Note 19 - Stock-Based Employee Compensation

12 Months Ended

Dec. 31, 2011

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

NOTE 19  - STOCK-BASED EMPLOYEE COMPENSATION:

We account for our stock based employee compensation plans in accordance with ASC 718. ASC 718 addresses the accounting for share based payment transactions in which an enterprise receives employee services in exchange for equity instruments of the enterprise or liabilities that are based on the fair value of the enterprise’s equity instruments or that may be settled by the issuance of such equity instruments. ASC 718 requires that such transactions be accounted for using a fair value based method.

In considering the fair value of the underlying stock when we grant options or issue restricted stock, we consider several factors including the fair values established by market transactions. Stock-option based compensation includes significant estimates and judgments of when stock options might be exercised, forfeiture rates and stock price volatility. The timing of option exercises is out of our control and depends upon a number of factors including our market value and the financial objectives of the option holders. These estimates can have a material impact on our stock compensation expense but will have no impact on our cash flows.

We currently have three stock-based plans which have been previously approved by the stockholders under which a total of 2,650,000 shares, subject to adjustment, of common stock were reserved for issuance of incentive and non-incentive stock options and stock grants.  Under these plans, stock awards may be granted to employees, directors and such other persons as the Board of Directors determines will contribute to our success. Vesting periods are set by the Board of Directors and stock options are generally exercisable during a ten-year period following the date of award, with stock grants generally vesting in three to five years. The Board of Directors has the authority to accelerate the maturity of any stock option or grant at its discretion, and all stock options and grants have anti-dilution provisions.  Under all of our plans, options expire three months from the date of the holder’s termination of employment or twelve months in the event of disability or death.  As of December 31, 2011, there were 851,443 shares available for granting under these plans. We recognize compensation cost for stock awards over the vesting period based on the fair value of the award as of the date of the grant.

The following table sets forth information about the weighted-average fair value of options granted during the periods below, and the assumptions used for each grant:

	For the years ending December 31,
	2011		2010			2009
Fair Value of Options		N/A	$	5.11			N/A
Dividend yield		N/A		0.0	%		N/A
Expected volatility		N/A		57.4	%		N/A
Risk free interest rate		N/A		3.9	%		N/A
Expected term in years		N/A		5.0			N/A

Our dividend yield assumptions on the underlying common stock upon which the options were granted anticipate that all earnings will be retained for use in the operation and expansion of the company and no dividends will be paid to shareholders. Our expected volatility is based on historic trading patterns of our common stock. The risk free interest rate is based on the yield of short term U.S. Treasury securities in effect at the time of the grant. The expected term of the options reflects our historic exercise and forfeiture experience with similar option grants.

Stock-based compensation activity under these plans is summarized below:

	Number of shares of  Common Stock underlying options			Weighted Average exercise price
Options outstanding at December 31, 2008		227,016		$	5.78
Granted		—			—
Exercised		(21,331	)	$	1.72
Options outstanding at December 31, 2009		205,685		$	5.78
Granted		81,117		$	8.28
Exercised		(19,595	)	$	2.03
Cancelled		(19,221	)	$	8.14
Options outstanding at December 31, 2010		247,986		$	6.96
Granted		122,366		$	8.66
Exercised		(36,597	)	$	2.52
Cancelled		(169,212	)	$	7.55
Options outstanding at December 31, 2011		164,543

Options exercisable at:

December 31, 2009	119,771	$	4.64
December 31, 2010	132,137	$	5.95
December 31, 2011	119,948	$	7.37

As of December 31, 2011, stock options outstanding and exercisable by price range were as follows:

OPTIONS OUTSTANDING							OPTIONS EXERCISABLE
Range of Exercise Prices	Outstanding As of 12/31/2011		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Exercisable As of 12/31/2011		Weighted Average Exercise Price
$0.00 - $2.50		—		—	$	—		—	$	—
$2.56 - $5.00		21,648		0.2	$	2.94		21,648	$	2.94
$5.01 - $20.00		142,895		5.1	$	8.25		98,300	$	8.34
		164,543		4.5	$	7.55		119,948	$	7.37

The total intrinsic value of options exercised during the years ended December 31, 2011, 2010 and 2009 was approximately $240,000, $127,000 and $125,000 respectively.The aggregate intrinsic value of options outstanding and exercisable as of December 31, 2011, 2010 and 2009 was approximately $205,000, $338,000, and $354,000, respectively.

During the years ended December 31, 2011, 2010 and 2009, we issued restricted stock grants to selected officers and members of the Board of Directors. These stock grants vest over a three or five year period for officers, with grants to directors vesting immediately. These grants are valued at the closing market price on the date granted with the associated compensation expense is recognized ratably over the applicable period.

Compensation expense recognized in connection with stock options for the years ended December 31, 2011, 2010 and 2009 was $201,000, $288,000, and $189,000 respectively. Compensation expense recognized in connection with stock grants for the years ended December 31, 2011, 2010 and 2009 was $1,277,000, $1,303,000, and $1,147,000 respectively.  As of December 31, 2011, remaining unamortized stock compensation expense for both stock options and restricted stock grants was approximately $ 1.2 million  and will be recognized as follows (000’s):

	Stock Options		Restricted Stock Grants
2012		128		469
2013		85		342
2014		5		105
2015		—		56
2016		—		—
Thereafter		—		—
Unamortized stock compensation costs at December 31, 2011	$	218	$	972