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STOCK COMPENSATION
9 Months Ended
Sep. 30, 2011
STOCK COMPENSATION

NOTE E — STOCK COMPENSATION

A summary of the Company’s stock option activity and related information for the nine months ended September 30, 2011 is as follows:

 

     Options     Weighted-
average
exercise
price		      Weighted-
average
remaining
contractual life
(years)		      Aggregate
intrinsic
value		  

Options outstanding, January 1, 2011

      2,219,200      $ 12.46         

Grants

      376,500        11.16         

Exercises

      (7,000 )      3.69         

Cancellations

      (11,450 )      13.29         
  

 

 

          

Options outstanding, September 30, 2011

      2,577,250        12.29         6.5       $ 5,194,688   
  

 

 

          

 

 

  

Options exercisable, September 30, 2011

      1,387,300        13.82         5.0         3,263,383   
  

 

 

          

 

 

  

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value that would have been received by the option holders had all option holders exercised their stock options on September 30, 2011. The intrinsic value is calculated for each in-the-money stock option as the difference between the closing price of the Company’s common stock on September 30, 2011 and the exercise price.

The total intrinsic value of stock options exercised for the nine months ended September 30, 2011 and 2010 was $56,000 and $283,000, respectively. The intrinsic value of a stock option that is exercised is calculated at the date of exercise.

The Company recognized stock compensation expense of $682,000 and $782,000 for the three months ended September 30, 2011 and 2010, respectively, and $2.1 million and $2.2 million for the nine months ended September 30, 2011 and 2010, respectively.

Total unrecognized compensation cost related to unvested stock options at September 30, 2011, before the effect of income taxes, was $5.0 million and is expected to be recognized over a weighted-average period of 1.67 years.

On June 16, 2011, the Company granted an aggregate of 13,900 shares of restricted stock to its independent directors as part of their annual retainer that vests 100% one year from the date of grant. The restricted stock had a fair value of $150,000 at the grant date that will be recognized in expense over the one year vesting period. On August 4, 2011, the Company granted an aggregate of 7,500 shares of restricted stock to its independent directors that vests one year from the date of grant. The restricted stock had a fair value of $80,000 at the grant date that will be recognized in expense over the one year vesting period.

At September 30, 2011, there were 347,476 shares available for grant.