XML 33 R19.htm IDEA: XBRL DOCUMENT v3.22.1
Stock Option Plan and Stock Based Compensation
 12 Months Ended
Feb. 28, 2022
Share-based Payment Arrangement [Abstract]  
Stock Option Plan and Stock Based Compensation

(11) Stock Option Plan and Stock Based Compensation

The Company grants stock options and restricted stock to key executives and managerial employees and non-employee directors. Prior to June 30, 2021, the Company had one stock incentive plan, the 2004 Long-Term Incentive Plan of Ennis, Inc., as amended and restate as of May 18, 2008 and was further amended on June 30, 2011 (the "Old Plan"). The Company had 177,436 shares of unissued common stock reserved under the Old Plan for issuance as of May 31, 2021. The Old Plan expired June 30, 2021 and all remaining unused shares expired. Subject to the affirmative vote of the shareholders, the Board adopted the 2021 Long-Term Incentive Plan of Ennis, Inc. (the "New Plan) on April 16, 2021 authorizing 1,033,648 shares of common stock for awards. The New Plan was approved by the shareholders at the Annual Meeting on July 15, 2021 by a majority vote. The new Plan expires June 30, 2031 and all unissued stock will expire on that date. At fiscal year ended February 28, 2022, the Company has 1,015,469 shares of unissued common stock reserved under the Plan for issuance and uses treasury stock to satisfy option exercises and restricted stock awards.

The Company recognizes compensation expense for stock options and restricted stock grants on a straight-line basis over the requisite service period. For the years ended 2022, 2021 and 2020, the Company included in selling, general and administrative expenses, compensation expense related to share based compensation of $1.2 million, $1.4 million and $1.4 million, respectively.

Stock Options

The following occurred with respect to the Company’s stock options for each of the three years ended February 28, 2022:

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

Weighted

 

 

Average

 

 

Aggregate

 

 

 

Number

 

 

Average

 

 

Remaining

 

 

Intrinsic

 

 

 

of Shares

 

 

Exercise

 

 

Contractual

 

 

Value(a)

 

 

 

(exact quantity)

 

 

Price

 

 

Life (in years)

 

 

(in thousands)

 

Outstanding at March 1, 2019

 

 

61,590

 

 

$

15.88

 

 

 

1.8

 

 

$

327

 

Granted

 

 

—

 

 

 

—

 

 

 

 

 

 

 

Terminated

 

 

—

 

 

 

—

 

 

 

 

 

 

 

Exercised

 

 

(61,590

)

 

 

15.88

 

 

 

 

 

 

 

Outstanding at February 29, 2020

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

(a)
Intrinsic value is measured as the excess fair market value of the Company’s common stock as reported on the NYSE over the applicable exercise price.

No stock options were granted during fiscal years 2022, 2021 or 2020.

 

 

A summary of the stock options exercised and tax benefits realized from stock based compensation is presented below for the three fiscal years ended (in thousands):

 

 

 

Fiscal years ended

 

 

 

2022

 

 

2021

 

 

2020

 

Total grant-date fair value

 

$

—

 

 

$

—

 

 

$

201

 

Intrinsic value

 

 

—

 

 

 

—

 

 

 

267

 

 

The Company had no unvested stock options outstanding at any time during the fiscal year ended February 28, 2022.

 

Restricted Stock

The following occurred with respect to the Company’s restricted stock awards for each of the three fiscal years ended February 28, 2022:

 

 

 

 

 

Weighted

 

 

 

 

 

Average

 

 

Number of

 

 

Grant Date

 

 

Shares

 

 

Fair Value

 

Outstanding at March 1, 2019

 

155,105

 

 

$

19.03

 

Granted

 

66,669

 

 

 

20.41

 

Terminated

 

(3,920

)

 

 

17.02

 

Vested

 

(73,928

)

 

 

18.90

 

Outstanding at February 29, 2020

 

143,926

 

 

$

19.79

 

Granted

 

59,315

 

 

 

17.09

 

Terminated

 

(10,098

)

 

 

19.00

 

Vested

 

(73,414

)

 

 

19.16

 

Outstanding at March 1, 2021

 

119,729

 

 

$

18.90

 

Granted

 

51,920

 

 

 

20.31

 

Terminated

 

—

 

 

 

—

 

Vested

 

(104,485

)

 

 

19.70

 

Outstanding at February 28, 2022

 

67,164

 

 

$

18.73

 

 

As of February 28, 2022, the total remaining unrecognized compensation cost related to unvested restricted stock was approximately $0.7 million. The weighted average remaining requisite service period of the unvested restricted stock awards was 1.3 years. As of February 28, 2022, the Company’s outstanding restricted stock had an underlying fair value of $1.3 million at date of grant.

 

Restricted Stock Units

The following occurred with respect to the Company’s restricted stock units for each of the fiscal year ended February 28, 2022:

 

 

Time-based

 

 

Performance-based

 

 

 

 

 

Weighted

 

 

 

 

 

Weighted

 

 

 

 

 

Average

 

 

 

 

 

Average

 

 

Number of

 

 

Grant Date

 

 

Number of

 

 

Grant Date

 

 

Shares

 

 

Fair Value

 

 

Shares

 

 

Fair Value

 

Outstanding at March 1, 2021

 

—

 

 

$

—

 

 

 

—

 

 

$

—

 

Granted

 

44,494

 

 

 

20.38

 

 

 

177,977

 

 

 

23.17

 

Terminated

 

(9,423

)

 

 

20.38

 

 

 

(37,690

)

 

 

23.17

 

Vested

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Outstanding at November 30, 2021

 

35,071

 

 

$

20.38

 

 

 

140,287

 

 

$

23.17

 

 

As of February 28, 2022, the total remaining unrecognized compensation cost of time-based RSUs was approximately $0.5 million over a weighted average remaining requisite service period of 2.1 years. The total remaining unrecognized compensation of performance-based RSUs was approximately $2.3 million over a weighted average remaining requisite service period of 2.1 years. As of February 28, 2022, the Company’s outstanding RSUs had an underlying fair value of $3.3 million at date of grant.