Stock-based Compensation

9 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Abstract]

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 nine months ended June 30, 2021 and 2020, respectively.


	Three Months Ended				Nine Months Ended
	June 30,				June 30,
in thousands	2021		2020		2021		2020
Stock-based compensation expense	$	3,194	$	1,659	$	9,254	$	4,869

Stock Options

Following is a summary of stock option activity for the nine months ended June 30, 2021:


	Nine Months Ended
	June 30, 2021
	Shares	Weighted Average Exercise Price
Outstanding at beginning of period	392,465	$	15.47

Exercised	(277,806)	14.48


Outstanding at end of period	114,659	$	17.87
Exercisable at end of period	113,709	$	17.93

As of June 30, 2021 and September 30, 2020, unrecognized compensation costs related to unvested stock options were less than $0.1 million. The remaining costs as of June 30, 2021 are expected to be recognized over a weighted-average period of 0.68 years.

Restricted Stock Awards

During the nine months ended June 30, 2021, the Company issued time-based restricted stock awards. The time-based restricted shares granted to our non-employee directors vest on the first anniversary of the grant, while the time-based restricted shares granted to our executive officers and other employees generally vest ratably over three years from the date of grant. Performance-based restricted share awards vest subject to the achievement of performance and market conditions over a three-year period.

Following is a summary of restricted stock activity for the nine months ended June 30, 2021:


	Nine Months Ended June 30, 2021
	Performance-Based Restricted Shares	Time-Based Restricted Shares	Total Restricted Shares
Beginning of period	796,024	610,130	1,406,154
Granted (a)	164,296	251,788	416,084
Vested	(222,165)	(346,856)	(569,021)
Forfeited	—	(28,488)	(28,488)
End of period	738,155	486,574	1,224,729

(a) Each of our performance-based restricted share represent a contingent right to receive one share of the Company's common stock if vesting is satisfied at the end of the three-year performance period. Our performance stock award plans provide that any performance shares earned in excess of the target number of performance shares issued may be settled in cash or additional shares at the discretion of the Compensation Committee. In November 2020, we issued 60,930 shares earned above target level based on the performance level achieved under the fiscal 2018 performance-based award plan.

As of June 30, 2021 and September 30, 2020, total unrecognized compensation costs related to unvested restricted stock awards was $9.2 million and $9.0 million, respectively. The remaining costs as of June 30, 2021 are expected to be recognized over a weighted average period of 1.53 years.