Exhibit 11
Horace Mann Educators Corporation
Computation of Net Income per Share
For the Three and Nine Months Ended September 30, 1999 and 1998
(Amounts in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
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1999 1998 1999 1998
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Basic - assumes no dilution:
Net income (loss) for the period $(5,458) $24,933 $22,015 $63,040
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Weighted average number of common
shares outstanding during the period 41,026 42,811 41,318 43,523
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Net income (loss) per share - basic $ (0.13) $ 0.58 $ 0.53 $ 1.45
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Diluted - assumes full dilution:
Net income (loss) for the period $(5,458) $24,933 $22,015 $63,040
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Weighted average number of common
shares outstanding during the period 41,026 42,811 41,318 43,523
Weighted average number of common
equivalent shares to reflect the dilutive
effect of common stock equivalent securities:
Warrants 98 98 96 99
Stock options 451 456 395 472
Common stock units related to Deferred
Equity Compensation Plan for Directors 66 46 66 46
Common stock units related to Deferred
Compensation Plan for Employees 6 2 6 1
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Total common and common equivalent shares
adjusted to calculate diluted earnings per share 41,647 43,413 41,881 44,141
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Net income (loss) per share - diluted $ (0.12) $ 0.57 $ 0.53 $ 1.43
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Percentage of dilution compared
to basic net income (loss) per share 7.7% 1.7% 0.0% 1.4%