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Shareholders Equity
 12 Months Ended
Dec. 31, 2011
Shareholders Equity [Abstract]  
SHAREHOLDERS EQUITY
(8) Shareholders’ Equity

 

  (a) Initial Public Offering

On August 10, 2009, the Company completed its initial public offering of 5,000,000 shares of common stock at a price of $17.00 per share, raising gross proceeds of $85.0 million. After deducting underwriting discounts of approximately $6.0 million and offering costs incurred of approximately $4.2 million, the net proceeds to the Company were approximately $74.8 million. Contemporaneously with the offering, each outstanding share of preferred stock was automatically converted into two shares of common stock.

 

  (b) Preferred Stock

The Company is authorized to issue 20,000,000 shares of preferred stock. The Board of Directors is authorized to divide these shares into classes or series, and to fix and determine the relative rights, preferences, qualifications and limitations of the shares of any class or series so established. At December 31, 2011 and 2010, there was no preferred stock outstanding.

 

  (c) Common Stock

During 2011, 2010 and 2009, the Company issued 10,144, 5,636 and 2,750 shares of common stock, respectively, valued at $59,000, $56,000 and $39,750, respectively, as compensation for services, which is included in general and administrative expenses in the consolidated statements of income. The Company issued 2,924,202 shares of common stock to a key executive and an advisor upon exercise of options in 2009.

The payment of dividends is restricted by the Agreement with the Company’s primary lender.

 

  (d) Warrants

In 2003, the Company issued warrants to purchase 25,000 shares of common stock at an exercise price of $6.00 per share as partial consideration for a modification to its line of credit. The warrants expire 10 years from the date of issuance. All of these warrants were outstanding and exercisable as of December 31, 2011 and 2010.

In connection with the issuance of shares of common stock to a related party in 2004, the Company issued warrants to purchase 40,000 shares of common stock at $6.00 per share at any time within ten years of issuance. All of these warrants were outstanding and exercisable as of December 31, 2011 and 2010.

In 2006, the Company signed a new line of credit agreement along with a term loan agreement with a financial institution. In conjunction with these agreements, the Company issued warrants to purchase up to 3,958 shares of common stock at $9.00 per share that expire in April 2016, which were outstanding and exercisable as of December 31, 2011 and 2010. In connection with the amendment to the debt agreements in 2009, the Company issued warrants to purchase up to 7,500 shares of common stock at $17.00 per share that expire in July 2019.

 

  (e) Share Repurchases

In February and April 2010, the Company repurchased 163,022 shares of common stock totaling approximately $1.9 million for the settlement of tax liabilities associated with the exercise of certain stock options in 2009. The repurchase amount was based on the fair-market value of common stock on the date of settlement.

In May 2010, the Company announced a share repurchase program to repurchase up to $10.0 million of its outstanding common shares. In January 2011, the Company’s Board of Directors modified the repurchase program to provide for the repurchase of $10.0 million of outstanding common stock, in addition to the amount repurchased in 2010. Pursuant to the plan, the Company repurchased 678,073 and 452,433 shares of common stock for approximately $3.9 million and $3.0 million during the year ended December 31, 2011 and 2010, respectively. In addition, the Company purchased 65,000 outside of the plan during the year ended December 31, 2011 at the then-current fair market value of common stock.