MALIBU BOATS, INC., 10-Q filed on 5/3/2017
Quarterly Report
Document and Entity Information
9 Months Ended
Mar. 31, 2017
May 2, 2017
Class A Common Stock
May 2, 2017
Class B Common Stock [Member]
Document Information [Line Items]
 
 
 
Entity Registrant Name
MALIBU BOATS, INC. 
 
 
Entity Central Index Key
0001590976 
 
 
Document Type
10-Q 
 
 
Document Period End Date
Mar. 31, 2017 
 
 
Amendment Flag
false 
 
 
Document Fiscal Year Focus
2017 
 
 
Document Fiscal Period Focus
Q3 
 
 
Current Fiscal Year End Date
--06-30 
 
 
Entity Filer Category
Accelerated Filer 
 
 
Entity Common Stock, Shares Outstanding
 
17,930,617 
19 
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Mar. 31, 2017
Mar. 31, 2016
Income Statement [Abstract]
 
 
 
 
Net sales
$ 77,149 
$ 68,539 
$ 206,831 
$ 186,285 
Cost of sales
55,787 
50,133 
151,833 
137,290 
Gross profit
21,362 
18,406 
54,998 
48,995 
Operating expenses:
 
 
 
 
Selling and marketing
1,789 
1,574 
6,362 
5,998 
General and administrative
5,997 
4,462 
15,514 
13,281 
Amortization
550 
545 
1,649 
1,637 
Operating income
13,026 
11,825 
31,473 
28,079 
Other expense, net:
 
 
 
 
Other income
41 
40 
116 
64 
Interest expense
(416)
(1,249)
(883)
(2,927)
Other expense, net
(375)
(1,209)
(767)
(2,863)
Income before provision for income taxes
12,651 
10,616 
30,706 
25,216 
Provision for income taxes
3,805 
4,109 
9,897 
9,011 
Net income
8,846 
6,507 
20,809 
16,205 
Net income attributable to non-controlling interest
833 
731 
2,115 
1,767 
Net income attributable to Malibu Boats, Inc.
8,013 
5,776 
18,694 
14,438 
Comprehensive income:
 
 
 
 
Net income
8,846 
6,507 
20,809 
16,205 
Other comprehensive income, net of tax:
 
 
 
 
Change in cumulative translation adjustment
867 
686 
378 
37 
Other comprehensive income, net of tax
867 
686 
378 
37 
Comprehensive income, net of tax
9,713 
7,193 
21,187 
16,242 
Less: comprehensive income attributable to non-controlling interest, net of tax
923 
808 
2,153 
1,774 
Comprehensive income attributable to Malibu Boats, Inc., net of tax
$ 8,790 
$ 6,385 
$ 19,034 
$ 14,468 
Weighted average shares outstanding used in computing net income per share:
 
 
 
 
Shares used in computing basic net income per share: (in shares)
17,877,152 
17,975,714 
17,799,221 
17,968,106 
Weighted average shares outstanding used in computing net income per share, Diluted (in shares)
17,962,286 
18,002,858 
17,887,266 
18,022,339 
Net income available to Class A Common Stock per share:
 
 
 
 
Basic (in dollars per share)
$ 0.45 
$ 0.32 
$ 1.05 
$ 0.80 
Diluted (in dollars per share)
$ 0.45 
$ 0.32 
$ 1.05 
$ 0.80 
Condensed Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2017
Jun. 30, 2016
Current assets
 
 
Cash
$ 32,295 
$ 25,921 
Trade receivables, net
14,724 
14,690 
Inventories, net
27,365 
20,431 
Prepaid expenses and other current assets
2,311 
2,707 
Income tax receivable
0 
965 
Total current assets
76,695 
64,714 
Property and equipment, net
21,954 
17,813 
Goodwill
12,654 
12,470 
Other intangible assets, net
10,133 
11,703 
Deferred tax assets
113,480 
115,594 
Other assets
108 
32 
Total assets
235,024 
222,326 
Current liabilities
 
 
Current maturities of long-term debt
0 
8,000 
Accounts payable
18,979 
16,158 
Accrued expenses
21,414 
19,055 
Income taxes and tax distribution payable
1,803 
427 
Payable pursuant to tax receivable agreement, current portion
4,360 
4,189 
Total current liabilities
46,556 
47,829 
Deferred tax liabilities
609 
685 
Payable pursuant to tax receivable agreement, less current portion
90,612 
89,561 
Long-term debt, less current maturities
55,152 
63,086 
Other long-term liabilities
275 
1,136 
Total liabilities
193,204 
202,297 
Commitments and contingencies
   
   
Stockholders' Equity
 
 
Preferred Stock, par value $0.01 per share; 25,000,000 shares authorized; no shares issued and outstanding as of March 31, 2017 and June 30, 2016
0 
0 
Additional paid in capital
50,545 
45,947 
Accumulated other comprehensive loss
(2,093)
(2,471)
Accumulated deficit
(9,585)
(28,302)
Total stockholders' equity attributable to Malibu Boats, Inc.
39,046 
15,350 
Non-controlling interest
2,774 
4,679 
Total stockholders’ equity
41,820 
20,029 
Total liabilities and stockholders' equity
235,024 
222,326 
Class A Common Stock
 
 
Stockholders' Equity
 
 
Common stock
179 
176 
Class B Common Stock [Member]
 
 
Stockholders' Equity
 
 
Common stock
$ 0 
$ 0 
Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
Mar. 31, 2017
Jun. 30, 2015
Preferred stock, par value (per share)
$ 0.01 
$ 0.01 
Preferred stock, shares authorized
25,000,000 
25,000,000 
Preferred stock, shares issued
0 
0 
Preferred stock, shares outstanding
0 
0 
Class A Common Stock
 
 
Common stock, par value (per share)
$ 0.01 
$ 0.01 
Common stock, shares authorized
100,000,000 
100,000,000 
Common stock, shares issued
17,930,617 
17,690,874 
Common stock, shares, outstanding
17,930,617 
17,690,874 
Class B Common Stock [Member]
 
 
Common stock, par value (per share)
$ 0.01 
$ 0.01 
Common stock, shares authorized
25,000,000 
25,000,000 
Common stock, shares issued
19 
23 
Common stock, shares, outstanding
19 
23 
Condensed Consolidated Statements of Stockholders' Equity (Deficit) (USD $)
In Thousands, except Share data, unless otherwise specified
Total
USD ($)
Additional Paid-in Capital [Member]
USD ($)
Accumulated Other Comprehensive (Loss) Income [Member]
USD ($)
Accumulated Deficit [Member]
USD ($)
Non-controlling LLC Unit holders ownership in Malibu Boats Holdings, LLC
USD ($)
Class A Common Stock
Class A Common Stock
Common Stock [Member]
USD ($)
Class B Common Stock [Member]
Class B Common Stock [Member]
Common Stock [Member]
USD ($)
Balance at June 30, 2016 at Jun. 30, 2016
$ 20,029 
$ 45,947 
$ (2,471)
$ (28,302)
$ 4,679 
 
$ 176 
 
$ 0 
Balance at June 30, 2016 (in shares) at Jun. 30, 2016
 
 
 
 
 
 
17,690,000 
 
23 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
Net income
20,809 
 
 
18,694 
2,115 
 
 
 
 
Stock based compensation, net of withiholding taxes on vested restricted stock units (in shares)
 
 
 
 
 
 
89,000 
 
 
Stock based compensation, net of withholding taxes on vested equity awards
904 
903 
 
 
 
 
1 
 
 
Issuances of equity for services (in shares)
 
 
 
 
 
 
7,000 
 
 
Issuances of equity for services
688 
688 
 
 
 
 
 
 
 
Increase in payable pursuant to the tax receivable agreement
(1,222)
(1,222)
 
 
 
 
 
 
 
Increase in deferred tax asset from step-up in tax basis
1,440 
1,440 
 
 
 
 
 
 
 
Exchange of LLC Units for Class A Common Stock (in shares)
 
 
 
 
 
 
145,000 
 
 
Exchange of LLC Units for Class A Common Stock
 
 
 
 
 
 
2 
 
 
Exchange of LLC Units for Class A Common Stock
2 
2,789 
 
 
(2,789)
 
 
 
 
Cancellation of Class B Common Stock (in shares)
 
 
 
 
 
 
 
 
(4)
Cancellation of Class B Common Stock
0 
 
 
 
 
 
 
 
 
Distributions to LLC Unit holders
(1,208)
0 
 
(23)
(1,231)
 
 
 
 
Change in cumulative translation adjustment
378 
 
378 
 
 
 
 
 
 
Balance at March 31, 2017 at Mar. 31, 2017
$ 41,820 
$ 50,545 
$ (2,093)
$ (9,585)
$ 2,774 
 
$ 179 
 
$ 0 
Balance at December 31, 2016 (in shares) at Mar. 31, 2017
 
 
 
 
 
17,930,617 
17,931,000 
19 
19 
Condensed Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Operating activities:
 
 
Net income
$ 20,809 
$ 16,205 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Non-cash compensation expense
1,070 
1,464 
Depreciation
3,044 
2,449 
Amortization of intangible assets
1,649 
1,637 
Gain on sale-leaseback transaction
(8)
(9)
Amortization of deferred financing costs
183 
184 
Change in fair value of interest rate swap
(941)
685 
Deferred income taxes
3,495 
3,664 
Non-cash litigation payable
(1,330)
0 
Loss (gain) on sale of equipment
4 
(28)
Change in operating assets and liabilities:
 
 
Trade receivables
(28)
(7,017)
Inventories
(6,879)
(3,602)
Prepaid expenses and other assets
884 
(1,204)
Accounts payable
2,625 
9,514 
Income taxes receivable and payable
2,129 
(690)
Accrued expenses and other liabilities
3,942 
(958)
Net cash provided by operating activities
30,648 
22,294 
Investing activities:
 
 
Purchases of property and equipment
(6,983)
(5,430)
Proceeds from sale or disposal of property, plant and equipment
16 
78 
Net cash used in investing activities
(6,967)
(5,352)
Financing activities:
 
 
Principal payments on long-term borrowings
(16,117)
(4,500)
Cash paid for withholding taxes on vested restricted stock
(167)
0 
Distributions to LLC Unit holders
(1,029)
(911)
Repurchase and retirement of common stock
0 
(807)
Net cash used in financing activities
(17,313)
(6,218)
Effect of exchange rate changes on cash
6 
(43)
Changes in cash
6,374 
10,681 
Cash—Beginning of period
25,921 
8,387 
Cash—End of period
32,295 
19,068 
Supplemental cash flow information:
 
 
Cash paid for interest
1,704 
2,436 
Cash paid for income taxes
3,666 
6,199 
Non-cash investing and financing activities:
 
 
Establishment of deferred tax assets from step-up in tax basis
1,440 
142 
Establishment of amounts payable under tax receivable agreements
1,222 
118 
Exchange of LLC Units by LLC Unit holders for Class A common stock
2,789 
39 
Tax distributions payable to non-controlling LLC Unit holders
520 
434 
Equity issued to directors for services
688 
688 
Capital expenditures in accounts payable
$ 202 
$ 35 
Organization, Basis of Presentation, and Summary of Significant Accounting Policies
Organization, Basis of Presentation, and Summary of Significant Accounting Policies
Organization, Basis of Presentation, and Summary of Significant Accounting Policies
Organization
Malibu Boats, Inc. (together with its subsidiaries, the “Company” or “Malibu”), a Delaware corporation formed on November 1, 2013, is the sole managing member of Malibu Boats Holdings, LLC (the “LLC”). The Company operates and controls all of the LLC's business and affairs and, therefore, pursuant to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, Consolidation, consolidates the financial results of the LLC and its subsidiaries, and records a non-controlling interest for the economic interest in the Company held by the non-controlling holders of units in the LLC (“LLC Units”). See Note 2. Malibu Boats Holdings, LLC was formed in 2006 with the acquisition by an investor group, including affiliates of Black Canyon Capital LLC, Horizon Holdings, LLC and then-current management. The LLC is engaged in the design, engineering, manufacturing and marketing of innovative, high-quality, performance sports boats that are sold through a world-wide network of independent dealers. On October 23, 2014, the Company acquired all the outstanding shares of Malibu Boats Pty. Ltd. (the “Licensee”), Malibu's Australian licensee manufacturer with exclusive distributions rights in Australia and New Zealand markets. As a result of the acquisition, the Company also consolidates the financial results of the Licensee. The Company reports its results of operations under two reportable segments called U.S. and Australia based on their respective manufacturing footprints. Each segment participates in the manufacturing, distribution, marketing and sale of performance sport boats. The U.S. operating segment primarily serves markets in North America, South America, Europe, and Asia while the Australia operating segment principally serves the Australian and New Zealand markets.
Basis of Presentation
The accompanying unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim condensed financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and disclosures of results of operations, financial position and changes in cash flow in conformity with GAAP for complete financial statements. Such statements should be read in conjunction with the audited consolidated financial statements and notes thereto of Malibu Boats, Inc. and subsidiaries for the year ended June 30, 2016 included in the Company's Annual Report on Form 10-K. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements reflect all adjustments considered necessary to present fairly the Company’s financial position at March 31, 2017 and the results of its operations for the three and nine month periods ended March 31, 2017 and March 31, 2016 and its cash flows for the nine month periods ended March 31, 2017 and March 31, 2016. Operating results for the nine months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the full year ending June 30, 2017. Certain reclassifications have been made to the prior period presentation to conform to the current period presentation. Units and shares are presented as whole numbers while all dollar amounts are presented in thousands, unless otherwise noted.
Principles of Consolidation
The accompanying unaudited condensed consolidated financial statements include the operations and accounts of the Company and all subsidiaries thereof. All intercompany balances and transactions have been eliminated upon consolidation.
Immaterial Correction of Errors in Prior Period
For fiscal year 2016, the Company identified an immaterial error related to the understatement of deferred tax assets and paid in capital attributable to a book to tax difference in its investment in the LLC. The correction of this error resulted in an increase in deferred tax assets of $1,796 with a corresponding increase for the same amount in additional paid in capital within stockholder's equity on the audited consolidated balance sheet as of June 30, 2016 and within the beginning balance of the statement of stockholders' equity for fiscal year 2016.
Recent Accounting Pronouncements
In May 2014, the FASB and International Accounting Standards Board jointly issued a final standard on revenue recognition which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This standard will supersede most current revenue recognition guidance. Under the new standard, entities are required to identify the contract with a customer; identify the separate performance obligations in the contract; determine the transaction price; allocate the transaction price to the separate performance obligations in the contract; and recognize the appropriate amount of revenue when (or as) the entity satisfies each performance obligation. Accounting Standards Update (“ASU”) 2014-09 will now become effective for fiscal years beginning after December 15, 2017. In August 2015, FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, to extend the mandatory effective date by one year. Entities have the option of using either the retrospective or cumulative effect transition method. The Company is currently evaluating the approach it will use to apply the new standard and the impact that the adoption of the new standard will have on the Company’s consolidated financial statements.
In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory. This ASU changes the measurement principle for inventories valued under the first-in, first-out or weighted-average methods from the lower of cost or market to the lower of cost and net realizable value. Net realizable value is defined by the FASB as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This ASU does not change the measurement principles for inventories valued under the last-in, first-out method. This amendment is effective for fiscal years beginning after December, 15, 2016, including interim periods within those fiscal years and should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently evaluating the impact of adopting this ASU, but does not expect it will have a material impact.
In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This guidance establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently assessing the potential impact of this ASU on its consolidated financial statements and footnote disclosures.
In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years with early adoption permitted. This guidance provides specific classification of how certain cash receipts and cash payments are presented in the statement of cash flows. The ASU should be applied using a retrospective transition method. If it is impracticable to apply the amendments retrospectively for some of the cash flow issues, the amendments for those issues should then be applied prospectively at the earliest date practicable. The Company is currently assessing the potential impact of this ASU on its presentation of the consolidated statement of cash flows.
In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The purpose of this ASU is to simplify the subsequent measurement of goodwill by removing the second step of the two-step impairment test. The amendment should be applied on a prospective basis. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within that year. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the potential impact of this ASU on its presentation of the consolidated financial statements and related disclosures.
There are no other new accounting pronouncements that are expected to have a significant impact on the Company's consolidated financial statements and related disclosures.
Non-controlling Interest
Non-controlling Interest
Non-controlling Interest
The non-controlling interest on the unaudited condensed consolidated statement of operations and comprehensive income represents the portion of earnings or loss attributable to the economic interest in the Company's subsidiary, Malibu Boats Holdings, LLC, held by the non-controlling LLC Unit holders. Non-controlling interest on the unaudited condensed consolidated balance sheets represents the portion of net assets of the Company attributable to the non-controlling LLC Unit holders, based on the portion of the LLC Units owned by such Unit holders. The ownership of Malibu Boats Holdings, LLC is summarized as follows:
 
As of March 31, 2017
 
As of June 30, 2016
 
Units
 
Ownership %
 
Units
 
Ownership %
Non-controlling LLC Unit holders ownership in Malibu Boats Holdings, LLC
1,260,627

 
6.6
%
 
1,404,923

 
7.4
%
Malibu Boats, Inc. ownership in Malibu Boats Holdings, LLC
17,930,617

 
93.4
%
 
17,690,874

 
92.6
%
 
19,191,244

 
100.0
%
 
19,095,797

 
100.0
%

The changes in the balance of the Company's non-controlling interest are as follows:
Balance of non-controlling interest as of June 30, 2016
$
4,679

Allocation of income to non-controlling LLC Unit holders for period
2,115

Distributions paid and payable to non-controlling LLC Unit holders for period
(1,231
)
Reallocation of non-controlling ownership interests in exchange for Class A Common Stock
(2,789
)
Balance of non-controlling interest as of March 31, 2017
$
2,774


Issuance of Additional LLC Units
Under the first amended and restated limited liability agreement of the LLC, as amended (the "LLC Agreement"), the Company is required to cause the LLC to issue additional LLC Units to the Company when the Company issues additional shares of Class A Common Stock. Other than in connection with the issuance of Class A Common Stock in connection with an equity incentive program, the Company must contribute to the LLC net proceeds and property, if any, received by the Company with respect to the issuance of such additional shares of Class A Common Stock. The Company shall cause the LLC to issue a number of LLC Units equal to the number of shares of Class A Common Stock issued such that, at all times, the number of LLC Units held by the Company equals the number of outstanding shares of Class A Common Stock. During the nine months ended March 31, 2017, the Company caused the LLC to issue a total of 245,616 LLC Units to the Company in connection with (i) the Company's issuance of Class A Common Stock to a non-employee director for his services, (ii) the issuance of Class A Common Stock for the vesting of awards granted under the Malibu Boats, Inc. Long-Term Incentive Plan (the "Incentive Plan")
Inventories
Inventories
Inventories
Inventories, net consisted of the following:
 
As of March 31, 2017
 
As of June 30, 2016
Raw materials
$
18,292

 
$
14,858

Work in progress
3,028

 
1,250

Finished goods
6,045

 
4,323

Total inventories
$
27,365

 
$
20,431

Property and Equipment
Property and Equipment
Property and Equipment
Property and equipment, net consisted of the following:
 
 
As of March 31, 2017
 
As of June 30, 2016
Land
 
$
367

 
$
254

Building and leasehold improvements
 
10,216

 
7,168

Machinery and equipment
 
21,384

 
20,035

Furniture and fixtures
 
2,873

 
2,765

Construction in process
 
2,884

 
356

 
 
37,724

 
30,578

Less: Accumulated depreciation
 
(15,770
)
 
(12,765
)
Property and equipment, net
 
$
21,954

 
$
17,813


Depreciation expense was $1,050 and $833 for the three months ended March 31, 2017 and 2016 and $3,044 and $2,449 for the nine months ended March 31, 2017 and 2016, respectively, substantially all of which was recorded in cost of sales.
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
The changes in the carrying amount of goodwill for the nine months ended March 31, 2017 were as follows:
Goodwill as of June 30, 2016
$
12,470

Effect of foreign currency changes on goodwill
184

Goodwill as of March 31, 2017
$
12,654


The components of other intangible assets were as follows:
 
As of March 31, 2017
 
As of June 30, 2016
 
Estimated Useful Life (in years)
 
Weighted Average Remaining Useful Life (in years)
Reacquired franchise rights
$
1,376

 
$
1,339

 
5
 
2.6
Dealer relationships
29,837

 
29,773

 
8-15
 
12.6
Patent
1,386

 
1,386

 
12
 
1.3
Trade name
24,667

 
24,667

 
15
 
4.4
Non-compete agreement
54

 
52

 
10
 
7.6
Backlog
96

 
93

 
0.3
 
0.0
Total
57,416

 
57,310

 
 
 
 
Less: Accumulated amortization
(47,283
)
 
(45,607
)
 
 
 
 
Total other intangible assets, net
$
10,133


$
11,703

 
 
 
 

Amortization expense recognized on all amortizable intangibles was $550 and $545 for the three months ended March 31, 2017 and 2016, respectively and $1,649 and $1,637 for the nine months ended March 31, 2017 and 2016, respectively.
The estimated future amortization of definite-lived intangible assets is as follows:
Fiscal years ending June 30:
 
 
Remainder of 2017
$
551

 
2018
2,204

 
2019
2,097

 
2020
1,899

 
2021
1,813

 
Thereafter
1,569

 
 
$
10,133

Product Warranties
Product Warranties
Product Warranties
Effective for model year 2016, the Company began providing a limited warranty for a period up to five years for both Malibu and Axis brand boats. For model years prior to 2016, the Company provided a limited warranty for a period of up to three years and two years for its Malibu and Axis brands, respectively. The Company’s standard warranties require the Company or its dealers to repair or replace defective products during such warranty period at no cost to the consumer. The Company estimates the costs that may be incurred under its basic limited warranty and records a liability for such costs at the time the product revenue is recognized. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty claims and cost per claim. The Company assesses the adequacy of its recorded warranty liabilities by brand on a quarterly basis and adjusts the amounts as necessary. The Company utilizes historical claims trends and analytical tools to assist in determining the appropriate warranty liability.
Changes in the Company’s product warranty liability, which is included in accrued expenses on the unaudited condensed consolidated balance sheets, were as follows: 
 
 
Three Months Ended
 
Nine Months Ended
 
 
March 31, 2017
 
March 31, 2016
 
March 31, 2017
 
March 31, 2016
Beginning balance
 
$
9,204

 
$
7,176

 
$
8,083

 
$
6,610

Add: Warranty expense
 
2,222

 
1,447

 
5,863

 
3,990

Less: Warranty claims paid
 
(1,244
)
 
(880
)
 
(3,764
)
 
(2,857
)
Ending balance
 
$
10,182

 
$
7,743

 
$
10,182

 
$
7,743

Financing
Financing
Financing
Outstanding debt consisted of the following:
 
As of March 31, 2017
 
As of June 30, 2016
Term loan
$
55,883

 
$
72,000

     Less unamortized debt issuance costs
(731
)
 
(914
)
Total debt
55,152

 
71,086

     Less current maturities
—

 
(8,000
)
Long-term debt less current maturities
$
55,152

 
$
63,086


Long-Term Debt
Amended and Restated Line of Credit and Term Loan. On April 2, 2015, Malibu Boats, LLC (the "Borrower"), a wholly owned subsidiary of the LLC, entered into a credit agreement with a syndicate of banks led by SunTrust Bank that included a revolving credit facility and term loan (the “Amended and Restated Credit Agreement”). The obligations of Malibu Boats LLC under the Amended and Restated Credit Agreement are currently guaranteed by its parent, the LLC, and its subsidiaries, Malibu Boats Domestic International Sales Corp. and Malibu Australian Acquisition Corp. Malibu Boats, Inc. is not a party to the Amended and Restated Credit Agreement. The lending arrangements are required to be guaranteed by the LLC and the present and future domestic subsidiaries of Malibu Boats, LLC and are secured by substantially all of the assets of the LLC, Malibu Boats, LLC and Malibu Boats Domestic International Sales Corp., and those of any future domestic subsidiary pursuant to a security agreement. The revolving credit facility and term loan mature on April 2, 2020.
The Amended and Restated Credit Agreement is comprised of a $25,000 revolving commitment, none of which was outstanding as of March 31, 2017, and a $80,000 term loan, which was subject to quarterly installments of $1,500 per quarter until March 31, 2016. The quarterly installments are now $2,000 per quarter until March 31, 2019 and $2,500 per quarter thereafter. Borrowings under the Amended and Restated Credit Agreement bear interest at a rate equal to either, at the Borrower's option, (i) the highest of the prime rate, the Federal Funds Rate plus 0.5%, or one-month LIBOR plus 1.00% (the “Base Rate”) or (ii) LIBOR, in each case plus an applicable margin ranging from 1.00% to 1.75% with respect to Base Rate borrowings and 2.00% to 2.75% with respect to LIBOR borrowings. The applicable margin will be based upon the consolidated leverage ratio of the LLC and its subsidiaries calculated on a consolidated basis. The Borrower will also be required to pay a commitment fee for the unused portion of the revolving credit facility, which will range from 0.25% to 0.40% per annum, depending on the LLC’s and its subsidiaries’ consolidated leverage ratio. The weighted average interest rate on the term loan was 3.06% for the nine month period ended March 31, 2017.
The Company also has a swingline line of credit from SunTrust Bank in the principal amount of up to $5,000 due on or before April 2, 2020. Any amounts drawn under the swingline line of credit reduce the capacity under the revolving credit facility. As of March 31, 2017, the Company had no outstanding balance under the swingline facility. Under the Amended and Restated Credit Agreement, the Company also has the ability to issue letters of credit up to $5,000. This letter of credit availability may be reduced by borrowings under the revolving line of credit. The Company’s access to these letters of credit expires April 2, 2020 with the expiration of access to the revolving commitment. As of March 31, 2017, the Company had issued letters of credit for $100.
The Amended and Restated Credit Agreement permits prepayment without any penalties. It also requires prepayments from the net cash proceeds received by the Borrower or any guarantors from certain asset sales and recovery events, subject to certain reinvestment rights, and from excess cash flow, subject to the terms and conditions of the Amended and Restated Credit Agreement. It contains certain customary representations and warranties, and notice requirements for the occurrence of specific events such as the occurrence of any event of default, or pending or threatened litigation. The Amended and Restated Credit Agreement requires compliance with certain financial covenants that the Company believes are usual for facilities and transactions of this type, including a minimum ratio of EBITDA to fixed charges and a maximum ratio of total debt to EBITDA. The Amended and Restated Credit Agreement also contains certain restrictive covenants, which, among other things, place limits on the LLC's activities and those of its subsidiaries, the incurrence of additional indebtedness and additional liens on property and limit the future payment of dividends or distributions. For example, the Amended and Restated Credit Agreement generally prohibits the LLC, Malibu Boats, LLC, and Malibu Domestic International Sales Corp. from paying dividends or making distributions, including to Malibu Boats, Inc. The Amended and Restated Credit Agreement permits, however, distributions based on a member’s allocated taxable income, distributions to fund payments that are required under the tax receivable agreement, payments pursuant to stock option and other benefit plans up to $2,000 in any fiscal year, dividends and distributions within the loan parties and dividends payable solely in interests of classes of securities. In addition, the LLC may make dividends and distributions of up to $15,000 in connection with the Company's stock repurchase program and up to $6,000 in any fiscal year for any reason, in each case, subject to compliance with other financial covenants. The credit agreement specifies permitted liens, permitted investments and permitted debt. Affirmative covenants governing the timing of monthly, quarterly and annual financial reporting are also included in the credit agreement.
In connection with the Amended and Restated Credit Agreement, the Company capitalized $1,224 in deferred financing costs. These costs are being amortized over the term of the Amended and Restated Credit Agreement into interest expense using the effective interest method and presented as a direct offset to the total debt outstanding as of March 31, 2017.
On August 4, 2016, in accordance with the Amended and Restated Credit Agreement, the Company exercised its option to prepay $15,000 of its outstanding term loan and elected to apply this prepayment to principal installments through June 30, 2018. On October 28, 2016, the Company paid $1,117 of long term debt due to the consolidated excess cash flow prepayment requirement under the terms of its Amended and Restated Credit Agreement.
Covenant Compliance
As of March 31, 2017, the Company is in full compliance with the terms of the Amended and Restated Credit Agreement, including all related covenants.
Interest Rate Swap
On July 1, 2015, the Company entered into a five year floating to fixed interest rate swap with an effective start date of July 1, 2015. The swap is based on a one-month LIBOR rate versus a 1.52% fixed rate on a notional value of $39,250, which under terms of the Amended and Restated Credit Agreement is equal to 50% of the outstanding balance of the term loan at the time of the swap arrangement. Under ASC Topic 815, Derivatives and Hedging, all derivative instruments are recorded on the consolidated balance sheets at fair value as either short term or long term assets or liabilities based on their anticipated settlement date. Refer to Fair Value Measurements in Note 9. The Company has elected not to designate its interest rate swap as a hedge; therefore, changes in the fair value of the derivative instrument are being recognized in earnings in the Company's unaudited condensed consolidated statements of operations and comprehensive income. During the three months ended March 31, 2017 and 2016, the Company recorded a gain of $116 and a loss of $510, respectively, and during the nine months ended March 31, 2017 and 2016, the Company recorded a gain of $941 and a loss of $685, respectively, for the change in fair value of the interest rate swap, which is included in interest expense in the unaudited condensed consolidated statements of operations and comprehensive income. As of March 31, 2017 and June 30, 2016 the fair value of the swap asset and swap liability included in other long-term assets and other long-term liabilities on our unaudited condensed consolidated balance sheets was $78 and $863, respectively.
Tax Receivable Agreement Liability
Tax Receivable Agreement Liability
Tax Receivable Agreement Liability
The Company has a Tax Receivable Agreement with the pre-IPO owners of the LLC that provides for the payment by the Company to the pre-IPO owners (or their permitted assignees) of 85% of the amount of the benefits, if any, that the Company is deemed to realize as a result of (i) increases in tax basis and (ii) certain other tax benefits related to the Company entering into the Tax Receivable Agreement, including those attributable to payments under the Tax Receivable Agreement. These contractual payment obligations are obligations of the Company and not of the LLC. The Company's Tax Receivable Agreement liability was determined on an undiscounted basis in accordance with ASC 450, Contingencies, since the contractual payment obligations were deemed to be probable and reasonably estimable.
For purposes of the Tax Receivable Agreement, the benefit deemed realized by the Company will be computed by comparing the actual income tax liability of the Company (calculated with certain assumptions) to the amount of such taxes that the Company would have been required to pay had there been no increase to the tax basis of the assets of the LLC as a result of the purchases or exchanges, and had the Company not entered into the Tax Receivable Agreement.
The following table reflects the changes to the Company's Tax Receivable Agreement liability:
 
March 31, 2017
 
June 30, 2016
Payable pursuant to tax receivable agreement
$
93,750

 
$
96,470

Additions to tax receivable agreement:
 
 
 
Exchange of LLC Units for Class A Common Stock
1,222

 
111

Payments under tax receivable agreement
—

 
(2,831
)
 
94,972

 
93,750

Less current portion under tax receivable agreement
(4,360
)
 
(4,189
)
Payable pursuant to tax receivable agreement, less current portion
$
90,612

 
$
89,561


The Tax Receivable Agreement further provides that, upon certain mergers, asset sales or other forms of business combinations or other changes of control, the Company (or its successor) would owe to the pre-IPO owners of the LLC a lump-sum payment equal to the present value of all forecasted future payments that would have otherwise been made under the Tax Receivable Agreement that would be based on certain assumptions, including a deemed exchange of LLC Units and that the Company would have sufficient taxable income to fully utilize the deductions arising from the increased tax basis and other tax benefits related to entering into the Tax Receivable Agreement. The Company also is entitled to terminate the Tax Receivable Agreement, which, if terminated, would obligate the Company to make early termination payments to the pre-IPO owners of the LLC. In addition, a pre-IPO owner may elect to unilaterally terminate the Tax Receivable Agreement with respect to such pre-IPO owner, which would obligate the Company to pay to such existing owner certain payments for tax benefits received through the taxable year of the election.
As of March 31, 2017 and June 30, 2016, the Company had recorded deferred tax assets of $112,500 and $111,060, respectively, associated with basis differences in assets upon acquiring an interest in Malibu Boats Holdings, LLC and pursuant to making an election under Section 754 of the Internal Revenue Code of 1986 (the "Internal Revenue Code"), as amended. The aggregate Tax Receivable Agreement liability represents 85% of the tax benefits that the Company expects to receive in connection with the Section 754 election. In accordance with the Tax Receivable Agreement, the next annual payment is anticipated approximately 75 days after filing the federal tax return which occurred on March 15, 2017.
Fair Value Measurements
Fair Value Measurements
Fair Value Measurements
In determining the fair value of certain assets and liabilities, the Company employs a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. As defined in ASC Topic 820, Fair Value Measurements and Disclosures, fair value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). Financial assets and financial liabilities recorded on the consolidated balance sheets at fair value are categorized based on the reliability of inputs to the valuation techniques as follows:
•
Level 1—Financial assets and financial liabilities whose values are based on unadjusted quoted prices in active markets for identical assets.
•
Level 2—Financial assets and financial liabilities whose values are based on quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in non-active markets; or valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability.
•
Level 3—Financial assets and financial liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect the Company’s estimates of the assumptions that market participants would use in valuing the financial assets and financial liabilities.
The hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.
Assets and liabilities that had recurring fair value measurements were as follows:
 
Fair Value Measurements at Reporting Date Using
 
Total
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
As of March 31, 2017:
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
Interest rate swap not designated as cash flow hedge
$
78

 
$
—

 
$
78

 
$
—

Total assets at fair value
$
78

 
$
—

 
$
78

 
$
—

 
 
 
 
 
 
 
 
As of June 30, 2016:
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
Interest rate swap not designated as cash flow hedge
$
863

 
$
—

 
$
863

 
$
—

Total liabilities at fair value
$
863

 
$
—

 
$
863

 
$
—


Fair value measurements for the Company’s interest rate swap are classified under Level 2 because such measurements are based on significant other observable inputs. There were no transfers of assets or liabilities between Level 1 and Level 2 as of March 31, 2017 or June 30, 2016.
The Company’s nonfinancial assets and liabilities that have nonrecurring fair value measurements include property, plant and equipment, goodwill and intangibles.
In assessing the need for goodwill impairment, management relies on a number of factors, including operating results, business plans, economic projections, anticipated future cash flows, transactions and marketplace data. Accordingly, these fair value measurements fall in Level 3 of the fair value hierarchy. The Company generally uses projected cash flows, discounted as necessary, to estimate the fair values of property, plant and equipment and intangibles using key inputs such as management’s projections of cash flows on a held-and-used basis (if applicable), management’s projections of cash flows upon disposition and discount rates. Accordingly, these fair value measurements fall in Level 3 of the fair value hierarchy. These assets and certain liabilities are measured at fair value on a nonrecurring basis as part of the Company’s impairment assessments and as circumstances require.
Income Taxes
Income Tax
Income Taxes
Malibu Boats, Inc. is taxed as a C corporation for U.S. income tax purposes and is therefore subject to both federal and state taxation at a corporate level. The LLC continues to operate in the United States as a partnership for U.S. federal income tax purposes.
Income taxes are computed in accordance with ASC Topic 740, Income Taxes, and reflect the net tax effects of temporary differences between the financial reporting carrying amounts of assets and liabilities and the corresponding income tax amounts. The Company has deferred tax assets and liabilities and maintains valuation allowances where it is more likely than not that all or a portion of deferred tax assets will not be realized. To the extent the Company determines that it will not realize the benefit of some or all of its deferred tax assets, such deferred tax assets will be adjusted through the Company’s provision for income taxes in the period in which this determination is made. As of March 31, 2017 and June 30, 2016, the Company maintained a valuation allowance of $9,819 and $9,700, respectively, against deferred tax assets related to state net operating losses and future amortization deductions (with respect to the Section 754 election) that are reported in the Tennessee corporate tax return without offsetting income, which is taxable at the LLC. The increase in the valuation allowance is due to the exchanges of LLC Units into Class A common stock by certain LLC Unit holders during the nine months ended March 31, 2017.
The Company’s consolidated interim effective tax rate is based upon expected annual income from operations, statutory tax rates and tax laws in the various jurisdictions in which the Company operates. Significant or unusual items, including adjustments to accruals for tax uncertainties, are recognized in the quarter in which the related event occurs. For the three months ended March 31, 2017 and 2016, the Company's effective tax rate was 30.1% and 38.7%, respectively. For the nine months ended March 31, 2017 and 2016, the Company's effective tax rate was 32.2% and 35.7%, respectively. The principal differences in the Company's effective tax rate with comparable historical periods presented and the statutory federal income tax rate of 35% relate to the impact of the non-controlling interests in the LLC, which is a pass-through entity for U.S. federal tax purposes, and state taxes. The Company's effective tax rate for the three and nine months ended March 31, 2017 and 2016 also reflects the impact of the Company's share of the LLC's permanent items such as non-deductible stock compensation expense attributable to profits interests. Additionally, the Company's effective tax rate for the three and nine months ended March 31, 2017 and 2016 includes the benefit of deductions under Section 199 of the Internal Revenue Code.
Stock-Based Compensation
Stock-Based Compensation
Stock-Based Compensation
On January 6, 2014, the Company’s Board of Directors adopted the Incentive Plan. The Incentive Plan, which became effective on January 1, 2014, reserves for issuance up to 1,700,000 shares of Malibu Boats, Inc. Class A Common Stock for the Company’s employees, consultants, members of its board of directors and other independent contractors at the discretion of the compensation committee. Incentive stock awards authorized under the Incentive Plan include unrestricted shares of Class A Common Stock, stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent awards and performance awards. As of March 31, 2017, 1,224,384 shares remain available for future issuance under the Incentive Plan.
On November 6, 2015, the Company granted 130,564 restricted stock units and restricted stock awards to certain key employees. The grant date fair value of these awards was $1,994 based on a stock price of $15.27 per share on the date of grant. Under the terms of the agreements, approximately 12% of the awards vested immediately on the grant date, approximately 38% vest in substantially equal annual installments over a three or four year period, and the remaining 50% of the awards vest in tranches based on the achievement of annual or cumulative performance targets. Compensation costs associated with performance based awards are recognized over the requisite service period based on probability of achievement in accordance with ASC Topic 718, Compensation—Stock Compensation. On September 14, 2016, 18,863 restricted stock units and restricted stock awards vested based on a stock price of $14.10 for the achievement of the Company's annual performance target.
On November 4, 2016, the Company granted 130,500 restricted stock units and restricted stock awards to certain key employees. The grant date fair value of these awards was $2,039 based on a stock price of $15.62 per share on the date of grant. Under the terms of the agreements, approximately 63% of the awards vest in substantially equal annual installments over a four year period, and the remaining 37% of the awards vest in tranches based on the achievement of annual performance targets. Compensation costs associated with performance based awards are recognized over the requisite service period based on probability of achievement in accordance with ASC Topic 718, Compensation—Stock Compensation. Readers should refer to Note 14 to the fiscal year 2016 audited consolidated financial statements contained in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2016, for additional information related to the Company's other awards and the Incentive Plan.
The following is a summary of the changes in non-vested restricted stock units and restricted stock awards for the nine months ended March 31, 2017:
 
Number of Restricted Stock Units and Restricted Stock Awards Outstanding
 
Weighted Average Grant Date Fair Value
Total Non-vested Restricted Stock Units as of June 30, 2016
140,908

 
$
16.17

Granted
168,227

 
15.55

Vested
(70,368
)
 
(15.30
)
Forfeited
(975
)
 
(20.18
)
Total Non-vested Restricted Stock Units as of March 31, 2017
237,792

 
$
15.98


Stock compensation expense attributable to the Company's share-based equity awards was $325 and $459 for the three months ended March 31, 2017 and 2016, respectively, and $1,070 and $1,464 for the nine months ended March 31, 2017 and 2016, respectively. Stock compensation expense attributed to share-based equity awards issued under the Incentive Plan and under the previously existing LLC Agreement is recognized on a straight-line basis over the terms of the respective awards and is included in general and administrative expense in the Company's unaudited condensed consolidated statement of operations and comprehensive income. As of March 31, 2017 and June 30, 2016, unrecognized compensation cost related to nonvested, share-based compensation was $3,080 and $2,131, respectively. As of March 31, 2017, the weighted average years outstanding for unvested awards under the Incentive Plan was 2.7. All awards under the previously existing LLC Agreement were fully vested as of March 31, 2017. During the nine months ended March 31, 2017, the Company withheld approximately 11,833 shares at an aggregate cost of approximately $167, as permitted by the applicable equity award agreements, to satisfy employee tax withholding requirements for employee share-based equity awards that have vested and were issued. Awards vesting during the nine months ended March 31, 2017 include 37,727 fully vested restricted stock units issued to non-employee directors for their service as directors for the Company.
Net Earnings Per Share
Net Earnings Per Share
Net Earnings Per Share
Basic net earnings per share of Class A Common Stock is computed by dividing net earnings 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 earnings 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 stockholders. The portion of consideration paid in Class A Common Stock related to the acquisition of Malibu Boats Pty. Ltd. that is subject to a time-based restriction is also included in the denominator.
Diluted net earnings per share of Class A Common Stock is computed similarly to basic net earnings 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 are considered common stock equivalents for this purpose. The number of additional shares of Class A Common Stock related to these common stock equivalents is calculated using the treasury stock method.
Basic and diluted net earnings per share of Class A Common Stock for the three and nine months ended March 31, 2017 and 2016 have been computed as follows (in thousands, except share and per share amounts):
 
Three Months Ended
 
Nine Months Ended
 
March 31, 2017
 
March 31, 2016
 
March 31, 2017
 
March 31, 2016
Basic:
 
 
 
 
 
 
 
Net income attributable to Malibu Boats, Inc.
$
8,013

 
$
5,776

 
$
18,694

 
$
14,438

Shares used in computing basic net income per share:
 
 
 
 
 
 
 
Weighted-average Class A Common Stock
17,727,956

 
17,868,896

 
17,665,672

 
17,876,726

Weighted-average participating restricted stock units convertible into Class A Common Stock
149,196

 
106,818

 
133,549

 
91,380

Basic weighted-average shares outstanding
17,877,152

 
17,975,714

 
17,799,221

 
17,968,106

Basic net income per share
$
0.45

 
$
0.32

 
$
1.05

 
$
0.80

 
 
 
 
 
 
 
 
Diluted:
 
 
 
 
 
 
 
Net income attributable to Malibu Boats, Inc.
$
8,013

 
$
5,776

 
$
18,694

 
$
14,438

Shares used in computing diluted net income per share:
 
 
 
 
 
 
 
Basic weighted-average shares outstanding
17,877,152

 
17,975,714

 
17,799,221

 
17,968,106

Restricted stock units granted to employees
85,134

 
27,144

 
88,045

 
54,233

Diluted weighted-average shares outstanding 1
17,962,286

 
18,002,858

 
17,887,266

 
18,022,339

Diluted net income per share
$
0.45

 
$
0.32

 
$
1.05

 
$
0.80

1 The Company excluded 1,293,447 and 1,484,611 potentially dilutive shares from the calculation of diluted net income per share for the three ended March 31, 2017 and 2016 and 1,293,447 and 1,415,723 potentially dilutive shares from the calculation of dilute net income for the nine months ended March 31, 2017 and 2016, respectively, as these shares 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.
Commitment and Contingencies
Commitments and Contingencies
Commitments and Contingencies
Repurchase Commitments
In connection with its dealers’ wholesale floor-plan financing of boats, the Company has entered into repurchase agreements with various lending institutions for sales generated from both the U.S. and Australia operating segments. The reserve methodology used to record an estimated expense and loss reserve in each accounting period is based upon an analysis of likely repurchases based on current field inventory and likelihood of repurchase. Subsequent to the inception of the repurchase commitment, the Company evaluates the likelihood of repurchase and adjusts the estimated loss reserve and related statement of operations account accordingly. This potential loss reserve is presented in accrued expenses in the accompanying unaudited condensed consolidated balance sheets. If the Company were obligated to repurchase a significant number of units under any repurchase agreement, its business, operating results and financial condition could be adversely affected.
Repurchases and subsequent sales are recorded as a revenue transaction. The net difference between the original repurchase price and the resale price is recorded against the loss reserve and presented in cost of sales in the accompanying unaudited condensed consolidated statement of operations and comprehensive income. No units were repurchased during the three or nine months ended March 31, 2017. During the fiscal year ended June 30, 2016, the Company agreed to repurchase three units from the lender of two of its former dealers. Other than these repurchase commitments, the Company has not repurchased another unit from lenders since July 1, 2010. Accordingly, the Company did not carry a reserve for repurchases as of March 31, 2017 or June 30, 2016, respectively.
Contingencies
Certain conditions may exist which could result in a loss, but which will only be resolved when future events occur. The Company, in consultation with its legal counsel, assesses such contingent liabilities, and such assessments inherently involve an exercise of judgment. If the assessment of a contingency indicates that it is probable that a loss has been incurred, the Company accrues for such contingent loss when it can be reasonably estimated. If the assessment indicates that a potentially material loss contingency is not probable but reasonably estimable, or is probable but cannot be estimated, the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. If the assessment of a contingency deemed to be both probable and reasonably estimable involves a range of possible losses, the amount within the range that appears at the time to be a better estimate than any other amount within the range would be accrued. When no amount within the range is a better estimate than any other amount, the minimum amount in the range is accrued even though the minimum amount in the range is not necessarily the amount of loss that will be ultimately determined.
Estimates of potential legal fees and other directly related costs associated with contingencies are not accrued but rather are expensed as incurred. Except as disclosed below under "Legal Proceedings," management does not believe there are any pending claims (asserted or unasserted) at March 31, 2017 (unaudited) or June 30, 2016 that may have a material adverse impact on the Company’s financial condition, results of operations or cash flows.
Legal Proceedings
On June 29, 2015, the Company filed suit against MasterCraft Boat Company, LLC, or "MasterCraft," in the U.S. District Court for the Eastern District of Tennessee, seeking monetary and injunctive relief. The Company's complaint alleged MasterCraft's infringement of a utility patent related to wake surfing technology (U.S. Patent No. 8,578,873). The Court had issued a scheduling order setting deadlines for discovery and other events in the litigation, leading up to a trial beginning on August 14, 2017.
On February 16, 2016, the Company filed a second suit against MasterCraft in the U.S. District Court for the Eastern District of Tennessee, seeking monetary and injunctive relief. The Company’s complaint alleges MasterCraft’s infringement of another utility patent related to wake surfing technology (U.S. Patent No. 9,260,161). The Court had issued a scheduling order setting deadlines for discovery and other events in the litigation, leading up to a trial beginning on October 30, 2017.
On May 18, 2016, MasterCraft filed two petitions with the U.S. Patent and Trademark Office, or “PTO,” requesting institution of Inter Partes Review, or “IPR,” of the Company’s U.S. Pat. No. 8,578,873, the patent at issue in the first Tennessee lawsuit. On August 23, 2016, the Company filed its preliminary responses to the IPR petitions. On November 16, 2016, the PTO declined to institute IPR in response to either of the two petitions.
On September 26, 2016, MasterCraft filed a request with the PTO for Ex Parte Reexamination of the Company’s U.S. Pat. No. 9,260,161, the patent at issue in the second Tennessee lawsuit. On November 18, 2016, the PTO granted that request for ex parte reexamination, and on February 16, 2017, the PTO issued a Non-Final Office Action. On April 17, 2017, the Company filed a Response to the Non-Final Office Action.
On May 2, 2017, the Company and MasterCraft entered into a Settlement Agreement (the “MasterCraft Settlement Agreement”) to settle lawsuits filed by the Company in the U.S. District Court for the Eastern District of Tennessee alleging infringement by MasterCraft of two of the Company’s utility patents. Under the terms of the MasterCraft Settlement Agreement, MasterCraft will make a one-time payment of $2,500 and entered into a license agreement for the payment of future royalties for boats sold by MasterCraft using the licensed technology. The parties agreed to dismiss all claims in the patent litigation. 
On April 22, 2014, Marine Power Holding, LLC ("Marine Power"), a former supplier of engines to the Company, initiated a lawsuit against the Company in the U.S. District Court for the Eastern District of Tennessee seeking monetary damages. On July 10, 2015, the Company filed an Answer and Counterclaim in the lawsuit filed by Marine Power. The Company denied any liability arising from the causes of action alleged by Marine Power. The lawsuit proceeded to trial on August 8, 2016 and on August 18, 2016, a judgment was rendered by the jury against the Company in the litigation with Marine Power resulting in the Company taking a charge of $3,268 during the three months ended June, 30, 2016. The Company subsequently prevailed on post-judgment motions and, on December 15, 2016, the court amended the judgment in the lawsuit for monetary damages to $1,938. Accordingly, the Company reduced the amount accrued for possible loss in connection with the litigation to the amount in the amended judgment as it represents the best estimate of the Company's loss at this time. On December 23, 2016, Marine Power filed a notice of appeal contesting the court's decision to reduce the amount of the original judgment. The Company has appealed the amended judgment and other rulings of the court and intends to vigorously defend its rights as it relates to the lawsuit, as it continues to believe that Marine Power's case is without merit.
On August 26, 2016, Wizard Lake Marine Inc. and Wizard Lake Marine (B.C.) Inc., collectively “Wizard Lake”, a former dealer of the Company’s, initiated a lawsuit against the Company in the Court of Queen’s Bench of Alberta, Canada seeking monetary damages. The suit alleged breach of contract, wrongful termination, misrepresentation, breach of duty of good faith, and intentional interference. Wizard Lake is asking for damages of $8,717. The Company denies any liability arising from the causes of action alleged by Wizard Lake and plans to vigorously defend the lawsuit.
Segment Information
Segment Information
Segment Information
The following tables present financial information for the Company’s reportable segments for the three and nine months ended March 31, 2017 and 2016, respectively, and the Company’s financial position at March 31, 2017 and June 30, 2016, respectively:
 
Three Months Ended March 31, 2017
 
Nine Months Ended March 31, 2017
 
U.S.
 
Australia
 
Eliminations
 
Total
 
U.S.
 
Australia
 
Eliminations
 
Total
Net sales
$
73,844

 
$
5,491

 
$
(2,186
)
 
$
77,149

 
$
196,285

 
$
17,158

 
$
(6,612
)
 
$
206,831

Affiliate (or intersegment) sales
2,186

 
—

 
(2,186
)
 
—

 
6,612

 
—

 
(6,612
)
 
—

Net sales to external customers
71,658

 
5,491

 
—

 
77,149

 
189,673

 
17,158

 
—

 
206,831

Income (loss) before provision for income taxes
12,193

 
556

 
(98
)
 
12,651

 
29,470

 
1,394

 
(158
)
 
30,706

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2016
 
Nine Months Ended March 31, 2016
 
U.S.
 
Australia
 
Eliminations
 
Total
 
U.S.
 
Australia
 
Eliminations
 
Total
Net sales
$
66,071

 
$
5,503

 
$
(3,035
)
 
$
68,539

 
$
176,972

 
$
15,666

 
$
(6,353
)
 
$
186,285

Affiliate (or intersegment) sales
3,035

 
—

 
(3,035
)
 
—

 
6,353

 
—

 
(6,353
)
 
—

Net sales to external customers
63,036

 
5,503

 
—

 
68,539

 
170,619

 
15,666

 
—

 
186,285

Income before provision for income taxes
10,635

 
230

 
(249
)
 
10,616

 
25,094

 
347

 
(225
)
 
25,216

 
As of March 31, 2017
 
As of June 30, 2016
Assets
 

 
 

U.S.
$
234,268

 
$
222,613

Australia
18,263

 
17,130

Eliminations
(17,507
)
 
(17,417
)
Total assets
$
235,024

 
$
222,326

Subsequent Events
Subsequent Events
Subsequent Events
On May 2, 2017, the Company and MasterCraft entered into the MasterCraft Settlement Agreement to settle lawsuits filed by the Company in the U.S. District Court for the Eastern District of Tennessee alleging infringement by MasterCraft of two of the Company’s utility patents. Under the terms of the MasterCraft Settlement Agreement, MasterCraft will make a one-time payment of $2,500 and entered into a license agreement for the payment of future royalties for boats sold by MasterCraft using the licensed technology. The parties agreed to dismiss all claims in the patent litigation.
Organization, Basis of Presentation, and Summary of Significant Accounting Policies (Policies)
Basis of presentation 
Basis of Presentation
The accompanying unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim condensed financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and disclosures of results of operations, financial position and changes in cash flow in conformity with GAAP for complete financial statements. Such statements should be read in conjunction with the audited consolidated financial statements and notes thereto of Malibu Boats, Inc. and subsidiaries for the year ended June 30, 2016 included in the Company's Annual Report on Form 10-K. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements reflect all adjustments considered necessary to present fairly the Company’s financial position at March 31, 2017 and the results of its operations for the three and nine month periods ended March 31, 2017 and March 31, 2016 and its cash flows for the nine month periods ended March 31, 2017 and March 31, 2016. Operating results for the nine months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the full year ending June 30, 2017. Certain reclassifications have been made to the prior period presentation to conform to the current period presentation. Units and shares are presented as whole numbers while all dollar amounts are presented in thousands, unless otherwise noted.
Principals of consolidation 
Principles of Consolidation
The accompanying unaudited condensed consolidated financial statements include the operations and accounts of the Company and all subsidiaries thereof. All intercompany balances and transactions have been eliminated upon consolidation.
Recent accounting pronouncements 
Recent Accounting Pronouncements
In May 2014, the FASB and International Accounting Standards Board jointly issued a final standard on revenue recognition which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This standard will supersede most current revenue recognition guidance. Under the new standard, entities are required to identify the contract with a customer; identify the separate performance obligations in the contract; determine the transaction price; allocate the transaction price to the separate performance obligations in the contract; and recognize the appropriate amount of revenue when (or as) the entity satisfies each performance obligation. Accounting Standards Update (“ASU”) 2014-09 will now become effective for fiscal years beginning after December 15, 2017. In August 2015, FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, to extend the mandatory effective date by one year. Entities have the option of using either the retrospective or cumulative effect transition method. The Company is currently evaluating the approach it will use to apply the new standard and the impact that the adoption of the new standard will have on the Company’s consolidated financial statements.
In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory. This ASU changes the measurement principle for inventories valued under the first-in, first-out or weighted-average methods from the lower of cost or market to the lower of cost and net realizable value. Net realizable value is defined by the FASB as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This ASU does not change the measurement principles for inventories valued under the last-in, first-out method. This amendment is effective for fiscal years beginning after December, 15, 2016, including interim periods within those fiscal years and should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently evaluating the impact of adopting this ASU, but does not expect it will have a material impact.
In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This guidance establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently assessing the potential impact of this ASU on its consolidated financial statements and footnote disclosures.
In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years with early adoption permitted. This guidance provides specific classification of how certain cash receipts and cash payments are presented in the statement of cash flows. The ASU should be applied using a retrospective transition method. If it is impracticable to apply the amendments retrospectively for some of the cash flow issues, the amendments for those issues should then be applied prospectively at the earliest date practicable. The Company is currently assessing the potential impact of this ASU on its presentation of the consolidated statement of cash flows.
In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The purpose of this ASU is to simplify the subsequent measurement of goodwill by removing the second step of the two-step impairment test. The amendment should be applied on a prospective basis. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within that year. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the potential impact of this ASU on its presentation of the consolidated financial statements and related disclosures.
There are no other new accounting pronouncements that are expected to have a significant impact on the Company's consolidated financial statements and related disclosures.
Non-controlling Interest (Tables)
Non-controlling Interest 
The ownership of Malibu Boats Holdings, LLC is summarized as follows:
 
As of March 31, 2017
 
As of June 30, 2016
 
Units
 
Ownership %
 
Units
 
Ownership %
Non-controlling LLC Unit holders ownership in Malibu Boats Holdings, LLC
1,260,627

 
6.6
%
 
1,404,923

 
7.4
%
Malibu Boats, Inc. ownership in Malibu Boats Holdings, LLC
17,930,617

 
93.4
%
 
17,690,874

 
92.6
%
 
19,191,244

 
100.0
%
 
19,095,797

 
100.0
%
Schedule of Noncontrolling Interest 
The changes in the balance of the Company's non-controlling interest are as follows:
Balance of non-controlling interest as of June 30, 2016
$
4,679

Allocation of income to non-controlling LLC Unit holders for period
2,115

Distributions paid and payable to non-controlling LLC Unit holders for period
(1,231
)
Reallocation of non-controlling ownership interests in exchange for Class A Common Stock
(2,789
)
Balance of non-controlling interest as of March 31, 2017
$
2,774

Inventories (Tables)
Inventories
Inventories, net consisted of the following:
 
As of March 31, 2017
 
As of June 30, 2016
Raw materials
$
18,292

 
$
14,858

Work in progress
3,028

 
1,250

Finished goods
6,045

 
4,323

Total inventories
$
27,365

 
$
20,431

Property and Equipment (Tables)
Property and Equipment
Property and equipment, net consisted of the following:
 
 
As of March 31, 2017
 
As of June 30, 2016
Land
 
$
367

 
$
254

Building and leasehold improvements
 
10,216

 
7,168

Machinery and equipment
 
21,384

 
20,035

Furniture and fixtures
 
2,873

 
2,765

Construction in process
 
2,884

 
356

 
 
37,724

 
30,578

Less: Accumulated depreciation
 
(15,770
)
 
(12,765
)
Property and equipment, net
 
$
21,954

 
$
17,813

Goodwill and Other Intangible Assets (Tables)
Schedule of Goodwill 
The changes in the carrying amount of goodwill for the nine months ended March 31, 2017 were as follows:
Goodwill as of June 30, 2016
$
12,470

Effect of foreign currency changes on goodwill
184

Goodwill as of March 31, 2017
$
12,654

Schedule of Acquired Finite-Lived Intangible Assets by Major Class 
The components of other intangible assets were as follows:
 
As of March 31, 2017
 
As of June 30, 2016
 
Estimated Useful Life (in years)
 
Weighted Average Remaining Useful Life (in years)
Reacquired franchise rights
$
1,376

 
$
1,339

 
5
 
2.6
Dealer relationships
29,837

 
29,773

 
8-15
 
12.6
Patent
1,386

 
1,386

 
12
 
1.3
Trade name
24,667

 
24,667

 
15
 
4.4
Non-compete agreement
54

 
52

 
10
 
7.6
Backlog
96

 
93

 
0.3
 
0.0
Total
57,416

 
57,310

 
 
 
 
Less: Accumulated amortization
(47,283
)
 
(45,607
)
 
 
 
 
Total other intangible assets, net
$
10,133


$
11,703

 
 
 
 
Schedule of finite-lived intangible assets, future amortization expense 
The estimated future amortization of definite-lived intangible assets is as follows:
Fiscal years ending June 30:
 
 
Remainder of 2017
$
551

 
2018
2,204

 
2019
2,097

 
2020
1,899

 
2021
1,813

 
Thereafter
1,569

 
 
$
10,133

Product Warranties (Tables)
Product Warranties
Changes in the Company’s product warranty liability, which is included in accrued expenses on the unaudited condensed consolidated balance sheets, were as follows: 
 
 
Three Months Ended
 
Nine Months Ended
 
 
March 31, 2017
 
March 31, 2016
 
March 31, 2017
 
March 31, 2016
Beginning balance
 
$
9,204

 
$
7,176

 
$
8,083

 
$
6,610

Add: Warranty expense
 
2,222

 
1,447

 
5,863

 
3,990

Less: Warranty claims paid
 
(1,244
)
 
(880
)
 
(3,764
)
 
(2,857
)
Ending balance
 
$
10,182

 
$
7,743

 
$
10,182

 
$
7,743

Financing (Tables)
Schedule of Debt
Outstanding debt consisted of the following:
 
As of March 31, 2017
 
As of June 30, 2016
Term loan
$
55,883

 
$
72,000

     Less unamortized debt issuance costs
(731
)
 
(914
)
Total debt
55,152

 
71,086

     Less current maturities
—

 
(8,000
)
Long-term debt less current maturities
$
55,152

 
$
63,086

Tax Receivable Agreement Liability (Tables)
Tax Receivable Agreement Liability
The following table reflects the changes to the Company's Tax Receivable Agreement liability:
 
March 31, 2017
 
June 30, 2016
Payable pursuant to tax receivable agreement
$
93,750

 
$
96,470

Additions to tax receivable agreement:
 
 
 
Exchange of LLC Units for Class A Common Stock
1,222

 
111

Payments under tax receivable agreement
—

 
(2,831
)
 
94,972

 
93,750

Less current portion under tax receivable agreement
(4,360
)
 
(4,189
)
Payable pursuant to tax receivable agreement, less current portion
$
90,612

 
$
89,561

Fair Value Measurements (Tables)
Assets and Liabilities on Recurring Basis
Assets and liabilities that had recurring fair value measurements were as follows:
 
Fair Value Measurements at Reporting Date Using
 
Total
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
As of March 31, 2017:
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
Interest rate swap not designated as cash flow hedge
$
78

 
$
—

 
$
78

 
$
—

Total assets at fair value
$
78

 
$
—

 
$
78

 
$
—

 
 
 
 
 
 
 
 
As of June 30, 2016:
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
Interest rate swap not designated as cash flow hedge
$
863

 
$
—

 
$
863

 
$
—

Total liabilities at fair value
$
863

 
$
—

 
$
863

 
$
—

Stock-Based Compensation (Tables)
Schedule of Summary of the Changes in Non-vested Restricted
The following is a summary of the changes in non-vested restricted stock units and restricted stock awards for the nine months ended March 31, 2017:
 
Number of Restricted Stock Units and Restricted Stock Awards Outstanding
 
Weighted Average Grant Date Fair Value
Total Non-vested Restricted Stock Units as of June 30, 2016
140,908

 
$
16.17

Granted
168,227

 
15.55

Vested
(70,368
)
 
(15.30
)
Forfeited
(975
)
 
(20.18
)
Total Non-vested Restricted Stock Units as of March 31, 2017
237,792

 
$
15.98

Net Earnings Per Share (Tables)
Schedule of Basic and Diluted Net Income per Share
Basic and diluted net earnings per share of Class A Common Stock for the three and nine months ended March 31, 2017 and 2016 have been computed as follows (in thousands, except share and per share amounts):
 
Three Months Ended
 
Nine Months Ended
 
March 31, 2017
 
March 31, 2016
 
March 31, 2017
 
March 31, 2016
Basic:
 
 
 
 
 
 
 
Net income attributable to Malibu Boats, Inc.
$
8,013

 
$
5,776

 
$
18,694

 
$
14,438

Shares used in computing basic net income per share:
 
 
 
 
 
 
 
Weighted-average Class A Common Stock
17,727,956

 
17,868,896

 
17,665,672

 
17,876,726

Weighted-average participating restricted stock units convertible into Class A Common Stock
149,196

 
106,818

 
133,549

 
91,380

Basic weighted-average shares outstanding
17,877,152

 
17,975,714

 
17,799,221

 
17,968,106

Basic net income per share
$
0.45

 
$
0.32

 
$
1.05

 
$
0.80

 
 
 
 
 
 
 
 
Diluted:
 
 
 
 
 
 
 
Net income attributable to Malibu Boats, Inc.
$
8,013

 
$
5,776

 
$
18,694

 
$
14,438

Shares used in computing diluted net income per share:
 
 
 
 
 
 
 
Basic weighted-average shares outstanding
17,877,152

 
17,975,714

 
17,799,221

 
17,968,106

Restricted stock units granted to employees
85,134

 
27,144

 
88,045

 
54,233

Diluted weighted-average shares outstanding 1
17,962,286

 
18,002,858

 
17,887,266

 
18,022,339

Diluted net income per share
$
0.45

 
$
0.32

 
$
1.05

 
$
0.80

1 The Company excluded 1,293,447 and 1,484,611 potentially dilutive shares from the calculation of diluted net income per share for the three ended March 31, 2017 and 2016 and 1,293,447 and 1,415,723 potentially dilutive shares from the calculation of dilute net income for the nine months ended March 31, 2017 and 2016, respectively, as these shares
Segment Information (Tables)
Schedule of Segment Reporting Information, by Segment
The following tables present financial information for the Company’s reportable segments for the three and nine months ended March 31, 2017 and 2016, respectively, and the Company’s financial position at March 31, 2017 and June 30, 2016, respectively:
 
Three Months Ended March 31, 2017
 
Nine Months Ended March 31, 2017
 
U.S.
 
Australia
 
Eliminations
 
Total
 
U.S.
 
Australia
 
Eliminations
 
Total
Net sales
$
73,844

 
$
5,491

 
$
(2,186
)
 
$
77,149

 
$
196,285

 
$
17,158

 
$
(6,612
)
 
$
206,831

Affiliate (or intersegment) sales
2,186

 
—

 
(2,186
)
 
—

 
6,612

 
—

 
(6,612
)
 
—

Net sales to external customers
71,658

 
5,491

 
—

 
77,149

 
189,673

 
17,158

 
—

 
206,831

Income (loss) before provision for income taxes
12,193

 
556

 
(98
)
 
12,651

 
29,470

 
1,394

 
(158
)
 
30,706

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2016
 
Nine Months Ended March 31, 2016
 
U.S.
 
Australia
 
Eliminations
 
Total
 
U.S.
 
Australia
 
Eliminations
 
Total
Net sales
$
66,071

 
$
5,503

 
$
(3,035
)
 
$
68,539

 
$
176,972

 
$
15,666

 
$
(6,353
)
 
$
186,285

Affiliate (or intersegment) sales
3,035

 
—

 
(3,035
)
 
—

 
6,353

 
—

 
(6,353
)
 
—

Net sales to external customers
63,036

 
5,503

 
—

 
68,539

 
170,619

 
15,666

 
—

 
186,285

Income before provision for income taxes
10,635

 
230

 
(249
)
 
10,616

 
25,094

 
347

 
(225
)
 
25,216

 
As of March 31, 2017
 
As of June 30, 2016
Assets
 

 
 

U.S.
$
234,268

 
$
222,613

Australia
18,263

 
17,130

Eliminations
(17,507
)
 
(17,417
)
Total assets
$
235,024

 
$
222,326

Organization, Basis of Presentation, and Summary of Significant Accounting Policies Narrative (Details) (USD $)
9 Months Ended
Mar. 31, 2017
Segment
Jun. 30, 2016
Immaterial Error Correction [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
Number of reportable segments
2 
 
Immaterial error correction
 
$ 1,796,000 
Non-controlling Interest Ownership (Details)
Mar. 31, 2017
Jun. 30, 2016
Class of Stock [Line Items]
 
 
Units
19,191,244 
19,095,797 
Ownership %
100.00% 
100.00% 
Non-controlling LLC Unit holders ownership in Malibu Boats Holdings, LLC |
Malibu Boat LLC [Member]
 
 
Class of Stock [Line Items]
 
 
Units
1,260,627 
1,404,923 
Ownership %
6.60% 
7.40% 
Malibu Boats, Inc. ownership in Malibu Boats Holdings, LLC |
Parent Company [Member]
 
 
Class of Stock [Line Items]
 
 
Units
17,930,617 
17,690,874 
Ownership %
93.40% 
92.60% 
Non-controlling Interest Change in Non-controling interest (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Mar. 31, 2017
Mar. 31, 2016
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
 
 
 
 
Balance of non-controlling interest as of June 30, 2016
 
 
$ 4,679 
 
Allocation of income to non-controlling LLC Unit holders for period
833 
731 
2,115 
1,767 
Distributions paid and payable to non-controlling LLC Unit holders for period
 
 
1,208 
 
Reallocation of non-controlling ownership interests in exchange for Class A Common Stock
 
 
2 
 
Balance of non-controlling interest as of March 31, 2017
2,774 
 
2,774 
 
Non-controlling LLC Unit holders ownership in Malibu Boats Holdings, LLC
 
 
 
 
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
 
 
 
 
Distributions paid and payable to non-controlling LLC Unit holders for period
 
 
1,231 
 
Reallocation of non-controlling ownership interests in exchange for Class A Common Stock
 
 
$ (2,789)
 
Non-controlling Interest Narrative (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
9 Months Ended 12 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Jun. 30, 2016
Noncontrolling Interest [Line Items]
 
 
 
Treasury stock, shares, retired (in shares)
(5,873,000)
 
 
Tax distributions payable to non-controlling LLC Unit holders
$ 520 
$ 434 
 
Non-controlling LLC Unit holders ownership in Malibu Boats Holdings, LLC
 
 
 
Noncontrolling Interest [Line Items]
 
 
 
Tax distributions payable to non-controlling LLC Unit holders
520 
 
341 
Tax distributions paid to non-controlling LLC Unit holders
$ 1,052 
$ 660 
 
Class A Common Stock [Member]
 
 
 
Noncontrolling Interest [Line Items]
 
 
 
Issuance LLC Units (in shares)
245,616 
 
 
Inventories (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2017
Jun. 30, 2016
Inventory Disclosure [Abstract]
 
 
Raw materials
$ 18,292 
$ 14,858 
Work in progress
3,028 
1,250 
Finished goods
6,045 
4,323 
Total inventories
$ 27,365 
$ 20,431 
Property and Equipment (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2017
Jun. 30, 2016
Property, Plant and Equipment [Line Items]
 
 
Property equipment, gross
$ 37,724 
$ 30,578 
Less: Accumulated depreciation
(15,770)
(12,765)
Property and equipment, net
21,954 
17,813 
Land
 
 
Property, Plant and Equipment [Line Items]
 
 
Property equipment, gross
367 
254 
Building and leasehold improvements
 
 
Property, Plant and Equipment [Line Items]
 
 
Property equipment, gross
10,216 
7,168 
Machinery and equipment
 
 
Property, Plant and Equipment [Line Items]
 
 
Property equipment, gross
21,384 
20,035 
Furniture and fixtures
 
 
Property, Plant and Equipment [Line Items]
 
 
Property equipment, gross
2,873 
2,765 
Construction in process
 
 
Property, Plant and Equipment [Line Items]
 
 
Property equipment, gross
$ 2,884 
$ 356 
Property and Equipment Narrative (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Mar. 31, 2017
Mar. 31, 2016
Property, Plant and Equipment [Abstract]
 
 
 
 
Depreciation
$ 1,050 
$ 833 
$ 3,044 
$ 2,449 
Goodwill and Other Intangible Assets - Carrying Amount of Goodwill (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Mar. 31, 2017
Goodwill [Roll Forward]
 
Goodwill as of June 30, 2016
$ 12,470 
Effect of foreign currency changes on goodwill
184 
Goodwill as of March 31, 2017
$ 12,654 
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Mar. 31, 2017
Jun. 30, 2016
Goodwill [Line Items]
 
 
Gross Carrying Amount
$ 57,416 
$ 57,310 
Accumulated Amortization
(47,283)
(45,607)
Total other intangible assets, net
10,133 
11,703 
Reacquired franchise rights
 
 
Goodwill [Line Items]
 
 
Gross Carrying Amount
1,376 
1,339 
Estimated Useful Life (in years)
5 years 
 
Weighted Average Remaining Useful Life (in years)
2 years 7 months 0 days 
 
Dealer relationships
 
 
Goodwill [Line Items]
 
 
Gross Carrying Amount
29,837 
29,773 
Weighted Average Remaining Useful Life (in years)
12 years 7 months 3 days 
 
Patent
 
 
Goodwill [Line Items]
 
 
Gross Carrying Amount
1,386 
1,386 
Estimated Useful Life (in years)
12 years 
 
Weighted Average Remaining Useful Life (in years)
1 year 3 months 20 days 
 
Trade name
 
 
Goodwill [Line Items]
 
 
Gross Carrying Amount
24,667 
24,667 
Estimated Useful Life (in years)
15 years 
 
Weighted Average Remaining Useful Life (in years)
4 years 4 months 23 days 
 
Non-compete agreement
 
 
Goodwill [Line Items]
 
 
Gross Carrying Amount
54 
52 
Estimated Useful Life (in years)
10 years 
 
Weighted Average Remaining Useful Life (in years)
7 years 6 months 23 days 
 
Backlog
 
 
Goodwill [Line Items]
 
 
Gross Carrying Amount
$ 96 
$ 93 
Estimated Useful Life (in years)
3 months 22 days 
 
Weighted Average Remaining Useful Life (in years)
0 years 0 months 1 day 
 
Minimum |
Dealer relationships
 
 
Goodwill [Line Items]
 
 
Estimated Useful Life (in years)
8 years 
 
Maximum |
Dealer relationships
 
 
Goodwill [Line Items]
 
 
Estimated Useful Life (in years)
15 years 
 
Goodwill and Other Intangible Assets - Intangible Assets - Future Amortization (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2017
Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
Remainder of 2017
$ 551 
 
2018
2,204 
 
2019
2,097 
 
2020
1,899 
 
2021
1,813 
 
Thereafter
1,569 
 
Net Book Value
$ 10,133 
$ 11,703 
Goodwill and Other Intangible Assets - Narrative (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Mar. 31, 2017
Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
 
 
Amortization of intangible assets
$ 550 
$ 545 
$ 1,649 
$ 1,637 
Product Warranties Narrative (Details)
9 Months Ended
Mar. 31, 2017
Malibu and Axis Products MY16 and subsequent
 
Product Warranty Liability [Line Items]
 
Standard product warranty, period
5 years 
Malibu boats MY15 and prior
 
Product Warranty Liability [Line Items]
 
Standard product warranty, period
3 years 
Axis boats MY15 and prior
 
Product Warranty Liability [Line Items]
 
Standard product warranty, period
2 years 
Product Warranties (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Mar. 31, 2017
Mar. 31, 2016
Movement in Standard Product Warranty Accrual [Roll Forward]
 
 
 
 
Beginning balance
$ 9,204 
$ 7,176 
$ 8,083 
$ 6,610 
Add: Warranty expense
2,222 
1,447 
5,863 
3,990 
Less: Warranty claims paid
(1,244)
(880)
(3,764)
(2,857)
Ending balance
$ 10,182 
$ 7,743 
$ 10,182 
$ 7,743 
Financing Debt (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2017
Jun. 30, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Term loan
$ 55,883 
$ 72,000 
Term loan
55,152 
71,086 
Less current maturities
0 
(8,000)
Long-term debt less current maturities
55,152 
63,086 
New Accounting Principles, Early Adoption |
April 2015 Term Loan
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Less unamortized debt issuance costs
$ (731)
$ (914)
Financing (Long-Term Debt Narratives) (Details) (USD $)
0 Months Ended 3 Months Ended 9 Months Ended 0 Months Ended
Oct. 28, 2016
Aug. 4, 2016
Jul. 1, 2015
Mar. 31, 2017
Mar. 31, 2016
Mar. 31, 2017
Mar. 31, 2016
Jun. 30, 2016
Jul. 1, 2015
Mar. 31, 2017
Revolving Credit Facility
Apr. 2, 2015
Term Loan
Mar. 31, 2017
Letter of Credit
Mar. 31, 2017
Swing Line of Credit
Mar. 31, 2017
Long-term Debt
Apr. 2, 2015
London Interbank Offered Rate (LIBOR)
Revolving Credit Facility
Apr. 2, 2015
Base Rate
Revolving Credit Facility
Apr. 2, 2015
Minimum
Revolving Credit Facility
Apr. 2, 2015
Minimum
London Interbank Offered Rate (LIBOR)
Revolving Credit Facility
Apr. 2, 2015
Minimum
Base Rate
Revolving Credit Facility
Apr. 2, 2015
Maximum
Revolving Credit Facility
Apr. 2, 2015
Maximum
London Interbank Offered Rate (LIBOR)
Revolving Credit Facility
Apr. 2, 2015
Maximum
Base Rate
Revolving Credit Facility
Apr. 2, 2015
Debt Instrument, Redemption, Period One
Long-term Debt
Apr. 2, 2015
Debt Instrument, Redemption, Period Two
Long-term Debt
Apr. 2, 2015
Debt Instrument, Redemption, Period Three
Long-term Debt
Apr. 2, 2015
U.S. Segment
Mar. 31, 2017
Class A Common Stock
Mar. 31, 2017
Interest Rate Swap
Jun. 30, 2016
Interest Rate Swap
Line of Credit Facility [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum borrowing capacity
 
 
 
 
 
 
 
 
 
$ 25,000,000 
 
$ 5,000,000 
$ 5,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount outstanding
 
 
 
 
 
 
 
 
 
0 
 
100,000 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt
 
 
 
55,152,000 
 
55,152,000 
 
71,086,000 
 
 
80,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, periodic payment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,500,000 
2,000,000 
2,500,000 
 
 
 
 
Debt instrument, basis spread on variable rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.00% 
50.00% 
 
200.00% 
100.00% 
 
275.00% 
175.00% 
 
 
 
 
 
 
 
Line of credit facility, unused capacity, commitment fee percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
25.00% 
 
 
40.00% 
 
 
 
 
 
 
 
 
 
Long-term debt, weighted average interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
3.06% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit agreement distributions allowable, amount
 
 
 
 
 
2,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount available for dividend distribution without affecting capital adequacy requirements
 
 
 
6,000,000 
 
6,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock repurchase program, authorized amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15,000,000 
 
 
Deferred finance costs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,224,000 
 
 
 
Principal payments on long-term borrowings
1,117,000 
15,000,000 
 
 
 
16,117,000 
4,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, term of contract
 
 
5 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed quarterly interest rate
 
 
 
 
 
 
 
 
152.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative notional amount
 
 
 
 
 
 
 
 
39,250,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding balance, percent
 
 
50.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, gain on derivative
 
 
 
116,000 
 
941,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, loss on derivative
 
 
 
 
510,000 
 
685,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Asset
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
78,000 
 
Interest rate swap not designated as cash flow hedge
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 863,000 
Tax Receivable Agreement Liability (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended 12 Months Ended
Mar. 31, 2017
Jun. 30, 2016
Mar. 31, 2017
Tax Receivable Agreement [Line Items]
 
 
 
Tax receivable agreement, percentage of realized cash saving in tax to pass through
8,500.00% 
 
 
Tax Receivable Agreement [Roll Forward]
 
 
 
Payable pursuant to tax receivable agreement
$ 93,750 
$ 96,470 
 
Additions to tax receivable agreement:
 
 
 
Payments under tax receivable agreement
0 
(2,831)
 
Payable pursuant to tax receivable agreement
94,972 
93,750 
 
Less current portion under tax receivable agreement
(4,360)
(4,189)
 
Payable pursuant to tax receivable agreement
89,561 
 
90,612 
Exchange of LLC Units for Class A Shares
 
 
 
Additions to tax receivable agreement:
 
 
 
Exchange of LLC Units for Class A Common Stock
$ 1,222 
$ 111 
 
Tax Receivable Agreement Liability Narrative (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2017
Jun. 30, 2016
Tax Receivable Agreement [Abstract]
 
 
Tax receivable agreement, percentage of realized cash saving in tax to pass through
8,500.00% 
 
Deferred tax assets, investment in subsidiaries
$ 112,500 
$ 111,060 
Fair Value Measurements (Details) (Recurring, USD $)
In Thousands, unless otherwise specified
Mar. 31, 2017
Jun. 30, 2016
Assets
 
 
Interest rate swap not designated as cash flow hedge
$ 78 
 
Liabilities
 
 
Interest rate swap not designated as cash flow hedge
 
863 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Assets
 
 
Interest rate swap not designated as cash flow hedge
0 
 
Liabilities
 
 
Interest rate swap not designated as cash flow hedge
 
0 
Significant Other Observable Inputs (Level 2)
 
 
Assets
 
 
Interest rate swap not designated as cash flow hedge
78 
 
Liabilities
 
 
Interest rate swap not designated as cash flow hedge
 
863 
Significant Unobservable Inputs (Level 3)
 
 
Assets
 
 
Interest rate swap not designated as cash flow hedge
0 
 
Liabilities
 
 
Interest rate swap not designated as cash flow hedge
 
$ 0 
Income Taxes (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Mar. 31, 2017
Mar. 31, 2016
Jun. 30, 2016
Income Tax Disclosure [Abstract]
 
 
 
 
 
Deferred tax assets, valuation allowance
$ 9,819 
 
$ 9,819 
 
$ 9,700 
Effective income tax rate reconciliation, percent
30.10% 
38.70% 
32.20% 
35.70% 
 
Effective income tax rate reconciliation, at federal statutory income tax rate, percent
 
 
35.00% 
 
 
Stock-Based Compensation Summary of Changes in Non-vested Restricted Shares (Details) (USD $)
0 Months Ended 9 Months Ended
Nov. 4, 2016
Nov. 6, 2015
Mar. 31, 2017
Number of Restricted Stock Units and Restricted Stock Awards Outstanding
 
 
 
Forfeited (in shares)
 
 
(975)
Restricted Stock
 
 
 
Number of Restricted Stock Units and Restricted Stock Awards Outstanding
 
 
 
Total Non-vested Restricted Stock Units as of June 30, 2016 (in shares)
 
 
140,908 
Granted (in shares)
 
 
168,227 
Vested (in shares)
 
 
(70,368)
Total Non-vested Restricted Stock Units as of December 31, 2016 (in shares)
 
 
237,792 
Weighted Average Grant Date Fair Value
 
 
 
Total Non-vested Restricted Stock Units as of June 30, 2016 (in usd per share)
 
 
$ 16.17 
Granted (in usd per share)
$ 15.62 
$ 15.27 
$ 15.55 
Vested (in usd per share)
 
 
$ (15.30)
Forfeited (in usd per share)
 
 
$ (20.18)
Total Non-vested Restricted Stock Units as of December 31, 2016 (in usd per share)
 
 
$ 15.98 
Stock-Based Compensation Narrative (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
9 Months Ended 0 Months Ended 3 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended 0 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Nov. 4, 2016
Restricted Stock
Nov. 6, 2015
Restricted Stock
Mar. 31, 2017
Restricted Stock
Mar. 31, 2016
Restricted Stock
Mar. 31, 2017
Restricted Stock
Mar. 31, 2016
Restricted Stock
Jun. 30, 2016
Restricted Stock
Mar. 31, 2017
Long-Term Incentive Plan
Jan. 1, 2014
Long-Term Incentive Plan
Mar. 31, 2017
Long-Term Incentive Plan
Restricted Stock
Nov. 4, 2016
Share-based Compensation Award, Tranche One
Restricted Stock
Nov. 6, 2015
Share-based Compensation Award, Tranche One
Restricted Stock
Nov. 4, 2016
Share-based Compensation Award, Tranche Two
Restricted Stock
Nov. 6, 2015
Share-based Compensation Award, Tranche Two
Restricted Stock
Nov. 6, 2015
Share-based Compensation Award, Tranche Three
Restricted Stock
Sep. 14, 2016
November 6, 2015 Grant
Restricted Stock
Nov. 4, 2016
Minimum
Share-based Compensation Award, Tranche Two
Restricted Stock
Nov. 6, 2015
Minimum
Share-based Compensation Award, Tranche Two
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares reserved for issuance in the Long-Term Incentive Plan (in shares)
 
 
 
 
 
 
 
 
 
 
1,700,000 
 
 
 
 
 
 
 
 
 
Share-based compensation arrangement by share-based payment award, number of shares available for grant
 
 
 
 
 
 
 
 
 
1,224,384 
 
 
 
 
 
 
 
 
 
 
Non-Option equity instruments, granted (in shares)
 
 
130,500 
130,564 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity instruments other than options, grants in period, grant date fair value
 
 
$ 2,039 
$ 1,994 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Granted (in usd per share)
 
 
$ 15.62 
$ 15.27 
 
 
$ 15.55 
 
 
 
 
 
 
 
 
 
 
$ 14.10 
 
 
Award vesting rights, percentage
 
 
 
 
 
 
 
 
 
 
 
 
63.00% 
12.00% 
37.00% 
38.00% 
50.00% 
 
 
 
Award vesting period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4 years 
3 years 
Vested (in shares)
 
 
 
 
 
 
70,368 
 
 
 
 
 
 
 
 
 
 
18,863 
 
 
Stock compensation expense
 
 
 
 
325 
459 
1,070 
1,464 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized compensation cost
 
 
 
 
3,080 
 
3,080 
 
2,131 
 
 
 
 
 
 
 
 
 
 
 
Weighted average years outstanding for unvested awards
 
 
 
 
 
 
 
 
 
2 years 8 months 
 
 
 
 
 
 
 
 
 
 
Shares paid for tax withholding for share based compensation (in shares)
 
 
 
 
 
 
11,833 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash paid for withholding taxes on vested restricted stock
$ 167 
$ 0 
 
 
 
 
$ 167 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuances of equity for services (in shares)
 
 
 
 
 
 
 
 
 
 
 
37,727 
 
 
 
 
 
 
 
 
Net Earnings Per Share (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Mar. 31, 2017
Mar. 31, 2016
Basic:
 
 
 
 
Net income attributable to Malibu Boats, Inc.
$ 8,013 
$ 5,776 
$ 18,694 
$ 14,438 
Basic weighted-average shares outstanding
17,877,152 
17,975,714 
17,799,221 
17,968,106 
Basic net income (loss) per share (in dollars per share)
$ 0.45 
$ 0.32 
$ 1.05 
$ 0.80 
Diluted:
 
 
 
 
Net income attributable to Malibu Boats, Inc.
$ 8,013 
$ 5,776 
$ 18,694 
$ 14,438 
Shares used in computing basic net income per share:
17,877,152 
17,975,714 
17,799,221 
17,968,106 
Weighted average shares outstanding used in computing net income per share, Diluted (in shares)
17,962,286 
18,002,858 
17,887,266 
18,022,339 
Diluted net income (loss) per share (in dollars per share)
$ 0.45 
$ 0.32 
$ 1.05 
$ 0.80 
Antidilutive securities excluded from computation of earnings per share, amount (in shares)
1,293,447 
1,484,611 
1,293,447 
1,415,723 
Class A Common Stock
 
 
 
 
Basic:
 
 
 
 
Basic weighted-average shares outstanding
17,727,956 
17,868,896 
17,665,672 
17,876,726 
Diluted:
 
 
 
 
Shares used in computing basic net income per share:
17,727,956 
17,868,896 
17,665,672 
17,876,726 
Restricted Stock Units (RSUs)
 
 
 
 
Diluted:
 
 
 
 
Weighted-average restricted shares. adjustments
85,134 
27,144 
88,045 
54,233 
Fully Vested/Participating |
Restricted Stock Units (RSUs)
 
 
 
 
Basic:
 
 
 
 
Basic weighted-average shares outstanding
149,196 
106,818 
133,549 
91,380 
Diluted:
 
 
 
 
Shares used in computing basic net income per share:
149,196 
106,818 
133,549 
91,380 
Commitment and Contingencies (Details) (USD $)
In Thousands, unless otherwise specified
0 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended 0 Months Ended
Aug. 18, 2016
Mar. 31, 2017
Members
Mar. 31, 2017
member
Jun. 30, 2016
member
Dec. 15, 2016
May 2, 2017
Subsequent Event
Subsequent Event [Line Items]
 
 
 
 
 
 
Repurchase units, number
 
0 
0 
3 
 
 
Repurchase dealers, number
 
 
 
2 
 
 
Litigation settlement for (against)
$ (3,268)
 
 
 
 
$ 3,000 
Amended litigation settlement, amount
 
 
 
 
1,938 
 
Loss contingency, damages sought
 
$ 8,717 
 
 
 
 
Segment Information (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Mar. 31, 2017
Mar. 31, 2016
Segment Reporting Information [Line Items]
 
 
 
 
Net Sales
$ 77,149 
$ 68,539 
$ 206,831 
$ 186,285 
Income before provision for income taxes
12,651 
10,616 
30,706 
25,216 
U.S.
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net Sales
71,658 
63,036 
189,673 
170,619 
Income before provision for income taxes
12,193 
10,635 
29,470 
25,094 
Australia
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net Sales
5,491 
5,503 
17,158 
15,666 
Income before provision for income taxes
556 
230 
1,394 
347 
Operating Segments
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net Sales
77,149 
68,539 
206,831 
186,285 
Operating Segments |
U.S.
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net Sales
73,844 
66,071 
196,285 
176,972 
Operating Segments |
Australia
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net Sales
5,491 
5,503 
17,158 
15,666 
Intersegment Eliminations
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net Sales
(2,186)
(3,035)
(6,612)
(6,353)
Income before provision for income taxes
(98)
(249)
(158)
(225)
Intersegment Eliminations |
U.S.
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net Sales
$ 2,186 
$ 3,035 
$ 6,612 
$ 6,353 
Segment Information Assets (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2017
Jun. 30, 2016
Segment Reporting Information [Line Items]
 
 
Assets
$ 235,024 
$ 222,326 
U.S.
 
 
Segment Reporting Information [Line Items]
 
 
Assets
234,268 
222,613 
Australia
 
 
Segment Reporting Information [Line Items]
 
 
Assets
18,263 
17,130 
Intersegment Eliminations
 
 
Segment Reporting Information [Line Items]
 
 
Assets
$ (17,507)
$ (17,417)
Subsequent Events (Details) (USD $)
In Thousands, unless otherwise specified
0 Months Ended
Aug. 18, 2016
May 2, 2017
Subsequent Event
Subsequent Event [Line Items]
 
 
Litigation settlement
$ (3,268)
$ 3,000