ALLIANCEBERNSTEIN HOLDING LP 
By AllianceBernstein Holding (The Publicly Traded Partnership):
-- Diluted net income per Unit for the quarter ended December 31, 2008 was
$0.29, a decrease of 73% from $1.06 for the same period in 2007.
-- Distribution per Unit for the fourth quarter of 2008 will be $0.29, a
decrease of 73% from $1.06 for the same period in 2007. The
distribution is payable on February 12, 2009 to holders of record of
AllianceBernstein Holding Units at the close of business on February 2,
2009.
AllianceBernstein (The Operating Partnership):
-- Assets Under Management (AUM) at December 31, 2008 were $462 billion, a
42% decrease from a year ago, due to net outflows and substantial market
depreciation.
-- Net outflows for the three months ended December 31, 2008 were $23
billion, consisting of Institutional Investments net outflows of $10
billion, Retail net outflows of $9 billion and Private Client net
outflows of $4 billion.
-- Net outflows for the twelve months ended December 31, 2008 were $44
billion, consisting of Retail net outflows of $25 billion, Institutional
Investments net outflows of $14 billion and Private Client net outflows
of $5 billion.
"Capital markets plummeted during the final quarter of 2008, leading to substantially negative investment returns for clients. Absolute and relative investment performance for the full year was poor, the result of our investments in non-US markets and, separately, in sectors with exposure to global credit risks across most of our investment services," said
"Total net outflows accelerated sequentially during the fourth quarter from
"Sharply lower assets under management led to significantly lower revenues. Fourth quarter revenues fell by 50% versus the same period in 2007, primarily the result of a 43% drop in advisory fees. Furthermore, we recorded losses on investments related to employee deferred compensation of
"Operating expenses declined by 37% versus the prior-year quarter, principally due to lower cash and deferred incentive compensation. Notably, fourth quarter expenses were negatively impacted by approximately
"Full-year revenues were down 22%, led by a 16% decline in advisory fees. Losses on investments related to employee deferred compensation totaled
"As we anticipated, our workforce reduction efforts were nearly complete as we exited 2008. We ended the year with 4,997 employees, 12% less than the peak reached in the third quarter of 2008. This reduction will generate annual savings in excess of
"As we enter the new year, I am confident that AllianceBernstein possesses the intellectual capital, financial strength and other resources necessary to capitalize on an eventual recovery of the global capital markets, which will benefit our clients, employees and Unitholders," concluded Mr. Kraus.
_________________________________________________________________________
CONFERENCE CALL INFORMATION RELATING TO FOURTH QUARTER 2008 RESULTS
AllianceBernstein's management will review fourth quarter 2008 financial and operating results on
Parties may access the conference call by either webcast or telephone:
1. To listen by webcast, please visit AllianceBernstein's Investor
Relations website at http://ir.alliancebernstein.com/investorrelations at
least 15 minutes prior to the call to download and install any necessary
audio software.
2. To listen by telephone, please dial (866) 556-2265 in the U.S. or (973)
935-8521 outside the U.S., 10 minutes before the 5:00 p.m. (EST)
scheduled start time. The conference ID# is 79945911.
The presentation that will be reviewed during the conference call is expected to be available on AllianceBernstein's Investor Relations website shortly after the release of fourth quarter 2008 financial results on
A replay of the webcast will be made available beginning at approximately
About AllianceBernstein
AllianceBernstein is a leading global investment management firm that offers high-quality research and diversified investment services to institutional clients, individuals and private clients in major markets around the world. AllianceBernstein employs more than 500 investment professionals with expertise in growth equities, value equities, fixed income securities, blend strategies and alternative investments and, through its subsidiaries and joint ventures, operates in more than 20 countries. AllianceBernstein's research disciplines include fundamental research, quantitative research, economic research and currency forecasting capabilities. Through its integrated global platform, AllianceBernstein is well-positioned to tailor investment solutions for its clients. AllianceBernstein also offers independent research, portfolio strategy and brokerage-related services to institutional investors.
At
Cautions regarding Forward-Looking Statements
Certain statements provided by management 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 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 of sponsored investment products and separately managed accounts, general economic conditions, industry trends, future acquisitions, competitive conditions, and government regulations, including changes in tax regulations and rates and the manner in which the earnings of publicly traded partnerships are taxed. We caution readers to carefully consider such factors. Further, such 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 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, see "Risk Factors" in Part I, Item 1A of our Form 10-K for the year ended
The forward-looking statements referred to in the preceding paragraph include statements regarding:
-- Our backlog of new institutional mandates not yet funded: Before they
are funded, institutional mandates do not represent legally binding
commitments to fund and, accordingly, the possibility exists that not
all mandates will be funded in the amounts and at the times we currently
anticipate.
-- An eventual recovery of the global capital markets: Historical
performance is not necessarily indicative of future results or market
movements. The actual performance of the capital markets and other
factors beyond our control will affect our investment success for
clients and asset flows.
ALLIANCEBERNSTEIN L.P.
(THE OPERATING PARTNERSHIP)
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
DECEMBER 31, 2008
(unaudited, $ thousands)
Three Months Ended Twelve Months Ended
------------------ -------------------
12/31/08 12/31/07 12/31/08 12/31/07
-------- -------- -------- --------
Revenues:
Investment Advisory
& Services Fees $514,428 $895,227 $2,839,526 $3,386,188
Distribution Revenues 64,477 121,997 378,425 473,435
Institutional
Research Services 118,122 118,198 471,716 423,553
Dividend and
Interest Income 20,501 72,972 91,752 284,014
Investment Gains
(Losses) (162,078) (40,284) (349,172) 29,690
Other Revenues 28,739 31,668 118,436 122,869
------- --------- --------- ---------
Total Revenues 584,189 1,199,778 3,550,683 4,719,749
Less: Interest Expense 3,667 30,392 36,524 194,432
------- --------- --------- ---------
Net Revenues 580,522 1,169,386 3,514,159 4,525,317
------- --------- --------- ---------
Expenses:
Employee Compensation
& Benefits 264,207 470,446 1,454,691 1,833,796
Promotion & Servicing:
Distribution
Plan Payments 46,474 86,378 274,359 335,132
Amortization of
Deferred Sales
Commissions 17,250 22,228 79,111 95,481
Other 42,853 69,856 207,506 252,468
General &
Administrative 131,872 153,955 539,198 574,506
Interest on Borrowings 1,144 3,486 13,077 23,970
Amortization of
Intangible Assets 5,179 5,179 20,716 20,716
------- --------- --------- ---------
508,979 811,528 2,588,658 3,136,069
------- --------- --------- ---------
Operating Income 71,543 357,858 925,501 1,389,248
Non-Operating Income 5,464 4,190 18,728 15,756
------- --------- --------- ---------
Income before Income
Taxes and Non-
Controlling Interest
in Earnings of
Consolidated Entities 77,007 362,048 944,229 1,405,004
Income Taxes 2,424 41,550 90,718 127,845
Non-Controlling
Interest in Earnings
of Consolidated Entities (22,481) 10,766 9,186 16,715
------- --------- --------- ---------
NET INCOME $97,064 $309,732 $844,325 $1,260,444
======= ========= ========= ==========
Operating Income
Margin(1) 16.2% 29.7% 26.1% 30.3%
(1) Operating Margin = (Operating Income + Non-Controlling Interest in
Earnings)/Net Revenues.
ALLIANCEBERNSTEIN HOLDING L.P.
(THE PUBLICLY TRADED PARTNERSHIP)
SUMMARY STATEMENTS OF INCOME
(unaudited, $ thousands except per unit amounts)
Three Months Ended Twelve Months Ended
------------------ -------------------
12/31/08 12/31/07 12/31/08 12/31/07
-------- -------- -------- --------
Equity in Earnings of
Operating Partnership $32,365 $102,299 $280,340 $415,256
Income Taxes 6,643 10,147 33,910 39,104
----- ------ ------ ------
NET INCOME 25,722 92,152 246,430 376,152
Additional Equity in Earnings
of Operating Partnership(1) - 898 1,127 5,146
----- ------ ------ ------
NET INCOME - Diluted(2) $25,722 $93,050 $247,557 $381,298
======= ======= ======== ========
DILUTED NET INCOME
PER UNIT $0.29 $1.06 $2.81 $4.32
======= ======= ======== ========
DISTRIBUTION PER UNIT $0.29 $1.06 $2.68(3) $4.33
======= ======= ======== ========
(1) To reflect higher ownership in the Operating Partnership resulting
from application of the treasury stock method to outstanding
options.
(2) For calculation of Diluted Net Income per Unit.
(3) Excludes insurance recoveries related to class action claims
processing error.
ALLIANCEBERNSTEIN L.P. AND ALLIANCEBERNSTEIN HOLDING L.P.
UNITS OUTSTANDING AND WEIGHTED AVERAGE UNITS OUTSTANDING
DECEMBER 31, 2008
Weighted Average Units Weighted Average Units
Three Months Ended Twelve Months Ended
Period End ----------------------- -----------------------
Units Basic Diluted Basic Diluted
----------- ----------- ----------- ----------- -----------
AllianceBernstein
L.P. 263,717,610 261,378,677 261,378,677 260,965,095 261,496,350
AllianceBernstein
Holding 90,323,767 87,984,834 87,984,834 87,571,252 88,102,507
ALLIANCEBERNSTEIN L.P.
ASSETS UNDER MANAGEMENT
THREE MONTHS ENDED DECEMBER 31, 2008
($ billions)
Institutional Private
Investments Retail Client Total
----------- ------ ------ -----
Beginning of Period $378.6 $125.8 $85.2 $589.6
Sales/New accounts 5.8 3.6 1.8 11.2
Redemptions/Terminations (12.5) (10.1) (3.3) (25.9)
Cash flow (3.6) (2.2) (2.1) (7.9)
Unreinvested dividends - (0.3) (0.3) (0.6)
----- ----- ----- ------
Net outflows (10.3) (9.0) (3.9) (23.2)
Transfers(1) (10.3) 10.3 - -
Market depreciation (66.6) (25.5) (12.3) (104.4)
----- ----- ----- ------
End of Period $291.4 $101.6 $69.0 $462.0
====== ====== ===== ======
(1) Transfers of certain client accounts were made among distribution
channels resulting from changes in how these accounts are serviced
by the firm.
ALLIANCEBERNSTEIN L.P.
ASSETS UNDER MANAGEMENT
TWELVE MONTHS ENDED DECEMBER 31, 2008
($ billions)
Institutional Private
Investments Retail Client Total
----------- ------ ------ -----
Beginning of Period $508.1 $183.2 $109.1 $800.4
Sales/New accounts 38.5 23.3 11.0 72.8
Redemptions/Terminations (34.9) (39.8) (8.3) (83.0)
Cash flow (18.0) (7.6) (6.7) (32.3)
Unreinvested dividends - (1.0) (0.7) (1.7)
----- ----- ----- ------
Net outflows (14.4) (25.1) (4.7) (44.2)
Transfers(1) (10.6) 10.6 - -
Market depreciation (191.7) (67.1) (35.4) (294.2)
------ ----- ----- ------
End of Period $291.4 $101.6 $69.0 $462.0
====== ====== ===== ======
(1) Transfers of certain client accounts were made among distribution
channels resulting from changes in how these accounts are serviced
by the firm.
ALLIANCEBERNSTEIN L.P.
ASSETS UNDER MANAGEMENT
BY INVESTMENT SERVICE
AT DECEMBER 31, 2008
($ billions)
Institutional Private
Investments Retail Client Total
----------- ------ ------ -----
Equity:
Value
U.S. $22.6 $12.0 $13.3 $47.9
Global & International 84.8 28.1 11.6 124.5
------ ----- ----- ------
107.4 40.1 24.9 172.4
------ ----- ----- ------
Growth
U.S. 16.1 8.5 8.4 33.0
Global & International 38.0 11.6 5.7 55.3
------ ----- ----- ------
54.1 20.1 14.1 88.3
------ ----- ----- ------
Total Equity 161.5 60.2 39.0 260.7
------ ----- ----- ------
Fixed Income:
U.S. 66.2 9.8 29.3 105.3
Global & International 51.0 20.2 0.6 71.8
------ ----- ----- ------
117.2 30.0 29.9 177.1
------ ----- ----- ------
Other(1)
U.S. 6.6 9.9 - 16.5
Global & International 6.1 1.5 0.1 7.7
------ ----- ----- ------
12.7 11.4 0.1 24.2
------ ----- ----- ------
Total:
U.S. 111.5 40.2 51.0 202.7
Global & International 179.9 61.4 18.0 259.3
------ ----- ----- ------
$291.4 $101.6 $69.0 $462.0
====== ====== ===== ======
(1) Includes Index, Structured and Asset Allocation services.
ALLIANCEBERNSTEIN L.P.
ASSETS UNDER MANAGEMENT
($ billions)
Three Month Period Twelve Month Period
------------------ -------------------
12/31/08 12/31/07 12/31/08 12/31/07
-------- -------- -------- --------
Ending Assets Under Management $462.0 $800.4 $462.0 $800.4
Average Assets Under Management $496.7 $814.5 $665.1 $776.4
ALLIANCEBERNSTEIN L.P.
ASSETS UNDER MANAGEMENT
BY CLIENT DOMICILE
AT DECEMBER 31, 2008
($ billions)
Institutional Private
Investments Retail Client Total
----------- ------ ------ -----
U. S. Clients $139.3 $76.7 $67.0 $283.0
Non-U.S. Clients 152.1 24.9 2.0 179.0
------ ----- ----- ------
Total $291.4 $101.6 $69.0 $462.0
====== ====== ===== ======
SOURCE AllianceBernstein L.P.
