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Income Taxes
6 Months Ended
Jun. 30, 2013
Income Taxes  
Income Taxes

3.             Income Taxes.  For the three and six months ended June 30, 2013, the Company recorded income tax expense of $12,000 and $575,000, or 6.8% and 49.6% of income before taxes, respectively. For the three and six months ended June 30, 2012, the Company recorded an income tax benefit of $211,000 and $881,000, or 29.8% of loss before taxes in each period. The income tax provision (benefit) for the three and six months ended June 30, 2013 and 2012, is comprised of federal and state taxes. The primary differences between the Company’s June 30, 2013 and 2012 effective tax rates and the statutory federal rate are expenses related to equity compensation and nondeductible meals and entertainment.

 

As of June 30, 2013 and December 31, 2012, the Company has unrecognized tax benefits totaling $430,000, including interest, which relates to state nexus issues. The amount of the unrecognized tax benefits, if recognized, that would affect the effective income tax rates of future periods is $430,000. Due to the current statute of limitations regarding the unrecognized tax benefits, the unrecognized tax benefits and associated interest is not expected to change significantly in 2013.