Marcus & Millichap, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Earnings per Share

Earnings per Share

12 Months Ended

Dec. 31, 2020

15.	Earnings per Share

Basic and diluted earnings per share for the years ended December 31, 2020, 2019 and 2018 consisted of the following (in thousands, except per share data):


	Years Ended December 31,
	2020			2019			2018
Numerator (Basic and Diluted):
Net income	$	42,838		$	76,930		$	87,257
Increase in value for stock settled consideration, net		3			—			—

Adjusted net income	$	42,835		$	76,930		$	87,257

Denominator:
Basic
Weighted Average Common Shares Issued and Outstanding		39,318			39,083			38,637
Deduct: Unvested RSAs (1)		(18	)		(21	)		(30	)
Add: Fully vested DSUs (2)		342			342			542

Weighted Average Common Shares Outstanding		39,642			39,404			39,149

Basic earnings per common share	$	1.08		$	1.95		$	2.23

Diluted
Weighted Average Common Shares Outstanding from above		39,642			39,404			39,149
Add: Dilutive effect of RSUs, RSAs & ESPP		67			144			234
Add: Contingently issuable shares (3)		26			—			—

Weighted Average Common Shares Outstanding		39,735			39,548			39,383

Diluted earnings per common share	$	1.08		$	1.95		$	2.22

Antidilutive shares excluded from diluted earnings per common share (4)		684			348			137

(1)	RSAs were issued and outstanding to the non-employee directors and generally have a one-year vesting term subject to service requirements. See Note 12 – “Stock-Based Compensation Plans” for additional information.

(2)	Shares are included in weighted average common shares outstanding as the shares are fully vested but have not yet been delivered. See Note 12 – “Stock-Based Compensation Plans” for additional information.

(3)	Relates to contingently issuable stock settled consideration.

(4)	Primarily pertaining to RSU grants to the Company’s employees and independent contractors.