Earnings Per Share and Dividends

12 Months Ended

Dec. 31, 2016

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):


	Year Ended		Year Ended		Year Ended
	December 31, 2016		December 31, 2015		December 31, 2014
Numerator
Net income attributable to RE/MAX Holdings, Inc.	$	22,737	$	16,655	$	13,436
Denominator for basic net income per share of Class A common stock
Weighted average shares of Class A common stock outstanding		17,628,741		12,671,051		11,611,164
Denominator for diluted net income per share of Class A common stock
Weighted average shares of Class A common stock outstanding		17,628,741		12,671,051		11,611,164
Add dilutive effect of the following:
Stock options		5,059		130,001		578,888
Restricted stock units		43,968		28,162		51,925
Weighted average shares of Class A common stock outstanding, diluted		17,677,768		12,829,214		12,241,977
Earnings per share of Class A common stock
Net income attributable to RE/MAX Holdings, Inc. per share of Class A common stock, basic	$	1.29	$	1.31	$	1.16
Net income attributable to RE/MAX Holdings, Inc. per share of Class A common stock, diluted	$	1.29	$	1.30	$	1.10

There were no anti-dilutive shares for the years ended December 31, 2016, 2015 and 2014. 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, 2016, 2015 and 2014 were $10,578,000, $24,003,000 and $2,901,000, respectively. Dividends declared and paid quarterly per share on all outstanding shares of Class A common stock during years ended December 31, 2016, 2015 and 2014 were as follows:


	Year Ended December 31,
	2016			2015			2014
	Per share		Date paid	Per share		Date paid	Per share		Date paid
Dividend declared during quarter ended:
March 31	$	0.1500	March 23, 2016	$	1.6250	April 8, 2015	$	0.0625	April 18, 2014
June 30		0.1500	June 2, 2016		0.1250	June 4, 2015		0.0625	June 5, 2014
September 30		0.1500	August 31, 2016		0.1250	September 3, 2015		0.0625	September 3, 2014
December 31		0.1500	December 1, 2016		0.1250	November 27, 2015		0.0625	December 4, 2014
	$	0.6000		$	2.0000		$	0.2500

On February 22, 2017, the Company’s Board of Directors declared a quarterly dividend of $0.18 per share on all outstanding shares of Class A common stock, which is payable on March 22, 2017 to stockholders of record at the close of business on March 8, 2017.