Share-Based Compensation Plans

12 Months Ended

Nov. 01, 2020

Share-based Payment Arrangement [Abstract]

For fiscal years 2020 and 2019, the Company recognized share-based compensation expense of $1.4 million and $1.4 million, respectively. These expenses are included in Selling, administrative and other operating costs in the Company’s Consolidated Statements of Operations.

2019 Equity Incentive Plan

On May 1, 2019, the stockholders of the Company approved the Company’s 2019 Equity Incentive Plan (the “2019 Plan”). The 2019 Plan permits the granting of (1) stock options, including incentive stock options, (2) stock appreciation rights, (3) restricted stock, (4) restricted stock units, (5) performance awards and (6) other awards valued in whole or in part by reference to or otherwise based on our common stock (as defined in the 2019 Plan, “other share-based awards”). Subject to adjustment as provided in the 2019 Plan, up to an aggregate of 2,500,000 shares of the Company’s common stock will be available for awards under the 2019 Plan, plus any shares granted under the Company’s 2015 Equity Incentive Plan that become available for awards under such plan.

Fiscal 2020 Awards

During fiscal 2020, the Company granted restricted stock units (“RSUs”) to executive management and, due to limited share availability under its long-term incentive plan, issued deferred cash awards to certain employees including executive management. The RSUs and cash awards vest in equal annual tranches over three years, provided the employees remain employed with the Company on the applicable vesting date. The grant date fair value for the RSUs is measured using the closing stock price on the grant date and the total grant date fair value was $0.7 million. The deferred cash awards totaled $2.2 million. In addition, due to limited share availability, cash payments in the aggregate amount of $0.4 million were made in lieu of equity awards to non-executive directors of the Company.

Fiscal 2019 Awards

During fiscal 2019, the Company granted performance stock units (“PSUs”) to executive management, RSUs to certain employees including executive management and its annual equity grant of RSUs to the Board of Directors.

The PSUs are eligible to vest in three equal tranches at the end of each performance period. Vesting of the PSUs is dependent on the achievement of the adjusted Earnings Before Interest, Taxes, Depreciation and Amortization margin percentage goals based on adjusted revenues at the end of each fiscal year of the one-year, two-year and three-year performance periods and provided that the employees remain employed with the Company on the applicable vesting date. The payout percentages can range from 0% to 150%. The RSUs for the employees vest in equal annual tranches over three years, provided the employees remain employed with the Company on the applicable vesting date. The RSUs for the Board of Directors vest one year from the grant date provided that the director provides continued service through the vesting date. The grant date fair value for the PSUs and RSUs is measured using the closing stock price on the grant date. The PSUs and RSUs had a total grant date fair value of approximately $1.2 million and $2.1 million, respectively.

Summary of Equity and Liability Awards

The following tables summarize the activities related to the Company’s share-based equity and liability awards for the fiscal year ended November 1, 2020 and November 3, 2019:


	Number of	Weighted Average
Performance Share Units	Shares	Grant Date Fair Value
Outstanding at October 28, 2018	276,396	$	3.38
Granted (a) (b)	377,833	$	4.05
Forfeited	(179,981)	$	3.61
Vested	(97,262)	$	3.82
Outstanding at November 3, 2019	376,986	$	3.90
Forfeited	(40,311)	$	3.38
Vested	(127,013)	$	4.04
Outstanding at November 1, 2020	209,662	$	3.91
(a) Includes the incremental issuance of shares related to the fiscal 2018 PSU grant.
(b) Includes the incremental shares for the first tranche of the fiscal 2019 PSU grant based on attainment of the fiscal 2019 EBITDA margin percentage goal that were issued upon vesting.


	Number of	Weighted Average
Restricted Stock Units	Shares	Grant Date Fair Value
Outstanding at October 28, 2018	582,831	$	3.53
Granted	516,968	$	4.11
Forfeited	(236,035)	$	3.73
Vested	(196,682)	$	3.75
Outstanding at November 3, 2019	667,082	$	3.86
Granted	625,909	$	1.09
Forfeited	(4,387)	$	3.79
Vested	(312,424)	$	3.90
Outstanding at November 1, 2020	976,180	$	2.08


Stock Options	Number of shares	Weighted average exercise price		Weighted average contractual life (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding at October 28, 2018	1,600,040	$	5.25	7.27	$	—
Exercised	(200,000)	$	4.35	—	$	—
Forfeited	(335,972)	$	5.42	—	$	—
Expired	(460,584)	$	5.36	—	$	—
Outstanding at November 3, 2019	603,484	$	6.28	6.81	$	—
Forfeited	(60,615)	$	8.22	—	$	—
Expired	(210,925)	$	6.59	—	$	—
Outstanding at November 1, 2020	331,944	$	5.73	6.22
Unvested at November 1, 2020	44,394	$	4.10	7.09
Exercisable at November 1, 2020	287,550	$	5.98	6.09

For the year ended November 1, 2020, there was no exercise of stock options. As of November 1, 2020 total unrecognized compensation expense of $1.3 million related to PSUs, stock options and RSUs will be recognized over the remaining weighted average vesting period of 2.0 years, of which $0.9 million, $0.3 million and $0.1 million is expected to be recognized in fiscal 2021, 2022 and 2023, respectively.