Cannae(US:CNNE)2025-11-10 22:01Financial Performance - Restaurant revenue for Q3 2025 was $94.6 million, down 7.3% from $102.1 million in Q3 2024[130] - Total operating revenues decreased to $106.9 million in Q3 2025 from $113.9 million in Q3 2024, a decline of 6.1%[130] - Operating loss for Q3 2025 was $13.2 million, an improvement from a loss of $18.1 million in Q3 2024[130] - Net loss attributable to Cannae Holdings, Inc. common shareholders was $68.4 million in Q3 2025, compared to a loss of $13.6 million in Q3 2024[130] - Pre-tax loss before equity in losses of unconsolidated affiliates decreased by $9.4 million, or 324.1%, in Q3 2025 compared to Q3 2024[138] - Total revenues for the Restaurant Group segment decreased by $7.5 million, or 7.3%, in the three months ended September 30, 2025, primarily due to a decline in comparable store sales[147] - Total revenues for the Restaurant Group segment decreased by $20.6 million, or 6.5%, in the nine months ended September 30, 2025, mainly due to a decline in comparable store sales[149] - Pre-tax earnings before income taxes increased by $44.8 million, or 22.0%, in the nine months ended September 30, 2025, compared to the same period in 2024[142] Investment and Impairment - The company recorded an impairment of $59.1 million on its investment in Alight as of June 30, 2025, due to a significant decline in fair value[125] - As of September 30, 2025, the book value of the investment in Alight was $147.4 million, with a fair value of $132.0 million[126] - Equity in losses of unconsolidated affiliates totaled $(57.5) million for the three months ended September 30, 2025, compared to $(25.3) million in 2024, primarily driven by Alight's goodwill impairment of $1,338 million[140] - Equity in losses of Alight for the nine months ended September 30, 2025, was $(155.1) million, significantly impacted by a goodwill impairment of $2,321 million[145] Tax and Deferred Assets - The company has a net deferred tax asset of $50.4 million as of September 30, 2025, primarily due to temporary differences related to investments[128] - A valuation allowance of $99.0 million was recorded on the company's federal NOL carryforwards and certain deferred taxes[128] - Income tax benefit was $3.8 million for the three months ended September 30, 2025, compared to $6.4 million in 2024, with an effective tax rate of 58.5% in 2025 versus (220.7)% in 2024[139] - The effective tax rate for the nine months ended September 30, 2025, was (9.2)%, compared to (7.0)% in 2024, influenced by equity in losses of unconsolidated affiliates[144] Cash Flow and Dividends - Cash flows from investing activities increased to $493.8 million for the nine months ended September 30, 2025, up from $307.1 million in 2024, primarily due to the sale of the remaining interest in D&B for $629.8 million[176] - Cash flows used in operations decreased to $34.1 million for the nine months ended September 30, 2025, from $78.1 million in 2024, mainly due to tax refunds and lower operating expenses[175] - The company had cash and cash equivalents of $233.8 million as of September 30, 2025, with $225.8 million held by the corporate holding company[171] - The company declared a cash dividend of $0.15 per share on November 4, 2025, payable on December 31, 2025[170] Stock Repurchase - The company repurchased 2,295,463 shares of common stock for approximately $42.1 million during the nine months ended September 30, 2025, averaging $18.33 per share[183] - The company authorized a stock repurchase program allowing the repurchase of up to 10.0 million shares of common stock[184] - During Q3 2025, the company repurchased 6,212,998 shares for approximately $120.4 million, averaging $19.38 per share[185] - For the nine months ended September 30, 2025, the total shares repurchased amounted to 9,705,074 for about $189.8 million, averaging $19.56 per share[185] - From October 1, 2025, to November 7, 2025, an additional 294,926 shares were repurchased for approximately $5.4 million, averaging $18.21 per share[185] - Since the start of the 2022 Repurchase Program, a total of 10,000,000 shares have been repurchased for approximately $195.2 million, averaging $19.52 per share[185] - As of November 7, 2025, there are no shares available for repurchase under the 2023 Repurchase Program[185] - The company authorized a new stock repurchase program on March 24, 2025, allowing for the repurchase of up to 10.0 million shares[186] - As of September 30, 2025, no purchases had been made under the 2025 Repurchase Program, leaving 10.0 million shares available for repurchase[186] - From October 1, 2025, to November 7, 2025, the company repurchased 2,003,608 shares for approximately $36.9 million, averaging $18.38 per share under the 2025 Repurchase Program[186] - As of the date of the Quarterly Report, there are 7,996,392 shares available for repurchase under the 2025 Repurchase Program[187]