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Stock Incentive Plans
 12 Months Ended
Dec. 31, 2011
Stock Incentive Plans [Abstract]  
Stock Incentive Plans
11. Stock Incentive Plans

The Company's 2009 Stock Incentive Plan (the "2009 Plan"), which provides for stock-based awards to Company employees, non-employee directors and outside consultants or advisors, was approved by shareholders on May 13, 2009. No options have been issued to outside consultants or advisors. The number of shares of common stock reserved for issuance under the 2009 Plan is 1,000,000, of which the aggregate number of shares for which incentive stock options may be granted under the Plan is 900,000. No new grants of stock options may be made under the Company's 2003 Stock Incentive Plan (the "2003 Plan"). At December 31, 2011, there were option awards covering 671,294 shares outstanding under the 2009 plan, together with the 2003 Plan and its predecessor, the 1993 Stock Incentive Plan. Outstanding options under all the plans generally expire ten years after the date of grant. Options are generally exercisable in four equal annual installments beginning one year after the date of grant.

 

The Company recognizes compensation expense for options awarded under its stock incentive plans based on the grant-date fair value. Compensation expense is attributed to earnings using the straight-line method over the requisite service period.

A summary of the status of the Company's stock options at December 31, 2011, 2010 and 2009, together with changes during the periods then ended, is presented below:

 

                 
     Number
of
options		     Weighted
average
exercise
price		  

Outstanding at December 31, 2008

      501,006           

Options granted at market price

      79,500      $ 11.06   

Options exercised

      (265,187 )      2.14   
    

 

 

          

Outstanding at December 31, 2009

      315,319           

Options granted at market price

      87,000        13.43   

Options exercised

      (2,750 )      6.29   
    

 

 

          

Outstanding at December 31, 2010

      399,569           

Options granted at market price

      289,200        16.06   

Options exercised

      (7,475 )      7.24   

Options cancelled

      (10,000 )      14.39   
    

 

 

          

Outstanding at December 31, 2011

      671,294           
    

 

 

          

Available for grant at December 31, 2011

      633,800           
    

 

 

          

The following table presents information on stock options outstanding as of and for the years ended December 31, 2011 and 2010:

 

                 
     Year Ended December 31,  
(in thousands, except share data)    2011      2010  

Intrinsic value of options exercised in the period

    $ 69       $ 22   
   
     As of December 31,  
     2011      2010  

Stock options:

                  

Number of options

      671,294         399,569   

Weighted average exercise price

    $ 13.62       $ 13.66   

Aggregate intrinsic value

    $ 1,796       $ 494   

Weighted average contractual term of options

          6.88 years             6.14 years   

 

The aggregate intrinsic value of stock options represents the difference between the Company's closing stock price at the end of the period and the relevant exercise price multiplied by the number of options outstanding at the end of the period at each such price.

The fair value of the stock-based awards as determined under the Black-Scholes option-pricing model was estimated with the following weighted-average assumptions:

 

                         
     2011     2010     2009  

Expected volatility

      65.9 %      58.8 %      61.9 % 

Risk free interest rate

      2.9 %      3.0 %      1.4 % 

Expected dividend yield

      2.3 %      2.4 %      2.9 % 

Expected term

      7.3 years        7.0 years        7.1 years   

Weighted average fair value per share

    $ 7.20      $ 5.59      $ 4.39   

There were no options granted during 2011, 2010 or 2009 below market price.

The following table summarizes stock-based compensation expense related to stock option awards (in thousands):

 

                         
     Year Ended
December 31,		  
     2011      2010      2009  

Stock-based compensation expense included in selling, general and administrative expenses

    $ 472       $ 192       $ 100   

Deferred income taxes

      188         76         40   
    

 

 

     

 

 

     

 

 

  

Stock-based compensation expense related to stock options, net of tax

    $ 284       $ 116       $ 60   
    

 

 

     

 

 

     

 

 

  

As of December 31, 2011, unrecognized compensation expense related to stock options was $2.2 million with a weighted average period of 5.4 years.

The following table summarizes information about stock options outstanding at December 31, 2011:

 

                                         

Options outstanding

      Options exercisable  

Exercise price range

    Number
of
shares		      Weighted-
average
exercise
price		      Weighted-
average
remaining
contractual
life (years)		      Exercisable
at
December 31,
2011		      Weighted-
average
exercise
price		  

$2.00 - $  2.58

      8,900       $ 2.09         1.1         8,900       $ 2.09   

  8.33 -   17.50

      662,394         14.65         7.0         274,444         14.00   
    

 

 

                       

 

 

           
       671,294                           283,344         13.62