Nautilus 2000 Annual Report Download - page 38

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the date of the grant, and vesting periods vary by option granted, generally no longer than four years. If compensation cost on stock options
granted under these plans had been determined based on the fair value of the options consistent with that described in SFAS No.123, the
Company's net income and earnings per share would have been reduced to the pro forma amounts indicated below for the years ended
December31, 1998, 1999 and 2000.
1998 1999 2000
Net income, as reported $
12,485,494 $
20,342,891 $
41,626,094
Net income, pro forma 12,274,208 19,958,204 40,500,561
Basic earnings per share, as reported $
0.59 $
0.89 $
1.77
Basic earnings per share, pro forma $
0.58 $
0.87 $
1.72
Diluted earnings per share, as reported $
0.57 $
0.87 $
1.73
Diluted earnings per share, pro forma $
0.56 $
0.85 $
1.69
The pro forma amounts may not be indicative of the effects on reported net income for future years due to the effect of options vesting over a
period of years and the granting of stock compensation awards in future years.
The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model with the following
weighted-average assumptions used for grants in 1998, 1999 and 2000, respectively; all options granted will vest as scheduled; no dividend
yield for all three years; risk-free interest rate of 5%, 6.4% and 5%; expected volatility of 76%, 60% and 51%; and expected lives of five years
for all three years.
A summary of the status of the Company's stock option plans as of December31, 1998, 1999 and 2000, and changes during the years ended on
those dates is presented below.
1998 1999 2000
Shares Weighted
Average
Exercise
Price
Shares Weighted
Average
Exercise
Price
Shares Weighted
Average
Exercise
Price
Outstanding at beginning of year 1,829,505 $ 0.21 1,238,891 $ 1.06 1,051,064 $ 4.01
Granted 423,000 2.53 381,780 8.98 536,850 18.65
Forfeited or cancelled (16,425 ) 0.43 (48,001 ) 4.76 (134,250 ) 8.97
Exercised (997,190 ) 0.13 (521,607 ) 0.58 (324,201 ) 1.92
Outstanding at end of year 1,238,891 $ 1.06 1,051,064 $ 4.01 1,129,463 $ 12.89
Options exercisable at end of year 695,699 482,630 432,339
The following table summarizes information about stock options outstanding as of December31, 2000:
Options Outstanding Options Exercisable
Range of Exercise Prices Number
Outstanding
Average
Remaining
Contractual
Life (Years)
Weighted
Average
Exercise
Price
Number of
Shares
Exercisable
Weighted
Average
Exercise
Price
$0.11 — $0.43 154,578 1.3 $ 0.39 154,578 $ 0.39
$2.05 — $4.33 204,014 2.2 2.11 146,264 2.05
$9.11 — $10.47 353,384 3.7 9.17 119,684 8.90
$20.33 — $24.09 417,488 4.5 20.78 11,813 20.33
$0.11 — $24.09 1,129,464 3.4 $ 10.99 432,339 $ 3.85
36
2002. EDGAR Online, Inc.