Exhibit 11
Horace Mann Educators Corporation
Computation of Net Income (Loss) per Share (Unaudited)
For the Three and Nine Months Ended September 30, 2008 and 2007
(Amounts in thousands, except per share data)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||
Basic - assumes no dilution: | ||||||||||||||
Net income (loss) for the period | $ | (30,808 | ) | $ | 18,322 | $ | (12,010 | ) | $ | 64,756 | ||||
Weighted average number of common shares outstanding during the period | 39,062 | 43,288 | 40,074 | 43,210 | ||||||||||
Net income (loss) per share – basic | $ | (0.79 | ) | $ | 0.42 | $ | (0.30 | ) | $ | 1.50 | ||||
Diluted - assumes full dilution: | ||||||||||||||
Net income (loss) for the period | $ | (30,808 | ) | $ | 18,322 | $ | (12,010 | ) | $ | 64,756 | ||||
Interest expense, net of tax, on dilutive Senior Convertible Notes (1) | — | — | — | 279 | ||||||||||
Adjusted net income (loss) for the period | $ | (30,808 | ) | $ | 18,322 | $ | (12,010 | ) | $ | 65,035 | ||||
Weighted average number of common shares outstanding during the period | 39,062 | 43,288 | 40,074 | 43,210 | ||||||||||
Weighted average number of common equivalent shares to reflect the dilutive effect of common stock equivalent securities (2): | ||||||||||||||
Stock options | — | 202 | — | 259 | ||||||||||
Common stock units related to Deferred Equity Compensation Plan for Directors | — | 224 | — | 224 | ||||||||||
Common stock units related to Deferred Compensation Plan for Employees | — | 218 | — | 218 | ||||||||||
Restricted common stock units related to Incentive Compensation Plan | — | 336 | — | 336 | ||||||||||
Weighted average number of common equivalent shares to reflect the dilutive effect of Senior Convertible Notes (1) | — | — | — | 593 | ||||||||||
Total common and common equivalent shares adjusted to calculate diluted earnings per share | 39,062 | 44,268 | 40,074 | 44,840 | ||||||||||
Net income (loss) per share – diluted | $ | (0.79 | ) | $ | 0.41 | $ | (0.30 | ) | $ | 1.45 | ||||
(1) | On May 14, 2007, the Company redeemed all remaining Senior Convertible Notes. |
(2) | As a result of the Company’s net losses for the three and nine months ended September 30, 2008, common equivalent shares are excluded from diluted shares due to their antidilutive effect for these periods. |