Stockholders' Equity

3 Months Ended

Mar. 31, 2015

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity — Our authorized capital stock consists of 75 million shares of common stock, par value $0.0001 per share, and 25 million shares of preferred stock, par value $0.0001 per share.

Changes in Stockholders’ Equity. Changes in stockholders’ equity for the three months ended March 31, 2015 consisted of:

	(Dollars in thousands)
Balance at January 1, 2015	$	279,059
Net income for the three months ended March 31, 2015	3,917
Cash dividends declared	(2,749		)
Amortization of stock based compensation	443
Stock repurchase - 2011 LTIP	(3,825		)
Stock repurchase - other	(466		)
Other	(127		)
Balance at March 31, 2015	$	276,252

General. At March 31, 2015 and December 31, 2014, there were 21,739,412 and 21,978,762 shares of common stock outstanding, respectively, and no shares of preferred stock outstanding.

The following table summarizes the activities under the 2012 Equity Incentive Award Plan (the "2012 Equity Plan") from inception through March 31, 2015:

	Activity
Total equity securities available at May 16, 2012	2,194,986
Add: 2011 LTIP RSUs forfeited by eligible employees	209,382
Add: Restricted shares of common stock ("restricted stock") forfeited by non-executive member of the Board of Directors	3,189
Less: 2011 LTIP RSUs awarded to eligible employees	(557,484	)
Less: Common stock awarded to eligible employees	(5,820	)
Less: Restricted stock awarded to non-executive members of the Board of Directors	(60,290	)
Less: Short-Term Incentive Plan (“STIP”) common stock awarded to an eligible employee	(41,702	)
Less: 2015 LTIP RSUs awarded to eligible employees	(254,777	)
Total equity securities available at March 31, 2015	1,487,484

2015 LTIP On December 9, 2014, our Board of Directors adopted a long-term incentive program (over a 36 month vesting period) that included a stock component in the form of RSUs. The 2015 LTIP provides eligible employees the opportunity to earn RSUs based upon the achievement of performance goals established by our Board of Directors for our consolidated revenue and operating cash flows (as defined by the Company) during the period January 1, 2015 through December 31, 2017 (“the performance period”), and continued employment with the Company. Our Board of Directors also approved that future cash dividends related to the RSUs will be set aside and paid in cash to each eligible employee when the RSUs are converted into shares of common stock. Existing RSUs would be converted into shares of common stock on the earlier of a change in control of the Company (as defined in the 2012 Equity Plan) or on or after the third business day following the day that we file our 2017 Annual report on Form 10-K ("2017 Annual Report”) with the SEC but in no event later than December 31, 2018. Any unvested RSUs awarded under the 2015 LTIP and the related cash dividends are forfeited if the participant terminates employment with the Company.

On January 2, 2015, our Board of Directors granted 254,777 RSUs to eligible employees under the 2012 Equity plan for the 2015 LTIP pursuant to a Restricted Stock Unit Agreement with a grant date fair value of $4.4 million (net of estimated forfeitures). As of March 31, 2015 there were 254,777 RSUs outstanding relating to the 2015 LTIP.

A total of $0.4 million was included in stock based compensation expense for the three months ended March 31, 2015 relating to the 2015 LTIP.

The following table details activities with respect to RSUs issued and outstanding under the 2015 LTIP for the three months ended March 31, 2015:

	Shares	Weighted- Average Grant Date Fair Value		Total Unrecognized Compensation Cost (net of estimated forfeitures) (In thousands)		Weighted-Average Period Over Which Cost is  Expected to be Recognized (In months)
Non-vested RSUs at January 1, 2015	—	$	—
Granted	254,777	17.36
Vested	—	—
Forfeited	—	—
Non-vested RSUs at March 31, 2015	254,777	$	17.36	$	4,073	33

The following table reflects the stock based compensation expense for the awards under the 2015 LTIP and predecessor 2011 LTIP:

	For the Three Months Ended March 31,
Equity Awards	2015		2014
	(Dollars in thousands)
2011 LTIP	$	—	$	1,014
2015 LTIP	350		—
Board of Directors Compensation	93		72
Total stock based compensation	$	443	$	1,086

The $0.4 million in stock based compensation expense for the 2015 LTIP relates to the 254,777 shares granted on January 2, 2015 to eligible employees. The 2011 LTIP vested on December 31, 2014 and was subsequently paid to eligible employees and therefore, we did not incur any additional expense in 2015 related to this plan. The increase in the Board of Directors compensation reflects the quarterly issuance of restricted shares of common stock ("restricted stock") to each director as part of their annual compensation for service on the Board of Directors.

Cash Dividends to Stockholders. The following table details our cash dividend payments made in 2015. Cash dividends paid as disclosed in the statements of cash flows for the three months ended March 31, 2015 and 2014 included previously declared cash dividends on shares of vested restricted stock issued to our non-executive directors. Cash dividends on RSUs and restricted stock have been accrued and are paid when the applicable vesting conditions are met. Accrued cash dividends on forfeited restricted stock and RSUs are also forfeited.

Declaration Date	Record Date	Payment Date	Per Share Amount		Total  Payment(1)
					(Dollars in thousands)
March 4	March 18	March 30	$	0.125	$	2,715
	Total		$	0.125	$	2,715

⁽¹⁾  The total payment reflects the cash dividends paid in relation to common stock and vested restricted stock.

Future Cash Dividends to Stockholders. On April 29, 2015, our Board of Directors declared a regular quarterly cash dividend of $0.125 per share of common stock, with a record date of May 22, 2015, and a payment date of June 25, 2015. This cash dividend of approximately $2.7 million will be paid from available cash on hand.

Common Stock Repurchase Program. On October 29, 2014, the Board of Directors extended the common stock repurchase program through December 31, 2015. In extending the common stock repurchase plan, the Board of Directors also maintained the repurchase authority of $15.0 million as of January 1, 2015. During the three months ended March 31, 2015, we purchased 27,467 shares of common stock for $0.5 million.

The following table presents information with respect to purchases made by the Company during the three months ended March 31, 2015:

Period	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of the Publicly Announced Plans or Programs	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Publicly Announced Plans or Programs
					(Dollars in thousands)
Beginning Balance					$	15,000
January 1 through January 31, 2015	16,031	$	16.92	16,031	14,729
February 1 through February 28, 2015	1,234	16.98		1,234	14,708
March 1 through March 31, 2015	230,532	17.34		10,202	14,536
Total	247,797	$	17.31	27,467

Other. For 2015, the Board of Directors intends to return a total of $26.0 million to stockholders in the form of dividends and/ or common stock repurchases.

Additional Paid-in Capital. For the three months ended March 31, 2015, additional paid-in capital decreased by $4.0 million to $122.7 million at March 31, 2015 from $126.7 million at December 31, 2014. The decrease in the three months ended March 31, 2015 was due primarily to the repurchase of shares of common stock for income tax withholding resulting from the issuance of common stock under the 2011 LTIP.

Net Income per Common Share. Basic net income per common share is computed on the basis of the weighted average common shares outstanding. Diluted net income per common share is computed on the basis of the weighted average common shares outstanding plus the effect of all potentially dilutive common shares including outstanding restricted stock and RSUs, which are treated as contingently issuable shares, using the “treasury stock” method. The components of basic and diluted net income per common share were as follows for the periods stated:

	For the Three Months Ended March 31,
	2015		2014
	(Dollars in thousands, except share and per share amounts)
Net income	$	3,917	$	4,890
Weighted average shares of common stock outstanding	21,898,792		21,638,198
Dilutive effect of restricted stock and RSUs	154,223		399,598
Weighted average shares of common stock and common stock equivalents	22,053,015		22,037,796
Net income per common share
Basic	$	0.18	$	0.23
Diluted	$	0.18	$	0.22