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 effect of time-based restricted stock units. The dilutive effect of performance-based restricted stock units are measured using the guidance for contingently issuable shares.

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
	2018		As adjusted*		As adjusted*
Numerator
Net income attributable to RE/MAX Holdings, Inc.	$	27,044	$	10,238	$	22,221
Denominator for basic net income per share of Class A common stock
Weighted average shares of Class A common stock outstanding		17,737,649		17,688,533		17,628,741
Denominator for diluted net income per share of Class A common stock
Weighted average shares of Class A common stock outstanding		17,737,649		17,688,533		17,628,741
Add dilutive effect of the following:
Stock options		—		—		5,059
Restricted stock units		29,850		43,267		43,968
Weighted average shares of Class A common stock outstanding, diluted		17,767,499		17,731,800		17,677,768
Earnings per share of Class A common stock
Net income attributable to RE/MAX Holdings, Inc. per share of Class A common stock, basic	$	1.52	$	0.58	$	1.26
Net income attributable to RE/MAX Holdings, Inc. per share of Class A common stock, diluted	$	1.52	$	0.58	$	1.26

*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):


	Year Ended December 31,
	2018			2017				2016
	Date paid	Per share		Date paid		Per share		Date paid	Per share
Dividend declared during quarter ended:
March 31	March 21, 2018	$	0.20		March 22, 2017	$	0.18	March 23, 2016	$	0.15
June 30	May 30, 2018		0.20		May 31, 2017		0.18	June 2, 2016		0.15
September 30	August 29, 2018		0.20		August 30, 2017		0.18	August 31, 2016		0.15
December 31	November 28, 2018		0.20		November 29, 2017		0.18	December 1, 2016		0.15
		$	0.80			$	0.72		$	0.60

On February 20, 2019, the Company’s Board of Directors declared a quarterly dividend of $0.21 per share on all outstanding shares of Class A common stock, which is payable on March 20, 2019 to stockholders of record at the close of business on March 6, 2019.