Earnings Per Share

9 Months Ended

Sep. 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 September 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 September 30, 2023 and 2022, restricted stock of 243,689 and 192,804, 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 nine months ended September 30, 2023 and 2022, restricted stock of 243,689 and 192,804 were excluded from the computation of diluted weighted average common shares outstanding for being antidilutive.

For the three and nine months ended September 30, 2023, 925,558 of contingently issuable shares were excluded from the computation of diluted weighted average common shares outstanding because these conditions were not achieved as of September 30, 2023. For the three and nine months ended September 30, 2022, 290,045 of contingently issuable shares were excluded from the computation of diluted weighted average common shares outstanding because these conditions were not achieved as of September 30, 2022.

Below is a summary of the earnings per share computations:


Three Months Ended September 30,	2023		2022
			(Restated)
Earnings per share – basic	$	0.47	$	0.52
Earnings per share – diluted	$	0.47	$	0.50
Weighted average shares of common stock outstanding – basic	46,547,502		44,946,725
Weighted average shares of common stock outstanding – diluted	46,920,607		46,152,536

Nine Months Ended September 30,	2023		2022
			(Restated)
Earnings per share – basic	$	1.04	$	1.09
Earnings per share – diluted	$	1.03	$	1.06
Weighted average shares of common stock outstanding – basic	46,527,350		44,795,295
Weighted average shares of common stock outstanding – diluted	46,881,567		45,993,001

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



Three Months Ended September 30,	2023	2022
Weighted average shares of common stock outstanding – basic	46,547,502	44,946,725
Stock options	253,767	457,992
Warrants	—	555,065
Restricted stock awards	88,450	192,754
Contingently issuable shares	30,888	—
Weighted average shares of common stock outstanding – diluted	46,920,607	46,152,536



Nine Months Ended September 30,	2023	2022
Weighted average shares of common stock outstanding – basic	46,527,350	44,795,295
Stock options	254,399	455,166
Warrants	—	552,744
Restricted stock awards	89,409	189,796
Contingently issuable shares	10,409	—
Weighted average shares of common stock outstanding – diluted	46,881,567	45,993,001