Net Earnings Per Share

3 Months Ended

Sep. 30, 2019

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 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 September 30,
	2019		2018
Basic:
Net income attributable to Malibu Boats, Inc.	$	15,859	$	11,298
Shares used in computing basic net income per share:
Weighted-average Class A Common Stock	20,635,978		20,464,056
Weighted-average participating restricted stock units convertible into Class A Common Stock	194,143		176,362
Basic weighted-average shares outstanding	20,830,121		20,640,418
Basic net income per share	$	0.76	$	0.55

Diluted:
Net income attributable to Malibu Boats, Inc.	$	15,859	$	11,298
Shares used in computing diluted net income per share:
Basic weighted-average shares outstanding	20,830,121		20,640,418
Restricted stock units granted to employees	98,620		107,030
Stock options granted to employees			2,905
Diluted weighted-average shares outstanding ¹	20,928,741		20,750,353
Diluted net income per share	$	0.76	$	0.54

¹The Company excluded 1,102,975 and 940,652 potentially dilutive shares from the calculation of diluted net income per share for the three months ended September 30, 2019 and 2018, respectively, as these units 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.