Earnings Per Share

6 Months Ended

Jun. 30, 2020

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, 2020 and December 31, 2019, APC held 17,307,214 and 17,290,317 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.

Below is a summary of the earnings per share computations:


Three Months Ended June 30,	2020		2019
Earnings per share – basic	$	0.20	$	0.10
Earnings per share – diluted	$	0.19	$	0.09
Weighted average shares of common stock outstanding – basic	36,071,604		34,540,059
Weighted average shares of common stock outstanding – diluted	37,285,585		37,962,555


Six Months Ended June 30,	2020		2019
Earnings per share – basic	$	0.31	$	0.11
Earnings per share – diluted	$	0.30	$	0.10
Weighted average shares of common stock outstanding – basic	36,040,936		34,518,461
Weighted average shares of common stock outstanding – diluted	37,296,913		37,896,837

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


Three Months Ended June 30,	2020	2019
Weighted average shares of common stock outstanding – basic	36,071,604	34,540,059
10% shares held back pursuant to indemnification clause	—	1,519,805
Stock options	169,402	363,593
Warrants	1,041,784	1,539,098
Restricted stock awards	2,795	—
Weighted average shares of common stock outstanding – diluted	37,285,585	37,962,555


Six Months Ended June 30,	2020	2019
Weighted average shares of common stock outstanding – basic	36,040,936	34,518,461
10% shares held back pursuant to indemnification clause	—	1,519,805
Stock options	173,299	368,273
Warrants	1,076,802	1,490,298
Restricted stock awards	5,876	—
Weighted average shares of common stock outstanding – diluted	37,296,913	37,896,837