Earnings Per Share and Dividends

12 Months Ended

Dec. 31, 2015

4. Earnings Per Share and Dividends

Earnings Per Share

Basic earnings per share (“EPS”) measures the performance of an entity over the reporting period. Diluted EPS measures the performance of an entity over the reporting period while giving effect to all potentially dilutive common shares that were outstanding during the period. The treasury stock method is used to determine the dilutive potential of stock options and restricted stock units.

The following is a reconciliation of the numerator and denominator used in the basic and diluted EPS calculations (in thousands, except shares and per share information):


					Period from
	Year Ended		Year Ended		October 7 through
	December 31, 2015		December 31, 2014		December 31, 2013
Numerator
Net income attributable to RE/MAX Holdings, Inc.	$	16,655	$	13,436	$	1,506
Denominator for basic net income per share of Class A common stock
Weighted average shares of Class A common stock outstanding		12,671,051		11,611,164		11,607,971
Denominator for diluted net income per share of Class A common stock
Weighted average shares of Class A common stock outstanding		12,671,051		11,611,164		11,607,971
Add dilutive effect of the following:
Stock options		130,001		578,888		597,895
Restricted stock units		28,162		51,925		29,039
Weighted average shares of Class A common stock outstanding, diluted		12,829,214		12,241,977		12,234,905
Earnings per share of Class A common stock
Net income attributable to RE/MAX Holdings, Inc. per share of Class A common stock, basic	$	1.31	$	1.16	$	0.13
Net income attributable to RE/MAX Holdings, Inc. per share of Class A common stock, diluted	$	1.30	$	1.10	$	0.12

EPS information is not applicable for reporting periods prior to the completion of the IPO which became effective on October 7, 2013. The one share of Class B common stock outstanding does not share in the earnings of RE/MAX Holdings and is therefore not a participating security. Accordingly, basic and diluted net income per share of Class B common stock has not been presented.

Dividends

Dividends declared and paid to holders of the Company’s Class A common stock during the years ended December 31, 2015 and 2014 were $24,003,000 and $2,901,000, respectively. Dividends declared and paid quarterly per share on all outstanding shares of Class A common stock by the Company’s Board of Directors during years ended December 31, 2015 and 2014 were as follows:


	Year Ended December 31,
	2015			2014
	Per share		Date paid	Per share		Date paid
Dividend declared during quarter ended:
March 31	$	1.6250	April 8, 2015	$	0.0625	April 18, 2014
June 30		0.1250	June 4, 2015		0.0625	June 5, 2014
September 30		0.1250	September 3, 2015		0.0625	September 3, 2014
December 31		0.1250	November 27, 2015		0.0625	December 4, 2014
	$	2.0000		$	0.2500

No dividends were declared or paid during the year ended December 31, 2013. On February 24, 2016, the Company’s Board of Directors declared a quarterly dividend of $0.15 per share on all outstanding shares of Class A common stock, which is payable on March 23, 2016 to stockholders of record at the close of business on March 9, 2016.