Exhibit 11
Horace Mann Educators Corporation
Computation of Net Income per Share
For the Three and Six Months Ended June 30, 1996 and 1995
(Amounts in thousands, except per share data)
Three Months Ended Six Months Ended
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June 30, June 30,
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1996 1995 1996 1995
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Primary - reported:
Weighted average number of common shares
outstanding during the period 23,449 24,747 23,437 26,842
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Net income for the period $17,081 $16,230 $32,514 $33,346
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Net income per share - assuming no dilution $ 0.73 $ 0.66 $ 1.39 $ 1.24
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Primary:
Weighted average number of common shares
outstanding during the period 23,449 24,747 23,437 26,842
Weighted average number of common equivalent
shares to reflect the dilutive effect of
common stock equivalent securities:
Warrants 116 107 117 107
Stock options 301 151 310 149
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Total common and common equivalent shares 23,866 25,005 23,864 27,098
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Net income per share $ 0.72 $ 0.65 $ 1.36 $ 1.23
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Percentage of dilution compared to reported
net income per share 1.4% 1.5% 2.2% 0.8%
Fully diluted:
Weighted average number of common shares
outstanding during the period 23,449 24,747 23,437 26,842
Weighted average number of common equivalent
shares to reflect the dilutive effect of
common stock equivalent securities:
Warrants 117 108 117 108
Stock options 308 155 310 154
Weighted average number of common equivalent
shares to reflect the dilutive effect of
convertible notes - 2,857 - 2,857
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Total common and common equivalent shares
adjusted to calculate fully diluted
earnings per share 23,874 27,867 23,864 29,961
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Net income for the period $17,081 $16,230 $32,514 $33,346
Interest expense, net of tax,
on convertible notes - 1,005 - 2,011
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Adjusted net income for the period $17,081 $17,235 $32,514 $35,357
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Net income per share -
assuming full dilution $ 0.72 $ 0.62 $ 1.36 $ 1.18
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Percentage of dilution compared to
reported net income per share 1.4% 6.1% 2.2% 4.8%