Stockholders’ Equity

On December 19, 2017, we completed a public offering of 1,900,000 shares of our common stock which resulted in net proceeds to us of approximately $34,020 after deducting underwriters’ fees, commissions and transaction expenses.

Equity Incentive Plan

The Company has adopted the 2011 Omnibus Equity Incentive Plan (the “Equity Plan”). The purpose of the Equity Plan is to promote the interests of the Company and its stockholders by (i) attracting and retaining key officers, employees and directors; (ii) motivating such individuals by means of performance related incentives to achieve long-range performance goals; (iii) enabling such individuals to participate in the long-term growth and financial success of the Company; (iv) encouraging ownership of stock in the Company by such individuals; and (v) linking their compensation to the long-term interests of the Company and its stockholders.

The Equity Plan is administered by the Compensation Committee (the “Committee”) of the Board of Directors and allows for the issuance of stock options, stock appreciation rights (“SARs”), restricted share awards (“RSAs”), restricted share units, performance awards, or other stock-based awards. Stock option exercise prices are fixed by the Committee but shall not be less than the fair market value of a common share on the date of the grant of the option, except in the case of substitute awards. Similarly, the grant price of an SAR may not be less than the fair market value of a common share on the date of the grant. The Committee will determine the expiration date of each stock option and SAR, but in no case shall the stock option or SAR be exercisable after the expiration of ten years from the date of the grant. The Company plans to issue new shares upon exercise of any stock options. The Equity Plan provided 1,750,000 shares available for grant, of which no more than 1,000,000 could be for Incentive Stock Options. As of December 29, 2017, there were 553,708 shares available for grant.

Stock compensation expense was $3,018, $2,579 and $3,539 for the fiscal years ended December 29, 2017, December 30, 2016 and December 25, 2015, respectively. The related tax benefit for stock-based compensation was $1,283, $1,469 and $588 for the fiscal years ended December 29, 2017, December 30, 2016 and December 25, 2015, respectively.

The following table reflects the activity of RSAs during the fiscal years ended December 29, 2017 and December 30, 2016:



	Shares		Weighted Average Grant Date Fair Value
Unvested at December 25, 2015	418,604		$	18.54
Granted	214,274		17.75
Vested	(108,400	)	18.00
Forfeited	(190,425	)	16.82
Unvested at December 30, 2016	334,053		$	18.69
Granted	207,871		14.84
Vested	(116,442	)	18.36
Forfeited	(95,721	)	17.73
Unvested at December 29, 2017	329,761		$	16.69

The fair value of RSAs vested during the fiscal years ended December 29, 2017, December 30, 2016 and December 25, 2015, were $1,703, $1,779 and $3,110, respectively.

At December 29, 2017, the Company had 329,761 of unvested RSAs outstanding. At December 29, 2017, the total unrecognized compensation cost for these unvested RSAs was $3,823 to be recognized over a weighted-average period of approximately 25 months. Of this total, $2,646 related to RSAs with time-based vesting provisions and $1,177 related to RSAs with performance-based vesting provisions. At December 29, 2017, unrecognized compensation cost was to be recognized over a weighted-average period of approximately 26 months for time-based vesting RSAs and 24 months for the performance-based vesting RSAs.

The following table summarizes stock option activity during the fiscal years ended December 29, 2017 and December 30, 2016:



	Shares		Weighted Average Exercise Price		Aggregate Intrinsic Value		Weighted Average Remaining Contractual Term (in years)
Outstanding December 25, 2015	—		$	—	$	—	0
Granted	259,577		20.23
Exercised	—		—
Forfeited	(50,506	)	20.23
Outstanding December 30, 2016	209,071		$	20.23	$	—	9.2
Granted	—		—
Exercised	—		—
Forfeited	(17,263	)	20.23
Outstanding December 29, 2017	191,808		$	20.23	$	33	8.2
Exercisable at December 29, 2017	—		—		$	—	0

During March 2016, the Company granted 259,577 non-qualified stock options with market condition provisions to its employees at an exercise price of $20.23 and a weighted average grant date fair value of $9.44 using the following key assumptions:



	2016 Market Stock Options
Expected volatility of common stock (based on our historical stock price)	42.8	%
Risk-free interest rate (based on U.S. Treasury yields on the date of grant)	1.91	%
Expected term (median years until the simulated stock price exceeds target)	1.38

These awards vest over a period of three years and require the Company’s stock to trade at or above $30 per share for twenty consecutive days within four years of issuance to meet the market condition threshold. The Company recognized expense of $557 and $559 on these options during fiscal year ended December 29, 2017 and December 30, 2016, respectively. At December 29, 2017, the total unrecognized compensation cost for these options was $715 to be recognized over a weighted-average period of approximately 14 months. The Company has not granted stock options prior to fiscal 2016.

No compensation expense related to the Company’s RSAs or stock options has been capitalized.