Earnings Per Share and Dividends

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share and Dividends

4. 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 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):

	Three months ended September30, 2014		Nine months ended September30, 2014
Numerator
Net income attributable to RE/MAX Holdings, Inc.	$	4,275	$	11,063
Denominator for basic net income per share of Class A    common stock
Weighted average shares of Class A common stock    outstanding		11,579,669		11,593,738
Denominator for diluted net income per share of Class A    common stock
Weighted average shares of Class A common stock    outstanding		11,579,669		11,593,738
Add dilutive effect of the following:
Stock options		590,285		590,736
Restricted stock units		59,056		50,686
Weighted average shares of Class A common stock    outstanding, diluted		12,229,010		12,235,160
Earnings per share of Class A common stock
Net income attributable to RE/MAX Holdings, Inc.    per share of Class A common stock, basic	$	0.37	$	0.95
Net income attributable to RE/MAX Holdings, Inc.    per share of Class A common stock, diluted	$	0.35	$	0.90

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.

Dividends

During the nine months ended September 30, 2014, the Company’s Board of Directors declared quarterly dividends of $0.0625 per share on all outstanding shares of Class A common stock in the first, second and third quarters of 2014, representing $2,173,000 in total dividends. Of this amount, $725,000 was paid on April 18, 2014 and $724,000 was paid on each of June 5, 2014 and September 3, 2014.  No dividends were declared or paid during the nine months ended September 30, 2013.  On November 6, 2014, the Company’s Board of Directors declared a quarterly dividend of $0.0625 per share on all outstanding shares of Class A common stock, which is payable on December 4, 2014 to shareholders of record at the close of business on November 20, 2014.