Net Earnings Per Share

Basic net income per share of Class A Common Stock is computed by dividing net income 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 income per share includes fully vested restricted stock units awarded to directors that are entitled to participate in distributions to common shareholders through receipt of additional units of equivalent value to the dividends paid to Class A Common Stock holders.

Diluted net income per share of Class A Common Stock is computed similarly to basic net income 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 restricted LLC Units and non-qualified stock option are considered common stock equivalents for this purpose. The number of additional shares of Class A Common Stock related to these common stock equivalents and stock options are calculated using the treasury stock method.

Basic and diluted net income per share of Class A Common Stock has been computed as follows (in thousands, except share and per share amounts)



	Three Months Ended
	September 30, 2017		September 30, 2016
Basic:
Net income attributable to Malibu Boats, Inc.	$	5,885	$	3,780
Shares used in computing basic net income per share:
Weighted-average Class A Common Stock	19,025,837		17,620,852
Weighted-average participating restricted stock units convertible into Class A Common Stock	152,919		113,538
Basic weighted-average shares outstanding	19,178,756		17,734,390
Basic net income per share	$	0.31	$	0.21

Diluted:
Net income attributable to Malibu Boats, Inc.	$	5,885	$	3,780
Shares used in computing diluted net income per share:
Basic weighted-average shares outstanding	19,178,756		17,734,390
Restricted stock units granted to employees	125,038		27,378
Diluted weighted-average shares outstanding ¹	19,303,794		17,761,768
Diluted net income per share	$	0.31	$	0.21

¹The Company excluded 1,367,211 and 1,462,150 potentially dilutive shares from the calculation of diluted net income per share for the three months ended September 30, 2017 and 2016, 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.