Earnings Per Share

3 Months Ended

Mar. 31, 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 March 31, 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 March 31, 2023 and 2022, restricted stock of 136,932 and 0, 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 three months ended March 31, 2023 and 2022, 395,472 and 0 of contingently issuable shares were excluded from the computation of diluted weighted average common shares outstanding because these conditions were not achieved as of March 31, 2023 and 2022, respectively.

Below is a summary of the earnings per share computations:


Three Months Ended March 31,	2023		2022
Earnings per share – basic	$	0.31	$	0.32
Earnings per share – diluted	$	0.31	$	0.31
Weighted average shares of common stock outstanding – basic	46,555,406		44,681,218
Weighted average shares of common stock outstanding – diluted	46,954,687		45,994,868

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


Three Months Ended March 31,	2023	2022
Weighted average shares of common stock outstanding – basic	46,555,406	44,681,218
Stock options	306,933	482,337
Warrants	—	729,422
Restricted stock awards	48,191	101,891
Contingently issuable shares	44,157	—
Weighted average shares of common stock outstanding – diluted	46,954,687	45,994,868