Quarterly report pursuant to Section 13 or 15(d)

Shareholders' Equity

v2.4.1.9
Shareholders' Equity
 3 Months Ended
Mar. 31, 2015
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, and another amendment was made in November 2014 to permit the repurchase of an additional 10,000,000 shares. Since inception through March 31, 2015, 6,999,993 shares of common stock have been repurchased for $17,213 under the program, including the repurchase of 403,841 shares for $1,589 during the three months ended March 31, 2015.

Stock Compensation Plans

Options granted during the three months ended March 31, 2015 were as follows:

Grant Date
 
Expiration Date
Shares
Exercise Price
Fair Value(1)
January 2, 2015
(2) 
January 2, 2025
500,000
$
3.88

$
1,163

January 20, 2015
(2) 
January 20, 2025
850,000
$
4.25

$
2,550

January 20, 2015
(2)(3) 
January 20, 2025
30,000
$
4.25

$
90

 
 
 
 
 
 
 
 
 
1,380,000
 
 

(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.

Options to purchase 55,712 shares of common stock were forfeited during the three months ended March 31, 2015.

As of March 31, 2015, there was $17,083 of unrecognized compensation cost for stock-based compensation, of which $3,531 related to the 2015 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 2.30 years for all grants and approximately 3.76 years for the 2015 grants.

Options were exercised to purchase 489,584 shares of the Company’s common stock during the three months ended March 31, 2015, for which the intrinsic value on dates of exercise was $1,296.

Restricted stock granted during the three months ended March 31, 2015 were as follows:

Grant Date
 
Final Vesting Date
Shares
Fair Value(1)
January 20, 2015
(2) 
January 20, 2019
1,115,000
$
4,404

February 3, 2015
(3)(4) 
October 27, 2018
28,581
$
111

 
 
 
1,143,581
 

(1)
Fair value is calculated using the closing price on date of grant.
(2)
Restricted stock vests in four equal annual installments beginning on the first anniversary of the grant date.
(3)
Compensation expense recognized each period is based on the awards estimated value at the most recent reporting date.
(4)
Restricted stock vests in four equal annual installments beginning on October 27, 2015 and each anniversary thereafter.

As of March 31, 2015, there was $4,111 of unrecognized compensation cost for stock-based compensation related to the 2015 restricted stock grants described above. This cost is expected to be recognized over the vesting periods of the restricted stock, which on a weighted-average basis are approximately 3.77 years for all grants and approximately 3.74 years for the 2015 grants.

Stock-based compensation, including options and restricted stock, attributed to employees was $1,593 and attributed to consultants and independent financial advisors was $1,667 for the three months ended March 31, 2015.

Capital Stock

During the three months ended March 31, 2015, the Company sold 2,952,939 shares of Series A cumulative redeemable preferred stock ("Series A Preferred Stock"), pursuant to the “at the market” offering, which provided total gross proceeds to the Company of $70,923, before deducting the commission paid to unaffiliated sales agents and offering expenses aggregating $1,447. From April 1, 2015 through May 2, 2015, the Company sold an additional 224,036 shares of Series A Preferred Stock, which provided total gross proceeds of $5,378 before deducting selling expenses of $108.

For the three months ended March 31, 2015, the Company paid dividends of $6,332, on its outstanding Series A Preferred Stock based on a monthly dividend of approximately $0.1667 per share.