Stock-Based Compensation

9 Months Ended

Jun. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation

The Company has awarded performance and restricted shares under its shareholder approved 2007 Long-Term Incentive Plan (“2007 Plan”). The aggregate number of shares that may be awarded under the 2007 Plan is 600 less any shares previously awarded and subject to an adjustment for the forfeiture of any unvested shares. In addition, shares that may be awarded are subject to individual recipient award limitations. The shares awarded under the 2007 Plan may be made in multiple forms, including stock options, stock appreciation rights, restricted or unrestricted stock, and performance related shares. Any such award is exercisable no later than ten years from the date of the grant.

The performance shares that have been awarded under the 2007 Plan generally provide for the vesting of the Company’s common shares upon the Company achieving certain defined financial performance objectives during a period up to three years following the making of such award. The ultimate number of common shares of the Company that may be earned pursuant to an award ranges from a minimum of no shares to a maximum of 150% of the initial target number of performance shares awarded, depending on the level of the Company’s achievement of its financial performance objectives.

With respect to such performance shares, compensation expense is being accrued. During each future reporting period, such expense may be subject to adjustment based upon the Company's financial performance, which impacts the number of common shares that it expects to vest upon the completion of the performance period. The performance shares were valued at the closing market price of the Company’s common shares on the date of the grant. The vesting of such shares is determined at the end of the performance period.

During the first nine months of fiscal 2016, one award was granted for 92 performance shares under the 2007 Plan with a grant date fair value of $10.50. These shares vest over a three year performance period. A second award was granted for 10 performance shares under the 2007 Plan with a grant date fair value of $9.50. Half of the shares vest within six months service period and the remaining shares vest within the next six months service period.

The Company has awarded restricted shares to its directors, officers, and other employees of the Company. The restricted shares were valued at the closing market price of the Company’s common shares on the date of the grant, and such value was recorded as unearned compensation. The unearned compensation is being amortized ratably over the restricted stock vesting period of one year or three years.

During the first nine months of fiscal 2016, one award was granted for 29 restricted shares with a grant date fair value of $9.45. These awards vest over a one year service period. Two separate awards for 20 restricted shares vested under the 2007 Plan. A second award was granted for 30 restricted shares with a grant date fair value of $9.60. This award vests over a three year service period.

If all outstanding share awards are ultimately earned and vest at the target number of shares, there are approximately 159 shares that remain available for award at June 30, 2016. If any of the outstanding share awards are ultimately earned and vest at greater than the target number of shares, up to a maximum of 150% of such target, then a fewer number of shares would be available for award.

Stock-based compensation under the 2007 Plan was a $228 benefit and $785 expense during the first nine months of fiscal 2016 and 2015, respectively and expense of $236 and $385 for the third quarter of fiscal 2016 and 2015, respectively. The Company reversed portions of its long-term incentive accruals in the current period and in fiscal 2015, $233 of stock compensation expense was included in severance expense for shares issued to a former executive as part of the executive's severance package. As of June 30, 2016, there was $1,646 of total unrecognized compensation cost related to the performance shares and restricted shares awarded under the 2007 Plan. The Company expects to recognize this cost over the next 2.3 years.