EXHIBIT 11
HORACE MANN EDUCATORS CORPORATION
COMPUTATION OF NET INCOME PER SHARE
FOR THE YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
YEAR ENDED DECEMBER 31,
---------------------------
1996 1995 1994
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Primary - reported:
Weighted average number of common shares
outstanding during the period 23,479 25,039 28,958
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Net income for the period $64,639 $73,926 $62,855
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Net income per share - assuming no dilution $ 2.75 $ 2.95 $ 2.17
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Primary:
Weighted average number of common shares
outstanding during the period 23,479 25,039 28,958
Weighted average number of common equivalent
shares to reflect the dilutive effect of
common stock equivalent securities:
Warrants 118 110 110
Stock options 291 193 199
Common stock units related to Deferred
Equity Compensation Plan for Directors 3 -- --
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Total common and common equivalent shares 23,891 25,342 29,267
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Net income per share $ 2.71 $ 2.92 $ 2.15
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Percentage of dilution compared to reported
net income per share 1.5% 1.0% 0.9%
(Continued on next page)
EXHIBIT 11 (CONTINUED)
HORACE MANN EDUCATORS CORPORATION
COMPUTATION OF NET INCOME PER SHARE
FOR THE YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
YEAR ENDED DECEMBER 31,
---------------------------
1996 1995 1994
------- ------- -------
Primary - reported:
Weighted average number of common shares
outstanding during the period 23,479 25,039 28,958
------- ------- -------
Net income for the period $64,639 $73,926 $62,855
------- ------- -------
Net income per share - assuming no dilution $ 2.75 $ 2.95 $ 2.17
======= ======= =======
Fully diluted:
Weighted average number of common shares
outstanding during the period 23,479 25,039 28,958
Weighted average number of common equivalent
shares to reflect the dilutive effect of
common stock equivalent securities:
Warrants 122 116 110
Stock options 398 318 199
Common stock units related
to Deferred Equity
Compensation Plan for Directors 3 - -
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 24,002 28,330 32,124
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Net income for the period $64,639 $73,926 $62,855
Interest expense, net of tax,
on convertible notes - 4,016 3,979
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Adjusted net income for the period $64,639 $77,942 $66,834
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Net income per share -
assuming full dilution $ 2.69 $ 2.75 $ 2.08
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Percentage of dilution compared to
reported net income per share 2.2% 6.8% 4.1%