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SHARE-BASED COMPENSATION
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
SHARE-BASED COMPENSATION SHARE-BASED COMPENSATION
Stock Options:
The Company has issued non-qualified and incentive stock options to employees and non-employee directors. The fair value of these options were estimated on the date of grant using the Black-Scholes option pricing model, which required estimates of the expected term of the option, the risk-free interest rate, the expected volatility of the price of the Company’s common stock, and dividend yield. Options outstanding as of December 31, 2024 generally vested over a period of 3 years and expire 10 years from the date of grant. The exercise price of these options is $66.68. Due to the Company’s lack of option exercise history on
the date of grant, the expected term was calculated using the simplified method defined as the midpoint between the vesting period and the contractual term of each option. The risk-free interest rate was based on the U.S. Treasury yield curve in effect on the date of grant that most closely corresponded to the expected term of the option. The expected volatility was based on the historical volatility of the Company’s common stock over the period of time equivalent to the expected term for each award. The dividend yield was computed as the annualized dividend rate at the grant date divided by the strike price of the stock option. For the years ended December 31, 2024 and 2023, the Company did not grant stock options.
The number of stock options and weighted-average exercise prices as of December 31, 2024 and 2023 are as follows:
20242023
AwardsWeighted-Average Exercise PriceAwardsWeighted-Average Exercise Price
(awards in thousands)
Outstanding at beginning of period25 $62.20 32 $54.98 
Exercised(1)27.68 (7)27.40 
Forfeited(2)26.52 — — 
Outstanding at end of the period22 $66.68 25 $62.20 
Exercisable at end of the period22 $66.68 25 $62.20 
As of December 31, 2024, the weighted-average remaining contractual life for both outstanding and exercisable stock options was 3.1 years with an aggregate intrinsic value of $0. There was no unrecognized compensation on the awards for the period ended December 31, 2024. The Company received $36 thousand, $188 thousand, and $0 thousand in cash proceeds from the exercise of stock options during the years ended December 31, 2024, 2023, and 2022, respectively. The total intrinsic value of stock options exercised during the years ended December 31, 2024, 2023, and 2022 was $15 thousand, $440 thousand, and $0 thousand, respectively.
Restricted Stock:
The Company has issued restricted stock to employees and non-employee directors generally with vesting terms up to 3 years after the date of grant. The fair value of the restricted stock is equal to the market price of the Company’s common stock on the date of grant. Expense for restricted stock is amortized ratably over the vesting period. A summary of outstanding restricted stock activity as of December 31, 2024 and 2023 are as follows:
20242023
SharesWeighted-Average Grant Date Fair ValueSharesWeighted-Average Grant Date Fair Value
(shares in thousands)
Outstanding at beginning of period114 $127.87 60 $187.94 
Granted210 32.2387 97.96
Vested(35)138.85(25)169.69
Forfeited(10)50.31(8)133.57
Outstanding at end of the period279 $57.21 114 $127.87 
The Company withheld approximately 11 thousand, 9 thousand, and 9 thousand shares of the Company’s common stock to cover minimum tax liability withholding obligations upon the vesting of shares of restricted stock for the years ended December 31, 2024, 2023, and 2022, respectively. The total fair value of restricted stock awards vested during the years ended December 31, 2024, 2023, and 2022 was $1.3 million, $8.3 million, and $3.5 million, respectively.
Market and Performance-based Share Awards:
The Company has issued market and performance-based share awards in 2022 and 2023 and performance-based share awards in 2020, 2021, and 2024 to certain key executives who were granted deferred shares and may earn between 0% and 250% of the target number depending upon both the Company's total stockholder return ("TSR"), for those with market conditions, and the
Company's performance against predetermined performance goals over a three-year performance period after the date of grant. Market and performance-based share awards that are tied to the Company's TSR are valued using the Monte Carlo method and recognized ratably as expense over the award's performance period. The fair value of the performance-based share awards is equal to the market price of the Company’s common stock on the date of grant adjusted by expected level of achievement over the performance period. Expense for performance-based share awards is amortized ratably over the performance period. In the event that management determines that the Company will not reach the previously estimated achievement of the predetermined performance goals established in the grant agreement, any previously recognized expense is reversed in the period in which such a determination is made. Management determined that the market and performance-based share awards granted in March of 2022 would not reach the previously estimated achievement of the predetermined performance goals resulting in a reversal of previously recorded share-based compensation expense of $1.4 million for the year ended December 31, 2023. Management also determined that the market and performance-based share awards granted in March of 2023 would not reach the previously estimated achievement of the predetermined performance goals. The Company reversed $1.4 million of previously recorded share-based compensation expense during the quarter ended September 30, 2024. The Company continues to record stock-based compensation expense on the performance-based share awards granted in March of 2023 at the revised performance factor over the life of the awards.
The Company withheld approximately 8 thousand, 22 thousand, and 0 thousand shares of the Company’s common stock to cover minimum tax liability withholding obligations upon the vesting of shares of performance-based share awards for the years ended December 31, 2024, 2023, and 2022, respectively. The total fair value of performance-based share awards issued for the years ended December 31, 2024, 2023, and 2022 was $1.3 million, $5.7 million, and $0.0 million respectively.
Share-based compensation expense for all types of awards is recorded in selling, general, and administrative expense in the accompanying Consolidated Statements of Operations. The total expenses during the years ended December 31, 2024, 2023, and 2022 are as follows (in thousands):
202420232022
SharesShare-Based Compensation ExpenseSharesShare-Based Compensation ExpenseSharesShare-Based Compensation Expense
Options and restricted stock301 $6,521 139 $5,926 92 $5,167 
Performance-based share awards granted in 2024117 1,198 — — — — 
Market and performance-based share awards granted in 202347 (252)47 1,536 — — 
Market and performance-based share awards granted in 2022
— — 24 (1,388)25 1,389 
Performance-based share awards granted in 2021— (104)14 2,005 15 2,595 
Performance-based share awards granted in 2020— — — 109 52 1,902 
Total share-based compensation465 $7,363 224 $8,188 184 $11,053 
The total income tax benefit recognized in the accompanying Consolidated Statements of Operations for stock awards was $1.0 million, $0.6 million and $1.2 million for the years ended December 31, 2024, 2023, and 2022, respectively.
There was $7.2 million of total unrecognized compensation expense related to restricted stock awards as of December 31, 2024, which is expected to be recognized over a weighted-average period of 20 months. There was $3.7 million of unrecognized compensation expense related to the 47 thousand market and performance-based shares and 117 thousand performance-based shares presented in the table above as of December 31, 2024, which is expected to be recognized over a weighted-average period of 19 months