Earnings Per Share

3 Months Ended

Mar. 31, 2025

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. Except for certain performance share units, 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.

Diluted earnings per share is computed under the more dilutive of the treasury stock method or the two-class method. The weighted average number of Class A common shares outstanding during the period is increased by the assumed conversion of nonparticipating unvested share-based awards into Class A common stock using the treasury stock method.

The computation of basic and diluted earnings per share for the three months ended March 31, 2025 and 2024 were as follows:


	For the Three Months Ended March 31,
Basic and Diluted Earnings Per Share	2025		2024
Numerator:
Net income attributable to APAM	$	61,139	$	59,481
Less: Allocation to participating securities	7,297		5,464
Net income available to common stockholders	$	53,842	$	54,017
Denominator:
Basic weighted average shares outstanding	65,373,285		64,319,977
Dilutive effect of nonparticipating share-based awards	—		35,270
Diluted weighted average shares outstanding	65,373,285		64,355,247
Earnings per share - Basic	$	0.82	$	0.84
Earnings per share - Diluted	$	0.82	$	0.84

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.

The Holdings limited partnership units are anti-dilutive primarily due to the impact of public company expenses. Unvested restricted share-based awards with non-forfeitable dividend rights during the vesting period 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 March 31,
Anti-Dilutive Weighted Average Shares Outstanding	2025	2024
Holdings limited partnership units	10,274,591	10,903,365
Unvested restricted share-based awards	5,392,148	5,473,187
Total	15,666,739	16,376,552