Net Earnings Per Share

6 Months Ended

Dec. 31, 2023

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 stockholders 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 Malibu Boats, Inc.'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 Malibu Boats, Inc.'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,
	2023		2022		2023		2022
Basic:
Net income attributable to Malibu Boats, Inc.	$	9,881	$	35,162	$	30,140	$	70,045
Shares used in computing basic net income per share:
Weighted-average Class A Common Stock	20,103,458		20,149,634		20,212,849		20,182,696
Weighted-average participating restricted stock units convertible into Class A Common Stock	272,292		254,949		268,270		249,520
Basic weighted-average shares outstanding	20,375,750		20,404,583		20,481,119		20,432,216
Basic net income per share	$	0.49	$	1.73	$	1.47	$	3.43

Diluted:
Net income attributable to Malibu Boats, Inc.	$	9,881	$	35,162	$	30,140	$	70,045


Shares used in computing diluted net income per share:
Basic weighted-average shares outstanding	20,375,750		20,404,583		20,481,119		20,432,216
Restricted stock units granted to employees	24,108		49,725		44,613		64,419
Stock options granted to employees	3,899		11,889		4,654		13,289
Market performance awards granted to employees	46,447		49,828		36,832		49,828
Diluted weighted-average shares outstanding 1	20,450,204		20,516,025		20,567,218		20,559,752
Diluted net income per share	$	0.49	$	1.72	$	1.47	$	3.41

1 The Company excluded (i) 597,673 and 761,150 potentially dilutive shares from the calculation of diluted net income per share for the three months ended December 31, 2023 and 2022, respectively, and (ii) 533,968 and 761,150 potentially dilutive shares from the calculation of diluted net income per share for the six months ended December 31, 2023 and 2022, respectively.

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 have not been presented.