STOCK AND DEBT REPURCHASE PROGRAM

6 Months Ended

Jun. 30, 2011

STOCK AND DEBT REPURCHASE PROGRAM

STOCK AND DEBT REPURCHASE PROGRAM

7. STOCK AND DEBT REPURCHASE PROGRAM

On February 1, 2011 our Board of Directors approved a $10 million increase to our previously-announced debt repurchase program. With this increase we were authorized to repurchase up to $15 million of our outstanding Senior Notes. Under this repurchase program, we did not retire any of our outstanding Senior Notes during the three months ended June 30, 2011. We retired $10.1 million of our outstanding Senior Notes during the six months ended June 30, 2011 held by Chou Associates Management Inc. (“Chou”) or an affiliate of Chou for $10.1 million in cash. The repurchase was for 100% of the Senior Notes that were held by Chou. Chou is the beneficial owner of more than 5% of our common stock. We retired $9.3 million during the three and six months ended June 30, 2010 for $9.0 million cash, resulting in a gain of $204,000 on early extinguishment of debt, net of $66,000 of associated unamortized discount. As of June 30, 2011 and December 31, 2010, $24.5 million and $34.5 million of the Senior Notes, net of debt discount remained outstanding, respectively.

During the three months ended June 30, 2011 and 2010, we withheld from vesting restricted stock awards a total of 777 and 1,000 shares of our common stock for $11,000 and $26,000 respectively. For the six months ended June 30, 2011 and 2010, we withheld from vesting restricted stock awards a total of 98,000 and 63,000 shares of our common stock for $1.6 million and $818,000 respectively. The shares withheld represented the minimum tax withholdings upon the vesting of those restricted stock award grants to satisfy the minimum tax withholdings owed by the grantee of the restricted stock award grant. None of these shares were repurchased in the open market.