Exhibit 11
Horace Mann Educators Corporation
Computation of Net Income per Share
For the Years Ended December 31, 1999, 1998 and 1997
(Amounts in thousands, except per share data)
Year Ended December 31,
-------------------------------
1999 1998 1997
---- ---- ----
Basic - assumes no dilution:
Net income for the period $44,505 $85,312 $83,576
------- ------- -------
Weighted average number of common
shares outstanding during the period 41,246 43,239 45,825
------- ------- -------
Net income per share - basic $ 1.08 $ 1.97 $ 1.82
======= ======= =======
Diluted - assumes full dilution:
Net income for the period $44,505 $85,312 $83,576
------- ------- -------
Weighted average number of common
shares outstanding during the period 41,246 43,239 45,825
Weighted average number of common
equivalent shares to reflect the dilutive
effect of common stock equivalent
securities:
Stock options 387 451 416
Common stock units related to Deferred
Equity Compensation Plan for
Directors 69 49 33
Common stock units related to Deferred
Compensation Plan for Employees 6 1 -
Warrants - 98 251
------- ------- -------
Total common and common equivalent
shares adjusted to calculate diluted
earnings per share 41,708 43,838 46,525
------- ------- -------
Net income per share - diluted $ 1.07 $ 1.95 $ 1.80
======= ======= =======
Percentage of dilution compared to
basic net income per share 0.9% 1.0% 1.1%