Computation of Net Income Per Common Share

3 Months Ended

Mar. 31, 2020

COMPUTATION OF NET INCOME PER COMMON SHARE

Basic net income per share is computed by dividing income from continuing operations attributable to stockholders of The Ensign Group, Inc. by the weighted average number of outstanding common shares for the period. The computation of diluted net income per share is similar to the computation of basic net income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued.

A reconciliation of the numerator and denominator used in the calculation of basic net income per common share follows:


	Three Months Ended March 31,
	2020		2019
Numerator:
Net income from continuing operations	$	41,201	$	21,565


Less: net income attributable to noncontrolling interests in continuing operations	352		85
Net income from continuing operations attributable to The Ensign Group, Inc.	40,849		21,480
Net income from discontinued operations, net of tax	—		6,042
Less: net income attributable to noncontrolling interests in discontinued operations	—		150
Net income from discontinued operations, net of tax	—		5,892
Net income attributable to The Ensign Group, Inc.	$	40,849	$	27,372

Denominator:
Weighted average shares outstanding for basic net income per share	53,475		53,081
Basic net income per common share:
Income from continuing operations	$	0.76	$	0.41
Income from discontinued operations	—		0.11
Net income attributable to The Ensign Group, Inc.	$	0.76	$	0.52

A reconciliation of the numerator and denominator used in the calculation of diluted net income per common share follows:


	Three Months Ended March 31,
	2020		2019
Numerator:
Net income from continuing operations	$	41,201	$	21,565
Less: net income attributable to noncontrolling interests in continuing operations	352		85
Net income from continuing operations attributable to The Ensign Group, Inc.	40,849		21,480
Net income from discontinued operations, net of tax	—		6,042
Less: net income attributable to noncontrolling interests in discontinued operations	—		150
Net income from discontinued operations, net of tax	—		5,892
Net income attributable to The Ensign Group, Inc.	$	40,849	$	27,372

Denominator:
Weighted average common shares outstanding	53,475		53,081
Plus: incremental shares from assumed conversion⁽¹⁾	2,321		2,617
Adjusted weighted average common shares outstanding	55,796		55,698
Diluted net income per common share:
Income from continuing operations	$	0.73	$	0.39
Income from discontinued operations	—		0.10
Net income attributable to The Ensign Group, Inc.	$	0.73	$	0.49

(1) Options outstanding which are anti-dilutive and therefore not factored into the weighted average common shares amount above were 787 and 489 for the three months ended March 31, 2020 and 2019, respectively.