Equity

12 Months Ended

Aug. 31, 2012

Equity

Note 16 - Equity

On December 16, 2010, the Company issued 3,000,000 shares of its common stock in an underwritten at-the-market public offering at $21.06 per share, less expenses resulting in net proceeds of $62.8 million.

On May 12, 2010, the Company issued 4,000,000 shares of its common stock at a price of $12.50 per share, less underwriting commissions, discounts and expenses. On May 19, 2010, an additional 500,000 shares were issued pursuant to the 30-day over-allotment option exercised by the underwriters. The combined issuance resulted in net proceeds of $52.7 million.

In January 2011, the stockholders approved the 2010 Amended and Restated Stock Incentive Plan (formerly known as the 2005 Stock Incentive Plan as amended). The plan provides for the grant of incentive stock options, non-statutory stock options, restricted shares, stock units and stock appreciation rights. The maximum aggregate number of the Company’s common shares authorized for issuance is 2,825,000. During the years ended August 31, 2012, 2011 and 2010, the Company awarded restricted stock grants totaling 466,680, 309,380 and 302,326 shares.

The following table summarizes restricted stock grant transactions for shares, both vested and unvested, under the 2010 Amended and Restated Stock Incentive Plan:

	Shares
Balance at September 1, 2009		1,525,147
Granted		302,326
Forfeited		(27,900	)
Balance at August 31, 2010		1,799,573
Granted		309,380
Forfeited		(4,000	)
Balance at August 31, 2011		2,104,953
Granted		466,680
Forfeited		(6,283	)
Balance at August 31, 2012		2,565,350

The unvested restricted stock grants were 903,554 and 1,230,739 as of August 31, 2012 and 2011.

The fair value of awards granted was $9.5 million for 2012, $7.2 million for 2011 and $3.5 million for 2010.

The following table summarizes stock option transactions for shares under option and the related weighted average option price:

	Shares			Weighted Average Option Price
Balance at September 1, 2009		12,160		$	4.59
Exercised		(6,660	)	$	4.47
Balance at August 31, 2010		5,500		$	4.74
Exercised		(5,500	)	$	4.74
Balance at August 31, 2011		–		$	–
Exercised		–		$	–
Balance at August 31, 2012		–		$	–

At August 31, 2012 there were no options outstanding. On August 31, 2012 there were 259,650 shares available for grant compared to 720,047 and 25,427 shares available for grant as of the years ended August 31, 2011 and 2010. Restricted stock grants are considered outstanding shares of common stock at the time they are issued. The holders of the unvested restricted stock grants are entitled to voting rights and participation in dividends. The dividends are not forfeitable if the awards are later forfeited prior to vesting. Approximately 362,250 additional shares may be granted if performance based restricted stock awards vest at stretch levels of performance associated with restricted stock awards granted during the years ended August 31, 2012 and 2011.

The value, at the date of grant, of stock awarded under restricted stock grants is amortized as compensation expense over the lesser of the vesting period of one to five years or to the recipients eligible retirement date. Compensation expense recognized related to restricted stock for the years ended August 31, 2012, 2011 and 2010 was $8.8 million, $7.1 million and $5.8 million and was recorded in Selling and administrative on the Consolidated Statements of Income. 2012 compensation expense includes $0.4 million of restricted stock expected to be granted if performance based awards vest at stretch levels of performance. Unamortized compensation cost related to restricted stock grants were $10.3 million as of August 31, 2012.