NEW YORK, April 26 /PRNewswire-FirstCall/ -- AllianceBernstein Holding L.P. ("AllianceBernstein Holding") (NYSE: AB) and AllianceBernstein L.P. ("AllianceBernstein") today reported financial and operating results for the quarter ended March 31, 2006.
AllianceBernstein Holding (The Publicly Traded Partnership):
* Diluted net income per unit for the quarter ended March 31, 2006 was
$0.78, an increase of 34.5% as compared to $0.58 for the same period
in 2005.
* Distribution per unit for the first quarter of 2006 is $0.78, an
increase of 39.3% as compared to $0.56 for the same period in 2005.
The distribution is payable on May 18, 2006 to holders of
AllianceBernstein Holding Units at the close of business on May 8,
2006.
AllianceBernstein (The Operating Partnership):
* Assets Under Management (AUM) at March 31, 2006 were $618 billion, a
15.7% increase over a year ago (or 22.1%, excluding dispositions),
due to equity market appreciation and net inflows across all
distribution channels.
* Average AUM were $603 billion for the quarter ended March 31, 2006,
an increase of 12.1% over the same quarter a year ago (or 18.6%,
excluding dispositions).
* Net inflows for the three months ended March 31, 2006 were $12.0
billion, consisting of Institutional Investments net inflows of $5.5
billion, Retail net inflows of $3.8 billion and Private Client net
inflows of $2.7 billion.
* Net inflows for the twelve months ended March 31, 2006 were $33.7
billion, consisting of Institutional Investments net inflows of
$21.5 billion, Private Client net inflows of $7.0 billion and Retail
net inflows of $5.2 billion.
"On the most important metric, investment returns for our clients, first quarter results varied but in aggregate were good. Global and international equity services performed exceptionally well in both absolute and relative terms. U.S. equity returns were positive but, with few exceptions, trailed their benchmarks. Fixed income returns were held back by rising interest rates; however, relative performance was favorable in almost all key services," said Lew Sanders, Chairman and CEO.
"Reflecting excellent long-term investment returns, net asset inflows reached $12 billion for the first quarter. Organic growth was particularly robust in the private client and retail channels. The firm continued to benefit from increased consultant and client acceptance of our global, international and style blend services, which, once again, drove growth in the first quarter. At the quarter's end, global and international services rose to 47% of assets under management, while AUM for clients domiciled outside the U.S. grew to 32% of the total. Style blend services grew strongly too, reaching more than $100 billion.
"The outlook for organic growth remains favorable as the pipeline of new but unfunded mandates grew sharply in the first quarter.
"We were also pleased with the growth of our institutional research services business, where revenue rose by 26% in the first quarter. U.S. results benefited from the strength of our research franchise and growing client interest in our suite of algorithmic trading services. Revenue growth remained strong in our London-based research unit as well, as client acceptance of our research services continued to build.
"The firm's profitability improved in the first quarter. Net income per unit rose by 35% as compared to last year's comparable quarter and operating margins expanded by more than three percentage points. We achieved these results despite unusually high legal expenses of approximately $0.04 per unit as we continued to take action to resolve outstanding litigation and made considerable progress.
"Sustained strong growth and improvement in profitability is dependent on achieving superior returns for our clients. Delivering on this mission remains our primary focus," concluded Mr. Sanders.
SUMMARY FINANCIAL RESULTS FOR ALLIANCEBERNSTEIN L.P.
($ millions)
Three Months Ended
----------------------- %
03/31/06 03/31/05 Change (1)
----------- --------- --------
Revenues $899 $750 19.8%
Expenses 656 571 14.8%
----------- ---------
Income Before Income Taxes 243 179 36.1%
Income Taxes 15 10 53.1%
----------- ---------
Net Income $228 $169 35.1%
=========== =========
Pre-tax Margin (2) 27.1% 23.8%
(1) Percentages are calculated using revenues and expenses rounded to the
nearest thousand.
(2) Pre-tax income as a percentage of total revenues, rounded to the
nearest thousand.
* Revenues for the first quarter of 2006 increased 19.8% to $899 million
from $750 million in the first quarter of 2005, primarily due to higher
base advisory fees from higher AUM and higher mark-to-market investment
gains on mutual fund investments held for deferred compensation plans.
* Expenses increased 14.8% to $656 million from $571 million, the result
of higher incentive compensation, higher commissions, and increased
legal expenses from the settlement of outstanding litigation, offset
partially by lower distribution plan payments due to the Cash Management
Services disposition and a decrease in deferred sales commissions
amortization.
CONFERENCE CALL INFORMATION RELATING TO FIRST QUARTER 2006 RESULTS
AllianceBernstein's management will review first quarter 2006 financial and operating results on Wednesday, April 26, 2006, during a conference call at 5:30 p.m. (New York Time), following the release of its financial results after the close of the New York Stock Exchange. The conference call will be hosted by Chairman and Chief Executive Officer, Lewis A. Sanders and President and Chief Operating Officer, Gerald M. Lieberman.
Parties interested in listening to the conference call may access it by either telephone or webcast.
1. To listen by telephone, please dial 877-234-1973 in the U.S. or
973-582-2700 outside the U.S., ten minutes before the 5:30 p.m. (New
York Time) scheduled start time. The conference ID# is 7252607.
2. To listen by webcast, please visit AllianceBernstein's Investor
Relations website at http://ir.alliancebernstein.com at least fifteen
minutes prior to the call to download and install any necessary audio
software.
The presentation slides that will be reviewed during the conference call are expected to be available on AllianceBernstein's website at the above web address after the release of its results on April 26, 2006.
An audio replay of the conference call will be made available for one week beginning at 7:30 p.m. (New York Time) on April 26, 2006. In the U.S., please call 877-519-4471 or, outside the U.S., call 973-341-3080, and provide the conference ID# 7252607. The audio replay will also be available via webcast on AllianceBernstein's website for one week.
About AllianceBernstein
AllianceBernstein is a leading global investment management firm providing investment management services for many of the largest U.S. public and private employee benefit plans, foundations, public employee retirement funds, pension funds, endowments, banks, insurance companies and high-net-worth individuals worldwide. AllianceBernstein is also one of the largest mutual fund sponsors, with a diverse family of globally distributed mutual fund portfolios. Through its subsidiary, Sanford C. Bernstein & Co., LLC, AllianceBernstein provides in-depth research, portfolio strategy and trade execution to the institutional investment community.
At March 31, 2006, AllianceBernstein Holding L.P. ("Holding") owned approximately 32.7% of the issued and outstanding AllianceBernstein Units. AXA Financial was the beneficial owner of approximately 60.2% of the AllianceBernstein Units at March 31, 2006 (including those held indirectly through its ownership of approximately 1.7% of the issued and outstanding Holding Units) which, including the general partnership interests in AllianceBernstein and Holding, represent an approximate 60.6% economic interest in AllianceBernstein. AXA Financial is a wholly-owned subsidiary of AXA, one of the largest global financial services organizations.
Forward-Looking Statements
Certain statements in this news release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These 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. The most significant of these factors include, but are not limited to, the following: the performance of financial markets, the investment performance we achieve for our clients, general economic conditions, future acquisitions, competitive conditions, and government regulations, including changes in tax rates. We caution readers to carefully consider our forward-looking statements in light of these factors. Further, these forward-looking statements speak only as of the date on which such statements are made; we undertake no obligation to update any forward-looking statements to reflect subsequent events or circumstances. For further information regarding these forward-looking statements and the factors that could cause actual results to differ, see "Risk Factors" in Item 1A of Form 10-K for the year ended December 31, 2005. Any or all of the forward-looking statements that we make in Form 10-K, this news release, or any other public statements we issue may turn out to be wrong. Please remember that factors other than those listed in "Risk Factors" could also adversely affect our business, operating results, or financial condition.
ALLIANCEBERNSTEIN L.P.
(THE OPERATING PARTNERSHIP)
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands)
Three Months Ended
----------------------
03/31/06 03/31/05
---------- -----------
Revenues:
Investment Advisory & Services Fees (1) $626,719 $517,428
Distribution Revenues 102,830 107,833
Institutional Research Services (1) 95,767 93,959
Shareholder Servicing Fees 24,741 25,246
Other Revenues, Net 49,062 5,779
------- -------
899,119 750,245
------- -------
Expenses:
Employee Compensation & Benefits 370,347 285,062
Promotion & Servicing:
Distribution Plan Payments 71,045 91,438
Amortization of Deferred
Sales Commissions 26,381 36,548
Other 48,865 47,110
General & Administrative 126,607 99,879
Interest 7,431 6,272
Amortization of Intangible Assets 5,175 5,175
------- -------
655,851 571,484
------- -------
Income Before Income Taxes 243,268 178,761
Income Taxes 15,695 10,254
NET INCOME $227,573 $168,507
======== ========
Pre-tax Margin 27.1% 23.8%
(1) Transaction charges from asset management accounts previously reported
as Investment Advisory Fees have been reclassified to Institutional
Research Services. Excluding the effect of this reclassification,
Investment Advisory & Services fees and Institutional Research
Services revenue for the first quarter of 2006 increased 17.0% and
26.4% respectively, from the first quarter of 2005.
ALLIANCEBERNSTEIN HOLDING L.P.
(THE PUBLICLY TRADED PARTNERSHIP)
SUMMARY STATEMENTS OF INCOME
(unaudited, in thousands except per Unit amounts)
Three Months Ended
----------------------
03/31/06 03/31/05
-------- ---------
Equity in Earnings of Operating Partnership $73,164 $53,020
Income Taxes 7,605 6,186
------- --------
NET INCOME 65,559 46,834
Additional Equity in Earnings of Operating
Partnership (1) 1,227 748
------ ------
NET INCOME - Diluted (2) $66,786 $47,582
======= =======
DILUTED NET INCOME PER UNIT $0.78 $0.58
======= =======
DISTRIBUTION PER UNIT $0.78 $0.56
======= =======
(1) To reflect higher ownership in the Operating Partnership resulting
from application of the treasury stock method to outstanding options.
(2) For calculation of Diluted Net Income per Unit.
ALLIANCEBERNSTEIN AND ALLIANCEBERNSTEIN HOLDING
UNITS OUTSTANDING AND WEIGHTED AVERAGE UNITS OUTSTANDING
MARCH 31, 2006
Weighted Average Units
---------------------
Three Months Ended
---------------------
Period End
Units Basic Diluted
----------- ---------- -----------
AllianceBernstein 257,523,620 256,819,956 259,114,562
AllianceBernstein Holding 84,129,777 83,426,113 85,720,719
ALLIANCEBERNSTEIN L.P.
ASSETS UNDER MANAGEMENT
THREE MONTHS ENDED MARCH 31, 2006
($ millions)
Institutional Private
Investments Retail Client Total
------------ -------- ------- --------
Beginning of Period $358,545 $145,134 $74,873 $578,552
Sales/New accounts 11,172 11,177 3,961 26,310
Redemptions/Terminations (2,342) (7,393) (721) (10,456)
Cash flow (3,278) 203 (490) (3,565)
Unreinvested dividends - (217) (69) (286)
------ ------ ------ -----
Net Inflows 5,552 3,770 2,681 12,003
Transfers (1) 7,918 (9,155) 1,237 -
Market Appreciation 17,902 6,170 2,948 27,020
------ ------ ------ -----
End of Period $389,917 $145,919 $81,739 $617,575
======== ======= ======= =======
(1) Transfers of certain client accounts were made among distribution
channels resulting from changes in how these accounts are serviced by
the firm. AUM at March 31, 2006 reflect these transfers.
ALLIANCEBERNSTEIN L.P.
ASSETS UNDER MANAGEMENT
TWELVE MONTHS ENDED MARCH 31, 2006
($ millions)
Institutional Private
Investments Retail Client Total
------------ -------- ------- ------
Beginning of Period $311,310 $157,562 $65,074 $533,946
Sales/New accounts 41,046 34,816 11,768 87,630
Redemptions/Terminations (17,194) (28,483) (2,875) (48,552)
Cash flow (2,370) (212) (1,489) (4,071)
Unreinvested dividends (1) (924) (346) (1,271)
------ ------ ------ -----
Net Inflows (before dispositions) 21,481 5,197 7,058 33,736
Dispositions (1) (1,375) (26,653) (370) (28,398)
Transfers (2) 8,488 (9,155) 667 -
Market Appreciation 50,013 18,968 9,310 78,291
------- ------ ------ -----
End of Period $389,917 $145,919 $81,739 $617,575
======== ======= ======= =======
(1) Cash Management Services, South African joint venture interest and
Indian mutual funds.
(2) Transfers of certain client accounts were made among distribution
channels resulting from changes in how these accounts are serviced by
the firm. AUM at March 31, 2006 reflect these transfers.
ALLIANCEBERNSTEIN L.P.
ASSETS UNDER MANAGEMENT
($ millions)
Three Month Period Twelve Month Period
03/31/06 03/31/05 03/31/06 03/31/05
-------- --------- --------- ---------
Ending Assets Under
Management $617,575 $533,946 $617,575 $533,946
========= ========= ========= ========
Average Assets Under
Management $602,654 $537,647 $557,730 $505,715
========= ========= ========= ========
ALLIANCEBERNSTEIN L.P.
ASSETS UNDER MANAGEMENT
BY INVESTMENT SERVICE
AT MARCH 31, 2006
($ millions)
Institutional Private
Investments Retail Client Total
------------ -------- ------- ------
Equity:
Growth
U.S. $39,091 $32,215 $12,084 $83,390
Global & International 49,155 19,229 7,660 76,044
-------- ------- ------ -------
88,246 51,444 19,744 159,434
-------- ------- ------ -------
Value
U.S. 51,963 33,743 24,678 110,384
Global & International 118,212 19,636 14,772 152,620
-------- ------- ------ -------
170,175 53,379 39,450 263,004
-------- ------- ------ -------
Total Equity 258,421 104,823 59,194 422,438
-------- ------- ------ -------
Fixed Income:
U.S. 71,464 11,826 22,182 105,472
Global & International 34,901 23,725 259 58,885
-------- ------- ------ -------
106,365 35,551 22,441 164,357
-------- ------- ------ -------
Index/Structured:
U.S. 21,223 4,424 104 25,751
Global & International 3,908 1,121 - 5,029
-------- ------- ------ -------
25,131 5,545 104 30,780
-------- ------- ------ -------
Total:
U.S. 183,741 82,208 59,048 324,997
Global & International 206,176 63,711 22,691 292,578
-------- ------- ------ -------
$389,917 $145,919 $81,739 $617,575
-------- -------- ------ -------
ALLIANCEBERNSTEIN L.P.
ASSETS UNDER MANAGEMENT
BY CLIENT DOMICILE
AT MARCH 31, 2006
($ millions)
Institutional Private
Investments Retail Client Total
------------ ------- -------- -------
U.S. Clients $228,094 $112,559 $79,606 $420,259
Non-U.S. Clients 161,823 33,360 2,133 197,316
-------- ------- -------- -------
$389,917 $145,919 $81,739 $617,575
-------- ------- -------- -------
SOURCE AllianceBernstein Holding L.P.; AllianceBernstein L.P.
CONTACT: Media: John Meyers, +1-212-969-2301, pr@alliancebernstein.com,
or Investors: Valerie Haertel, +1-212-969-6414, ir@alliancebernstein.com /