Item 5. Market for Registrant’s Common Equity
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDERS MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES
Equity compensation plan information is incorporated by reference from Part III, Item 12, "Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters," of this document, should be considered an integral part of Item 5. Our Common Stock is traded on the NASDAQ Global Select Market under the ticker symbol MGPI. As of February 19, 2021, there were approximately 343 holders of record of our Common Stock. According to reports received from NASDAQ, the average daily trading volume of our Common Stock (excluding block trades) ranged from 23,100 to 2,436,000 shares during the year ended December 31, 2020.
STOCK PERFORMANCE GRAPH
The following graph compares the cumulative total return of our Common Stock for the five year period ended December 31, 2020, against the cumulative total return of the S&P 500 Stock Index (broad market comparison), Russell 3000 - Beverage and Distillers (line of business comparison), and Russell 2000 - Consumer Staples (line of business comparison). The graph assumes $100 (one hundred dollars) was invested on December 31, 2015, and that all dividends were reinvested.
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PURCHASES OF EQUITY SECURITIES BY ISSUER
We did not sell equity securities during the quarter ended December 31, 2020.
Issuer Purchases of Equity Securities
(a) Total Number of
Shares (or
Units)
Purchased (b) Average Price Paid per Share (or Unit) (c) Total Number of Shares (or
Units) Purchased as Part of Publicly Announced Plans or Programs (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs (b)
October 1, 2020 through October 31, 2020 375 (a) $ 38.18 — $ 20,947,113
November 1, 2020 through November 30, 2020 11 (a) 42.15 — 20,947,113
December 1, 2020 through December 31, 2020 — — — 20,947,113
Total 386 —
(a) Vested RSU awards under the 2014 Plan that were purchased to cover employee withholding taxes.
(b) On February 25, 2019, our Board of Directors approved a $25,000 share repurchase plan commencing February 27, 2019 through February 27, 2022. Under the share repurchase program, we can repurchase stock from time to time for cash in open market purchases, block transactions, and privately negotiated transactions in accordance with applicable federal securities laws. This share repurchase program may be modified, suspended, or terminated by us at any time without prior notice.
ITEM 6. SELECTED FINANCIAL DATA
Year Ended December 31,
2020 (a)(b)(c)(d)
2019 (a)(c)(d)
2018 (a)(d)
2017 (a)(d)(f)(g)
2016 (a)(d)(e)
Consolidated Statements of Income Data:
Sales $ 395,521 $ 362,745 $ 376,089 $ 347,448 $ 318,263
Income before income taxes 52,601 45,937 48,980 52,758 44,717
Net income 40,345 38,793 37,284 41,823 31,184
Basic and Diluted Earnings Per Share ("EPS") 2.37 2.27 2.17 2.44 1.82
Dividends and Dividend Equivalents Per Common Share 0.48 0.40 0.32 1.01 0.12
Consolidated Balance Sheet Data:
Total assets 366,575 322,597 277,892 240,328 225,336
Long-term debt, less current maturities 38,271 40,659 31,628 24,182 31,642
(a) During 2020, 2019, 2017 and 2016, we determined that we would "more likely than not" realize a portion of our deferred tax asset and reduced our valuation allowance by $422, $168, $578 and $718, respectively. During 2018, we determined that we would not "more likely than not" realize a portion of our deferred tax asset and increased our valuation allowance by $1,304. (see Note 6 for additional information)
(b) Net income for 2020 included $633 insurance recovery income related to estimated business interruption losses of $1,728 for the ransonware cyber-attack. Net income also included $3,780 insurance recovery income for estimated business interruption and other related insurable costs of $4,947 related to the feed dryer fire incident in Atchison, Kansas. Additionally, net income includes $1,932 of CEO transition costs and $919 of business acquisition costs (Luxco).
(c) Net income for 2020 included legal fees of $585 in connection with the chemical release incident in Atchison, Kansas in October 2016. Additionally, net income for 2019 included the Company's agreement to pay a $1,000 fine, an administrative penalty of $251 and legal fees of $597. (see Note 9 for additional information)
(d) For 2020, 2019, 2018, and 2017, respectively, we received a combined federal and state tax effected excess tax benefit of $67, $3,336, $1,437, and $4,625 related to employee share-based compensation recognized as a reduction to income tax expense.
(e) Net income for 2016 included a legal settlement agreement and a gain on sale of long-lived assets of $3,385 before tax.
(f) In 2017, we completed the sale of our equity ownership interest in ICP to Pacific Ethanol, consistent with a Merger Agreement, and, as a result, recorded a gain on sale of equity method investment of $11,381 before tax, which is included in Net income for 2017.
(g) On December 22, 2017, the United States enacted tax reform legislation commonly known as the Tax Cuts and Jobs Act (the "Tax Act"), resulting in significant modifications to existing law. We recorded a provisional discrete net tax benefit in our Consolidated Statements of Income through Net income of $3,343 in 2017.
Selected Financial Information. Selected quarterly financial information (unaudited) is detailed in Note 14.
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