Earnings Per Share and Dividends

6 Months Ended

Jun. 30, 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				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Numerator
Net income attributable to RE/MAX Holdings, Inc.	$	7,529	$	6,961	$	12,442	$	11,901
Denominator for basic net income per share of Class A common stock
Weighted average shares of Class A common stock outstanding		17,696,842		17,636,590		17,679,936		17,610,470
Denominator for diluted net income per share of Class A common stock
Weighted average shares of Class A common stock outstanding		17,696,842		17,636,590		17,679,936		17,610,470
Add dilutive effect of the following:
Stock options		—		4,360		—		10,047
Restricted stock units		26,960		28,045		40,628		32,916
Weighted average shares of Class A common stock outstanding, diluted		17,723,802		17,668,995		17,720,564		17,653,433
Earnings per share of Class A common stock
Net income attributable to RE/MAX Holdings, Inc. per share of Class A common stock, basic	$	0.43	$	0.39	$	0.70	$	0.68
Net income attributable to RE/MAX Holdings, Inc. per share of Class A common stock, diluted	$	0.42	$	0.39	$	0.70	$	0.67

There were no anti-dilutive shares for the three and six months ended June 30, 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 each of the three months ended March 31, 2017 and June 30, 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 $6,369,000 in total dividends. Of this amount, $3,184,000 was paid on March 22, 2017 and $3,185,000 was paid on May 31, 2017. The Company made corresponding distributions to non-controlling unitholders of $2,261,000 on each of March 22, 2017 and May 31, 2017. During both the three months ended March 31, 2016 and June 30, 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 $5,285,000 in total dividends. Of this amount, $2,638,000 was paid on March 23, 2016 and $2,647,000 was paid on June 2, 2016. The Company made corresponding distributions to non-controlling unitholders of $1,884,000 on each of March 23, 2016 and June 2, 2016. On August 2, 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 August 30, 2017 to shareholders of record at the close of business on August 16, 2017.