Stock Compensation

12 Months Ended

Dec. 31, 2012

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

Stock Compensation

Stock Compensation

The Company’s 2008 Incentive Stock Plan (the “2008 Plan”) authorizes the Compensation Committee of the Board of Directors to issue up to 3,000,000 shares of various types of stock based awards including stock options, restricted stock and stock appreciation rights to key employees and directors. In general, options granted and outstanding vest over a 3 to 5 year period and expire 10 years from the date of grant.

The following tables summarize stock option activity in the past three years:

Options granted in 2012, 2011 and 2010:

Year	Options	Exercise Price
2012	323,950	$12.96
2011	365,025	$10.10 to $10.28
2010	345,600	$9.97 to $12.46

Options exercised in 2012, 2011 and 2010:

Year	Options	Exercise Price
2012	288,794	$8.00 to $12.55
2011	59,031	$8.00 to $12.55
2010	5,650	$	8.00

In addition, options totaling 113,913, 153,426 and 175,909 expired or were forfeited during the years ended December 31, 2012, 2011 and 2010, respectively.

Options outstanding and exercisable at December 31, 2012, 2011 and 2010 were as follows:

Year	Outstanding	Range of Exercise Prices	Exercisable	Weighted Average Exercise Price
2012	1,919,021	$8.00 to $18.62	1,355,112	$	11.63
2011	1,997,778	$8.00 to $18.62	1,429,040	$	11.75
2010	1,845,210	$8.00 to $18.62	1,191,865	$	12.21

Stock compensation expense reduced income before taxes approximately $2,708, $2,595 and $2,326 for the years ended December 31, 2012, 2011, and 2010, respectively. These expenses are included in selling, general and administrative expenses in the accompanying Consolidated Statements of Income (Loss). Total unrecognized compensation cost related to non-vested share based compensation arrangements at December 31, 2012 was approximately $3.8 million, which will be recognized over the next three to four years.

The fair value of options granted is estimated using an option pricing model based on assumptions set forth in the following table. The Company uses historical data to estimate employee exercise and departure behavior. The risk free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant and through the expected term. The dividend yield is based on the Company’s historical dividend yield. The expected volatility is derived from historical volatility of the Company’s shares and those of similar companies measured against the market as a whole. In 2012, the Company used the binomial lattice option pricing model based on assumptions set forth in the following table. There is no material difference in the valuation of these options using prior models.

	2012			2011			2010
Risk free interest rate	2.00		%	3.79		%	3.09		%
Expected dividend yield	2.20		%	2.90		%	2.86		%
Expected life of award (years)	5.4			6.0			5.2
Expected volatility	50.00		%	50.72		%	48.77		%
Fair value per option share	$	4.93		$	3.69		$	3.01

The following table provides a summary of stock option activity for the period ended December 31, 2012:

	Shares		Average Exercise Price		Weighted Average Life	Aggregate Intrinsic Value
Outstanding at December 31, 2011	1,997,778		$	11.33
Options Granted	323,950		12.96
Options Exercised	(288,794	)	16.22
Cancelled or Forfeited	(113,913	)	11.67
Outstanding at December 31, 2012	1,919,021		$	11.63	6.30 years	$	6,755
Exercisable at December 31, 2012	1,355,112		$	11.63	5.31 years	$	4,770

The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option. The intrinsic value of stock options exercised in 2012, 2011 and 2010 was $1,502, $117 and $14, respectively.

The following table provides a summary of restricted stock activity for the period ended December 31, 2012:

	Shares		Average Grant-Date Fair Value
Unvested shares at December 31, 2011	288,500
Granted	165,495		13.79
Vested	(40,500	)	—
Forfeited	(50,370	)	10.73
Unvested shares at December 31, 2012	363,125		$	11.01

The restricted stock awards are rights to receive shares of common stock, subject to forfeiture and other restrictions, which generally vest over a 3 to 4 year period. Restricted shares are considered to be non-vested shares under the accounting guidance for share-based payment and are not reflected as issued and outstanding shares until the restrictions lapse. At that time, the shares are released to the grantee and the Company records the issuance of the shares. Restricted shares are valued on the grant date based on the price issued. At December 31, 2012, shares of restricted stock had vesting periods up through December 2015.