Earnings Per Share and Dividends

12 Months Ended

Dec. 31, 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 effect of time-based restricted stock units. The dilutive effect of performance-based restricted stock units is 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,
	2019		2018		2017
Numerator
Net income attributable to RE/MAX Holdings, Inc.	$	25,040	$	26,883	$	10,099
Denominator for basic net income per share of Class A common stock
Weighted average shares of Class A common stock outstanding		17,812,065		17,737,649		17,688,533
Denominator for diluted net income per share of Class A common stock
Weighted average shares of Class A common stock outstanding		17,812,065		17,737,649		17,688,533
Add dilutive effect of the following:
Restricted stock units		55,687		29,850		43,267
Weighted average shares of Class A common stock outstanding, diluted		17,867,752		17,767,499		17,731,800
Earnings per share of Class A common stock
Net income attributable to RE/MAX Holdings, Inc. per share of Class A common stock, basic	$	1.41	$	1.52	$	0.57
Net income attributable to RE/MAX Holdings, Inc. per share of Class A common stock, diluted	$	1.40	$	1.51	$	0.57

Outstanding Class B common stock does not share in the earnings of 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 during each quarter ended per share on all outstanding shares of Class A common stock were as follows (in thousands, except per share information):

	Year Ended December 31,
	2019			2018			2017
Quarter end declared	Date paid	Per share		Date paid	Per share		Date paid	Per share
March 31	March 20, 2019	$	0.21	March 21, 2018	$	0.20	March 22, 2017	$	0.18
June 30	May 29, 2019		0.21	May 30, 2018		0.20	May 31, 2017		0.18
September 30	August 29, 2019		0.21	August 29, 2018		0.20	August 30, 2017		0.18
December 31	November 27, 2019		0.21	November 28, 2018		0.20	November 29, 2017		0.18
		$	0.84		$	0.80		$	0.72

On February 19, 2020, the Company’s Board of Directors declared a quarterly dividend of $0.22 per share on all outstanding shares of Class A common stock, which is payable on March 18, 2020 to stockholders of record at the close of business on March 4, 2020.