Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2024

Schedule of calculation of basic and diluted earnings (loss) per share

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


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Numerator
Net income attributable to AdaptHealth Corp.	$	19,435	$	13,977	$	17,301	$	29,684
Less: Earnings allocated to participating securities (1)	1,656		1,182		1,475		2,508
Net income for basic EPS	$	17,779	$	12,795	$	15,826	$	27,176
Change in fair value of warrant liability (2)	—		—		—		(22,726)
Net income for diluted EPS	$	17,779	$	12,795	$	15,826	$	4,450

Denominator (1) (2)
Basic weighted-average common shares outstanding	133,218		134,295		133,066		134,409
Add: Warrants (2)	—		—		—		857
Add: Stock options	298		833		235		1,552
Add: Unvested restricted stock	2,513		1,105		2,397		1,182
Diluted weighted-average common shares outstanding	136,029		136,233		135,698		138,000

Basic net income per share	$	0.13	$	0.10	$	0.12	$	0.20
Diluted net income per share	$	0.13	$	0.09	$	0.12	$	0.03

(1)The Company’s preferred stock are considered participating securities. Computation of EPS 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 six months ended June 30, 2023, 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 per share. This adjustment is included as the effect of the numerator and denominator adjustment for this derivative instrument is dilutive as a result of the non-cash gain recorded for the change in fair value of this instrument during the period. For the six months ended June 30, 2024 and the three months ended June 30, 2024 and 2023, this adjustment is excluded from the computation of diluted net income per share under the treasury stock method since its inclusion would have been anti-dilutive.

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 per share for the three and six months ended June 30, 2024 and 2023 because to do so would be antidilutive (in thousands):


	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
Preferred Stock	12,406	12,406	12,406	12,406
Warrants	3,872	—	3,872	—
Stock options	2,200	2,219	2,263	468
Unvested restricted stock	1,431	—	1,547	—
Total	19,909	14,625	20,088	12,874