EXHIBIT 99.01
| | Philip Talamo, Investor Relations 212.969.2383 ir@alliancebernstein.com | | John Meyers, Media 212.969.2301 pr@alliancebernstein.com |
News Release
AllianceBernstein Holding L.P. Announces Fourth Quarter Diluted Net Income of $1.06 per Unit and Declares a $1.06 per Unit Cash Distribution
New York, NY, January 23, 2008– AllianceBernstein Holding L.P. (“AllianceBernstein Holding”) (NYSE: AB) and AllianceBernstein L.P. (“AllianceBernstein”) today reported financial and operating results for the quarter and full year ended December 31, 2007.
AllianceBernstein Holding (The Publicly Traded Partnership):
| · | Diluted net income per Unit for the quarter ended December 31, 2007 was $1.06, a decrease of 17% from $1.27 for the same period in 2006. Diluted net income per Unit for the full year 2007 was $4.32, an increase of 13% from $3.82 in 2006. |
| · | Distribution per Unit for the fourth quarter of 2007 will be $1.06, a decrease of 28% from $1.48 for the same period in 2006. The distribution is payable on February 14, 2008 to holders of record of AllianceBernstein Holding Units at the close of business on February 4, 2008. |
AllianceBernstein (The Operating Partnership):
| · | Assets Under Management (AUM) at December 31, 2007 were $800 billion, a 12% increase from a year ago, due to market appreciation and net inflows across all distribution channels. |
| · | Net inflows for the three months ended December 31, 2007 were $8.5 billion, consisting of Institutional Investments net inflows of $8.8 billion, Private Client net inflows of $1.1 billion and Retail net outflows of $1.4 billion. |
| · | Net inflows for the twelve months ended December 31, 2007 were $32.2 billion, consisting of Institutional Investments net inflows of $17.7 billion, Private Client net inflows of $8.6 billion and Retail net inflows of $5.9 billion. |
“Investment results for clients were mixed in 2007, amid considerable market turbulence. Our growth equity services delivered strong total returns and exceeded institutional benchmarks in all geographies and capitalization categories. Value equity services, in contrast, had a difficult year, with returns falling below benchmarks, an effect compounded by increasing pressure on this style of equity management in the second half. Global fixed income results were respectable; however, mandates which focused on corporate and mortgage credit generally underperformed. Our weakest returns were in our diversified hedge fund services, which performed poorly as risk premiums rose sharply in all segments of the capital markets in the second half,” said Lewis Sanders, Chairman and Chief Executive Officer.
“The benefits of our broadly diversified product range by asset class, geography and style were made clear in 2007, as investment returns across all investment services averaged about 7% for the year as a whole.
“Growth in assets under management from net inflows equaled 4% for the full year, and was at a similar annual rate in the fourth quarter. Institutional inflows strengthened during the fourth quarter as compared to the pace earlier in the year. However, retail flows turned modestly negative due to weakness in non-U.S. markets. Private client flows also slowed from their very strong pace earlier in 2007, in part owing to seasonal factors but also to a reduction in hedge fund flows. The backlog of unfunded institutional mandates ended the year at a solid level, increasing somewhat during the fourth quarter.
“Institutional research services achieved record results, with revenue rising by 13% for the full year and 33% for the fourth quarter. Revenue growth was particularly rapid in our London-based operations, with U.S. growth accelerating as well in the fourth quarter.
“Financial results for the firm overall were disappointing as compared to our initial expectations. Full year earnings rose by 13% to $4.32 per unit on a similar revenue gain. An extremely sharp decline in hedge fund-related performance fees along with substantial net mark-to-market losses in investments held for deferred employee compensation plans were primarily responsible for this result, as all other aspects of the firm’s results generally met expectations. These two factors caused fourth quarter revenue to decline slightly versus last year’s comparable quarter, despite a 21% gain in base fees. The resulting pressure on margins caused fourth quarter earnings to fall to $1.06 per Unit versus $1.27 per Unit in 2006’s fourth quarter. The decline was even greater if last year’s earnings are adjusted to exclude a $0.21 per Unit charge for the estimated cost of reimbursing certain clients for a claims processing error.
“As the firm’s financial dynamics are now well understood, especially its sensitivity to performance fees and related seasonality, we no longer believe it necessary to provide earnings guidance. It is important to emphasize, however, that the firm’s earnings are highly sensitive to capital market conditions, which have been quite hostile thus far in 2008. Moreover, a recovery in performance fees will be affected by the need to overcome high water marks in some of our hedge funds.
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“Capital market turbulence is unsettling. But it brings with it a dramatic widening in risk premiums, which provides the basis for strong absolute and relative investment returns. It is our objective to turn these conditions to the advantage of our clients. As ever, if we achieve this goal, the firm’s growth and profitability will benefit as well,” concluded Mr. Sanders.
CONFERENCE CALL INFORMATION RELATING TO FOURTH QUARTER 2007 RESULTS
JANUARY 23, 2008 AT 5:00 P.M. (Eastern Standard Time)
AllianceBernstein’s management will review fourth quarter 2007 financial and operating results on Wednesday, January 23, 2008, during a conference call beginning at 5:00 p.m. (EST), following the release of its financial results after the close of the New York Stock Exchange. The conference call will be hosted by Lewis A. Sanders, Chairman and Chief Executive Officer, and Gerald M. Lieberman, President and Chief Operating Officer.
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 fifteen 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./Canada or (973) 935-8521 outside the U.S./Canada, 10 minutes before the 5:00 p.m.(EST) scheduled start time. The conference ID# is 30362328. |
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 2007 financial results on January 23, 2008.
An audio replay of the conference call will be made available beginning at approximately 7:00 p.m. (EST) on January 23, 2008 and will be available for one week. To access the audio replay, please call (800) 642-1687 from the U.S., or outside the U.S., call (706) 645-9291, and provide the conference ID# 30362328. The replay will also be available via webcast on AllianceBernstein’s website for one week.
www.alliancebernstein.com
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 in-depth, fundamental, independent research, plus portfolio strategies, trading and brokerage-related services to its institutional investor clients.
At December 31, 2007, AllianceBernstein Holding L.P. (“Holding”) owned approximately 33.4% of the issued and outstanding AllianceBernstein Units. AXA Financial was the beneficial owner of approximately 62.8% of the AllianceBernstein Units at December 31, 2007 (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 63.2% economic interest in AllianceBernstein. AXA Financial is a wholly-owned subsidiary of AXA, one of the largest global financial services organizations.
Cautions regarding 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, 2006 and in Part II, Item 1A of Form 10-Q for the quarter ended September 30, 2007. Any or all of the forward-looking statements that we make in Form 10-K, Form 10-Q, this news release, or any other public statements we issue may turn out to be wrong. Of course, factors other than those listed in “Risk Factors” could also adversely affect our revenues, financial condition, results of operations, and business prospects.
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ALLIANCEBERNSTEIN L.P.
(THE OPERATING PARTNERSHIP)
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
DECEMBER 31, 2007
(unaudited, $ thousands)
| | | Three Months Ended | | | Twelve Months Ended | |
| | | 12/31/07 | | | 12/31/06 | | | 12/31/07 | | | 12/31/06 | |
| Revenues: | | | | | | | | | | | | |
| Investment Advisory & Services Fees | | $ | 895,227 | | | $ | 895,383 | | | $ | 3,386,188 | | | $ | 2,890,229 | |
| Distribution Revenues | | | 121,997 | | | | 109,949 | | | | 473,435 | | | | 421,045 | |
| Institutional Research Services | | | 118,198 | | | | 88,769 | | | | 423,553 | | | | 375,075 | |
| Dividend and Interest Income | | | 72,972 | | | | 86,050 | | | | 284,014 | | | | 266,520 | |
| Investment Gains (Losses) | | | (40,284 | ) | | | 27,483 | | | | 29,690 | | | | 62,200 | |
| Other Revenues | | | 31,668 | | | | 29,311 | | | | 122,869 | | | | 123,171 | |
| Total Revenues | | | 1,199,778 | | | | 1,236,945 | | | | 4,719,749 | | | | 4,138,240 | |
| Less: Interest Expense | | | 30,392 | | | | 50,247 | | | | 194,432 | | | | 187,833 | |
| Net Revenues | | | 1,169,386 | | | | 1,186,698 | | | | 4,525,317 | | | | 3,950,407 | |
| | | | | | | | | | | | | | | | | |
| Expenses: | | | | | | | | | | | | | | | | |
| Employee Compensation & Benefits | | | 470,446 | | | | 427,845 | | | | 1,833,796 | | | | 1,547,627 | |
| Promotion & Servicing: | | | | | | | | | | | | | | | | |
| Distribution Plan Payments | | | 86,378 | | | | 77,632 | | | | 335,132 | | | | 292,886 | |
| Amortization of Deferred Sales Commissions | | | 22,228 | | | | 28,721 | | | | 95,481 | | | | 100,370 | |
| Other | | | 69,856 | | | | 57,359 | | | | 252,468 | | | | 218,944 | |
General & Administrative(1) | | | 164,721 | | | | 196,975 | | | | 591,221 | | | | 583,296 | |
| Interest on Borrowings | | | 3,486 | | | | 2,905 | | | | 23,970 | | | | 23,124 | |
| Amortization of Intangible Assets | | | 5,179 | | | | 5,178 | | | | 20,716 | | | | 20,710 | |
| | | | 822,294 | | | | 796,615 | | | | 3,152,784 | | | | 2,786,957 | |
| | | | | | | | | | | | | | | | | |
| Operating Income | | | 347,092 | | | | 390,083 | | | | 1,372,533 | | | | 1,163,450 | |
| Non-Operating Income | | | 4,190 | | | | 3,903 | | | | 15,756 | | | | 20,196 | |
| | | | | | | | | | | | | | | | | |
| Income before Income Taxes | | | 351,282 | | | | 393,986 | | | | 1,388,289 | | | | 1,183,646 | |
| | | | | | | | | | | | | | | | | |
| Income Taxes | | | 41,550 | | | | 27,034 | | | | 127,845 | | | | 75,045 | |
| | | | | | | | | | | | | | | | | |
| NET INCOME | | $ | 309,732 | | | $ | 366,952 | | | $ | 1,260,444 | | | $ | 1,108,601 | |
| | | | | | | | | | | | | | | | | |
| Operating Income Margin | | | 29.7 | % | | | 32.9 | % | | | 30.3 | % | | | 29.5 | % |
(1) 4Q06 and full year 2006 General & Administrative expenses include a $56 million claims processing error charge ($54.5 million, net of related income tax benefits).
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ALLIANCEBERNSTEIN HOLDING L.P.
(THE PUBLICLY TRADED PARTNERSHIP)
SUMMARY STATEMENTS OF INCOME
(unaudited, $ thousands except per unit amounts)
| | | Three Months Ended | | | Twelve Months Ended | |
| | | 12/31/07 | | | 12/31/06 | | | 12/31/07 | | | 12/31/06 | |
| | | | | | | | | | | | | |
| Equity in Earnings of Operating Partnership | | $ | 102,299 | | | $ | 119,763 | | | $ | 415,256 | | | $ | 359,469 | |
| | | | | | | | | | | | | | | | | |
| Income Taxes | | | 10,147 | | | | 10,334 | | | | 39,104 | | | | 34,473 | |
| | | | | | | | | | | | | | | | | |
| NET INCOME | | | 92,152 | | | | 109,429 | | | | 376,152 | | | | 324,996 | |
| | | | | | | | | | | | | | | | | |
Additional Equity in Earnings of Operating Partnership(1) | | | 898 | | | | 1,894 | | | | 5,146 | | | | 5,430 | |
| | | | | | | | | | | | | | | | | |
NET INCOME - Diluted(2) | | $ | 93,050 | | | $ | 111,323 | | | $ | 381,298 | | | $ | 330,426 | |
| | | | | | | | | | | | | | | | | |
| DILUTED NET INCOME PER UNIT | | $ | 1.06 | | | $ | 1.27 | | | $ | 4.32 | | | $ | 3.82 | |
| | | | | | | | | | | | | | | | | |
| DISTRIBUTION PER UNIT | | $ | 1.06 | | | $ | 1.48 | | | $ | 4.33 | | | $ | 4.02 | |
(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) 4Q06 and full year 2006 Diluted Net Income per Unit include a $0.21 and $0.20 per Unit claims processing error charge, respectively.
ALLIANCEBERNSTEIN AND ALLIANCEBERNSTEIN HOLDING
UNITS OUTSTANDING AND WEIGHTED AVERAGE UNITS OUTSTANDING
DECEMBER 31, 2007
| | | | | | Weighted Average Units | | | Weighted Average Units | |
| | | | | | Three Months Ended | | | Twelve Months Ended | |
| | | Period End | | | | | | | | | | | | | |
| | | Units | | | Basic | | | Diluted | | | Basic | | | Diluted | |
| | | | | | | | | | | | | | | | |
| AllianceBernstein | | | 260,341,992 | | | | 260,209,684 | | | | 261,478,350 | | | | 259,853,947 | | | | 261,660,628 | |
| | | | | | | | | | | | | | | | | | | | | |
| AllianceBernstein Holding | | | 86,948,149 | | | | 86,815,841 | | | | 88,084,507 | | | | 86,460,104 | | | | 88,266,785 | |
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ALLIANCEBERNSTEIN L.P.
ASSETS UNDER MANAGEMENT
THREE MONTHS ENDED DECEMBER 31, 2007
($ millions)
| | Institutional | | | | | | Private | | | | |
| | Investments | | | Retail | | | Client | | | Total | |
| | | | | | | | | | | | |
Beginning of Period(1) | | $ | 513,348 | | | $ | 189,360 | | | $ | 110,633 | | | $ | 813,341 | |
| | | | | | | | | | | | | | | | |
| Sales/New accounts | | | 18,123 | | | | 10,038 | | | | 3,480 | | | | 31,641 | |
| Redemptions/Terminations | | | (5,031 | ) | | | (9,273 | ) | | | (1,262 | ) | | | (15,566 | ) |
| Cash flow | | | (4,330 | ) | | | (1,585 | ) | | | (987 | ) | | | (6,902 | ) |
| Unreinvested dividends | | | - | | | | (541 | ) | | | (180 | ) | | | (721 | ) |
| Net inflows/(outflows) | | | 8,762 | | | | (1,361 | ) | | | 1,051 | | | | 8,452 | |
| | | | | | | | | | | | | | | | |
Transfers(2) | | | (203 | ) | | | (57 | ) | | | 260 | | | | - | |
| | | | | | | | | | | | | | | | |
| Market depreciation | | | (13,826 | ) | | | (4,777 | ) | | | (2,800 | ) | | | (21,403 | ) |
| | | | | | | | | | | | | | | | |
| End of Period | | $ | 508,081 | | | $ | 183,165 | | | $ | 109,144 | | | $ | 800,390 | |
(1) Prior period AUM has been increased by $573 million to reflect the assets associated with existing services previously not included.
(2) Transfers of certain client accounts were made among distribution channels resulting from changes in how these accounts are serviced by the firm.
ALLIANCEBERNSTEIN L.P.
ASSETS UNDER MANAGEMENT
TWELVE MONTHS ENDED DECEMBER 31, 2007
($ millions)
| | Institutional | | | | | | Private | | | | |
| | Investments | | | Retail | | | Client | | | Total | |
| | | | | | | | | | | | |
Beginning of Period(1) | | $ | 455,095 | | | $ | 166,928 | | | $ | 94,898 | | | $ | 716,921 | |
| | | | | | | | | | | | | | | | |
| Sales/New accounts | | | 70,744 | | | | 46,211 | | | | 18,287 | | | | 135,242 | |
| Redemptions/Terminations | | | (33,231 | ) | | | (37,001 | ) | | | (4,486 | ) | | | (74,718 | ) |
| Cash flow | | | (19,848 | ) | | | (2,057 | ) | | | (4,672 | ) | | | (26,577 | ) |
| Unreinvested dividends | | | (1 | ) | | | (1,286 | ) | | | (497 | ) | | | (1,784 | ) |
| Net inflows | | | 17,664 | | | | 5,867 | | | | 8,632 | | | | 32,163 | |
| | | | | | | | | | | | | | | | |
Transfers(2) | | | (144 | ) | | | (552 | ) | | | 696 | | | | - | |
| | | | | | | | | | | | | | | | |
| Market appreciation | | | 35,466 | | | | 10,922 | | | | 4,918 | | | | 51,306 | |
| | | | | | | | | | | | | | | | |
| End of Period | | $ | 508,081 | | | $ | 183,165 | | | $ | 109,144 | | | $ | 800,390 | |
(1) Prior period AUM has been increased by $26 million to reflect the assets associated with existing services previously not included.
(2) Transfers of certain client accounts were made among distribution channels resulting from changes in how these accounts are serviced by the firm.
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ALLIANCEBERNSTEIN L.P.
ASSETS UNDER MANAGEMENT
BY INVESTMENT SERVICE
AT DECEMBER 31, 2007
($ millions)
| | | Institutional | | | | | | Private | | | | |
| | | Investments | | | Retail | | | Client | | | Total | |
| Equity: | | | | | | | | | | | | |
| Value | | | | | | | | | | | | |
| U.S. | | $ | 49,235 | | | $ | 33,488 | | | $ | 25,259 | | | $ | 107,982 | |
| Global & International | | | 192,472 | | | | 56,560 | | | | 25,497 | | | | 274,529 | |
| | | | 241,707 | | | | 90,048 | | | | 50,756 | | | | 382,511 | |
| Growth | | | | | | | | | | | | | | | | |
| U.S. | | | 31,908 | | | | 24,637 | | | | 16,004 | | | | 72,549 | |
| Global & International | | | 88,691 | | | | 23,530 | | | | 12,175 | | | | 124,396 | |
| | | | 120,599 | | | | 48,167 | | | | 28,179 | | | | 196,945 | |
| | | | | | | | | | | | | | | | | |
| Total Equity | | | 362,306 | | | | 138,215 | | | | 78,935 | | | | 579,456 | |
| | | | | | | | | | | | | | | | | |
| Fixed Income: | | | | | | | | | | | | | | | | |
| U.S. | | | 73,240 | | | | 10,627 | | | | 29,498 | | | | 113,365 | |
| Global & International | | | 53,978 | | | | 29,855 | | | | 676 | | | | 84,509 | |
| | | | 127,218 | | | | 40,482 | | | | 30,174 | | | | 197,874 | |
| | | | | | | | | | | | | | | | | |
| Index/Structured: | | | | | | | | | | | | | | | | |
| U.S. | | | 12,426 | | | | 4,468 | | | | 25 | | | | 16,919 | |
| Global & International | | | 6,131 | | | | - | | | | 10 | | | | 6,141 | |
| | | | 18,557 | | | | 4,468 | | | | 35 | | | | 23,060 | |
| | | | | | | | | | | | | | | | | |
| Total: | | | | | | | | | | | | | | | | |
| U.S. | | | 166,809 | | | | 73,220 | | | | 70,786 | | | | 310,815 | |
| Global & International | | | 341,272 | | | | 109,945 | | | | 38,358 | | | | 489,575 | |
| | | $ | 508,081 | | | $ | 183,165 | | | $ | 109,144 | | | $ | 800,390 | |
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ALLIANCEBERNSTEIN L.P.
ASSETS UNDER MANAGEMENT
($ millions)
| | Three Month Period | | | Twelve Month Period | |
| | 12/31/07 | | | 12/31/06(1) | | | 12/31/07 | | | 12/31/06(1) | |
| | | | | | | | | | | | |
| Ending Assets Under Management | | $ | 800,390 | | | $ | 716,921 | | | $ | 800,390 | | | $ | 716,921 | |
| | | | | | | | | | | | | | | | | |
| Average Assets Under Management | | $ | 814,495 | | | $ | 689,231 | | | $ | 776,368 | | | $ | 640,968 | |
(1) Prior period AUM has been increased by $26 million to reflect the assets associated with existing services previously not included.
ALLIANCEBERNSTEIN L.P.
ASSETS UNDER MANAGEMENT
BY CLIENT DOMICILE
AT DECEMBER 31, 2007
($ millions)
| | Institutional Investments | | | Retail | | | Private Client | | | Total | |
| | | | | | | | | | | | |
| U. S. Clients | | $ | 239,131 | | | $ | 139,250 | | | $ | 105,344 | | | $ | 483,725 | |
| Non-U.S. Clients | | | 268,950 | | | | 43,915 | | | | 3,800 | | | | 316,665 | |
| | $ | 508,081 | | | $ | 183,165 | | | $ | 109,144 | | | $ | 800,390 | |
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