Stock-based Compensation

3 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-based compensation expense is included in general and administrative expenses in the condensed consolidated statements of operations. We recognized $2.1 million and $2.6 million of stock-based compensation expense related to stock options and restricted stock awards for the three months ended December 31, 2018 and December 31, 2017, respectively.

Stock Options

Following is a summary of stock option activity for the three months ended December 31, 2018:



	Three Months Ended
	December 31, 2018
	Shares		Weighted Average Exercise Price
Outstanding at beginning of period	533,052		$	14.26
Granted	25,230		10.38
Exercised	(1,000	)	7.56
Cancelled	(1,319	)	11.53
Outstanding at end of period	555,963		$	14.10
Exercisable at end of period	504,092		$	14.13
Vested or expected to vest in the future	552,799		$	14.13

As of December 31, 2018 and September 30, 2018, total unrecognized compensation cost related to unvested stock options was $0.3 million and $0.2 million, respectively. The cost remaining as of December 31, 2018 is expected to be recognized over a weighted-average period of 1.7 years.

Restricted Stock Awards

During the three months ended December 31, 2018, we issued time-based restricted stock awards that vest ratably over three years on each anniversary from the grant date and performance-based restricted stock awards with a payout subject to the achievement of performance and market conditions over a three-year period.

Following is a summary of restricted stock activity for the three months ended December 31, 2018:



	Three Months Ended December 31, 2018
	Performance-Based Restricted Shares		Time-Based Restricted Shares		Total Restricted Shares
Beginning of period	644,785		431,783		1,076,568
Granted ^(a)	467,819		441,991		909,810
Vested ^(a)	(309,843	)	(196,246	)	(506,089	)
Forfeited	(7,020	)	(21,329	)	(28,349	)
End of period	795,741		656,199		1,451,940

^(a) Grant and vesting activity during the three months ended December 31, 2018 include 86,050 shares that were issued above target based on the performance level achieved under performance-based restricted stock vesting in the current period.

As of December 31, 2018 and September 30, 2018, total unrecognized compensation cost related to unvested restricted stock awards was $14.8 million and $8.8 million, respectively. The remaining cost as of December 31, 2018 is expected to be recognized over a weighted average period of 2.2 years.