SHAREHOLDERS’ EQUITY

Dividends

A monthly dividend of $0.005 is authorized from July 2015 through September 2015 and a monthly dividend of $0.0025 is authorized from October 2015 through December 2015, and will be considered for continuation at that time by the Board of Directors. Payment of cash dividends is within the discretion of the Company’s Board of Directors and is dependent on earnings, operations, capital requirements, general financial condition of the Company and general business conditions. On a per share basis, the holders of the class C common stock and the nonvoting class A common stock participate equally in dividends as declared by the Company’s Board of Directors.

Share Repurchase Plan

The Board of Directors approved a share repurchase program on December 7, 2012, authorizing the Company to purchase up to $2.75 million of its outstanding common shares, as market and business conditions warrant, on the open market in compliance with Rule 10b-18 of the Securities Exchange Act of 1934 through December 31, 2013. On December 12, 2013, and December 10, 2014, the Board of Directors renewed the repurchase program for calendar year 2014 and 2015, respectively. The total amount of shares that may be repurchased in 2015 under the renewed program is $2.75 million. The acquired shares may be used for corporate purposes, including shares issued to employees in the Company’s stock-based compensation programs. As of June 30, 2015, there remains approximately $2.66 million available for repurchase under this authorization.

During fiscal years 2015, 2014, and 2013, the Company repurchased 95,251; 93,351; and 55,052, respectively, of its class A shares on the open market using cash of $292,000; $289,000; and $174,000, respectively. To date, the Company has repurchased a total of 243,654 class A shares under the repurchase program using cash of $755,000.

Other Activity

The Company did not grant any shares of class A common stock to employees during fiscal year 2015, 2014 or 2013. Grants vest immediately after issuance.

The Company granted 3,600; 3,600; and 3,600 shares of class A common stock at a weighted average fair value of $3.24, $3.07, and $4.16 to its non-employee directors in fiscal years 2015, 2014, and 2013, respectively. Grants vest immediately after issuance.

Shareholders of class C shares are allowed to convert to class A. During fiscal years 2015, 2014, and 2013, 60; 1,340; and 2,516 shares, respectively, were converted from class C to class A. Conversions are one class A share for one class C share and are recorded at par value. There are no restrictions or requirements to convert.

Stock-based compensation

In November 1989, the Board of Directors adopted the 1989 Non-Qualified Stock Option Plan (“1989 Plan”), amended in December 1991, which provides for the granting of options to purchase 1,600,000 shares of the Company’s class A common stock to directors, officers and employees of the Company and its subsidiaries. Options issued under the 1989 Plan vest six months from the grant date or 20 percent on the first, second, third, fourth, and fifth anniversaries of the grant date. Options issued under the 1989 Plan expire ten years after issuance. As of June 30, 2015, there were no options outstanding under the 1989 Plan.

In April 1997, the Board of Directors adopted the 1997 Non-Qualified Stock Option Plan (“1997 Plan”), which provides for the granting of stock appreciation rights (SARs) and/or options to purchase 400,000 shares of the Company’s class A common stock to directors, officers, and employees of the Company and its subsidiaries. Options issued under the 1997 Plan expire ten years after issuance. No options were granted in fiscal years 2015, 2014, or 2013.

The estimated fair value of options granted is amortized to expense over the options’ vesting period. The fair value of these options is estimated at the date of the grant using a Black-Scholes option pricing model.

Stock option transactions under the various employee stock option plans for the past three fiscal years are summarized below:



(dollars in thousands, except price data)	Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life in Years	Aggregate Intrinsic Value (net of tax)
Outstanding June 30, 2012	29,000	$	17.03
Granted	—	n/a
Exercised	—	n/a
Forfeited	—	n/a
Outstanding June 30, 2013	29,000	$	17.03
Granted	—	n/a
Exercised	—	n/a
Forfeited	7,000	$	11.74
Outstanding June 30, 2014	22,000	$	18.72
Granted	—	n/a
Exercised	—	n/a
Forfeited	—	n/a
Outstanding June 30, 2015	22,000	$	18.72	2.44	$	165

As of June 30, 2015, 2014, and 2013, exercisable employee stock options totaled 22,000; 22,000; and 25,000 shares and had weighted average exercise prices of $18.72, $18.72, and $18.71 per share, respectively.

Class A common stock options outstanding and exercisable under the employee stock option plans at June 30, 2015, were as follows:



	Options Outstanding					Options Exercisable
	Date of Option Grant	Number Outstanding	Remaining Life in Years	Weighted Average Exercise Price ($)		Number Exercisable	Weighted Average Option Price ($ )
1997 Plan Class A	10/3/2007	20,000	2.25	$	19.36	20,000	$	19.36
	10/7/2009	2,000	4.27	$	12.31	2,000	$	12.31
		22,000	2.44	$	18.72	22,000	$	18.72