Cannae Holdings, Inc. Q1 FY2025 earnings call

• Welcomed Bill Foley as Vice Chairman and Doug Ammerman as Chairman, thanked Bill for mentorship. • Committed to strategic plan: rebalance portfolio, return capital to shareholders, improve portfolio company performance. • Dun & Bradstreet sold to Clearlake Capital, Cannae to receive $632 million, with at least $460 million for share repurchases, dividends, debt repayment. • Expanded strategic relationship with JANA Partners, acquiring 30% stake for $67.5 million. • D&B Q1 2025 revenue $580 million, 3.6% constant currency organic growth, adjusted EBITDA $211 million. • Alight Q1 2025 total revenue from continuing operations $548 million, adjusted EBITDA $118 million, affirmed 2025 guidance. • Black Knight Football raised capital, AFC Bournemouth made infrastructure progress, FC Lorient promoted, Hibernian FC in European contention, BKFC affiliated with Orlando City SC.

Cannae's first quarter total operating revenue was $103 million, 7% lower than the prior year due to lower restaurant revenue. There were 5 fewer stores (3% decrease). The Ninety Nine Restaurant brand had a 0.3% same-store sales drop, outperforming the Baird Casual Dining Index in 16 of the last 4-week periods. Aggregate operating expenses were $125 million, $27 million below the prior year. Net recognized gains were $7 million in Q1 2025 vs. $5 million in the prior year. Dun & Bradstreet is no longer in equity method investments; equity in earnings and losses of unconsolidated affiliates was a $2 million net loss in Q1 2025 vs. $18 million gain prior year. Black Knight Football club raised ~$133 million in Q1, with Cannae contributing $50 million (half funded). AFC Bournemouth opened new performance center, acquired Vitality Stadium, set Premier League point record, and was in Sportico's 50 most valuable soccer clubs list. FC Lorient promoted to Ligue 1, Hibernian FC third in Scottish Premier League with European competition entry, and BKFC affiliated with Orlando City SC.

• D&B transaction expected to close in Q3 2025, with at least $460 million of proceeds for share repurchases, dividends, debt repayment. • Alight affirmed 2025 full-year guidance with midpoint revenue $2.36 billion and adjusted EBITDA $633 million. • Black Knight Football club raised ~$133 million in Q1, with Cannae contributing $50 million (half funded).

• Forward-looking statements involve risks and uncertainties detailed in quarterly shareholder letter and SEC filings. Actual results may differ materially from projections.

Q: Congrats, Ryan, on your new role. Just one on the JANA Partners. Now that there's a plan to be a 50% owner, could you talk a little bit more about the revenue and earnings profile of the business and perhaps also as well, just remind us again the assets under management of the business.

A: Ken, this is Ryan. First off, thank you. I'm just trying to think what -- I think at a high level, I don't want to get into kind of revenue and earnings figures. But I think at a high level, the business has significantly higher AUM than we originally invested. It's north of $2 billion and it's been performing very well from a financial profile. So we are very excited about the investment. I think when we look at the deal value, we think it's at an attractive price and we're really optimistic around what we can do with JANA going forward. And I think it shows kind of how we're trying to -- that we will try and prioritize new investments with them that we think could be very impactful with Cannae in addition to our investment in their business which we think is also -- will be very positive for the company.

Q: So I just wanted to delve a little bit into the Vitality Stadium acquisition. Help us understand the opportunity there, some of the economics there and what's kind of going on?

A: Of course. The deal hasn't closed yet. So I want to be sensitive around some of the specific financial metrics. But at a high level, we think that it's a very attractive -- the stadium investment and redevelopment is an incredibly attractive proposition for the team. First off, as we talked about on the last call, we've been looking at whether we do a new stadium or whether we do a redevelopment. And as we looked at the financial analysis, we believe that it was much more compelling from a financial perspective to do a redevelopment. Look at the fans have been in the stadium since 1910, so there's an identity with the stadium but we're also able to significantly improve the brand, the look of the stadium, the feel and get a lot more fans in there. But we think that just looking at the return on assets will be -- from the total investment, the EBITDA they could generate and through both phases, as I mentioned in my prepared remarks, there'll be a Phase 1 and Phase 2. But it will be kind of a mid-teens type return without thinking of any financing or other ways. So it's -- we think it's both a great opportunity for the Club, the brand and we think it's attractive financially as well.