Quarterly report pursuant to Section 13 or 15(d)

Shareholders' Equity

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Shareholders' Equity
 9 Months Ended
Sep. 30, 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 approved in November 2014 to permit the repurchase of an additional 10,000,000 shares. Since inception through September 30, 2015, 10,662,821 shares of common stock have been repurchased for $27,461 under the program and have been retired, including the repurchase of 2,586,427 shares for $6,400 and 4,066,669 shares for $11,837 during the three and nine months ended September 30, 2015, respectively.

Stock Compensation Plans

Options granted during the nine months ended September 30, 2015 were as follows:

Grant Date
 
Expiration Date
Shares
Exercise Price
Grant Date 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

May 18, 2015
(4) 
May 18, 2025
400,000
$
3.38

$
655

June 16, 2015
(2) 
June 16, 2025
30,000
$
3.67

$
62

 
 
 
 
 
 
 
 
 
1,810,000
 
$
4,520


(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 one year anniversary of the grant date.

Options to purchase 11,125 and 76,765 shares of common stock were forfeited during the three and nine months ended September 30, 2015, respectively.

As of September 30, 2015, there was $11,223 of unrecognized compensation cost for stock-based compensation, of which $2,964 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 2.41 years for all grants and approximately 2.91 years for the 2015 grants.

Options were exercised to purchase 278,037 and 964,691 shares of the Company’s common stock during the three and nine months ended September 30, 2015, for which the intrinsic value on dates of exercise was $488 and $2,320, respectively.

Restricted stock granted during the nine months ended September 30, 2015 was 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

April 28, 2015
(2) 
April 28, 2019
62,500

$
218

 
 
 
1,206,081

$
4,733


(1)
Fair value is calculated using the closing price on the grant date.
(2)
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)
Vests in four equal annual installments beginning on October 27, 2015 and each anniversary thereafter.

As of September 30, 2015, there was $3,790 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 3.27 years for all grants and approximately 3.26 years for the 2015 grants.

Stock-based compensation, including options and restricted stock, attributed to employees was $1,427 and $4,481 and attributed to consultants and independent financial advisors was $(1,185) and $1,445 for the three and nine months ended September 30, 2015, respectively.

Capital Stock

In May 2015, the Company filed an amendment to the Company's Articles of Incorporation to designate an additional 3,000,000 shares as Series A cumulative redeemable preferred stock ("Series A Preferred Stock").

During the three and nine months ended September 30, 2015, the Company sold 152,134 and 3,514,146 shares of Series A Preferred Stock, pursuant to the “at the market” offering, which provided total gross proceeds to the Company of $3,752 and $84,634, before deducting the commission paid to unaffiliated sales agents and offering expenses aggregating $175 and $1,907, respectively. During October 2015, the Company sold an additional 53,233 shares of Series A Preferred Stock, which provided total gross proceeds of $1,264 before deducting selling expenses of $25.

For the three and nine months ended September 30, 2015, the Company paid dividends of $7,289 and $20,773, respectively, on its outstanding Series A Preferred Stock based on a monthly dividend of approximately $0.1667 per share.