Earnings Per Share

3 Months Ended

Mar. 31, 2024

2. Earnings Per Share

Basic and diluted earnings per share is computed using the two-class method, which is an earnings allocation method that determines earnings per share for common shares and participating securities. The restricted stock the Company grants are participating securities containing non-forfeitable rights to receive dividends. Accordingly, any unvested restricted stock is included in the basic and diluted earnings per share computation. Additionally, in accordance with current accounting guidance, the revaluation of redeemable non-controlling interest (see Note 4 Redeemable Non-Controlling Interest), net of tax, charged directly to retained earnings is included in the earnings per basic and diluted share calculation.

The computation of basic and diluted earnings per share are as follows.

	Three Months Ended
	March 31, 2024			March 31, 2023
	(In thousands, except per share data)
Earnings per share
Computation of earnings per share - USPH shareholders:
Net income attributable to USPH shareholders	$	8,046		$	7,410
Charges to retained earnings:
Revaluation of redeemable non-controlling interest		(1,439	)		119
Tax effect at statutory rate (federal and state)		368			(30	)
	$	6,975		$	7,499

Earnings per share (basic and diluted)	$	0.46		$	0.58

Shares used in computation - basic and diluted		15,017			13,025