4 unchanged sentences
Results of Operations
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2021 2020 % Change 2021 2020 % Change
+Added: Three Months Ended March 31,
+Added: 2022 2021 % 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, 2021 increased $21.7 million and $74.5 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 months ended March 31, 2022 increased $4.8 million as compared to the corresponding period in 2021 primarily due to higher net income attributable to AB Unitholders, partially offset by slightly lower 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 7.6% during the three months ended September 30, 2021, compared to 9.3% during the three months ended September 30, 2020.
−Removed: AB Holding's effective tax rate during the nine months ended September 30, 2021 was 7.6% compared to 10.1% during the nine months ended September 30, 2020.
+Added: AB Holding’s effective tax rate was 8.9% during the three months ended March 31, 2022, compared to 8.8% during the three months ended March 31, 2021.
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: 2021 2020 2021 2020
+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, 2021, net cash provided by operating activities was $268.0 million, compared to $203.6 million during the corresponding 2020 period.
+Added: During the three months ended March 31, 2022, net cash provided by operating activities was $127.1 million, compared to $104.1 million during the corresponding 2021 period.
The increase primarily resulted from higher cash distributions received from AB of $30.6 million.
−Removed: During the nine months ended September 30, 2021, net cash used in investing activities was $3.4 million, compared to $0.1 million during the corresponding 2020 period.
−Removed: 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, 2021, net cash used in financing activities was $264.6 million, compared to $203.5 million during the corresponding 2020 period.
−Removed: The increase was primarily due to higher cash distributions to Unitholders of $65.4 million.
+Added: During the three months ended March 31, 2022, there was no cash used in investing activities, compared to $1.9 million during the corresponding 2021 period.
+Added: The activity during the three months ended March 31, 2021 reflects the investments in AB with proceeds from exercises of compensatory options to buy AB Holding Units.
+Added: During the three months ended March 31, 2022, net cash used in financing activities was $127.1 million, compared to $102.2 million during the corresponding 2021 period.
+Added: The increase was primarily due to higher cash distributions to Unitholders of $29.6 million, partially offset by higher capital contributions from AB of $6.6 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.
28 unchanged sentences
Fluctuations in our revenues and/or changes in competitive compensation levels could result in adjusted employee compensation expense exceeding 50% of our adjusted net revenues.
−Removed: • Our Relocation Strategy:
−Removed: While the expenses, expense savings and EPU impact we expect will result from our Relocation Strategy are presented with numerical specificity, and we believe these figures to be reasonable as of the date of this report, the uncertainties surrounding the assumptions on which our estimates are based create a significant risk that our current estimates may not be realized.
−Removed: These assumptions include:
−Removed: • the amount and timing of employee relocation costs, severance and overlapping compensation and occupancy costs we experience;
−Removed: • the timing for execution of each phase of our relocation implementation plan.
• The Adverse Impact of COVID-19:
−Removed: The severity of any possible adverse impact on our AUM and revenues of any new economic downturn caused by a possible resurgence of the COVID-19 pandemic would depend on the depth and length of any such downturn and its impact on the companies in which we invest.
−Removed: Our conclusions about the possible adverse impact on us are based on our assumptions that the recovery from any such possible new economic downturn would be gradual and that there could again be significant, 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 differ from our assumptions.
+Added: The aggregate extent to which COVID-19, including existing and new variants and its impact on the global economy, affects AB’s business, liquidity, results of operations and financial condition, will depend on future COVID-19 developments that are highly uncertain, including the scope and duration of the pandemic and any recovery period, the emergence, spread and seriousness of COVID-19 variants, the continuing prevalence of severe, unconstrained and/or escalating rates of infection and hospitalization in various countries and regions, the availability, adoption and efficacy of treatments and vaccines, and future actions taken by governmental authorities, central banks and other parties in response to COVID-19.
+Added: • The probability that our acquisition of CarVal Investors, LP will close as anticipated.
+Added: These statements concern expected growth, client and stockholder benefits, key assumptions, timing of closing of the transaction, revenue realization, financial benefits or returns, accretion and integration costs.
+Added: The most significant transaction-related and other risk factors that may cause actual results to differ materially from future results expressed or implied by our forward-looking statements include:
+Added: (i) the occurrence of any event, change or other circumstances that could give rise to the termination of the acquisition agreement;
+Added: (ii) the transaction closing conditions may not be satisfied in a timely manner or at all, including due to the failure to obtain regulatory and client approvals;
+Added: (iii) the announcement and pendency of the acquisition may disrupt CarVal’s business operations (including the threatened or actual loss of employees, clients or suppliers);
+Added: (iv) CarVal could experience financial or other setbacks if the transaction encounters unanticipated problems;
+Added: and (v) anticipated benefits of the transaction, including the realization of revenue, accretion, and financial benefits or returns, may not be fully realized or may take longer to realize than expected, including if AB Holding units to be issued after the closing trade at a price below anticipated levels.
+Added: We caution readers to carefully consider such factors.
Quantitative and Qualitative Disclosures About Market Risk
1 unchanged sentence
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.