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
	December 31,
	2017		2016		2015
Numerator
Net income attributable to RE/MAX Holdings, Inc.	$	12,815	$	22,396	$	16,412
Denominator for basic net income per share of Class A common stock
Weighted average shares of Class A common stock outstanding		17,688,533		17,628,741		12,671,051
Denominator for diluted net income per share of Class A common stock
Weighted average shares of Class A common stock outstanding		17,688,533		17,628,741		12,671,051
Add dilutive effect of the following:
Stock options		—		5,059		130,001
Restricted stock units		43,267		43,968		28,162
Weighted average shares of Class A common stock outstanding, diluted		17,731,800		17,677,768		12,829,214
Earnings per share of Class A common stock
Net income attributable to RE/MAX Holdings, Inc. per share of Class A common stock, basic	$	0.72	$	1.27	$	1.30
Net income attributable to RE/MAX Holdings, Inc. per share of Class A common stock, diluted	$	0.72	$	1.27	$	1.28

There were no anti-dilutive shares for the years ended December 31, 2017, 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

Dividends declared and paid to holders of the Company’s Class A common stock during the years ended December 31, 2017, 2016 and 2015 were $12.7 million, $10.6 million and $24.0 million, respectively. Dividends declared and paid quarterly per share on all outstanding shares of Class A common stock during the years ended December 31, 2017, 2016 and 2015 were as follows:


	Year Ended December 31,
	2017			2016				2015
	Date paid	Per share		Date paid		Per share		Date paid	Per share
Dividend declared during quarter ended:
March 31	March 22, 2017	$	0.18		March 23, 2016	$	0.15	April 8, 2015	$	1.625
June 30	May 31, 2017		0.18		June 2, 2016		0.15	June 4, 2015		0.125
September 30	August 30, 2017		0.18		August 31, 2016		0.15	September 3, 2015		0.125
December 31	November 29, 2017		0.18		December 1, 2016		0.15	November 27, 2015		0.125
		$	0.72			$	0.60		$	2.00

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.