Earnings (Loss) Per Share and Dividends

12 Months Ended

Dec. 31, 2021

Earnings (Loss) Per Share and Dividends

Earnings (Loss) Per Share and Dividends

5. Earnings (Loss) Per Share and Dividends

Earnings (Loss) Per Share

Basic earnings (loss) 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,
	2021		2020		2019
Numerator
Net income (loss) attributable to RE/MAX Holdings, Inc.	$	(15,616)	$	11,250	$	25,280
Denominator for basic net income (loss) per share of Class A common stock
Weighted average shares of Class A common stock outstanding		18,690,442		18,170,348		17,812,065
Denominator for diluted net income (loss) per share of Class A common stock
Weighted average shares of Class A common stock outstanding		18,690,442		18,170,348		17,812,065
Add dilutive effect of the following:
Restricted stock (a)		—		153,898		55,687
Weighted average shares of Class A common stock outstanding, diluted		18,690,442		18,324,246		17,867,752
Earnings (loss) per share of Class A common stock
Net income (loss) attributable to RE/MAX Holdings, Inc. per share of Class A common stock, basic	$	(0.84)	$	0.62	$	1.42
Net income (loss) attributable to RE/MAX Holdings, Inc. per share of Class A common stock, diluted	$	(0.84)	$	0.61	$	1.41

(a) As the Company had a net loss for the year ended December 31, 2021, these shares would have been considered anti-dilutive and therefore there is no effect on the weighted average shares of Class A common stock outstanding EPS calculation.

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 (loss) 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,
	2021			2020			2019
Quarter end declared	Date paid	Per share		Date paid	Per share		Date paid	Per share
March 31	March 17, 2021	$	0.23	March 18, 2020	$	0.22	March 20, 2019	$	0.21
June 30	June 2, 2021		0.23	June 2, 2020		0.22	May 29, 2019		0.21
September 30	August 31, 2021		0.23	September 2, 2020		0.22	August 28, 2019		0.21
December 31	December 1, 2021		0.23	December 2, 2020		0.22	November 27, 2019		0.21
		$	0.92		$	0.88		$	0.84

On February 22, 2022, the Company announced that its Board of Directors approved a quarterly dividend of $0.23 per share on all outstanding shares of Class A common stock, which is payable on March 16, 2022 to stockholders of record at the close of business on March 4, 2022.