Note N - Stockholders' Equity

9 Months Ended

Dec. 23, 2018

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

NOTE N– STOCKHOLDERS’ EQUITY

1.

Dividend

s

On

May 31, 2018,

Nathan’s Board of Directors authorized the commencement of a regular dividend of

$1.00

per share per annum, payable at the rate of

$0.25

per quarter. Through

December 23, 2018,

the Company declared and paid

three

regular quarterly dividends of

$0.25

per common share aggregating

$3,139,000.

Effective

February 1, 2019,

the Board declared its

fourth

quarterly cash dividend of

$0.25

per share which is payable on

March 22, 2019

to stockholders of record as of the close of business on

March 11, 2019.

On

November 1, 2017,

the Company’s Board of Directors declared a special cash dividend of

$5.00

per share payable to stockholders of record as of

December 22, 2017

of which approximately

$20,923,000

was paid on

January 4, 2018

to the stockholders. The Company also accrued

$25,000

for the expected dividends payable on unvested restricted shares pursuant to the terms of the restricted stock agreement. As unvested restricted stock vests, the declared dividend is paid. The Company paid this

$25,000

during the

thirteen

weeks ended

June 24, 2018.

On

March 10, 2015,

the Company’s Board of Directors declared a special cash dividend of

$25.00

per share payable to stockholders of record as of

March 20, 2015

of which approximately

$115,100,000

was paid on

March 27, 2015

to the stockholders. The Company accrued

$1,000,000

for the expected dividends payable on unvested shares pursuant to the terms of the restricted stock agreements. As unvested restricted stock vests, the declared dividend is paid. As of

March 25, 2018

we had paid

$875,000

of the accrued dividend and the remaining

$125,000

was paid during the

thirteen

weeks ended

June 24, 2018.

Our ability to pay future dividends is limited by the terms of the Indenture, dated

November 1, 2017,

between the Company, certain of its wholly-owned subsidiaries, as guarantors and U.S. Bank National Association, as trustee and collateral trustee (the “Indenture”). In addition, the declaration and payment of any cash dividends in the future are subject to final determination of the Board and will be dependent upon our earnings and financial requirements.

2

. Common Stock Purchase Rights

On

June 5, 2013,

Nathan’s adopted a stockholder rights plan (the

“2013

Rights Plan”) under which all stockholders of record as of

June 17, 2013

received rights to purchase shares of common stock.

On

June 14, 2018,

the Company and American Stock Transfer and Trust Company, LLC, the Rights Agent, amended the

2013

Rights Plan. The Amendment postponed the expiration date to

September 30, 2018,

at which time it terminated.

3.

Stock Repurchase Programs

During the

thirty-nine

week period ended

December 23, 2018,

Nathan’s repurchased

14,390

shares of its common stock at a cost of approximately

$1.0

million pursuant to its

sixth

stock repurchase program.

In

2016,

the Company’s Board of Directors authorized increases to the

sixth

stock repurchase plan for the purchase of up to

1,200,000

shares of its common stock on behalf of the Company. As of

December 23, 2018,

Nathan’s had repurchased

954,132

shares at a cost of

$30,641,000

under the

sixth

stock repurchase plan. At

December 23, 2018,

there were

245,868

shares remaining to be repurchased pursuant to the

sixth

stock repurchase plan. The plan does

not

have a set expiration date. Purchases under the Company’s stock repurchase program

may

be made from time to time, depending on market conditions, in open market or privately-negotiated transactions, at prices deemed appropriate by management. There is

no

set time limit on the repurchases.

During the period from

October 2001

through

December 23, 2018,

Nathan’s purchased

5,141,763

shares of common stock at a cost of approximately

$78,303,000

pursuant to various stock repurchase plans previously authorized by the Board of Directors.