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STOCK-BASED COMPENSATION
 3 Months Ended
Mar. 31, 2012
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]  
STOCK-BASED COMPENSATION
4.
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 March 31, 2012, there were approximately 611,000 shares available for grants.
 
Stock-based compensation for the three months ended March 31, 2012 and 2011 were as follows:
 
(in thousands)
  
Three months ended
March 31,
  
   
2012
    
2011
  
Pre – tax cost
   $ 376     $ 346  
After tax cost
   $ 243     $ 223  
 
Stock Options
 
Transactions involving Marine Products stock options for the three months ended March 31, 2012 were as follows:
 
   
Shares
    
Weighted Average Exercise
Price
    
Weighted Average Remaining Contractual
Life
     Aggregate
Intrinsic
Value
Outstanding at December 31, 2011
     564,735     $ 4.08    
0.6 years
        
Granted
     -       -       N/A        
Exercised
     (306,375 )     2.67       N/A        
Forfeited
     (9,827 )     2.67       N/A        
Expired
     -       -       N/A        
Outstanding and exercisable at March 31, 2012
     248,533     $ 5.87    
1.0 years
     $ 
19,880
 
The total intrinsic value of share options exercised was approximately $817,000 during the three months ended March 31, 2012 and approximately $38,000 during the three months ended March 31, 2011.  Tax benefits associated with the exercise of non-qualified stock options during the three months ended March 31, 2012 of approximately $51,000 were credited to capital in excess of par value and are classified as financing cash flows.  There were no recognized excess tax benefits associated with the exercise of stock options during the three months ended March 31, 2011, since all of the stock options exercised in the first quarter of 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 three months ended March 31, 2012:
 
   
Shares
    
Weighted Average
Grant-Date
Fair Value
  
Non-vested shares at December 31, 2011
     971,000     $ 6.16  
Granted
     362,000       5.59  
Vested
     (194,300 )     6.49  
Forfeited
     -       -  
Non-vested shares at March 31, 2012
     1,138,700     $ 6.48  
 
The total fair value of shares vested was approximately $1,168,000 during the three months ended March 31, 2012 and $1,312,000 during the three months ended March 31, 2011.  Tax benefits for compensation tax deductions in excess of compensation expense totaling approximately $79,000 for the three months ended March 31, 2012 and $77,000 for the three months ended March 31, 2011 were credited to capital in excess of par value and classified as financing cash flows.
 
Other Information
 
As of March 31, 2012, total unrecognized compensation cost related to non-vested restricted shares was approximately $6,682,000.  This cost is expected to be recognized over a weighted-average period of 4.2 years.