EX-99.13 2 a04-8290_2ex99d13.htm EX-99.13

Exhibit 99.13

 

 

News Release

 

 

 

FOR IMMEDIATE RELEASE

 

Contacts:

 

Valerie Haertel (Investor Relations)

 

John Meyers (Media)

 

 

(212) 969-6414

 

(212) 969-2301

 

 

investor_relations@acml.com

 

john_meyers@acml.com

 

 

ALLIANCE CAPITAL ANNOUNCES SECOND QUARTER 2004 RESULTS

 

Alliance Capital Management Holding L.P. Announces Diluted Net Income of $0.53 per Unit
and Declares a $0.53 per Unit Cash Distribution

 

New York, NY, July 27, 2004 – Alliance Capital Management Holding L.P. (“Alliance Holding”) (NYSE: AC), and Alliance Capital Management L.P. (“Alliance Capital”), today reported results for the second quarter of 2004.

 

 

Alliance Holding (The Publicly Traded Partnership):

•       Diluted net income per Unit for the quarter ended June 30, 2004 was $0.53, up 3.9%, compared to $0.51 for the same period in 2003.

•       Distribution per Unit for the second quarter is $0.53, compared to $0.51 for the second quarter of 2003.  The second quarter distribution is payable on August 16, 2004 to record holders of Alliance Holding Units at the close of business on August 6, 2004.

 

 

Alliance Capital (The Operating Partnership):

•       Assets Under Management (AUM) at June 30, 2004 were $481 billion, a 12.8% increase from a year ago, due primarily to equity market appreciation.

•       Average AUM was $477 billion for the quarter ended June 30, 2004, an increase of 16.3% from the same quarter a year ago.

•       Long-term net asset inflows for the three months ended June 30, 2004 were $1.4 billion.  Institutional Investment Management and Private Client experienced net asset inflows of $1.2 billion and $1.1 billion, respectively, which were partially offset by Retail net asset outflows of $0.9 billion. Cash Management outflows were $2.9 billion.

•       Long-term net asset inflows for the twelve months ended June 30, 2004 were $0.9 billion. Private Client and Institutional Investment Management inflows were $4.9 billion and $1.1 billion, respectively, while Retail experienced net asset outflows of $5.1 billion.  Cash management outflows were $4.6 billion.

 

 

Page 2 of 9 Alliance Capital

 

 

“On the most important metric, investment returns for our clients, second quarter results were satisfactory, with many services performing at or above benchmarks for the quarter and the first half,” Lewis Sanders, Chief Executive Officer said.

 

 

“New business volume improved substantially as compared to the first quarter, led by global services in the institutional market. Asset inflows remained strong in our private client business, but, as expected, results in the retail channel were depressed with the exception of managed accounts where growth accelerated noticeably. Attrition in U.S. growth services continued to be relatively high, holding net long-term assets inflows firm wide to a modest level.

 

 

“Profit margins were pressured by a rise in general and administrative costs related, in part, to non-recurring factors. Such costs are expected to decline from second quarter levels during the balance of the year but they are likely to remain well above last year’s run rate owing primarily to increased occupancy costs and additional provisions for related restructuring actions.

 

 

“Substantial progress was made in a range of initiatives during the quarter, especially in research. Development was completed on a new tool to improve forecast accuracy, which holds promise to add measurably to client investment returns.

 

 

“Ultimately, success in our business rests on delivering superior investment performance to our clients. Our global investment platforms in growth equities, value equities and fixed income, enhanced by continuing innovations in research, encourage us that we can deliver on this imperative,” Mr. Sanders concluded.

 
SUMMARY FINANCIAL RESULTS OF ALLIANCE CAPITAL MANAGEMENT L.P.
(THE OPERATING PARTNERSHIP)

($ millions)

 

 

 

Three Months Ended

 

%

 

 

 

6/30/04

 

6/30/03

 

Change

 

 

 

 

 

 

 

 

 

Revenues

 

$737

 

$662

 

11.4

%

Expenses

 

571

 

506

 

13.0

 

Income Before Taxes

 

166

 

156

 

6.2

 

 

 

 

 

 

 

 

 

Income Taxes

 

10

 

8

 

23.3

 

 

 

 

 

 

 

 

 

Net Income

 

$156

 

$148

 

5.2

%

 

 

 

 

 

 

 

 

Pre-tax Margin (1)

 

22.5

%

23.6

%

 

 

 

(1)  Pre-tax income as a percentage of revenues

 

Note:  Percentages are calculated using underlying numbers

 

 

 

 

 

 

 

 

Page 3 of 9 Alliance Capital

 

 

•       Revenues and Expenses for the second quarter were each increased by approximately $10 million owing to the effects of FIN 46 consolidations.

•       Expenses include a write-off of capitalized software of approximately $12 million and incremental insurance recoveries of approximately $8 million from previously incurred legal expenses.

 

 

CONFERENCE CALL INFORMATION RELATING TO SECOND QUARTER 2004 RESULTS

 

 

Alliance Capital’s management will review second quarter 2004 financial and operating results on Tuesday, July 27, 2004, during a conference call at 5:00 p.m. (New York Time).  The call will be hosted by Chief Executive Officer, Lewis A. Sanders, 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 888-428-4479 in the U.S. or 612-332-0107 outside the U.S., ten minutes before the 5:00 p.m. (New York Time) scheduled start time.  Please indicate access code “Alliance” when dialing in.

2.     To listen by webcast, please visit Alliance Capital’s Investor Relations website at http://ir.alliancecapital.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 available on Alliance Capital’s website at the above web address.

A replay of the conference call will be made available for one week beginning at 8:00 p.m. (New York Time) July 27, 2004.  In the U.S. please call 800-475-6701 or for callers outside the U.S. 320-365-3844, and provide the access code 738447.  The replay will also be available via webcast on Alliance Capital’s website for one week.

 

 

ABOUT ALLIANCE CAPITAL

Alliance Capital is a leading global investment management firm providing 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. Alliance Capital is also one of the largest mutual fund sponsors, with a diverse family of globally distributed mutual fund portfolios.  Through its Sanford C. Bernstein & Co., LLC subsidiary, Alliance provides in-depth research, portfolio strategy and trade execution to the institutional investment community.

At June 30, 2004, Alliance Holding owned approximately 31.5% of the Alliance Capital Units. AXA Financial was the beneficial owner of approximately 57.3% of the outstanding Alliance Capital Units at June 30, 2004 (including those held indirectly through its ownership of approximately 1.8% of the outstanding Alliance Holding Units), which, including the general partnership interests in Alliance Capital and Alliance Holding, represent an approximate 58.3% economic interest in Alliance Capital. AXA Financial, Inc. is a wholly-owned

 

 

Page 4 of 9 Alliance Capital

 

 

subsidiary of AXA, one of the largest global financial services organizations.  Additional information may be found at www.alliancecapital.com.

 

 

Forward-Looking Statements

Certain statements provided by Alliance Capital and Alliance Holding in this news release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements.  The most significant of such factors include, but are not limited to, the following: the performance of financial markets, the investment performance of Alliance Capital’s sponsored investment products and separately managed accounts, general economic conditions, future acquisitions, competitive conditions, and government regulations, including changes in tax rates.  Alliance Capital and Alliance Holding caution readers to carefully consider such factors.  Further, such forward-looking statements speak only as of the date on which such statements are made; Alliance Capital and Alliance Holding undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.  For further information regarding these forward-looking statements and the factors that could cause actual results to differ, please refer to the Risk Factors section in Part I of Form 10-K for the year ended December 31, 2003.  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.  It is important to remember that other factors besides those listed in the Risk Factors section of Form 10-K could also adversely affect our business, operating results or financial condition.

 

 

Page 5 of 9 Alliance Capital

 

 

ALLIANCE CAPITAL MANAGEMENT L.P.

(THE OPERATING PARTNERSHIP)

SUMMARY CONSOLIDATED STATEMENTS OF INCOME

(unaudited, in thousands)

 

 

 

Three Months Ended

 

 

 

6/30/04

 

6/30/03

 

Revenues:

 

 

 

 

 

Investment Advisory & Services Fees

 

$511,219

 

$443,680

 

Distribution Revenues

 

111,933

 

108,661

 

Institutional Research Services

 

70,980

 

68,612

 

Shareholder Servicing Fees

 

23,465

 

25,679

 

Other Revenues, Net

 

19,546

 

15,113

 

 

 

 

 

 

 

 

 

737,143

 

661,745

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

Employee Compensation & Benefits

 

261,899

 

226,671

 

Promotion & Servicing:

 

 

 

 

 

Distribution Plan Payments

 

92,804

 

91,950

 

Amortization of Deferred
Sales Commissions

 

46,693

 

52,315

 

Other

 

44,370

 

41,681

 

General & Administrative

 

113,968

 

81,406

 

Interest

 

6,299

 

6,286

 

Amortization of Intangible Assets

 

5,175

 

5,175

 

 

 

 

 

 

 

 

 

571,208

 

505,484

 

 

 

 

 

 

 

Income Before Income Taxes

 

165,935

 

156,261

 

 

 

 

 

 

 

Income Taxes

 

10,112

 

8,203

 

 

 

 

 

 

 

NET INCOME

 

$155,823

 

$148,058

 

 

 

Page 6 of 9 Alliance Capital

 

 

ALLIANCE CAPITAL MANAGEMENT HOLDING L.P.

(THE PUBLICLY TRADED PARTNERSHIP)

SUMMARY STATEMENTS OF INCOME

(unaudited, in thousands except per Unit amounts)

 

 

 

Three Months Ended

 

 

 

6/30/04

 

6/30/03

 

 

 

 

 

 

 

Equity in Earnings of Operating Partnership

 

$48,585

 

$45,108

 

 

 

 

 

 

 

Income Taxes

 

6,206

 

5,213

 

 

 

 

 

 

 

NET INCOME

 

$42,379

 

$39,895

 

 

 

 

 

 

 

Additional Equity in Earnings of Operating Partnership (1)

 

526

 

904

 

 

 

 

 

 

 

NET INCOME – Diluted (2)

 

$42,905

 

$40,799

 

 

 

 

 

 

 

DILUTED NET INCOME PER UNIT

 

$   0.53

 

$   0.51

 

 

 

 

 

 

 

DISTRIBUTIONS PER UNIT

 

$   0.53

 

$   0.51

 

 

(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.

 

 

 

ALLIANCE CAPITAL AND ALLIANCE HOLDING

UNITS AND WEIGHTED AVERAGE UNITS OUTSTANDING

JUNE 30, 2004

 

 

 

 

 

 

Weighted Average Units

 

 

 

Period Ending Units
Outstanding

 

Three Months Ended

 

 

 

 

 

 

 

 

 

Basic

 

Diluted

 

Alliance Capital

 

253,250,267

 

 

253,110,823

 

 

254,555,932

 

 

 

 

 

 

 

 

 

 

 

 

 

Alliance Holding

 

79,856,424

 

 

79,716,980

 

 

81,162,089

 

 

 

 

Page 7 of 9 Alliance Capital

 

 

ALLIANCE CAPITAL MANAGEMENT L.P.

(THE OPERATING PARTNERSHIP)

ASSETS UNDER MANAGEMENT

THREE MONTHS ENDED JUNE 30, 2004

($ millions)

 

 

 

Institutional
Investment
Management

 

 

Retail

 

 

Private
Client

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of Period

 

$270,688

 

 

$158,735

 

 

$54,195

 

 

$483,618

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Flows

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales/New accounts

 

9,976

 

 

6,162

 

 

2,056

 

 

18,194

 

 

Redemptions/Terminations

 

(4,452

)

 

(6,872

)

 

(690

)

 

(12,014

)

 

Cash flow

 

(4,346

)

 

38

 

 

(308

)

 

(4,616

)

 

Unreinvested dividends

 

-

 

 

(214

)

 

27

 

 

(187

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net new long-term inflows(outflows)

 

1,178

 

 

(886

)

 

1,085

 

 

1,377

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash management, sales

 

-

 

 

(2,927

)

 

-

 

 

(2,927

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market depreciation

 

(76

)

 

(1,199

)

 

(182

)

 

(1,457

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

End of Period

 

$271,790

 

 

$153,723

 

 

$55,098

 

 

$480,611

 

 

 

 

ALLIANCE CAPITAL MANAGEMENT L.P.

(THE OPERATING PARTNERSHIP)

ASSETS UNDER MANAGEMENT

TWELVE MONTHS ENDED JUNE 30, 2004

($ millions)

 

 

 

 

Institutional
Investment
Management

 

 

Retail

 

 

Private
Client

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of Period

 

$234,574

 

 

$147,037

 

 

$44,592

 

 

$426,203

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Flows

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales/New accounts

 

33,987

 

 

25,093

 

 

8,159

 

 

67,239

 

 

Redemptions/Terminations

 

(26,785

)

 

(28,231

)

 

(2,320

)

 

(57,336

)

 

Cash flow

 

(6,059

)

 

(1,112

)

 

(841

)

 

(8,012

)

 

Unreinvested dividends

 

(1

)

 

(844

)

 

(119

)

 

(964

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net new long-term inflows(outflows)

 

1,142

 

 

(5,094

)

 

4,879

 

 

927

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash management, sales

 

-

 

 

(4,622

)

 

-

 

 

(4,622

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market appreciation

 

36,074

 

 

16,402

 

 

5,627

 

 

58,103

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

End of Period

 

$271,790

 

 

$153,723

 

 

$55,098

 

 

$480,611

 

 

 

 

Page 8 of 9 Alliance Capital

 

 

ALLIANCE CAPITAL MANAGEMENT L.P.

(THE OPERATING PARTNERSHIP)

ASSETS UNDER MANAGEMENT

($ millions)

 

 

 

Three Month Period

 

 

 

6/30/04

 

6/30/03

 

 

 

 

 

 

 

Average Assets Under Management

 

$476,782

 

$409,917

 

 

 

 

 

 

 

Ending Assets Under Management

 

$480,611

 

$426,203

 

 

 

ALLIANCE CAPITAL MANAGEMENT L.P.

(THE OPERATING PARTNERSHIP)

ASSETS UNDER MANAGEMENT

BY INVESTMENT ORIENTATION

AT JUNE 30, 2004

($ millions)

 

 

 

Institutional
Investment
Management

 

Retail

 

Private
Client

 

Total

 

Equity:

 

 

 

 

 

 

 

 

 

Growth

 

 

 

 

 

 

 

 

 

U.S.

 

$48,490

 

$35,068

 

$6,641

 

$90,199

 

Global & International

 

21,656

 

11,030

 

3,300

 

35,986

 

 

 

70,146

 

46,098

 

9,941

 

126,185

 

Value

 

 

 

 

 

 

 

 

 

U.S.

 

55,070

 

28,533

 

27,288

 

110,891

 

Global & International

 

41,220

 

7,167

 

5,923

 

54,310

 

 

 

96,290

 

35,700

 

33,211

 

165,201

 

Total Equity

 

166,436

 

81,798

 

43,152

 

291,386

 

 

 

 

 

 

 

 

 

 

 

Fixed Income:

 

 

 

 

 

 

 

 

 

U.S.

 

54,553

 

47,675

 

11,770

 

113,998

 

Global & International

 

27,387

 

19,384

 

104

 

46,875

 

 

 

81,940

 

67,059

 

11,874

 

160,873

 

 

 

 

 

 

 

 

 

 

 

Passive:

 

 

 

 

 

 

 

 

 

U.S.

 

17,806

 

4,658

 

72

 

22,536

 

Global & International

 

5,608

 

208

 

-

 

5,816

 

 

 

23,414

 

4,866

 

72

 

28,352

 

Total:

 

 

 

 

 

 

 

 

 

U.S.

 

175,919

 

115,934

 

45,771

 

337,624

 

Global & International

 

95,871

 

37,789

 

9,327

 

142,987

 

 

 

$271,790

 

$153,723

 

$55,098

 

$480,611

 

 

 

Page 9 of 9 Alliance Capital

 

 

ALLIANCE CAPITAL MANAGEMENT L.P.

(THE OPERATING PARTNERSHIP)

ASSETS UNDER MANAGEMENT

BY INVESTMENT VEHICLE

AT JUNE 30, 2004

($ millions)

 

 

 

Institutional
Investment
Management

 

Retail

 

Private
Client

 

Total

 

Separately Managed Accounts

 

 

 

 

 

 

 

 

 

Parent

 

$  49,673

 

$           -

 

$          -

 

$  49,673

 

Other (1)

 

219,987

 

8,352

 

38,440

 

266,779

 

 

 

269,660

 

8,352

 

38,440

 

316,452

 

 

 

 

 

 

 

 

 

 

 

Mutual Funds

 

 

 

 

 

 

 

 

 

Parent (2)

 

94

 

37,098

 

-

 

37,192

 

Other

 

2,036

 

108,273

 

16,658

 

126,967

 

 

 

2,130

 

145,371

 

16,658

 

164,159

 

 

 

 

 

 

 

 

 

 

 

Total

 

$271,790

 

$153,723

 

$55,098

 

$480,611

 

 

(1)   Retail separately managed accounts represent assets in managed account products.

(2)   Parent includes certain mutual funds sponsored by Alliance Capital’s parent and sub-advised by Alliance Capital.

 

 

ALLIANCE CAPITAL MANAGEMENT L.P.

(THE OPERATING PARTNERSHIP)

ASSETS UNDER MANAGEMENT

BY LOCATION (1)

AT JUNE 30, 2004

($ millions)

 

 

 

Institutional
Investment
Management

 

Retail

 

Private
Client

 

Total

 

U.S. Clients

 

$187,110

 

$136,278

 

$53,689

 

$377,077

 

Non-U.S. Clients

 

84,680

 

17,445

 

1,409

 

103,534

 

 

 

$271,790

 

$153,723

 

$55,098

 

$480,611

 

 

(1) Categorized by country domicile of client.