Share-based Compensation

Non-qualified stock options with time-based vesting (“NQOs”)

In the three months ended September 30, 2016, the Company granted no shares issuable upon the exercise of NQOs.

The following table summarizes NQO activity for the three months ended September 30, 2016:



Outstanding NQOs:	Number of NQOs		Weighted Average Exercise Price ($)	Weighted Average Grant Date Fair Value ($)	Weighted Average Remaining Life (Years)	Aggregate Intrinsic Value ($ in thousands)
Outstanding at June 30, 2016	219,629		13.87	6.28	3.7	3,995
Granted	—		—	—	—	—
Exercised	(12,000	)	6.96	3.44	—	318
Cancelled/Forfeited	(3,278	)	14.60	6.02	—	—
Outstanding at September 30, 2016	204,351		14.26	6.45	3.5	4,350
Vested and exercisable, September 30, 2016	166,147		11.33	5.25	3.0	4,025
Vested and expected to vest, September 30, 2016	202,333		14.13	6.39	3.5	4,333

The aggregate intrinsic values outstanding at the end of each fiscal period in the table above represent the total pretax intrinsic value, based on the Company’s closing stock price of $35.55 at September 30, 2016 and $32.06 at June 30, 2016, representing the last trading day of the fiscal periods, which would have been received by NQO holders had all award holders exercised their NQOs that were in-the-money as of those dates. NQOs outstanding that are expected to vest are net of estimated forfeitures.

Total fair value of NQOs vested during the three months ended September 30, 2016 was $6,000. No NQOs vested during the three months ended September 30, 2015. The Company received $0.1 million and $0.3 million in proceeds from exercises of vested NQOs in the three months ended September 30, 2016 and 2015, respectively.

At September 30, 2016 and June 30, 2016, respectively, there was $0.3 million and $0.4 million of unrecognized compensation cost related to NQOs. The unrecognized compensation cost related to NQOs at September 30, 2016 is expected to be recognized over the weighted average period of 1.9 years. Total compensation expense for NQOs was $42,000 and $34,000 in the three months ended September 30, 2016 and 2015, respectively.

Non-qualified stock options with performance-based and time-based vesting (“PNQs”)

In the three months ended September 30, 2016, the Company granted no shares issuable upon the exercise of PNQs.

The following table summarizes PNQ activity for the three months ended September 30, 2016:



Outstanding PNQs:	Number of PNQs	Weighted Average Exercise Price ($)	Weighted Average Grant Date Fair Value ($)	Weighted Average Remaining Life (Years)	Aggregate Intrinsic Value ($ in thousands)
Outstanding at June 30, 2016	288,599	25.83	10.82	5.7	1,798
Granted	—	—	—	—	—
Exercised	—	—	—	—	—
Cancelled/Forfeited	—	—	—	—	—
Outstanding at September 30, 2016	288,599	25.83	10.82	5.5	2,805
Vested and exercisable, September 30, 2016	48,132	22.52	10.31	4.9	627
Vested and expected to vest, September 30, 2016	277,923	25.76	10.81	5.5	2,722

The aggregate intrinsic values outstanding at the end of each fiscal period in the table above represent the total pretax intrinsic values, based on the Company’s closing stock price of $35.55 at September 30, 2016 and $32.06 at June 30, 2016 representing the last trading day of the respective fiscal periods, which would have been received by PNQ holders had all award holders exercised their PNQs that were in-the-money as of those dates. PNQs outstanding that are expected to vest are net of estimated forfeitures.

No PNQs vested or were exercised during the three months ended September 30, 2016 and 2015.

As of September 30, 2016, the Company met the performance target for the first year of the fiscal 2014 and 2015 awards and expects that it will achieve the performance targets set forth in the PNQ agreements for the remainder of the fiscal 2014 and fiscal 2015 awards and the fiscal 2016 awards.

At September 30, 2016 and June 30, 2016, there was $1.7 million and $1.9 million, respectively, of unrecognized compensation cost related to PNQs. The unrecognized compensation cost related to PNQs at September 30, 2016 is expected to be recognized over the weighted average period of 1.3 years. Total compensation expense related to PNQs in the three months ended September 30, 2016 and 2015 was $0.2 million and $0.1 million, respectively.

Restricted Stock

The Company granted no shares or restricted stock during the three months ended September 30, 2016.

The following table summarizes restricted stock activity for the three months ended September 30, 2016:



Outstanding and Nonvested Restricted Stock Awards:	Shares Awarded	Weighted Average Grant Date Fair Value ($)	Weighted Average Remaining Life (Years)	Aggregate Intrinsic Value ($ in thousands)
Outstanding at June 30, 2016	23,792	26.00	1.8	763
Granted	—	—	—	—
Exercised/Released	—	—	—	—
Cancelled/Forfeited	—	—	—	—
Outstanding at September 30, 2016	23,792	26.00	1.6	846
Expected to vest, September 30, 2016	22,485	25.92	1.6	799

The aggregate intrinsic value of shares outstanding at the end of each fiscal period in the table above represent the total pretax intrinsic values, based on the Company’s closing stock price of $35.55 at September 30, 2016 and $32.06 at June 30, 2016, representing the last trading day of the respective fiscal periods. Restricted stock that is expected to vest is net of estimated forfeitures.

At September 30, 2016 and June 30, 2016, there was $0.4 million and $0.5 million of unrecognized compensation cost related to restricted stock. The unrecognized compensation cost related to restricted stock at September 30, 2016 is expected to be recognized over the weighted average period of 1.8 years. Total compensation expense for restricted stock was $60,000 and $45,000 for the three months ended September 30, 2016 and 2015, respectively.