STOCK BASED COMPENSATION

6 Months Ended

Jun. 30, 2011

STOCK BASED COMPENSATION [Abstract]

Stock Based Compensation Disclosure [Text Block]

STOCK BASED COMPENSATION

The Company has two plans (the 2005 Plan and 2007 Plan) under which it may grant stock-based awards to certain employees, directors and consultants of the Company and its subsidiaries. Compensation expense for stock-based awards made to employees, directors and consultants in return for service is recorded in accordance with Compensation-Stock Compensation of the FASB ASC. The expense is measured at the grant-date fair value of the award and recognized as compensation expense on a straight-line basis over the service period, which is the vesting period. The Company estimates forfeitures that it expects will occur and records expense based upon the number of awards expected to vest.

The Company recorded stock based compensation expense of $1.2 million and $2.1 million during the three and six month periods ended June 30, 2011, respectively, and $972,000 and $1.8 million during the three and six month periods ended June 30, 2010, respectively. At June 30, 2011, there was $12.7 million of unrecognized compensation expense related to unvested awards, which is expected to be recognized over a weighted-average period of approximately 1.7 years.

Restricted Stock- Restricted stock is granted to employees and to non-employee members of the Company’s Board. These shares are part of the compensation plan for services provided by the employees or Board members. The closing price of the Company’s stock on the date of grant was used to determine the fair value of the grants. The expense related to the restricted stock grants is recorded over the vesting period. There was no cash flow impact resulting from the grants.

		Number of			Fair value of		Vesting
Grant Date		shares issued		Awarded to	common stock		Period
March 3, 2011	414,500	414,500	14.50	Management	$	14.50	4 years
April 14, 2011	8,000	8,000	15.94	Management	$	15.94	4 years
April 14, 2011	15,000	15,000	15.94	Board members	$	15.94	1 year

A summary of the status of restricted stock awards as of June 30, 2011 and 2010, and the changes during the periods then ended is presented below:

	Three Months Ended June 30, 2011				Three Months Ended June 30, 2010
	Shares		Weighted- Average Fair Value at Grant Date		Shares		Weighted- Average Fair Value at Grant Date
Non-vested at beginning of the period	525,500		$	12.86	165,000		$	5.55
Granted- Restricted Stock	23,000		$	15.94	24,000		$	9.05
Forfeited during the period	(1,000	)	$	14.50	—		$	—
Vested during the period	(24,000	)	$	9.05	(45,000	)	$	4.15
Non-vested at end of period	523,500		$	13.16	144,000		$	6.58

	Six Months Ended June 30, 2011				Six Months Ended June 30, 2010
	Shares		Weighted- Average Fair Value at Grant Date		Shares		Weighted- Average Fair Value at Grant Date
Non-vested at beginning of the period	140,000		$	6.59	45,000		$	4.15
Granted- Restricted Stock	437,500		$	14.58	144,000		$	6.58
Forfeited during the period	(1,000	)	$	14.50	—		$	—
Vested during the period	(53,000	)	$	7.42	(45,000	)	$	4.15
Non-vested at end of period	523,500		$	13.16	144,000		$	6.58

Stock Options- The fair value of each option grant is estimated using the Black-Scholes option-pricing model using the weighted-average assumptions in the table below. Because the Company’s stock has not been publicly traded for a period long enough to use to determine volatility, the average implied volatility rate for a similar entity was used. The expected life of options granted is derived from historical exercise behavior. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury rates in effect at the time of grant.

	Three Months Ended June 30,					Six Months Ended June 30,
	2011		2010			2011			2010
The weighted average fair value of options granted	$	—	$	4.13		$	6.34		$	2.58
Dividend yield	—		—		%	—		%	—		%
Weighted average risk free interest rate	—		2.46		%	2.16		%	1.46		%
Weighted average expected volatility	—		52.00		%	49.92		%	48.96		%
Expected life (in years)	—		4.6			4.6			4.6

During the six month period ended June 30, 2011, the Company granted the following stock options with exercise prices as follows:

Grant Date	Number of stock options issued	Fair value of common stock		Exercise price		Intrinsic value
March 3, 2011	291,000	$	14.50	$	14.50	$	—

A summary of the status of options granted as of June 30, 2011, and 2010, and the changes during the periods then ended is presented below:

	Three Months Ended June 30, 2011				Three Months Ended June 30, 2010
	Options		Weighted- Average Exercise Price		Options		Weighted- Average Exercise Price
Options outstanding at beginning of period	9,817,060		$	4.03	12,843,167		$	3.22
Granted	—		$	—	25,000		$	9.08
Exercised	(511,729	)	$	2.55	(168,875	)	$	2.62
Forfeited	(33,564	)	$	7.02	(17,813	)	$	4.51
Options outstanding at end of period	9,271,767		$	4.10	12,681,479		$	3.24

	Six Months Ended June 30, 2011				Six Months Ended June 30, 2010
	Options		Weighted- Average Exercise Price		Options		Weighted- Average Exercise Price
Options outstanding at beginning of period	10,763,097		$	3.57	11,451,740		$	2.82
Granted	291,000		$	14.50	1,535,800		$	6.13
Exercised	(1,704,828	)	$	2.41	(284,248	)	$	2.07
Forfeited	(77,502	)	$	6.16	(21,813	)	$	4.42
Options outstanding at end of period	9,271,767		$	4.10	12,681,479		$	3.24
Exercisable at end of period	6,746,017		$	3.20	8,777,830		$	2.35

The weighted-average remaining contractual term of options exercisable at June 30, 2011 is 4.5 years. The following table summarizes information about options outstanding as of June 30, 2011:

	Options Outstanding		Options Exercisable
Exercise Price	Number Outstanding	Weighted- Average Remaining Contractual Life	Number Exercisable
		(in years)
$  0.20 - $  0.99	1,882,527	4.2	1,882,527
$  1.00 - $  2.99	2,879,368	4.4	2,177,862
$  4.00 - $  5.99	610,948	5.3	574,946
$  6.00 - $  8.99	3,409,886	4.9	2,083,819
$ 9.00 - $ 14.50	489,038	6.6	26,863
	9,271,767		6,746,017