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 share and per share information):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Numerator
Net income attributable to RE/MAX Holdings, Inc.	$	6,911	$	4,797	$	18,812	$	12,474
Denominator for basic net income per share of Class A common stock
Weighted average shares of Class A common stock outstanding		17,645,696		12,333,690		17,622,298		12,127,548
Denominator for diluted net income per share of Class A common stock
Weighted average shares of Class A common stock outstanding		17,645,696		12,333,690		17,622,298		12,127,548
Add dilutive effect of the following:
Stock options		—		51,171		6,714		163,777
Restricted stock units		45,945		35,887		37,728		24,338
Weighted average shares of Class A common stock outstanding, diluted		17,691,641		12,420,748		17,666,740		12,315,663
Earnings per share of Class A common stock
Net income attributable to RE/MAX Holdings, Inc. per share of Class A common stock, basic	$	0.39	$	0.39	$	1.07	$	1.03
Net income attributable to RE/MAX Holdings, Inc. per share of Class A common stock, diluted	$	0.39	$	0.39	$	1.06	$	1.01

There were no anti-dilutive shares for the three and nine months ended September 30, 2016 and 2015. 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

The Company’s Board of Directors declared quarterly dividends of $0.15 per share on all outstanding shares of Class A common stock in each of the first three quarters of 2016, or $7,932,000 in total dividends. Of this amount, $2,638,000 was paid on March 23, 2016, $2,647,000 was paid on June 2, 2016, and $2,647,000 was paid on August 31, 2016. The Company made corresponding distributions to non-controlling unitholders of $1,884,000 on March 23, 2016, June 2, 2016, and August 31, 2016. The Company’s Board of Directors declared quarterly dividends of $0.125 per share on all outstanding shares of Class A common stock in the first, second and third quarters of 2015, or $4,571,000 in total dividends. Of this amount, $1,500,000 was paid on April 8, 2015, $1,529,000 was paid on June 4, 2015 and $1,542,000 was paid on September 3, 2015. The Company made corresponding distributions to non-controlling unitholders of $2,217,000 on April 8, 2015, June 4, 2015 and September 3, 2015. Additionally, during the nine months ended September 30, 2015, the Company’s Board of Directors declared a special dividend of $1.50 per share on all outstanding shares of Class A common stock, or $17,883,000 in total dividends, which along with a corresponding distribution to non-controlling unitholders of $26,602,000 was paid on April 8, 2015.

On November 3, 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 December 1, 2016 to shareholders of record at the close of business on November 17, 2016.