Note 7 - Stock-based Compensation

12 Months Ended

Dec. 31, 2014

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

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

7.     Stock-Based Compensation

We recognize compensation expense for stock-based payment awards made to our employees and directors, including stock options and restricted shares under our 2007 Long-Term Incentive Plan, as amended (the “2007 Incentive Plan”) and our Directors’ Restricted Stock Plan. The following table presents our stock-based compensation expense and related income tax benefits for the years ended December 31, 2014, 2013 and 2012 (in thousands):

	Year Ended December 31,
	2014			2013			2012
Stock-based compensation expense, gross	$	5,012		$	1,974		$	878
Income tax benefit at our statutory rate associated with stock-based compensation		(1,955	)		(770	)		(342	)
Stock-based compensation expense, net	$	3,057		$	1,204		$	536

2007 Long Term Incentive Plan

The 2007 Long Term Incentive Plan, as amended (the “2007 Incentive Plan”), provides for the grant of incentive stock options, nonqualified stock options, restricted stock awards, stock appreciation rights, and performance awards to acquire shares of our Class A common stock or common stock, or the receipt of other awards based on our performance, to our employees and non-employee directors.

We recognize the fair value of stock options granted on the date of grant as compensation expense, and such expense is amortized over the vesting period of the stock option. The 2007 Incentive Plan allows us to grant share-based awards for up to 6.0 million shares of stock, with not more than 1.0 million out of that 6.0 million being Class A common stock and the remaining shares being common stock. As of December 31, 2014, 4.5 million shares of our common stock and 0.8 million shares of our Class A common stock were available for issuance under the 2007 Incentive Plan. Shares of common stock and Class A common stock underlying outstanding options and performance awards are counted as issued under the 2007 Incentive Plan. Under the 2007 Incentive Plan, the options granted typically vest after a two- to four-year period and expire three to eight years after vesting. However, options will vest immediately upon a “change in control” as such term is defined in the 2007 Incentive Plan. All options have been granted with purchase prices that equal the market value of the underlying stock at the close of business on the date of the grant.

During the year ended December 31, 2014, we granted 312,961 shares of restricted common stock to our employees, of which 68,991 shares vested on the date of grant; 127,316 shares vested on January 17, 2015; and 58,327 shares will vest on each of January 17, 2016 and January 17, 2017. Also during the year ended December 31, 2014, we granted 194,413 shares of restricted Class A common stock to an employee, of which 31,821 shares vested on the date of grant; 75,412 shares vested on January 17, 2015; and 43,590 shares will vest on each of January 17, 2016 and January 17, 2017. Also during the year ended December 31, 2014, we granted 41,881 shares of restricted Class A common stock to our non-employee directors, all of which vested on January 1, 2015.

During the year ended December 31, 2013, we granted 318,852 shares of restricted common stock to our employees, of which 107,224 shares vested in the year ended December 31, 2013; 70,542 shares vested on March 19, 2014; and 70,542 will vest on each of March 19, 2015 and March 19, 2016. During the year ended December 31, 2013, we granted 63,210 shares of restricted common stock to our non-employee directors. These shares vested on January 1, 2014.

During the year ended December 31, 2012, we granted 432,396 shares of restricted common stock to our executive officers and non-employee directors, and we also granted options to acquire 359,568 shares of our common stock to our executive officers. We later modified the terms of these shares of restricted stock. As a result of the modification, these shares of restricted common stock fully vested on December 14, 2012 and $0.4 million in stock-based compensation expense was recognized during the year ended December 31, 2012 that otherwise would have been recognized in later periods. Had these agreements not been modified, these shares of restricted common stock would have fully vested by April 2, 2015. The modifications affected the restricted stock granted to four executive officers and nine non-employee directors.

Directors’ Restricted Stock Plan

On May 14, 2003, our stockholders approved a restricted stock equity incentive plan for our Board of Directors (the “Directors’ Restricted Stock Plan”). We have reserved 1.0 million shares of our common stock for issuance under this plan and, as of December 31, 2014, there were 770,000 shares available for future award. Under the Directors’ Restricted Stock Plan, each director can be awarded up to 10,000 shares of restricted stock each calendar year. During the years ended December 31, 2014, 2013 and 2012, we did not grant any restricted stock awards under the Directors’ Restricted Stock Plan.

A summary of restricted stock activity related to our common stock for the years ended December 31, 2014, 2013 and 2012 under our 2007 Incentive Plan is as follows:

	Year Ended December 31,
	2014					2013					2012
				Weighted-					Weighted-					Weighted-
				Average					Average					Average
	Number			Grant Date		Number			Grant Date		Number			Grant Date
	of			Fair Value		of			Fair Value		of			Fair Value
	Shares			Per Share		Shares			Per Share		Shares			Per Share
Restricted stock - common:
Outstanding - beginning of period		274,838		$	4.43		-		$	-		-		$	-
Granted		312,961			11.78		382,062			5.20		432,396			1.65
Vested		(202,743	)		6.93		(107,224	)		7.16		(432,396	)		1.65
Outstanding - end of period		385,056		$	9.09		274,838		$	4.43		-		$	-

A summary of restricted stock activity related to our Class A common stock for the years ended December 31, 2014, 2013 and 2012 under our 2007 Incentive Plan is as follows:

	Year Ended December 31,
	2014					2013				2012
				Weighted-				Weighted-					Weighted-
				Average				Average					Average
	Number			Grant Date		Number		Grant Date		Number			Grant Date
	of			Fair Value		of		Fair Value		of			Fair Value
	Shares			Per Share		Shares		Per Share		Shares			Per Share
Restricted stock - common:
Outstanding - beginning of period		-		$	-		-	$	-		10,000		$	4.94
Granted		236,294			9.80		-		-		-			-
Vested		(31,821	)		9.75		-		-		(10,000	)		4.94
Outstanding - end of period		204,473		$	9.81		-	$	-		-		$	-

A summary of stock option activity related to our common stock for the years ended December 31, 2014, 2013 and 2012 under our 2007 Incentive Plan is as follows:

	Year Ended December 31,
	2014				2013					2012
	Number of Shares Underlying Options		Weighted Average Exercise Price		Number of Shares Underlying Options			Weighted Average Exercise Price		Number of Shares Underlying Options			Weighted Average Exercise Price
Common stock:
Options outstanding - beginning of period		274,746	$	1.99		1,316,068		$	5.98		1,002,350		$	7.50
Options granted		-		-		-			-		359,568			1.99
Options exercised		-		-		(119,822	)		2.34		-			-
Options forfeited		-		-		-			-		(8,700	)		5.32
Options expired		-		-		(921,500	)		7.64		(37,150	)		8.72
Options outstanding - end of period		274,746	$	1.99		274,746		$	1.99		1,316,068		$	5.98
Options exercisable at end of period		137,376	$	1.99		68,688		$	1.99		956,500		$	7.48

The aggregate intrinsic value of outstanding stock options was $2.5 million based on the closing market price of our common stock on December 31, 2014.

As of December 31, 2014, we had $1.7 million of total unrecognized compensation expense related to all non-vested share based compensation arrangements. The expense is expected to be recognized over a period of 2.0 years.