Stock-Based Compensation

3 Months Ended

Dec. 31, 2015

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

9.Stock-Based Compensation

During the three months ended December 31, 2015, the Company issued 181,400 shares of restricted stock under its 2014 Long Term Incentive Plan, as amended (the “Plan”). The fair value of the restricted stock on the date of grant was $14.87 per share. The unrecognized compensation cost on the date of grant related to these awards was $2.7 million and will be charged to expense over the next four years as the restrictions lapse. Compensation expense for restricted stock awards was determined based on the closing market price of the Company’s stock on the date of grant applied to the total number of shares that are anticipated to fully vest. Recipients of restricted stock awards are entitled to vote such shares and are entitled to dividends, if paid.

During the three months ended December 31, 2015, the Company also issued 69,300 nonqualified stock options under the Plan. The options issued are based upon three tiers, each with separate market and service based vesting conditions.Market based vesting conditions are based on achieving a specified market return on the Company’s stock price. Compensation expense for the nonqualified stock option awards was determined based on a Monte Carlo simulation, which incorporates the possibility that the market conditions may not be satisfied. The weighted average grant date fair value of the options issued was determined to be $5.96 per option, with unrecognized compensation costs related to the awards of $0.4 million. The compensation costs will be charged to expense over the requisite service period of the options, ranging from 18 to 36 months.

As of December 31, 2015, the Company had unrecognized compensation expense of $10.8 million relating to restricted stock awards which is expected to be recognized over a weighted average period of 3.2 years.  In addition, the Company had $0.4 million of unrecognized compensation expense related to nonqualified stock option awards which is expected to be recognized over a weighted average period of 2.1 years.

As of December 31, 2015, a total of 280,150 shares of restricted stock and 159,000 nonqualified stock options shares were outstanding.