Quarterly report pursuant to Section 13 or 15(d)

Stock Based Compensation

v2.3.0.15
Stock Based Compensation
9 Months Ended
Sep. 30, 2011
Stock Based Compensation  
Stock Based Compensation

13.           The 2006 Stock- Based Compensation Plan (the “2006 Plan”). The 2006 Plan authorizes the grant of Stock Options, Stock Units, Stock Appreciation Rights, Restricted Stock, Deferred Stock, Stock Bonuses, and other equity-based awards. The total number of shares of Common Stock initially available for award under the 2006 Plan was 800,000. As of September 30, 2011, the number of shares of Common Stock available for future award grants to employees and directors under the 2006 Plan is 122,250.

 

During 2006, the Company granted a total of 315,000 shares of Restricted Stock to officers, directors and employees. Included in this grant were 200,000 Restricted Shares granted to the Company’s CEO in accordance with his employment agreement. These 200,000 Restricted Shares vest over 120 months. The remaining grants of Restricted Stock vest over 60 months.

 

During 2007, the Company granted a total of 30,000 shares of Restricted Stock to officers, directors and employees. These shares of Restricted Stock vest over 60 months. In 2007, a total of 12,500 shares of Restricted Stock were forfeited as a result of employees and officers terminating employment with the Company.

 

During 2008, the Company granted a total of 57,500 shares of Restricted Stock to officers and directors. These shares of Restricted Stock vest over 60 months.  In 2008, a total of 3,500 shares of Restricted Stock were forfeited as a result of employees terminating employment with the Company.

 

During 2009, the Company granted a total of 140,000 shares of Restricted Stock to officers and employees. These shares of Restricted Stock vest over 20 equal quarterly installments.

 

During 2010, the Company granted a total of 150,500 shares of Restricted Stock to officers and employees. These shares of Restricted Stock vest over 60 months. In 2010, a total of 5,875 shares of Restricted Stock were forfeited as a result of employees and officers terminating employment with the Company.

 

In February 2011, the Company granted a total of 15,000 shares of Restricted Stock to employees. These shares of Restricted Stock vest over 60 months.  In 2011, a total of 8,375 shares of Restricted Stock were forfeited as a result of employees terminating employment with the Company.

 

In July 2008, the Company approved the increase of its Common Stock repurchase program by 500,000 shares. The Company expects to purchase shares of Common Stock under this plan from time to time in the market or otherwise, subject to market conditions.

 

Changes during 2011 in options outstanding under the Company’s combined plans (i.e., the 2006 Plan, the 1995 Non-Employee Director Plan and the 1995 Stock Option Plan) were as follows:

 

 

 

Number of
Options

 

Weighted Average
Exercise Price

 

Weighted Average
Remaining
Contractual Life

 

Aggregate Intrinsic
Value ($M)(1)

 

Outstanding at January 1, 2011

 

392,890

 

$

8.12

 

 

 

 

 

Granted in 2011

 

—

 

—

 

 

 

 

 

Canceled in 2011

 

—

 

—

 

 

 

 

 

Exercised in 2011

 

18,750

 

3.85

 

 

 

 

 

Outstanding at September 30, 2011

 

374,140

 

$

8.33

 

2.7

 

$

0.8

 

Exercisable at September 30, 2011

 

374,140

 

$

8.33

 

2.7

 

$

0.8

 

 

(1) The intrinsic value of an option is calculated as the difference between the market value on the last trading day of the quarter (September 30, 2011) and the exercise price of the outstanding options. The market value as of September 30, 2011 was $10.00 per share represented by the closing price as reported by The Nasdaq Global Market on that day.

 

A summary of non-vested shares of Restricted Stock awards outstanding under the Company’s 2006 Plan as of September 30, 2011, and changes during the three months then ended is as follows:

 

 

 

Shares

 

Weighted Average
Grant Date
Fair Value

 

Non-vested shares at January 1, 2011

 

358,650

 

$

10.18

 

Granted in 2011

 

15,000

 

14.35

 

Vested in 2011

 

(79,400

)

10.37

 

Forfeited in 2011

 

(8,375

)

8.45

 

Non-vested shares at September 30, 2011

 

285,875

 

$

10.40

 

 

As of September 30, 2011, there is approximately $3.0 million of total unrecognized compensation costs related to non-vested share-based compensation arrangements. The unrecognized compensation cost is expected to be recognized over a weighted-average period of 3.7 years.

 

For the nine months ended September 30, 2011 and 2010, the Company recognized share-based compensation cost of approximately $824,000 and $892,000, respectively, which is included in general and administrative expense.