Quarterly report pursuant to Section 13 or 15(d)

STOCK-BASED COMPENSATION

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STOCK-BASED COMPENSATION
3 Months Ended
Mar. 31, 2018
STOCK-BASED COMPENSATION [Abstract]  
STOCK-BASED COMPENSATION
13. STOCK-BASED COMPENSATION

Stock-based compensation of approximately $592,000 and $633,000 during the three months ended March 31, 2018, and 2017, respectively, was recognized.

Restricted Stock Awards

On January 17, 2018, we awarded 251 shares of restricted stock to an officer at a grant date price of $13.85.  The stock was immediately vested.  Compensation expense recognized during the three months ended March 31, 2018, was $5,000.

Restricted Stock Unit Awards

On February 20, 2018, we awarded approximately 102,000 shares of restricted stock units to officers at a grant date price of $12.15.  One-half of the restricted stock units vest ratably over three years.  The other half vests at the end of three years based upon the performance metrics of return on invested capital and earnings per share growth.  The number of shares actually granted will be adjusted based upon relative performance to our peers.  Compensation expense recognized during the three months ended March 31, 2018, was approximately $36,000.

Officer compensation of approximately $112,000 and $0 during the three months March 31, 2018, and 2017, respectively, was recognized related to restricted stock unit awards granted to officers vesting through 2020.

Director compensation of approximately $84,000 and $81,000 during the three months March 31, 2018, and 2017, respectively, was recognized related to restricted stock unit awards granted to directors vesting through 2020.

Officer compensation of approximately $97,000 and $105,000 was recognized during the three months ended March 31, 2018, and 2017, respectively, related to restricted stock unit awards granted to officers.  One-half of the restricted stock units vest ratably over three years.  The other half vests at the end of the three years based upon the performance metrics of return on invested capital and earnings per share growth.  The number of shares actually granted will be adjusted based upon relative performance to our peers.

Employee compensation of approximately $104,000 and $108,000 during the three months ended March 31, 2018, and 2017, respectively, was recognized related to restricted stock units with a four year vesting period which was awarded to officers.  This restricted stock vests through 2019.

Restricted stock units activity in the first three months of 2018 was as follows:

   
Shares of Restricted
Stock Units
   
Weighted Average Grant Date Price per Share
 
             
Outstanding at January 1, 2018
   
387,702
   
$
11.39
 
   Granted
   
102,317
   
$
12.15
 
   Forfeited
   
(34,585
)
 
$
10.97
 
   Vested
   
(51,998
)
 
$
12.34
 
Outstanding at March 31, 2018
   
403,436
   
$
11.50
 
 
Stock Option and Warrant Awards

A summary of the status of our stock option awards and warrants is presented below:

   
Number of Stock Options & Warrants
   
Weighted Average Exercise Price per Share
   
Weighted Average Remaining Contractual Life
 
                   
Outstanding at January 1, 2018
   
1,323,587
   
$
7.82
       
   Granted
   
--
     
--
       
   Exercised
   
(81,427
)
   
6.26
       
   Forfeited
   
--
     
--
       
Outstanding at March 31, 2018
   
1,242,160
   
$
7.93
     
4.1
 
Exercisable at March 31, 2018
   
1,042,160
   
$
8.80
     
4.7
 

The fair value of the options granted were calculated using the Black Scholes option valuation model with the assumptions as disclosed in prior quarterly and annual filings.

Directors' compensation of approximately $0 and $30,000 during the three months ended March 31, 2018, and 2017, respectively, was recognized related to options to purchase shares vesting through 2017.

Employee compensation of approximately $154,000 and $309,000 during the three months ended March 31, 2018, and 2017, respectively, was recognized related to options with a four- year vesting period which were awarded to officers and key employees.  These options vest through 2018.

Post-retirement compensation of approximately $0 and $0 was recognized during the three months ended March 31, 2018, and 2017, related to options awarded to Mr. Hatem El Khalidi in July 2009.  On May 9, 2010, the Board of Directors determined that Mr. El Khalidi forfeited these options and other retirement benefits when he made various demands against the Company and other AMAK Saudi shareholders which would benefit him personally and were not in the best interests of the Company and its shareholders.  The Company is litigating its right to withdraw the options and benefits and as such, these options and benefits continue to be shown as outstanding.  See further discussion in Note 18.

See the Company's Annual Report on Form 10-K for the year ended December 31, 2017, for additional information.