4 unchanged sentences
Results of Operations
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2023 2022 % Change 2023 2022 % Change
+Added: Three Months Ended March 31,
+Added: 2024 2023 % 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 months ended September 30, 2023 increased $0.7 million from the three months ended September 30, 2022, primarily due to a higher weighted average equity ownership interest, partially offset by lower net income attributable to AB Unitholders.
−Removed: AB Holding's net income for the nine months ended September 30, 2023 decreased $25.4 million, compared to the nine months ended September 30, 2022, primarily due to lower net income attributable to AB Unitholders, partially offset by a higher weighted average equity ownership interest.
+Added: AB Holding's net income for the three months ended March 31, 2024 increased $9.8 million, compared to the three months ended March 31, 2023, primarily due to higher net income attributable to AB Unitholders.
AB Holding’s partnership gross income is derived from its interest in AB.
−Removed: AB Holding’s income taxes, which reflect a 3.5% federal tax on its partnership gross income from the active conduct of a trade or business, are computed by multiplying certain AB qualifying revenues (primarily U.S.
−Removed: 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 13.3% during the three months ended September 30, 2023, compared to 11.9% during the three months ended September 30, 2022.
−Removed: AB Holding's effective tax rate was 12.4% during the nine months ended September 30, 2023, compared to 9.9% during the nine months ended September 30, 2022.
+Added: AB Holding’s income taxes, which reflect a 3.5% federal tax on its partnership gross income from the active conduct of a trade or business, are computed by multiplying certain AB qualifying revenues by AB Holding’s ownership interest in AB, multiplied by the 3.5% tax rate.
+Added: Certain AB qualifying revenues are primarily U.S.
+Added: investment advisory fees, research payments and brokerage commissions.
+Added: AB Holding's effective tax rate was 10.5% during the three months ended March 31, 2024, compared to 11.7% during the three months ended March 31, 2023.
See Note 7 to the condensed financial statements in Item 1 for the calculation of income tax expense.
6 unchanged sentences
These non-GAAP measures are provided in addition to, and not as substitutes for, net revenues, operating income and operating margin, and they may not be comparable to non-GAAP measures presented by other companies.
−Removed: Management uses both GAAP
−Removed: and non-GAAP measures in evaluating the company’s financial performance.
+Added: Management uses both GAAP and non-GAAP measures in evaluating the company’s financial performance.
The non-GAAP measures alone may pose limitations because they do not include all of AB’s revenues and expenses.
2 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: 2023 2022 2023 2022
+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, 2023, net cash provided by operating activities was $221.2 million, compared to $288.7 million during the corresponding 2022 period.
−Removed: The decrease primarily resulted from lower cash distributions received from AB of $64.9 million.
−Removed: During the nine months ended September 30, 2023, net cash used in investing activities was zero compared to $178 thousand during the corresponding 2022 period.
−Removed: The activity in the prior year period reflects the investments in AB with proceeds from exercises of compensatory options to buy AB Holding Units.
−Removed: 1 Includes all AB non-GAAP adjustments to pre-tax income.
−Removed: During the nine months ended September 30, 2023, net cash used in financing activities was $221.2 million, compared to $288.5 million during the corresponding 2022 period.
−Removed: The decrease was primarily due to lower cash distributions to Unitholders of $65.3 million.
+Added: During the three months ended March 31, 2024, net cash provided by operating activities was $87.7 million, compared to $78.0 million during the corresponding 2023 period.
+Added: The increase primarily resulted from higher cash distributions received from AB of $10.3 million.
+Added: During the three months ended March 31, 2024, net cash used in financing activities was $87.7 million, compared to $78.0 million during the corresponding 2023 period.
+Added: The increase was primarily due to higher cash distributions to Unitholders of $9.3 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.
+Added: AB Holding’s cash inflow is comprised entirely of distributions from AB.
+Added: These distributions are subsequently distributed (net of taxes paid) in their entirety to AB Holding’s Unitholders.
+Added: As a result, AB Holding has no liquidity risk as it only pays distributions to AB Holding’s Unitholders to the extent of distributions received from AB (net of taxes paid).
Commitments and Contingencies
See Note 8 to the condensed financial statements in Item 1 .
+Added: 2 Includes all AB non-GAAP adjustments to pre-tax income.
CAUTIONS REGARDING FORWARD-LOOKING STATEMENTS
23 unchanged sentences
• 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:
−Removed: Aggregate employee compensation
−Removed: reflects employee performance and competitive compensation levels.
+Added: Aggregate employee compensation reflects employee performance and competitive compensation levels.
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.
2 unchanged sentences
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.