Earnings per share

6 Months Ended

Jun. 30, 2016

(9) Earnings per share

Basic earnings per share of Class A common stock is computed by dividing net income attributable to Planet Fitness, Inc. by the weighted-average number of shares of Class A common stock outstanding during the same period. Diluted earnings per share of Class A common stock is computed by dividing net income attributable to Planet Fitness, Inc. by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities. There were no shares of Class A or Class B common stock outstanding prior to August 6, 2015, therefore no earnings per share information has been presented for the three or six months ended June 30, 2015.

Shares of the Company’s Class B common stock do not share in the earnings or losses attributable to Planet Fitness, Inc. and are therefore not participating securities. As such, separate presentation of basic and diluted earnings per share of Class B common stock under the two-class method has not been presented. Shares of the Company’s Class B common stock are, however, considered potentially dilutive shares of Class A common stock because shares of Class B common stock, together with the related Holdings Units, are exchangeable into shares of Class A common stock on a one-for-one basis.

The following table sets forth reconciliations used to compute basic and diluted earnings per share of Class A common stock:

Basic net income per share:	For the three months ended June 30, 2016		For the six months ended June 30, 2016
Numerator
Net income	$	18,091	$	34,437
Less: net income attributable to non-controlling interests		13,959		26,936
Net income attributable to Planet Fitness, Inc.	$	4,132	$	7,501

Denominator
Weighted-average shares of Class A common stock outstanding - basic		36,771,417		36,684,701
Effect of dilutive securities:
Class B common stock		-		-
Stock options		-		-
Restricted stock units		1,695		1,486
Weighted-average shares of Class A common stock outstanding - diluted		36,773,112		36,686,187

Earnings per share of Class A common stock - basic	$	0.11	$	0.20
Earnings per share of Class A common stock - diluted	$	0.11	$	0.20

Class B common stock was evaluated under the if-converted method for potential dilutive effects and was determined to be anti-dilutive. Weighted average stock options outstanding of 218,941 and 172,975 for the three and six months ending June 30, 2016, respectively, were evaluated under the treasury stock method for potential dilutive effects and were determined to be anti-dilutive.