Net Earnings Per Share

6 Months Ended

Dec. 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 six months ended December 31, 2016 and 2015 have been computed as follows (in thousands, except share and per share amounts):



	Three Months Ended				Six Months Ended
	December 31, 2016		December 31, 2015		December 31, 2016		December 31, 2015
Basic:
Net income attributable to Malibu Boats, Inc.	$	6,901	$	5,104	$	10,681	$	8,662
Shares used in computing basic net income per share:
Weighted-average Class A Common Stock	17,648,208		17,891,875		17,634,530		17,880,640
Weighted-average participating restricted stock units convertible into Class A Common Stock	137,914		94,642		125,726		83,660
Basic weighted-average shares outstanding	17,786,122		17,986,517		17,760,256		17,964,300
Basic net income per share	$	0.39	$	0.28	$	0.60	$	0.48

Diluted:
Net income attributable to Malibu Boats, Inc.	$	6,901	$	5,104	$	10,681	$	8,662
Shares used in computing diluted net income per share:
Basic weighted-average shares outstanding	17,786,122		17,986,517		17,760,256		17,964,300
Restricted stock units granted to employees	56,016		35,771		57,586		54,315
Diluted weighted-average shares outstanding ¹	17,842,138		18,022,288		17,817,842		18,018,615
Diluted net income per share	$	0.39	$	0.28	$	0.60	$	0.48

¹The Company excluded 1,423,049 and 1,417,473 potentially dilutive shares from the calculation of diluted net income per share for the three and six months ended December 31, 2016 and 2015, respectively, 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.