Cannae(CNNE)2025-02-27 21:27Investment Activities - In the year ended December 31, 2024, the company sold 4.0 million shares of Dayforce for gross proceeds of 14.3 million in cash dividends from Dun & Bradstreet in 2024, with quarterly dividends declared at 0.05 per share[199]. - As of December 31, 2024, the company owned 69.0 million shares of Dun & Bradstreet, representing approximately 15.6% of its outstanding common stock[200]. - The company purchased 1.6 million shares of Paysafe for 23.4 million in January 2024 and sold 0.9 million shares for 89.0 million on December 3, 2024[203]. - The company invested approximately 36.8 million in Black Knight Football, holding a 47.2% ownership interest as of December 31, 2024[208]. - The company conducted a tender offer to purchase up to 22.95 per share for a total cost of 50 million into JANA funds and issued 1.85 million shares of common stock for a 19.99% equity interest in JANA, valued at 264.0 million, exiting its investment in Dayforce as of December 31, 2024[343]. Financial Performance - Total operating revenues for the year ended December 31, 2024, were 117.5 million, or 20.6%, compared to 116.4 million, or 21.7%, in 2024, primarily due to the closure of 99 Restaurants and O'Charley's stores and a decline in comparable store sales[247]. - The company's net loss attributable to common shareholders was 8.8 million compared to 2023[245]. - Total operating expenses for the year ended December 31, 2024, were 688.9 million in 2023[235]. - The company recorded an operating loss of 118.9 million in 2023[235]. - The effective tax rate for the year ended December 31, 2024, was 0.2%, significantly lower than 37.2% in 2023, primarily due to a valuation allowance of 310.1 million, compared to a net loss of 429.6 million in 2022[335]. - Restaurant revenue declined to 536.0 million in 2023[324]. - Operating loss for 2024 was 118.9 million in 2023, showing an improvement of 11.3%[324]. - Net loss attributable to Cannae Holdings, Inc. common shareholders was 313.4 million in 2023[324]. Tax and Deferred Assets - As of December 31, 2024, the company had a net deferred tax asset of 47.7 million recorded for federal net operating loss carryforwards[226]. - The company will continue to monitor the recoverability of deferred tax assets on a quarterly basis, indicating potential future adjustments[227]. - The company expects to realize other deferred tax assets based on sufficient taxable income and available excess capital gains from prior years[227]. - The company recognizes deferred tax assets and liabilities based on enacted tax rates expected to apply to taxable income in future years[383]. - The company accounts for uncertain tax positions only after determining a more likely than not probability that they will withstand challenge from taxing authorities[384]. Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2024, totaled 113.2 million held by the corporate holding company[267]. - Operating cash flows for the year ended December 31, 2024, were 2.3 million from 2023, primarily due to lower tax payments and cash expenses[271]. - Investing cash flows provided by investing activities increased to 245.2 million from 2023, mainly due to proceeds from sales of Dayforce, D&B, and Alight[272]. - Financing cash flows used in financing activities rose to 76.1 million from 2023, attributed to the Tender Offer and dividends paid[274]. - The company expects its cash requirements over the next 12 months to be satisfied by cash equivalents, short-term investments, and capacity under credit agreements[269]. - The company actively manages the impact of rising interest rates on both idle cash and outstanding debt to ensure liquidity[268]. Equity and Shareholder Information - The company held 11.2 million increase or decrease in fair value from a 20% market price fluctuation[282][283]. - The balance of retained earnings decreased to 901.3 million in 2023[335]. - The total equity at the end of 2024 was 2,309.2 million at the end of 2023[335]. - Weighted average shares outstanding on a basic basis decreased to 64.4 million in 2024 from 73.4 million in 2023[324]. - The company repurchased treasury stock totaling 113.2 million in 2023[335]. Impairments and Losses - The company recorded an impairment of 280.1 million as of December 31, 2024, compared to a book value of 374.0 million, indicating a potential impairment[306]. - The equity losses from Dun & Bradstreet for the years ended December 31, 2024, 2023, and 2022 were 13.7 million, 8.8 million respectively[302]. - The equity losses from Alight for the years ended December 31, 2024, 2023, and 2022 were 35.1 million, and 1.0 million, 1.3 million, respectively, primarily related to closed O'Charley's stores[381]. Audit and Compliance - The Company expressed an unqualified opinion on its internal control over financial reporting as of December 31, 2024[301]. - The financial statements of Cannae Holdings were audited in accordance with PCAOB standards, ensuring reasonable assurance against material misstatement[304]. - The Company has been audited by Deloitte & Touche LLP since 2017, indicating a long-term relationship with the auditing firm[309]. - The financial statements present fairly the financial position of Cannae Holdings as of December 31, 2024, in conformity with U.S. GAAP[312]. Operational Changes and Strategies - The company closed 77 O'Charley's stores in 2023 as part of a strategy to renegotiate or terminate leases with unfavorable cash flow profiles[234]. - Cannae Holdings plans to focus on improving operational efficiency and exploring strategic partnerships for future growth[324]. - The management fee under the Third Amended Management Services Agreement will be reduced to a fixed amount of $7.6 million annually starting July 2, 2024[277].