Stock Based Compensation | 13. Stock Based Compensation—The Company accounts for stock-based awards to employees and directors in accordance with FASB ASC 718, “ Share-Based Payment, The following tables illustrate the Company’s stock based compensation, unamortized stock-based compensation, and remaining weighted average period for the three and six months ended June 30, 2019 and 2018. Stock-Based Compensation for the Three months ended Stock-Based Compensation for the Six months ended Unamortized Stock-Based Compensation Remaining Weighted Average Period (years) June 30, 2019 Restricted Stock $ 981 $ 1,669 $ 8,091 2.2 Unrestricted Stock 99 195 385 0.9 Performance Based Restricted Stock 430 1,131 3,863 2.2 Total $ 1,510 $ 2,995 $ 12,339 June 30, 2018 Restricted Stock $ 892 $ 1,557 $ 7,071 2.2 Unrestricted Stock 96 193 353 0.9 Performance Based Restricted Stock 481 1,028 3,336 2.2 Total $ 1,469 $ 2,778 $ 10,760 Stock Options—During the three and six months ended June 30, 2019, the Company did not grant any employees options to acquire shares of common stock. Option activity within each plan is as follows: Incentive Stock Option Plans Weighted Average Price Per Share Exercisable Weighted Average Price Per Share Balance outstanding, December 31, 2018 384,064 $ 9.10 $ 9.10 Options exercised (14,677 ) 9.18 — Balance outstanding, March 31, 2019 369,387 9.10 9.10 Options exercised (4,313 ) 8.71 — Balance outstanding, June 30, 2019 365,074 $ 9.10 $ 9.10 Information relating to stock options at June 30, 2019, summarized by exercise price is as follows: Outstanding Weighted Average Exercisable Weighted Average Exercise Price Per Share Shares Remaining Life (Months) Exercise Price Shares Exercise Price Incentive Stock Option Plan: $7.50 218,045 17 $ 7.5 218,045 $ 7.50 $11.32—$14.49 147,029 64 $ 11.48 147,029 $ 11.48 365,074 $ 9.10 365,074 $ 9.10 The weighted average exercise prices for options granted, and exercisable, and the weighted average remaining contractual life for options outstanding as of June 30, 2019, were as follows: As of June 30, 2019 Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Months) Intrinsic Value (thousands) Incentive Stock Option Plan: Outstanding 365,074 $ 9.10 36 $ 2,302 Expected to Vest 365,074 $ 9.10 36 $ 2,302 Exercisable 365,074 $ 9.10 36 $ 2,302 Common stock grants — Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Nonvested shares at December 31 st 587,210 $ 17.59 391,753 $ 15.61 Granted 297,679 17.34 254,972 19.97 Vested (105,582 ) 15.21 (8,800 ) 12.07 Forfeited (6,589 ) 17.69 (5,265 ) 16.51 Nonvested shares at March 31 st 772,718 17.77 632,660 17.41 Granted 40,522 13.34 22,308 23.66 Vested (32,771 ) 13.35 (20,313 ) 22.82 Forfeited (21,184 ) 17.77 (6,424 ) 17.25 Nonvested shares at June 30th 759,285 $ 17.72 628,231 $ 17.40 Common stock grants — During the six months ended June 30, 2019, the Company issued a total of 338,201 shares of common stock to employees and directors of which 31,771 shares vested immediately, 9,000 shares will vest between a range of 95 days to 1,115 days, 6,751 shares will vest in three equal tranches on the employee’s anniversary, and the remaining shares will cliff vest after three years of service. The shares granted in 2019 were average fair valued at $16.86 per share. The fair value was determined by using the publicly traded share price as of the market close on the date of grant. The Company will recognize as expense the fair value of restricted shares over the required service period. During the six months ended June 30, 2018, the Company issued a total of 277,280 shares of common stock to employees and directors of which 19,313 shares vested immediately, 19,760 shares will vest between a range of 178 days to 1,060 days, and the remaining shares will cliff vest after three years of service. The shares granted in 2018 were average fair valued at $20.27 per share. The fair value was determined by using the publicly traded share price as of the market close on the date of grant. The Company will recognize as expense the fair value of restricted shares over the required service period. During the three months ended June 30, 2019 and 2018, the Company recognized stock-based compensation related to restricted shares of $981 and $892, respectively. During the six months ended June 30, 2019 and 2018, the Company recognized stock-based compensation related to restricted shares of $1,669 and $1,557, respectively. As of June 30, 2019, the Company had approximately $8,091 of unamortized stock-based compensation related to unvested restricted shares. This amount will be recognized over the weighted-average period of 2.2 years. This projected expense will change if any restricted shares are granted or cancelled prior to the respective reporting periods or if there are any changes required to be made for estimated forfeitures. Performance-Based Shares — Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Nonvested shares at December 31 st 287,077 $ 16.87 186,057 $ 14.93 Granted 137,557 16.47 122,446 18.79 Additional granted based on performance achievement 41,568 12.88 — — Vested (90,872 ) 14.73 (14,625 ) 11.01 Forfeited (3,543 ) 15.98 (1,765 ) 15.40 Nonvested shares at March 31 st 371,787 16.81 292,113 16.74 Granted — — 3,850 22.69 Forfeited (14,022 ) 17.11 (2,179 ) 17.67 Nonvested shares at June 30th 357,765 $ 16.80 293,784 $ 16.81 Performance-Based Shares — During the six months ended June 30, 2019, the Company issued a total of 137,557 performance-based shares to employees. The shares granted have an average fair value of $16.47. The fair value was determined by using the publicly traded share price as of the market close on the date of grant. The Company will recognize, as expense, the fair value of the performance based shares over the required service period from grant date. Performance-Based Shares — During the six months ended June 30, 2018, the Company issued a total of 126,296 performance-based shares to employees. The shares granted have an average fair value of $18.91. The fair value was determined by using the publicly traded share price as of the market close on the date of grant. The Company will recognize as expense the fair value of the performance-based shares over the required service period from grant date. As of June 30, 2019, performance-based shares related to EBIT and net sales have an average fair value of $17.34 per share. The fair value was determined by using the publicly traded share price as of the market close on the date of grant. The performance based shares related to the Company’s stock price have an average fair value of $15.46 per share. The fair value was determined by using the Monte Carlo valuation method. For awards with performance conditions, the Company recognizes share-based compensation cost on a straight-line basis for each performance criteria over the implied service period. During the three months ended June 30, 2019 and 2018, the Company recognized stock-based compensation related to performance-based shares of $430 and $481, respectively. During the six months ended June 30, 2019 and 2018, the Company recognized stock-based compensation related to performance based shares of $1,131 and $1,028, respectively. As of June 30, 2019, the Company had approximately $3,863 of unamortized stock-based compensation expense related to unvested performance-based shares. This amount will be recognized over the weighted-average period of 2.2 years. This projected expense will change if any performance-based shares are granted or cancelled prior to the respective reporting periods or if there are any changes required to be made for estimated forfeitures. Performance Incentive Stock Options—During the six months ended June 30, 2019 and 2018, the Company did not grant any employees performance incentive stock options to acquire shares of common stock. Performance option activity is as follows: Incentive Stock Option Plans Weighted Average Price Per Share Exercisable Weighted Average Price Per Share Balance outstanding, December 31, 2018 140,411 $ 11.49 $ 11.49 Options exercised (5,735 ) 11.49 11.49 Balance outstanding, March 31, 2019 and June 30, 2019 134,676 $ 11.49 $ 11.49 Information relating to stock options at June 30, 2019 summarized by exercise price is as follows: Outstanding Weighted Average Exercisable Weighted Average Exercise Price Per Share Shares Remaining Life (Months) Exercise Price Shares Exercise Price Performance Incentive Stock Option Plan: 134,676 66 $ 11.49 134,676 $ 11.49 The weighted average exercise prices for options granted and exercisable and the weighted average remaining contractual life for options outstanding as of June 30, 2019 are as follows: As of June 30, 2019 Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Months) Intrinsic Value (thousands) Performance Incentive Stock Option Plan: Outstanding 134,676 $ 11.49 66 $ 528 Expected to Vest 134,676 $ 11.49 66 $ 528 Exercisable 134,676 $ 11.49 66 $ 528 |