Shareholders' Equity and Stock-Based Compensation | 10 . Dividends The Company has paid a quarterly dividend since the second quarter of 2017. Dividend activity for the three months ended March 31, 2019 was as follows: Three months ended (dollars in millions, except per share values) March 31, 2019 Dividend declared on February 5, 2019 Shareholders of record on February 19, 2019 Dividend paid on March 05, 2019 Dividend per share $ 0.0725 Cash dividend paid $ 5.2 Dividend activity for the three months ended March 31, 2018 was as follows: Three months ended (dollars in millions, except per share values) March 31, 2018 Dividend declared on January 26, 2018 Shareholders of record on February 9, 2018 Dividend paid on February 23, 2018 Dividend per share $ 0.07 Cash dividend paid $ 5.1 Share Repurchases On November 20, 2018, the Company’s Board of Directors authorized a $20.0 million share repurchase program. Under the terms of the share repurchase program, the Company has the ability to repurchase shares through a variety of methods through December 31, 2019. The share repurchase program does not require the Company to acquire any specific number of shares. The Company settled the repurchase of 5,346 shares for $0.1 million during the three months ended March 31, 2019 and 1,627,248 shares for $19.4 million during the year ended December 31, 2018. Approximately $0.5 million remains available for share repurchases as of March 31, 2019 pursuant to the Company’s share repurchase program. Stock-Based Compensation The Company recognizes cumulative stock-based compensation expense for the portion of the awards for which the service period and performance conditions, as applicable, have been satisfied. Stock-based compensation expense is included in selling, general and administrative expense in the condensed consolidated statements of income and comprehensive income. The related deferred tax benefit for stock-based compensation recognized was $0.4 million and $0.3 million for the three months ended March 31, 2019 and 2018, respectively. Emerald Expositions Events, Inc. 2019 Employee Stock Purchase Plan (the “ESPP”) In January 2019, the Board of Directors approved the ESPP, subject to stockholder approval. The ESPP requires that participating employees must be customarily employed for at least 20 hours per week, have completed at least 6 months of service, and have compensation (as defined in the ESPP) not greater than $150,000 in the 12-month period before the enrollment date to be eligible to participate in the ESPP. Under the ESPP, eligible employees will receive a 10% discount from the lesser of the closing price on the first day of the offering period and the closing price on the purchase date. The Company reserved 500,000 shares of its common stock for issuance under the ESPP. The ESPP expense recognized by the Company was not material for the three months ended March 31, 2019 and was zero for the three months ended March 31, 2018. The Company’s initial ESPP offering period began in February 2019 and will end in August 2019. The Company has issued no shares to employees under the ESPP as of March 31, 2019. Restricted Stock Units The Company periodically grants RSUs that contain service and, in certain instances, performance conditions to certain directors, executives and employees. Stock-based compensation expense relating to RSU activity recognized in the three months ended March 31, 2019 and 2018 was $0.8 million and $0.4 million, respectively. There was a total of $8.7 million of unrecognized stock-based compensation expense at March 31, 2019 related to unvested RSUs expected to be recognized over a weighted-average period of 3.3 years. RSU activity for the three months ended March 31, 2019 was as follows: (share data in thousands, except per share data) Number of RSUs Weighted Average Grant Date Fair Value per Share Unvested balance, December 31, 2018 403 $ 20.91 Granted 425 12.47 Forfeited (49 ) 21.81 Vested (49 ) 21.93 Unvested balance, March 31, 2019 730 $ 15.87 Stock Options The Company recognized stock-based compensation expense relating to stock option activity of $0.8 million for the three months ended March 31, 2019 and 2018. Stock option activity for the three months ended March 31, 2019, was as follows: Weighted-Average Number of Options Exercise Price per Option Remaining Contractual Term Aggregate Intrinsic Value (share data in thousands, except per share data) (years) (millions) Outstanding at December 31, 2018 7,085 $ 12.62 Granted 818 12.47 Exercised (231 ) 8.00 Forfeited (109 ) 14.79 Outstanding at March 31, 2019 7,563 $ 12.71 5.3 $ 13,571 Exercisable at March 31, 2019 5,043 $ 11.15 3.5 $ 12,810 The aggregate intrinsic value is the amount by which the fair value of the Company’s common stock exceeded the exercise price of the options as of the close of trading hours on the New York Stock Exchange on March 31, 2019, for those options for which the market price was in excess of the exercise price. There was a total of $5.1 million unrecognized stock-based compensation expense at March 31, 2019 related to unvested stock options expected to be recognized over a weighted-average period of 1.2 years. |