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 options 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				Nine Months Ended
	March 31, 2018		March 31, 2017		March 31, 2018		March 31, 2017
Basic:
Net income attributable to Malibu Boats, Inc.	$	15,672	$	8,013	$	15,174	$	18,694
Shares used in computing basic net income per share:
Weighted-average Class A Common Stock	20,371,072		17,727,956		19,886,970		17,665,672
Weighted-average participating restricted stock units convertible into Class A Common Stock	173,416		149,196		163,988		133,549
Basic weighted-average shares outstanding	20,544,488		17,877,152		20,050,958		17,799,221
Basic net income per share	$	0.76	$	0.45	$	0.76	$	1.05

Diluted:
Net income attributable to Malibu Boats, Inc.	$	15,672	$	8,013	$	15,174	$	18,694
Shares used in computing diluted net income per share:
Basic weighted-average shares outstanding	20,544,488		17,877,152		20,050,958		17,799,221
Restricted stock units granted to employees	112,522		85,134		84,106		88,045
Diluted weighted-average shares outstanding ¹	20,657,010		17,962,286		20,135,064		17,887,266
Diluted net income per share	$	0.76	$	0.45	$	0.76	$	1.05

¹The Company excluded (i) 1,238,727 and 1,293,447 potentially dilutive shares from the calculation of diluted net income per share for the three months ended March 31, 2018 and 2017, respectively, and (ii) 1,233,227 and 1,293,447 potentially dilutive shares from the calculation of diluted net income per share for the nine months ended March 31, 2018 and 2017, 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.