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				Nine Months Ended
	September 30,				September 30,
			2017				2017
	2018		As adjusted*		2018		As adjusted*
Numerator
Net income attributable to RE/MAX Holdings, Inc.	$	8,139	$	3,717	$	20,770	$	15,715
Denominator for basic net income per share of Class A common stock
Weighted average shares of Class A common stock outstanding		17,746,184		17,696,991		17,733,910		17,685,683
Denominator for diluted net income per share of Class A common stock
Weighted average shares of Class A common stock outstanding		17,746,184		17,696,991		17,733,910		17,685,683
Add dilutive effect of the following:
Restricted stock units		25,028		40,795		33,728		40,764
Weighted average shares of Class A common stock outstanding, diluted		17,771,212		17,737,786		17,767,638		17,726,447
Earnings per share of Class A common stock
Net income attributable to RE/MAX Holdings, Inc. per share of Class A common stock, basic	$	0.46	$	0.21	$	1.17	$	0.89
Net income attributable to RE/MAX Holdings, Inc. per share of Class A common stock, diluted	$	0.46	$	0.21	$	1.17	$	0.89

*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):


	Nine Months Ended September 30,
	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
June 30	May 30, 2018		0.20		3,549		2,512	May 31, 2017		0.18		3,185		2,261
September 30	August 29, 2018		0.20		3,549		2,512	August 30, 2017		0.18		3,185		2,261
		$	0.60	$	10,645	$	7,536		$	0.54	$	9,554	$	6,783

On October 31, 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 November 28, 2018 to stockholders of record at the close of business on November 14, 2018.