4 unchanged sentences
Results of Operations
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2020 2019 % Change 2020 2019 % Change
+Added: Three Months Ended March 31,
+Added: 2021 2020 % Change
(in thousands, except per unit amounts)
9 unchanged sentences
(1) Distributions reflect the impact of AB’s non-GAAP adjustments.
−Removed: 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.
+Added: AB Holding's net income for the three months ended March 31, 2021 increased $18.8 million as compared to the corresponding period in 2020, 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 9.3% during the three months ended September 30, 2020, compared to 10.3% during the three months ended September 30, 2019.
−Removed: 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.
+Added: AB Holding’s effective tax rate was 8.8% during the three months ended March 31, 2021, compared to 10.9% during the three months ended March 31, 2020.
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 September 30, Nine Months Ended September 30,
−Removed: 2020 2019 2020 2019
+Added: Three Months Ended March 31,
(in thousands, except per Unit amounts)
17 unchanged sentences
Capital Resources and Liquidity
−Removed: 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.
+Added: During the three months ended March 31, 2021, net cash provided by operating activities was $104.1 million, compared to $83.0 million during the corresponding 2020 period.
The increase primarily resulted from higher cash distributions received from AB of $14.5 million.
−Removed: 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.
+Added: During the three months ended March 31, 2021, net cash used in investing activities was $1.9 million, compared to $0.1 million during the corresponding 2020 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 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.
−Removed: The increase primarily was due to higher cash distributions to Unitholders of $42.3 million.
+Added: During the three months ended March 31, 2021, net cash used in financing activities was $102.2 million, compared to $82.9 million during the corresponding 2020 period.
+Added: The increase was primarily due to higher cash distributions to Unitholders of $14.3 million and higher capital contributions to AB of $6.8 million.
Management believes that AB Holding will have the resources it needs to meet its financial obligations as a result of the cash flow AB Holding realizes from its investment in AB.
33 unchanged sentences
• the timing for execution of each phase of our relocation implementation plan.
−Removed: • Our 2020 Margin Target :
−Removed: 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 28.4% during the first nine months of 2020.
−Removed: 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.
−Removed: Based upon our current revenue and expense projections, we do not believe that achieving the 2020 Margin Target is likely.
−Removed: However, we are taking additional actions to better align our expenses with our expected revenues.
−Removed: We remain committed to achieving an adjusted operating margin of 30% in years subsequent to 2020 and will take continued actions in this regard, subject to prevailing market conditions and the evolution of our business mix.
−Removed: Furthermore, our revenues may continue to be adversely affected by the severe economic impact of the novel coronavirus global pandemic ("COVID-19").
−Removed: Please refer to “Risk Factors” below for additional information regarding the effect on our business COVID-19 has had and may continue to have.
• The Adverse Impact of COVID-19:
−Removed: The severity of the expected adverse impact on our AUM and revenues of the economic downturn caused by the COVID-19 pandemic will depend on the depth and length of the downturn and its impact on the companies in which we invest.
−Removed: 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.
+Added: The severity of any possible adverse impact on our AUM and revenues of any economic downturn caused by the COVID-19 pandemic will depend on the depth and length of the downturn and its impact on the companies in which we invest.
+Added: Our conclusions about the possible continuing 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.
We believe that these assumptions are reasonable, but they may not be correct and economic conditions likely will differ from our assumptions.
−Removed: • Our fixed income investment performance:
−Removed: 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.
−Removed: 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.
−Removed: Any increase in redemptions, absent an offsetting increase in sales, would adversely affect our AUM, revenues and net income.
+Added: Quantitative and Qualitative Disclosures About Market Risk
+Added: There have been no material changes in AB Holding’s market risk from the information provided under “Quantitative and Qualitative Disclosures About Market Risk” in Part II, Item 7A of AB Holding's Form 10-K for the year ended December 31, 2020.
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.