7. Dividends on common stock:

Dividends are recorded as a reduction to retained earnings. Dividends on unvested restricted shares of common stock are paid as the awards vest. The Company’s initial quarterly dividend payment was made in the third quarter of 2012. In addition to the Company’s regular quarterly dividends, in 2013, the Company’s board of directors approved an additional return of capital program (the “Capital Program”). Under the Capital Program the Company plans on returning additional capital to the Company’s shareholders each quarter through either stock buybacks or a special dividend or a combination of stock buybacks and a special dividend. The aggregate payment under the Capital Program initially was a minimum of $10.0 million each quarter and was increased to be a minimum of $12.0 million each quarter. Amounts paid under the Capital Program are in addition to the Company’s regular quarterly dividend payments.

On August 5, 2015, the Company’s board of directors approved the payment of the Company’s quarterly dividend of $0.34 per common share. The dividend for the third quarter of 2015 will be paid to holders of record on August 21, 2015. This estimated $15.2 million dividend payment is expected to be made on September 11, 2015.

A summary of the Company’s quarterly dividends paid since its initial dividend payment is as follows (in thousands, except per share amounts):

Dividend Period	Amount per Common Share		Record Date	Payment Date	Dividends Paid
Q3 2012	$	0.10	August 22, 2012	September 12, 2012	$	4,537
Q4 2012	$	0.11	November 21, 2012	December 12, 2102	$	5,012
Q1 2013	$	0.12	March 4, 2013	March 15, 2013	$	5,489
Q2 2013	$	0.13	May 31, 2013	June 18, 2013	$	6,145
Q3 2013	$	0.14	September 5, 2013	September 25, 2013	$	6,512
Q4 2013	$	0.37	November 27, 2013	December 20, 2013	$	17,206
Q1 2014	$	0.39	March 7, 2014	March 27, 2014	$	18,352
Q2 2014	$	0.17	May 30, 2014	June 18, 2014	$	7,882
Q3 2014	$	0.30	August 29, 2014	September 19, 2014	$	13,792
Q4 2014	$	0.31	November 26, 2014	December 12, 2014	$	14,190
Q1 2015	$	0.35	March 11, 2015	March 26, 2015	$	16,001
Q2 2015	$	0.42	May 22, 2015	June 12, 2015	$	18,972

A summary of the Company’s amounts paid under the Capital Program is as follows (in thousands, except per share amounts):

Dividend Period	Capital Program Amount		Stock Buyback Amount During the Period		Stock Buyback Amount Greater than Capital Program Amount?	Payment Under Capital Program Paid As Dividend (1)		Amount Per Share Paid As Dividends Under the Capital Program
Q3 2013	$	10,000	$	—	No	$	—	$	—
Q4 2013	$	10,500	$	—	No	$	10,186	$	0.22
Q1 2014	$	10,500	$	14,196	Yes	$	10,707	$	0.23
Q2 2014	$	10,500	$	17,888	Yes	$	—	$	—
Q3 2014	$	12,000	$	15,943	Yes	$	—	$	—
Q4 2014	$	12,000	$	10,555	No	$	—	$	—
Q1 2015	$	12,000	$	8,119	No	$	1,357	$	0.03
Q2 2015	$	12,000	$	19,106	Yes	$	4,019	$	0.09

(1)

Under the Capital Program if the amount spent on stock buybacks during a quarter is less than the program amount the difference is added to the dividend payment for the following quarter. The stock buyback amount for the second quarter of 2015 was $19.1 million and more than the Capital Program amount of $12.0 million. As a result no additional amounts will be added to the third quarter 2015 regular dividend.

The payment of any future dividends and any other returns of capital will be at the discretion of the Company’s board of directors and may be reduced, eliminated or increased and will be dependent upon the Company’s financial position, results of operations, available cash, cash flow, capital requirements, limitations under the Company’s debt indentures as described in Note 3, and other factors deemed relevant by the Company’s board of directors. The Company is a Delaware Corporation and under the General Corporate Law of the State of Delaware distributions may be restricted including a restriction that distributions, including stock purchases and dividends, do not result in an impairment of a corporation’s capital, as defined under Delaware Law.