Stock-based Compensation

9 Months Ended

Sep. 30, 2011

Stock-based Compensation [Abstract]

Stock-based Compensation

6. Stock-based Compensation

The Company’s stock-based compensation plans consist of its 2006 Long-Term Incentives Plan (the “2006 LTIP”) and its 2004 Stock Option Plan. On April 28, 2011, the Company’s stockholders approved an amendment to the 2006 LTIP to increase the maximum number of shares available for grant by 5,000,000 shares to 9,641,374. As of September 30, 2011, there were 5,043,569 shares available for grant under the 2006 LTIP and no shares available for grant under the 2004 Stock Option Plan.

For the three months ended September 30, 2011 and 2010, the Company recorded stock-based compensation expense in continuing operations of $406 and $606, respectively. For the three months ended September 30, 2011 and 2010, the Company capitalized stock-based compensation of $15 and $11, respectively. For the nine months ended September 30, 2011 and 2010, the Company recorded stock-based compensation expense in continuing operations of $1,065 and $1,630, respectively. For the nine months ended September 30, 2011 and 2010, the Company capitalized stock-based compensation of $44 and $25, respectively. The components of the Company’s stock-based compensation expense are presented below:

	Three months ended				Nine months ended
	September 30,				September 30,
	2011		2010		2011		2010
Stock appreciation rights	$	277	$	466	$	762	$	1,232
Restricted stock units		129		140		303		398
Total	$	406	$	606	$	1,065	$	1,630

As of September 30, 2011, the Company had unrecognized compensation costs for all share-based payment arrangements totaling $1,733.

Time-Based Stock Appreciation Rights

During the nine months ended September 30, 2011, the Company granted 395,000 time-based SARs, which vest through May 2014. The weighted-average grant date fair value of these SARs was $1.73 per share.

A summary of the Company’s time-based SARs for the nine months ended September 30, 2011 is as follows:

						Weighted-Average
						Remaining		Aggregate
	Number of			Weighted-Average		Contractual		Intrinsic Value
	Shares			Exercise Price		Term (years)		(In thousands)
Outstanding at January 1, 2011		2,000,667		$	4.07
Granted		395,000			2.81
Exercised		(4,000	)		2.46
Forfeited or expired		—			—
Outstanding at September 30, 2011		2,391,667		$	3.86		7.67	$	119
Exercisable at September 30, 2011		1,432,334		$	4.72		6.81	$	40
Vested and expected to vest at September 30, 2011		2,391,667		$	3.86		7.67	$	119

For the three months ended September 30, 2011 and 2010, the Company recorded stock-based compensation expense in continuing operations of $167 and $359 relating to these SARs, respectively. For the nine months ended September 30, 2011 and 2010, the Company recorded stock-based compensation expense in continuing operations of $414 and $986 relating to these SARs, respectively. As of September 30, 2011, $1,214 of total unrecognized compensation cost related to these SARs is expected to be recognized through May 2014.

The intrinsic value of the SARs exercised was $4 for the nine months ended September 30, 2011.

Performance-Based Stock Appreciation Rights

During the nine months ended September 30, 2011, the Company granted 393,666 performance-based SARs for 2011 financial and operational targets, which are expected to vest in the first quarter of 2012. As of September 30, 2011, the Company estimates that 85% of the performance targets will be achieved. The weighted-average grant date fair value of these SARs was $2.00 per share.

A summary of the Company’s performance-based SARs for the nine months ended September 30, 2011 is as follows:

						Weighted- Average
						Remaining		Aggregate
	Number of			Weighted-Average		Contractual		Intrinsic Value
	Shares			Exercise Price		Term (years)		(In thousands)
Outstanding at January 1, 2011		567,146		$	6.00
Granted		393,666			3.25
Exercised		(19,500	)		2.30
Forfeited or expired		(89,013	)		2.45
Outstanding at September 30, 2011		852,299		$	5.18		8.16	$	18
Exercisable at September 30, 2011		458,634		$	6.85		6.93	$	18
Vested and expected to vest at September 30, 2011		794,324		$	5.31		8.06	$	23

For the three months ended September 30, 2011 and 2010, the Company recorded stock-based compensation expense in continuing operations of $110 and $107 relating to these SARs, respectively. For the nine months ended September 30, 2011 and 2010, the Company recorded stock-based compensation expense in continuing operations of $348 and $246 relating to these SARs, respectively. As of September 30, 2011, $369 of total unrecognized compensation cost related to these SARs is expected to be recognized through the first quarter of 2012.

The intrinsic value of the SARs exercised was $20 for the nine months ended September 30, 2011.

The fair value of each time and performance SAR award is estimated on the date of grant using the Black-Scholes option pricing model with the assumptions described below for the periods indicated. The expected volatility was based on an average of the Company’s historical volatility over the expected terms of the SAR awards and the comparable publicly traded companies historical volatility. The Company uses the “simplified” method to determine the expected terms of SARs due to an insufficient history of exercises. Estimated forfeitures were based on voluntary and involuntary termination behavior as well as analysis of actual forfeitures. The risk-free interest rate was based on the U.S. Treasury yield curve at the time of the grant over the expected term of the SAR grants.

	Nine months ended
	September 30,
	2011	2010
Risk-free interest rate	1.00% to 2.34%	2.27% and 2.65%
Expected life (years)	5.50 and 6.0	5.5 and 6.0
Estimated volatility factor	64.15% to 74.34%	85.95% and 83.67%
Expected dividends	None	None

Time-based Restricted Stock Units

During the nine months ended September 30, 2011, the Company granted 120,000 time-based RSUs, which vest in January 2012.

A summary of the Company’s time-based RSUs for the nine months ended September 30, 2011 is as follows:

				Weighted-Average Grant
	Shares			Date Fair Value
Balance at January 1, 2011		156,624		$	2.90
Granted		120,000			2.97
Vested		(118,290	)		3.09
Forfeited or expired		—			—
Balance at September 30, 2011		158,334		$	2.81

For the three months ended September 30, 2011 and 2010, the Company recorded stock-based compensation expense in continuing operations of $129 and $140 related to these RSUs, respectively. For the nine months ended September 30, 2011 and 2010, the Company recorded stock-based compensation expense in continuing operations of $303 and $398 related to these RSUs, respectively. As of September 30, 2011, $150 of total unrecognized compensation cost related to these RSUs is expected to be recognized through July 2012.

The fair value of the time-based RSU awards is based upon the closing stock price of the Company’s common stock on the date of grant.

2004 Stock Option Plan

A summary of the status of the Company’s stock options as of September 30, 2011 is as follows:

					Weighted- Average
					Remaining		Aggregate
	Number of		Weighted-Average		Contractual		Intrinsic Value
	Shares		Exercise Price		Term (years)		(In thousands)
Outstanding at January 1, 2011		757,828	$	2.97
Granted		—		—
Exercised		—		—
Forfeited or expired		—		—
Outstanding at September 30, 2011		757,828	$	2.97		2.46	$	89
Exercisable at September 30, 2011		757,828	$	2.97		2.46	$	89
Vested and expected to vest at September 30, 2011		757,828	$	2.97		2.46	$	89