|
 |
| During 1998, the Company’s board of directors approved a qualified
incentive stock option and bonus plan (the “1998 Plan”),
which became effective March 10, 1998. Under the provisions of the
1998 Plan, selected members of management may receive the right to
acquire one share of restricted stock contingent upon the direct purchase
of two shares of unrestricted common stock at market value. In addition,
the 1998 Plan provides for the issuance of both traditional and performance
stock options at market price and 120 percent of market price, respectively.
Restricted stock and options awarded under the 1998 Plan are subject
to five-year vesting periods. |
The Company’s board of directors authorized 3,800,000 common
shares for grant under the 1998 Plan. During 2000, 1999 and 1998,
the Company issued 784,621, 363,728 and 235,404 options, respectively,
under the 1998 Plan. During 2000, 1999 and 1998, the Company issued
10,699, 9,374 and 1,202 shares, respectively, of restricted stock.
The Company recorded approximately $105,000, $20,000 and $0 of compensation
expense related to the issuance of restricted stock during 2000, 1999
and 1998, respectively. |
| A summary of stock option activity for the years ended
December 31, 2000, 1999 and 1998 is as follows: |
|
|
|
Weighted |
|
|
|
Average |
|
|
|
Exercise |
|
|
Shares |
Price |
 |
| Outstanding at December 31, 1997 |
720,638 |
$ 19.27 |
|
Granted |
241,404 |
35.60 |
|
Forfeited |
(6,215) |
24.89 |
|
Exercised |
(34,204) |
17.53 |
|
|
| Outstanding at December 31, 1998 |
921,623 |
23.57 |
|
Granted |
369,728 |
27.18 |
|
Forfeited |
(22,450) |
31.20 |
|
Exercised |
(45,756) |
11.98 |
|
|
| Outstanding at December 31, 1999 |
1,223,145 |
24.95 |
|
Granted |
790,621 |
17.06 |
|
Forfeited |
(46,853) |
26.26 |
|
Exercised |
(90,420) |
4.76 |
|
|
| Outstanding at December 31, 2000 |
1,876,493 |
$ 22.57 |
 |
|
|
| |
|
|
| Options exercisable at: |
|
|
|
December 31, 2000 |
833,579 |
$ 20.96 |
|
December 31, 1999 |
566,867 |
19.55 |
|
December 31, 1998 |
464,844 |
16.20 |
|
| Summary information about the Company’s stock options
outstanding at December 31, 2000 is as follows: |
|
|
|
Outstanding at |
Weighted Average |
Weighted Average |
Exercisable at |
Weighted Average |
| Range of |
December 31, |
Remaining |
Exercise |
December 31, |
Exercise |
| Exercise Price |
2000 |
Life |
Price |
2000 |
Price |
|
|
|
|
|
(In Years) |
|
|
|
| $ 9.38 |
- |
$ 16.88 |
325,023 |
6.5 |
$ 11.90 |
304,023 |
$ 11.89 |
| 17.75 |
- |
23.75 |
796,141 |
7.3 |
19.54 |
219,921 |
19.50 |
| 24.44 |
- |
29.75 |
276,470 |
7.8 |
25.82 |
74,678 |
25.93 |
| 30.13 |
- |
40.80 |
478,859 |
6.4 |
32.96 |
234,957 |
32.48 |
|
| $ 9.38 |
- |
$ 40.80 |
1,876,493 |
7.0 |
$ 22.57 |
833,579 |
$ 20.96 |
|
|
An accrual of approximately $254,000 related to the outstanding
stock options is included in deferred compensation in the accompanying
balance sheet at December 31, 1999.
As permitted by SFAS No. 123, “Accounting for Stock-Based
Compensation,” the Company accounts for the director equity
plan and the incentive stock option and bonus plans under APB Opinion
No. 25; however, the Company has computed for pro forma disclosure
purposes the value of all options granted during 2000, 1999 and
1998 using the Black-Scholes option pricing model as prescribed
by SFAS No. 123 using the following weighted average assumptions
for grants in 2000, 1999 and 1998:
|
The total values of the options granted during the years ended December
31, 2000, 1999 and 1998 were computed to be approximately $3,681,000,
$2,600,000, and $2,577,000, respectively, which would be amortized
over the vesting period of the options. If the Company had accounted
for these plans in accordance with SFAS No. 123, the Company’s
reported and pro forma net income and net income per share for the
years ended December 31, 2000, 1999 and 1998 would have been as follows
(in thousands, except per share data): |
|
2000 |
1999 |
1998 |
|
| Risk-free interest rate |
5.18%-6.84% |
5.09%-6.18% |
4.68%-5.76% |
| Expected dividend yield |
4.01%-7.68% |
2.72%-2.92% |
1.87%-2.97% |
| Expected option lives |
8-10 years |
8-10 years |
8-10 years |
| Expected volatility |
40% |
30% |
30% |
|
|
|
2000 |
1999 |
1998 |
|
| Net income: |
|
|
|
|
As reported |
$8,142 |
$41,069 |
$51,818 |
|
Pro forma |
6,595 |
39,975 |
51,022 |
| Diluted income per
common share: |
|
|
|
|
As reported |
$0.31 |
$1.63 |
$2.04 |
|
Pro forma |
0.25 |
1.59 |
2.01 |
|
34
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