Net Earnings Per Share

9 Months Ended

Mar. 31, 2016

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. 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.

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.

Basic and diluted net earnings per share of Class A Common Stock for the three and nine months ended March 31, 2016 and 2015 have been computed as follows (in thousands, except share and per share amounts):



	Three Months Ended				Nine Months Ended
	March 31, 2016		March 31, 2015		March 31, 2016		March 31, 2015
Basic:
Net income attributable to Malibu Boats, Inc.	$	5,776	$	4,365	$	14,438	$	9,008
Shares used in computing basic net income per share:
Weighted-average Class A Common Stock	17,868,896		15,608,657		17,876,726		15,536,627
Weighted-average participating restricted stock units convertible into Class A Common Stock	106,818		63,265		91,380		62,410
Basic weighted-average shares outstanding	17,975,714		15,671,922		17,968,106		15,599,037
Basic net income per share	$	0.32	$	0.28	$	0.80	$	0.58

Diluted:
Net income attributable to Malibu Boats, Inc.	$	5,776	$	4,365	$	14,438	$	9,008
Shares used in computing diluted net income per share:
Basic weighted-average shares outstanding	17,975,714		15,671,922		17,968,106		15,599,037
Restricted stock units granted to employees	27,144		4,321		54,233		1,278
Diluted weighted-average shares outstanding ¹	18,002,858		15,676,243		18,022,339		15,600,315
Diluted net income per share	$	0.32	$	0.28	$	0.80	$	0.58

¹The Company excluded 1,484,611 and 7,001,844 potentially dilutive shares from the calculation of diluted net income per share for the three months ended March 31, 2016 and 2015 and 1,415,723 and 7,001,844 potentially dilutive shares from the calculation of diluted net income per share for nine months ended March 31, 2016 and 2015, 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.