Net Earnings Per Share

9 Months Ended

Mar. 31, 2017

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, 2017 and 2016 have been computed as follows (in thousands, except share and per share amounts):



	Three Months Ended				Nine Months Ended
	March 31, 2017		March 31, 2016		March 31, 2017		March 31, 2016
Basic:
Net income attributable to Malibu Boats, Inc.	$	8,013	$	5,776	$	18,694	$	14,438
Shares used in computing basic net income per share:
Weighted-average Class A Common Stock	17,727,956		17,868,896		17,665,672		17,876,726
Weighted-average participating restricted stock units convertible into Class A Common Stock	149,196		106,818		133,549		91,380
Basic weighted-average shares outstanding	17,877,152		17,975,714		17,799,221		17,968,106
Basic net income per share	$	0.45	$	0.32	$	1.05	$	0.80

Diluted:
Net income attributable to Malibu Boats, Inc.	$	8,013	$	5,776	$	18,694	$	14,438
Shares used in computing diluted net income per share:
Basic weighted-average shares outstanding	17,877,152		17,975,714		17,799,221		17,968,106
Restricted stock units granted to employees	85,134		27,144		88,045		54,233
Diluted weighted-average shares outstanding ¹	17,962,286		18,002,858		17,887,266		18,022,339
Diluted net income per share	$	0.45	$	0.32	$	1.05	$	0.80

¹The Company excluded 1,293,447 and 1,484,611 potentially dilutive shares from the calculation of diluted net income per share for the three ended March 31, 2017 and 2016 and 1,293,447 and 1,415,723 potentially dilutive shares from the calculation of dilute net income for the nine months ended March 31, 2017 and 2016, 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.