Equity-Based Compensation

9 Months Ended

Sep. 30, 2014

Equity-Based Compensation

4. Equity-Based Compensation

As discussed in Note 1, on December 19, 2013, the Board of Directors of the Company approved a four-for-one stock split of the Company’s common stock, effected in the form of a stock dividend. All references to stock award data have been restated to reflect the effect of the stock split for all periods presented.

The Company recorded equity-based compensation expense related to stock options of $11,000 and $170,000 during the three and nine months ended September 30, 2013, respectively. No amounts were recorded for equity-based compensation expense related to stock options during the three and nine months ended September 30, 2014 as all stock options vested prior to 2014. The Company does not currently grant stock options.

A summary of changes in outstanding options for the nine months ended September 30, 2014 is as follows:

	Number of Options
Outstanding at December 31, 2013		444,420
Exercised		(182,900	)
Forfeited and expired		(4,200	)
Outstanding at September 30, 2014		257,320

The Company granted 34,143 and 1,112 restricted stock units (“RSUs”) during the three months ended September 30, 2014 and 2013, respectively, and 390,070 and 846,280 RSUs during the nine months ended September 30, 2014 and 2013, respectively. The Company recorded equity-based compensation expense related to restricted stock awards and RSUs of $2.3 million and $1.2 million during the three months ended September 30, 2014 and 2013, respectively, and $7.0 million and $5.1 million during the nine months ended September 30, 2014 and 2013, respectively.

A summary of changes in unvested shares/units for the nine months ended September 30, 2014 is as follows:

	Number of shares/units
Outstanding at December 31, 2013		1,777,384
Granted		390,070
Vested		(726,153	)
Forfeited		(77,719	)
Outstanding at September 30, 2014		1,363,582