Net Earnings Per Share

12 Months Ended

Jun. 30, 2020

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.

Stock awards with a performance condition that are based on the attainment of a specified amount of earnings are only included in the computation of diluted earnings per share to the extent that the performance condition would be achieved based on the current amount of earnings, and only if the effect would be dilutive.

Stock awards with a market condition that are based on the performance of the Company's stock price in relation to a market index over a specified time period are only included in the computation of diluted earnings per share to the extent that the shares would be issued based on the current market price of the Company's stock in relation to the market index, and only if the effect would be dilutive.

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):


	Fiscal Year Ended June 30,
	2020		2019		2018
Basic:
Net income attributable to Malibu Boats, Inc.	$	61,562	$	66,066	$	27,613
Shares used in computing basic net income per share:
Weighted-average Class A Common Stock	20,455,895		20,645,973		20,012,627
Weighted-average participating restricted stock units convertible into Class A Common Stock	206,855		186,472		166,754
Basic weighted-average shares outstanding	20,662,750		20,832,445		20,179,381
Basic net income per share	$	2.98	$	3.17	$	1.37

Diluted:
Net income attributable to Malibu Boats, Inc.	$	61,562	$	66,066	$	27,613
Shares used in computing diluted net income per share:
Basic weighted-average shares outstanding	20,662,750		20,832,445		20,179,381
Restricted stock units granted to employees	131,314		119,476		101,563
Weighted-average stock options convertible into Class A Common Stock	15,721		14,618		266
Weighted-average market performance awards convertible into Class A Common Stock	42,576		—		—
Diluted weighted-average shares outstanding ¹	20,852,361		20,966,539		20,281,210
Diluted net income per share	$	2.95	$	3.15	$	1.36

¹The Company excluded 826,250, 930,125, and 1,205,249 potentially dilutive shares from the calculation of diluted net income per share for the fiscal year ended June 30, 2020, 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 income per share of Class B Common Stock has not been presented.