Quarterly report pursuant to Section 13 or 15(d)

Shareholders' Equity

Shareholders' Equity

3 Months Ended

Mar. 31, 2018

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 each of October 2011, November 2014 and November 2016, the board approved an amendment to the repurchase program to permit the repurchase of an additional 5,000,000 shares, 10,000,000 shares and 10,000,000 shares, respectively. Since inception through March 31, 2018, 19,635,615 shares of common stock have been repurchased for $50,343 under the program and have been retired, including the repurchase of 285,400 shares for $932 during the three months ended March 31, 2018. As of March 31, 2018, 7,864,385 shares remained available for purchase under the program.

Stock Compensation Plans

As of March 31, 2018, there was $1,192 of unrecognized compensation cost for stock-based compensation related to options. This cost is expected to be recognized over the vesting periods of the options, which on a weighted-average basis are approximately 1.13 years for all grants.

Options were exercised to purchase 684,669 shares of the Company’s common stock during the three months ended March 31, 2018, for which the intrinsic value on dates of exercise was $1,021.

Restricted stock granted during the three months ended March 31, 2018 was as follows:



Grant Date	Final Vesting Date	Shares	Fair Value⁽¹⁾
January 12, 2018 ⁽²⁾	January 12, 2022	1,460,000	$	4,687
January 22, 2018 ⁽²⁾	January 22, 2022	245,000	$	762
January 29, 2018 ⁽²⁾	January 29, 2022	25,000	$	78
March 7, 2018 ⁽²⁾	March 7, 2022	125,000	$	425
		1,855,000	$	5,952


(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.

As of March 31, 2018, there was $10,631 of unrecognized compensation cost for stock-based compensation related to restricted stock grants, of which $5,597 related to the 2018 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 3.00 years for all grants and approximately 3.80 years for the 2018 grants.

Stock-based compensation, including options and restricted stock, attributed to employees was $1,487 for the three months ended March 31, 2018.

Stock-based compensation for consultants and independent financial advisors was $7 for the three months ended March 31, 2018. In the three months ended March 31, 2018, 380,367 shares were surrendered to cover payment of exercise prices and taxes.

Capital Stock

No shares of Series A Preferred Stock were sold pursuant to the Company's “at the market” offering programs during the three months ended March 31, 2018.

For the three months ended March 31, 2018, the Company paid dividends of $8,508, on its outstanding Series A Preferred Stock based on a monthly dividend of approximately $0.1667 per share. In September 2017, the Company began a quarterly cash dividend on its common stock. During the three months ended March 31, 2018, the Company paid a quarterly dividend of $0.01 per share on its outstanding common stock, totaling $1,960 of dividends on its common stock during the period.