Stock-Based Compensation

9 Months Ended

Sep. 30, 2012

Stock-Based Compensation

Stock-Based Compensation

(12)  Stock-Based Compensation

Accounting for stock-based compensation requires that the cost resulting from all stock-based payments be recognized in the financial statements based on the grant-date fair value of the award. The Company’s stock-based compensation expense consists of stock options and restricted stock awards. All stock option and restricted stock grants are amortized ratably over the requisite service periods of the underlying awards, which are generally the vesting periods. The Company recognizes share-based compensation expense only for those shares that are expected to vest, based on the Company’s historical experience and future expectations. We recognized stock-based compensation cost of approximately $0.3 million and $0.8 million for the three- and nine-month month periods ended September 30, 2012, respectively, and $0.2 million and $0.6 million for the three- and nine-month month periods ended September 30, 2011, respectively.

Stock Options

A summary of the Company’s stock options and related activity as of and for the nine months ended September 30, 2012 is presented below:

				Weighted
				Average
		Weighted		Remaining
		Average		Contractual	Aggregate
		Exercise		Term	Intrinsic
	Shares	Price		(Years)	Value
					(in thousands)
Options outstanding at January 1, 2012	722,400	$	8.06
Granted	—	—
Exercised	—	—
Expired	—	—
Forfeited	—	—
Options outstanding at September 30, 2012	722,400	$	8.06	4.70	$	555
Options exercisable at September 30, 2012	656,150	$	8.17	4.48	$	480

As of September 30, 2012, there was approximately $0.3 million of total unrecognized compensation cost related to unvested stock options to be recognized over a weighted average period of 0.9 years.

Restricted Stock Awards

A summary of the Company’s restricted stock awards and related activity as of and for the nine months ended September 30, 2012 is presented below:

	Number of
	Shares
Shares outstanding at December 31, 2011	96,126
Shares granted	165,607
Shares vested	(50,212	)
Shares outstanding at September 30, 2012	211,521

In March 2011, the Company granted (i) 27,258 shares of restricted stock awards to non-employee directors that cliff-vest one year from the grant date; and (ii) 68,868 shares of restricted stock awards to executive management that time-vest over a three-year period. The weighted-average grant-date fair value of the awards was $6.58 — which was based on the fair value of our common stock on the respective grant dates. In March 2012, the Company granted (i) 26,250 shares of restricted stock awards to non-employee directors that cliff-vest one year from the grant date; and (ii) 139,357 shares of restricted stock awards to executive management that time-vest over a three-year period. The weighted-average grant-date fair value of the awards was $8.78 — which was based on the fair value of our common stock on the respective grant dates. Holders of the restricted stock awards have voting rights, and vesting of the grants is based on their continued service. Sales of the restricted stock are prohibited until the awards vest. As of September 30, 2012, there was approximately $1.3 million of total unrecognized compensation cost related to unvested restricted stock awards to be recognized over a weighted average period of 2.1 years.