Stock-Based Compensation

3 Months Ended

Apr. 30, 2015

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

Stock-Based Compensation

NOTE 10 – STOCK-BASED COMPENSATION

At April 30, 2015, there were 1,065,600 shares of the Company’s common stock reserved for issuance under the two plans, including approximately 133,000 shares of the Company’s common stock available for awards under the Stock Plan. Summaries of activity under the Company’s stock option plans for the three months ended April 30, 2015 and 2014 are presented below:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Term (years)		Weighted Average Fair Value
Outstanding, February 1, 2015		876,350		$	22.34		7.08	$	6.01
Granted		100,000		$	32.68
Exercised		(37,750	)	$	11.48
Forfeited		(6,000	)	$	17.33
Outstanding, April 30, 2015		932,600		$	23.92		7.32	$	6.38
Exercisable, April 30, 2015		707,600		$	21.01		6.82	$	5.72

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Term (years)		Weighted Average Fair Value
Outstanding, February 1, 2014		916,150		$	17.36		6.04	$	5.58
Granted		180,500		$	27.09
Exercised		(83,500	)	$	13.50
Forfeited		—			—
Outstanding, April 30, 2014		1,013,150		$	19.41		6.76	$	5.65
Exercisable, April 30, 2014		600,650		$	15.75		5.98	$	5.81

A summary of the change in the number of non-vested options to purchase shares of common stock for the three months ended April 30, 2015 and 2014 is presented below:

	Shares			Weighted Average Fair Value
Nonvested, February 1, 2015		305,500		$	7.14
Granted		100,000		$	8.55
Vested		(180,500	)	$	6.28
Nonvested, April 30, 2015		225,000		$	8.45

	Shares			Weighted Average Fair Value
Nonvested, February 1, 2014		303,000		$	4.40
Granted		180,500		$	6.28
Vested		(71,000	)	$	3.27
Nonvested, April 30, 2014		412,500		$	5.42

Compensation expense amounts related to stock options were $520,000 and $343,000 for the three months ended April 30, 2015 and 2014, respectively. At April 30, 2015, there was $1,388,000 in unrecognized compensation cost related to outstanding stock options. The Company expects to recognize the compensation expense for these awards within the next 12 months. The total intrinsic values of the stock options exercised during the three months ended April 30, 2015 and 2014 were $830,000 and $1,156,000, respectively. At April 30, 2015, the aggregate market values of the shares of common stock subject to outstanding and exercisable stock options exceeded the aggregate exercise prices of such options by approximately $7,823,000 and $7,995,000, respectively.

The fair value of each stock option granted in the three-month periods ended April 30, 2015 and 2014 was estimated on the corresponding date of award using the Black-Scholes option-pricing model based on the following weighted average assumptions.

	Three Months Ended April 30, 2015			Three Months Ended April 30, 2014
Dividend yield		2.14	%		2.77	%
Expected volatility		34.63	%		33.83	%
Risk-free interest rate		1.40	%		1.26	%
Expected life in years		5.13			4.81