Note 6 - Stock-based Compensation

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

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

6.

      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 (as defined below). The following table presents our stock-based compensation expense and related income tax benefits for the years ended

December

31,

2016,

2015

and

2014

(in thousands):

	Year Ended December 31,
	2016			2015			2014
Stock-based compensation expense, gross	$	5,099		$	4,019		$	5,012
Income tax benefit at our statutory rate associated with stock-based compensation		(1,989	)		(1,567	)		(1,955	)
Stock-based compensation expense, net	$	3,110		$	2,452		$	3,057

2007

Long Term Incentive Plan

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 common stock or Class A 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,

2016,

3.9

 million shares of our common stock and

0.3

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,

2016,

we granted

218,452

shares of restricted common stock to certain employees, of which

72,816

shares vested on

January

31,

2017;

72,816

shares will vest on

January

31,

2018;

and

72,820

shares will vest on

January

31,

2019.

Also during the year ended

December

31,

2016,

we granted

166,677

shares of restricted Class A common stock to

one

employee, of which

55,559

shares vested on

January

31,

2017,

with the remainder to vest in equal amounts on each of

January

31,

2018

and

2019.

During the year ended

December

31,

2016,

we also granted

19,048

shares of restricted common stock to certain non-employee directors, which shares vested on

January

31,

2017.

Also the year ended

December

31,

2016,

we granted

51,935

shares of restricted Class A common stock to certain non-employee directors, which shares vested on

January

31,

2017.

During the year ended

December

31,

2015,

we granted

150,308

shares of restricted common stock to our employees, of which

50,102

shares vested on

January

31,

2016;

50,100

shares vested on

January

31,

2017;

and

50,106

shares will vest on

January

31,

2018.

Also during the year ended

December

31,

2015,

we granted

229,322

shares of restricted Class A common stock to our employees, of which

76,442

shares vested on each of

January

31,

2016

and

2017;

and

76,438

shares will vest on

January

31,

2018.

Also during the year ended

December

31,

2015,

we granted

58,191

shares of restricted Class A common stock to our non-employee directors, all of which vested on

January

31,

2016.

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 vested on each of

January

17,

2016

and

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 vested on each of

January

17,

2016

and

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.

A summary of restricted common stock activity for the years ended

December

31,

2016,

2015

and

2014

under our

2007

Incentive Plan is as follows:

	Year Ended December 31,
	2016					2015					2014
				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		337,506		$	9.57		385,056		$	9.09		274,838		$	4.43
Granted		237,500			12.88		150,308			10.27		312,961			11.78
Vested		(178,973	)		8.46		(197,858	)		9.16		(202,743	)		6.93
Outstanding - end of period		396,033		$	12.06		337,506		$	9.57		385,056		$	9.09

A summary of restricted Class A common stock activity for the years ended

December

31,

2016,

2015

and

2014

under our

2007

Incentive Plan is as follows:

	Year Ended December 31,
	2016					2015					2014
				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 - Class A common:
Outstanding - beginning of period		374,693		$	9.46		204,473		$	9.81		-		$	-
Granted		218,612			11.25		287,513			9.37		236,294			9.80
Vested		(178,223	)		10.04		(117,293	)		9.85		(31,821	)		9.75
Outstanding - end of period		415,082		$	10.15		374,693		$	9.46		204,473		$	9.81

At

December

31,

2016,

2015

and

2014,

we had

274,746

stock options outstanding. At

December

31,

2016,

2015

and

2014,

the number of stock options that were exercisable were

274,746,

206,604

and

137,376,

respectively. The exercise price of all outstanding stock options is

$1.99

per share. The aggregate intrinsic value of our outstanding stock options was

$2.2

million based on the closing market price of our common stock on

December

31,

2016.

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,

2016,

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,

2016,

2015

and

2014,

we did not grant any restricted stock awards under the Directors’ Restricted Stock Plan.

As of

December

31,

2016,

we had

$2.3

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

1.4

 years.