Earnings Per Share

3 Months Ended

Mar. 31, 2016

5.	Earnings Per Share

Earnings per share (“EPS”) is calculated using the two-class method required for participating securities. Undistributed earnings allocated to these participating securities are subtracted from net income in determining net income attributable to common stockholders. Net losses, if any, are not allocated to these participating securities. Basic EPS is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period.

For the calculation of diluted EPS, net income attributable to common stockholders for basic EPS is adjusted by the effect of dilutive securities, including awards under stock-based payment arrangements. Diluted EPS attributable to common stockholders is computed by dividing net income attributable to common stockholders by the weighted-average number of fully diluted common shares outstanding during the period.

The following tables reconcile the numerator and denominator used in the calculation of basic and diluted EPS for the three months ended March 31, 2016 and 2015 (in thousands except share and per share amounts):

	Three Months Ended March 31,
	2016		2015
Numerator
Net income attributable to AAC Holdings, Inc.	$	586	$	2,719
Less: Series A Preferred Unit dividends		—		(147	)
Less: Redemption of BHR Series A Preferred Units		—		(534	)
Net income attributable to common shares	$	586	$	2,038
Denominator
Weighted-average common shares outstanding – basic		22,094,790		21,189,385
Dilutive securities		18,710		123,403
Weighted-average common shares outstanding – diluted		22,113,500		21,312,788

Basic earnings per common share	$	0.03	$	0.10
Diluted earnings per common share	$	0.03	$	0.10