NYSE$CNNE

Cannae Holdings Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Cannae Holdings reported results for Q4 2019.

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.

Headline financials

Total Revenue

$279M

Previous: $317M-12.2%
EPS (adj)

$0.91

Previous: $0.88+3.4%
Net Income

$24.5M

Previous: $47M-47.9%
Operating Income

-$63.6M

Previous: -$48.4M-31.4%
Gross Profit

$16.2M

Previous: $26M-37.7%
Cash & Equivalents

$534M

Previous: $316M+69.1%
Total Assets

$2.09B

Previous: $1.46B+43.4%
Stock-Based Comp

$1.3M

Previous: $800K+62.5%

Revenue & EPS history

Cannae Holdings · Revenue · Quarterly

$279M

Q4 2019-12.2%vs Q4 2018
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Cannae Holdings · $271M total across 1 segment · Q4 2019

  • Restaurant Group
    $271M-9.1%

Forward guidance

Cannae anticipates a year full of activity in 2020, with a robust pipeline of potential deals.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

-0.4%

Avg return

Earnings day

-0.8%

Avg return

5 days after

-0.9%

Avg return

30 days after

42%

16 / 38 earnings

Positive

+19.6%

Q3 2019

Best reaction

-14.5%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.5%-7.4%
Q4 2025-10.2%-3.7%-13.0%
Q3 2025-9.6%-10.0%-0.8%
Q1 2025-6.0%-2.1%+5.1%
Q4 2024-0.5%+4.4%-1.8%
Q3 2024-1.1%-4.6%-3.1%
Q2 2024-1.3%-2.1%-1.5%
Q1 2024+4.1%+6.0%-12.2%
Q4 2023+9.0%+8.5%+9.3%
Q3 2023-1.3%+1.3%+6.1%
Q2 2023-4.6%-1.4%-1.7%
Q1 2023-2.4%-1.4%+9.8%
Q4 2022+2.7%-0.2%-14.5%
Q3 2022+9.2%+10.8%-4.6%
Q2 2022-1.6%+1.3%-3.2%
Q1 2022-14.5%-10.7%-3.9%
Q4 2021-8.2%-10.9%-14.8%
Q3 2021-2.6%-6.6%-4.7%
Q2 2021+4.1%+1.4%+0.3%
Q1 2021-5.3%-4.8%-8.7%
Q4 2020+0.1%-4.2%-0.3%
Q3 2020+5.6%-0.2%+5.1%
Q2 2020+0.9%+0.7%-5.6%
Q1 2020+7.9%+3.9%+19.4%
Q4 2019-4.6%-10.3%-28.8%
Q3 2019+19.6%+21.0%+25.9%
Q2 2019+0.2%-1.0%-5.4%
Q1 2019-2.7%-2.6%+1.9%
Q4 2018+3.2%+2.8%+10.4%
Q3 2018-1.0%-4.1%-8.2%
Q2 2018-1.9%+2.8%+5.3%
Q1 2017-1.9%-5.1%-2.9%
Q1 2018-1.6%-4.2%-2.9%
Q4 2015+1.0%+1.7%+9.6%
Q2 2017+1.0%+1.7%+9.6%
Q4 2017-0.1%+3.3%+2.6%
Q4 2016+1.0%-2.4%-5.0%
Q3 2017+1.0%-2.4%-5.0%
Q3 2016
Q2 2016
Q1 2016
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013

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