Exhibit 11
Horace Mann Educators Corporation
Computation of Net Income per Share
For the Three and Nine Months Ended September 30, 1996 and 1995
(Amounts in thousands, except per share data)
Three Months Ended Nine Months Ended
------------------- ------------------
September 30, September 30,
------------------- ------------------
1996 1995 1996 1995
--------- -------- -------- --------
Primary - reported:
Weighted average number of common shares
outstanding during the period 23,474 23,141 23,449 25,594
------- ------- ------- -------
Net income for the period $16,324 $19,157 $48,838 $52,503
------- ------- ------- -------
Net income per share - assuming no dilution $ 0.69 $ 0.83 $ 2.08 $ 2.05
======= ======= ======= =======
Primary:
Weighted average number of common shares
outstanding during the period 23,474 23,141 23,449 25,594
Weighted average number of common equivalent
shares to reflect the dilutive effect of
common stock equivalent securities:
Warrants 118 112 117 109
Stock options 307 224 291 171
Common stock units related
to Deferred Equity
Compensation Plan for Directors 2 - 1 -
------- ------- ------- -------
Total common and common equivalent shares 23,901 23,477 23,858 25,874
------- ------- ------- -------
Net income per share $ 0.68 $ 0.82 $ 2.05 $ 2.03
======= ======= ======= =======
Percentage of dilution compared to reported
net income per share 1.4% 1.2% 1.4% 1.0%
(Continued on next page)
Exhibit 11 (continued)
Horace Mann Educators Corporation
Computation of Net Income per Share
For the Three and Nine Months Ended September 30, 1996 and 1995
(Amounts in thousands, except per share data)
Three Months Ended Nine Months Ended
------------------- ------------------
September 30, September 30,
------------------- ------------------
1996 1995 1996 1995
---- ---- ---- ----
Primary - reported:
Weighted average number of common shares
outstanding during the period 23,474 23,141 23,449 25,594
------- ------- ------- -------
Net income for the period $16,324 $19,157 $48,838 $52,503
------- ------- ------- -------
Net income per share - assuming no dilution $ 0.69 $ 0.83 $ 2.08 $ 2.05
======= ======= ======= =======
Fully diluted:
Weighted average number of common shares
outstanding during the period 23,474 23,141 23,449 25,594
Weighted average number of common equivalent
shares to reflect the dilutive effect of
common stock equivalent securities:
Warrants 118 113 118 113
Stock options 307 248 303 248
Common stock units related
to Deferred Equity
Compensation Plan for Directors 2 - 1 -
Weighted average number of common equivalent
shares to reflect the dilutive effect of
convertible notes - 2,857 - 2,857
------- ------- ------- -------
Total common and common equivalent shares
adjusted to calculate fully diluted
earnings per share 23,901 26,359 23,871 28,812
------- ------- ------- -------
Net income for the period $16,324 $19,157 $48,838 $52,503
Interest expense, net of tax,
on convertible notes - 1,003 - 3,014
------- ------- ------- -------
Adjusted net income for the period $16,324 $20,160 $48,838 $55,517
------- ------- ------- -------
Net income per share -
assuming full dilution $ 0.68 $ 0.76 $ 2.05 $ 1.93
======= ======= ======= =======
Percentage of dilution compared to
reported net income per share 1.4% 8.4% 1.4% 5.9%