5. 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
	2018		As adjusted*
Numerator
Net income attributable to RE/MAX Holdings, Inc.	$	4,983	$	4,540
Denominator for basic net income per share of Class A common stock
Weighted average shares of Class A common stock outstanding		17,709,095		17,662,842
Denominator for diluted net income per share of Class A common stock
Weighted average shares of Class A common stock outstanding		17,709,095		17,662,842
Add dilutive effect of the following:
Restricted stock units		53,038		53,171
Weighted average shares of Class A common stock outstanding, diluted		17,762,133		17,716,013
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	$	0.26
Net income attributable to RE/MAX Holdings, Inc. per share of Class A common stock, diluted	$	0.28	$	0.26

*See Note 3, Revenue for more information.

Outstanding Class B common stock 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):


	Three Months Ended March 31,
	2018							2017
	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 21, 2018	$	0.20	$	3,547	$	2,512	March 22, 2017	$	0.18	$	3,184	$	2,261

On May 2, 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 May 30, 2018 to stockholders of record at the close of business on May 16, 2018.