Note 2 - Income Taxes

3 Months Ended

Mar. 31, 2013

Income Tax Disclosure [Text Block]

2.           INCOME TAXES

The Company’s effective tax rate increased to 37.3% for the three-month period ended March 31, 2013, compared to 35.1% for the same period in 2012.  This increase was primarily due to nondeductible fees associated with the recapitalization transaction that were incurred during the three-month period ended March 31, 2013, and an increase in unrecognized tax benefits during the three-month period ended March 31, 2013, compared to a decrease in unrecognized tax benefits for the same period in 2012.

The unrecognized tax benefit as of March 31, 2013, was $252,000, excluding interest of $12,000 and no penalties.  The full unrecognized tax benefits, if recognized, would favorably impact the effective income tax rate.  The Company believes it is reasonably possible that the total amount of unrecognized tax benefits could decrease during the next 12 months due to the expiration of the U.S. federal statute of limitations associated with certain other tax positions.  The Company accrues interest and penalties related to uncertain tax position in the statements of income as income tax expense.