Stock repurchase program

9 Months Ended

Mar. 31, 2020

Equity [Abstract]

Stock repurchase program

Stock repurchase program

In February 2019, our board of directors authorized a program for the repurchase of up to $20.0 million of our shares of common stock through open market purchases. The term of the program is 18 months. The timing and amount of repurchase transactions under this program will depend on market conditions, cash flow and other considerations. Under this program, we utilized $5.3 million of cash to repurchase 925,624 shares of our common stock at an average purchase price of $5.76 per share during the three months ended March 31, 2020. We utilized $9.4 million of cash to repurchase 1,692,207 shares of our common stock at an average purchase price of $5.53 per share during the nine months ended March 31, 2020. As of March 31, 2020, the remaining authorized amount of stock repurchases that may be made under this repurchase program was $9.3 million.

Repurchased shares are retired and designated as authorized but unissued shares. We use the par value method of accounting for our stock repurchases. Under the par value method, common stock is first charged with the par value of the shares involved. The excess of the cost of shares acquired over the par value is allocated to additional paid-in capital, or APIC, based on an estimated average sales price per issued share with the excess amounts charged to retained earnings. As a result of our stock repurchases during the nine months ended March 31, 2020, we reduced common stock and APIC by an aggregate of $5.8 million and charged $3.6 million to retained earnings.