Earnings Per Share

9 Months Ended

Sep. 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 September 30,				Nine months ended September 30,
	2019		2018		2019		2018
Numerator
Net income	$	29,692	$	20,472	$	101,158	$	74,384
Less: net income attributable to non-controlling interests	3,915		3,001		13,128		11,158
Net income attributable to Planet Fitness, Inc.	$	25,777	$	17,471	$	88,030	$	63,226
Denominator
Weighted-average shares of Class A common stock outstanding - basic	83,157,430		88,047,401		83,699,609		87,727,300
Effect of dilutive securities:
Stock options	606,888		382,499		609,788		319,610
Restricted stock units	42,588		27,904		44,775		17,141
Weighted-average shares of Class A common stock outstanding - diluted	83,806,906		88,457,804		84,354,172		88,064,051
Earnings per share of Class A common stock - basic	$	0.31	$	0.20	$	1.05	$	0.72
Earnings per share of Class A common stock - diluted	$	0.31	$	0.20	$	1.04	$	0.72

Weighted average shares of Class B common stock of 8,579,094 and 10,004,682 for the three months ended September 30, 2019 and 2018, respectively, and 8,798,695 and 10,550,857 for the nine months ended September 30, 2019 and 2018, respectively, were evaluated under the if-converted method for potential dilutive effects and were determined to be anti-dilutive. Weighted average stock options outstanding of 76,455 and 36,342 for the three months ended September 30, 2019 and 2018, respectively, and 50,063 and 114,628 for the nine months ended September 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 713 and 0 for the three months ended September 30, 2019 and 2018, respectively, and 1,688 and 11,245 for the nine months ended September 30, 2019 and 2018, respectively, were evaluated under the treasury stock method for potential dilutive effects and were determined to be anti-dilutive.