Exhibit 11
Horace Mann Educators Corporation
Computation of Net Income per Share
For the Three and Six Months Ended June 30, 1998 and 1997
(Amounts in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
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1998 1997 1998 1997
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Basic - assumes no dilution:
Net income for the period $ 15,648 $ 20,896 $ 38,107 $ 40,296
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Weighted average number of common
shares outstanding during the period 43,597 46,192 43,885 46,758
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Net income per share - basic $ 0.36 $ 0.45 $ 0.87 $ 0.86
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Diluted - assumes full dilution:
Net income for the period $ 15,648 $ 20,896 $ 38,107 $ 40,296
--------- --------- --------- ---------
Weighted average number of common
shares outstanding during the period 43,597 46,192 43,885 46,758
Weighted average number of common
equivalent shares to reflect the dilutive
effect of common stock equivalent securities:
Warrants 99 249 99 248
Stock options 483 426 484 404
Common stock units related to Deferred
Equity Compensation Plan for Directors 44 30 44 30
Common stock units related to Deferred
Compensation Plan for Employees 2 - 1 -
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Total common and common equivalent shares
adjusted to calculate diluted earnings per share 44,225 46,897 44,513 47,440
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Net income per share - diluted $ 0.36 $ 0.45 $ 0.86 $ 0.85
========= ========= ========= =========
Percentage of dilution compared to
basic net income per share 0.0% 0.0% 1.1% 1.2%