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Shareholders' Equity:

3 Months Ended

Mar. 31, 2012

Shareholders' Equity:

Shareholders' Equity:

8. Shareholders’ Equity:

Dividends

On January 18, 2012, the Company’s Board of Directors approved the payment of a $0.03 per share quarterly cash dividend and $5.00 per share special cash dividend (the “Special Dividend”) to shareholders of record at the close of business on February 8, 2012, both of which were paid on March 1, 2012. The Special Dividend totaled $25.4 million and was financed by a combination of cash on hand as well as net borrowings under the Line of Credit of $12.8 million. (See Note 9 — “Line of Credit”).

Repurchase of Common Stock

The Company did not repurchase any shares of its common stock in the first three months of 2012. Under the Board of Directors’ authorization, as of March 31, 2012, the Company has the ability to repurchase 495,872 shares of its common stock. Repurchases may be made from time to time at prevailing prices, subject to certain restrictions on volume, pricing and timing.

Stock Option Plans and Stock-Based Compensation

The Company had authorized up to 750,000 shares of common stock be reserved for granting either nonqualified or incentive stock options to officers and key employees under the Company’s 2001 Stock Option Plan (the “2001 Plan”). The 2001 Plan expired on February 20, 2011. The Company has authorized up to 250,000 shares of common stock to be reserved for granting either nonqualified or incentive stock options to officers and key employees under the Company’s 2010 Stock Option Plan (the “2010 Plan”).

The Company also sponsors a Stock Option Plan for Nonemployee Directors (the “Nonemployee Directors Plan”) and has reserved a total of 300,000 shares for issuance to directors of the Company who are not employees.

Stock option activity under the 2001 Plan, 2010 Plan and Nonemployee Directors Plan (collectively, the “Option Plans”) as of March 31, 2012 was as follows:

		Number of Shares		Weighted Average Exercise Price			Weighted Average Remaining Contractual Life (years)		Intrinsic Value
Outstanding at December 31, 2011		668,614		$	24.31		6.62		$	22,101,800
Exercised		(119,662	)	20.31
Outstanding at March 31, 2012		548,952		$	25.19		6.90		$	17,979,700

Exercisable at March 31, 2012		300,126		$	17.86		5.75		$	11,489,900

During the three months ended March 31, 2012, option holders surrendered 31,351 shares of previously owned common stock as payment for option shares exercised as provided for by the Option Plans. No options were granted during the three months ended March 31, 2012 or the three months ended March 26, 2011. All unexercised options at March 31, 2012 have an exercise price equal to the fair market value on the date of the grant.

Compensation expense of $205,400 and $170,400 relating to the vested portion of the fair value of stock options granted was expensed to “Selling, General and Administrative Expenses” in the first three months of 2012 and 2011, respectively. As of March 31, 2012, the Company had $1.8 million of total unrecognized compensation expense related to stock options that is expected to be recognized over the remaining weighted average period of approximately 2.3 years.