Stock Option Plan and Stock Based Compensation

12 Months Ended

Feb. 28, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [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. At fiscal year ended 2018, the Company has one stock option plan: the 2004 Long-Term Incentive Plan of Ennis, Inc., as amended and restated as of June 30, 2011, formerly the 1998 Option and Restricted Stock Plan amended and restated as of May 14, 2008 (the “Plan”). The Company has 534,478 shares of unissued common stock reserved under the Plan for issuance. The exercise price of each stock option granted under the Plan equals a referenced price of the Company’s common stock as reported on the New York Stock Exchange (“NYSE”) on the date of grant, and an option’s maximum term is ten years. Stock options and restricted stock may be granted at different times during the year and vest ratably over various periods, from grant date up to five years. The Company 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 2019, 2018 and 2017, the Company included in selling, general and administrative expenses, compensation expense related to share based compensation of $1.4 million, $1.3 million and $1.4 million, respectively.

Stock Options

The Company had the following stock option activity for each of the three years ended February 28, 2019:

						Weighted
				Weighted		Average		Aggregate
	Number			Average		Remaining		Intrinsic
	of Shares			Exercise		Contractual		Value(a)
	(exact quantity)			Price		Life(inyears)		(inthousands)
Outstanding at March 1, 2016		370,949		$	15.38		5.9	$	1,616
Granted		—			—
Terminated		(5,000	)		8.94
Exercised		(193,453	)		15.04
Outstanding at February 28, 2017		172,496		$	15.95		4.2	$	223
Granted		—			—
Terminated		—			—
Exercised		—			—
Outstanding at February 28, 2018		172,496		$	15.95		3.2	$	612
Granted		—			—
Terminated		—			—
Exercised		(110,906	)		15.99
Outstanding at February 28, 2019		61,590		$	15.88		1.8	$	327
Exercisable at February 28, 2019		61,590		$	15.88		1.8	$	327

(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 2019, 2018 or 2017.   

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
	2019		2018		2019
Total cash received	$	69	$	—	$	2,910
Income tax benefits		—		—		265
Total grant-date fair value		345		—		532
Intrinsic value		534		—		969

A summary of the status of the Company’s unvested stock options at February 28, 2018, and changes during the fiscal year ended February 28, 2019 is presented below:

				Weighted
				Average
	Number			Grant Date
	of Options			Fair Value
Unvested at February 28, 2018		1,616		$	2.24
New grants		—			—
Vested		(1,616	)		2.24
Forfeited		—			—
Unvested at February 28, 2019		—			—

The following table summarizes information about stock options outstanding at the end of fiscal year 2019:

	Options Outstanding						Options Exercisable
			Weighted Average		Weighted				Weighted
	Number		Remaining Contractual		Average		Number		Average
Exercise Prices	Outstanding		Life (in Years)		Exercise Price		Exercisable		Exercise Price
$8.94		10,000		0.2	$	8.94		10,000	$	8.94
$14.05 to $15.48		12,949		3.3		15.18		12,949		15.18
$17.57 to $18.46		38,641		1.8		17.92		38,641		17.92
		61,590		1.8		15.88		61,590		15.88

Restricted Stock

The Company had the following restricted stock grants activity for each of the three fiscal years ended February 28, 2019:

				Weighted
				Average
	Number of			Grant Date
	Shares			Fair Value
Outstanding at March 1, 2016		189,396		$	14.36
Granted		66,685			19.49
Terminated		—			—
Vested		(89,535	)		14.46
Outstanding at February 28, 2017		166,546		$	16.35
Granted		74,900			16.30
Terminated		—			—
Vested		(88,771	)		15.90
Outstanding at February 28, 2018		152,675		$	16.59
Granted		83,789			20.54
Terminated		—			—
Vested		(81,359	)		16.01
Outstanding at February 28, 2019		155,105		$	19.03

As of February 28, 2019, the total remaining unrecognized compensation cost related to unvested restricted stock was approximately $1.8 million. The weighted average remaining requisite service period of the unvested restricted stock awards was 1.6 years.  As of February 28, 2019, the Company’s outstanding restricted stock had an underlying fair value of $3.0 million at date of grant.