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STOCKHOLDERS' EQUITY | 6 Months Ended
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Jun. 30, 2024
STOCKHOLDERS' EQUITY [Abstract] |
STOCKHOLDERS' EQUITY |
7. | STOCKHOLDERS’ EQUITY
Common Stock Holders of our Common Stock are entitled to receive dividends when and as declared by our Board of Directors and have the right to one vote per share on all matters requiring shareholder approval. The Company has not declared or paid any cash dividends on our Common Stock since the Company’s Board of Directors discontinued our quarterly cash dividend program in February 2015. The Company currently has no intention to pay cash dividends to holders of Common Stock in the foreseeable future. Restricted Stock The Company currently has only one active stock incentive plan: the Lincoln Educational Services Corporation 2020 Incentive Compensation Plan (the “LTIP”). LTIP On March 26, 2020, the Board of Directors adopted the LTIP to provide an incentive to certain directors, officers, employees and consultants of the Company to align their interests in the Company’s success with those of its shareholders through the grant of equity-based awards. On June 16, 2020, the shareholders of the Company approved the LTIP. The LTIP is administered by the Compensation Committee of the Board of Directors, or such other qualified committee appointed by the Board of Directors, which will, among other duties, have the full power and authority to take all actions and make all determinations required or provided for under the LTIP. Pursuant to the LTIP, the Company may grant options, share appreciation rights, restricted shares, restricted share units, incentive stock options and nonqualified stock options. Under the LTIP, employees may surrender shares as payment of applicable income tax withholding on the vested Restricted Stock. The LTIP has a duration of 10 years. On February 23, 2023, the Board of Directors approved, subject to shareholder approval, an amendment of the LTIP to increase the aggregate number of shares available under the LTIP from 2,000,000 shares to 4,000,000 shares. The amendment was approved and adopted by the shareholders at the Annual Meeting of Shareholders held on May 5, 2023. For the three and six months ended June 30, 2024, the Company completed a net share settlement of zero shares and 315,611 shares, respectively, compared to 39,670 shares and 297,380 shares for the three and six months ended June 30, 2023, respectively. The net share settlement was performed on behalf of certain employees that participate in the LTIP upon the vesting of the restricted shares pursuant to the terms of the LTIP. The net share settlement was in connection with income taxes incurred on restricted shares that vested and were transferred to the employees during 2024 and/or 2023, creating taxable income for the employees. At the employees’ request, the Company paid these taxes on behalf of the employees in exchange for the employees returning an equivalent value of restricted shares to the Company. These transactions resulted in a decreases of zero and $3.1 million for the three and six months ended June 30, 2024, respectively, compared to $0.3 million and $1.8 million for the three and six months ended June 30, 2023, respectively. These transactions resulted in a decrease to equity on the Condensed Consolidated Balance Sheets as the cash payment of the taxes effectively was a repurchase of the restricted shares granted in previous years. The following is a summary of transactions pertaining to Restricted Stock:
|  | Shares |  |  | Weighted Average Grant Date Fair Value Per Share |
Nonvested Restricted Stock outstanding at December 31, 2023 |  |  | 1,398,675 |  |  | $ | 5.16 |
Granted |  |  | 454,937 |  |  |  | 9.81 |
Canceled |  |  | (7,597 | ) |  |  | 7.68 |
Vested |  |  | (851,353 | ) |  |  | 6.33 |
Nonvested Restricted Stock outstanding at June 30, 2024 |  |  | 994,662 |  |  | $ | 7.99 |
The Restricted Stock expense for the three and six months ended June 30, 2024 was $1.0 million and $2.1 million, respectively, compared to $2.6 million and $3.4 million for the three and six months ended June 30, 2023, respectively. The unrecognized Restricted Stock expense as of June 30, 2024 and December 31, 2023 was $6.7 million and $4.3 million, respectively. As of June 30, 2024, the outstanding shares of Restricted Stock had an aggregate intrinsic value of $11.8 million. Share Repurchase Plan On May 24, 2022, the Company announced that its Board of Directors had authorized a share repurchase program of up to $30.0 million of the Company’s outstanding Common Stock. The repurchase program was authorized for 12 months. Pursuant to the program, purchases may be made, from time to time, in open-market transactions at prevailing market prices, in privately negotiated transactions or by other means as determined by the Company’s management and in accordance with applicable federal securities laws. The timing of purchases and the number of shares repurchased under the program depend on a variety of factors including price, trading volume, corporate and regulatory requirements and market conditions. The Company retains the right to limit, terminate or extend the share repurchase program at any time without prior notice. On February 27, 2023, the Board of Directors extended the share repurchase program for an additional 12 months and authorized the repurchase of an additional $10.0 million of the Company’s Common Stock, for an aggregate of up to $30.6 million in additional repurchases. On May 7, 2024, the Company announced that its Board of Directors had authorized an extension of the share repurchase program for an additional twelve months through May 24, 2025. The Company did not repurchase any additional shares in the three months ended June 30, 2024 and has approximately $29.7 million remaining for repurchases under the program. Since inception of the program, the Company has made repurchases of approximately 1.7 million shares of the Company’s Common Stock at an average share price of $5.95 for an aggregate expenditure of approximately $10.3 million. The following table presents information about our repurchases of Common Stock, all of which were completed through open market purchases:
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, |  |  | June 30, |
(in thousands, except share data) |  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Total number of shares repurchased1 |  |  | - |  |  |  | 61,034 |  |  |  | - |  |  |  | 165,064 |
Total cost of shares repurchased |  | $ | - |  |  | $ | 335 |  |  | $ | - |  |  | $ | 891 |
1 These shares were subsequently canceled and recorded as a reduction of Common Stock.

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