Group 1 - Cannae Holdings, Inc. (CNNE) shares increased by 7.8% to close at $17.36, following a notable trading volume that exceeded typical levels [1] - The stock surge was driven by a broader market rally, influenced by President Trump's announcement of a 90-day tariff pause for non-retaliating nations, which boosted investor confidence [2] - Cannae is expected to report a quarterly loss of $0.56 per share, reflecting a year-over-year change of +55.9%, with anticipated revenues of $107.2 million, down 3.2% from the previous year [2] Group 2 - The consensus EPS estimate for Cannae has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] - Cannae Holdings currently holds a Zacks Rank of 3 (Hold), while another company in the same industry, Patria Investments (PAX), saw an 8% increase in its stock price, closing at $10.45 [4] - Patria Investments has a consensus EPS estimate of $0.25 for the upcoming report, representing a year-over-year change of +19.1%, and currently holds a Zacks Rank of 4 (Sell) [5]

Core Viewpoint - Carronade Capital is advocating for the election of four independent director nominees to the Board of Cannae Holdings, citing the need for accountability and independence to address chronic underperformance and governance issues [1][2][3]. Group 1: Nomination and Qualifications - Carronade Capital has nominated four highly qualified candidates: Mona Aboelnaga, Benjamin Duster, Dennis Prieto, and Cherie Schaible, who possess the expertise to drive value creation initiatives [3][4]. - The nominees are described as truly independent and are expected to prioritize shareholder interests over management [3][4]. Group 2: Criticism of Current Board - Carronade Capital criticizes Cannae's current Board for its inadequate response to governance issues and for providing excessive benefits to Bill Foley, including a cash buyout for half his shares at a premium if he resigns under certain conditions [2][3]. - The firm argues that the current Board's actions are insufficient to rectify the significant discount to net asset value (NAV) and that new independent directors are necessary to restore shareholder confidence [3]. Group 3: Value Creation Initiatives - If elected, Carronade's nominees are expected to implement several initiatives aimed at enhancing shareholder value, including timely capital returns through spin-outs or buybacks, refreshing leadership in key committees, and reducing corporate overhead costs [4][5]. - The firm emphasizes the importance of creating a Value Maximization committee to oversee the execution of plans designed to improve shareholder returns [5]. Group 4: Shareholder Engagement - Carronade Capital plans to engage with shareholders leading up to the 2025 Annual Meeting, which is expected to occur around mid-June 2025 [4]. - Shareholders are advised that no action is required from them at this time [4]. Group 5: Company Background - Carronade Capital is a multi-strategy investment firm based in Connecticut, managing over $2.2 billion in assets and focusing on process-driven investments in catalyst-rich situations [5]. - The firm was founded in 2019 by Dan Gropper, who has nearly three decades of experience in special situations credit [5][6].

Investment Activities - In the year ended December 31, 2024, the company sold 4.0 million shares of Dayforce for gross proceeds of $264.0 million[198]. - The company received $14.3 million in cash dividends from Dun & Bradstreet in 2024, with quarterly dividends declared at $0.05 per share[199]. - As of December 31, 2024, the company owned 69.0 million shares of Dun & Bradstreet, representing approximately 15.6% of its outstanding common stock[200]. - The company purchased 1.6 million shares of Paysafe for $23.4 million in January 2024 and sold 0.9 million shares for $16.0 million in November 2024[201]. - The company completed the sale of 12.0 million shares of Alight for aggregate proceeds of $89.0 million on December 3, 2024[203]. - The company invested approximately $80.0 million for a 52.8% ownership interest in Watkins Holdings, which acquired The Watkins Company[206]. - The company invested $36.8 million in Black Knight Football, holding a 47.2% ownership interest as of December 31, 2024[208]. - The company conducted a tender offer to purchase up to $200 million of its common stock, accepting 9,672,540 shares at a purchase price of $22.95 per share for a total cost of $222.0 million[210]. - The company committed to invest $50 million into JANA funds and issued 1.85 million shares of common stock for a 19.99% equity interest in JANA, valued at $55.5 million[349]. - The company sold the remaining 4.0 million shares of Dayforce for gross proceeds of $264.0 million, exiting its investment in Dayforce as of December 31, 2024[343]. Financial Performance - Total operating revenues for the year ended December 31, 2024, were $452.5 million, a decrease of $117.5 million, or 20.6%, compared to $570.0 million in 2023[235]. - The Restaurant Group segment's revenues decreased by $116.4 million, or 21.7%, in 2024, primarily due to the closure of 99 Restaurants and O'Charley's stores and a decline in comparable store sales[247]. - The company's net loss attributable to common shareholders was $304.6 million for the year ended December 31, 2024, a decrease of $8.8 million compared to 2023[245]. - Total operating expenses for the year ended December 31, 2024, were $556.2 million, down from $688.9 million in 2023[235]. - The company recorded an operating loss of $103.7 million for the year ended December 31, 2024, compared to an operating loss of $118.9 million in 2023[235]. - The effective tax rate for the year ended December 31, 2024, was 0.2%, significantly lower than 37.2% in 2023, primarily due to a valuation allowance of $47.7 million on federal net operating loss carryforwards[242]. - The net loss for the year ended December 31, 2024, was $310.1 million, compared to a net loss of $324.1 million in 2023 and $429.6 million in 2022[335]. - Restaurant revenue declined to $419.6 million in 2024, down 21.8% from $536.0 million in 2023[324]. - Operating loss for 2024 was $103.7 million, compared to a loss of $118.9 million in 2023, showing an improvement of 11.3%[324]. - Net loss attributable to Cannae Holdings, Inc. common shareholders was $304.6 million in 2024, slightly improved from $313.4 million in 2023[324]. Tax and Deferred Assets - As of December 31, 2024, the company had a net deferred tax asset of $73.9 million, with an additional valuation allowance of $47.7 million recorded for federal net operating loss carryforwards[226]. - The company will continue to monitor the recoverability of deferred tax assets on a quarterly basis, indicating potential future adjustments[227]. - The company expects to realize other deferred tax assets based on sufficient taxable income and available excess capital gains from prior years[227]. - The company recognizes deferred tax assets and liabilities based on enacted tax rates expected to apply to taxable income in future years[383]. - The company accounts for uncertain tax positions only after determining a more likely than not probability that they will withstand challenge from taxing authorities[384]. Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2024, totaled $131.5 million, including $113.2 million held by the corporate holding company[267]. - Operating cash flows for the year ended December 31, 2024, were $90.1 million, an increase of $2.3 million from 2023, primarily due to lower tax payments and cash expenses[271]. - Investing cash flows provided by investing activities increased to $298.3 million in 2024, up $245.2 million from 2023, mainly due to proceeds from sales of Dayforce, D&B, and Alight[272]. - Financing cash flows used in financing activities rose to $182.9 million in 2024, an increase of $76.1 million from 2023, attributed to the Tender Offer and dividends paid[274]. - The company expects its cash requirements over the next 12 months to be satisfied by cash equivalents, short-term investments, and capacity under credit agreements[269]. - The company actively manages the impact of rising interest rates on both idle cash and outstanding debt to ensure liquidity[268]. Equity and Shareholder Information - The company held $56.2 million in equity securities at fair value as of December 31, 2024, with a potential $11.2 million increase or decrease in fair value from a 20% market price fluctuation[282][283]. - The balance of retained earnings decreased to $567.1 million by December 31, 2024, from $901.3 million in 2023[335]. - The total equity at the end of 2024 was $1,815.3 million, a decrease from $2,309.2 million at the end of 2023[335]. - Weighted average shares outstanding on a basic basis decreased to 64.4 million in 2024 from 73.4 million in 2023[324]. - The company repurchased treasury stock totaling $231.4 million in 2024, compared to $113.2 million in 2023[335]. Impairments and Losses - The company recorded an impairment of $149.5 million for its investment in Sightline due to a decline in fair market value[223]. - The fair value of Cannae's investment in Alight was $280.1 million as of December 31, 2024, compared to a book value of $374.0 million, indicating a potential impairment[306]. - The equity losses from Dun & Bradstreet for the years ended December 31, 2024, 2023, and 2022 were $13.7 million, $17.1 million, and $8.8 million respectively[302]. - The equity losses from Alight for the years ended December 31, 2024, 2023, and 2022 were $15.5 million, $35.1 million, and $1.6 million respectively[302]. - The company recorded impairments to Property and equipment of $1.0 million, $8.1 million, and $1.3 million, respectively, primarily related to closed O'Charley's stores[381]. Audit and Compliance - The Company expressed an unqualified opinion on its internal control over financial reporting as of December 31, 2024[301]. - The financial statements of Cannae Holdings were audited in accordance with PCAOB standards, ensuring reasonable assurance against material misstatement[304]. - The Company has been audited by Deloitte & Touche LLP since 2017, indicating a long-term relationship with the auditing firm[309]. - The financial statements present fairly the financial position of Cannae Holdings as of December 31, 2024, in conformity with U.S. GAAP[312]. Operational Changes and Strategies - The company closed 77 O'Charley's stores in 2023 as part of a strategy to renegotiate or terminate leases with unfavorable cash flow profiles[234]. - Cannae Holdings plans to focus on improving operational efficiency and exploring strategic partnerships for future growth[324]. - The management fee under the Third Amended Management Services Agreement will be reduced to a fixed amount of $7.6 million annually starting July 2, 2024[277].

Financial Data and Key Metrics Changes - Cannae's total operating revenue for Q4 2024 was $110 million, an 8% decrease compared to Q4 2023, primarily due to lower restaurant revenue [23] - The aggregate net asset value (NAV) of the company is approximately $1.9 billion, equating to $29.78 per share on an after-tax basis, while Cannae shares closed at $19.19, reflecting a 36% discount to NAV [29] Business Line Data and Key Metrics Changes - Dun and Bradstreet (DNB) reported Q4 2024 revenue of $632 million, showing less than 1% constant currency organic growth, with adjusted EBITDA at $260 million, down slightly from the previous year [17] - Alight posted total revenue from continuing operations of $680 million for Q4 2024, a 0.3% decrease from Q4 2023, while adjusted EBITDA increased by 5% to $217 million [19] - AFC Bournemouth's revenues increased nearly GBP 20 million or 14% in fiscal year 2024, with expectations for further growth in 2025 [10] Market Data and Key Metrics Changes - The restaurant operating expenses in Q4 2024 were $170 million, accounting for 81% of total operating expenses, which is approximately 300 basis points lower than Q4 2023 [24] - Cannae recognized a $12.5 million gain from an early exit from the restaurant support center, offset by losses from the sale of shares in Alight and Paysafe [26] Company Strategy and Development Direction - The company aims to increase NAV and narrow the discount to intrinsic value through improving portfolio company performance, making new investments, and returning capital to shareholders [7] - Cannae plans to prioritize share buybacks and use proceeds from public company sales to pay down debt and invest in new and existing portfolio companies [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the portfolio's ability to drive future value creation and grow NAV, highlighting new private investments expected to generate high returns [11] - The management team is focused on generating cash flow to cover dividends and operating expenses, indicating that they are still working towards this goal [42] Other Important Information - The company internalized its external manager and brought back Bill Foley as CEO, aligning management compensation with shareholder interests [15] - Cannae has over $108 million in corporate cash and short-term investments, with $101 million on margin loans and $60 million of net debt at a weighted average of 7.35% [28] Q&A Session Summary Question: Impact of Bournemouth's performance on financials - Management noted that Bournemouth's performance could have a significant financial impact, including additional media dollars and match day revenues from European competitions [36] Question: Dividend funding through cash flow - Management indicated they are still a ways away from fully covering the dividend through cash flow but are focused on generating cash from investments [42] Question: Appetite for share buybacks - Management confirmed that share buybacks are a priority, contingent on the stock price and potential monetization events from public company investments [46] Question: Capital funding for Black Knight Football - Management discussed the capital funding needs for AFC Bournemouth, including player transfers and infrastructure investments [55] Question: Alight's management changes - Management clarified that Bill Foley stepped down as Chairman but remains involved, and they believe the new board will add value to Alight's long-term strategy [58] Question: JANA partnership activity - Management stated that discussions with JANA Partners are very active, with specific targets being discussed that could be beneficial for Cannae [65]

Cannae (CNNE) Q4 2024 Earnings Call February 24, 2025 05:00 PM ET Company Participants Jamie Lillis - Investor Relations-Solebury TroutRyan Caswell - PresidentBryan Coy - CFOJohn Campbell - Managing DirectorIan Zaffino - Managing DirectorKenneth Lee - Vice President Operator Good afternoon, ladies and gentlemen, and welcome to the Cannae Holdings Fourth Quarter twenty twenty four Financial Results Conference Call. During today's presentation, all parties will be in a listen only mode. Following the company' ...

Financial Performance - Dun & Bradstreet reported Q4 2024 total revenue of $632 million, with organic constant currency growth of less than 1% year-over-year, and full-year revenue of $2.38 billion, a 2.9% increase [9][13]. - Alight's Q4 2024 revenue was $680 million, down 0.3% from Q4 2023, but up 23% sequentially from Q3 2024, with BPaaS revenue growing nearly 10% to $146 million [21][22]. - Paysafe reported Q4 2024 total revenues of $420 million, an increase from $414.5 million in Q4 2023, with a net income of $34 million compared to a loss of $12.1 million [27]. - Revenue for Q4 2024 is estimated at $420 million, a 1% increase from Q4 2023, or 4% when excluding disposed business [31]. - Net income for Q4 2024 is expected to be between $31 million and $37 million, compared to a net loss of $12 million in Q4 2023 [31]. - Adjusted EBITDA for Q4 2024 is estimated at $103 million, a 16% decrease, or a 1% increase when excluding disposed business [31]. - Adjusted EBITDA for Dun & Bradstreet in Q4 2024 was $260 million, a slight decrease from the previous year, with an Adjusted EBITDA margin of 41.2% [14]. - Adjusted EBITDA for Alight increased 5.3% to $217 million in Q4 2024, with a margin improvement of 170 basis points year-over-year [22]. - Adjusted EBITDA for Paysafe was $103 million for Q4 2024, down from $121.7 million in Q4 2023, reflecting a decrease of approximately 15% [85]. - Adjusted EBITDA for Cannae Holdings in Q4 2024 was $1.4 million, a decrease from $2.4 million in Q4 2023, indicating a decline of approximately 42% [91]. Investments and Shareholder Actions - Cannae executed a Dutch tender auction, repurchasing over $200 million of shares and raised $470 million from portfolio company sales in 2024 [5]. - Cannae's portfolio company Alight initiated a quarterly dividend program and repurchased $12 million of shares in Q4 2024, totaling $167 million in buybacks for the year [23]. - Cannae holds 69 million shares of Dun & Bradstreet, valued at approximately $651 million as of February 21, 2025 [18]. - Cannae has invested $214 million in Black Knight Football, representing an approximate 47% ownership interest [50]. Net Income and Losses - Cannae's net loss attributable to common shareholders for Q4 2024 was $46.1 million, compared to a loss of $58.4 million in Q4 2023 [56]. - Net income attributable to Dun & Bradstreet was $7.8 million in Q4 2024, up from $1.7 million in Q4 2023 [76]. - Net income from continuing operations for Alight was $29.0 million in Q4 2024, a significant recovery from a loss of $121.0 million in Q4 2023 [79]. - Paysafe reported a net income of $34 million for the three months ended December 31, 2024, compared to a net loss of $12.1 million in the same period of 2023 [85]. - Cannae Holdings reported net earnings of $6.9 million for Q4 2024, down from $15.8 million in Q4 2023 [91]. Assets and Liabilities - Total current assets increased to $196.9 million in Q4 2024 from $177.3 million in Q4 2023, representing an increase of 9.1% [59]. - Total assets decreased to $2,228.9 million in Q4 2024 from $2,686.7 million in Q4 2023, a decline of 17.0% [59]. - Total liabilities increased to $413.6 million in Q4 2024 from $377.5 million in Q4 2023, an increase of 9.5% [59]. - Retained earnings decreased significantly to $567.1 million in Q4 2024 from $901.3 million in Q4 2023, a decrease of 37.0% [59]. Future Guidance - Alight provided 2025 revenue guidance of $2.32 billion to $2.39 billion, with Adjusted EBITDA expected between $620 million and $645 million [24]. - Full year 2025 revenue growth is expected to be between 6.5% and 8.0%, with adjusted EBITDA margin between 27.1% and 27.6% [32]. Miscellaneous - Cannae's net leverage at year-end 2024 was reduced to 3.6 times, down from 3.8 times at the end of 2023 [15]. - System1 reported total revenue of $88.8 million for Q3 2024, a $1 million increase from Q3 2023 [38]. - System1's adjusted EBITDA for Q3 2024 was $10.3 million, a 27% increase from $8.1 million in Q3 2023 [39]. - AFC Bournemouth is currently in 6th place in the Premier League, providing a place in European competition [45]. - The club has increased season ticket and matchday revenue by approximately 20% over the past two seasons [47]. - Cannae's investment in D&B is accounted for using the equity method, reflecting its proportionate share of D&B's net earnings or loss [74]. - Cannae's investment in Paysafe is accounted for at fair value, and its results do not consolidate into the Company's financials [82]. - Cannae Holdings will hold its fourth quarter 2024 conference call on February 24, 2025, at 5:00 pm ET [92]. - The company’s common stock is listed on the New York Stock Exchange under the symbol CNNE [96].

Group 1 - Cannae Holdings, Inc. (CNNE) shares have increased by 11.3% over the past four weeks, closing at $21.70, with a mean price target of $27.33 indicating a potential upside of 25.9% [1] - The average price targets range from a low of $27 to a high of $28, with a standard deviation of $0.58, suggesting a relatively high agreement among analysts regarding the stock's price movement [2][7] - Analysts are optimistic about CNNE's earnings prospects, as indicated by upward revisions in earnings estimates, which have shown a strong correlation with near-term stock price movements [4][9] Group 2 - The Zacks Consensus Estimate for CNNE has increased by 1.7% over the last 30 days, with no negative revisions, indicating positive sentiment among analysts [10] - CNNE holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, suggesting a strong potential upside [11] - While consensus price targets may not be reliable for predicting the exact price movement, they can provide a useful directional guide for investors [12]

Cannae Holdings, Inc. (CNNE) closed the last trading session at $20.43, gaining 3.8% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $27.67 indicates a 35.4% upside potential.The average comprises three short-term price targets ranging from a low of $27 to a high of $28, with a standard deviation of $0.58. While the lowest estimate indicates an increase of 32.2% from the current pr ...

Cannae Holdings, Inc. (NYSE:CNNE) Q3 2024 Earnings Conference Call November 12, 2024 5:00 PM ET Company Participants Jamie Lillis - Solebury Strategic Communications Ryan Caswell - Chief Executive Officer Bryan Coy - Chief Financial Officer Conference Call Participants Kenneth Lee - RBC Capital Markets John Campbell - Stephens Ian Zaffino - Oppenheimer Operator Good afternoon, ladies and gentlemen, and welcome to the Cannae Holdings Third Quarter 2024 Financial Results Conference Call. During today’s presen ...

Cannae Holdings, Inc. (CNNE) came out with a quarterly loss of $0.22 per share versus the Zacks Consensus Estimate of a loss of $0.34. This compares to loss of $2.18 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 35.29%. A quarter ago, it was expected that this company would post a loss of $0.29 per share when it actually produced a loss of $0.16, delivering a surprise of 44.83%.Over the last four quarters, the company has su ...