Earnings (Loss) Per Share and Dividends

12 Months Ended

Dec. 31, 2023

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,
	2023		2022		2021
Numerator
Net income (loss) attributable to RE/MAX Holdings, Inc.	$	(69,022)	$	6,110	$	(15,616)
Denominator for basic net income (loss) per share of Class A common stock
Weighted average shares of Class A common stock outstanding		18,111,409		18,678,774		18,690,442
Denominator for diluted net income (loss) per share of Class A common stock
Weighted average shares of Class A common stock outstanding		18,111,409		18,678,774		18,690,442
Add dilutive effect of the following:
Restricted stock (a)		—		165,922		—
Weighted average shares of Class A common stock outstanding, diluted		18,111,409		18,844,696		18,690,442
Net income (loss) attributable to RE/MAX Holdings, Inc. per share of Class A common stock
Basic	$	(3.81)	$	0.33	$	(0.84)
Diluted	$	(3.81)	$	0.32	$	(0.84)

(a) As the Company had a net loss for the years ended December 31, 2023 and 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,
	2023			2022			2021
Quarter end declared	Date paid	Per share		Date paid	Per share		Date paid	Per share
March 31	March 22, 2023	$	0.23	March 16, 2022	$	0.23	March 17, 2021	$	0.23
June 30	May 31, 2023		0.23	May 25, 2022		0.23	June 2, 2021		0.23
September 30	August 29, 2023		0.23	August 30, 2022		0.23	August 31, 2021		0.23
December 31	—		—	November 30, 2022		0.23	December 1, 2021		0.23
		$	0.69		$	0.92		$	0.92

During the fourth quarter 2023, the Company’s Board of Directors decided to suspend the Company’s quarterly dividend. In light of the recent litigation settlement (See Note 14, Commitments and Contingencies) and ongoing challenging housing and mortgage market conditions, the Company’s Board of Directors believes this action to preserve the Company’s capital is prudent.

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, 2023, 160,405 shares of the Company’s Class A common stock were repurchased and retired for $3.4 million excluding commissions during the first quarter, at a weighted average cost of $21.24. As of December 31, 2023, $62.5 million remained available under the share repurchase program.