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,
	2017		2016		2017		2016
Numerator
Net income attributable to RE/MAX Holdings, Inc.	$	3,835	$	6,786	$	16,277	$	18,539
Denominator for basic net income per share of Class A common stock
Weighted average shares of Class A common stock outstanding		17,696,991		17,645,696		17,685,683		17,622,298
Denominator for diluted net income per share of Class A common stock
Weighted average shares of Class A common stock outstanding		17,696,991		17,645,696		17,685,683		17,622,298
Add dilutive effect of the following:
Stock options		—		—		—		6,714
Restricted stock units		40,795		45,945		40,764		37,728
Weighted average shares of Class A common stock outstanding, diluted		17,737,786		17,691,641		17,726,447		17,666,740
Earnings per share of Class A common stock
Net income attributable to RE/MAX Holdings, Inc. per share of Class A common stock, basic	$	0.22	$	0.38	$	0.92	$	1.05
Net income attributable to RE/MAX Holdings, Inc. per share of Class A common stock, diluted	$	0.22	$	0.38	$	0.92	$	1.05

There were no anti-dilutive shares for the three and nine months ended September 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

Dividends declared and paid quarterly per share on all outstanding shares of Class A common stock were as follows (in thousands, except share and per share information):


	Nine Months Ended September 30,
	2017							2016
	Date paid	Per share		Amount paid to Class A stockholders		Amount paid to non-controlling unitholders		Date paid	Per share		Amount paid to Class A stockholders		Amount paid to non-controlling unitholders
Dividend declared during quarter ended:
March 31	March 22, 2017	$	0.18	$	3,184	$	2,261	March 23, 2016	$	0.15	$	2,638	$	1,884
June 30	May 31, 2017		0.18		3,185		2,261	June 2, 2016		0.15		2,647		1,884
September 30	August 30, 2017		0.18		3,185		2,261	August 31, 2016		0.15		2,647		1,884
		$	0.54	$	9,554	$	6,783		$	0.45	$	7,932	$	5,652

On November 1, 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 was paid on November 29, 2017 to shareholders of record at the close of business on November 15, 2017. On February 21, 2018, the Company’s Board of Directors declared a quarterly dividend of $0.20 per share on all outstanding shares of Class A common stock, which is payable on March 21, 2018 to stockholders of record at the close of business on March 7, 2018.