Income Taxes

6 Months Ended

Jun. 30, 2012

Income Taxes [Abstract]

Income Taxes

4. Income Taxes.   For the three and six months ended June 30, 2012, the Company recorded an income tax benefit of $211,000 and $881,000, or 29.8% of loss before taxes. This income tax benefit is comprised of federal and state taxes in each period. The primary differences between the Company's June 30, 2012 effective tax rate and the statutory federal rate are nondeductible meals and entertainment and expense related to equity compensation.

For the three and six months ended June 30, 2011, an income tax provision (benefit) was recorded of ($444,000) and $33,507,000, or 39.7% and 38.6%, respectively, of income (loss) before taxes. This income tax provision (benefit) was comprised of federal and state taxes. The primary difference between the Company's June 30, 2011 effective tax rate and the statutory federal rate was due to state income taxes.

As of June 30, 2012 and December 31, 2011, the Company has unrecognized tax benefits totaling $424,000 excluding interest, which relates to state nexus issues. The amount of the unrecognized tax benefits, if recognized, that would affect the effective income tax rates of future periods is $424,000. Due to the current statute of limitations regarding the unrecognized tax benefits, the unrecognized tax benefits and associated interest is not expected to change significantly in 2012.