Quarterly report pursuant to Section 13 or 15(d)


3 Months Ended
Mar. 31, 2015

The Company’s Articles of Incorporation authorize the issuance of up to 100,000,000 shares.  The shares are classified in two classes, consisting of 95,000,000 shares of common stock, par value $.001 per share, and 5,000,000 shares of preferred stock, par value $.001 per share.  The board of directors is authorized to establish one or more series of preferred stock, setting forth the designation of each such series, and fixing the relative rights and preferences of each such series.  The Company has neither designated nor issued any shares of preferred stock.
Common Stock

The following is a schedule of changes in the number of shares of common stock outstanding during the three months ended March 31, 2015 and the year ended December 31, 2014:

Three Months Ended
March 31, 2015
Year Ended
December 31, 2014
Beginning Balance
    61,066,712       61,858,199  
Stock Options Exercised
    -       100,000  
Restricted Stock Grants (Note 6)
    497,854       299,416  
Stock Repurchased
    -       (1,153,885 )
Other Surrenders
    (11,257 )     (79,461 )
    -       42,443  
Ending balance
    61,553,309       61,066,712  

2015 Activity

In the three months ended March 31, 2015, 11,257 shares of common stock were surrendered by certain employees of the Company to cover tax obligations in connection with their restricted stock awards.  The total value of these shares was approximately $76,379, which was based on the market price on the date the shares were surrendered.

Stock Repurchase Program

In May 2011, the Company’s board of directors approved a stock repurchase program to acquire up to $150 million of the Company’s outstanding common stock.  The stock repurchase program allows the Company to repurchase its shares from time to time in the open market, block transactions and in negotiated transactions.

During the first quarter of 2015, the Company did not repurchase shares of its common stock under the stock repurchase program.  During the first quarter of 2014, the Company repurchased 1,018,897 shares of its common stock under the stock repurchase program.  This stock had a cost of approximately $13.7 million.  All repurchased shares are included in the Company’s pool of authorized but unissued shares.  The Company’s accounting policy upon the repurchase of shares is to deduct its par value from Common Stock and to reflect any excess of cost over par value as a deduction from Additional Paid-in Capital.

Performance Equity Awards

At the end of the first quarter of 2015, certain of the Company’s executive officers were granted performance equity awards under the 2015 long-term equity incentive program adopted by the compensation committee.  Entitlement to the performance shares will be based on the Company’s 2015 performance relative to established performance goals for year-over-year change in average stock price relative to a selected peer group.  Participants may earn from zero to 150 percent of their 2015 base salaries and the amounts earned will be settled in restricted shares of common stock that will vest annually over a subsequent three-year service-based vesting period beginning in 2016.  The maximum dollar amount of the performance shares issuable if all participants earned the maximum award would total $3.3 million.  For the three-month period ended March 31, 2015, the Company did not record compensation expense in connection with these performance equity awards.  No such performance equity awards have vested.