AllianceBernstein L.P.(AB) - 2025 Q1 - Quarterly Report

Financial Performance - Net income for the three months ended March 31, 2025, was $74,034,000, down from$77,222,000 for the same period in 2024, a decrease of about 4.2%[15] - Comprehensive income for the three months ended March 31, 2025, was $86,805,000, compared to$73,063,000 in Q1 2024, an increase of about 18.8%[18] - Total net income for the three months ended March 31, 2025, was $74.034 million, a decrease of 4.1$77.222 million in 2024[46] - Equity in net income attributable to AB unitholders decreased by 4.1%, from $86.281 million in 2024 to$82.753 million in 2025[51] - Total income taxes for the three months ended March 31, 2025, were $8.719 million, a decrease of 3.8$9.059 million in 2024[51] Assets and Capital - Total assets decreased from $2,034,632,000 as of December 31, 2024, to$1,997,129,000 as of March 31, 2025, representing a decline of approximately 1.8%[13] - The investment in AB decreased from $2,034,632,000 to$1,996,177,000, a decline of approximately 1.9%[13] - The total partners' capital decreased from $2,031,862,000 as of December 31, 2024, to$1,996,871,000 as of March 31, 2025, a decrease of about 1.7%[13] - Investment in AB as of March 31, 2025, was $1.996 billion, down from$2.034 billion as of December 31, 2024[47] Cash Distributions - Cash distributions to unitholders increased to $116,364,000 in Q1 2025 from$88,566,000 in Q1 2024, reflecting a rise of approximately 31.4%[23] - Cash distributions to unitholders increased by 9.6%, from $0.73 per unit in 2024 to$0.80 per unit in 2025[56] - The General Partner declared a distribution of $0.80 per Unit for the three months ended March 31, 2025, payable on May 22, 2025[39] Operating Activities - Net cash provided by operating activities rose to$115.3 million in 2025, compared to $87.7 million in 2024, primarily due to higher cash distributions received from AB[65] - Total cash paid for repurchases of AB Holding Units was$30.5 million in 2025, significantly higher than $4.3 million in 2024[42] Unit Awards and Repurchases - The number of restricted AB Holding Unit awards granted to employees increased from 0.9 million in 2024 to 1.0 million in 2025[44] - During Q1 2025, AB purchased a total of 813,836 AB Holding Units at an average price of$37.48 per unit[81] - The company retained 114,653 AB Holding Units from employees to meet statutory withholding tax requirements during long-term incentive compensation distribution[81] Market and Risk Factors - AB Holding's cash flow is dependent on quarterly cash distributions from AB, which are influenced by capital market performance[71] - No material changes in market risk were reported for AB Holding in Q1 2025 compared to the previous year[70] - The company has not experienced any material changes to risk factors since the last annual report for the fiscal year ended December 31, 2024[77] - AB Holding's ability to access capital markets may be limited by adverse market conditions and changes in government regulations[71] - Litigation outcomes remain unpredictable, but the company does not expect pending legal proceedings to materially affect its operations[71] Internal Controls and Compensation - No changes in internal control over financial reporting occurred during Q1 2025 that materially affected the company's reporting[74] - The company has determined that adjusted employee compensation expense should not exceed 50% of adjusted net revenues annually[71] Future Plans - The plan for repurchasing AB Holding Units expired on April 23, 2025, with potential for future plans to be adopted[79] - On April 3, 2025, EQH announced a cash tender offer for up to 46,000,000 AB Holding Units at a price of $38.50, totaling an aggregate purchase price of up to$1.8 billion[36] - A total of 19,682,946 AB Holding Units were tendered, equating to a 17.9% economic interest in AB Holding, for an aggregate cost of approximately $757.8 million[36] - The economic interest of EQH and its subsidiaries in AB was approximately 61.9% as of March 31, 2025[32]