Earnings (Loss) Per Share and Dividends

12 Months Ended

Dec. 31, 2022

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,
	2022		2021		2020
Numerator
Net income (loss) attributable to RE/MAX Holdings, Inc.	$	6,110	$	(15,616)	$	11,250
Denominator for basic net income (loss) per share of Class A common stock
Weighted average shares of Class A common stock outstanding		18,678,774		18,690,442		18,170,348
Denominator for diluted net income (loss) per share of Class A common stock
Weighted average shares of Class A common stock outstanding		18,678,774		18,690,442		18,170,348
Add dilutive effect of the following:
Restricted stock (a)		165,922		—		153,898
Weighted average shares of Class A common stock outstanding, diluted		18,844,696		18,690,442		18,324,246
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	$	0.33	$	(0.84)	$	0.62
Net income (loss) attributable to RE/MAX Holdings, Inc. per share of Class A common stock, diluted	$	0.32	$	(0.84)	$	0.61

(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,
	2022			2021			2020
Quarter end declared	Date paid	Per share		Date paid	Per share		Date paid	Per share
March 31	March 16, 2022	$	0.23	March 17, 2021	$	0.23	March 18, 2020	$	0.22
June 30	May 25, 2022		0.23	June 2, 2021		0.23	June 2, 2020		0.22
September 30	August 30, 2022		0.23	August 31, 2021		0.23	September 2, 2020		0.22
December 31	November 30, 2022		0.23	December 1, 2021		0.23	December 2, 2020		0.22
		$	0.92		$	0.92		$	0.88

On February 15, 2023, 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 22, 2023 to stockholders of record at the close of business on March 8, 2023.

Share Repurchases and Retirement

In January 2022, the Company’s Board of Directors authorized a common stock repurchase program of up to $100 million. During the year ended December 31, 2022, 1,533,728 shares of the Company’s Class A common stock were repurchased and retired for $34.1 million excluding commissions, at a weighted average cost of $22.23. As of December 31, 2022, $65.9 million remained available under the share repurchase program.