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Stockholders Equity
 12 Months Ended
Dec. 31, 2011
Stockholders' Equity and Other Comprehensive Income [Abstract]  
STOCKHOLDERS' EQUITY

NOTE 8 – STOCKHOLDERS’ EQUITY

Cumulative Convertible Preferred Stock

As of December 31, 2011 and 2010, the Company had shares outstanding of Series A and Series M Cumulative Convertible Preferred Stock (“Preferred Stock”). Each share of Series A and Series M Preferred Stock is convertible by the Company into shares of Common Stock.

 

The following table provides information for each series of convertible preferred stock issued by the Company as of December 31, 2011 and 2010 (in thousands, except conversion factor):

 

                                                 
    As of December 31, 2011     As of December 31, 2010  
    Series A     Series M     Total     Series A     Series M     Total  

Shares

     20       88       108       20       88       108  

Conversion factor

     2.50       5.00       NM       2.50       5.00       NM  

Common shares resulting if converted

     50       438       488       50       438       488  

 

NM- Not meaningful.

The Series A Preferred Stock pays a cumulative dividend of $0.25 per share per quarter. During 2011, 2010 and 2009, respectively, the Company declared and paid aggregate dividends of $20 thousand, $20 thousand and $27 thousand to holders of record of the Company’s Series A Preferred Stock.

During the year ended December 31, 2010, shareholders converted 950 shares of Series M Preferred Stock into shares of Common Stock. The Company erroneously used the wrong conversion factor of 1.25 resulting in an issuance of 1,188 shares during the year ended December 31, 2010. This error was discovered during the year ended December 31, 2011 resulting in an additional issuance of 3,562 shares resulting from the conversion using a factor of 5.00. During the year ended December 31, 2009, shareholders converted 30 thousand shares of Series A Preferred Stock into 75 thousand shares of Common Stock. There were no conversions during the year ended December 31, 2011.

Common Stock

The following table summarizes the activity relating to shares of the Company’s Common Stock during the years ended December 31, 2011, 2010 and 2009 (in thousands):

 

                                 
    Issued
Shares		     Treasury
Shares		     Shares
Held in
Trust		     Outstanding
Shares		  

Balance, as of December 31, 2008

     40,158       (1,710 )      (906 )      37,542  

Preferred stock conversion

     75       —         —         75  

Options exercised

     20       (137 )      275       158  

Shares cancelled

     (38 )      38       —         —    
   

 

 

    

 

 

    

 

 

    

 

 

  

Balance, as of December 31, 2009

     40,215       (1,809 )      (631 )      37,775  
   

 

 

    

 

 

    

 

 

    

 

 

  

Preferred stock conversion

     1       —         —         1  

Options exercised

     1,995       (1,314 )      631       1,312  

Shares cancelled

     (2,104 )      2,104       —         —    

Restricted stock grant

     300       —         —         300  
   

 

 

    

 

 

    

 

 

    

 

 

  

Balance, as of December 31, 2010

     40,407       (1,019 )      —         39,388  
   

 

 

    

 

 

    

 

 

    

 

 

  

Options exercised

     160       (70 )      —         90  

Shares cancelled

     (70 )      70       —         —    

Restricted stock grant

     600       —         —         600  

Other adjustments

     3       1       —         4  
   

 

 

    

 

 

    

 

 

    

 

 

  

Balance, as of December 31, 2011

     41,100       (1,018 )      —         40,082  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

Dividends Declared

During the years ended December 31, 2011, 2010 and 2009, the Company declared dividends on its outstanding shares of common stock to its shareholders of record as follows (in thousands, except per share amounts):

 

                                                 
    For the year ended December 31,  
    2011     2010     2009  
    Per Share
Amount		     Aggregate
Amount		     Per Share
Amount		     Aggregate
Amount		     Per Share
Amount		     Aggregate
Amount		  

First Quarter

   $ 0.10     $ 3,939     $ 0.12     $ 4,700     $ 0.22     $ 8,268  

Second Quarter

   $ 0.00     $ —       $ 0.10     $ 3,917     $ 0.12     $ 4,516  

Third Quarter

   $ 0.08     $ 3,199     $ 0.00     $ —       $ 0.00     $ —    

Fourth Quarter

   $ 0.14     $ 5,611     $ 0.10     $ 3,917     $ 0.20     $ 7,529  

Applicable provisions of the Delaware General Corporation Law may affect the ability of the Company to declare and pay dividends on its Common Stock. In particular, pursuant to the Delaware General Corporation Law, a company may pay dividends out of its surplus, as defined, or out of its net profits, for the fiscal year in which the dividend is declared and/or the preceding year. Surplus is defined in the Delaware General Corporation Law to be the excess of net assets of the company over capital. Capital is defined to be the aggregate par value of shares issued. Moreover, the ability of the Company to pay dividends, if and when declared by its Board of Directors, may be restricted by regulatory limits on the amount of dividends, which the Insurance Subsidiaries are permitted to pay the Company.