EXHIBIT 99.3
[GRAPHIC]
FOR IMMEDIATE RELEASE
Contacts: Karen Caddick (Investor Relations) Shira Zackai (Media)
(212) 969-6414 (212) 969-6387
investor_relations@acml.com shira_zackai@acml.com
ALLIANCE CAPITAL ANNOUNCES THIRD QUARTER FINANCIAL RESULTS
NEW YORK, NY, OCTOBER 27, 2000 - Alliance Capital Management Holding L.P.
("Alliance Holding") (NYSE: "AC") today declared a $0.84 per Unit distribution
payable on November 22, 2000 to holders of its Units at the close of business on
November 13, 2000. Alliance Holding announced third quarter 2000 net operating
earnings (net income excluding amortization of intangibles and non-recurring
items) of $0.86 per Unit, an increase of 51% compared to $0.57 per Unit for
third quarter 1999. Base fee earnings contributed $0.84 per Unit to net
operating earnings for third quarter 2000 and $0.55 per Unit for third quarter
1999. Performance fee earnings contributed $0.02 per Unit to net operating
earnings for both third quarter 2000 and third quarter 1999.
OPERATING HIGHLIGHTS OF ALLIANCE CAPITAL MANAGEMENT L.P. ("ALLIANCE CAPITAL")
THE OPERATING PARTNERSHIP
o ASSETS UNDER MANAGEMENT WERE $388 BILLION AT SEPTEMBER 30, 2000, increasing
22% from September 30, 1999. Growth was the result of net new business
flows in both mutual funds and separately managed institutional accounts
and investment results. Compared to June 30, 2000, assets under management
were unchanged; increases in assets as a result of net new business in
separately managed institutional accounts, sales of Alliance mutual fund
shares and cash management services were offset by negative investment
results, which reduced assets under management by $7.7 billion for the
quarter.
o INVESTMENT PERFORMANCE FOR THE QUARTER WAS MIXED. The stock market and
large capitalization growth stocks, in particular, declined; and Alliance
Capital's large capitalization growth funds underperformed. Nevertheless,
performance in these portfolios remains competitive on a long-term basis.
Meanwhile, third quarter and year-to-date investment results for several
other important investment disciplines were very positive. Our relative
value, research managed and small capitalization growth portfolios all
experienced excellent results. Several important fixed income disciplines
also performed well.
o MUTUAL FUND GROSS SALES GREW 68% OVER THIRD QUARTER 1999 and were 71%
higher than second quarter 2000 levels. Net mutual fund sales for third
quarter 2000 were $9.2 billion, with cash management net asset inflows
contributing $5 billion.
Reviewing the mutual fund sales trends, President and Chief
Operating Officer John D. Carifa said, "During the third quarter, our
global mutual fund sales increased compared to the prior quarter. In the
United States, Alliance Capital maintained its number three ranking in
non-proprietary net sales. We recently launched a new savings initiative
with the State of Rhode Island's college savings plan to greater diversify
our U.S. fund sales; the CollegeBoundFUNDsm is being marketed to investors
across the United States. Outside the United States through September 30 of
this year, we continue to make significant progress. Net sales of our
Luxembourg registered mutual funds are up 227% for the first nine months of
this year compared to the same period last year, with combined net sales in
Germany and Austria increasing 270% for the same period compared to last
year. We continue to invest in our business by opening up new offices
worldwide. We recently established several new marketing locations in
Europe, and this week, we opened a new customer service center in Scranton,
Pennsylvania, enhancing our capability to provide superior service to our
clients."
o NEW SEPARATELY MANAGED ACCOUNT WINS ADDED $3.5 BILLION IN ASSETS UNDER
MANAGEMENT during third quarter 2000, representing 52 new client accounts
across multiple disciplines. Alliance Capital recently signed a memorandum
of understanding with AXA Asia Pacific Holdings Limited to establish new
asset management companies in Australia and New Zealand, adding to Alliance
Capital's global initiatives.
o ALLIANCE CAPITAL ACQUIRED THE BUSINESS OF SANFORD C. BERNSTEIN INC.
("Bernstein") on October 2, 2000. Total Alliance Capital assets under
management following the acquisition on October 2, 2000 were approximately
$474 billion. The acquisition combines Alliance Capital's strength as a
recognized leader in the growth style of investing with Bernstein's
recognized strength in the value style, allowing Alliance Capital to
effectively compete for virtually any investment assignment worldwide. And,
Alliance Capital now serves a broader range of clients with the addition of
Bernstein's business. With 530 investment professionals, including 260
research analysts, Alliance Capital is one of the premier providers of
equity and fixed income investment services in the world.
FINANCIAL RESULTS OF ALLIANCE CAPITAL MANAGEMENT L.P.
THE OPERATING PARTNERSHIP
o NET OPERATING EARNINGS (NET INCOME EXCLUDING AMORTIZATION OF INTANGIBLES
AND NON-RECURRING ITEMS) WERE $196 MILLION FOR THIRD QUARTER 2000, an
increase of 74% compared to pro forma net operating earnings for third
quarter 1999. Base fee earnings contributed $191 million to total net
operating earnings for third quarter 2000 and $108 million for third
quarter 1999. Performance fee earnings contributed $5 million for both
third quarter 2000 and third quarter 1999.
o REVENUES FOR THIRD QUARTER 2000 REACHED $616 MILLION, INCREASING 38% from
$445 million pro forma revenues for third quarter 1999. Revenue growth
resulted primarily from increased average assets under management,
including a larger proportion of higher-fee mutual fund assets.
ALLIANCE CAPITAL MANAGEMENT L.P.
THE OPERATING PARTNERSHIP
SUMMARY FINANCIAL RESULTS
(MILLIONS)
Pro Pro
Forma Forma
Three Three Nine Nine
Months Months Months Months
Ended Ended Ended Ended
9/30/00 9/30/99(1) Change 9/30/00 9/30/99(1) Change
-------- ---------- --------- ---------- ----------- ----------
Assets Under Management (billions) $ 388 $ 317 22% $ 388 $ 317 22%
======= ======= ======= ======= =======
Revenues $ 616 $ 445 38% $ 1,729 $ 1,284 35%
======= ======= ======= ======= =======
NET INCOME $ 195 $ 112 75% $ 520 $ 326 59%
Amortization of Intangibles 1 1 2 3 3 2
Non-recurring Items -- -- -- (24) -- N/A
------- ------- ------- ------- -------
NET OPERATING EARNINGS (2) $ 196 $ 113 74% $ 499 $ 329 52%
======= ======= ======= ======= =======
Base Fee Earnings $ 191 $ 108 78% $ 483 $ 303 59%
Performance Fee Earnings 5 5 (1) 16 26 (39)
======= ======= ------- ------- -------
NET OPERATING EARNINGS (2) $ 196 $ 113 74% $ 499 $ 329 52%
======= ======= ======= ======= =======
(1) Pro forma amounts assume the Alliance Holding Reorganization occurred on
January 1, 1999. The pro forma financial information reflects the Operating
Partnership as a private partnership that is not subject to a federal tax
of 3.5% on partnership gross income from the active conduct of a trade or
business.
(2) Net Operating Earnings: Net Income excluding amortization of intangibles
and non-recurring items.
FINANCIAL RESULTS OF ALLIANCE HOLDING
THE PUBLICLY TRADED PARTNERSHIP
Alliance Holding's principal sources of income and cash flow are
attributable to its ownership interest in Alliance Capital, the operating
partnership. Alliance Holding is required to distribute the cash distributions
it receives from Alliance Capital, less taxes and other amounts its general
partner determines should be retained.
o DISTRIBUTIONS PER ALLIANCE HOLDING UNIT INCREASED TO $0.84 for third
quarter 2000, a 50% increase over the $0.56 per Unit distributed for third
quarter 1999 and an increase of $0.09 from the $0.75 per Unit distributed
in second quarter 2000.
o NET OPERATING EARNINGS (NET INCOME EXCLUDING AMORTIZATION OF INTANGIBLES
AND NON-RECURRING ITEMS) ROSE TO $0.86 for third quarter 2000 from $0.57
per Unit for third quarter 1999, an increase of 51%. Base fee earnings
contributed $0.84 per Unit to total net operating earnings for third
quarter 2000 and $0.55 per Unit for third quarter 1999. Performance fee
earnings contributed $0.02 per Unit for both third quarter 2000 and third
quarter 1999.
ALLIANCE HOLDING
THE PUBLICLY TRADED PARTNERSHIP
PER UNIT SUMMARY FINANCIAL INFORMATION
Pro Pro
Forma Forma
Three Three Nine Nine
Months Months Months Months
Ended Ended Ended Ended
9/30/00 9/30/99(1) Change 9/30/00 9/30/99(1) Change
---------- ----------- ----------- --------- ---------- ---------
DILUTED NET INCOME $ 0.85 $ 0.57 49% $ 2.49 $ 1.67 49%
Amortization of Intangibles 0.01 -- N/A 0.02 0.01 100
Non-recurring Items -- -- N/A (0.13) -- N/A
-------- -------- -------- --------
NET OPERATING EARNINGS (2) $ 0.86 $ 0.57 51% $ 2.38 $ 1.68 42%
======== ======== ==== ======== ========
Base Fee Earnings $ 0.84 $ 0.55 53% $ 2.30 $ 1.55 48%
Performance Fee Earnings 0.02 0.02 -- 0.08 0.13 (38)
-------- -------- -------- --------
NET OPERATING EARNINGS (2) $ 0.86 $ 0.57 51% $ 2.38 $ 1.68 42%
======== ======== ======== ========
UNITHOLDER DISTRIBUTIONS $ 0.84 $ 0.56 50% $ 2.33 $ 1.64 42%
======== ======== ======== ========
(1) Pro forma amounts assume the Alliance Holding reorganization occurred on
January 1, 1999.
(2) Net Operating Earnings per Unit: Diluted Net Income excluding Alliance
Holding's proportionate share of Alliance Capital's amortization of
intangibles and non-recurring items.
ABOUT ALLIANCE CAPITAL
Alliance Capital is a leading global investment management firm. Alliance
Capital had approximately $474 billion in assets under management at October 2,
2000, after the close of the Bernstein acquisition. Alliance Capital is one of
the largest asset managers in the world. Alliance Capital provides 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.
Alliance Capital is also one of the largest mutual fund sponsors, with a diverse
family of globally distributed mutual fund portfolios.
At October 2, 2000, Alliance Holding owns approximately 30% of the units of
limited partnership interest in Alliance Capital. AXA Financial, Inc. owns
approximately 2% of the outstanding Alliance Holding Units and approximately 52%
of the outstanding Alliance Capital Units, amounting to an approximate 53%
economic interest in Alliance Capital. AXA, which has operations in
approximately 60 countries, holds a 60% interest in AXA Financial, Inc.
-FOUR PAGES OF TABLES FOLLOW-
ALLIANCE CAPITAL MANAGEMENT L.P.
(THE OPERATING PARTNERSHIP)
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands)
Three Months Ended Nine Months Ended
------------------------------- ----------------------------
Pro Forma Pro Forma
9/30/00 9/30/99(1) 9/30/00 9/30/99(1)
--------------- -------------- ------------ --------------
Revenues:
Investment Advisory & Services Fees:
Alliance Mutual Funds $ 278,555 $ 207,329 $ 794,400 $ 588,156
Separately Managed Accounts:
Affiliated Clients 12,634 12,222 39,633 39,116
Third-Party Clients 102,989 87,414 311,976 276,386
Distribution Revenues 167,023 115,483 469,701 314,313
Shareholder Servicing Fees 21,462 16,272 62,442 45,069
Other Revenues 32,923 6,442 50,777 20,806
----------- ----------- ----------- -----------
615,586 445,162 1,728,929 1,283,846
----------- ----------- ----------- -----------
Expenses:
Employee Compensation & Benefits 138,771 113,521 398,860 334,493
Promotion & Servicing:
Distribution Plan Payments:
Affiliated 30,804 26,983 95,073 77,858
Third-Party 88,040 56,604 253,875 166,473
Amortization of Deferred Sales Commissions 56,726 42,990 160,612 117,688
Other 36,559 30,164 110,402 85,060
General & Administrative 48,691 47,825 147,720 135,564
Interest 8,131 6,519 32,521 14,499
----------- ----------- ----------- -----------
407,722 324,606 1,199,063 931,635
----------- ----------- ----------- -----------
207,864 120,556 529,866 352,211
Amortization of Intangibles 981 963 2,937 2,890
Non-recurring Items -- -- (23,853) --
----------- ----------- ----------- -----------
Income Before Income Taxes 206,883 119,593 550,782 349,321
Income Taxes 11,377 7,877 30,291 22,733
----------- ----------- ----------- -----------
NET INCOME $ 195,506 $ 111,716 $ 520,491 $ 326,588
=========== =========== =========== ===========
NET OPERATING EARNINGS (2) $ 196,487 $ 112,679 $ 499,575 $ 329,478
=========== =========== =========== ===========
Base Fee Earnings $ 191,679 $ 107,803 $ 483,515 $ 303,250
Performance Fee Earnings 4,808 4,876 16,060 26,228
----------- ----------- ----------- -----------
NET OPERATING EARNINGS (2) $ 196,487 $ 112,679 $ 499,575 $ 329,478
=========== =========== =========== ===========
Total Alliance Capital Management L.P. units outstanding as of September 30,
2000 were 203,866,317 units.
(1) Pro forma amounts assume the Alliance Holding Reorganization occurred on
January 1, 1999. The pro forma financial information reflects the Operating
Partnership as a private partnership that is not subject to a federal tax
of 3.5% on partnership gross income from the active conduct of a trade or
business.
(2) Net Operating Earnings: Net Income excluding amortization of intangibles
and non-recurring items.
ALLIANCE CAPITAL MANAGEMENT L.P.
(THE OPERATING PARTNERSHIP)
ASSETS UNDER MANAGEMENT
THREE MONTHS ENDED SEPTEMBER 30, 2000
($ millions)
Separately
Managed Mutual
Accounts Funds Total
------------- ------------- -------------
BEGINNING OF PERIOD $ 202,838 $ 184,921 $ 387,759
New Accounts/Sales 3,501 18,459 21,960
Terminations/Redemptions (1,794) (14,022) (15,816)
Net Cash Management Sales -- 5,040 5,040
Cash Flow (2,610) (228) (2,838)
--------- --------- ---------
Net New Business (903) 9,249 8,346
Market Depreciation
(4,340) (3,371) (7,711)
--------- --------- ---------
Net Change (5,243) 5,878 635
--------- --------- ---------
END OF PERIOD $ 197,595 $ 190,799 $ 388,394
========= ========= =========
ALLIANCE CAPITAL MANAGEMENT L.P.
(THE OPERATING PARTNERSHIP)
ASSETS UNDER MANAGEMENT
($ millions)
Three Months Ended Nine Months Ended
9/30/00 9/30/99 9/30/00 9/30/99
---------- ----------- ---------- -----------
Average Assets Under Management $392,838 $319,258 $383,063 $306,890
======== ======== ======== ========
Ending Assets Under Management $388,394 $317,274 $388,394 $317,274
======== ======== ======== ========
ALLIANCE CAPITAL MANAGEMENT HOLDING L.P.
(THE PUBLICLY TRADED PARTNERSHIP)
SUMMARY STATEMENTS OF INCOME
(unaudited, in thousands except per Unit amounts)
Three Months Ended Nine Months Ended
--------------------------- ----------------------------
Pro Forma Pro Forma
9/30/00 9/30/99(1) 9/30/00 9/30/99(1)
------------- ------------ ------------ -------------
Equity in Earnings of Operating Partnership $ 68,315 $ 46,135 $ 201,895 $ 134,570
Income Taxes 4,537 4,155 14,793 12,223
---------- ---------- ----------- -----------
NET INCOME $ 63,778 $ 41,980 $ 187,102 $ 122,347
========== ========== =========== ===========
DILUTED NET INCOME $ 0.85 $ 0.57 $ 2.49 $ 1.67
Amortization of Intangibles 0.01 -- 0.02 0.01
Non-recurring Items -- -- (0.13) --
---------- ---------- ----------- -----------
NET OPERATING EARNINGS PER UNIT (2) $ 0.86 $ 0.57 $ 2.38 $ 1.68
========== ========== =========== ===========
Base Fee Earnings per Unit $ 0.84 $ 0.55 $ 2.30 $ 1.55
Performance Fee Earnings per Unit 0.02 0.02 0.08 0.13
---------- ---------- ----------- -----------
NET OPERATING EARNINGS PER UNIT (2) $ 0.86 $ 0.57 $ 2.38 $ 1.68
========== ========== =========== ===========
UNITHOLDER DISTRIBUTIONS
PER UNIT $ 0.84 $ 0.56 $ 2.33 $ 1.64
========== ========== =========== ===========
Total Alliance Capital Management Holding L.P units outstanding as of
September 30, 2000 were 70,857,932 units.
(1) Pro Forma amounts assume the Alliance Holding Reorganization occurred on
January 1, 1999.
(2) Net Operating Earnings per Unit: Diluted Net Income excluding Alliance
Holding's proportionate share of Alliance Capital's amortization of
intangibles and non-recurring items.
Assets Under Management by Client
by Investment Orientation
Post Bernstein Close - As of 10/2/00
--------------------------------------------------------------
Private
Institutional Client Retail Total
--------------- -------------- ------------- ----------------
EQUITY
Domestic $ 135,084 $ 8,123 $ 102,128 $ 245,335
Global & International 26,396 19,265 18,460 64,121
FIXED INCOME
Domestic 64,690 7,177 40,277 112,144
Global & International 3,664 454 10,403 14,521
PASSIVE
Domestic 29,733 6 2,408 32,147
Global & International 5,922 -- -- 5,922
TOTAL
Domestic 229,507 15,306 144,813 389, 626
Global & International 35,982 19,719 28,863 84,564
-------------- -------------- ------------ ---------------
$ 265,489 $ 35,025 173,676 $ 474,190
============== ============== ============ ===============
Assets Under Management by Client
by Investment Vehicle
Post Bernstein Close - As of 10/2/00
--------------------------------------------------------------
Private Client
Institutional Retail Total
-------------- -------------- ------------ ----------------
SEPARATELY MANAGED ACCOUNTS
Parent $ 28,110 $ -- $ -- $ 28,110
Other 221,229 22,401 15,044 258,674
MUTUAL FUNDS
Parent (1) 828 -- -- 828
Other 15,322 12,624 158,632 186,578
-------------- -------------- ------------ ---------------
$ 265,489 $ 35,025 $ 173,676 $ 474,190
============== ============== ============ ===============
Assets Under Management by Client
by Location (2)
Post Bernstein Close - As of 10/2/00
--------------------------------------------------------------
Private
Institutional Client Retail Total
--------------- --------------- ------------- ----------------
U.S. CLIENTS $ 227,054 $ 32,536 $ 154,627 $ 414,217
INTERNATIONAL CLIENTS (NON-U.S.) 38,435 2,489 19,049 59,973
-------------- -------------- ------------ ---------------
$ 265,489 $ 35,025 $ 173,676 $ 474,190
============== ============== ============ ===============
(1) Includes certain mutual funds sponsored by partnership's parent, does not
include Alliance Capital sponsored mutual funds.
(2) Assets are categorized by country domicile of client accounts.
# # #
ALLIANCE CAPITAL MANAGEMENT L.P. AND ALLIANCE CAPITAL MANAGEMENT HOLDING L.P.:
-------------------------------------------------------------------------------
SUPPLEMENTAL FINANCIAL DATA
Alliance Capital Management L.P. ("Alliance Capital") and Alliance Capital
Management Holding L.P. ("Alliance Holding") (NYSE: "AC") are furnishing for
each partnership supplemental financial data in respect of Net Operating
Earnings, units outstanding, weighted average units outstanding (basic) and
weighted average units outstanding (diluted), for the quarterly periods ending
March 31, 2000, June 30, 2000 and September 30, 2000. Net Operating Earnings is
calculated by excluding amortization of intangibles and non-recurring items from
net income.
SUPPLEMENTAL FINANCIAL DATA OF ALLIANCE CAPITAL
THE OPERATING PARTNERSHIP
SUMMARY FINANCIAL INFORMATION FOR 2000 (IN THOUSANDS)
Three Three Three Nine
Months Months Months Months
Ended Ended Ended Ended
3/31/00 6/30/00 9/30/00 9/30/00
---------- ---------- ---------- ----------
NET INCOME $ 171,150 $ 153,835 $ 195,506 $ 520,491
Amortization of Intangibles 975 981 981 2,937
Non-recurring Items (23,853) -- -- (23,853)
--------- --------- --------- ---------
NET OPERATING EARNINGS (2) $ 148,272 $ 154,816 $ 196,487 $ 499,575
========= ========= ========= =========
Base Fee Earnings $ 142,551 $ 149,285 $ 191,679 $ 483,515
Performance Fee Earnings 5,721 5,531 4,808 16,060
--------- --------- ---------
NET OPERATING EARNINGS (2) $ 148,272 $ 154,816 $ 196,487 $ 499,575
========= ========= ========= =========
SUMMARY FINANCIAL INFORMATION FOR 1999 (IN THOUSANDS)
Pro Pro Pro Pro Pro
Forma Forma Forma Forma Forma
Three Three Three Three Twelve
Months Months Months Months Months
Ended Ended Ended Ended Ended
3/31/99(1) 6/30/99(1) 9/30/99(1) 12/31/99(1) 12/31/99(1)
---------- ---------- ---------- ----------- ---------
NET INCOME $108,129 $106,743 $111,716 $168,165 $494,753
Amortization of Intangibles 963 964 963 962 3,852
Non-recurring Items -- -- -- -- --
-------- -------- -------- -------- --------
NET OPERATING EARNINGS (2) $109,092 $107,707 $112,679 $169,127 $498,605
======== ======== ======== ======== ========
Base Fee Earnings $ 92,242 $103,205 $107,803 $129,579 $432,829
Performance Fee Earnings 16,850 4,502 4,876 39,548 65,776
-------- -------- -------- -------- --------
NET OPERATING EARNINGS (2) $109,092 $107,707 $112,679 $169,127 $498,605
======== ======== ======== ======== ========
(1) Pro forma amounts assume the Alliance Holding Reorganization occurred on
January 1, 1999. The pro forma financial information reflects the Operating
Partnership as a private partnership that is not subject to a federal tax
of 3.5% on partnership gross income from the active conduct of a trade or
business.
(2) Net Operating Earnings: Net Income excluding amortization of intangibles
and non-recurring items.
SUPPLEMENTAL FINANCIAL DATA OF ALLIANCE HOLDING
THE PUBLICLY TRADED PARTNERSHIP
PER UNIT SUMMARY FINANCIAL INFORMATION FOR 2000
Three Three Three Nine
Months Months Months Months
Ended Ended Ended Ended
3/31/00 6/30/00 9/30/00 9/30/00
---------- ----------- ----------- -----------
DILUTED NET INCOME $ 0.88 $ 0.76 $ 0.85 $ 2.49
Amortization of Intangibles -- 0.01 0.01 0.02
Non-recurring Items (0.13) -- -- (0.13)
---------- ----------- ----------- -----------
NET OPERATING EARNINGS (2) $ 0.75 $ 0.77 $ 0.86 $ 2.38
========== =========== =========== ===========
Base Fee Earnings $ 0.72 $ 0.74 $ 0.84 $ 2.30
Performance Fee Earnings 0.03 0.3 0.02 0.08
---------- ----------- ----------- -----------
NET OPERATING EARNINGS (2) $ 0.75 $ 0.77 $ 0.86 $ 2.38
========== =========== =========== ===========
PER UNIT SUMMARY FINANCIAL INFORMATION FOR 1999
Pro Pro Pro Pro Pro
Forma Forma Forma Forma Forma
Three Three Three Three Twelve
Months Months Months Months Months
Ended Ended Ended Ended Ended
3/31/99(1) 6/30/99(1) 9/30/99(1) 12/31/99(1) 12/31/99(1)
---------- ----------- ---------- ----------- ----------
DILUTED NET INCOME $ 0.55 $ 0.55 $ 0.57 $ 0.86 $ 2.53
Amortization of Intangibles 0.01 -- -- 0.01 0.02
Non-recurring Items -- -- -- -- --
---------- ----------- ---------- ----------- ----------
NET OPERATING EARNINGS (2) $ 0.56 $ 0.55 $ 0.57 $ 0.87 $ 2.55
========== =========== ========== =========== ==========
Base Fee Earnings
$ 0.48 $ 0.52 $ 0.55 $ 0.67 $ 2.22
Performance Fee Earnings 0.08 0.03 0.02 0.20 0.33
---------- ----------- ---------- ----------- ----------
NET OPERATING EARNINGS (2) $ 0.56 $ 0.55 $ 0.57 $ 0.87 $ 2.55
========== =========== ========== =========== ==========
(1) Pro forma amounts assume the Alliance Holding Reorganization occurred on
January 1, 1999.
(2) Net Operating Earnings per Unit: Diluted Net Income per Unit excluding the
percent effect of Alliance Holding's proportionate share of Alliance
Capital's amortization of intangibles and non-recurring items.
ALLIANCE CAPITAL AND ALLIANCE HOLDING OUTSTANDING UNITS
AND WEIGHTED AVERAGE UNITS
As of September 30, 2000
Weighted Average Weighted Average Weighted Average Weighted Average
Units Outstanding Units Outstanding Units Outstanding Units Outstanding
Units (Basic) (Diluted) (Basic) (Diluted)
Outstanding Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended
---------------- --------------------- --------------------- ------------------- --------------------
Alliance Capital 205,866,317 204,341,407 212,584,384 183,686,752 191,570,796
Alliance Holding 72,857,932 71,333,022 79,575,999 71,327,310 79,211,355