Stock-Based Compensation

6 Months Ended

Jun. 30, 2012

Stock-Based Compensation [Abstract]

STOCK-BASED COMPENSATION

9. STOCK-BASED COMPENSATION

The Company has one stock-based compensation plan, the 2005 Stock Incentive Plan (the “2005 Plan”), which was amended by its shareholders on May 7, 2008. The 2005 Plan is administered by the Compensation Committee of the Company’s Board of Directors. Stock-based compensation is granted to officers, directors and certain key employees in accordance with the provisions of the 2005 Plan. The 2005 Plan provides for grants of stock options, stock appreciation rights (“SARs”), restricted stock and performance share awards. As of June 30, 2012, the total aggregate number of shares of the Company’s common stock that may be issued under the 2005 Plan is 3,150,000.

The fair value of each SAR is estimated on the date of grant using a Black-Scholes option-pricing formula. For SARs issued in the six months ended June 30, 2012 and 2011, respectively, the assumptions shown in the following table were used:

	Six Months Ended June 30,
	2012			2011
Weighted-average fair value of grants	$	14.01		$	14.57
Dividend yield		0	%		0	%
Average risk-free interest rate		0.8	%		2.0	%
Expected term (years)		5			5
Expected volatility		66	%		65	%

The following table summarizes the Company’s stock-based compensation grants for the six months ended June 30, 2012:

	Stock Awards Granted		Weighted-Average Grant Price Per Share
Stock appreciation rights		94,797	$	25.56
Restricted stock		66,210	$	25.56

The following table summarizes the Company’s stock-based compensation expense for the three and six months ended June 30, 2012 and 2011 (in thousands):

	Three Months Ended June  30,				Six Months Ended June 30,
	2012		2011		2012		2011
Stock appreciation rights	$	418	$	358	$	720	$	739
Restricted stock		530		417		933		806
Employee stock purchase plan		9		9		40		36
Total stock-based compensation	$	957	$	784	$	1,693	$	1,581

Total unrecognized compensation cost related to unvested awards as of June 30, 2012 totaled $4.4 million. The cost of these unvested awards is being recognized over the requisite vesting period of 36 months from date of grant.