| Equity-Based Compensation |
10. Equity-Based Compensation Equity-based compensation expense under the Holdings 2013 Omnibus Incentive Plan (the “2013 Incentive Plan”) as well as the Holdings 2023 Omnibus Incentive Plan (the “2023 Incentive Plan” and, together with the 2013 Incentive Plan, the “Incentive Plans”), is as follows (in thousands): | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | | 2025 | | 2024 | | 2025 | | 2024 | Expense from time-based awards (a) | | $ | 2,129 | | $ | 2,289 | | $ | 6,050 | | $ | 5,950 | Expense from performance-based awards (a)(b) | | | 620 | | | 595 | | | 2,035 | | | 1,476 | Expense from bonus to be settled in shares (c) | | | 219 | | | 1,018 | | | 1,229 | | | 2,399 | Equity-based compensation expense | | $ | 2,968 | | $ | 3,902 | | $ | 9,314 | | $ | 9,825 |
| (a) | Includes $0.7 million and $1.1 million of expense recognized for time-based and performance-based awards for the six months ended June 30, 2025 and 2024, respectively, for inducement awards granted to the Company's CEO, Erik Carlson, in the fourth quarter of 2023. These equity awards were made pursuant to the inducement award exception under the New York Stock Exchange Rule 303A.08 and were not granted from the 2023 Incentive Plan. The expense recognized for time-based and performance-based awards for the three months ended June 30, 2025 and 2024, were immaterial. As of June 30, 2025, 709,681 restricted stock units remain outstanding assuming maximum achievement of the performance awards. |
| (b) | Expense recognized for performance-based awards is re-assessed each quarter based on expectations of achievement against the performance conditions. |
| (c) | A portion of the annual corporate bonus earned is to be settled in shares. These amounts are recognized as “Accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets and are not included in “Additional paid-in capital” until the shares are issued. |
Time-based Restricted Stock The following table summarizes equity-based compensation activity related to time-based restricted stock units and restricted stock awards: | | | | | | | | Shares | | Weighted average
grant date fair
value per share | Balance, January 1, 2025 | | 1,743,345 | | $ | 10.40 | Granted | | 1,538,708 | | $ | 8.79 | Shares vested (including tax withholding) (a) | | (902,001) | | $ | 11.18 | Forfeited | | (247,227) | | $ | 9.66 | Balance, June 30, 2025 | | 2,132,825 | | $ | 9.00 |
| (a) | Pursuant to the terms of the Incentive Plans, shares withheld by the Company for the payment of the employee's tax withholding related to shares vesting are added back to the pool of shares available for future awards. |
As of June 30, 2025, there was $14.2 million of total unrecognized expense. This compensation expense is expected to be recognized over the weighted-average remaining vesting period of 2.0 years. Performance-based Restricted Stock The following table summarizes equity-based compensation activity related to performance-based restricted stock units: | | | | | | | | Shares | | Weighted average
grant date fair
value per share | Balance, January 1, 2025 | | 1,025,661 | | $ | 6.22 | Granted (a) | | 710,030 | | $ | 9.31 | Shares vested (including tax withholding) (b) | | (33,728) | | $ | 8.76 | Forfeited | | (212,221) | | $ | 9.93 | Balance, June 30, 2025 | | 1,489,742 | | $ | 7.11 |
| (a) | Represents the total participant target award. |
| (b) | Pursuant to the terms of the Incentive Plans, shares withheld by the Company for the payment of the employee's tax withholding related to shares vesting are added back to the pool of shares available for future award. |
As of June 30, 2025, there was $3.3 million of total unrecognized expense. This compensation expense is expected to be recognized over the weighted-average remaining vesting period of 1.6 years.
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