Earnings Per Share and Dividends

6 Months Ended

Jun. 30, 2019

Earnings Per Share and Dividends

Earnings Per Share and Dividends

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				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Numerator
Net income attributable to RE/MAX Holdings, Inc.	$	8,570	$	7,648	$	12,979	$	12,631
Denominator for basic net income per share of Class A common stock
Weighted average shares of Class A common stock outstanding		17,808,321		17,746,042		17,791,942		17,727,671
Denominator for diluted net income per share of Class A common stock
Weighted average shares of Class A common stock outstanding		17,808,321		17,746,042		17,791,942		17,727,671
Add dilutive effect of the following:
Restricted stock units		25,637		23,599		33,938		35,921
Weighted average shares of Class A common stock outstanding, diluted		17,833,958		17,769,641		17,825,880		17,763,592
Earnings per share of Class A common stock
Net income attributable to RE/MAX Holdings, Inc. per share of Class A common stock, basic	$	0.48	$	0.43	$	0.73	$	0.71
Net income attributable to RE/MAX Holdings, Inc. per share of Class A common stock, diluted	$	0.48	$	0.43	$	0.73	$	0.71

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):

	Six Months Ended June 30,
	2019							2018
	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 20, 2019	$	0.21	$	3,740	$	2,638	March 21, 2018	$	0.20	$	3,547	$	2,512
June 30	May 29, 2019		0.21		3,739		2,638	May 30, 2018		0.20		3,549		2,512
		$	0.42	$	7,479	$	5,276		$	0.40	$	7,096	$	5,024

On July 31, 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 August 28, 2019 to stockholders of record at the close of business on August 14, 2019.