SHAREHOLDERS' EQUITY (Block)

9 Months Ended

Sep. 30, 2016

Stockholders Equity Note Abstract

Stockholders Equity Note Disclosure Text Block

11. SHAREHOLDERS’ EQUITY

Dividends

During the second quarter of 2016, the Company commenced a quarterly $0.075per share common stock dividend program, with payments that approximate $2.9million per quarter. Any future dividends will be at the discretion of the Board of Directors based upon the relevant factors at the time of such consideration, including, without limitation, compliance with the restrictions set forth in the Company’s New Credit Facility.

The Company paid dividends of $0.4million on its Preferred in each of the first three quarters of 2016. In October 2016, the Company paid a dividend on its Preferred of $0.6million.

Dividend Equivalents

The Company’s grants of RSUs include the right, upon vesting, to receive a cash payment equal to the aggregate amount of dividends, if any, that holders would have received on the shares of common stock underlying their RSUs if such RSUs had been vested during the period.

The following table presents the amounts accrued and unpaid on unvested RSUs:

		Dividend Equivalent Liabilities
	Balance Sheet	September 30,		December 31,
	Location	2016		2015
		(amounts in thousands)
Short-term	Other current liabilities	$	87	$	-
Long-term	Other long-term liabilities		365		210
Total		$	452	$	210

Employee Stock Purchase Plan

The Company adopted an employee stock purchase plan (“ESPP”)during the second quarter of 2016 that commenced with the third quarter of 2016. The ESPP allows participants to purchase the Company’s stock equal to 85% of the market value of such shares on the purchase date. Under the ESPP, the purchase of stock is limited to the lesser of an amount not to exceed 15% of an employee’s annual gross earnings or an annual maximum limitation of $25,000per year. The maximum number of shares authorized to be issued under the ESPP is 1.0million. Pursuant to this plan, the Company does not record compensation expense to the employee as income subject to tax on the difference between the market value and the purchase price, as this plan was designed to meet the requirements of Section 423(b) of the Internal Revenue Code. The Company recognizes the 15% discount in the Company’s consolidated statements of operations as non-cash compensation expense.

	Nine Months Ended
	September 30,
	2016		2015
	(amounts in thousands)
Number of shares purchased		18		-
Non-cash compensation expense recognized	$	34	$	-