Earnings Per Share and Dividends

3 Months Ended

Mar. 31, 2017

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
	March 31,
	2017		2016
Numerator
Net income attributable to RE/MAX Holdings, Inc.	$	4,912	$	4,940
Denominator for basic net income per share of Class A common stock
Weighted average shares of Class A common stock outstanding		17,662,842		17,584,351
Denominator for diluted net income per share of Class A common stock
Weighted average shares of Class A common stock outstanding		17,662,842		17,584,351
Add dilutive effect of the following:
Stock options		—		15,635
Restricted stock units		53,171		38,681
Weighted average shares of Class A common stock outstanding, diluted		17,716,013		17,638,667
Earnings per share of Class A common stock
Net income attributable to RE/MAX Holdings, Inc. per share of Class A common stock, basic	$	0.28	$	0.28
Net income attributable to RE/MAX Holdings, Inc. per share of Class A common stock, diluted	$	0.28	$	0.28

There were no anti-dilutive shares for the three months ended March 31, 2017 and 2016. 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

During the three months ended March 31, 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, or $3,184,000 in total dividends, which along with a corresponding distribution to non-controlling unitholders of $2,261,000, was paid on March 22, 2017. During the three months ended March 31, 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, or $2,638,000 in total dividends, which along with a corresponding distribution to non-controlling unitholders of $1,884,000, was paid on March 23, 2016. On May 3, 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 May 31, 2017 to shareholders of record at the close of business on May 17, 2017.