Cannae(US:CNNE)2023-02-28 16:00Financial Performance - Total revenue for 2022 decreased by $80.1 million compared to 2021, primarily due to a decline in the Restaurant Group segment[495]. - Net earnings for 2022 were $4.1 million, a significant improvement from a net loss of $65.9 million in 2021[498]. - The company’s loss before income taxes improved to $(27.2) million in 2022 from $(45.2) million in 2021[498]. - The company recognized net losses of $(189.0) million for the year ended December 31, 2022, compared to $(312.9) million in 2021[524]. Revenue and Sales - Comparable store sales for the 99 Restaurants brand changed by 7.5% in 2022, attributed to an increase in average spending per visit despite a decrease in guest counts[497]. - Total revenues for Paysafe for the year ended December 31, 2022, were $3,132.0 million, with a net loss of $72.0 million[499]. Expenses and Costs - Cost of restaurant revenue decreased by $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 $154.1 million in 2022, a slight decrease from $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 $205.1 million, an increase of $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 $521.2 million, a change of $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 $14.3 million for the year ended December 31, 2022, compared to $13.7 million in 2021[524]. - Cash flows used in financing activities for the year ended December 31, 2022, were $(154.2) million, a decrease of $36.2 million from 2021 due to reduced borrowings[524]. Shareholder Actions - The company repurchased 9,483,416 shares of common stock for approximately $198.5 million in 2022, averaging $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 $99.6 million, with $82.9 million due in 2023[525]. - Operating lease payments total $242.1 million, with $34.2 million due in 2023[525]. - Management fees payable to the Manager total $67.7 million, with $36.9 million due in 2023[525].