NEW YORK, April 27, 2017 /PRNewswire/
-- AllianceBernstein L.P. ("AB") and AllianceBernstein Holding
L.P. ("AB Holding") (NYSE: AB) today reported financial and
operating results for the quarter ended March 31, 2017.
"The year got off to a strong start, as global equity markets
rallied in the first quarter and fixed income momentum continued
around the world," said Peter S.
Kraus, Chairman and Chief Executive Officer. "Our equity
investment performance improved markedly, our total AUM increased
by 4% year-over-year, our total gross sales of $19.0 billion were up 23% - driven by multi-year
high Retail sales - and adjusted net revenues increased by nearly
6%. We also again demonstrated operating leverage, by producing a
55% incremental adjusted operating margin."
(US $ Thousands
except per Unit amounts)
|
1Q
2017
|
|
1Q
2016
|
|
1Q 2017 vs 1Q 2016
% Change
|
|
4Q
2016
|
|
1Q 2017 vs 4Q 2016
% Change
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP Financial
Measures
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
$
|
764,917
|
|
|
$
|
769,126
|
|
|
(0.5)%
|
|
|
$
|
786,256
|
|
|
(2.7%)
|
|
Operating
income
|
$
|
166,312
|
|
|
$
|
173,042
|
|
|
(3.9)%
|
|
|
$
|
222,239
|
|
|
(25.2%)
|
|
Operating
margin
|
19.6
|
%
|
|
23.2
|
%
|
|
(360 bps)
|
|
27.4
|
%
|
|
(780 bps)
|
AB Holding Diluted
EPU (1)
|
$
|
0.46
|
|
|
$
|
0.55
|
|
|
(16.4)%
|
|
|
$
|
0.77
|
|
|
(40.3%)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Financial
Measures (2)
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
$
|
623,772
|
|
|
$
|
590,066
|
|
|
5.7
|
%
|
|
$
|
661,969
|
|
|
(5.8%)
|
|
Operating
income
|
$
|
150,584
|
|
|
$
|
132,066
|
|
|
14.0
|
%
|
|
$
|
208,863
|
|
|
(27.9%)
|
|
Operating
margin
|
24.1
|
%
|
|
22.4
|
%
|
|
170 bps
|
|
31.6
|
%
|
|
(750 bps)
|
AB Holding Diluted
EPU (3)
|
$
|
0.46
|
|
|
$
|
0.39
|
|
|
17.9
|
%
|
|
$
|
0.67
|
|
|
(31.3%)
|
|
AB Holding cash
distribution per Unit
|
$
|
0.46
|
|
|
$
|
0.40
|
|
|
15.0
|
%
|
|
$
|
0.67
|
|
|
(31.3%)
|
|
|
|
|
|
|
|
|
|
|
|
(US $
Billions)
|
|
|
|
|
|
|
|
|
|
Assets Under
Management
|
|
|
|
|
|
|
|
|
|
Ending AUM
|
$
|
497.9
|
|
|
$
|
479.0
|
|
|
4.0
|
%
|
|
$
|
480.2
|
|
|
3.7
|
%
|
Average
AUM
|
$
|
491.2
|
|
|
$
|
465.4
|
|
|
5.5
|
%
|
|
$
|
482.9
|
|
|
1.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The GAAP AB Holding
Diluted EPU has been revised for 1Q16.
|
(2)
|
The adjusted
financial measures are all non-GAAP financial measures. See page 13
for reconciliations of GAAP Financial Results to Adjusted Financial
Results and pages 14-15 for notes describing the
adjustments.
|
(3)
|
The Adjusted AB
Holding Diluted EPU has been revised for 1Q16.
|
Kraus continued: "The work we've done over the past several
years to bolster our investment performance; broaden and diversify
our business through innovation in product development and
distribution; and strengthen our financial position are
increasingly paying off today. Our long-term track records in both
fixed income and equities are exceptional, and we feel well
positioned in the current environment. In our Institutions channel,
while overall client activity remains low, we're seeing more
traction with our newer, relevant offerings. One major consultant
recently upgraded our Global Concentrated and Global Core equities
services to their highest rating. And two of our largest pipeline
additions during the quarter were Commercial Real Estate Debt and
Customized Multi-Asset, with combined commitments of $480 million. In Retail, gross sales of
$13.5 billion were our highest since
the second quarter of 2013, driven by increases in every region,
and our net flows of $1.6 billion
rebounded strongly following two consecutive net outflow quarters.
Flow strength came both from flagship services like Global High
Yield, and newer offerings like our Discretionary Investment
Management (DIM) multi-asset funds in Taiwan and Muni Tax Aware SMA in the US. We've
also taken an industry-first step to attract flows to our active
equity US mutual funds. In March, a new series of AB US mutual
funds went effective with the SEC that collect management fees
competitive with ETFs and performance fees only if they outperform
benchmarks. By leveling the playing field on fees, we believe that
we can reengage investors based on our ability to generate
investment performance premiums over time. Private Wealth
Management is another area where we are proving we can engage our
client base through innovation. Our series of research-based
Targeted Services offerings brought in $560
million in commitments in the first quarter, our
second-highest raise so far and our highest for a quarter without a
new service launch. The retention rate for these services is very
high, as clients have embraced the new opportunities we're
providing. On the sell side, Bernstein continues to be a
differentiated and well-placed competitor in a challenged industry.
Broadening our global research presence has allowed us to capture
new opportunities today in Europe
as investors grow wary of high US equity valuations and uncertainty
in Asia. And early client
conversations about the implementation of MiFID II in Europe have been constructive. As clients cull
research providers, they're inclined to keep Bernstein's unique and
valuable offering, which could help us improve our rankings and
reap larger allocations."
Kraus concluded: "Finally, I'm very pleased that, in such a
difficult growth environment, we were able to achieve
year-over-year quarterly increases in every key adjusted operating
metric: revenues, operating income, margin and earnings and
distribution per unit. We're as committed as ever to growing our
business while keeping expenses in check, and I'm proud of the job
we're doing so far in 2017."
The firm's cash distribution per unit of $0.46 is payable on May
18, 2017, to holders of record of AB Holding Units at the
close of business on May 8, 2017.
Market Performance
US and global equity and fixed income markets were higher in the
first quarter. The S&P 500's total return was 6.1% in the first
quarter and the MSCI EAFE Index's total return was 7.4%. The
Bloomberg Barclays US Aggregate Index returned 0.8% during the
first quarter and the Bloomberg Barclays Global Aggregate ex US
Index's total return was 2.5%.
Assets Under Management ($ Billions)
Total assets under management as of March
31, 2017 were $497.9, up
$17.7 billion, or 3.7%, from
December 31, 2016, and up
$18.9 billion, or 4.0%, from
March 31, 2016.
|
Institutions
|
|
Retail
|
|
Private Wealth
Management
|
|
Total
|
Assets Under
Management 3/31/17
|
$244.9
|
|
$168.9
|
|
$84.1
|
|
$497.9
|
Net Flows for Three
Months Ended 3/31/17
|
$(1.9)
|
|
$1.6
|
|
$0.1
|
|
$(0.2)
|
Total net outflows were $0.2
billion in the first quarter, compared to net outflows of
$0.1 billion in the previous quarter,
and net inflows of $2.2 billion in
the prior year period.
Net outflows from the Institutions channel were $1.9 billion, compared to net inflows of
$1.8 billion in the fourth quarter of
2016. Institutions gross sales of $2.5
billion decreased 63% from the fourth quarter's $6.7 billion. The pipeline of awarded but
unfunded Institutional mandates increased sequentially from
$4.1 billion to $4.2 billion at March 31,
2017.
The Retail channel experienced first quarter 2017 net inflows of
$1.6 billion, compared to
$1.5 billion of net outflows in the
prior quarter. Retail gross sales of $13.5
billion increased 31% from the fourth quarter's $10.3 billion.
In the Private Wealth channel, net inflows of $0.1 billion compared to $0.4 billion of net outflows in the prior
quarter. Private Wealth gross sales of $3.0
billion increased 30% from the fourth quarter's $2.3 billion.
First Quarter Financial Results
We are presenting both earnings information derived in
accordance with accounting principles generally accepted in
the United States of America ("US
GAAP") and non-GAAP, adjusted earnings information in this release.
Management principally uses these non-GAAP financial measures in
evaluating performance because they present a clearer picture of
our operating performance, and allow management to see long-term
trends without the distortion caused by long-term incentive
compensation-related mark-to-market adjustments, real estate
consolidation charges/credits and other adjustment items.
Similarly, we believe that this non-GAAP earnings information helps
investors better understand the underlying trends in our results
and, accordingly, provides a valuable perspective for investors.
Please note, however, that these non-GAAP measures are provided in
addition to, and not as substitutes for, any measures derived in
accordance with US GAAP and they may not be comparable to non-GAAP
measures presented by other companies. Management uses both US GAAP
and non-GAAP measures in evaluating our financial performance. The
non-GAAP measures alone may pose limitations because they do not
include all of our revenues and expenses.
AB Holding is required to distribute all of its Available Cash
Flow, as defined in the AB Holding Partnership Agreement, to its
Unitholders (including the General Partner). Since the third
quarter of 2012, Available Cash Flow has been the adjusted diluted
net income per unit for the quarter multiplied by the number of
units outstanding at the end of the quarter. Management anticipates
that Available Cash Flow will continue to be based on adjusted
diluted net income per unit, unless management determines with
concurrence of the Board of Directors that one or more of the
non-GAAP adjustments that are made for adjusted net income should
not be made with respect to the Available Cash Flow
calculation.
Revision
During the third quarter of 2016, management determined that the
frequency with which we settle our U.S. inter-company payable
balances with foreign subsidiaries over the past several years
created deemed dividends under Section 956 of the U.S. Internal
Revenue Code of 1986, as amended ("Section 956"). In the past, we
funded our foreign subsidiaries as they required cash for their
operations rather than pre-fund them each quarter, thereby reducing
the inter-company balance to zero on a quarterly basis, as required
by Section 956. As a result, we have been understating our income
tax provision and income tax liability since 2010. We evaluated the
aggregate effects of this error in our income tax provision and
income tax liability to our previously issued financial statements
in accordance with SEC Staff Accounting Bulletins No. 99 and No.
108 and, based upon quantitative and qualitative factors, have
determined that the error was not material to our previously issued
financial statements. However, the cumulative effect of this error
would be material to our third quarter 2016 financial results if
recorded as an out-of-period adjustment in the third quarter of
2016. Accordingly, we have revised our previously issued financial
statements that are included in our First Quarter 2017 Form 10-Q
and this Earnings Release. See page 11 for a summary of the impact
of the revisions to net income attributable to AB Unitholders,
diluted net income per Holding Unit (GAAP basis) and adjusted
diluted net income per Holding Unit.
US GAAP Earnings
Net revenues of $765 million
decreased 0.5% compared to the first quarter of 2016 due to lower
investment gains and Bernstein Research revenues, partially offset
by higher investment advisory fees and distribution revenues.
Sequentially, net revenues decreased 3% due to lower
performance-based fees, Bernstein Research revenues, dividend and
interest income and other revenues, partially offset by higher
investment gains and base fees. Bernstein Research revenues
decreased 11% year-over-year and 12% sequentially, in both cases
predominantly the result of a decrease in client activity in the
US.
Operating expenses were $599
million for the first quarter of 2017, up 0.4%
year-over-year, due to higher total employee compensation benefits
and general and administrative ("G&A"), mostly offset by the
absence of non-cash real estate charges in the current quarter
compared to a $27.6 million non-cash
real estate net charge in the first quarter of 2016. Total employee
compensation and benefits expenses increased as a result of higher
incentive compensation and commissions, partially offset by lower
base compensation. Within G&A, occupancy expense, professional
fees and expenses related to our consolidated company-sponsored
investment funds were higher. Within promotion and servicing,
higher distribution related payments were mostly offset by lower
marketing expense, amortization of deferred sales commissions,
transfer fees, and trade execution expense.
On a sequential basis, operating expenses were up 6% due to
higher total employee compensation and benefits and G&A
expenses partially offset by lower promotion and servicing expense.
The increase in total employee compensation and benefits expenses
was due to higher incentive compensation, commissions and fringes,
partially offset by lower base compensation. Within G&A, the
increase was driven by higher professional fees and expenses
related to our consolidated company-sponsored investment funds.
Additionally, in the first quarter of 2017 there was a de minimus
non-cash real estate credit compared to a $6.9 million non-cash real estate credit in the
fourth quarter of 2016. Within promotion and servicing, lower
marketing and travel and entertainment expenses were partially
offset by higher distribution related payments.
Operating income of $166 million
for the first quarter of 2017 decreased 4% from $173 million for the first quarter of 2016 and
25% from $222 million in the fourth
quarter of 2016.
Diluted net income per Unit for the first quarter of 2017 was
$0.46 compared to a revised
$0.55 in the first quarter of 2016
(see note on page 4 and table on page 11) and $0.77 in the fourth quarter of 2016.
Non-GAAP Earnings
This section discusses our first quarter 2017 non-GAAP financial
results, as compared to the first quarter of 2016 and the fourth
quarter of 2016. The phrases "adjusted net revenues", "adjusted
operating expenses", "adjusted operating income", "adjusted
operating margin" and "adjusted diluted net income per Unit" are
used in the following earnings discussion to identify non-GAAP
information.
Adjusted net revenues of $624
million were up 6% compared to the first quarter of 2016,
due to higher investment advisory fees and investment gains in the
current quarter compared to investment losses in the prior year
period, partially offset by lower Bernstein Research revenues and
higher net distribution expenses. Sequentially, adjusted net
revenues were down 6%, driven by lower performance-based fees and
Bernstein Research revenues.
Adjusted operating expenses were $473
million for the first quarter, up 3% from the prior-year
period due to higher total employee compensation and benefits and
G&A expenses, partially offset by lower promotion and servicing
expense. Total employee compensation and benefits expenses
increased as the result of higher incentive compensation and
commissions, partially offset by lower base compensation. The
increase in G&A was driven by driven by higher foreign exchange
and professional fees. Within promotion and servicing, the decline
was driven by lower marketing and trade execution expenses, as well
as lower transfer fees.
Sequentially, adjusted operating expenses were up 4%, driven by
higher total employee compensation and benefits and G&A
expenses, partially offset by lower promotion and servicing
expense. The sequential increase in total employee compensation and
benefits expenses was driven by higher incentive compensation,
commissions and fringes, partially offset by lower base
compensation. Within G&A, the increase was driven by higher
professional fees and other miscellaneous expenses. The sequential
decrease in promotion and servicing was driven by lower marketing
and travel and entertainment expenses.
Adjusted operating income of $151
million increased 14% from $132
million for the first quarter of 2016, and the adjusted
operating margin increased 170 basis points to 24.1% from 22.4%. On
a sequential basis, adjusted operating income decreased 28% from
$209 million, and the adjusted
operating margin decreased 750 basis points from 31.6%.
Adjusted diluted net income per Unit was $0.46, up from a revised $0.39 in the first quarter of 2016 and down from
$0.67 in the fourth quarter of
2016.
Headcount
As of March 31, 2017, we had 3,436
employees, compared to 3,450 employees as of March 31, 2016 and 3,438 employees as of
December 31, 2016.
Unit Repurchases
During the three months ended March 31,
2017 and 2016, we purchased 1.3 million and 1.9 million AB
Holding Units for $31.0 million and
$39.7 million, respectively (on a
trade date basis). These amounts reflect open-market purchases of
1.2 million and 1.8 million AB Holding Units for $27.8 million and $38.1
million, respectively, with the remainder relating to
purchases of AB Holding Units from employees to allow them to
fulfill statutory tax withholding requirements at the time of
delivery of long-term incentive compensation awards. Purchases of
AB Holding Units reflected on the condensed consolidated statements
of cash flows are net of AB Holding Unit purchases by employees as
part of a distribution reinvestment election.
First Quarter 2017 Earnings Conference Call
Information
Management will review first quarter 2017 financial and
operating results during a conference call beginning at
8:00 a.m. (ET) on Thursday,
April 27, 2017. The conference call will be hosted by Peter S. Kraus, Chairman and Chief Executive
Officer, and John C. Weisenseel,
Chief Financial Officer.
Parties may access the conference call by either webcast or
telephone:
- To listen by webcast, please visit AB's Investor Relations
website at
http://abglobal.com/corporate/investor-relations/home.htm at
least 15 minutes prior to the call to download and install any
necessary audio software.
- To listen by telephone, please dial (866) 556-2265 in the U.S.
or (973) 935-8521 outside the U.S. 10 minutes before the scheduled
start time. The conference ID# is 4071366.
The presentation management will review during the conference
call will be available on AB's Investor Relations website shortly
after the release of first quarter 2017 financial and
operating results on April 27, 2017.
AB will be providing live updates via Twitter during the
conference call. To access the tweets, follow AB on Twitter:
@AB_insights. Also, in the future, AB may provide public
disclosures to investors via Twitter and other appropriate
internet-based social media.
A replay of the webcast will be made available beginning
approximately one hour after the conclusion of the conference call
and will be available on AB's website for one week. An audio
replay of the conference call will also be available for one week.
To access the audio replay, please call (855) 859-2056 in the
US, or (404) 537-3406 outside the US, and provide the
conference ID #: 4071366.
Cautions Regarding Forward-Looking Statements
Certain statements provided by management in this news release
are "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to risks, uncertainties and other factors
that could cause actual results to differ materially from future
results expressed or implied by such forward-looking statements.
The most significant of these factors include, but are not limited
to, the following: the performance of financial markets, the
investment performance of sponsored investment products and
separately-managed accounts, general economic conditions, industry
trends, future acquisitions, competitive conditions, and current
and proposed government regulations, including changes in tax
regulations and rates and the manner in which the earnings of
publicly-traded partnerships are taxed. AB cautions readers to
carefully consider such factors. Further, such forward-looking
statements speak only as of the date on which such statements are
made; AB undertakes no obligation to update any forward-looking
statements to reflect events or circumstances after the date of
such statements. For further information regarding these
forward-looking statements and the factors that could cause actual
results to differ, see "Risk Factors" and "Cautions Regarding
Forward-Looking Statements" in AB's Form 10-K for the year ended
December 31, 2016 and Form 10-Q for
the quarter ended March 31, 2017. Any
or all of the forward-looking statements made in this news release,
Form 10-K, Forms 10-Q, other documents AB files with or furnishes
to the SEC, and any other public statements issued by AB, may turn
out to be wrong. It is important to remember that other factors
besides those listed in "Risk Factors" and "Cautions Regarding
Forward-Looking Statements", and those listed below, could also
adversely affect AB's financial condition, results of operations
and business prospects.
The forward-looking statements referred to in the preceding
paragraph include statements regarding:
- The pipeline of new institutional mandates not yet
funded: Before they are funded, institutional mandates do
not represent legally binding commitments to fund and, accordingly,
the possibility exists that not all mandates will be funded in the
amounts and at the times currently anticipated.
- The possibility that AB will engage in open market
purchases of Holding Units to help fund anticipated obligations
under our incentive compensation award program: The number
of Holding Units AB may decide to buy in future periods, if any, to
help fund incentive compensation awards is dependent upon various
factors, some of which are beyond our control, including the
fluctuation in the price of a Holding Unit and the availability of
cash to make these purchases.
- The fluctuation of our effective tax rate: Our effective
tax rate fluctuates based on the mix of our earnings across our tax
filing group, which includes our U.S. partnership, our U.S.
corporate subsidiaries and our corporate subsidiaries operating in
various non-U.S. jurisdictions, and the differences between the tax
rates in the U.S and the other jurisdictions where we conduct
business.
Qualified Tax Notice
This announcement is intended to be a qualified notice under
Treasury Regulation §1.1446-4(b). Please note that 100% of AB
Holding's distributions to foreign investors is attributable to
income that is effectively connected with a United States trade or business. Accordingly,
AB Holding's distributions to foreign investors are subject to
federal income tax withholding at the highest applicable tax rate,
currently 39.6%.
About AB
AB is a leading global investment management firm that offers
high-quality research and diversified investment services to
institutional investors, individuals and private wealth clients in
major world markets.
As of March 31, 2017, AB Holding
owned approximately 35.9% of the issued and outstanding AB Units
and AXA, a worldwide leader in financial protection, owned an
approximate 63.8% economic interest in AB.
Additional information about AB may be found on our website,
www.abglobal.com.
AB (The Operating
Partnership)
|
|
|
|
|
|
|
|
|
|
US GAAP
Consolidated Statement of Income (Unaudited)
|
|
|
|
|
|
|
|
|
|
(US $
Thousands)
|
1Q
2017
|
|
1Q
2016
|
|
1Q 2017 vs.
1Q 2016 %
Change
|
|
4Q
2016
|
|
1Q 2017 vs.
4Q 2016 %
Change
|
|
|
|
|
|
|
|
|
|
|
GAAP
revenues:
|
|
|
|
|
|
|
|
|
|
Base fees
|
$
|
492,176
|
|
|
$
|
450,791
|
|
|
9.2
|
%
|
|
$
|
486,469
|
|
|
1.2
|
%
|
Performance
fees
|
6,114
|
|
|
622
|
|
|
883.0
|
%
|
|
29,147
|
|
|
(79.0%)
|
|
Bernstein research
services
|
112,741
|
|
|
126,465
|
|
|
(10.9%)
|
|
|
127,472
|
|
|
(11.6%)
|
|
Distribution
revenues
|
96,554
|
|
|
92,692
|
|
|
4.2
|
%
|
|
96,766
|
|
|
(0.2%)
|
|
Dividends and
interest
|
14,056
|
|
|
10,073
|
|
|
39.5
|
%
|
|
16,812
|
|
|
(16.4%)
|
|
Investments gains
(losses)
|
25,201
|
|
|
65,587
|
|
|
(61.6%)
|
|
|
7,883
|
|
|
219.7
|
%
|
Other
revenues
|
22,365
|
|
|
24,971
|
|
|
(10.4%)
|
|
|
24,815
|
|
|
(9.9%)
|
|
Total
revenues
|
769,207
|
|
|
771,201
|
|
|
(0.3%)
|
|
|
789,364
|
|
|
(2.6%)
|
|
Less: interest
expense
|
4,290
|
|
|
2,075
|
|
|
106.7
|
%
|
|
3,108
|
|
|
38.0
|
%
|
Total net
revenues
|
764,917
|
|
|
769,126
|
|
|
(0.5%)
|
|
|
786,256
|
|
|
(2.7%)
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses:
|
|
|
|
|
|
|
|
|
|
Employee compensation
and benefits
|
321,748
|
|
|
302,011
|
|
|
6.5
|
%
|
|
301,723
|
|
|
6.6
|
%
|
Promotion and
servicing
|
|
|
|
|
|
|
|
|
|
Distribution-related payments
|
96,367
|
|
|
87,127
|
|
|
10.6
|
%
|
|
95,419
|
|
|
1.0
|
%
|
Amortization
of deferred sales commissions
|
9,079
|
|
|
11,242
|
|
|
(19.2%)
|
|
|
9,460
|
|
|
(4.0%)
|
|
Trade
execution, marketing, T&E and other
|
48,214
|
|
|
54,201
|
|
|
(11.0%)
|
|
|
51,776
|
|
|
(6.9%)
|
|
General and
administrative
|
|
|
|
|
|
|
|
|
|
General
& administrative
|
114,221
|
|
|
105,923
|
|
|
7.8
|
%
|
|
103,964
|
|
|
9.9
|
%
|
Real
estate (credits) charges
|
(2)
|
|
|
27,586
|
|
|
n/m
|
|
(6,942)
|
|
|
(100.0%)
|
|
Contingent payment
arrangements
|
177
|
|
|
353
|
|
|
(49.9%)
|
|
|
178
|
|
|
(0.6%)
|
|
Interest on
borrowings
|
1,868
|
|
|
1,232
|
|
|
51.6
|
%
|
|
1,472
|
|
|
26.9
|
%
|
Amortization of
intangible assets
|
6,933
|
|
|
6,409
|
|
|
8.2
|
%
|
|
6,967
|
|
|
(0.5%)
|
|
Total operating
expenses
|
598,605
|
|
|
596,084
|
|
|
0.4
|
%
|
|
564,017
|
|
|
6.1
|
%
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
166,312
|
|
|
173,042
|
|
|
(3.9%)
|
|
|
222,239
|
|
|
(25.2%)
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
(1)
|
10,057
|
|
|
12,506
|
|
|
(19.6%)
|
|
|
(8,996)
|
|
|
n/m
|
|
|
|
|
|
|
|
|
|
|
Net income
(1)
|
156,255
|
|
|
160,536
|
|
|
(2.7%)
|
|
|
231,235
|
|
|
(32.4%)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) of
consolidated entities attributable to non-controlling
interests
|
16,318
|
|
|
(5,748)
|
|
|
n/m
|
|
6,697
|
|
|
143.7
|
%
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to AB Unitholders (1)
|
$
|
139,937
|
|
|
$
|
166,284
|
|
|
(15.8%)
|
|
|
$
|
224,538
|
|
|
(37.7%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The
income taxes, net income and net income attributable to AB
Unitholders have been revised for 1Q16.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AB Holding L.P.
(The Publicly-Traded Partnership)
|
|
|
|
|
|
|
|
|
|
SUMMARY STATEMENTS
OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(US $
Thousands)
|
1Q
2017
|
|
Revised
1Q 2016
|
|
1Q 2017 vs.
1Q 2016 % Change
|
|
4Q
2016
|
|
1Q 2017 vs.
4Q 2016 %
Change
|
|
|
|
|
|
|
|
|
|
|
Equity in Net Income
Attributable to AB Unitholders (2)
|
$
|
49,666
|
|
|
$
|
60,177
|
|
|
(17.5%)
|
|
|
$
|
78,630
|
|
|
(36.8%)
|
|
Income
Taxes
|
5,756
|
|
|
5,585
|
|
|
3.1
|
%
|
|
5,966
|
|
|
(3.5%)
|
|
Net Income
(2)
|
43,910
|
|
|
54,592
|
|
|
(19.6%)
|
|
|
72,664
|
|
|
(39.6%)
|
|
|
|
|
|
|
|
|
|
|
|
Additional Equity in
Earnings of Operating Partnership (1) (2)
|
176
|
|
|
153
|
|
|
15.0
|
%
|
|
299
|
|
|
(41.1%)
|
|
Net Income - Diluted
(2)
|
$
|
44,086
|
|
|
$
|
54,745
|
|
|
(19.5%)
|
|
|
$
|
72,963
|
|
|
(39.6%)
|
|
Diluted Net Income
per Unit (2)
|
$
|
0.46
|
|
|
$
|
0.55
|
|
|
(16.4%)
|
|
|
$
|
0.77
|
|
|
(40.3%)
|
|
Distribution per
Unit
|
$
|
0.46
|
|
|
$
|
0.40
|
|
|
15.0
|
%
|
|
$
|
0.67
|
|
|
(31.3%)
|
|
|
|
|
|
|
|
|
|
|
|
(1) To reflect higher
ownership in the Operating Partnership resulting from application
of the treasury stock method to outstanding options.
|
(2) The equity in net
income attributable to AB Unitholders, net income, additional
equity in earnings of operating partnership, net income-diluted and
diluted net income per unit have been revised for 1Q16.
|
Units
Outstanding
|
1Q
2017
|
|
1Q
2016
|
|
1Q 2017 vs.
1Q 2016 %
Change
|
|
4Q
2016
|
|
1Q 2017 vs.
4Q 2016 %
Change
|
AB L.P.
|
|
|
|
|
|
|
|
|
|
Period-end
|
268,714,548
|
|
|
270,638,334
|
|
|
(0.7%)
|
|
|
268,893,534
|
|
|
(0.1%)
|
|
Weighted average -
basic
|
268,479,768
|
|
|
271,853,243
|
|
|
(1.2%)
|
|
|
266,665,011
|
|
|
0.7
|
%
|
Weighted average -
diluted
|
269,013,395
|
|
|
272,253,490
|
|
|
(1.2%)
|
|
|
267,221,192
|
|
|
0.7
|
%
|
AB Holding
L.P.
|
|
|
|
|
|
|
|
|
|
Period-end
|
96,473,204
|
|
|
98,381,192
|
|
|
(1.9%)
|
|
|
96,652,190
|
|
|
(0.2%)
|
|
Weighted average -
basic
|
96,238,424
|
|
|
99,595,925
|
|
|
(3.4%)
|
|
|
94,423,093
|
|
|
1.9
|
%
|
Weighted average -
diluted
|
96,772,051
|
|
|
99,996,172
|
|
|
(3.2%)
|
|
|
94,979,274
|
|
|
1.9
|
%
|
Revisions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q16
|
|
1Q16
|
|
4Q15
|
|
3Q15
|
|
2Q15
|
|
1Q15
|
AB (The Operating
Partnership)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to AB Unitholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Previously
reported
|
|
$
|
127,144
|
|
|
$
|
168,926
|
|
|
$
|
161,063
|
|
|
$
|
134,976
|
|
|
$
|
149,094
|
|
|
$
|
141,469
|
|
|
Adjustment
|
|
(2,643)
|
|
|
(2,642)
|
|
|
(1,669)
|
|
|
(1,668)
|
|
|
(1,669)
|
|
|
(1,669)
|
|
|
Revised
|
|
$
|
124,501
|
|
|
$
|
166,284
|
|
|
$
|
159,394
|
|
|
$
|
133,308
|
|
|
$
|
147,425
|
|
|
$
|
139,800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AB Holding L.P.
(The Publicly-Traded Partnership)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per Holding Unit, GAAP basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Previously
reported
|
|
$
|
0.41
|
|
|
$
|
0.56
|
|
|
$
|
0.53
|
|
|
$
|
0.43
|
|
|
$
|
0.48
|
|
|
$
|
0.45
|
|
|
Adjustment
|
|
(0.01)
|
|
|
(0.01)
|
|
|
(0.01)
|
|
|
(0.01)
|
|
|
(0.01)
|
|
|
—
|
|
|
Revised
|
|
$
|
0.40
|
|
|
$
|
0.55
|
|
|
$
|
0.52
|
|
|
$
|
0.42
|
|
|
$
|
0.47
|
|
|
$
|
0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted net
income per Holding Unit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Previously
reported
|
|
$
|
0.40
|
|
|
$
|
0.40
|
|
|
$
|
0.50
|
|
|
$
|
0.43
|
|
|
$
|
0.48
|
|
|
$
|
0.45
|
|
|
Adjustment
|
|
(0.01)
|
|
|
(0.01)
|
|
|
—
|
|
|
—
|
|
|
(0.01)
|
|
|
(0.01)
|
|
|
Revised
|
|
$
|
0.39
|
|
|
$
|
0.39
|
|
|
$
|
0.50
|
|
|
$
|
0.43
|
|
|
$
|
0.47
|
|
|
$
|
0.44
|
|
|
AllianceBernstein
L.P.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS UNDER
MANAGEMENT | March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($
billions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending and
Average
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3/31/17
|
|
3/31/16
|
|
Ending Assets Under
Management
|
|
|
|
|
|
|
|
|
|
|
|
$497.9
|
|
|
$479.0
|
|
Average Assets Under
Management
|
|
|
|
|
|
|
|
|
|
|
|
$491.2
|
|
|
$465.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-Month
Changes By Distribution Channel
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Institutions
|
|
Retail
|
|
Private Wealth
Management
|
|
Total
|
|
Beginning of
Period
|
|
|
|
|
|
|
|
|
|
$
|
239.3
|
|
|
$
|
160.2
|
|
|
$
|
80.7
|
|
|
$
|
480.2
|
|
Sales/New
accounts
|
|
|
|
|
|
|
|
|
|
2.5
|
|
|
13.5
|
|
|
3.0
|
|
|
19.0
|
|
Redemption/Terminations
|
|
|
|
|
|
|
|
|
|
|
(5.4)
|
|
|
(10.2)
|
|
|
(2.8)
|
|
|
(18.4)
|
|
Net Cash
Flows
|
|
|
|
|
|
|
|
|
|
|
1.0
|
|
|
(1.7)
|
|
|
(0.1)
|
|
|
(0.8)
|
|
Net
Flows
|
|
|
|
|
|
|
|
|
|
|
(1.9)
|
|
|
1.6
|
|
|
0.1
|
|
|
(0.2)
|
|
Investment
Performance
|
|
|
|
|
|
|
|
|
|
|
7.5
|
|
|
7.1
|
|
|
3.3
|
|
|
17.9
|
|
End of
Period
|
|
|
|
|
|
|
|
|
|
|
$
|
244.9
|
|
|
$
|
168.9
|
|
|
$
|
84.1
|
|
|
$
|
497.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-Month
Changes By Investment Service
|
|
|
|
|
|
|
|
|
|
|
Equity
Active
|
|
Equity
Passive (1)
|
|
Fixed
Income
Taxable
|
|
Fixed
Income
Tax-
Exempt
|
|
Fixed
Income
Passive (1)
|
|
Other
(2)
|
|
Total
|
|
Beginning of
Period
|
$
|
111.9
|
|
|
$
|
48.1
|
|
|
$
|
220.9
|
|
|
$
|
36.9
|
|
|
$
|
11.1
|
|
|
$
|
51.3
|
|
|
$
|
480.2
|
|
Sales/New
accounts
|
4.9
|
|
|
0.4
|
|
|
11.2
|
|
|
2.0
|
|
|
—
|
|
|
0.5
|
|
|
19.0
|
|
Redemption/Terminations
|
(4.8)
|
|
|
(1.0)
|
|
|
(9.9)
|
|
|
(1.7)
|
|
|
(0.1)
|
|
|
(0.9)
|
|
|
(18.4)
|
|
Net Cash
Flows
|
(0.8)
|
|
|
(1.4)
|
|
|
1.4
|
|
|
—
|
|
|
(0.1)
|
|
|
0.1
|
|
|
(0.8)
|
|
Net
Flows
|
(0.7)
|
|
|
(2.0)
|
|
|
2.7
|
|
|
0.3
|
|
|
(0.2)
|
|
|
(0.3)
|
|
|
(0.2)
|
|
Investment
Performance
|
7.6
|
|
|
2.8
|
|
|
4.5
|
|
|
0.6
|
|
|
0.2
|
|
|
2.2
|
|
|
17.9
|
|
End of
Period
|
$
|
118.8
|
|
|
$
|
48.9
|
|
|
$
|
228.1
|
|
|
$
|
37.8
|
|
|
$
|
11.1
|
|
|
$
|
53.2
|
|
|
$
|
497.9
|
(1)
Includes index and enhanced index services.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
Includes certain multi-asset solutions and services and certain
alternative investments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By Client
Domicile
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Institutions
|
|
Retail
|
|
Private
Wealth
|
|
Total
|
|
U.S.
Clients
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
141.4
|
|
|
$
|
99.0
|
|
|
$
|
82.1
|
|
|
$
|
322.5
|
|
Non-U.S.
Clients
|
|
|
|
|
|
|
|
|
|
|
|
|
103.5
|
|
|
69.9
|
|
|
2.0
|
|
|
175.4
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
244.9
|
|
|
$
|
168.9
|
|
|
$
|
84.1
|
|
|
$
|
497.9
|
AB
L.P.
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
GAAP FINANCIAL RESULTS TO ADJUSTED FINANCIAL RESULTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
US $ Thousands,
unaudited
|
|
3/31/2017
|
|
12/31/2016
|
|
9/30/2016
|
|
6/30/2016
|
|
3/31/2016
|
|
12/31/2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues, GAAP
basis
|
|
$
|
764,917
|
|
|
$
|
786,256
|
|
|
$
|
747,591
|
|
|
$
|
725,806
|
|
|
$
|
769,126
|
|
|
$
|
726,726
|
|
|
|
Exclude:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term incentive compensation-related investment (gains)
losses
|
(2,979)
|
|
|
846
|
|
|
(2,556)
|
|
|
(791)
|
|
|
1,326
|
|
|
(583)
|
|
|
|
Long-term incentive compensation-related dividends and
interest
|
(158)
|
|
|
(1,212)
|
|
|
(142)
|
|
|
(142)
|
|
|
(151)
|
|
|
(1,521)
|
|
|
|
Distribution-related payments
|
(96,367)
|
|
|
(95,419)
|
|
|
(95,844)
|
|
|
(93,217)
|
|
|
(87,127)
|
|
|
(93,379)
|
|
|
|
Amortization of deferred sales commissions
|
(9,079)
|
|
|
(9,460)
|
|
|
(9,787)
|
|
|
(10,577)
|
|
|
(11,242)
|
|
|
(11,673)
|
|
|
|
Pass-through fees & expenses
|
(10,407)
|
|
|
(10,682)
|
|
|
(9,768)
|
|
|
(11,708)
|
|
|
(11,651)
|
|
|
(11,639)
|
|
|
|
Gain on
sale of investment carried at cost
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(75,273)
|
|
|
—
|
|
|
|
Impact
of consolidated company-sponsored investment funds
|
(22,155)
|
|
|
(8,360)
|
|
|
(16,114)
|
|
|
(5,472)
|
|
|
5,058
|
|
|
(1,560)
|
|
|
Adjusted Net
Revenues
|
|
$
|
623,772
|
|
|
$
|
661,969
|
|
|
$
|
613,380
|
|
|
$
|
603,899
|
|
|
$
|
590,066
|
|
|
$
|
606,371
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income,
GAAP basis
|
|
$
|
166,312
|
|
|
$
|
222,239
|
|
|
$
|
185,309
|
|
|
$
|
142,575
|
|
|
$
|
173,042
|
|
|
$
|
170,913
|
|
|
|
Exclude:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term incentive compensation-related items
|
68
|
|
|
(252)
|
|
|
363
|
|
|
(354)
|
|
|
963
|
|
|
(238)
|
|
|
|
Gain on
sale of investment carried at cost
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(75,273)
|
|
|
—
|
|
|
|
Real
estate (credits) charges
|
(2)
|
|
|
(6,941)
|
|
|
(140)
|
|
|
(2,801)
|
|
|
27,586
|
|
|
(221)
|
|
|
|
Acquisition-related expenses
|
524
|
|
|
514
|
|
|
303
|
|
|
239
|
|
|
—
|
|
|
—
|
|
|
|
Contingent payment arrangements
|
—
|
|
|
—
|
|
|
(21,483)
|
|
|
—
|
|
|
—
|
|
|
(7,212)
|
|
|
|
Sub-total of non-GAAP
adjustments
|
590
|
|
|
(6,679)
|
|
|
(20,957)
|
|
|
(2,916)
|
|
|
(46,724)
|
|
|
(7,671)
|
|
|
|
Less:
Net (loss) income of consolidated entities attributable to
non-controlling interests
|
16,318
|
|
|
6,697
|
|
|
15,696
|
|
|
4,843
|
|
|
(5,748)
|
|
|
1,496
|
|
|
Adjusted Operating
Income
|
|
$
|
150,584
|
|
|
$
|
208,863
|
|
|
$
|
148,656
|
|
|
$
|
134,816
|
|
|
$
|
132,066
|
|
|
$
|
161,746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Margin,
GAAP basis excl. non-controlling interests
|
19.6
|
%
|
|
27.4
|
%
|
|
22.7
|
%
|
|
19.0
|
%
|
|
23.2
|
%
|
|
23.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Margin
|
24.1
|
%
|
|
31.6
|
%
|
|
24.2
|
%
|
|
22.3
|
%
|
|
22.4
|
%
|
|
26.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AB Holding
L.P.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
GAAP EPU TO ADJUSTED EPU
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
$ Thousands except
per Unit amounts, unaudited
|
3/31/2017
|
|
12/31/2016
|
|
9/30/2016
|
|
6/30/2016
|
|
3/31/2016
|
|
12/31/2015
|
|
Net Income -
Diluted, GAAP basis
|
$
|
44,086
|
|
|
$
|
72,963
|
|
|
$
|
50,479
|
|
|
$
|
39,261
|
|
|
$
|
54,745
|
|
|
$
|
51,394
|
|
|
Impact on net income
of AB non-GAAP adjustments
|
197
|
|
|
(9,761)
|
|
|
(6,953)
|
|
|
(949)
|
|
|
(15,686)
|
|
|
(2,578)
|
|
|
Adjusted Net
Income - Diluted
|
$
|
44,283
|
|
|
$
|
63,202
|
|
|
$
|
43,526
|
|
|
$
|
38,312
|
|
|
$
|
39,059
|
|
|
$
|
48,816
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Net Income
per Holding Unit, GAAP basis
|
$
|
0.46
|
|
|
$
|
0.77
|
|
|
$
|
0.52
|
|
|
$
|
0.40
|
|
|
$
|
0.55
|
|
|
$
|
0.52
|
|
|
Impact of AB non-GAAP
adjustments
|
—
|
|
|
(0.10)
|
|
|
(0.07)
|
|
|
(0.01)
|
|
|
(0.16)
|
|
|
(0.02)
|
|
|
Adjusted Diluted
Net Income per Holding Unit
|
$
|
0.46
|
|
|
$
|
0.67
|
|
|
$
|
0.45
|
|
|
$
|
0.39
|
|
|
$
|
0.39
|
|
|
$
|
0.50
|
|
AB
Notes to Consolidated Statements of Income and
Supplemental Information
(Unaudited)
Adjusted Net Revenues
Adjusted net revenues exclude investment gains and losses and
dividends and interest on employee long-term incentive
compensation-related investments. In addition, adjusted net
revenues offset distribution-related payments to third parties as
well as amortization of deferred sales commissions against
distribution revenues. We believe offsetting net revenues by
distribution-related payments is useful for our investors and other
users of our financial statements because such presentation
appropriately reflects the nature of these costs as pass-through
payments to third parties who perform functions on behalf of our
sponsored mutual funds and/or shareholders of these funds. We
offset amortization of deferred sales commissions against net
revenues because such costs, over time, essentially offset our
distribution revenues. We also exclude additional pass-through
expenses we incur (primarily through our transfer agency) that are
reimbursed and recorded as fees in revenues. These fees do not
affect operating income, but they do affect our operating margin.
As such, we exclude these fees from adjusted net revenues.
We adjust for the revenue impact of consolidating
company-sponsored investment funds by eliminating the consolidated
company-sponsored investment funds' revenues and including AB's
fees from such consolidated company-sponsored investment funds and
AB's investment gains and losses on its investments in such
consolidated company-sponsored investment funds that were
eliminated in consolidation. In addition, in the first quarter of
2016 we excluded a realized gain of $75.3
million resulting from the liquidation of an investment in
Jasper Wireless Technologies, Inc. ("Jasper"), which was acquired
by Cisco Systems, Inc., because it was not part of our core
operating results.
Adjusted Operating Income
Adjusted operating income represents operating income on a US
GAAP basis excluding (1) the impact on net revenues and
compensation expense of the investment gains and losses (as well as
the dividends and interest) associated with employee long-term
incentive compensation-related investments, (2) the gain on the
sale of our investment in Jasper, (3) real estate charges
(credits), (4) acquisition-related expenses, (5) adjustments to
contingent payment arrangements, and (6) the impact of consolidated
company-sponsored investment funds.
Prior to 2009, a significant portion of employee compensation
was in the form of employee long-term incentive compensation awards
that were notionally invested in AB investment services and
generally vested over a period of four years. AB economically
hedged the exposure to market movements by purchasing and holding
these investments on its balance sheet. All such investments had
vested as of year-end 2012 and the investments have been
distributed to the participants, except for those investments with
respect to which the participant elected a long-term deferral.
Fluctuation in the value of these investments is recorded within
investment gains and losses on the income statement and also
impacts compensation expense. Management believes it is useful to
reflect the offset achieved from economically hedging the market
exposure of these investments in the calculation of adjusted
operating income and adjusted operating margin. The non-GAAP
measures exclude gains and losses and dividends and interest on
employee long-term incentive compensation-related investments
included in revenues and compensation expense.
A realized gain on the liquidation of our Jasper investment has
been excluded due to its non-recurring nature and because it is not
part of our core operating results.
Real estate charges (credits) have been excluded because they
are not considered part of our core operating results when
comparing financial results from period to period and to industry
peers.
Acquisition-related expenses have been excluded because they are
not considered part of our core operating results when comparing
financial results from period to period and to industry peers.
The recording of changes in estimates of the contingent
consideration payable with respect to contingent payment
arrangements associated with our acquisitions are not considered
part of our core operating results and, accordingly, have been
excluded.
We adjusted for the operating income impact of consolidating
certain company-sponsored investment funds by eliminating the
consolidated company-sponsored investment funds' revenues and
expenses and including AB's revenues and expenses that were
eliminated in consolidation. We also excluded the limited partner
interests we do not own.
Adjusted Operating Margin
Adjusted operating margin allows us to monitor our financial
performance and efficiency from period to period without the
volatility noted above in our discussion of adjusted operating
income and to compare our performance to industry peers on a
basis that better reflects our performance in our core business.
Adjusted operating margin is derived by dividing adjusted operating
income by adjusted net revenues.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/alliancebernstein-holding-lp-announces-first-quarter-results-300447086.html
SOURCE AB