• Filing Date: 2014-03-12
  • Form Type: 10-K
  • Description: Annual report
v2.4.0.8
Stock-Based Compensation
12 Months Ended
Dec. 31, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation

Note 16 — Stock-Based Compensation

Incentive Plan

The Company has outstanding stock-based awards granted under the 2007 Stock Option and Incentive Plan (“2007 Plan”) and its 2012 Omnibus Incentive Plan (the “2012 Plan”) which are collectively called “the Incentive Plan.” The Company terminated the 2007 Plan in 2012 and thus there were no shares available for future grant under the 2007 Plan. With respect to the Incentive Plan which permits the granting of stock-based awards to employees, directors, consultants, and advisors of the Company, the aggregate number of shares of common stock reserved and available for issuance is 5,000,000. At December 31, 2013, there were 4,344,350 shares available for grant under the Incentive Plan.

Stock Options

Stock options granted and outstanding under the Incentive Plan vest over periods ranging from immediately vested to five years and are exercisable over the contractual term of ten years.

A summary of the stock option activity for the years ended December 31, 2013, 2012 and 2011 is as follows:

 

     Number of
Options
    Weighted
Average
Exercise
Price
     Weighted
Average
Remaining
Contractual
Term
     Aggregate
Intrinsic
Value
 

Outstanding at January 1, 2011

     870,000      $ 2.71         6.5 years       $ 4,675   

Issued

     30,000      $ 6.30         

Forfeited

     (24,800   $ 2.50         

Exercised

     (255,200   $ 2.50         
  

 

 

         

Outstanding at December 31, 2011

     620,000      $ 2.97         5.7 years       $ 3,122   
  

 

 

         

Exercised

     (340,000   $ 3.03         
  

 

 

         

Outstanding at December 31, 2012

     280,000      $ 2.91         4.9 years       $ 5,007   
  

 

 

         

Outstanding at December 31, 2013

     280,000      $ 2.91         3.9 years       $ 14,166   
  

 

 

         

Exercisable at December 31, 2013

     270,000      $ 2.78         3.8 years       $ 13,694   
  

 

 

         

 

The following table summarizes information about options exercised, and the fair value of vested options for the years ended December 31, 2013, 2012 and 2011:

 

     2013      2012      2011  

Options exercised

     —           340,000         255,200   

Intrinsic value of exercised options

     —         $ 3,648       $ 1,184   

Tax benefits realized

     —         $ 1,161       $ 265   

Fair value of vested options

   $ 17       $ 22       $ 76   

During the year ended December 31, 2012, a total of 340,000 options were exercised of which 227,003 options were net settled by surrender of 72,592 shares. During the year ended December 31, 2011, a total of 255,200 options were exercised, which includes 30,000 options exercised and net settled by surrender of 9,317 shares. Compensation expense recognized for the years ended December 31, 2013, 2012 and 2011 totaled approximately $19, $68 and $27, respectively, and is included in other operating expenses. At December 31, 2013 and 2012, there was approximately $6 and $25, respectively, of unrecognized compensation expense related to nonvested stock options granted under the plan. The Company expects to recognize the remaining compensation expense over a weighted-average period of 4 months. Deferred tax benefits related to stock options for the years ended December 31, 2013, 2012 and 2011 were immaterial.

No options were granted during the years ended December 31, 2013 and 2012. In 2011, 30,000 options were granted with fair value estimated on the date of grant using the following assumptions and the Black-Scholes option-pricing model:

 

Expected dividend yield

     6.3

Expected volatility

     53.3

Risk-free interest rate

     0.97

Expected life (in years)

     5.00   

 

Restricted Stock Awards

From time to time, the Company has granted and may grant restricted stock awards to certain executive officers, other employees and nonemployee directors in connection with their service to the Company. The terms of the Company’s outstanding restricted stock grants may include service, performance and market-based conditions. The fair value of the awards with market-based conditions is determined using a Monte Carlo simulation method, which calculates many potential outcomes for an award and then establishes fair value based on the most likely outcome. The determination of fair value with respect to the awards with only performance or service-based conditions is based on the value of the Company’s stock on the grant date.

Information with respect to the activity of unvested restricted stock awards during the years ended December 31, 2013 and 2012 is as follows:

 

     Number of
Restricted
Stock
Awards
    Weighted
Average
Grant Date
Fair Value
 

Nonvested at January 1, 2012

     —          —     

Granted

     246,320      $ 14.54   
  

 

 

   

Nonvested at December 31, 2012

     246,320      $ 14.54   
  

 

 

   

Granted

     612,000      $ 27.36   

Vested

     (93,000  

Forfeited

     (29,670  
  

 

 

   

Nonvested at December 31, 2013

     735,650      $ 25.48   
  

 

 

   

The Company recognized compensation expense, which is included in other operating expenses, of $5,346 and $776, respectively, for the years ended December 31, 2013 and 2012. At December 31, 2013 and 2012, there was approximately $13,757 and $2,805, respectively, of total unrecognized compensation expense related to nonvested restricted stock arrangements. The Company expects to recognize the remaining compensation expense over a weighted-average period of 27 months. The following table summarizes information about deferred tax benefits recognized related to restricted stock awards and the fair value of vested restricted stock for the years ended December 31, 2013 and 2012.

 

     2013      2012  

Deferred tax benefits recognized

   $ 2,062       $ 299   

Fair value of vested restricted stock

   $ 1,133       $ —     

 

For the year ended December 31, 2013, the Company realized tax benefits of approximately $277 related to cash dividends paid on restricted stock. The following presents assumptions used in a Monte Carlo simulation model to determine the fair value of the awards with market-based conditions:

 

     2013     2012  

Expected dividends per share

   $ 0.90      $ 0.80   

Expected volatility

     41.5 – 51.6     36.7 – 50.0

Risk-free interest rate

     0.0 – 1.9     0.1 – 1.2

Estimated cost of capital

     9.3 – 10.3     11.9 – 12.1

Expected life (in years)

     4.00 – 6.00        6.00