Quarterly report pursuant to Section 13 or 15(d)

Note 8 - Stockholders' Equity

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Note 8 - Stockholders' Equity
9 Months Ended
Sep. 30, 2020
Notes to Financial Statements  
Stockholders' Equity Note Disclosure [Text Block]

8. STOCKHOLDERS’ EQUITY

 

Dividends

 

The following table summarizes the Company’s cash dividend activity for the nine months ended September 30, 2020 (in thousands, except per share data):

 

Declaration Date

 

Per Share

   

Amount

 

Record Date

 

Payment Date

February 10, 2020

  $ 0.20     $ 2,285  

February 25, 2020

 

March 6, 2020

May 4, 2020

    0.20       2,285  

May 19, 2020

 

May 29, 2020

August 3, 2020     0.20       2,285   August 18, 2020   August 28, 2020
    $ 0.60     $ 6,855        

 

The declaration and payment of any future dividends on shares of common stock will be at the sole discretion of the Company’s Board of Directors.

 

Stock Repurchases

 

On January 12, 2016, the Board of Directors authorized an increase to the Company’s stock repurchase program first approved on July 28, 2015 from $15.0 million to $70.0 million. Repurchases are expected to be executed to the extent that the Company’s earnings and cash-on-hand allow, and will be made in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Exchange Act. For all or a portion of the authorized repurchase amount, the Company may enter into one or more plans that are compliant with Rule 10b5-1 of the Exchange Act that are designed to facilitate these purchases. The stock repurchase program does not require the Company to acquire a specific number of shares, and may be suspended from time to time or discontinued.

 

On May 16, 2019, the Company’s Board of Directors authorized the Company to proceed with the purchase of up to $8.0 million in shares of common stock under the foregoing stock repurchase program. In connection therewith, the Company was advised that George K. Broady, a director of the Company and beneficial owner of more than 5% of its outstanding shares of common stock, would participate in the stock repurchase program through The George K. Broady 2012 Irrevocable Trust (the "Broady Trust") on a basis roughly proportional to his family’s ownership interest (see Note 9). During May 2019, the Company authorized its broker to proceed with the purchase of shares of the Company’s common stock in the open market for a total purchase price of $4.7 million in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Exchange Act. The open market repurchases were completed on May 31, 2019. The stock repurchases, which included both open market purchases and the purchase of shares from the Broady Trust, resulted in the Company purchasing a total of 612,729 shares of its common stock for an aggregate purchase price of $6.7 million, plus transaction costs.

 

On August 6, 2019, the Company’s Board of Directors authorized the Company to proceed with additional purchases under the foregoing stock repurchase program in the open market. During August and September 2019, the Company purchased a total of 383,127 shares of common stock in the open market for an aggregate purchase price of $2.9 million, plus transaction costs.

 

As of September 30, 2020, $21.9 million of the $70.0 million stock repurchase program approved on July 28, 2015 and increased on January 12, 2016 remained available for future purchases, inclusive of related estimated income tax.

 

Restricted Stock

 

At the Company’s annual meeting of stockholders held on April 7, 2016, the Company’s stockholders approved the Natural Health Trends Corp. 2016 Equity Incentive Plan (the “2016 Plan”) to replace its 2007 Equity Incentive Plan. The 2016 Plan allows for the grant of various equity awards including incentive stock options, non-statutory options, stock, stock units, stock appreciation rights and other similar equity-based awards to the Company’s employees, officers, non-employee directors, contractors, consultants and advisors of the Company. Up to 2,500,000 shares of the Company’s common stock (subject to adjustment under certain circumstances) may be issued pursuant to awards granted. At September 30, 2020, 1,219,583 shares remained available for issuance under the 2016 Plan.

 

The following table summarizes the Company’s restricted stock activity under the 2016 Plan:

 

   

Shares

    Wtd. Avg. Price at Date of Issuance  

Nonvested at December 31, 2019

    957,682     $ 7.34  

Vested

    (293,583 )   $ 7.53  

Nonvested at September 30, 2020

    664,099     $ 7.25  

 

Accumulated Other Comprehensive Loss

 

The changes in accumulated other comprehensive loss by component for the nine months of 2020 were as follows (in thousands):

 

    Foreign Currency Translation Adjustment     Unrealized Gains (Losses) on Available-For-Sale Investments    

Total

 

Balance, December 31, 2019

  $ (1,245 )   $ (19 )   $ (1,264 )
Other comprehensive income     355       16       371  
Balance, September 30, 2020   $ (890 )   $ (3 )   $ (893 )