EX-99.22 2 ex99_22.htm EXHIBIT 99.22 Exhibit 99.22
   
 
  
 
   
Valerie Haertel, Investor Relations
212.969.6414
ir@alliancebernstein.com
  
John Meyers, Media
212.969.2301
pr@alliancebernstein.com
News Release
 
AllianceBernstein Holding L.P. Announces Second Quarter Diluted Net Income of $0.89 per Unit and Declares a $0.89 per Unit Cash Distribution

New York, NY, July 26, 2006 - AllianceBernstein Holding L.P. (“AllianceBernstein Holding”) (NYSE: AB) and AllianceBernstein L.P. (“AllianceBernstein”) today reported financial and operating results for the quarter ended June 30, 2006.

AllianceBernstein Holding (The Publicly Traded Partnership):
 
·
Diluted net income per unit for the quarter ended June 30, 2006 was $0.89, an increase of 30.9% as compared to  $0.68 for the same period in 2005.

 
·
Distribution per unit for the second quarter of 2006 is $0.89, an increase of 30.9% as compared to $0.68 for the same period in 2005. The distribution is payable on August 17, 2006 to holders of AllianceBernstein Holding Units at the close of business on August 7, 2006.

AllianceBernstein (The Operating Partnership):
 
·
Assets Under Management (AUM) at June 30, 2006 were $625 billion, a 21.2% increase over a year ago (or 21.4%, excluding acquisition & dispositions), due to equity market appreciation and net inflows across all distribution channels.

 
·
Average AUM were $625 billion for the quarter ended June 30, 2006, an increase of 19.7% over the same quarter a year ago (or 23.1%, excluding acquisition & dispositions).

 
·
Net inflows(1)  Excludes acquisition, dispositions and transfers.1) for the three months ended June 30, 2006 were $16.9 billion, consisting of Institutional Investments net inflows of $9.7 billion, Retail net inflows of $4.7 billion and Private Client net inflows of $2.5 billion.

 
·
Net inflows(1) for the twelve months ended June 30, 2006 were $51.7 billion, consisting of Institutional Investments net inflows of $31.4 billion, Retail net inflows of $12.2 billion and Private Client net inflows of $8.1 billion.
 

(1) Excludes acquisition, dispositions and transfers.
 
 

 
“On the most important metric, investment returns for clients, second quarter results were disappointing. Although relative returns were generally satisfactory in value equities and fixed income, absolute returns were minimal. Growth and emerging market equity services produced negative results, as the market turbulence that developed in the second quarter was focused primarily in these areas of the capital markets. These conditions have, in our view, created noteworthy investment opportunity, especially in growth stocks. Portfolio strategy has been shaped to take advantage of this potential,” said Lewis A. Sanders, Chairman and CEO.

“The firm’s financial performance in the second quarter was quite strong. Net earnings rose by 32% on a 23% revenue gain. Pre-tax margin expanded by 1.3 percentage points to 29.3%. The second quarter benefited from rapid growth in assets under management during the last 12 months and incentive fees from strong investment performance in earlier periods. Reported earnings also benefited by about $0.02 per unit from a gain on the disposition of our cash management services. Although this transaction occurred in 2005, the gain resulted from the expiration of a claw back provision during the quarter. In addition, a downward revision in our estimated full year tax rate added about $0.01 per unit to second quarter earnings.

“Organic growth for the quarter, as measured by net inflows of assets under management, accelerated with annualized double digit rates achieved in all three of our primary distribution channels. Global, international and style blend services experienced the strongest inflows, a trend underway for some time. Global and international services now account for 49% of total AUM. Our non-US client base also continued to expand rapidly, driving AUM for such clients to approximately one third of the firm’s total.

“Institutional research services grew strongly in the second quarter with revenue gains of 27.5% from last year’s comparable period. Market share rose sharply in the US, a function of our strong research franchise as well as increasing client acceptance of our algorithmic trading services. Revenue growth remained strong in our London-based operations as well.

“Although we believe the firm is well positioned overall, slower growth in asset inflows is anticipated in the period ahead. Difficult capital market conditions are likely to weigh on retail flows and the backlog of new but unfunded institutional mandates, while still substantial, has declined from the record high levels reached earlier this year.

“Continued growth in assets under management and research services revenue as well as improvement in profitability depend in the long term on helping our clients meet their investment objectives, the achievement of which remains our primary focus,” concluded Mr. Sanders.
 
Page 2 of 10
 

 
Conference Call Information Relating To Second Quarter 2006 Results

AllianceBernstein’s management will review second quarter 2006 financial and operating results on Wednesday, July 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 866-556-2265 in the U.S. or 973-935-8521 outside the U.S., ten minutes before the 5:30 p.m. (New York Time) scheduled start time. The conference ID# is 7611243.

 
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 will be available on AllianceBernstein’s website at the above web address after the release of its results.

An audio replay of the conference call will be made available for one week beginning at 7:30 p.m. (New York Time) on July 27, 2006. In the U.S., please call 877-519-4471 or, outside the U.S., call 973-341-3080, and provide the conference ID# 7611243. 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 June 30, 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 June 30, 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.

Page 3 of 10
 
 
 
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.

The forward-looking statements referred to in the preceding paragraph include statements regarding noteworthy investment opportunity, especially in growth stocks, resulting from second quarter market turbulence, and slower growth in asset inflows in our institutional and retail distribution channels resulting from a decline from the record high levels reached earlier this year in unfunded institutional mandates and difficult capital market conditions, respectively. The actual performance of the capital markets and other factors beyond our control will affect our investment success and asset inflows.
 
Page 4 of 10
 
 
 
ALLIANCEBERNSTEIN L.P.
(THE OPERATING PARTNERSHIP)
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands)
JUNE 30, 2006
 
   
Three Months Ended
  
   
6/30/06 
  
6/30/05 
  
Revenues: 
          
Investment Advisory & Services Fees 
  
$
690,213
  
$
528,727
  
Distribution Revenues 
    
104,456
    
97,727
  
Institutional Research Services 
    
102,631
    
80,504
  
Dividend and Interest Income 
    
61,462
    
30,644
  
Investment Gains (Losses) 
    
(15,537
)
  
6,779
  
Other Revenues 
    
35,966
    
31,973
  
Total Revenues 
    
979,191
    
776,354
  
Less:Interest Expense 
    
45,861
    
20,096
  
Net Revenues 
    
933,330
    
756,258
  
Expenses: 
              
Employee Compensation & Benefits 
    
373,780
    
308,699
  
Promotion & Servicing: 
              
Distribution Plan Payments 
    
72,795
    
71,322
  
Amortization of Deferred Sales Commissions 
    
23,589
    
34,439
  
Other 
    
59,949
    
49,576
  
General & Administrative 
    
127,673
    
81,293
  
Interest 
    
6,852
    
6,306
  
Amortization of Intangible Assets 
    
5,175
    
5,175
  
     
669,813
    
556,810
  
               
Operating income 
    
263,517
    
199,448
  
Non-operating income 
    
9,730
    
12,312
  
               
Income Before Income Taxes 
    
273,247
    
211,760
  
               
Income Taxes 
    
12,145
    
13,763
  
NET INCOME 
  
$
261,102
  
$
197,997
  
               
Pre-tax Margin 
    
29.3
%
  
28.0
%
 
Page 5 of 10
 
 
 
ALLIANCEBERNSTEIN HOLDING L.P.
(THE PUBLICLY TRADED PARTNERSHIP)
SUMMARY STATEMENTS OF INCOME
 
   
Three Months Ended 
  
   
6/30/06 
  
6/30/05 
  
           
Equity in Earnings of Operating Partnership 
  
$
84,514
  
$
62,654
  
               
Income Taxes 
    
8,509
    
6,530
  
               
NET INCOME 
    
76,005
    
56,124
  
               
Additional Equity in Earnings of Operating Partnership (1)
    
1,350
    
767
  
               
NET INCOME - Diluted (2) 
  
$
77,355
  
$
56,891
  
               
DILUTED NET INCOME PER UNIT 
  
$
0.89
  
$
0.68
  
               
DISTRIBUTION PER UNIT 
  
$
0.89
  
$
0.68
  
 
(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
JUNE 30, 2006
 
       
Weighted Average Units
  
       
Three Months Ended
  
   
Period End Units
  
Basic
  
Diluted
  
               
AllianceBernstein 
    
257,667,584
    
257,623,562
    
259,865,829
  
                     
AllianceBernstein Holding 
    
84,273,741
    
84,229,719
    
86,471,986
  
 
Page 6 of 10
 

 
ALLIANCEBERNSTEIN L.P.
ASSETS UNDER MANAGEMENT
THREE MONTHS ENDED JUNE 30, 2006
($ millions)
 
   
Institutional Investments 
  
Retail 
  
Private Client 
  
Total 
  
                   
Beginning of Period 
  
$
389,917
  
$
145,919
  
$
81,739
  
$
617,575
  
 
                          
Sales/New accounts 
    
15,510
    
13,321
    
4,031
    
32,862
  
Redemptions/Terminations 
    
(3,322
)
  
(7,932
)
  
(670
)
  
(11,924
)
Cash flow 
    
(2,575
)
  
(440
)
  
(754
)
  
(3,769
)
Unreinvested dividends 
    
-
    
(224
)
  
(88
)
  
(312
)
Net inflows 
    
9,613
    
4,725
    
2,519
    
16,857
  
 
                          
Acquisition(1)
    
321
    
92
    
_
    
413
  
Market depreciation 
    
(3,878
)
  
(4,345
)
  
(1,464
)
  
(9,687
)
End of Period 
  
$
395,973
  
$
146,391
  
$
82,794
  
$
625,158
  
 
(1) Hong Kong joint venture interest.

Page 7 of 10
 

 
ALLIANCEBERNSTEIN L.P.
ASSETS UNDER MANAGEMENT
TWELVE MONTHS ENDED JUNE 30, 2006
($ millions)
 
   
Institutional Investments 
 
Retail 
 
Private Client 
 
Total 
  
                   
Beginning of Period 
  
$
316,659
  
$
132,030
  
$
67,264
  
$
515,953
  
                           
Sales/New accounts 
    
49,710
    
41,661
    
13,332
    
104,703
  
Redemptions/Terminations 
    
(12,158
)
  
(28,260
)
  
(2,755
)
  
(43,173
)
Cash flow 
    
(6,139
)
  
(291
)
  
(2,112
)
  
(8,542
)
Unreinvested dividends 
    
-
    
(952
)
  
(369
)
  
(1,321
)
Net inflows 
    
31,413
    
12,158
    
8,096
    
51,667
  
                           
Acquisition/(Dispositions) (1), net 
    
(1,054
)
  
(236
)
  
_
    
(1,290
)
Transfers (2) 
    
8,488
    
(9,155
)
  
667
    
.
  
Market appreciation 
    
40,467
    
11,594
    
6,767
    
58,828
  
                           
End of Period 
  
$
395,973
  
$
146,391
  
$
82,794
  
$
625,158
  
 
(1)
Acquisition of Hong Kong joint venture interest; disposition of 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 June 30, 2006 reflect these transfers.
 
 
ALLIANCEBERNSTEIN L.P.
ASSETS UNDER MANAGEMENT
($ millions)
 
   
Three Month Period 
 
Twelve Month Period 
 
 
 
06/30/06 
 
06/30/05 
 
06/30/06 
 
06/30/05 
  
                   
Ending Assets Under Management 
  
$
625,158
  
$
515,953
  
$
625,158
  
$
515,953
  
                           
Average Assets Under Management 
  
$
625,351
  
$
522,403
  
$
581,591
  
$
511,169
  
 
Page 8 of 10
 

 
ALLIANCEBERNSTEIN L.P.
ASSETS UNDER MANAGEMENT
BY INVESTMENT SERVICE
AT JUNE 30, 2006
($ Millions)
 
   
Institutional Investments 
 
Retail 
 
Private Client 
 
Total 
  
Equity: 
                  
Growth 
                  
U.S. 
  
$
36,087
  
$
29,924
  
$
11,672
  
$
77,683
  
Global & International 
    
53,144
    
18,345
    
7,843
    
79,332
  
     
89,231
    
48,269
    
19,515
    
157,015
  
Value 
                          
U.S. 
    
50,839
    
32,317
    
24,550
    
107,706
  
Global & International 
    
124,245
    
24,961
    
15,419
    
164,625
  
     
175,084
    
57,278
    
39,969
    
272,331
  
                           
Total Equity 
    
264,315
    
105,547
    
59,484
    
429,346
  
                           
Fixed Income: 
                          
U.S. 
    
71,406
    
11,474
    
22,964
    
105,844
  
Global & International 
    
35,804
    
23,926
    
266
    
59,996
  
     
107,210
    
35,400
    
23,230
    
165,840
  
                           
Index/Structured: 
                          
U.S. 
    
20,200
    
4,384
    
80
    
24,664
  
Global & International 
    
4,248
    
1,060
    
-
    
5,308
  
     
24,448
    
5,444
    
80
    
29,972
  
                           
Total: 
                          
U.S. 
    
178,532
    
78,099
    
59,266
    
315,897
  
Global & International 
    
217,441
    
68,292
    
23,528
    
309,261
  
   
$
395,973
  
$
146,391
  
$
82,794
  
$
625,158
  
 
Page 9 of 10
 
 
 
ALLIANCEBERNSTEIN L.P.
ASSETS UNDER MANAGEMENT
BY CLIENT DOMICILE
AT JUNE 30, 2006
($ millions)
 
   
Institutional Investments 
  
Retail 
  
Private Client 
  
Total 
  
                   
U. S. Clients 
  
$
224,624
  
$
112,043
  
$
80,638
  
$
417,305
  
Non-U.S. Clients 
    
171,349
    
34,348
    
2,156
    
207,853
  
   
$
395,973
  
$
146,391
  
$
82,794
  
$
625,158
  

 
Page 10 of 10