Shareholders' Equity, Dividends & Stock Compensation

9 Months Ended

Sep. 30, 2013

Stockholders' Equity Note [Abstract]

Shareholders' Equity, Dividends & Stock Compensation

(10) Shareholders’ Equity, Dividends & Stock Compensation

Share Information

DTAG has authorized shares with par value of $.001 per share. Of the 1,000 shares authorized, 101.8 shares are issued and outstanding. DTAC has authorized shares with no par value. Of the 1,000,000 shares authorized, 101.8 shares are issued and outstanding.

Dividends

Certain of our debt facilities place restrictions on the amount of cash dividends we are permitted to pay to our shareholders. If we are in compliance with the indebtedness ratio restriction in the Senior Secured Notes, we are permitted to pay cash dividends limited to an amount not greater than the percentage of S corporation taxable income for such quarterly periods equal to the highest combined federal, state, and/or local tax rate for individuals, plus 50% of the difference between pre-tax earnings less amounts paid for tax. If we are not in compliance with the indebtedness ratio dividend restriction in the Senior Secured Notes, specifically related to our ability to pay dividends, we are only permitted to pay cash dividends limited to an amount not greater than the percentage of S corporation taxable income for such quarterly periods equal to the highest combined federal, state, and/or local tax rate for individuals. As of September 30, 2013, we exceeded the indebtedness ratio, which restricted our ability to pay dividends related to net GAAP earnings. The indebtedness ratio dividend restriction under the Senior Secured Notes is not an aspect of the financial covenants of the Senior Secured Notes, but rather a mechanism designed to place limits on the Company’s ability to pay dividends to its shareholders.

During the nine months endedSeptember 30, 2013, we distributed $10.9 million of dividends to pay taxes related to fourth quarter 2012 and first quarter 2013 taxable income, which were approved by the board of directors in April 2013.

As of September 30, 2013, we had $2.8 million of dividends related to 2012 taxable income available for distribution. In November 2013, the Board of Directors approved, and we paid such dividend.

Chief Executive Officer Restricted Stock Grant

For the three and nine months ended September 30, 2013 we recorded $0.3 million and $0.9 million, respectively, in restricted stock compensation expense associated with the December 2010 Restricted Stock Agreements between Mr. Fidel and each of DTAG and DTAC. We recorded $0.3 million and $1.2 million in restricted stock expense for the same periods in 2012. The stock compensation recorded for these periods also credited our Paid-in Capital accounts for both companies during these periods.