Earnings Per Share

12 Months Ended

Dec. 31, 2013

Earnings Per Share

4. Earnings Per Share

Basic earnings per share (“EPS”) measures the performance of an entity over the reporting period. Diluted earnings per share 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 shares and per share information):

	Period from October 7 through December 31,
	2013
Numerator
Net income attributable to RE/MAX Holdings, Inc.	$	1,506
Denominator for basic net income per share of Class A common stock
Weighted average shares of Class A common stock outstanding		11,607,971
Denominator for diluted net income per share of Class A common stock
Weighted average shares of Class A common stock outstanding		11,607,971
Add dilutive effect of the following:
Stock options		597,895
Restricted stock units		29,039
Weighted average shares of Class A common stock outstanding, diluted		12,234,905
Earnings per share of Class A common stock
Net income attributable to RE/MAX Holdings, Inc. per share of Class A common stock, basic	$	0.13
Net income attributable to RE/MAX Holdings, Inc. per share of Class A common stock, diluted	$	0.12

EPS information is not applicable for reporting periods prior to the completion of the IPO which became effective on October 7, 2013. The one share of Class B common stock outstanding 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.