Cannae(US:CNNE)2022-11-10 00:34Financial Data and Key Metrics Changes - The company repurchased approximately 2.1 million shares at an average price of $20.76, representing a 43% discount to its estimated net asset value [6][7] - Over the past year, the company has repurchased 13.75 million shares, which is about 15% of the company [6][7] - The company raised cash by selling CorroHealth for $80 million and 75% of its stake in AmeriLife for $243 million, achieving a 2.7 times multiple on the initial investment [8][9] Business Line Data and Key Metrics Changes - Dun and Bradstreet reported a 4% growth in organic revenue and a 7% increase in overall revenues in constant currency, maintaining a 40% EBITDA margin [10] - Alight generated approximately 8.7% of overall revenues with nearly 10% growth in its Employer Services segment, and its BPaaS offering grew 56% year-over-year [11][12] Market Data and Key Metrics Changes - Sightline is progressing in cashless gaming, working with Resorts World in Las Vegas to implement its cashless gaming system [13] - JPMorgan Payments made a strategic investment in Sightline, enhancing liquidity and providing a strong endorsement [14] Company Strategy and Development Direction - The company plans to continue share buybacks as long as the stock trades at a significant discount to NAV, while also exploring new investment opportunities [22][25] - The company is committed to finding ways to bring in third-party capital for new investments to preserve its own capital [23] - The company has made new investments in a core processing company for small banks and a Premier League football club, indicating a diversification strategy [15][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future of the gaming market, believing that the liberalization of gaming markets is inevitable [42] - The company is focused on executing its cashless solution in casinos and is not expecting monetization of Sightline in the near term [41] - Management highlighted the potential for significant growth in the sports betting industry, projecting it to be a $50 billion industry by 2025 [43] Other Important Information - The company has authorized an additional 10 million shares for buybacks, indicating a strong commitment to returning value to shareholders [7] - The company is actively participating in upcoming investor conferences, showcasing its commitment to investor relations [50] Q&A Session Summary Question: Plans for cash from AmeriLife sale - Management indicated three options: aggressive share buybacks, new investments, and potential support for existing portfolio companies [22][25] Question: Valuations in private vs public equity - Management stated that public equity offers better valuations currently [22] Question: Details on soccer team investment - Management clarified that the maximum commitment is $125 million with no future obligations, and the investment is structured to align interests with the general partner [31][34] Question: Benefits from JPMorgan partnership for Sightline - Management noted that the partnership will enhance approval rates and provide strategic advice, unlocking significant growth potential for Sightline [38][39] Question: Long-term outlook for sports betting - Management remains optimistic about the liberalization of gaming markets and the continued growth of the industry despite recent challenges [42][43] Question: Future of SPAC activity for Cannae - Management indicated no current plans for SPACs but acknowledged their potential as an alternative to IPOs in the future [46][47]