AVANTAX, INC. - 10-Q filing on 2015-04-30

Stockholders' Equity

3 Months Ended

Mar. 31, 2015

Stockholders’ Equity

Stock-based compensation: The Company included the following amounts for stock-based compensation expense, which related to stock options, restricted stock units (“RSUs”), and the Company’s employee stock purchase plan (“ESPP”), in the consolidated statements of comprehensive income (in thousands):



	Three months ended March 31,
	2015		2014
Cost of revenues	$	49	$	159
Engineering and technology	292		429
Sales and marketing	430		919
General and administrative	1,928		1,901
Total	$	2,699	$	3,408
Excluded and capitalized as part of internal-use software	$	16	$	31

Total net shares issued for stock options exercised, RSUs vested, and shares purchased pursuant to the ESPP were as follows (in thousands):



	Three months ended March 31,
	2015	2014
Stock options exercised	171	8
RSUs vested	58	76
Shares purchased pursuant to ESPP	52	36
Total	281	120

Stock repurchase program: In February 2013, the Company’s Board of Directors approved a stock repurchase program whereby the Company may purchase its common stock in open-market transactions. In May 2014, the Board of Directors increased the repurchase authorization, such that the Company may repurchase up to $85.0 million of its common stock, and extended the repurchase period through May 2016. Repurchased shares will be retired and resume the status of authorized but unissued shares of common stock. During the three months ended March 31, 2015, the Company purchased 0.3 million shares in open-market transactions at a total cost of approximately $4.4 million and an average price of $14.21 per share, exclusive of purchase and administrative costs. There was no repurchase activity during the three months ended March 31, 2014. As of March 31, 2015, the Company may repurchase an additional $32.0 million, which also takes into consideration share repurchases during 2013 and 2014 of $48.6 million, of its common stock under the repurchase program.