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STOCK-BASED COMPENSATION
9 Months Ended
Sep. 30, 2011
STOCK-BASED COMPENSATION
 
5.
STOCK-BASED COMPENSATION
 
The Company reserved 2,250,000 shares of common stock under a Stock Incentive Plan with a term of ten years.  This plan provides for the issuance of various forms of stock incentives, including, among others, incentive and non-qualified stock options and restricted stock.  As of September 30, 2011, there were approximately 973,000 shares available for grants.
 
Stock-based compensation for the three months and nine months ended September 30, 2011 and 2010 were as follows:
 
(in thousands)
  
Three months ended
September 30,
    
Nine months ended
September 30,
  
   
2011
    
2010
    
2011
    
2010
  
Pre – tax cost
   $ 372     $ 378     $ 1,090     $ 1,233  
After tax cost
   $ 240     $ 244     $ 703     $ 795  
 
 
Stock Options
 
Transactions involving Marine Products stock options for the nine months ended September 30, 2011 were as follows:
 
   
Shares
    
Weighted
Average
Exercise
Price
  
Weighted
Average
Remaining
Contractual
Life
    
Aggregate
Intrinsic
Value
Outstanding at January 1, 2011
     668,785     $ 3.71  
1.4 years
      
Granted
     -       -   N/A      
Exercised
     (104,050 )     1.72   N/A      
Forfeited
     -       -   N/A      
Expired
     -       -   N/A      
Outstanding and exercisable at September 30, 2011
     564,735     $ 4.08  
0.9 years
   $ 
373,000
 
The total intrinsic value of share options exercised was approximately $602,000 during the nine months ended September 30, 2011 and approximately $17,000 during the nine months ended September 30, 2010.  There were no recognized excess tax benefits associated with the exercise of stock options during the nine months ended September 30, 2011 and 2010, since all of the stock options exercised in 2011 were incentive stock options which do not generate tax deductions for the Company.
 
Restricted Stock
 
The following is a summary of the changes in non-vested restricted shares for the nine months ended September 30, 2011:
 
   
Shares
    
Weighted
Average
Grant-Date
Fair Value
  
Non-vested shares at January 1, 2011
     876,800     $ 6.16  
Granted
     311,000       7.33  
Vested
     (180,000 )     8.21  
Forfeited
     (36,800 )     6.03  
Non-vested shares at September 30, 2011
     971,000     $ 6.16  
 
 
The total fair value of shares vested was approximately $1,312,000 during the nine months ended September 30, 2011 and $814,000 during the nine months ended September 30, 2010.  Tax benefits for compensation tax deductions in excess of compensation expense totaling approximately $77,000 for the nine months ended September 30, 2011 were credited to capital in excess of par value and classified as financing cash flows.  There were no tax benefits for compensation tax deductions in excess of compensation expense for the nine months ended September 30, 2010.
 
Other Information
 
As of September 30, 2011, total unrecognized compensation cost related to non-vested restricted shares was approximately $5,240,000.  This cost is expected to be recognized over a weighted-average period of 2.3 years.