Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2023

Schedule of calculation of basic and diluted earnings per share

Computations of basic and diluted net income (loss) per share were as follows (in thousands, except per share data):


	Three Months Ended March 31,
	2023		2022
Numerator
Net income attributable to AdaptHealth Corp.	$	15,707	$	41,750
Less: Earnings allocated to participating securities (1)	1,327		3,537
Net income for basic EPS	$	14,380	$	38,213
Change in fair value of warrant liability (2)	(21,914)		(26,717)
Net (loss) income for diluted EPS	$	(7,534)	$	11,496

Denominator (1) (2)
Basic weighted-average common shares outstanding	134,525		134,023
Add: Warrants (2)	1,451		1,462
Add: Stock options	—		2,772
Add: Unvested restricted stock	—		226
Diluted weighted-average common shares outstanding	135,976		138,483

Basic net income per share	$	0.11	$	0.29
Diluted net (loss) income per share	$	(0.06)	$	0.08

(1)The Company’s outstanding preferred stock are considered participating securities, thus requiring the two-class method of computing diluted net income (loss) per share. Computation of diluted net income (loss) per share under the two-class method excludes from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator.

(2)For the three months ended March 31, 2023 and 2022, the impact to earnings from the change in fair value of the Company’s warrant liability is excluded from the numerator, and the corresponding security is included in the denominator, for purposes of computing diluted net income (loss) per share. The effect of the numerator and denominator adjustments for this derivative instrument is dilutive as a result of the non-cash gains recognized for the change in fair value of this instrument during the periods.

Schedule of antidilutive securities excluded from computation of earnings per share

The table below provides the weighted-average number of potential common shares associated with outstanding securities not included in the Company’s computation of diluted net income (loss) per share for the three months ended March 31, 2023 and 2022 because to do so would be antidilutive (in thousands):


	Three Months Ended March 31,
	2023	2022
Preferred Stock	12,406	12,406
Stock options	4,962	—
Unvested restricted stock	1,636	290
Total	19,004	12,696