Earnings Per Share

3 Months Ended

Mar. 31, 2020

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 March 31,
	2020		2019
Numerator
Net income	$	10,383	$	31,639
Less: net income attributable to non-controlling interests	1,776		4,230
Net income attributable to Planet Fitness, Inc.	$	8,607	$	27,409
Denominator
Weighted-average shares of Class A common stock outstanding - basic	79,098,468		83,805,545
Effect of dilutive securities:
Stock options	574,286		569,864
Restricted stock units	50,614		49,866
Weighted-average shares of Class A common stock outstanding - diluted	79,723,368		84,425,275
Earnings per share of Class A common stock - basic	$	0.11	$	0.33
Earnings per share of Class A common stock - diluted	$	0.11	$	0.32

Weighted average shares of Class B common stock of 7,777,435 and 9,238,948 for the three months ended March 31, 2020 and 2019, 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 114,342 and 29,285 for the three months ended March 31, 2020 and 2019, 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 2,827 and 0 for the three months ended March 31, 2020 and 2019, respectively, were evaluated under the treasury stock method for potential dilutive effects and were determined to be anti-dilutive.