Earnings Per Share

12 Months Ended

Dec. 31, 2021

Earnings Per ShareBasic net income per share is calculated by dividing net income by the weighted-average number of shares of the Company’s common stock issued and outstanding during a certain period. Diluted net income per share is calculated using the weighted-average number of common and potentially dilutive common shares outstanding during the period, using the as-if converted method for preferred stock and the treasury stock method for options and common stock warrants.

As of December 31, 2021, 2020, and 2019, APC held 10,925,702, 12,323,164 and 17,290,317 shares, respectively, of ApolloMed's common stock, which are treated as treasury shares for accounting purposes and not included in the number of shares of common stock outstanding used to calculate earnings per share (see Note 12 — “Mezzanine and Shareholders’ Equity”). The non-controlling interests in APC are allocated their share of ApolloMed’s income from APC’s ownership of ApolloMed common stock and this is included in the net income attributable to non-controlling interests on the consolidated statements of income. Therefore, none of the shares of ApolloMed held by APC are considered outstanding for the purposes of basic or diluted earnings per share computation.

Below is a summary of the earnings per share computations:


	Years ended December 31,
	2021		2020		2019

Earnings per share – basic	$	1.69	$	1.04	$	0.41
Earnings per share – diluted	$	1.63	$	1.01	$	0.39
Weighted-average shares of common stock outstanding – basic	43,828,664		36,527,672		34,708,429
Weighted-average shares of common stock outstanding – diluted	45,403,085		37,448,430		36,403,279

Below is a summary of the shares included in the diluted earnings per share computations:


	Years ended December 31,
	2021	2020	2019

Weighted-average shares of common stock outstanding – basic	43,828,664	36,527,672	34,708,429

Stock options	495,618	182,999	295,672
Warrants	819,151	717,029	1,384,078
Management restricted stock awards	23,824	7,242	15,100
Executive restricted stock awards	235,828	13,488	—
Weighted-average shares of common stock outstanding – diluted	45,403,085	37,448,430	36,403,279