Earnings Per Share

9 Months Ended

Sep. 30, 2022

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

As of September 30, 2022 and December 31, 2021, APC held 11,175,702 and 10,925,702 shares of ApolloMed’s common stock, respectively, 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.

For the three months ended September 30, 2022 and September 30, 2021, restricted stock of 192,804 and 9,137, respectively, were excluded from the computation of diluted weighted average common shares outstanding because the assumed proceeds, as calculated under the treasury stock method, resulted in these awards being antidilutive. For the nine months ended September 30, 2022 and September 30, 2021, restricted stock of 192,804 and 9,137, respectively, were excluded from the computation of diluted weighted average common shares outstanding because the assumed proceeds, as calculated under the treasury stock method, resulted in these awards being anti-dilutive.

For the three and nine months ended September 30, 2022, 290,045 of restricted stock with performance conditions were excluded from the computation of diluted weighted average common shares outstanding because these conditions were not achieved as of September 30, 2022.

Below is a summary of the earnings per share computations:


Three Months Ended September 30,	2022		2021
Earnings per share – basic	$	0.58	$	0.77
Earnings per share – diluted	$	0.56	$	0.74
Weighted average shares of common stock outstanding – basic	44,946,725		44,301,060
Weighted average shares of common stock outstanding – diluted	46,152,536		46,273,640


Nine Months Ended September 30,	2022		2021
Earnings per share – basic	$	1.15	$	1.38
Earnings per share – diluted	$	1.12	$	1.33
Weighted average shares of common stock outstanding – basic	44,795,295		43,608,116
Weighted average shares of common stock outstanding – diluted	45,993,001		45,339,372

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


Three Months Ended September 30,	2022	2021
Weighted average shares of common stock outstanding – basic	44,946,725	44,301,060
Stock options	457,992	583,639
Warrants	555,065	1,083,216
Restricted stock awards	192,754	305,725
Weighted average shares of common stock outstanding – diluted	46,152,536	46,273,640


Nine Months Ended September 30,	2022	2021
Weighted average shares of common stock outstanding – basic	44,795,295	43,608,116
Stock options	455,166	498,296
Warrants	552,744	971,935
Restricted stock awards	189,796	261,025
Weighted average shares of common stock outstanding – diluted	45,993,001	45,339,372