COMPUTATION OF NET INCOME PER COMMON SHARE

12 Months Ended

Dec. 31, 2022

COMPUTATION OF NET INCOME PER COMMON SHARE

COMPUTATION OF NET INCOME PER COMMON SHAREBasic net income per share is computed by dividing income from operations attributable to stockholders of The Ensign Group, Inc. by the weighted average number of outstanding common shares for the period. The computation of diluted net income per share is similar to the computation of basic net income per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued.

A reconciliation of the numerator and denominator used in the calculation of basic net income per common share follows:


	Year Ended December 31,
		2022		2021		2020
NUMERATOR:
Net income		$	224,652	$	197,725	$	171,364
Less: net (loss) income attributable to noncontrolling interests		(29)		3,073		886
Net income attributable to The Ensign Group, Inc.		$	224,681	$	194,652	$	170,478





DENOMINATOR:
Weighted average shares outstanding for basic net income per share		54,887		54,486		53,434

Basic net income per common share:		$	4.09	$	3.57	$	3.19

A reconciliation of the numerator and denominator used in the calculation of diluted net income per common share follows:


	Year Ended December 31,
		2022		2021		2020
NUMERATOR:
Net income		$	224,652	$	197,725	$	171,364
Less: net (loss) income attributable to noncontrolling interests		(29)		3,073		886
Net income attributable to The Ensign Group, Inc.		$	224,681	$	194,652	$	170,478





DENOMINATOR:
Weighted average common shares outstanding		54,887		54,486		53,434
Plus: incremental shares from assumed conversion (1)		1,984		2,439		2,353
Adjusted weighted average common shares outstanding		56,871		56,925		55,787

Diluted net income per common share:		$	3.95	$	3.42	$	3.06

(1) Options outstanding which are anti-dilutive and therefore not factored into the weighted average common shares amount above were 780, 198 and 956 for the years ended December 31, 2022, 2021 and 2020, respectively.