Alliance Capital Management L.P. reports 19 percent increase in third quarter earnings.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY--(BUSINESS WIRE)--October 31, 1996-- Distribution of available cash flow increased to 55 cents per unit Alliance Capital Management L.P. (NYSE NYSE See: New York Stock Exchange : "AC") today reported net income of $49.0 million or $0.57 per Unit for the quarter ended September September: see month. 30, 1996, an increase of 19% from $41.0 million or $0.50 per Unit for the quarter ended September 30, 1995. Revenues for the quarter ended September 30, 1996 increased 20% to $198.0 million versus $164.7 million for the third quarter of 1995. The Partnership's net income for the nine months ended September 30, 1996 was $141.1 million, or $1.66 per Unit, an increase of $28.8 million (26%) from $112.3 million or $1.37 per Unit for the nine months ended September 30, 1995. Revenues for the nine months ended September 30, 1996 were $575.8 million versus $463.5 million for the prior year period. Assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. as of September 30, 1996 grew to $173.7 billion. The Partnership also announced a distribution of $0.55 per Unit for the third quarter of 1996, a 15% increase over the $0.48 distributed for the third quarter of 1995. The third quarter distribution is payable on November November: see month. 18, 1996 to holders of Units at the close of business on November 11, 1996. Chairman Dave H. Williams cited "the continued positive momentum of the capital markets and Alliance's good investment performance as significant factors in the excellent results for the third quarter." Alliance also experienced growth in its separately managed accounts business and continued strong inflows into mutual funds and investment products for the individual investor, particularly cash management services. Third Quarter Highlights -- Pegasus Two Limited, organized in the Cayman Islands Cayman Islands (kā`mən), British dependency (2005 est. pop. 44,300), 100 sq mi (259 sq km), comprising three islands in the West Indies. , raised approximately $576 million in assets under management. The Fund will invest in a portfolio of high credit quality U.S. dollar denominated, short-duration, government, mortgage-related and asset-backed securities Asset-backed security A security that is collateralized by loans, leases, receivables, or installment contracts on personal property, not real estate. asset-backed security A debt security collateralized by specific assets. . -- The Asian Technology Fund, a Luxembourg registered mutual fund for non-U.S. citizens or residents, was introduced and raised approximately $41.6 million in assets under management. The Fund will seek long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. capital appreciation, primarily through investment in a portfolio of equity and equity-related securities of Asian technology companies. -- The Alliance Real Estate Investment Fund, the first investment offering of Alliance Capital/Koll Real Estate Securities, was launched. The Fund will seek to provide investors with total return in two ways: growth of capital and income. At least 65% of the Fund's total assets will be invested in REITs or other real estate industry companies. -- Early in the fourth quarter, Alliance introduced Advisor Class shares, a new class of mutual fund shares with no 12b-1 fees or other sales charges Sales Charge A commission or fee paid by an investor at the time of purchasing mutual fund shares. The charge is paid to a mutual fund salesperson or financial advisor and is intended to provide compensation for the financial salesperson's efforts in assisting their client select . Advisor Class shares are available on Alliance equity funds through registered investment advisors Registered Investment Advisor (RIA) is a designation obtainable in the United States by an individual who has registered with the U.S. Securities and Exchange Commission or state regulatory agency (where the primary business is situated or multiple States in some cases) in and participating advisor distribution systems. -- The formation of Albion Alliance LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control was completed. Albion Alliance LLC is a new company dedicated to providing investment opportunities in private and illiquid Illiquid An asset or security that cannot be converted into cash very quickly (or near prevailing market prices). Notes: A house is a good example of an illiquid asset. See also: Cash, Liquidity Illiquid In the context of finance. securities for institutions, with particular emphasis on emerging markets. -- Alliance acquired a majority interest in East Fund Managementberatung GmbH ("EFM (Ethernet in the First Mile) Using Ethernet to provide connectivity from the customer to the carrier. See 802.3ah. "), in Vienna, Austria. EFM manages two Luxembourg registered funds, one equity and one fixed income, with total assets under management of $34.1 million. -- The United States District Court United States District Court In the U.S., any of the 94 trial courts of general jurisdiction in the federal judicial system. Each state, as well as the District of Columbia and the Commonwealth of Puerto Rico, has at least one federal district court. for the Southern District of New York dismissed all counts of the Consolidated and Supplemental Class Action Complaint filed against Alliance and Alliance North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Government Income Trust. The plaintiffs have filed a motion requesting that the Court reconsider re·con·sid·er v. re·con·sid·ered, re·con·sid·er·ing, re·con·sid·ers v.tr. 1. To consider again, especially with intent to alter or modify a previous decision. 2. its decision. Alliance Capital Management L.P. is a leading global investment adviser, providing investment management services to institutions, primarily pension funds, endowments, insurance companies and banks, and to individual investors through a broad line of mutual funds and cash management products. The Partnership's general partner is a wholly-owned subsidiary of The Equitable equitable adj. 1) just, based on fairness and not legal technicalities. 2) refers to positive remedies (orders to do something, not money damages) employed by the courts to solve disputes or give relief. (See: equity) EQUITABLE. Companies Incorporated (NYSE: "EQ") and approximately 57% of the Partnership's outstanding Units are beneficially owned by Equitable. -0-
ALLIANCE CAPITAL MANAGEMENT L.P.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands except per Unit amounts)
Three Months Ended Nine Months Ended
9/30/96 9/30/95 9/30/96 9/30/95
Revenues:
Investment advisory and
services fees:
Alliance mutual funds $72,980 $61,417 $212,653 $168,566
Separately managed accounts:
Affiliated clients 10,833 9,610 32,699 33,451
Third party clients 57,907 46,600 167,109 129,017
Distribution plan fees
from Alliance mutual funds 42,032 33,388 121,097 93,036
Shareholder servicing and
administration fees 11,811 10,825 34,834 32,115
Other revenues 2,435 2,826 7,371 7,285
------- ------- ------- -------
197,998 164,666 575,763 463,470
------- ------- ------- -------
Expenses:
Employee compensation and
benefits 53,754 43,950 157,230 125,477
Promotion and servicing:
Distribution plan payments
to financial intermediaries:
Affiliated 7,828 6,222 22,520 17,061
Unaffiliated 29,303 22,707 83,749 62,680
Amortization of deferred
sales commissions 13,406 12,645 38,772 38,172
Other 11,601 9,244 35,919 29,822
General and administrative 24,584 23,211 73,540 62,724
Interest 605 238 1,319 877
Amortization of intangible
assets 4,259 2,186 11,353 6,560
------- ------- ------- -------
145,340 120,403 424,402 343,373
------- ------- ------- -------
Income before income taxes 52,658 44,263 151,361 120,097
Income taxes 3,701 3,256 10,307 7,806
------- ------- ------- -------
Net income $48,957 $41,007 $141,054 $112,291
======= ======= ======= =======
Net income per Unit $0.57 $0.50 $1.66 $1.37
======= ======= ======= =======
Weighted average Units
outstanding 84,880 81,596 84,222 81,456
======= ======= ======= =======
Distribution per Unit $0.55 $0.48 $1.60 $1.32
======= ======= ======= =======
September 30, December 31,
1996 1995 1995
Assets Under Management $173,692 $141,407 $146,521
(millions) ======= ======= =======
CONTACT: Investors - Robert Joseph For the wine writer, see . Robert G. Joseph (born 1949, Williston, North Dakota) is the United States Special Envoy for Nuclear Nonproliferation. Prior to this post, Dr. Joseph was the Under Secretary of State for Arms Control and International Security. (212) 969-2384 Media - Linda Finnerty (212) 969-1316 |
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