Cannae Holdings, Inc. (CNNE) Misses Q1 EPS by 26c, Revenues Miss

Cannae Holdings, Inc. (NYSE: CNNE) reported Q1 EPS of ($0.21), $0.26 worse than the analyst estimate of $0.05. Revenue for the quarter came in at $226.3 million versus the consensus estimate of $243.2 million.

Highlights

• On January 30, 2020, Dun & Bradstreet (“D&B”) repriced its $2.53 billion term loan B facility reducing its interest rate by 100 basis points with a further 25 basis point reduction upon completion of a public offering
• On February 19, 2020, Cannae sold 3.9 million common shares of Ceridian HCM Holdings Inc. (“Ceridian”) and received gross proceeds of $283.7 million and recorded a gain of $223.1 million
• On March 19, 2020 Cannae completed the previously announced investment in AmeriLife Group, LLC with THL Partners. Cannae funded $125.0 million in equity for a 20% interest
• As of March 31, 2020, holding company cash totaled $398.7 million, providing ample capacity for future transactions
• Total book value of portfolio company investments was $2.2 billion, or $27.57 per share, as of March 31, 2020 compared to total book value of $1.5 billion, or $18.72 per share, at December 31, 2019

“The D&B team continues to make good progress on their strategic initiatives, and is currently focusing on accelerating organic revenue growth and driving meaningful margin expansion. D&B delivered organic revenue growth of 3.0% and improved adjusted EBITDA margins by 440 basis points to 36.6%, as compared to the first quarter of 2019. Additionally, the team successfully completed a $200 million cost reduction plan at year end 2019 and have identified $50 million of additional cost savings to be taken out over the balance of 2020,” commented Chairman William P. Foley, II.

“During the COVID-19 pandemic, our first priority is the health and safety of our employees and customers across all of our portfolio companies.” Mr. Foley concluded, “Our strong balance sheet with approximately $400 million in cash and no debt enables Cannae to continue to nurture our portfolio companies while also maintaining ample capital to deploy on investments. We believe opportunities to invest in good companies at attractive values will present themselves.”

For earnings history and earnings-related data on Cannae Holdings, Inc. (CNNE) click here.

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