Cannae(CNNE)2023-02-28 16:00Financial Performance - Total revenue for 2022 decreased by 4.1 million, a significant improvement from a net loss of (27.2) million in 2022 from (189.0) million for the year ended December 31, 2022, compared to 3,132.0 million, with a net loss of 46.0 million, or 7.5%, in 2022 compared to 2021[497]. - The company’s total operating expenses in the Corporate and Other segment were 159.4 million in 2021[499]. - The company’s cost of restaurant revenue includes significant personnel costs, which are a major component of operating expenses[513]. Cash Flows and Investments - Operating cash flows used in operations for the year ended December 31, 2022, were 29.0 million from 2021 due to increased operating loss and timing of payments[524]. - Cash flows provided by investing activities for the year ended December 31, 2022, were 793.6 million from 2021 primarily due to proceeds from sales of investments[524]. - Total capital expenditures for property and equipment and other intangible assets were 13.7 million in 2021[524]. - Cash flows used in financing activities for the year ended December 31, 2022, were 36.2 million from 2021 due to reduced borrowings[524]. Shareholder Actions - The company repurchased 9,483,416 shares of common stock for approximately 20.93 per share[508]. - As of December 31, 2022, the company owned approximately 5.6% of the outstanding common stock of Paysafe, accounting for its ownership under the equity method[498]. Strategic Investments and Acquisitions - The company completed the acquisition of a minority interest in FC Lorient, a football club in France's Ligue 1, in February 2023[508]. - The company completed the sale of net assets of VIBSQ, RC, and Legendary Baking in 2021, impacting comparability of results[510]. Market and Operational Risks - The Restaurant Group segment is exposed to market price fluctuations in beef, seafood, produce, and other food products, which can materially impact food and beverage costs[527]. - The company does not use financial instruments to hedge against market price fluctuations in food product prices[527]. Employee and Management Information - As of December 31, 2022, Cannae and its consolidated subsidiaries had a total of 11,988 employees, with 11,785 in the Restaurant Group[393]. - None of the employees are unionized or represented by any collective agency, and employee relations are generally considered good[393]. - The company has made strategic investments in information security to protect client and information systems, including capital expenditures and operating expenses on hardware and software[391]. - The company has established risk management policies related to information security and cybersecurity to monitor and mitigate risks[392]. Obligations and Payments - Unconditional purchase obligations total 82.9 million due in 2023[525]. - Operating lease payments total 34.2 million due in 2023[525]. - Management fees payable to the Manager total 36.9 million due in 2023[525].