4 unchanged sentences
Results of Operations
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2022 2021 % Change 2022 2021 % Change
+Added: Three Months Ended March 31,
+Added: 2023 2022 % 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, 2022 decreased $32.4 million and $50.3 million, respectively, as compared to the corresponding periods in 2021 primarily due to lower net income attributable to AB Unitholders.
+Added: AB Holding's net income for the three months ended March 31, 2023 decreased $18.5 million, as compared to the corresponding period in 2022 primarily due to lower net income attributable to AB Unitholders, partially offset by a 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 11.9% during the three months ended September 30, 2022, compared to 7.6% during the three months ended September 30, 2021.
−Removed: AB Holding's effective tax rate during the nine months ended September 30, 2022 was 9.9% compared to 7.6% during the nine months ended September 30, 2021.
+Added: AB Holding's effective tax rate was 11.7% during the three months ended March 31, 2023, compared to 8.9% during the three months ended March 31, 2022.
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: 2022 2021 2022 2021
+Added: Three Months Ended March 31,
(in thousands, except per Unit amounts)
AB non-GAAP adjustments, before taxes $ 19,318 $ 11,601
−Removed: AB income tax (expense) benefit on non-GAAP adjustments (1,057) (56) (4,865) 239
+Added: AB income tax (expense) on non-GAAP adjustments (506) (1,874)
AB non-GAAP adjustments, after taxes 18,812 9,727
14 unchanged sentences
Capital Resources and Liquidity
−Removed: During the nine months ended September 30, 2022, net cash provided by operating activities was $288.7 million, compared to $268.0 million during the corresponding 2021 period.
−Removed: The increase primarily resulted from higher cash distributions received from AB of $22.7 million.
−Removed: During the nine months ended September 30, 2022, net cash used in investing activities was $178 thousand compared to $3.4 million during the corresponding 2021 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, 2022, net cash used in financing activities was $288.5 million, compared to $264.6 million during the corresponding 2021 period.
−Removed: The increase was primarily due to higher cash distributions to Unitholders of $19.1 million.
+Added: During the three months ended March 31, 2023, net cash provided by operating activities was $78.0 million, compared to $127.1 million during the corresponding 2022 period.
+Added: The decrease primarily resulted from lower cash distributions received from AB of $49.4 million.
+Added: During the three months ended March 31, 2023, net cash used in financing activities was $78.0 million, compared to $127.1 million during the corresponding 2022 period.
+Added: The decrease was primarily due to lower cash distributions to Unitholders of $48.4 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.
3 unchanged sentences
Certain statements provided by management in this report and in the portion of AB’s Form 10-Q attached hereto as Exhibit 99.1 are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.
−Removed: 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.
+Added: Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from
+Added: future results expressed or implied by such forward-looking statements.
The most significant of these factors include, but are not limited to, the following:
19 unchanged sentences
AB) and the availability of cash to make these purchases.
−Removed: • Our determination that adjusted employee compensation expense, excluding the impact of performance-based fees, generally should not exceed 50% of our adjusted annual net revenues:
+Added: • Our determination that adjusted employee compensation expense, excluding the impact of performance-based fees, generally should not exceed 50% of our adjusted net revenues on an annual basis:
Aggregate employee compensation reflects employee performance and competitive compensation levels.
−Removed: Fluctuations in our revenues and/or changes in competitive compensation levels could result in adjusted employee compensation expense exceeding 50% of our adjusted annual net revenues.
−Removed: • The Adverse Impact of COVID-19:
−Removed: 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 disease 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.
−Removed: • The impact of our acquisition of CarVal:
−Removed: These statements concern expected growth, client and stockholder benefits, key assumptions, revenue realization, financial benefits or returns, accretion and integration costs.
−Removed: Actual results may differ materially from future results expressed or implied by our forward-looking statements as a result of similar risks to those that impact our other similar business lines, as well as the risk that we are not able to realize the anticipated benefits of the transaction, including the realization of revenue, accretion, and financial benefits or returns, in full or that we may take longer to realize benefits than expected, due, among other reasons, to the challenges of integrating a new business and personnel.
−Removed: The anticipated benefits may also be adversely impacted by the risk that AB Holding units to be issued after the closing are issued at a price below anticipated levels.
−Removed: We caution readers to carefully consider such factors.
+Added: 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.
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.