Cannae Holdings Q4 2019 Earnings Report
Key Takeaways
Cannae Holdings reported Q4 2019 results, highlighting strategic initiatives and financial performance across its portfolio companies. D&B's adjusted revenue increased by 6.0%, while Ceridian's total revenue rose by 13.9%. The Restaurant Group faced challenges, with a pretax loss of $48.0 million, but Cannae's liquidity remained strong due to share sales and stock offerings.
Cannae received $265.4 million from selling Ceridian shares, recording a gain of $188.8 million.
The company completed a public offering of common stock, generating net proceeds of $236.0 million.
Cannae entered into an equity commitment to fund up to $125.0 million in equity for the acquisition of AmeriLife Group, LLC.
Cannae contributed its T-System business to a healthcare joint venture, receiving $75.4 million in cash and a 23% equity interest.
Cannae Holdings
Cannae Holdings
Cannae Holdings Revenue by Segment
Forward Guidance
Cannae anticipates a year full of activity in 2020, with a robust pipeline of potential deals.
Positive Outlook
- Cannae's liquidity remains strong due to the sale of Ceridian shares and stock offerings.
- The company is well-positioned to fund future transactions.
- D&B achieved significant cost savings and improved adjusted EBITDA margins.
- Ceridian reported strong cloud revenue growth and an increase in Dayforce global active users.
- The Blue Ribbon Reorganization aims to maximize the value of restaurant assets.
Challenges Ahead
- Restaurant Group reported a pretax loss of $48.0 million for the fourth quarter.
- D&B generated a total GAAP net loss of $263.4 million, a decrease of 439.8% compared to the previous year.
- The Restaurant Group's EBITDA was $(36.2) million for the fourth quarter.
- Cannae's operating loss was $(63.6) million.
- The company's earnings from equity investees decreased by $64.3 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income