Quarterly report pursuant to Section 13 or 15(d)

Shareholders' Equity

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Shareholders' Equity
 9 Months Ended
Sep. 30, 2014
Equity [Abstract]  
Shareholders' Equity
Shareholders’ Equity

Repurchase Program

In March 2007, the Company’s board of directors authorized the repurchase of up to 2,500,000 shares of the Company’s common stock from time to time on the open market or in privately negotiated transactions, depending on market conditions. In October 2011, the board approved an amendment to the repurchase program to permit the purchase of up to an additional 5,000,000 shares. Since inception through September 30, 2014, 6,194,247 shares of common stock have been repurchased for $14,179 under the program, including the repurchase of 1,280,400 shares for $4,674 and 2,444,490 shares for $8,090 during the three and nine months ended September 30, 2014, respectively.

Stock Compensation Plans

Options granted during the nine months ended September 30, 2014 were as follows:

Grant Date
 
Expiration Date
Shares
Exercise Price
Fair Value(1)
January 17, 2014
(2)(3) 
January 17, 2024
30,000
$
3.25

$
66

January 17, 2014
(2) 
January 17, 2024
2,268,000
$
3.25

$
3,859

January 22, 2014
(2) 
January 22, 2024
10,000
$
2.89

$
18

March 31, 2014
(2) 
March 31, 2024
30,000
$
3.02

$
55

June 25, 2014
(4) 
June 25, 2024
450,000
$
3.01

$
832

July 1, 2014
(2) 
July 1, 2024
10,000
$
3.32

$
19

July 31, 2014
(2) 
July 31, 2024
500,000
$
3.13

$
927

 
 
 
3,298,000
 
 

(1)
Fair value is calculated using the Black-Scholes option pricing model.
(2)
Options vest in four equal annual installments beginning on the first anniversary of the respective grant dates.
(3)
Compensation expense recognized each period is based on the award's estimated value at the most recent reporting date.
(4)
Options vest on the first anniversary of the grant date.

Options to purchase 201,413 shares of common stock were forfeited during the nine months ended September 30, 2014.

As of September 30, 2014, there was $13,813 of unrecognized compensation cost for stock-based compensation, of which $4,698 related to the 2014 grants described above. This cost is expected to be recognized over the vesting periods of the options, which on a weighted-average basis are approximately 1.84 years for all grants and approximately 3.06 years for the 2014 grants.

Options were exercised to purchase 498,976 and 1,787,913 shares of the Company’s common stock during the three and nine months ended September 30, 2014, for which the intrinsic value on dates of exercise was $1,187 and $3,354, respectively.

Capital Stock

On June 25, 2014, the Company's shareholders approved an amendment to the Company's Articles of Incorporation to increase the number of shares of common stock authorized from 600,000,000 to 800,000,000. On June 13, 2014, the Company filed articles of amendment to the Company's Articles of Incorporation to designate an additional 3,000,000 shares of its Series A Preferred Stock.
On June 24, 2013, the Company entered into an Equity Distribution Agreement under which it may sell up to an aggregate of 3,000,000 shares of its Series A Preferred Stock from time to time in an “at the market” offering under Rule 415 under the Securities Act of 1933, as amended (the “Securities Act”). On June 13, 2014, the Company entered into another Equity Distribution Agreement under which it may sell up to an aggregate of 3,000,000 shares of its Series A Preferred Stock from time to time in an “at the market” offering under Rule 415 under the Securities Act. During the three and nine months ended September 30, 2014, the Company sold 2,542,490 and 4,683,709 shares of Series A Preferred Stock, respectively, pursuant to the “at the market” offering, which provided total gross proceeds to the Company of $57,652 and $105,764, respectively, before deducting the commission paid to unaffiliated sales agents and offering expenses aggregating $1,201 and $2,302, respectively.

For the three and nine months ended September 30, 2014, the Company paid dividends of $4,848 and $11,783, respectively, on its outstanding Series A Preferred Stock based on a monthly dividend of approximately $0.1667 per share.