Earnings Per Share

6 Months Ended

Jun. 30, 2023

Basic 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 June 30, 2023 and December 31, 2022, APC held 10,299,259 and 10,299,259 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 June 30, 2023 and 2022, restricted stock of 238,096 and 394,606, 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 six months ended June 30, 2023 and 2022, restricted stock of 246,431 and 257,193 were excluded from the computation of diluted weighted average common shares outstanding for being antidilutive.

For the three and six months ended June 30, 2023, 838,628 of contingently issuable shares were excluded from the computation of diluted weighted average common shares outstanding because these conditions were not achieved as of June 30, 2023. For the three and six months ended June 30, 2022, 242,899 of contingently issuable shares were excluded from the computation of diluted weighted average common shares outstanding because these conditions were not achieved as of June 30, 2022.

Below is a summary of the earnings per share computations:


Three Months Ended June 30,	2023		2022
			(Restated)
Earnings per share – basic	$	0.28	$	0.27
Earnings per share – diluted	$	0.28	$	0.26
Weighted average shares of common stock outstanding – basic	46,482,271		44,858,657
Weighted average shares of common stock outstanding – diluted	46,778,299		46,023,015

Six Months Ended June 30,	2023		2022
			(Restated)
Earnings per share – basic	$	0.57	$	0.57
Earnings per share – diluted	$	0.56	$	0.56
Weighted average shares of common stock outstanding – basic	46,517,108		44,815,307
Weighted average shares of common stock outstanding – diluted	46,844,044		46,082,643

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



Three Months Ended June 30,	2023	2022
Weighted average shares of common stock outstanding – basic	46,482,271	44,858,657
Stock options	252,311	418,322
Warrants	—	651,725
Restricted stock awards	40,027	94,311
Contingently issuable shares	3,690	—
Weighted average shares of common stock outstanding – diluted	46,778,299	46,023,015



Six Months Ended June 30,	2023	2022
Weighted average shares of common stock outstanding – basic	46,517,108	44,815,307
Stock options	254,718	455,170
Warrants	—	689,240
Restricted stock awards	70,363	122,926
Contingently issuable shares	1,855	—
Weighted average shares of common stock outstanding – diluted	46,844,044	46,082,643