4 unchanged sentences
Results of Operations
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 % Change 2024 2023 % Change
+Added: Three Months Ended March 31,
+Added: 2025 2024 % Change
(in thousands, except per unit amounts)
4 unchanged sentences
Net income of AB Holding $ 74,034 $ 77,222 (4.1)
−Removed: Diluted net income per AB Holding Unit $ 1.12 $ 0.50 124.0 $ 2.77 $ 1.63 69.9
+Added: Net income per AB Holding Unit $ 0.67 $ 0.67 —
Distribution per AB Holding Unit (1)
2 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, 2024 increased $70.2 million and $133.0 million, respectively, as compared to the corresponding periods in 2023 primarily due to higher net income attributable to AB Unitholders.
+Added: AB Holding's net income for the three months ended March 31, 2025 decreased $3.2 million, compared to the three months ended March 31, 2024, primarily due to lower weighted average equity ownership interest in AB, partially offset by 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 by AB Holding’s ownership interest in AB, multiplied by the 3.5% tax rate.
−Removed: Certain AB qualifying revenues are primarily U.S.
−Removed: investment advisory fees, research payments and brokerage commissions.
−Removed: AB Holding's effective tax rate was 6.7% during the three months ended September 30, 2024, compared to 13.3% during the three months ended September 30, 2023.
−Removed: AB Holding's effective tax rate was 7.9% during the nine months ended September 30, 2024, compared to 12.4% during the nine months ended September 30, 2023.
+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 AB qualifying revenues by AB Holding’s ownership interest in AB, multiplied by the 3.5% tax rate.
+Added: AB qualifying revenues are primarily U.S.
+Added: investment advisory fees.
+Added: AB Holding's effective tax rate was 10.5% during the three months ended March 31, 2025 and 2024.
See Note 7 to the condensed financial statements in Item 1 for the calculation of income tax expense.
Management Operating Metrics
−Removed: As supplemental information, AB provides the performance measures “adjusted net revenues,” “adjusted operating income” and “adjusted operating margin,” which are the principal metrics management uses in evaluating and comparing the period-to-period operating performance of AB.
−Removed: Management principally uses these metrics in evaluating performance because they present a clearer picture of AB's operating performance and allow management to see long-term trends without the distortion primarily caused by long-term incentive compensation-related mark-to-market adjustments, acquisition-related expenses, interest expense and other adjustment items.
+Added: As supplemental information, AB provides the performance measures “adjusted net revenues,” “adjusted operating income” and “adjusted operating margin,” which are additional metrics management uses in evaluating and comparing the period-to-period operating performance of AB.
+Added: Management uses these additional metrics in evaluating performance because they present a clearer picture of AB's operating performance and allow management to see long-term trends without the distortion primarily caused by long-term incentive compensation-related mark-to-market adjustments, acquisition-related expenses, interest expense and other adjustment items.
Similarly, management believes that these management operating metrics help investors better understand the underlying trends in AB's results and, accordingly, provide a valuable perspective for investors.
Such measures are not based on generally accepted accounting principles (“non-GAAP measures”).
−Removed: We provide the non-GAAP measures "adjusted net income" and "adjusted diluted net income per unit" because our quarterly distribution per unit is typically our adjusted diluted net income per unit (which is derived from adjusted net income).
+Added: We provide the non-GAAP measures "adjusted net income" and "adjusted net income per unit" because our quarterly distribution per unit is typically our adjusted net income per unit (which is derived from adjusted net income).
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.
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The non-GAAP measures alone may pose limitations because they do not include all of AB’s revenues and expenses.
−Removed: Further, adjusted diluted net income per AB
−Removed: Holding Unit is not a liquidity measure and should not be used in place of cash flow measures.
+Added: Further, adjusted net income per AB Holding Unit is not a liquidity measure and should not be used in place of cash flow measures.
See AB’s MD&A contained in Exhibit 99.1 .
−Removed: 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: 2024 2023 2024 2023
+Added: The impact of these adjustments on AB Holding’s net income and net income per AB Holding Unit is as follows:
+Added: Three Months Ended March 31,
(in thousands, except per Unit amounts)
AB non-GAAP adjustments (1)
−Removed: AB income tax benefit (expense) on non-GAAP adjustments 4,282 (2,761) 10,337 (4,156)
+Added: $ 40,136 $ 16,087
+Added: AB income tax (expense) on non-GAAP adjustments (2,441) (487)
AB non-GAAP adjustments, after taxes 37,695 15,600
1 unchanged sentence
Impact on AB Holding’s net income of AB non-GAAP adjustments $ 14,128 $ 6,176
−Removed: Net income – diluted, GAAP basis $ 127,195 $ 56,991 $ 317,940 $ 184,986
+Added: Net income, GAAP basis $ 74,034 $ 77,222
Impact on AB Holding’s net income of AB non-GAAP adjustments 14,128 6,176
−Removed: Adjusted net income – diluted $ 87,680 $ 74,068 $ 252,742 $ 217,633
−Removed: Diluted net income per AB Holding Unit, GAAP basis $ 1.12 $ 0.50 $ 2.77 $ 1.63
+Added: Adjusted net income $ 88,162 $ 83,398
+Added: Net income per AB Holding Unit, GAAP basis $ 0.67 $ 0.67
Impact of AB non-GAAP adjustments 0.13 0.06
−Removed: Adjusted diluted net income per AB Holding Unit $ 0.77 $ 0.65 $ 2.21 $ 1.92
+Added: Adjusted net income per AB Holding Unit $ 0.80 $ 0.73
+Added: (1) Includes all AB non-GAAP adjustments to pre-tax income.
The degree to which AB's non-GAAP adjustments impact AB Holding's net income fluctuates based on AB Holding's ownership percentage in AB.
1 unchanged sentence
AB Holding is required to distribute all of its Available Cash Flow, as defined in the AB Holding Partnership Agreement, to its Unitholders (including the General Partner).
−Removed: Available Cash Flow typically is the adjusted diluted net income per unit for the quarter multiplied by the number of units outstanding at the end of the quarter.
−Removed: Management anticipates that Available Cash Flow will continue to be based on adjusted diluted net income per unit, unless management determines, with concurrence of the Board of Directors, that one or more adjustments made to adjusted net income should not be made with respect to the Available Cash Flow calculation.
+Added: Available Cash Flow typically is the adjusted net income per Unit for the quarter multiplied by the number of Units outstanding at the end of the quarter.
+Added: Management anticipates that Available Cash Flow will continue to be based on adjusted net income per Unit, unless management determines, with concurrence of the Board of Directors, that one or more adjustments made to adjusted net income should not be made with respect to the Available Cash Flow calculation.
See Note 2 to the condensed financial statements in Item 1 for a description of Available Cash Flow.
Capital Resources and Liquidity
−Removed: During the nine months ended September 30, 2024, net cash provided by operating activities was $253.0 million, compared to $221.2 million during the corresponding 2023 period.
−Removed: The increase primarily resulted from higher distributions received from AB of $32.6 million.
−Removed: During the nine months ended September 30, 2024, net cash used in financing activities was $253.0 million, compared to $221.2 million during the corresponding 2023 period.
+Added: During the three months ended March 31, 2025, net cash provided by operating activities was $115.3 million, compared to $87.7 million during the corresponding 2024 period.
+Added: The increase primarily resulted from higher cash distributions received from AB of $29.8 million.
+Added: During the three months ended March 31, 2025, net cash used in financing activities was $115.3 million, compared to $87.7 million during the corresponding 2024 period.
The increase was primarily due to higher cash distributions to Unitholders of $27.8 million.
2 unchanged sentences
These distributions are subsequently distributed (net of taxes paid) in their entirety to AB Holding’s Unitholders.
−Removed: 1 Includes all AB non-GAAP adjustments to pre-tax income which includes the gain on divestiture.
−Removed: 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).
+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
4 unchanged sentences
The most significant of these factors include, but are not limited to, the following:
−Removed: the performance of financial markets, the investment performance of sponsored investment products and separately managed accounts, general economic conditions, industry trends, future acquisitions, integration of acquired companies, competitive conditions and government regulations, including changes in tax regulations and rates and the manner in which the earnings of publicly-traded partnerships are taxed.
+Added: the performance of financial markets, the investment performance of sponsored investment products and separately managed accounts, general economic conditions, the impact of tariffs and potential disruptions in international trade on financial markets, product and account performance, asset levels and economic conditions, industry trends, future acquisitions, integration of acquired companies, competitive conditions and government regulations, including changes in tax regulations and rates and the manner in which the earnings of publicly-traded partnerships are taxed.
We caution readers to carefully consider such factors.
21 unchanged sentences
Quantitative and Qualitative Disclosures About Market Risk
−Removed: 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, 2023.
+Added: During the first quarter of 2025, 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, 2024.
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.