ý
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
Delaware
|
13-4064930
|
|||
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
Yes
|
x
|
No
|
o
|
Large
accelerated filer
|
x
|
Accelerated
filer
|
o
|
Non-accelerated
filer
|
o
|
Yes
|
o
|
No
|
x
|
Page
|
||||
Part I
|
||||
FINANCIAL
INFORMATION
|
||||
Item
1.
|
Financial
Statements
|
|||
1
|
||||
|
||||
2
|
||||
|
||||
3
|
||||
4
|
||||
5-19
|
||||
20
|
||||
21
|
||||
Item
2.
|
22-35
|
|||
Item
3.
|
35
|
|||
Item
4.
|
35
|
|||
Part II
|
||||
OTHER
INFORMATION
|
||||
Item
1.
|
36
|
|||
Item
1A.
|
36
|
|||
Item
2.
|
36
|
|||
Item
3.
|
36
|
|||
Item
4.
|
36
|
|||
Item
5.
|
36
|
|||
Item
6.
|
37
|
|||
38
|
Item 1. |
Financial
Statements
|
June
30,
2006
|
December
31,
2005
|
||||||
(unaudited)
|
|||||||
ASSETS
|
|||||||
Cash
and cash equivalents
|
$
|
817,332
|
$
|
654,168
|
|||
Cash
and securities segregated, at market (cost: $1,861,217 and
$1,720,295)
|
1,861,528
|
1,720,809
|
|||||
Receivables,
net:
|
|||||||
Brokers
and dealers
|
2,334,007
|
2,093,461
|
|||||
Brokerage
clients
|
328,975
|
429,586
|
|||||
Fees,
net
|
499,409
|
413,198
|
|||||
Investments
|
587,905
|
345,045
|
|||||
Furniture,
equipment and leasehold improvements, net
|
263,385
|
236,309
|
|||||
Goodwill,
net
|
2,893,339
|
2,876,657
|
|||||
Intangible
assets, net
|
294,975
|
305,325
|
|||||
Deferred
sales commissions, net
|
197,685
|
196,637
|
|||||
Other
investments
|
87,205
|
86,369
|
|||||
Other
assets
|
128,402
|
132,916
|
|||||
Total
assets
|
$
|
10,294,147
|
$
|
9,490,480
|
|||
LIABILITIES
AND PARTNERS’ CAPITAL
|
|||||||
Liabilities:
|
|||||||
Payables:
|
|||||||
Brokers
and dealers
|
$
|
1,122,382
|
$
|
1,057,274
|
|||
Brokerage
clients
|
3,433,380
|
2,929,500
|
|||||
AllianceBernstein
mutual funds
|
108,557
|
140,603
|
|||||
Accounts
payable and accrued expenses
|
270,638
|
286,449
|
|||||
Accrued
compensation and benefits
|
557,244
|
357,321
|
|||||
Debt
|
414,918
|
407,291
|
|||||
Minority
interests in consolidated subsidiaries
|
11,203
|
9,368
|
|||||
Total
liabilities
|
5,918,322
|
5,187,806
|
|||||
Commitments
and contingencies (See Note 5)
|
|||||||
Partners’
capital
|
4,375,825
|
4,302,674
|
|||||
Total
liabilities and partners’ capital
|
$
|
10,294,147
|
$
|
9,490,480
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
Revenues:
|
|||||||||||||
Investment
advisory and services fees
|
$
|
690,213
|
$
|
528,727
|
$
|
1,316,932
|
$
|
1,046,155
|
|||||
Distribution
revenues
|
104,456
|
97,727
|
207,286
|
205,560
|
|||||||||
Institutional
research services
|
102,631
|
80,504
|
198,398
|
174,463
|
|||||||||
Dividend
and interest income
|
61,462
|
30,644
|
116,790
|
55,726
|
|||||||||
Investment
gains (losses)
|
(15,537
|
)
|
6,779
|
10,692
|
1,099
|
||||||||
Other
revenues
|
35,966
|
31,973
|
69,520
|
60,892
|
|||||||||
Total
revenues
|
979,191
|
776,354
|
1,919,618
|
1,543,895
|
|||||||||
Less:
Interest expense
|
45,861
|
20,096
|
90,620
|
37,088
|
|||||||||
Net
revenues
|
933,330
|
756,258
|
1,828,998
|
1,506,807
|
|||||||||
Expenses:
|
|||||||||||||
Employee
compensation and benefits
|
373,780
|
308,699
|
744,127
|
593,761
|
|||||||||
Promotion
and servicing:
|
|||||||||||||
Distribution
plan payments
|
72,795
|
71,322
|
143,840
|
162,760
|
|||||||||
Amortization
of deferred sales commissions
|
23,589
|
34,439
|
49,970
|
70,987
|
|||||||||
Other
|
59,949
|
49,576
|
108,814
|
96,686
|
|||||||||
General
and administrative
|
127,673
|
81,293
|
254,280
|
181,172
|
|||||||||
Interest
on borrowings
|
6,852
|
6,306
|
14,283
|
12,578
|
|||||||||
Amortization
of intangible assets
|
5,175
|
5,175
|
10,350
|
10,350
|
|||||||||
669,813
|
556,810
|
1,325,664
|
1,128,294
|
||||||||||
Operating
Income
|
263,517
|
199,448
|
503,334
|
378,513
|
|||||||||
Non-operating
income
|
9,730
|
12,312
|
13,181
|
12,008
|
|||||||||
Income
before income taxes
|
273,247
|
211,760
|
516,515
|
390,521
|
|||||||||
Income
taxes
|
12,145
|
13,763
|
27,840
|
24,017
|
|||||||||
Net
income
|
$
|
261,102
|
$
|
197,997
|
$
|
488,675
|
$
|
366,504
|
|||||
Net
income per unit:
|
|||||||||||||
Basic
|
$
|
1.00
|
$
|
0.77
|
$
|
1.88
|
$
|
1.43
|
|||||
Diluted
|
$
|
0.99
|
$
|
0.76
|
$
|
1.86
|
$
|
1.42
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
Partners’
capital - beginning of period
|
$
|
4,320,700
|
$
|
4,146,449
|
$
|
4,302,674
|
$
|
4,183,698
|
|||||
Comprehensive
income:
|
|||||||||||||
Net
income
|
261,102
|
197,997
|
488,675
|
366,504
|
|||||||||
Other
comprehensive income:
|
|||||||||||||
Unrealized
gain (loss) on investments, net
|
(1,050
|
)
|
614
|
(447
|
)
|
(199
|
)
|
||||||
Foreign
currency translation adjustment, net
|
5,348
|
(8,454
|
)
|
2,372
|
(8,387
|
)
|
|||||||
Comprehensive
income
|
265,400
|
190,157
|
490,600
|
357,918
|
|||||||||
Capital
contributions from General Partner
|
742
|
705
|
1,509
|
1,444
|
|||||||||
Cash
distributions to General Partner and unitholders
|
(226,391
|
)
|
(162,105
|
)
|
(517,167
|
)
|
(393,091
|
)
|
|||||
Purchases
of Holding Units to fund deferred compensation plans, net
|
(2,254
|
)
|
(532
|
)
|
(18,369
|
)
|
(6,920
|
)
|
|||||
Additional
investment by Holding through issuance of Holding Units in exchange
for
cash awards made under the Partners Compensation Plan
|
—
|
—
|
47,161
|
—
|
|||||||||
Compensatory
Holding Unit options expense
|
559
|
555
|
1,177
|
1,119
|
|||||||||
Amortization
of deferred compensation expense
|
11,293
|
15,056
|
22,609
|
29,467
|
|||||||||
Additional
investment by Holding with proceeds from exercise of compensatory
options
to buy Holding Units
|
5,776
|
10,834
|
45,631
|
27,484
|
|||||||||
Partners’
capital - end of period
|
$
|
4,375,825
|
$
|
4,201,119
|
$
|
4,375,825
|
$
|
4,201,119
|
Six
Months Ended June 30,
|
|||||||
2006
|
2005
|
||||||
Cash
flows from operating activities:
|
|||||||
Net
income
|
$
|
488,675
|
$
|
366,504
|
|||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
|||||||
Amortization
of deferred sales commissions
|
49,970
|
70,987
|
|||||
Amortization
of deferred compensation
|
38,435
|
47,016
|
|||||
Depreciation
and other amortization
|
35,659
|
33,399
|
|||||
Other,
net
|
(1,083
|
)
|
924
|
||||
Changes
in assets and liabilities:
|
|||||||
(Increase)
decrease in segregated cash and securities
|
(140,719
|
)
|
259,819
|
||||
(Increase)
in receivable from brokers and dealers
|
(231,628
|
)
|
(518,141
|
)
|
|||
Decrease
(increase) in receivable from brokerage clients
|
105,115
|
(41,114
|
)
|
||||
(Increase)
decrease in fees receivable, net
|
(80,427
|
)
|
723
|
||||
(Increase)
in trading investments
|
(197,010
|
)
|
(171,222
|
)
|
|||
(Increase)
in deferred sales commissions
|
(51,015
|
)
|
(30,374
|
)
|
|||
(Increase)
decrease in other investments
|
(4,266
|
)
|
29,642
|
||||
Decrease
(increase) in other assets
|
7,770
|
(11,988
|
)
|
||||
Increase
in payable to brokers and dealers
|
62,813
|
549,131
|
|||||
Increase
(decrease) in payable to brokerage clients
|
493,541
|
(477,632
|
)
|
||||
(Decrease)
increase in payable to AllianceBernstein mutual funds
|
(32,064
|
)
|
4,782
|
||||
(Decrease)
in accounts payable and accrued expenses
|
(24,866
|
)
|
(26,565
|
)
|
|||
Increase
in accrued compensation and benefits, less deferred
compensation
|
231,035
|
157,603
|
|||||
Net
cash provided by operating activities
|
749,935
|
243,494
|
|||||
Cash
flows from investing activities:
|
|||||||
Purchases
of investments
|
(41,966
|
)
|
(6,662
|
)
|
|||
Proceeds
from sales of investments
|
931
|
10,958
|
|||||
Additions
to furniture, equipment and leasehold improvements
|
(49,623
|
)
|
(46,741
|
)
|
|||
Purchase
of business, net of cash acquired
|
(16,086
|
)
|
—
|
||||
Net
cash used in investing activities
|
(106,744
|
)
|
(42,445
|
)
|
|||
Cash
flows from financing activities:
|
|||||||
Issuance
(repayments) of commercial paper, net
|
5,430
|
(150
|
)
|
||||
Cash
distributions to General Partner and unitholders
|
(517,167
|
)
|
(393,091
|
)
|
|||
Capital
contributions from General Partner
|
1,509
|
1,444
|
|||||
Additional
investment by Holding with proceeds from exercise of compensatory
options
to buy Holding Units
|
45,631
|
27,484
|
|||||
Purchases
of Holding Units to fund deferred compensation plans, net
|
(18,369
|
)
|
(6,920
|
)
|
|||
Net
cash used in financing activities
|
(482,966
|
)
|
(371,233
|
)
|
|||
Effect
of exchange rate changes on cash and cash equivalents
|
2,939
|
(6,903
|
)
|
||||
Net
increase (decrease) in cash and cash equivalents
|
163,164
|
(177,087
|
)
|
||||
Cash
and cash equivalents as of beginning of period
|
654,168
|
1,061,523
|
|||||
Cash
and cash equivalents as of end of period
|
$
|
817,332
|
$
|
884,436
|
|||
Non-cash
financing activities:
|
|||||||
Additional
investment by Holding through issuance of Holding Units in exchange
for
cash awards made under the Partners Compensation Plan
|
$
|
47,161
|
$
|
—
|
1.
|
Organization
and Business Description
|
•
|
Institutional
Investments Services - servicing institutional investors, including
unaffiliated corporate and public employee pension funds, endowment
funds,
domestic and foreign institutions and governments, and affiliates
such as
AXA and certain of its insurance company subsidiaries, by means of
separately managed accounts, sub-advisory relationships, structured
products, group trusts, mutual funds (sponsored by AllianceBernstein
or
our affiliated joint venture companies), and other investment
vehicles.
|
•
|
Retail
Services - servicing individual investors, primarily by means of
retail
mutual funds sponsored by AllianceBernstein or our affiliated joint
venture companies, sub-advisory relationships in respect of mutual
funds
sponsored by third parties, separately managed account programs that
are
sponsored by registered broker-dealers, and other investment
vehicles.
|
•
|
Private
Client Services - servicing high-net-worth individuals, trusts and
estates, charitable foundations, partnerships, private and family
corporations, and other entities, by means of separately managed
accounts,
hedge funds, mutual funds, and other investment
vehicles.
|
•
|
Institutional
Research Services - servicing institutional investors desiring
institutional research services including in-depth research, portfolio
strategy, trading, and brokerage-related
services.
|
• |
Growth
equities, generally targeting stocks with under-appreciated growth
potential;
|
• |
Value
equities, generally targeting stocks at bargain prices that are out
of
favor;
|
• |
Fixed
income, including both taxable and tax-exempt
securities;
|
• |
Passive,
including both index and enhanced index strategies;
and
|
• |
Blend
strategies, combining style pure components with systematic
rebalancing.
|
AXA
and its subsidiaries
|
59.6
|
%
|
||
Holding
|
32.7
|
|||
SCB
Partners Inc. (a wholly-owned subsidiary of SCB Inc., formerly known
as
Sanford
C. Bernstein Inc.)
|
6.3
|
|||
Other
|
1.4
|
|||
100.0
|
%
|
2.
|
Summary
of Significant Accounting
Policies
|
•
|
the
reclassification of $4.5 million and $23.2 million of transaction
charge
revenues from investment advisory and services fees to institutional
research services for the three-month and six-month periods ending
June
30, 2005, respectively;
|
•
|
non-operating
income, consisting of gains on dispositions, previously included
in other
revenues, is now classified as non-operating
income;
|
•
|
dividend
and interest income, investment gains and losses, and interest
expense
relating to broker-dealer operations, previously included in other
revenues, are now shown separately;
and
|
•
|
shareholder
servicing fees ($24.9 million and $49.7 million for the three-month
and
six-month periods of 2006, respectively, and $26.2 million and
$51.4
million for the comparable periods of 2005, respectively), previously
shown separately, are now included in other
revenues.
|
•
|
net
cash provided by operating activities of
AllianceBernstein,
|
•
|
proceeds
from borrowings and from sales or other dispositions of assets
in the
ordinary course of business, and
|
•
|
income
from investments in marketable securities, liquid investments,
and other
financial instruments that are acquired for investment purposes
and that
have a value that may be readily
established,
|
•
|
payments
in respect of the principal of borrowings,
and
|
•
|
amounts
expended for the purchase of assets in the ordinary course of
business.
|
Three
Months Ended June 30, 2005
|
Six
Months Ended June 30, 2005
|
||||||
(in
thousands, except per unit amounts)
|
|||||||
SFAS
No. 123 pro forma net income:
|
|||||||
Net
income as reported
|
$
|
197,997
|
$
|
366,504
|
|||
Add:
stock-based compensation expense included in net income, net of
tax
|
519
|
1,051
|
|||||
Deduct:
total stock-based compensation expense determined under fair value
method
for all awards, net of tax
|
(1,055
|
)
|
(2,145
|
)
|
|||
SFAS
No. 123 pro forma net income
|
$
|
197,461
|
$
|
365,410
|
|||
Net
income per unit:
|
|||||||
Basic
net income per unit as reported
|
$
|
0.77
|
$
|
1.43
|
|||
Basic
net income per unit pro forma
|
$
|
0.77
|
$
|
1.42
|
|||
Diluted
net income per unit as reported
|
$
|
0.76
|
$
|
1.42
|
|||
Diluted
net income per unit pro forma
|
$
|
0.76
|
$
|
1.41
|
3.
|
Cash
and Securities Segregated Under Federal Regulations and Other
Requirements
|
4.
|
Net
Income Per Unit
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
(in
thousands, except per unit amounts)
|
|||||||||||||
Net
income
|
$
|
261,102
|
$
|
197,997
|
$
|
488,675
|
$
|
366,504
|
|||||
Weighted
average units outstanding - basic
|
257,624
|
254,828
|
257,224
|
254,514
|
|||||||||
Dilutive
effect of compensatory options
|
2,242
|
1,673
|
2,222
|
1,780
|
|||||||||
Weighted
average units outstanding - diluted
|
259,866
|
256,501
|
259,446
|
256,294
|
|||||||||
Basic
net income per unit
|
$
|
1.00
|
$
|
0.77
|
$
|
1.88
|
$
|
1.43
|
|||||
Diluted
net income per unit
|
$
|
0.99
|
$
|
0.76
|
$
|
1.86
|
$
|
1.42
|
5.
|
Commitments
and Contingencies
|
6.
|
Employee
Benefit Plans
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
(in
thousands)
|
|||||||||||||
Service
cost
|
$
|
1,127
|
$
|
1,159
|
$
|
2,254
|
$
|
2,318
|
|||||
Interest
cost on projected benefit obligations
|
1,167
|
1,143
|
2,334
|
2,286
|
|||||||||
Expected
return on plan assets
|
(948
|
)
|
(800
|
)
|
(1,896
|
)
|
(1,600
|
)
|
|||||
Amortization
of prior service credit
|
(15
|
)
|
(15
|
)
|
(30
|
)
|
(30
|
)
|
|||||
Amortization
of transition asset
|
(36
|
)
|
(36
|
)
|
(72
|
)
|
(72
|
)
|
|||||
Recognized
actuarial loss
|
99
|
162
|
198
|
324
|
|||||||||
Net
pension charge
|
$
|
1,394
|
$
|
1,613
|
$
|
2,788
|
$
|
3,226
|
7.
|
Income
Taxes
|
8.
|
Acquisition
|
9.
|
Dispositions
|
10.
|
Compensatory
Unit Award and Option
Plans
|
2006
|
2005
|
||||||
Risk-free
interest rate
|
4.9
|
%
|
3.7
|
%
|
|||
Expected
cash distribution yield
|
6.0
|
%
|
6.2
|
%
|
|||
Volatility
factor
|
31.0
|
%
|
31.0
|
%
|
|||
Expected
term
|
6.5
years
|
3
years
|
|||||
|
Holding
Units
|
Weighted
Average Exercise Price Per Holding Unit
|
||||||
Outstanding as
of January 1, 2006
|
7,450,204
|
$
|
40.45
|
||||
Granted
|
9,712
|
$
|
65.02
|
||||
Exercised
|
(1,171,117
|
)
|
$
|
38.55
|
|||
Forfeited
|
(48,100
|
)
|
$
|
38.54
|
|||
Outstanding
as of June 30, 2006
|
6,240,699
|
$
|
40.86
|
||||
Exercisable
as of June 30, 2006
|
5,237,851
|
Options Outstanding
|
Options Exercisable
|
|||||||||||||||||
Range of Exercise Prices:
|
Number
Outstanding as of June 30, 2006
|
Weighted
Average Remaining Contractual Life (Years)
|
Weighted
Average Exercise Price
|
Number
Exercisable as of June 30, 2006
|
Weighted
Average Exercise Price
|
|||||||||||||
|
|
|
|
|
|
|||||||||||||
$
|
12.56
|
-
|
$
|
18.47
|
|
437,400
|
|
1.22
|
$
|
17.05
|
|
437,400
|
|
$
|
17.05
|
|
||
25.63
|
-
|
30.25
|
|
971,500
|
|
3.05
|
$
|
28.59
|
|
967,500
|
|
$
|
28.60
|
|
||||
32.52
|
-
|
48.50
|
|
2,455,337
|
|
5.53
|
$
|
39.29
|
|
1,752,201
|
|
$
|
41.61
|
|
||||
50.15
|
-
|
50.56
|
|
1,305,750
|
|
5.43
|
$
|
50.25
|
|
1,019,750
|
|
$
|
50.26
|
|
||||
51.10
|
-
|
65.02
|
|
1,070,712
|
|
4.51
|
$
|
53.88
|
|
1,061,000
|
|
$
|
53.78
|
|
||||
$
|
12.56
|
-
|
$
|
65.02
|
|
6,240,699
|
|
4.64
|
$
|
40.86
|
|
5,237,851
|
|
$
|
41.30
|
|
Holding
Units
|
Weighted Average
Exercise Price Per Holding Unit
|
|
|||||
Unvested
as of January 1, 2006
|
1,083,504
|
$
|
38.47
|
||||
Granted
|
9,712
|
$
|
65.02
|
||||
Vested
|
(42,268
|
)
|
$
|
42.87
|
|||
Forfeited
|
(48,100
|
)
|
$
|
38.54
|
|||
Unvested
as of June 30, 2006
|
1,002,848
|
$
|
38.54
|
Holding
Units
|
||||
Unvested
as of January 1, 2006
|
53,250
|
|||
Granted
|
36,020
|
|||
Vested
|
(25,855
|
)
|
||
Forfeited
|
(1,135
|
)
|
||
Unvested
as of June 30, 2006
|
62,280
|
11.
|
Accounting
Pronouncements
|
/s/
PricewaterhouseCoopers LLP
|
|
New
York, New York
|
|
August
4, 2006
|
/s/
KPMG LLP
|
|
New
York, New York
|
|
August 4,
2005
|
Item 2. |
Management’s
Discussion and Analysis of Financial Condition
and Results
of Operations
|
As
of June 30,
|
|||||||||||||
2006
|
2005
|
$
Change
|
%
Change
|
||||||||||
Institutional
Investments
|
$
|
396.0
|
$
|
316.7
|
$
|
79.3
|
25.0
|
%
|
|||||
Retail
|
146.4
|
132.0
|
14.4
|
10.9
|
|||||||||
Private
Client
|
82.8
|
67.3
|
15.5
|
23.1
|
|||||||||
Total
|
$
|
625.2
|
$
|
516.0
|
$
|
109.2
|
21.2
|
As
of June 30,
|
|||||||||||||
2006
|
2005
|
$
Change
|
%
Change
|
||||||||||
Growth
Equity:
|
|||||||||||||
U.S.
|
$
|
77.7
|
$
|
76.0
|
$
|
1.7
|
2.3
|
%
|
|||||
Global &
international
|
79.3
|
46.9
|
32.4
|
69.2
|
|||||||||
157.0
|
122.9
|
34.1
|
27.8
|
||||||||||
Value
Equity:
|
|||||||||||||
U.S.
|
107.7
|
102.3
|
5.4
|
5.3
|
|||||||||
Global &
international
|
164.7
|
99.9
|
64.8
|
64.8
|
|||||||||
272.4
|
202.2
|
70.2
|
34.7
|
||||||||||
Fixed
Income:
|
|||||||||||||
U.S.
|
105.8
|
112.3
|
(6.5
|
)
|
(5.7
|
)
|
|||||||
Global &
international
|
60.0
|
49.9
|
10.1
|
20.1
|
|||||||||
165.8
|
162.2
|
3.6
|
2.2
|
||||||||||
Index/Structured:
|
|||||||||||||
U.S.
|
24.7
|
23.9
|
0.8
|
2.9
|
|||||||||
Global &
international
|
5.3
|
4.8
|
0.5
|
11.9
|
|||||||||
30.0
|
28.7
|
1.3
|
4.4
|
||||||||||
Total:
|
|||||||||||||
U.S.
|
315.9
|
314.5
|
1.4
|
0.5
|
|||||||||
Global &
international
|
309.3
|
201.5
|
107.8
|
53.5
|
|||||||||
Total
|
$
|
625.2
|
$
|
516.0
|
$
|
109.2
|
21.2
|
Distribution
Channel
|
Investment
Service
|
|||||||||||||||||||||||||||
Institutional
Investments
|
Retail
|
Private
Client
|
Total
|
Growth
Equity
|
Value
Equity
|
Fixed
Income
|
Index/
Structured
|
Total
|
||||||||||||||||||||
Balance
as of April 1, 2006
|
$
|
389.9
|
$
|
145.9
|
$
|
81.8
|
$
|
617.6
|
$
|
159.4
|
$
|
263.0
|
$
|
164.4
|
$
|
30.8
|
$
|
617.6
|
||||||||||
Long-term
flows:
|
||||||||||||||||||||||||||||
Sales/new
accounts
|
15.5
|
13.3
|
4.0
|
32.8
|
10.6
|
15.9
|
5.8
|
0.5
|
32.8
|
|||||||||||||||||||
Redemptions/terminations
|
(3.3
|
)
|
(7.9
|
)
|
(0.7
|
)
|
(11.9
|
)
|
(3.7
|
)
|
(3.8
|
)
|
(3.5
|
)
|
(0.9
|
)
|
(11.9
|
)
|
||||||||||
Cash
flow/unreinvested dividends
|
(2.5
|
)
|
(0.7
|
)
|
(0.8
|
)
|
(4.0
|
)
|
(0.3
|
)
|
(2.4
|
)
|
(1.3
|
)
|
—
|
(4.0
|
)
|
|||||||||||
Net
long-term inflows/ (outflows)
|
9.7
|
4.7
|
2.5
|
16.9
|
6.6
|
9.7
|
1.0
|
(0.4
|
)
|
16.9
|
||||||||||||||||||
Acquisition
|
0.3
|
0.1
|
—
|
0.4
|
0.3
|
—
|
0.1
|
—
|
0.4
|
|||||||||||||||||||
Market
(depreciation)/ appreciation
|
(3.9
|
)
|
(4.3
|
)
|
(1.5
|
)
|
(9.7
|
)
|
(9.3
|
)
|
(0.3
|
)
|
0.3
|
(0.4
|
)
|
(9.7
|
)
|
|||||||||||
Net
change
|
6.1
|
0.5
|
1.0
|
7.6
|
(2.4
|
)
|
9.4
|
1.4
|
(0.8
|
)
|
7.6
|
|||||||||||||||||
Balance
as of June 30, 2006
|
$
|
396.0
|
$
|
146.4
|
$
|
82.8
|
$
|
625.2
|
$
|
157.0
|
$
|
272.4
|
$
|
165.8
|
$
|
30.0
|
$
|
625.2
|
Distribution
Channel
|
Investment
Service
|
|||||||||||||||||||||||||||
Institutional
Investments
|
Retail
|
Private
Client
|
Total
|
Growth
Equity
|
Value
Equity
|
Fixed
Income
|
Index/
Structured
|
Total
|
||||||||||||||||||||
Balance
as of Jan 1, 2006
|
$
|
358.6
|
$
|
145.1
|
$
|
74.9
|
$
|
578.6
|
$
|
146.2
|
$
|
238.2
|
$
|
164.1
|
$
|
30.1
|
$
|
578.6
|
||||||||||
Long-term
flows:
|
||||||||||||||||||||||||||||
Sales/new
accounts
|
26.7
|
24.5
|
8.0
|
59.2
|
21.0
|
26.9
|
10.5
|
0.8
|
59.2
|
|||||||||||||||||||
Redemptions/terminations
|
(5.7
|
)
|
(15.3
|
)
|
(1.4
|
)
|
(22.4
|
)
|
(7.8
|
)
|
(7.1
|
)
|
(6.4
|
)
|
(1.1
|
)
|
(22.4
|
)
|
||||||||||
Cash
flow/unreinvested dividends
|
(5.8
|
)
|
(0.7
|
)
|
(1.4
|
)
|
(7.9
|
)
|
(0.8
|
)
|
(4.7
|
)
|
(1.5
|
)
|
(0.9
|
)
|
(7.9
|
)
|
||||||||||
Net
long-term inflows/ (outflows)
|
15.2
|
8.5
|
5.2
|
28.9
|
12.4
|
15.1
|
2.6
|
(1.2
|
)
|
28.9
|
||||||||||||||||||
Acquisition
|
0.3
|
0.1
|
—
|
0.4
|
0.3
|
—
|
0.1
|
—
|
0.4
|
|||||||||||||||||||
Transfers
|
7.9
|
(9.1
|
)
|
1.2
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Market
appreciation/ (depreciation)
|
14.0
|
1.8
|
1.5
|
17.3
|
(1.9
|
)
|
19.1
|
(1.0
|
)
|
1.1
|
17.3
|
|||||||||||||||||
Net
change
|
37.4
|
1.3
|
7.9
|
46.6
|
10.8
|
34.2
|
1.7
|
(0.1
|
)
|
46.6
|
||||||||||||||||||
Balance
as of June 30, 2006
|
$
|
396.0
|
$
|
146.4
|
$
|
82.8
|
$
|
625.2
|
$
|
157.0
|
$
|
272.4
|
$
|
165.8
|
$
|
30.0
|
$
|
625.2
|
Distribution
Channel
|
Investment
Service
|
|||||||||||||||||||||||||||
Institutional
Investments
|
Retail
|
Private
Client
|
Total
|
Growth
Equity
|
Value
Equity
|
Fixed
Income
|
Index/
Structured
|
Total
|
||||||||||||||||||||
Balance
as of July 1, 2005
|
$
|
316.7
|
$
|
132.0
|
$
|
67.3
|
$
|
516.0
|
$
|
122.9
|
$
|
202.2
|
$
|
162.2
|
$
|
28.7
|
$
|
516.0
|
||||||||||
Long-term
flows:
|
||||||||||||||||||||||||||||
Sales/new
accounts
|
49.7
|
41.7
|
13.3
|
104.7
|
38.1
|
45.2
|
20.4
|
1.0
|
104.7
|
|||||||||||||||||||
Redemptions/terminations
|
(12.2
|
)
|
(28.2
|
)
|
(2.8
|
)
|
(43.2
|
)
|
(16.6
|
)
|
(12.8
|
)
|
(12.1
|
)
|
(1.7
|
)
|
(43.2
|
)
|
||||||||||
Cash
flow/unreinvested dividends
|
(6.1
|
)
|
(1.3
|
)
|
(2.4
|
)
|
(9.8
|
)
|
(3.0
|
)
|
(3.4
|
)
|
(2.4
|
)
|
(1.0
|
)
|
(9.8
|
)
|
||||||||||
Net
long-term inflows/ (outflows)
|
31.4
|
12.2
|
8.1
|
51.7
|
18.5
|
29.0
|
5.9
|
(1.7
|
)
|
51.7
|
||||||||||||||||||
Acquisition
|
0.3
|
0.1
|
—
|
0.4
|
0.3
|
—
|
0.1
|
—
|
0.4
|
|||||||||||||||||||
Dispositions
|
(1.4
|
)
|
(0.3
|
)
|
—
|
(1.7
|
)
|
(1.2
|
)
|
—
|
(0.5
|
)
|
—
|
(1.7
|
)
|
|||||||||||||
Transfers
|
8.5
|
(9.2
|
)
|
0.7
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Market
appreciation/ (depreciation)
|
40.5
|
11.6
|
6.7
|
58.8
|
16.5
|
41.2
|
(1.9
|
)
|
3.0
|
58.8
|
||||||||||||||||||
Net
change
|
79.3
|
14.4
|
15.5
|
109.2
|
34.1
|
70.2
|
3.6
|
1.3
|
109.2
|
|||||||||||||||||||
Balance
as of June 30, 2006
|
$
|
396.0
|
$
|
146.4
|
$
|
82.8
|
$
|
625.2
|
$
|
157.0
|
$
|
272.4
|
$
|
165.8
|
$
|
30.0
|
$
|
625.2
|
Three
Months Ended
|
Six
Months Ended
|
||||||||||||||||||||||||
6/30/06
|
6/30/05
|
$
Change
|
%
Change
|
6/30/06
|
6/30/05
|
$
Change
|
%
Change
|
||||||||||||||||||
Distribution
Channel:
|
|||||||||||||||||||||||||
Institutional
Investments
|
$
|
395.9
|
$
|
312.2
|
$
|
83.7
|
26.8
|
%
|
$
|
387.2
|
$
|
312.1
|
$
|
75.1
|
24.1
|
%
|
|||||||||
Retail
|
146.9
|
144.4
|
2.5
|
1.7
|
145.7
|
152.2
|
(6.5
|
)
|
(4.3
|
)
|
|||||||||||||||
Private
Client
|
82.6
|
65.8
|
16.8
|
25.4
|
80.6
|
65.2
|
15.4
|
23.7
|
|||||||||||||||||
Total
|
$
|
625.4
|
$
|
522.4
|
$
|
103.0
|
19.7
|
$
|
613.5
|
$
|
529.5
|
$
|
84.0
|
15.9
|
Three
Months Ended
|
Six
Months Ended
|
||||||||||||||||||||||||
6/30/06
|
6/30/05
|
$
Change
|
%
Change
|
6/30/06
|
6/30/05
|
$
Change
|
%
Change
|
||||||||||||||||||
Investment
Service:
|
|||||||||||||||||||||||||
Growth
Equity
|
$
|
158.8
|
$
|
119.5
|
$
|
39.3
|
32.9
|
%
|
$
|
156.4
|
$
|
120.3
|
$
|
36.1
|
30.0
|
%
|
|||||||||
Value
Equity
|
270.4
|
196.3
|
74.1
|
37.7
|
261.2
|
195.3
|
65.9
|
33.7
|
|||||||||||||||||
Fixed
Income
|
165.4
|
177.9
|
(12.5
|
)
|
(7.0
|
)
|
165.2
|
184.8
|
(19.6
|
)
|
(10.6
|
)
|
|||||||||||||
Index/Structured
|
30.8
|
28.7
|
2.1
|
7.3
|
30.7
|
29.1
|
1.6
|
5.7
|
|||||||||||||||||
Total
|
$
|
625.4
|
$
|
522.4
|
$
|
103.0
|
19.7
|
$
|
613.5
|
$
|
529.5
|
$
|
84.0
|
15.9
|
Three
Months Ended
|
Six
Months Ended
|
||||||||||||||||||||||||
6/30/06
|
6/30/05
|
$
Change
|
%
Change
|
6/30/06
|
6/30/05
|
$
Change
|
%
Change
|
||||||||||||||||||
(in
millions, except per unit amounts)
|
|||||||||||||||||||||||||
Net
revenues
|
$
|
933.3
|
$
|
756.3
|
$
|
177.0
|
23.4
|
%
|
$
|
1,829.0
|
$
|
1,506.8
|
$
|
322.2
|
21.4
|
%
|
|||||||||
Expenses
|
669.8
|
556.8
|
113.0
|
20.3
|
1,325.7
|
1,128.3
|
197.4
|
17.5
|
|||||||||||||||||
Operating
income
|
263.5
|
199.5
|
64.0
|
32.1
|
503.3
|
378.5
|
124.8
|
33.0
|
|||||||||||||||||
Non-operating
income
|
9.7
|
12.3
|
(2.6
|
)
|
(21.0
|
)
|
13.2
|
12.0
|
1.2
|
9.8
|
|||||||||||||||
Income
before income taxes
|
273.2
|
211.8
|
61.4
|
29.0
|
516.5
|
390.5
|
126.0
|
32.3
|
|||||||||||||||||
Income
taxes
|
12.1
|
13.8
|
(1.7
|
)
|
(11.8
|
)
|
27.8
|
24.0
|
3.8
|
15.9
|
|||||||||||||||
Net
income
|
$
|
261.1
|
$
|
198.0
|
$
|
63.1
|
31.9
|
$
|
488.7
|
$
|
366.5
|
$
|
122.2
|
33.3
|
|||||||||||
Diluted
net income per unit
|
$
|
0.99
|
$
|
0.76
|
$
|
0.23
|
30.3
|
$
|
1.86
|
$
|
1.42
|
$
|
0.44
|
31.0
|
|||||||||||
Distributions
per unit
|
$
|
0.99
|
$
|
0.76
|
$
|
0.23
|
30.3
|
$
|
1.86
|
$
|
1.39
|
$
|
0.47
|
33.8
|
|||||||||||
Pre-tax
margin (1)
|
29.3
|
%
|
28.0
|
%
|
28.2
|
%
|
25.9
|
%
|
(1)
|
Income
before income taxes as a percentage of net
revenues.
|
Three
Months Ended
|
Six
Months Ended
|
||||||||||||||||||||||||
6/30/06
|
6/30/05
|
$
Change
|
%
Change
|
6/30/06
|
6/30/05
|
$
Change
|
%
Change
|
||||||||||||||||||
(in
millions)
|
|||||||||||||||||||||||||
Investment
advisory and services fees:
|
|||||||||||||||||||||||||
Institutional
Investments:
|
|||||||||||||||||||||||||
Base
fees
|
$
|
271.5
|
$
|
192.0
|
$
|
79.5
|
41.4
|
%
|
$
|
523.3
|
$
|
379.0
|
$
|
144.3
|
38.1
|
%
|
|||||||||
Performance
fees
|
36.6
|
24.7
|
11.9
|
48.6
|
50.1
|
31.4
|
18.7
|
59.6
|
|||||||||||||||||
308.1
|
216.7
|
91.4
|
42.2
|
573.4
|
410.4
|
163.0
|
39.7
|
||||||||||||||||||
Retail:
|
|||||||||||||||||||||||||
Base
fees
|
192.9
|
162.9
|
30.0
|
18.5
|
379.6
|
345.3
|
34.3
|
9.9
|
|||||||||||||||||
Performance
fees
|
(0.1
|
)
|
(0.1
|
)
|
-
|
-
|
(0.2
|
)
|
-
|
(0.2
|
)
|
n/m
|
|||||||||||||
192.8
|
162.8
|
30.0
|
18.5
|
379.4
|
345.3
|
34.1
|
9.9
|
||||||||||||||||||
Private
Client:
|
|||||||||||||||||||||||||
Base
fees
|
189.0
|
149.7
|
39.3
|
26.3
|
364.4
|
289.9
|
74.5
|
25.7
|
|||||||||||||||||
Performance
fees
|
0.3
|
(0.4
|
)
|
0.7
|
n/m
|
(0.3
|
)
|
0.6
|
(0.9
|
)
|
n/m
|
||||||||||||||
189.3
|
149.3
|
40.0
|
26.8
|
364.1
|
290.5
|
73.6
|
25.4
|
||||||||||||||||||
Total:
|
|||||||||||||||||||||||||
Base
fees
|
653.4
|
504.6
|
148.8
|
29.5
|
1,267.3
|
1,014.2
|
253.1
|
25.0
|
|||||||||||||||||
Performance
fees
|
36.8
|
24.2
|
12.6
|
52.2
|
49.6
|
32.0
|
17.6
|
54.9
|
|||||||||||||||||
690.2
|
528.8
|
161.4
|
30.5
|
1,316.9
|
1,046.2
|
270.7
|
25.9
|
||||||||||||||||||
Distribution
revenues
|
104.5
|
97.8
|
6.7
|
6.9
|
207.3
|
205.6
|
1.7
|
0.8
|
|||||||||||||||||
Institutional
research services
|
102.6
|
80.4
|
22.2
|
27.5
|
198.4
|
174.4
|
24.0
|
13.7
|
|||||||||||||||||
Dividend
and interest income
|
61.5
|
30.6
|
30.9
|
100.6
|
116.8
|
55.7
|
61.1
|
109.6
|
|||||||||||||||||
Investment
gains (losses)
|
(15.5
|
)
|
6.8
|
(22.3
|
)
|
n/m
|
10.7
|
1.1
|
9.6
|
n/m
|
|||||||||||||||
Other
revenues
|
35.9
|
32.0
|
3.9
|
12.5
|
69.5
|
60.9
|
8.6
|
14.2
|
|||||||||||||||||
Total
revenues
|
979.2
|
776.4
|
202.8
|
26.1
|
1,919.6
|
1,543.9
|
375.7
|
24.3
|
|||||||||||||||||
Less:
Interest expense
|
45.9
|
20.1
|
25.8
|
128.2
|
90.6
|
37.1
|
53.5
|
144.3
|
|||||||||||||||||
Net
Revenues
|
$
|
933.3
|
$
|
756.3
|
$
|
177.0
|
23.4
|
$
|
1,829.0
|
$
|
1,506.8
|
$
|
322.2
|
21.4
|
|
|
Three
Months Ended
|
|
|
|
Six
Months Ended
|
|
|
|||||||||||||||||
6/30/06
|
6/30/05
|
$
Change
|
%
Change
|
6/30/06
|
6/30/05
|
$
Change
|
%
Change
|
||||||||||||||||||
(in
millions)
|
|||||||||||||||||||||||||
Employee
compensation and benefits
|
$
|
373.8
|
$
|
308.7
|
$
|
65.1
|
21.1
|
%
|
$
|
744.1
|
$
|
593.7
|
$
|
150.4
|
25.3
|
%
|
|||||||||
Promotion
and servicing
|
156.3
|
155.3
|
1.0
|
0.6
|
302.6
|
330.4
|
(27.8
|
)
|
(8.4
|
)
|
|||||||||||||||
General
and administrative
|
127.7
|
81.3
|
46.4
|
57.1
|
254.3
|
181.2
|
73.1
|
40.4
|
|||||||||||||||||
Interest
|
6.8
|
6.3
|
0.5
|
8.7
|
14.3
|
12.6
|
1.7
|
13.6
|
|||||||||||||||||
Amortization
of intangible assets
|
5.2
|
5.2
|
—
|
—
|
10.4
|
10.4
|
—
|
—
|
|||||||||||||||||
Total
|
$
|
669.8
|
$
|
556.8
|
$
|
113.0
|
20.3
|
$
|
1,325.7
|
$
|
1,128.3
|
$
|
197.4
|
17.5
|
Six
Months Ended June 30,
|
||||||||||
2006
|
2005
|
%
Change
|
||||||||
(in millions)
|
||||||||||
Partners’
capital, as of June 30
|
$
|
4,375.8
|
$
|
4,201.1
|
4.2
|
%
|
||||
Cash
flow from operations
|
749.9
|
243.5
|
208.0
|
|||||||
Purchases
of investments
|
(42.0
|
)
|
(6.7
|
)
|
529.9
|
|||||
Capital
expenditures
|
(49.6
|
)
|
(46.7
|
)
|
6.2
|
|||||
Cash
distributions
|
(517.2
|
)
|
(393.1
|
)
|
31.6
|
|||||
Purchases
of Holding Units
|
(18.4
|
)
|
(6.9
|
)
|
165.4
|
|||||
Issuance
of Holding Units
|
47.2
|
—
|
n/m
|
|||||||
Additional
investments by Holding with proceeds from exercise of compensatory
options
to buy Holding Units
|
45.6
|
27.5
|
66.0
|
|||||||
Issuance
(repayment) of commercial paper, net
|
5.4
|
(0.2
|
)
|
n/m
|
June
30, 2006
|
December
31, 2005
|
||||||||||||||||||
Credit
Available
|
Debt
Outstanding
|
Interest
Rate
|
Credit
Available
|
Debt
Outstanding
|
Interest
Rate
|
||||||||||||||
(in
millions)
|
|||||||||||||||||||
Senior
Notes
|
$
|
600.0
|
$
|
399.9
|
5.6
|
%
|
$
|
600.0
|
$
|
399.7
|
5.6
|
%
|
|||||||
Commercial
paper(1)
|
800.0
|
7.0
|
5.3
|
425.0
|
—
|
—
|
|||||||||||||
Revolving
credit facility(1)
|
—
|
—
|
—
|
375.0
|
—
|
—
|
|||||||||||||
Extendible
commercial notes
|
100.0
|
—
|
—
|
100.0
|
—
|
—
|
|||||||||||||
Other
|
—
|
8.0
|
3.7
|
—
|
7.6
|
4.6
|
|||||||||||||
Total
|
$
|
1,500.0
|
$
|
414.9
|
5.6
|
$
|
1,500.0
|
$
|
407.3
|
5.6
|
(1) |
Our
revolving credit facility supports our commercial paper program;
amounts
borrowed under the commercial paper program reduce amounts available
for
other purposes under the revolving credit facility on a dollar-for-dollar
basis.
|
Item 3. |
Quantitative
and Qualitative Disclosures About Market
Risk
|
Item
4.
|
Controls
and
Procedures
|
Item
1.
|
Legal
Proceedings
|
Item
1A.
|
Risk
Factors
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of
Proceeds
|
Item
3.
|
Defaults
Upon Senior
Securities
|
Item
4.
|
Submission
of Matters to a Vote of Security
Holders
|
Item
5.
|
Other
Information
|
Item
6.
|
Exhibits
|
Letter
from PricewaterhouseCoopers LLP, our Independent Registered Public
Accounting Firm, re: unaudited interim financial
information.
|
Letter
from KPMG LLP re: unaudited interim financial
information.
|
Certification
of Mr. Sanders furnished pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
|
Certification
of Mr. Joseph furnished pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
|
Certification
of Mr. Sanders furnished for the purpose of complying with
Rule 13a-14(b) or Rule 15d-14(b) of the Securities
Exchange Act of 1934 and 18 U.S.C. Section 1350, as adopted pursuant
to Section 906 of the Sarbanes-Oxley Act of
2002.
|
Certification
of Mr. Joseph furnished for the purpose of complying with
Rule 13a-14(b) or Rule 15d-14(b) of the Securities
Exchange Act of 1934 and 18 U.S.C. Section 1350, as adopted pursuant
to Section 906 of the Sarbanes-Oxley Act of
2002.
|
Dated:
August 4, 2006
|
ALLIANCEBERNSTEIN
L.P.
|
||
By:
|
/s/
Robert H. Joseph, Jr.
|
||
Robert
H. Joseph, Jr.
|
|||
Senior
Vice President and
Chief
Financial Officer
|
/s/
PricewaterhouseCoopers LLP
|
|
New
York, New York
|
/s/
KPMG LLP
|
|
New
York, New York
|
1.
|
I
have reviewed this quarterly report on Form 10-Q of AllianceBernstein
L.P.;
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement
of a
material fact or omit to state a material fact necessary to make
the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects
the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
4.
|
The
registrant’s other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and
internal control over financial reporting (as defined in Exchange
Act
Rules 13a-15(f) and 15d-15(f)) for the registrant and
have:
|
a) |
designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to
ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is
being
prepared;
|
b) |
designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision,
to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
c) |
evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness
of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
|
d) |
disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely
to
materially affect, the registrant’s internal control over financial
reporting; and
|
5. |
The
registrant’s other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting,
to
the registrant’s auditors and the audit committee of the registrant’s
board of directors (or persons performing the equivalent
functions):
|
a)
|
all
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
b)
|
any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|
Date:
August 4, 2006
|
/s/
Lewis A. Sanders
|
|
Lewis
A. Sanders
|
||
Chief
Executive Officer
|
||
AllianceBernstein
L.P.
|
1.
|
I
have reviewed this quarterly report on Form 10-Q of AllianceBernstein
L.P.;
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement
of a
material fact or omit to state a material fact necessary to make
the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects
the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
4.
|
The
registrant’s other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and
internal control over financial reporting (as defined in Exchange
Act
Rules 13a-15(f) and 15d-15(f)) for the registrant and
have:
|
a) |
designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to
ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is
being
prepared;
|
b) |
designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision,
to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
c) |
evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness
of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
|
d) |
disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely
to
materially affect, the registrant’s internal control over financial
reporting; and
|
5. |
The
registrant’s other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting,
to
the registrant’s auditors and the audit committee of the registrant’s
board of directors (or persons performing the equivalent
functions):
|
a) |
all
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
b) |
any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|
Date:
August 4, 2006
|
/s/
Robert H. Joseph, Jr.
|
|
Robert
H. Joseph, Jr.
|
||
Chief
Financial Officer
|
||
AllianceBernstein
L.P.
|
(1) |
The
Report fully complies with the requirements of section 13(a) or
15(d) of the Exchange Act; and
|
(2) |
The
information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the
Company.
|
Date:
August 4, 2006
|
/s/
Lewis A. Sanders
|
|
Lewis
A. Sanders
|
||
Chief
Executive Officer
|
||
AllianceBernstein
L.P.
|
(1) |
The
Report fully complies with the requirements of section 13(a) or
15(d) of the Exchange Act; and
|
(2) |
The
information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the
Company.
|
Date:
August 4, 2006
|
/s/
Robert H. Joseph, Jr.
|
|
Robert
H. Joseph, Jr.
|
||
Chief
Financial Officer
|
||
AllianceBernstein
L.P.
|