Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. CatchMark Timber Trust, Inc. (1341141) 10-Q published on Aug 01, 2019 at 4:07 pm
Reporting Period: Jun 29, 2019
On June 28, 2019, pursuant to the Amended and Restated Independent Directors' Compensation Plan (a sub-plan of CatchMark's LTIP), CatchMark issued the annual equity-based grants to its independent directors. Each independent director received a grant with a fair value of $70,000, which will vest on the date of CatchMark's 2020 annual meeting of stockholders. At their elections, three independent directors each received 6,699 shares of CatchMark's restricted stock and the remaining three independent directors each received 6,699 units of a class of limited partnership interests (the "LTIP Units") in CatchMark Timber OP. The LTIP Units are structured to qualify as "profits interests" for federal income tax purposes that, subject to certain conditions, including vesting, are convertible by the holder into CatchMark Timber OP's common units. Aggregate grant date fair value of $0.4 million will be amortized over the one-year vesting period within general and administrative expenses. See Note 8 — Noncontrolling Interest in our Annual Report on Form 10-K for the year ended December 31, 2018 for further information on LTIP Units.
Over the last year, we have undertaken a capital recycling program whereby we sell large blocks of timberland properties to generate proceeds to fund capital allocation priorities, including, but not limited to redeployment into more desirable timberland investments, paying down outstanding debt, or repurchasing shares of our common stock. Such large dispositions are not part of core operations, are infrequent in nature and may or may not have a higher or better use than timber production or result in a price premium above the land’s timber production value.
On August 7, 2015, our board of directors approved a share repurchase program for up to $30.0 million of our common stock at management's discretion (the "SRP"). The program has no set duration and the board may discontinue or suspend the program at any time. During the six months ended June 30, 2019, we repurchased 271,588 shares of our common stock at an average price of $8.84 per share for a total of approximately $2.4 million under the SRP, including transaction costs. All common stock purchases under the SRP were made in open-market transactions and were funded with cash on-hand. As of June 30, 2019, we had 49.0 million shares of common stock outstanding and may repurchase up to an additional $16.3 million under the SRP. We can borrow up to $30.0 million under the Multi-Draw Term Facility to repurchase our common stock. Management believes that opportunistic repurchases of our common stock are a prudent use of capital resources.
Net cash provided by investing activities for the six months ended June 30, 2019 was $4.0 million as compared to $32.2 million used during the six months ended June 30, 2018. We did not make any direct acquisitions in the first half of 2019 as compared to making an earnest money deposit of $30.0 million for the Triple T Timberlands and option payments of $3.6 million for the Bandon Property in the second quarter of 2018. We received $5.3 million in gross proceeds from large dispositions during the first half of 2019, offsetting a $2.7 million decrease in distributions from the Dawsonville Bluffs Joint Venture.
Net cash used in financing activities for the six months ended June 30, 2019 was $16.0 million as compared to $16.1 million provided by financing activities for the six months ended June 30, 2018. We paid cash distributions of $13.2 million to our stockholders during the six months ended June 30, 2019, funded from net cash provided by operating activities. We repurchased $2.4 million in shares of our common stock under the SRP using cash on-hand. Net cash provided by financing activities for the six months ended June 30, 2018 included $69.0 million of net proceeds from our equity offering conducted in March 2018 and proceeds from borrowings used to fund the Triple T Timberlands earnest money deposit.