Net Earnings Per Share

6 Months Ended

Dec. 31, 2014

Basic net earnings per share of Class A Common Stock is computed by dividing net earnings attributable to the Company's earnings by the weighted average number of shares of Class A Common Stock outstanding during the period. The weighted average number of shares of Class A Common Stock outstanding used in computing basic net earnings per share includes fully vested restricted stock units awarded to directors that are entitled to participate in distributions to common stockholders through receipt of additional units of equivalent value to the dividends paid to Class A Common stockholders.

Diluted net earnings per share of Class A Common Stock is computed similarly to basic net earnings per share except the weighted average shares outstanding are increased to include additional shares from the assumed exercise of any common stock equivalents using the treasury method, if dilutive. The Company’s LLC Units are considered common stock equivalents for this purpose. The number of additional shares of Class A Common Stock related to these common stock equivalents is calculated using the treasury stock method. The portion of consideration paid in Class A Common Stock related to the acquisition of Malibu Boats Pty. Ltd. that is subject to a time-based restriction is also included in the denominator.

All earnings prior to and up to February 5, 2014, the date of completion of the IPO, were entirely allocable to non-controlling interest and, as a result, earnings per share information is not applicable for reporting periods prior to this date. Basic and diluted net earnings per share of Class A Common Stock for the three and six months ended December 31, 2014 have been computed as follows (in thousands, except share and per share amounts):



	Three Months Ended December 31, 2014		Six Months Ended December 31, 2014
Basic:
Net income attributable to Malibu Boats, Inc.	$	3,264	$	4,643
Shares used in computing basic net income per share:
Weighted-average Class A Common Stock	15,473,570		15,098,418
Weighted-average participating restricted stock units convertible into Class A Common Stock	63,270		61,995
Basic weighted-average shares outstanding	15,536,840		15,160,413
Basic net income per share	$	0.21	$	0.31

Diluted:
Net income attributable to Malibu Boats, Inc.	$	3,264	$	4,643
Shares used in computing diluted net income per share:
Basic weighted-average shares outstanding	15,536,840		15,160,413
Weighted-average restricted shares issued for acquisition	91,550		45,775
Diluted weighted-average shares outstanding ¹	15,628,390		15,206,188
Diluted net income per share	$	0.21	$	0.31

¹The Company excluded 7,046,594 potentially dilutive shares from the calculation of diluted net income per share for the three and six months ended December 31, 2014, as these shares would have been antidilutive.

The shares of Class B Common Stock do not share in the earnings or losses of Malibu Boats, Inc. and are therefore not included in the calculation. Accordingly, basic and diluted net earnings per share of Class B Common Stock has not been presented.

- Definition

The entire disclosure for earnings per share.

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