Stock-Based Compensation

9 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

STOCK-BASED COMPENSATION

Share-based compensation cost for restricted stock grants is measured based on the closing fair market value of our common stock on the date of grant. We recognize share-based compensation cost over the award’s requisite service period on a straight-line basis for time-based restricted stock grants.

We granted zero and 38,156 restricted stock awards to management and selected employees during the three and nine months ended September 30, 2014, respectively. The year to date restricted stock awards had a weighted-average grant date fair value of $15.24 per share. During the nine months ended September 30, 2014, 7,401 shares were forfeited. We granted 4,277 and 8,177 restricted stock awards during the three and nine month periods ended September 30, 2013, which had a weighted-average grant date fair value of $8.77 and $7.34 per share, respectively.

We also granted 65,000 shares to the non-employee members of the Board during the three and nine months ended September 30, 2014, which had a weighted average grant date fair value of $13.05 per share.

The following table shows a summary of the shares awarded during the nine month period ended September 30, 2014:

	Number of Shares	Weighted Average Grant Date Fair Value
Outstanding as of December 31, 2013	80,068	$	5.56
Granted	103,156	13.86
Forfeited	7,401	7.02
Vested	19,485	6.13
Outstanding as of September 30, 2014	156,338	$	10.90

We had approximately $700,000 and $385,000 of unrecognized stock compensation expense on September 30, 2014 and 2013, respectively, related to non-vested employee compensation granted, which we expect to recognize ratably over the next three years. We recognized $88,000 and $40,000 of compensation expense during the three months ended September 30, 2014 and 2013, respectively, and $209,000 and $96,000 of compensation expense during the nine months ended September 30, 2014 and 2013, respectively.

We had approximately $826,000 of unrecognized director compensation expense on September 30, 2014, related to non-vested director compensation granted, which we expect to recognize ratably until the 2015 annual meeting of stockholders. We recognized $23,000 of director compensation expense during the three and nine months ended September 30, 2014.