Exhibit 11
Horace Mann Educators Corporation
Computation of Net Income per Share
For the Years Ended December 31, 1998, 1997 and 1996
(Amounts in thousands, except per share data)
Year Ended December 31,
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1998 1997 1996
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Basic - assumes no dilution:
Net income for the period ...................... $85,312 $83,576 $64,639
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Weighted average number of common
shares outstanding during the period ........ 43,239 45,825 46,958
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Net income per share - basic ................... $ 1.97 $ 1.82 $ 1.38
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Diluted - assumes full dilution:
Net income for the period ...................... $85,312 $83,576 $64,639
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Weighted average number of common
shares outstanding during the period ........ 43,239 45,825 46,958
Weighted average number of common
equivalent shares to reflect the dilutive
effect of common stock equivalent securities:
Warrants ................................. 98 251 236
Stock options ............................ 451 416 378
Common stock units related to Deferred
Equity Compensation Plan for Directors 49 33 6
Common stock units related to Deferred
Equity Compensation Plan for Employees 1 -- --
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Total common and common equivalent
shares adjusted to calculate diluted
earnings per share .......................... 43,838 46,525 47,578
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Net income per share - diluted ................. $ 1.95 $ 1.80 $ 1.36
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Percentage of dilution compared to
basic net income per share .................. 1.0% 1.1% 1.4%