QLTY » Topics » 4. Stock-Based Compensation

This excerpt taken from the QLTY 10-Q filed May 8, 2009.

4. Stock-Based Compensation

We maintain performance incentive plans under which stock options, restricted shares, and stock units may be granted to employees, non-employee directors, consultants and advisors. As of March 31, 2009, we have two active stock-based compensation plans.

We recognize expense for stock-based compensation based upon estimated grant date fair value. We apply the Black-Scholes valuation model in determining the fair value of share-based payments to employees. The resulting compensation expense is recognized over the requisite service period, which is generally the awards’ vesting term. Compensation expense is recognized only for those awards expected to vest, with forfeitures estimated based on our historical experience and future expectations. All stock-based compensation expense is classified within “Compensation” on the Consolidated Statement of Operations. None of the stock-based compensation was capitalized during the first three months of 2009.

The fair value of options granted during the first three months of 2009 and 2008 was based upon the Black-Scholes option-pricing model. The expected term of the options represents the estimated period of time until exercise giving consideration to the contractual terms, vesting schedules and expectations of future employee behavior. For 2009, expected stock price volatility is based on the historical volatility of our common stock, which began trading on November 13, 2003. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant with an equivalent remaining term. The Company has not paid dividends in the past and does not currently plan to pay any dividends in the foreseeable future. The Black-Scholes model was used with the following weighted average assumptions:

 

     2009     2008  

Risk free rate

   1.57 %   3.28 %

Expected life

   5 years     5 years  

Volatility

   78.7 %   66.5 %

Expected dividend

   nil     nil  

 

8


Table of Contents

The following options and restricted shares were issued during the three months ended:

 

     Options
Issued
   Restricted
Shares
Issued

March 31, 2009

   456,280    95,557

The following table summarizes stock-based compensation expense (in thousands):

 

     Three months ended
March 31,
     2009    2008

Stock options

   $ 93    $ 281

Restricted stock

     63      141
             
   $ 156    $ 422
             

The following table summarizes unrecognized stock-based compensation and the weighted average period over which such stock-based compensation is expected to be recognized as of March 31, 2009 (in thousands):

 

          Remaining
years

Stock options

   $ 1,256    4

Restricted stock

     390    4
         
   $ 1,646   
         

These amounts do not include the cost of any additional awards that may be granted in future periods nor any changes in our forfeiture rate. No options were exercised during the three months ended March 31, 2009.

This excerpt taken from the QLTY 10-Q filed Aug 8, 2008.

4. Stock-Based Compensation

We maintain performance incentive plans under which stock options, restricted shares, and stock units may be granted to employees, non-employee directors, consultants and advisors. As of June 30, 2008, we have three stock-based compensation plans.

We recognize expense for stock-based compensation based upon estimated grant date fair value. We apply the Black-Scholes valuation model in determining the fair value of share-based payments to employees. The resulting compensation expense is recognized over the requisite service period, which is generally the awards’ vesting term. Compensation expense is recognized only for those awards expected to vest, with forfeitures estimated based on our historical experience and future expectations. All stock-based compensation expense is classified within “Compensation” on the Consolidated Statement of Operations. None of the stock-based compensation was capitalized during 2008.

The fair value of options granted during the first six months of 2008 and 2007 was based upon the Black-Scholes option-pricing model. The expected term of the options represents the estimated period of time until exercise giving consideration to the contractual terms, vesting schedules and expectations of future employee behavior. For 2008, expected stock price volatility is based on the historical volatility of our common stock, which began trading on November 13, 2003. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant with an equivalent remaining term. The Company has not paid dividends in the past and does not currently plan to pay any dividends in the foreseeable future. The Black-Scholes model was used with the following weighted average assumptions:

 

     2008     2007  

Risk free rate

   3.19 %   4.65 %

Expected life

   5 years     5 years  

Volatility

   67.1 %   68.5 %

Expected dividend

   nil     nil  

We issued options for 227,000 shares to various employees with an exercise price of $4.50 on January 2, 2008. The exercise price of the options was based on the fair market value of our stock at the date of the grant. We also issued 73,326 shares of restricted stock on January 2, 2008 to certain directors as part of their annual compensation package. On April 23, 2008, we issued options with an exercise price of $3.17 for 105,000 shares, of which 80,000 shares were issued to our Chairman of the Board and 25,000 to an officer. On June 4, 2008, we issued a total of 17,910 restricted shares to certain members of our Board of Directors.

 

10


Table of Contents

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

 

The following table summarizes stock-based compensation expense (in thousands):

 

     Three months ended
June 30,
   Six months ended
June 30,
     2008    2007    2008    2007

Stock options

   $ 268    $ 339    $ 549    $ 668

Restricted stock, net

     37      60      177      125

Stock units

     —        7      —        14
                           
   $ 305    $ 406    $ 726    $ 807
                           

The following table summarizes unrecognized stock-based compensation and the weighted average period over which such stock-based compensation is expected to be recognized as of June 30, 2008 (in thousands):

 

     In $    Remaining
years

Stock options

   $ 2,544    4

Restricted stock, net

     775    4
         
   $ 3,319   
         

These amounts do not include the cost of any additional awards that may be granted in future periods nor any changes in our forfeiture rate. No options were exercised during the six months ended June 30, 2008.

This excerpt taken from the QLTY 10-Q filed May 9, 2008.

4. Stock-Based Compensation

We maintain performance incentive plans under which stock options, restricted shares, and stock units may be granted to employees, non-employee directors, consultants and advisors. As of March 31, 2008, we have three stock-based compensation plans.

We recognize expense for stock-based compensation based upon estimated grant date fair value. We apply the Black-Scholes valuation model in determining the fair value of share-based payments to employees. The resulting compensation expense is recognized over the requisite service period, which is generally the awards’ vesting term. Compensation expense is recognized only for those awards expected to vest, with forfeitures estimated based on our historical experience and future expectations. All stock-based compensation expense is classified within “Compensation” on the Consolidated Statement of Operations. None of the stock-based compensation was capitalized during 2008.

The fair value of options granted during the first three months of 2008 and 2007 was based upon the Black-Scholes option-pricing model. The expected term of the options represents the estimated period of time until exercise giving consideration to the contractual terms, vesting schedules and expectations of future employee behavior. For 2008, expected stock price volatility is based on the historical volatility of our common stock, which began trading on November 13, 2003. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant with an equivalent remaining term. The Company has not paid dividends in the past and does not currently plan to pay any dividends in the foreseeable future. The Black-Scholes model was used with the following assumptions:

 

     2008     2007  

Risk free rate

   3.28 %   4.65 %

Expected life

   5 years     5 years  

Volatility

   66.5 %   68.5 %

Expected dividend

   nil     nil  

We issued options for 227,000 shares to various employees with an exercise price of $4.50 on January 2, 2008. The exercise price of the options was based on the fair market value of our stock at the date of the grant. The total compensation expense that will be recognized over four years for these options (net of estimated shares forfeited) is approximately $0.3 million. We also issued 73,326 shares of restricted stock on January 2, 2008 to certain directors as part of their annual compensation package. We will recognize approximately $0.3 million as compensation expense over four years for these restricted shares (net of estimated shares forfeited).

 

9


Table of Contents

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

 

The following table summarizes stock-based compensation expense (in thousands):

 

     Three months ended
March 31,
     2008    2007

Stock options

   $ 281    $ 329

Restricted stock, net

     141      64

Stock units

     —        8
             
   $ 422    $ 401
             

The following table summarizes unrecognized stock-based compensation and the weighted average period over which such stock-based compensation is expected to be recognized as of March 31, 2008 (in thousands):

 

     In $    Remaining
years

Stock options

   $ 2,670    4

Restricted stock, net

     1,186    4
         
   $ 3,856   
         

These amounts do not include the cost of any additional awards that may be granted in future periods nor any changes in our forfeiture rate. No options were exercised during the three months ended March 31, 2008.

These excerpts taken from the QLTY 10-K filed Mar 14, 2008.

Stock-Based Compensation

The fair value of options granted during 2007, 2006 and 2005 was based upon the Black-Scholes option-pricing model. The expected term of the options represents the estimated period of time until exercise giving consideration to the contractual terms, vesting schedules and expectations of future employee behavior. For fiscal 2007, expected stock price volatility is based on the historical volatility of our common stock, which began trading on November 13, 2003. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant with an equivalent remaining term. The Company has not paid dividends in the past and does not currently plan to pay any dividends in the foreseeable future. The Black-Scholes model was used with the following assumptions:

 

     2007     2006     2005  

Risk free rate

   4.35 %   4.5 %   3.74 %

Expected life

   5 years     4 years     4 years  

Volatility

   68 %   71 %   60 %

Expected dividend

   nil     nil     nil  

Restricted stock awards are measured at market value on the date of grant and recognized over time using graded vesting, which accelerates compensation expense into the first two years of the four year vesting period. Stock Units are measured at fair value at time of issuance and recognized on a straight-line basis over the vesting period.

Stock-based compensation expense recognized during the years ended December 31, 2007, 2006 and 2005 for each of the types of stock-based awards was (in thousands):

 

     2007    2006    2005

Stock options

   $ 1,143    $ 1,163    $ 125

Restricted stock

     420      369      143

Stock units

     —        1,473      859
                    

Total stock-based compensation expense

   $ 1,563    $ 3,005    $ 1,127
                    

All stock-based compensation expense is classified within “Compensation” on the Consolidated Statements of Operations. None of the stock-based compensation was capitalized during 2007. There were no modifications to stock option awards during 2007.

As of December 31, 2007, there was approximately $2.7 million of total unrecognized compensation cost related to stock options granted. The recognition period for the remaining unrecognized stock-based compensation cost is approximately four years. As of December 31, 2007, unrecognized compensation expense related to the unvested portion of our restricted stock awards was approximately $1.1 million, which is expected to be recognized over a period of approximately four years. These amounts do not include the cost of any additional options or restricted stock that may be granted in future periods nor any changes in the Company’s forfeiture rate.

 

F-46


Table of Contents

Quality Distribution, Inc. and Subsidiaries

Notes to Consolidated Financial Statements—(Continued)

For the Years Ended December 31, 2007, 2006 and 2005

 

Stock-Based Compensation

STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%">The fair value of options granted during 2007, 2006 and 2005 was based upon the Black-Scholes option-pricing model. The expected term of the options
represents the estimated period of time until exercise giving consideration to the contractual terms, vesting schedules and expectations of future employee behavior. For fiscal 2007, expected stock price volatility is based on the historical
volatility of our common stock, which began trading on November 13, 2003. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant with an equivalent remaining term. The Company has not paid dividends
in the past and does not currently plan to pay any dividends in the foreseeable future. The Black-Scholes model was used with the following assumptions:

 






































































   2007  2006  2005 

Risk free rate

  4.35% 4.5% 3.74%

Expected life

  5 years  4 years  4 years 

Volatility

  68% 71% 60%

Expected dividend

  nil  nil  nil 

Restricted stock awards are measured at market value on the date of grant and recognized over time
using graded vesting, which accelerates compensation expense into the first two years of the four year vesting period. Stock Units are measured at fair value at time of issuance and recognized on a straight-line basis over the vesting period.

Stock-based compensation expense recognized during the years ended December 31, 2007, 2006 and 2005 for each of the types of
stock-based awards was (in thousands):

 

























































































   2007  2006  2005

Stock options

  $1,143  $1,163  $125

Restricted stock

   420   369   143

Stock units

   —     1,473   859
            

Total stock-based compensation expense

  $1,563  $3,005  $1,127
            

All stock-based compensation expense is classified within “Compensation” on the
Consolidated Statements of Operations. None of the stock-based compensation was capitalized during 2007. There were no modifications to stock option awards during 2007.

FACE="Times New Roman" SIZE="2">As of December 31, 2007, there was approximately $2.7 million of total unrecognized compensation cost related to stock options granted. The recognition period for the remaining unrecognized stock-based
compensation cost is approximately four years. As of December 31, 2007, unrecognized compensation expense related to the unvested portion of our restricted stock awards was approximately $1.1 million, which is expected to be recognized over a
period of approximately four years. These amounts do not include the cost of any additional options or restricted stock that may be granted in future periods nor any changes in the Company’s forfeiture rate.

STYLE="margin-top:0px;margin-bottom:0px"> 


F-46







Table of Contents



Quality Distribution, Inc. and Subsidiaries

STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center">Notes to Consolidated Financial Statements—(Continued)

FACE="Times New Roman" SIZE="2">For the Years Ended December 31, 2007, 2006 and 2005

 


This excerpt taken from the QLTY 10-Q filed Nov 8, 2007.

4. Stock-Based Compensation

We maintain performance incentive plans under which stock options, restricted shares, and stock units may be granted to employees, non-employee directors, consultants and advisors. As of September 30, 2007, we have three stock-based compensation plans. In addition, Gerald L. Detter, our Chairman, has stock units.

We recognize expense for stock-based compensation based upon estimated grant date fair value. We apply the Black-Scholes valuation model in determining the fair value of share-based payments to employees. The resulting compensation expense is recognized over the requisite service period, which is generally the awards’ vesting term. Compensation expense is recognized only for those awards expected to vest, with forfeitures estimated based on our historical experience and future expectations. All stock-based compensation expense is classified within “Compensation” on the Consolidated Statement of Operations. None of the stock-based compensation was capitalized during 2007.

The fair value of options granted during the first nine months of 2007 and 2006 was based upon the Black-Scholes option-pricing model. The expected term of the options represents the estimated period of time until exercise giving consideration to the contractual terms, vesting schedules and expectations of future employee behavior. For 2007, expected stock price volatility is based on the historical volatility of our common stock, which began trading on November 13, 2003. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant with an equivalent remaining term. The Company has not paid dividends in the past and does not currently plan to pay any dividends in the foreseeable future. The Black-Scholes model was used with the following assumptions:

 

     2007     2006  

Risk free rate

   4.65 %   4.50 %

Expected life

   5 years     4 years  

Volatility

   68.5 %   71.2 %

Expected dividend

   nil     nil  

Due to the issuance of stock options representing 200,000 shares to an executive who joined us in November 2004, we recognized approximately $94,000 of compensation expense for the nine months ended September 30, 2007 and will recognize approximately $0.2 million of compensation expense over the next 14 months.

We issued options for 240,950 shares to various employees with an exercise price of $13.06 on January 3, 2007. The total compensation expense that will be recognized over four years for these options (net of estimated shares forfeited) is approximately $1.8 million. We issued options for 20,000 shares to an officer with an exercise price of $8.65 on March 30, 2007. The exercise price of the options was based on the fair market value of our stock at the date of the grant. The total compensation expense that will be recognized over four years for these options (net of estimated shares forfeited) is less than $0.1 million. We also issued 11,485 shares of restricted stock in January 2007 to certain directors as part of their annual compensation package, 40,000 shares of restricted stock in June 2007 to our newly appointed Chief Executive Officer and 7,050 shares of restricted stock in July 2007 to our Chairman of the Board. We will recognize approximately $0.7 million as compensation expense over four years for all of these restricted shares (net of estimated shares forfeited). Our Chairman, Mr. Detter, forfeited 7,050 stock units in connection with his cessation of services as an employee.

 

8


Table of Contents

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

 

The following table summarizes stock-based compensation expense (in thousands):

 

     Three months ended
September 30,
   Nine months ended
September 30,
     2007     2006    2007    2006

Stock options

   $ 306     $ 307    $ 974    $ 867

Restricted stock, net

     128       100      253      286

Stock units

     (14 )     376      —        1,103
                            
   $ 420     $ 783    $ 1,227    $ 2,256
                            

The following table summarizes unrecognized stock-based compensation and the weighted average period over which such stock-based compensation is expected to be recognized as of September 30, 2007 (in thousands):

 

     In $    Remaining
years

Stock options

   $ 3,812    2.6

Restricted stock, net

     671    2.9
         
   $ 4,483   
         

These amounts do not include the cost of any additional awards that may be granted in future periods nor any changes in our forfeiture rate. No options were exercised during the three months ended September 30, 2007.

This excerpt taken from the QLTY 10-Q filed Aug 9, 2007.

4. Stock-Based Compensation

We maintain performance incentive plans under which stock options, restricted shares, and stock units may be granted to employees, non-employee directors, consultants and advisors. As of June 30, 2007, we have three stock-based compensation plans. There is also an agreement relating to stock units which applies solely to Mr. Gerald L. Detter, Chairman.

We recognize expense for stock-based compensation based upon estimated grant date fair value. We apply the Black-Scholes valuation model in determining the fair value of share-based payments to employees. The resulting compensation expense is recognized over the requisite service period, which is generally the awards’ vesting term. Compensation expense is recognized only for those awards expected to vest, with forfeitures estimated based on our historical experience and future expectations. All stock-based compensation expense is classified within “Compensation” on the Consolidated Statement of Operations. None of the stock-based compensation was capitalized during 2007.

The fair value of options granted during the first six months of 2007 and 2006 was based upon the Black-Scholes option-pricing model. The expected term of the options represents the estimated period of time until exercise giving consideration to the contractual terms, vesting schedules and expectations of future employee behavior. For fiscal 2007, expected stock price volatility is based on the historical volatility of our common stock, which began trading on November 13, 2003. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant with an equivalent remaining term. The Company has not paid dividends in the past and does not currently plan to pay any dividends in the foreseeable future. The Black-Scholes model was used with the following assumptions:

 

     2007     2006  

Risk free rate

   4.65 %   4.50 %

Expected life

   5 years     4 years  

Volatility

   68.5 %   71.2 %

Expected dividend

   nil     nil  

Due to the issuance of stock options representing 200,000 shares to an executive who joined us in November 2004, we recognized approximately $63,000 of compensation expense for the six months ended June 30, 2007 and will recognize approximately $0.2 million of compensation expense over the next 17 months.

We issued options for 240,950 shares to various employees with an exercise price of $13.06 on January 3, 2007. The total compensation expense that will be recognized over four years for these options (net of estimated shares forfeited) is approximately $1.8 million. We issued options for 20,000 shares to an officer with an exercise price of $8.65 on March 30, 2007. The exercise price of the options was based on the fair market value of our stock at the date of the grant. The total compensation expense that will be recognized over four years for these options (net of estimated shares forfeited) is approximately $0.1 million. We also issued 11,485 shares of restricted stock in January 2007 to certain directors as part of their annual compensation package and 40,000 shares of restricted stock in June 2007 to our newly appointed Chief Executive Officer. We will recognize approximately $0.5 million as compensation expense over four years for all of these restricted shares (net of estimated shares forfeited).

 

8


Table of Contents

QUALITY DISTRIBUTION, INC. AND SUBSIDIARIES

 

The following table summarizes stock based compensation expense (in thousands):

 

     Three months ended
June 30,
   Six months ended
June 30,
     2007    2006    2007    2006

Stock options

   $ 339    $ 290    $ 668    $ 560

Restricted stock, net

     60      92      125      186

Stock units

     7      366      14      727
                           
   $ 406    $ 748    $ 807    $ 1,473
                           

The following table summarizes unrecognized stock-based compensation and the weighted average period over which such stock-based compensation is expected to be recognized as of June 30, 2007 (in thousands):

 

     In $    Remaining
years

Stock options

   $ 4,087    2.8

Restricted stock, net

     717    3.2

Stock units

     49    2.6
         
   $ 4,853   
         

These amounts do not include the cost of any additional awards that may be granted in future periods nor any changes in our forfeiture rate. Options representing 8,500 shares were exercised during the three months ended June 30, 2007. We recognize compensation expense for restricted stock based on Financial Interpretation Number 28.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki