Stock-based Compensation

Stock-based compensation expense is included in general and administrative expenses in the condensed consolidated statements of operations. Following is a summary of stock-based compensation expense related to stock options and restricted stock awards for the three and six months ended March 31, 2019 and March 31, 2018, respectively.



	Three Months Ended				Six Months Ended
	March 31,				March 31,
in thousands	2019		2018		2019		2018
Stock-based compensation expense	$	2,180	$	2,598	$	4,294	$	5,208

Stock Options

Following is a summary of stock option activity for the six months ended March 31, 2019:



	Six Months Ended
	March 31, 2019
	Shares		Weighted Average Exercise Price
Outstanding at beginning of period	533,052		$	14.26
Granted	25,230		10.38
Exercised	(26,650	)	10.44
Cancelled	(2,319	)	9.81
Outstanding at end of period	529,313		$	14.29
Exercisable at end of period	478,064		$	14.33
Vested or expected to vest in the future	526,534		$	14.31

As of March 31, 2019 and September 30, 2018, total unrecognized compensation cost related to unvested stock options was $0.3 million and $0.2 million, respectively. The remaining cost as of March 31, 2019 is expected to be recognized over a weighted-average period of 1.5 years.

Restricted Stock Awards

During the six months ended March 31, 2019, the Company 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 six months ended March 31, 2019:



	Six Months Ended March 31,
	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	)	(204,977	)	(514,820	)
Forfeited	(7,020	)	(23,647	)	(30,667	)
End of period	795,741		645,150		1,440,891

^(a) Grant and vesting activity during the six months ended March 31, 2019 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 March 31, 2019 and September 30, 2018, total unrecognized compensation cost related to unvested restricted stock awards was $13.1 million and $8.8 million, respectively. The remaining cost as of March 31, 2019 is expected to be recognized over a weighted average period of 2.0 years.