Earnings Per Share

6 Months Ended

Jun. 30, 2019

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.

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:



	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Numerator
Net income	$	39,827	$	30,418	$	71,466	$	53,912
Less: net income attributable to non-controlling interests	4,983		4,544		9,213		8,157
Net income attributable to Planet Fitness, Inc.	$	34,844	$	25,874	$	62,253	$	45,755
Denominator
Weighted-average shares of Class A common stock outstanding - basic	84,142,975		87,693,377		83,975,192		87,564,596
Effect of dilutive securities:
Stock options	643,120		389,994		614,050		351,987
Restricted stock units	49,088		21,960		49,408		14,886
Weighted-average shares of Class A common stock outstanding - diluted	84,835,183		88,105,331		84,638,650		87,931,469
Earnings per share of Class A common stock - basic	$	0.41	$	0.30	$	0.74	$	0.52
Earnings per share of Class A common stock - diluted	$	0.41	$	0.29	$	0.74	$	0.52

Weighted average shares of Class B common stock of 8,585,294 and 10,704,794 for the three months ended June 30, 2019 and 2018, respectively, and 8,910,315 and 10,828,471 for the six months ended June 30, 2019 and 2018, respectively, were evaluated under the if-converted method for potential dilutive effects and were not determined to be dilutive. Weighted average stock options outstanding of 72,984 and 164,341 for the three months ended June 30, 2019 and 2018, respectively, and 36,648 and 82,165 for the six months ended June 30, 2019 and 2018, respectively, were evaluated under the treasury stock method for potential dilutive effects and were determined to be anti-dilutive. Weighted average restricted stock units outstanding of 1,209 and 579 for the six months ended June 30, 2019 and 2018, respectively, were evaluated under the treasury stock method for potential dilutive effects and were determined to be anti-dilutive.