Net Earnings Per Share

6 Months Ended

Dec. 31, 2021

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,
	2021		2020		2021		2020
Basic:
Net income attributable to Malibu Boats, Inc.	$	29,891	$	21,225	$	56,835	$	42,318
Shares used in computing basic net income per share:
Weighted-average Class A Common Stock	20,663,227		20,493,938		20,641,925		20,464,902
Weighted-average participating restricted stock units convertible into Class A Common Stock	236,974		223,421		233,166		219,742
Basic weighted-average shares outstanding	20,900,201		20,717,359		20,875,091		20,684,644
Basic net income per share	$	1.43	$	1.03	$	2.72	$	2.05

Diluted:
Net income attributable to Malibu Boats, Inc.	$	29,891	$	21,225	$	56,835	$	42,318


Shares used in computing diluted net income per share:
Basic weighted-average shares outstanding	20,900,201		20,717,359		20,875,091		20,684,644
Restricted stock units granted to employees	105,143		153,918		112,896		159,058
Stock options granted to employees	72,991		42,361		74,890		43,834
Market performance awards granted to employees	70,536		59,264		70,536		59,264
Diluted weighted-average shares outstanding 1	21,148,871		20,972,902		21,133,413		20,946,800
Diluted net income per share	$	1.41	$	1.01	$	2.69	$	2.02

1 The Company excluded (i) 661,162 and 745,055 potentially dilutive shares from the calculation of diluted net income per share for the three months ended December 31, 2021 and 2020, respectively, and (ii) 661,162 and 733,805 potentially dilutive shares from the calculation of diluted net income per share for the six months ended December 31, 2021 and 2020, 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, therefore, are not included in the calculation. Accordingly, basic and diluted net earnings per share of Class B Common Stock have not been presented.