Stock-Based Compensation

12 Months Ended

Dec. 31, 2022

Stock-Based Compensation

Stock-Based Compensation

(6) Stock-Based Compensation

The Company has a long-term incentive plan, the Amended and Restated 2001 Long-Term Incentive Plan (the “2001 Plan”). The 2001 Plan provides for stock options, restricted stock and dollar-denominated cash awards, including performance-based awards. In addition to stock options, restricted stock and cash awards, the 2001 Plan provides for the grant of stock appreciation rights, deferred stock and other stock-based awards to directors, officers, employees and consultants.

The number of shares of common stock that may be subject to outstanding awards granted under the 2001 Plan (determined immediately after the grant of any award) may not exceed 874,589 from the inception of the 2001 Plan. In

addition, no individual may receive awards in any one calendar year of more than 100,000 shares of common stock. Stock options granted under the 2001 Plan expire ten years from the date of grant and generally become exercisable, or vest, immediately. Restricted stock generally vests over periods of one-half to three years. Upon the exercise of stock options, the Company issues common stock from its non-issued authorized or treasury shares that have been reserved for issuance pursuant to the 2001 Plan. At December 31, 2022, the number of shares of common stock remaining available for future grants of stock options, restricted stock or other forms of stock-based compensation under the 2001 Plan was 62,876.

The Company recorded $2,636, $2,236 and $1,915 for stock-based compensation expense related to stock options and shares of restricted stock for 2022, 2021 and 2020, respectively. The amounts included in cost of revenues were $211, $197 and $312 and in selling, general and administrative expense were $2,425, $2,039 and $1,603, for 2022, 2021 and 2020, respectively.

A summary of the Company’s stock option and restricted stock activity and related information for the year ended December 31, 2022 and certain other information for the years ended December 31, 2022, 2021 and 2020 are as follows:

		Weighted-					Weighted-
		Average		Aggregate			Average
	Stock	Exercise		Intrinsic		Restricted	Grant-Date
	Options	Price		Value		Stock	Fair Value
Outstanding (stock options); non-vested (restricted stock) at December 31, 2021	46,500	$	91.04	$	1,788	18,146	$	121.26
Granted	9,900		133.18		75	19,601		141.11
Exercised (stock options); vested (restricted stock)	(2,400)		50.11		157	(18,589)		120.25
Forfeited	—		—		—	(289)		117.84
Outstanding (stock options); non-vested (restricted stock) at December 31, 2022	54,000	$	100.58	$	2,170	18,869	$	132.73
Exercisable at December 31, 2022	44,000	$	92.12	$	2,170	n/a		n/a

	2022		2021		2020
Weighted-average fair value of stock options granted during the year	$	49.76	$	42.10	$	31.30
Weighted-average remaining contractual life for stock options in years		6.87		6.85		6.74
Total fair value of stock options vested during the year	$	287	$	321	$	310
Total intrinsic value of stock options exercised during the year	$	157	$	647	$	1,128
Total fair value of restricted stock vested during the year	$	2,235	$	2,096	$	1,612

There were 10,000 non-vested stock options at December 31, 2022, and the weighted-average remaining contractual life of the outstanding and exercisable stock options at such date was 6.87 years. The total compensation cost not yet recognized for restricted stock at December 31, 2022 was $2,168, which will be recognized over the weighted average of 1.07 years.

The fair value for the stock options was estimated at the date of grant using a lattice-based option valuation model, with the following weighted-average assumptions for the 2022, 2021 and 2020 grants: risk-free interest rates of 2.92% to 3.94% (weighted average 3.74%) in 2022, 0.86% to 1.26% (weighted average 1.19%) in 2021 and 0.37% to 0.53% (weighted average 0.42%) in 2020; a dividend yield of 0.57% to 0.73% (weighted average 0.62%) in 2022, 0.46% to 0.50% (weighted average 0.49%) in 2021, 0.56% to 0.80% (weighted average 0.64%) in 2020; and a volatility factor of .374 to .385 (weighted average .382) in 2022, .366 to .373 (weighted average .371) in 2021 and .346 to .356 (weighted average .354) in 2020, based on the daily per-share closing prices for five years preceding the date of issuance. In

addition, the fair value of these options was estimated based on an expected life of five years. The fair value of restricted stock is based on the closing per-share price of the Company’s common stock on the date of grant.