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Equity Plans and Dividends
 3 Months Ended
Sep. 30, 2024
Equity Plans and Dividends [Abstract]  
Equity Plans and Dividends

Note (9) – Equity Plans and Dividends:

 

Equity Incentive Plan

 

In November 2015, the Company’s stockholders approved the Company’s 2015 Equity Incentive Plan (the “Plan”). During December 2020, the Company’s stockholders approved an amendment to the Plan to increase the number of shares of the Company’s common stock authorized for issuance pursuant to awards granted under the Plan to 3,000,000 shares. The fair value of awards granted under the Plan is expensed on a straight-line basis over the vesting period of the awards. Share-based compensation expense is included in selling, general and administrative expenses in the Company’s condensed consolidated statements of operations.

 

During the three months ended September 30, 2024, there were 263,974 restricted stock awards and 24,844 restricted stock units granted under the Plan. During the three months ended September 30, 2023, there were no restricted stock awards or restricted stock units granted under the Plan. There were no restricted stock awards forfeited during either the three months ended September 30, 2024 or 2023. There were 105 and 12,533 restricted stock units forfeited during the three months ended September 30, 2024 and 2023, respectively.

 

For the three months ended September 30, 2024 and 2023, non-cash share-based compensation expense related to awards granted under the Plan totaled $1.1 million and $1.9 million, respectively. Included within the non-cash share-based compensation expense for the three months ended September 30, 2023 is an additional expense of $1.2 million related to the acceleration of the vesting of 120,851 restricted stock awards and 30,000 restricted stock units, in each case, pursuant to the terms of the applicable award agreement.

 

As of September 30, 2024, the Company had $24.8 million and $10.3 million of total unrecognized compensation expense related to restricted stock awards and restricted stock units, respectively, granted under the Plan, which is expected to be recognized over the weighted average period of 12.47 years and 9.52 years, respectively.

 

The following is a summary of non-vested restricted stock activity as of, and for the three months ended, September 30, 2024:

 

   Restricted Stock Awards  Restricted Stock Units
   Shares  Weighted
Average
Grant Date
Fair Value		  Shares  Weighted
Average
Grant Date
Fair Value
Non-vested awards or units outstanding at June 30, 2024   1,295,824   $21.06    548,524   $24.20 
Granted   263,974    16.10    24,844    16.10 
Vested   (27,834)   16.30    (6,518)   16.30 
Forfeited   
—
    
—
    (105)   33.19 
Non-vested awards or units outstanding at September 30, 2024   1,531,964   $20.30    566,745   $23.93 

Employee Stock Purchase Plan

 

During 2017, the Company’s stockholders approved the Company’s 2017 Employee Stock Purchase Plan (the “ESPP”). Subject to the terms and conditions thereof, the ESPP allows eligible employees the opportunity to purchase shares of the Company’s common stock at a 5% discount. The ESPP provides for six-month offering periods ending on December 31 and June 30 of each year. No shares were issued under the ESPP during the three months ended September 30, 2024 or 2023.

 

Dividends

 

The declaration and payment of cash dividends on the Company’s common stock is determined by the Company’s Board of Directors based on the Company’s financial condition and results, including, but not limited to, cash flow generated by operations and profitability, the Company’s prospects and liquidity needs, and other factors deemed relevant by the Company’s Board of Directors.

 

The Company has not historically paid regular dividends on its common stock. However, the Company has from time to time paid special cash dividends on its common stock. The Company did not pay any dividends on its common stock during the three months ended September 30, 2024 or 2023.

 

On September 11, 2024, the Company’s Board of Directors declared a special cash dividend on the Company’s common stock of $0.31 per share (an aggregate of $4.6 million), which was paid on October 7, 2024 to stockholders of record at the close of business on September 26, 2024. This amount is included in accounts payable and accrued expenses in the Company’s condensed consolidated balance sheet as of September 30, 2024.

 

The payment of dividends, if any, in the future will be in the discretion of the Company’s Board of Directors, as described above. The payment of dividends may also be subject to restrictions contained in the Company’s debt instruments. As described elsewhere in this Report, including under “Liquidity and Capital Resources” in Item 2 of this Report, the Company’s Credit Agreement contains certain covenants which may, among other things, restrict the Company’s ability to pay dividends, and any future facilities may contain similar or more stringent requirements. The Company’s management does not believe that the covenants contained in the Company’s Credit Agreement currently materially limit the Company’s ability to pay dividends or are reasonably likely to materially limit the Company’s ability to pay dividends in the future.