4 unchanged sentences
Results of Operations
−Removed: Three Months Ended March 31,
+Added: Three Months Ended June 30,
+Added: Six Months Ended June 30,
(in thousands, except per unit amounts)
7 unchanged sentences
Distributions reflect the impact of AB’s non-GAAP adjustments.
−Removed: AB Holding net income for the three months ended March 31, 2020 increased $15.8 million due to higher net income attributable to AB Unitholders and a slightly higher weighted average equity ownership interest.
+Added: AB Holding net income for the three and six months ended June 30, 2020 increased $4.7 million and $20.5 million , respectively, due to higher net income attributable to AB Unitholders and a slightly higher weighted average equity ownership interest.
AB Holding’s partnership gross income is derived from its interest in AB.
1 unchanged sentence
investment advisory fees, research payments and brokerage commissions) by AB Holding’s ownership interest in AB, multiplied by the 3.5% tax rate.
−Removed: AB Holding’s effective tax rate was 10.9% in the first quarter of 2020 compared to 11.8% during the first quarter of 2019 .
+Added: AB Holding’s effective tax rate was 9.9% during the three months ended June 30, 2020 , compared to 11.4% during the three months ended June 30, 2019 .
+Added: AB Holding's effective tax rate during the six months ended June 30, 2020 was 10.5% compared to 11.6% during the six months ended June 30, 2019 .
See Note 7 to the condensed financial statements in Item 1 for the calculation of income tax expense.
10 unchanged sentences
The impact of these adjustments on AB Holding’s net income and diluted net income per AB Holding Unit is as follows:
−Removed: Three Months Ended March 31,
+Added: Three Months Ended June 30,
+Added: Six Months Ended June 30,
(in thousands, except per Unit amounts)
AB non-GAAP adjustments, before taxes
−Removed: AB income tax (expense) benefit on non-GAAP adjustments
+Added: AB income tax benefit (expense) on non-GAAP adjustments
AB non-GAAP adjustments, after taxes
14 unchanged sentences
Capital Resources and Liquidity
−Removed: During the three months ended March 31, 2020 , net cash provided by operating activities was $83.0 million , compared to $59.9 million during the corresponding 2019 period.
+Added: During the six months ended June 30, 2020 , net cash provided by operating activities was $144.6 million , compared to $108.7 million during the corresponding 2019 period.
The increase primarily resulted from higher cash distributions received from AB of $38.6 million .
−Removed: During the three months ended March 31, 2020 , net cash used in investing activities was $0.1 million , compared to $7.4 million during the corresponding 2019 period.
+Added: During the six months ended June 30, 2020 , net cash used in investing activities was $0.1 million , compared to $9.0 million during the corresponding 2019 period.
The activity in both periods reflects the investments in AB with proceeds from exercises of compensatory options to buy AB Holding Units.
−Removed: During the three months ended March 31, 2020 , net cash used in financing activities was $82.9 million , compared to $52.5 million during the corresponding 2019 period.
+Added: During the six months ended June 30, 2020 , net cash used in financing activities was $144.4 million , compared to $99.7 million during the corresponding 2019 period.
The increase primarily was due to higher cash distributions to Unitholders of $37.4 million .
36 unchanged sentences
We previously adopted a goal of increasing our adjusted operating margin to a target of 30% by 2020, subject to the assumptions, factors and contingencies described as part of the initial disclosure of this target.
−Removed: Our adjusted operating margin, which was 27.5% during 2019 , increased to 27.6% during the first three months of 2020 .
+Added: Our adjusted operating margin, which was 27.5% during 2019 , increased to 27.8% during the first six months of 2020 .
Our AUM and, therefore, our investment advisory revenues, including performance-based fee revenues, are heavily dependent on the level and volatility of the financial markets.
7 unchanged sentences
Our conclusions about the possible continuing significant adverse impact on us is based on our assumptions that the recovery will be gradual and that there will be lasting high unemployment and economic damage.
−Removed: We believe that these assumptions are reasonable, but they may not be correct and economic conditions likely will be either better or worse than we have assumed.
+Added: We believe that these assumptions are reasonable, but they may not be correct and economic conditions likely will differ from our assumptions.
Our fixed income investment performance:
−Removed: The poor relative performance of many of our funds during the first quarter of 2020 negatively impacted the one-, three- and five-year track records of these funds.
−Removed: As a result, we may experience heightened redemptions in some of our fixed income strategies.
+Added: Our fixed income performance rebounded in the second quarter following poor relative performance of many of our funds during the first quarter of 2020.
+Added: Still, we recognize that the impact on the one-, three- and five-year track records of some funds may cause heightened redemptions in some of our fixed income strategies.
An increase in redemptions, absent an offsetting increase in sales, would adversely affect our AUM, revenues and net income.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.