Earnings Per Share

9 Months Ended

Sep. 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 September 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 September 30,	2020		2019
Earnings per share – basic	$	0.46	$	0.11
Earnings per share – diluted	$	0.45	$	0.10
Weighted average shares of common stock outstanding – basic	36,364,839		34,643,754
Weighted average shares of common stock outstanding – diluted	37,551,740		37,792,266


Nine Months Ended September 30,	2020		2019
Earnings per share – basic	$	0.77	$	0.21
Earnings per share – diluted	$	0.75	$	0.20
Weighted average shares of common stock outstanding – basic	36,149,692		34,555,124
Weighted average shares of common stock outstanding – diluted	37,249,967		37,816,698

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


Three Months Ended September 30,	2020	2019
Weighted average shares of common stock outstanding – basic	36,364,839	34,643,754
10% shares held back pursuant to indemnification clause	—	1,511,332
Stock options	187,843	299,536
Warrants	960,806	1,337,644
Restricted stock awards	38,252	—
Weighted average shares of common stock outstanding – diluted	37,551,740	37,792,266


Nine Months Ended September 30,	2020	2019
Weighted average shares of common stock outstanding – basic	36,149,692	34,555,124
10% shares held back pursuant to indemnification clause	—	1,511,332
Stock options	178,445	307,665
Warrants	890,489	1,442,577
Restricted stock awards	31,341	—
Weighted average shares of common stock outstanding – diluted	37,249,967	37,816,698