Quarterly report pursuant to Section 13 or 15(d)

STOCKHOLDERS' EQUITY

v3.19.3
STOCKHOLDERS' EQUITY
9 Months Ended
Sep. 30, 2019
Equity [Abstract]  
STOCKHOLDERS' EQUITY

NOTE 10.             STOCKHOLDERS' EQUITY

During the nine months ended September 30, 2019, the Company paid $103.1 million  or $0.315 per share in cash dividends compared to $91.7 million or $0.28 per share during the same period in 2018.

During the third quarter ended September 30, 2019 and during the same period in 2018 the Company did not repurchase shares on the open market. 

The Company repurchases shares from employees for the payment of taxes on restricted shares that have vested. The Company repurchased $0.1 million and $0.2 million for the quarter ended September 30, 2019 and 2018, respectively and $9.9 million and $9.5 million of common stock during the nine months period ended September 30, 2019 and 2018, respectively. 

As more fully discussed in Note 17  of the Company's notes to the consolidated financial statements in its 2018 Annual Report on Form 10-K, time-lapse restricted shares and restricted stock units have been issued to officers and other management employees under the Company's Employee Stock Incentive Plans.  The Company issues new shares from its authorized but unissued share pool. At September 30, 2019, approximately 5.5 million shares of the Company's common stock were reserved for issuance.

ROLLINS, INC. AND SUBSIDIARIES

Time Lapse Restricted Shares and Restricted Stock Units

The following table summarizes the components of the Company's stock-based compensation programs recorded as expense:

 

    Three Months Ended     Nine months ended  
    September 30,     September 30,  
(in thousands)   2019     2018     2019     2018  
Time lapse restricted stock:                                
Pre-tax compensation expense   $ 3,305     $ 3,660     $ 10,891     $ 10,030  
Tax benefit     (982 )     (947 )     (2,728 )     (2,766 )
Restricted stock expense, net of tax   $ 2,323     $ 2,713     $ 8,163     $ (8,125 )

The following table summarizes information on unvested restricted stock outstanding as of September 30, 2019:

 

    Number of
Shares
      Average Grant-
Date Fair Value
 
Unvested Restricted Stock at December 31, 2018     2,724     $ 21.08  
Forfeited     (87 )     25.01  
Vested     (791 )     15.84  
Granted     484       38.40  
Unvested Restricted Stock at September 30, 2019     2,330     $ 26.32  

 

At September 30, 2019 and December 31, 2018, the Company had $44.7 million  and $39.2 million of total unrecognized compensation cost, respectively, related to time-lapse restricted shares that are expected to be recognized over a weighted average period of approximately 4.2 years and 4.1 years, respectively.