Net Earnings Per Share

6 Months Ended

Dec. 31, 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.

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):



	Three Months Ended December 31,				Six Months Ended December 31,
	2019		2018		2019		2018
Basic:
Net income attributable to Malibu Boats, Inc.	$	16,722	$	14,257	$	32,581	$	25,555
Shares used in computing basic net income per share:
Weighted-average Class A Common Stock	20,385,815		20,689,779		20,510,896		20,577,182
Weighted-average participating restricted stock units convertible into Class A Common Stock	205,426		185,464		199,785		180,913
Basic weighted-average shares outstanding	20,591,241		20,875,243		20,710,681		20,758,095
Basic net income per share	$	0.81	$	0.68	$	1.57	$	1.23

Diluted:
Net income attributable to Malibu Boats, Inc.	$	16,722	$	14,257	$	32,581	$	25,555
Shares used in computing diluted net income per share:
Basic weighted-average shares outstanding	20,591,241		20,875,243		20,710,681		20,758,095
Restricted stock units granted to employees	81,661		94,654		81,394		117,374
Stock options granted to employees	4,404		20,416		588		8,399
Market performance awards granted to employees	24,167		—		24,167		—
Diluted weighted-average shares outstanding ¹	20,701,473		20,990,313		20,816,830		20,883,868
Diluted net income per share	$	0.81	$	0.68	$	1.57	$	1.22

¹The Company excluded (i) 940,875 and 904,652 potentially dilutive shares from the calculation of diluted net income per share for the three months ended December 31, 2019 and 2018, respectively, and (ii) 1,042,509 and 924,652 potentially dilutive shares from the calculation of diluted net income per share for the six months ended December 31, 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.