weighted average assumptions.

	Nine Months Ended October 31, 2014
Dividend yield	2.61%
Expected volatility	33.49%
Risk-free interest rate	1.20%
Expected life in years	4.67