Earnings Per Share

9 Months Ended

Sep. 30, 2019

Note 12. Earnings Per Share

Basic earnings per share is computed under the two-class method by dividing income available to Class A common stockholders by the weighted average number of Class A common shares outstanding during the period. Unvested restricted share-based awards are excluded from the number of Class A common shares outstanding for the basic earnings per share calculation because the shares have not yet been earned by employees. Income available to Class A common stockholders is computed by reducing net income attributable to APAM by earnings (both distributed and undistributed) allocated to participating securities, according to their respective rights to participate in those earnings. Unvested share-based awards are participating securities because the awards include non-forfeitable dividend rights during the vesting period. Class B and Class C common shares do not share in profits of APAM and therefore are not reflected in the calculations.

The computation of basic and diluted earnings per share under the two-class method for the three and nine months ended September 30, 2019 and 2018 were as follows:


	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
Basic and Diluted Earnings Per Share	2019		2018		2019		2018
Numerator:
Net income attributable to APAM	$	41,256	$	42,518	$	111,983	$	125,798
Less: Allocation to participating securities	4,494		4,628		16,521		15,475
Net income available to common stockholders	$	36,762	$	37,890	$	95,462	$	110,323
Denominator:
Weighted average shares outstanding	51,448,938		49,399,553		50,950,618		48,607,837
Earnings per share	$	0.71	$	0.77	$	1.87	$	2.27

Allocation to participating securities in the table above primarily represents dividends paid to holders of unvested restricted share-based awards, which reduces net income available to common stockholders.

There were no dilutive securities outstanding during the three and nine months ended September 30, 2019 and 2018. The Holdings limited partnership units are anti-dilutive primarily due to the impact of public company expenses. Unvested restricted share-based awards are considered participating securities and are therefore anti-dilutive. The following table summarizes the weighted-average shares outstanding that are excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive:


	For the Three Months Ended September 30,			For the Nine Months Ended September 30,
Anti-Dilutive Weighted Average Shares Outstanding	2019	2018	2019	2018
Holdings limited partnership units	21,594,086	22,951,357	21,958,470	23,505,920
Unvested restricted share-based awards	5,060,127	4,847,786	5,033,331	4,859,526
Total	26,654,213	27,799,143	26,991,801	28,365,446