EXHIBIT 11
HORACE MANN EDUCATORS CORPORATION
COMPUTATION OF NET INCOME PER SHARE
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
YEAR ENDED DECEMBER 31,
----------------------------------
1997 1996 1995
---- ---- ----
Basic - assumes no dilution:
Net income for the period $83,576 $64,639 $73,926
------- ------- -------
Weighted average number of common
shares outstanding during the period 45,825 46,958 50,077
------- ------- -------
Net income per share - basic $ 1.82 $ 1.38 $ 1.48
------- ------- -------
------- ------- -------
Diluted - assumes full dilution:
Net income for the period $83,576 $64,639 $73,926
Interest expense, net of tax,
on convertible notes - - 4,016
------- ------- -------
Adjusted net income for the period $83,576 $64,639 $77,942
------- ------- -------
Weighted average number of common
shares outstanding during the period 45,825 46,958 50,077
Weighted average number of common
equivalent shares to reflect the dilutive
effect of common stock equivalent securities:
Warrants 251 236 220
Stock options 416 378 252
Common stock units related to Deferred
Equity Compensation Plan for Directors 33 6 -
Weighted average number of common
equivalent shares to reflect the dilutive
effect of convertible notes - - 5,714
------- ------- -------
Total common and common equivalent
shares adjusted to calculate diluted
earnings per share 46,525 47,578 56,263
------- ------- -------
Net income per share - diluted $ 1.80 $ 1.36 $ 1.39
------- ------- -------
------- ------- -------
Percentage of dilution compared to
basic net income per share 1.1% 1.4% 6.1%