Quarterly report pursuant to Section 13 or 15(d)

Shareholders' Equity

Shareholders' Equity

9 Months Ended

Sep. 30, 2018

Shareholders’ Equity

Repurchase Program

In March 2007, October 2011, November 2014 and November 2016, the Company’s board of directors authorized in the aggregate the repurchase of up to 27,500,000 shares of the Company’s common stock from time to time on the open market or in privately negotiated transactions, depending on market conditions.

Since inception through September 30, 2018, 21,831,943 shares of common stock have been repurchased for $57,298 under the program and have been retired, including the repurchase of 1,724,113 shares for $5,318 and 2,481,728 shares for $7,887 during the three and nine months ended September 30, 2018, respectively. As of September 30, 2018, 5,668,057 shares remained available for purchase under the program.

Stock Compensation Plans

As of September 30, 2018, there was $476 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 is approximately 0.89 year for all grants.

Options were exercised to purchase 778,234 and 2,488,446 shares of the Company’s common stock during the three and nine months ended September 30, 2018, respectively, for which the intrinsic value on dates of exercise was $836 and $3,771.

Restricted stock granted during the nine months ended September 30, 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
April 4, 2018 ⁽³⁾	January 22, 2022	20,000	62
May 30, 2018 ⁽⁴⁾	May 30, 2020	240,000	883
		2,115,000	$	6,897


(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)	Vests in four equal annual installments beginning on January 22, 2019.


(4)	Vests in two equal annual installments beginning on the first anniversary of the grant date.

As of September 30, 2018, there was $8,756 of unrecognized compensation cost for stock-based compensation related to restricted stock grants, of which $5,330 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 2.63 years for all grants and approximately 3.17 years for the 2018 grants.

Stock-based compensation, including options and restricted stock, attributed to employees was $1,373 and $4,408 for the three and nine months ended September 30, 2018, respectively.

Stock-based compensation for consultants and independent financial advisors was $7 and $34 for the three and nine months ended September 30, 2018, respectively. In the three and nine months ended September 30, 2018, 0 and 469,805 shares, respectively, 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 nine months ended September 30, 2018.

For the three and nine months ended September 30, 2018, the Company paid dividends of $8,507 and $25,523, respectively, 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 September 30, 2018, the Company paid a quarterly dividend of $0.0125 per share on its outstanding common stock, as compared to $0.01 per share in each of the prior two quarters in 2018. For the three and nine months ended September 30, 2018 the Company paid dividends of $2,448 and $6,377, respectively, on its common stock during the period.