Share Based Compensation

3 Months Ended

Mar. 31, 2013

Share Based Compensation [Abstract]

Share Based Compensation

9.  Share Based Compensation

We maintain share based payment plans that include a non-employee director stock purchase plan and a long-term incentive plan that permits the issuance of share based compensation, including stock options and non-vested share awards. The long-term incentive plan, which is shareholder approved, permits the grant of additional share based awards for up to 0.1 million shares of common stock as of March 31, 2013. At our annual shareholder metting held April 23, 2013, our shareholders approved an amendment to this plan authorizing the issuance of an additional 0.5 million shares. The non-employee director stock purchase plan permits the issuance of additional share based payments for up to 0.3 million shares of common stock as of March 31, 2013. Share based awards and payments are measured at fair value at the date of grant and are expensed over the requisite service period. Common shares issued upon exercise of stock options come from currently authorized but unissued shares.

During the first quarter's of 2013 and 2012 our president's annual salary was increased and a portion of those increases was to be paid in the form of common stock.  The amounts to be paid in common stock (also referred to as "salary stock") were $0.020 million and $0.015 million during 2013 and 2012, respectively.  During the first quarter of 2011, pursuant to a management transition plan, our former chief executive officer's annual salary was increased by $0.2 million effective January 1, 2011 through December 31, 2012. This increase was paid entirely in the form of salary stock. These shares were issued each pay period and vested immediately.

Our directors have elected to receive at least a portion of their quarterly cash retainer fees in the form of common stock (either on a current basis or on a deferred basis pursuant to the non-employee director stock purchase plan referenced above). Shares equal in value to that portion of each director's quarterly cash retainer are issued each quarter and vest immediately. We issued 0.02 million shares and 0.08 million shares to directors during the first quarter of 2013 and 2012, respectively and expensed their value during those same periods.

Total compensation expense (recovery) recognized for stock option grants, non-vested common stock grants, restricted stock unit grants and salary stock was $0.1 million and $(0.1) million during the three months ended March 31, 2013 and 2012 respectively.  The recovery during the three month period ended March 31, 2012 related to a decrease in our estimate of the amount of restricted stock grants that would actually vest.  The corresponding tax benefit relating to this expense was zero for each period. Total expense recognized for non-employee director share based payments was $0.1 million in each three month period ended March 31, 2013 and 2012, respectively. The corresponding tax benefit relating to this expense was zero for each period.

At March 31, 2013, the total expected compensation cost related to non-vested stock options, restricted stock and restricted stock unit awards not yet recognized was $1.1 million.  The weighted-average period over which this amount will be recognized is 2.5 years.

A summary of outstanding stock option grants and related transactions follows:

						Weighted-
						Average
				Average		Remaining		Aggregated
	Number of			Exercise		Contractual		Intrinsic
	Shares			Price		Term (Years)		Value
								(In thousands)
Outstanding at January 1, 2013		275,933		$	4.46
Granted		-
Exercised		(5,834	)		1.92
Forfeited		(1,166	)		2.39
Expired		(1,940	)		11.53
Outstanding at March 31, 2013		266,993		$	4.48		8.34	$	1,434
Vested and expected to vest at
March 31, 2013		251,892		$	4.60		8.29	$	1,344
Exercisable at March 31, 2013		75,703		$	9.71		6.77	$	277

A summary of outstanding non-vested restricted stock and stock units and transactions follows:

				Weighted-
				Average
	Number			Grant Date
	of Shares			Fair Value
Outstanding at January 1, 2013		375,416		$	6.21
Granted		-
Vested		(14,636	)		76.30
Forfeited		-
Outstanding at March 31, 2013		360,780		$	3.37

Certain information regarding options exercised during the periods follows:

	Three Months Ended
	March 31,
	2013		2012
	(In thousands)
Intrinsic value	$	15	$	-
Cash proceeds received	$	11	$	-
Tax benefit realized	$	-	$	-