4 unchanged sentences
Results of Operations
−Removed: Three Months Ended June 30,
−Removed: Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
+Added: 2020 2019 % Change 2020 2019 % Change
(in thousands, except per unit amounts)
2 unchanged sentences
Equity in net income attributable to AB Unitholders 73,874 66,722 10.7 206,989 178,383 16.0
+Added: Income taxes 6,875 6,894 (0.3) 20,805 19,842 4.9
Net income of AB Holding $ 66,999 $ 59,828 12.0 $ 186,184 $ 158,541 17.4
2 unchanged sentences
$ 0.69 $ 0.63 9.5 $ 1.94 $ 1.68 15.5
+Added: ________________________
(1) Distributions reflect the impact of AB’s non-GAAP adjustments.
−Removed: 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.
+Added: AB Holding's net income for the three and nine months ended September 30, 2020 increased $7.2 million and $27.6 million, respectively, primarily due to higher net income attributable to AB Unitholders.
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 9.9% during the three months ended June 30, 2020 , compared to 11.4% during the three months ended June 30, 2019 .
−Removed: 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 .
+Added: AB Holding’s effective tax rate was 9.3% during the three months ended September 30, 2020, compared to 10.3% during the three months ended September 30, 2019.
+Added: AB Holding's effective tax rate during the nine months ended September 30, 2020 was 10.1% compared to 11.1% during the nine months ended September 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 June 30,
−Removed: Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
+Added: 2020 2019 2020 2019
(in thousands, except per Unit amounts)
17 unchanged sentences
Capital Resources and Liquidity
−Removed: 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.
+Added: During the nine months ended September 30, 2020, net cash provided by operating activities was $203.6 million, compared to $162.7 million during the corresponding 2019 period.
The increase primarily resulted from higher cash distributions received from AB of $43.3 million.
−Removed: 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.
+Added: During the nine months ended September 30, 2020, net cash used in investing activities was $0.1 million, compared to $9.6 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 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.
+Added: During the nine months ended September 30, 2020, net cash used in financing activities was $203.5 million, compared to $153.0 million during the corresponding 2019 period.
The increase primarily was due to higher cash distributions to Unitholders of $42.3 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 27.8% during the first six months of 2020 .
+Added: Our adjusted operating margin, which was 27.5% during 2019, increased to 28.4% during the first nine 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.
9 unchanged sentences
• Our fixed income investment performance:
−Removed: Our fixed income performance rebounded in the second quarter following poor relative performance of many of our funds during the first quarter of 2020.
−Removed: 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.
−Removed: An increase in redemptions, absent an offsetting increase in sales, would adversely affect our AUM, revenues and net income.
+Added: Our fixed income performance continued to rebound in the third quarter following poor relative performance of many of our funds during the first quarter of 2020.
+Added: Further, while we have not generally experienced redemptions in our fixed income strategies during the second or third quarters of 2020, we recognize that the impact on the one-, three- and five-year track records of some funds may contribute to increased redemptions in some of our fixed income strategies in future periods.
+Added: Any 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.