CNNE - Earnings call transcript Q4 2017

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen and welcome to the Cannae Holdings Fourth Quarter 2017 Earnings Conference Call.

During today’s presentation, all parties will be in a listen-only mode.

Following the presentation, the conference will be open for questions with instructions to followed at that time.

As a reminder, this conference call is being recorded. I would now like to turn the conference over to Jamie Lillis, Investor Relations for Cannae Holdings. sir. ahead go Please

Jamie Lillis

and fourth everyone. call. quarter operator participation appreciate in our XXXX good you, We morning your Thank earnings conference

me President, Officer, Cannae’s today and Joining Financial Chief Brent Rick Bickett, Cox. are

XX:XX a replay XX, call available on As a PM of Time reminder, Eastern will this be through XXXX. March

about to facts I Statements expectations, number this of are our and you uncertainties. conference including that call strategies Before we future remind statements a begin, may are involve historical not that statements would like or the intentions that contain forward-looking hopes, risks regarding statements. forward-looking

The are and factors based management’s We result based and whether undertake and filings results a statements any of management. are to: Because statements of new projected. yesterday financial risks risk with detailed expectations well not may and to but the sections statement Forward-looking forward-looking to forward-looking subject update statements, in and are not Cannae’s differ are statements which future on results on as by assumptions risks operating actual made those limited such of release available the no SEC. forward-looking other fact, as regarding as from uncertainties are information, and press other S-X dated future factors information, include, events or currently and as to our materially Form information obligation to otherwise. in beliefs, and the statements other

now me Let the to call turn over Brent.

Brent Bickett

our York November XXXX, began pleased split-off meaningful progress under executing and XX, CNNE on strive common Thanks, the on value Ticker to Symbol we Exchange with from results November made shareholders. XXXX. the XX, trading Cannae’s start, have our Jamie. our On To New the stock completed FNF I Stock for as we am strategies we deliver

Cannae significant that pursuing investments that result, in value shareholders establishment are team to is company��s in important history flexibility Cannae create publicly Healthcare Cannae to monetizing platforms, which business, The Tech-Enabled Ceridian in execute T-Systems. of milestone an and long-term are, Services now for Ceridian have growth our our independent and of our with existing comprised sector entities. new a an our as for FNF provides pleased plan. our HCM separate platform, the Group well Restaurant investments a traded legally attractive, as our and company As market to how and continues by sectors potential. Today are Ceridian software emerge HCM we continues its business leader very three is

and time years, position appropriate the it company and several public. to the growth over Given trajectory past Ceridian’s is right market for the go

such, has As sold not with Securities statement expected conditions. process effective. may to the has that registration buy other and statement The offers commence completed a may SEC not IPO its market the which January, review to be SEC the prior to proposed securities in is to the subject nor becomes become the yet time Ceridian Ceridian once in effective. be registration accepted filed

XX of the Tennessee Group, announced statute. by combination the merger was approved Turning Alexander’s. merger third to number not year, quarter requisite last the with independent Restaurants Restaurant we in of proposed the under of J. shareholders our Unfortunately, the

that casual J. dining as it that Northeast substantial for Restaurants cash a XX have in free believe happy concept combination value both we outperforming consistently peers. generates the and we the would are flow, While retain while substantial created Cannae shareholders, to is its Alexander’s market-leading

would signed individual approximate investors certain attention Newport would covenants a in facility with Additionally, all ABRH ABRH’s certain interest facility would our in to response was Ribbon’s and assignment of consolidated agreements. equity and family approximately Having baking. whereby letter dining non-binding an along and transaction as entered market-facing credit on $XXX intent and XX, XX ABRH leave facility would proposed March The agreement Global, restaurant reorganization with bank investment current continue We to has owner credit Cannae with transaction million into combined and Cannae transaction be and simplify interest as as outstanding to XXXX. subject Cannae. balance ABRH O'Charley's of would to remain of purchased and dining respective December balance give in facility, legendary ABRH’s on by the March have perspective, XX% In of legendary ABRH’s to ABRH financial this classified From of a in assigned Newport and an credit such borrowings purchased second Blue and believe return expect proposed Cannae negotiation on reorganization ABRH. reorganization we’ll of compliance largest interest in flexibility concepts, Holdings and group our own pursue to on will a with reorganize attributes. execution XX% sheets. enable this and us in expected and which facility monetization definitive to of O'Charley's the Cannae was this, and XX, XXX% assumed facility family two ABRH shareholders. ABRH’s American XX, the were baking. of more Cannae’s the Holdings in the XX credit focus XX, our that not on XXXX XXXX, our the attractive with a we that Restaurants, initiatives similar a provide ABRH XXXX, ownership X% quarter To equity March XXXX, close to credit investment financial end, for under This to

T-Systems, Our acquisition acquisitions over that software emergency which $X $XXX positioned $X selective We total billion on of billion for with is freestanding addressable urgent the and and third announced take to estimates market documentation addressable growth, the base. acquisition the market and billion add-on cash and in expectation in of closed quarter to with the customer is this XXXX. T-Systems departments product hospital-based complemented software during over to size care October We broaden the share is coding addressable of well documentation solutions coding. its and and outpatient facilities. T-Systems’ clinical medical capabilities with T-Systems market million is third continued addition organic market of approximately a XX, provider for believe T-Systems platform $X of for

forward, to our to in call continue company company. for we in allow portfolio we platform to we seek Looking I’ll and look services strong the areas in more and now grow companies growth business investment turn technology as that review our Rick Cox over additional focus investments us further detail. to sectors our the healthcare, will these

Richard Cox

up generated the over of million, of fourth fourth million, a X.X% in revenue, quarter the the million $XXX.X quarter XXXX. $XX.X XXXX. HCM $X.X Thanks, increase Brent. Ceridian fourth increase from a quarter fourth EBITDA quarter was

quarter fourth and from sequentially third EBITDA by XXX Additionally, quarter margins EBITDA XX% sequentially. the basis grew increased points

$XXX.X procedures, currency customers fourth on the customers cloud quarter XXXX, over Ceridian Ceridian increase a fourth X.X% Dayforce due seen quarter on invest XXX another over Excluding XXXX. quarter continued development X,XXX efficiencies quarter. the of a prior evidenced in has in In has the revenue of suite. live the up of the of more million, of X,XXX joint now strong Ceridian the which $XXX.X processes Dayforce increase a and implementation, quarter, a as generated HCM million, In was fourth went timeliness, to year than platform contributed product also the and platform, at in and increasing quarter. significant total, fourth cloud-based product are by cost to the growth from Ceridian the and constant in increase revenue basis success end quarter approximately as has XX% during implementation EBITDA. venture, LifeWorks cloud-based revenue live in

Ribbon aggregate by fourth Same-store revenue, up of by Village flat fourth by X.X% decreased quarter concepts quarter American led partially with Bakers by EBITDA strong O'Charley's with million which $XXX X.X% execution fourth which strong which continued X.X%. of the by XX sales and million where a fourth same-store EBITDA increased its Restaurants, increased EBITDA in We are business was the million or encouraged XXXX margin X.X% an the compares of offset of sales EBITDA in plan. of margin the by in to X.X%. Ceridian’s X.X%, quarter, Inn, The by trends quarter these the by followed $XX.X and sales Square, of same-store X% $X increased increased XXXX. which generated Blue in were XXXX. approximately

Importantly, while X.X%, XX’s Box sales results same-store O'Charley's outperformed Regional National Index of Black Box the sales outperformed decline Index X.X%. of decline Black same-store sales the same-store

Inn the same-store Village Index of Mid-Scale X.X%. outperformed NPB Square Bakers Family and sales Additionally, growth

drive operational satisfaction While closely increased improvement Blue our trends all the remains intended That with productivity see reduce and American to significant same-store group’s environment across improved are we our working challenging, team customer encouraged sales the Ribbon’s levels management restaurant to operating and with growth. room for important we said, are expenses, enhancements in brands.

talent efforts over balance in optimistic that growth margin assist have and we of improved expansion We sales deliver these additional management also XXXX. to the turnaround and recruited will are

the closed healthcare acquisition quarter. T-System during Turning fourth to our platform, IT we the

with As a two organized T-System segments. reminder, itself into

offers segment, more revenue XXX The drive optimization documentation, and work first staff, which software to completeness solutions sites. is Clinical clinical full floor than Documentation and providing operations

the is than XXX industry T-Sheet more emergency patented their addition, documentation customers. for with In standard department

their help solution revenue second which These an solutions. solution, solutions for compliance to more coding The sites reimbursement productivity outsourced accuracy SaaS as and segment in-house at area well cloud-based Coding cycle workflow XX full-serviced coding. and Software, customers revenue over coding a than improved provides due T-System’s offerings optimize XXX is outsourced as compared customer self-service

generated $X.X margins EBITDA results, and $XX.X up Turning to revenue, quarter million in company the T-System’s of total the EBITDA, XX.X%. fourth million

with that discussed, platform in market $XX.XX tech-enabled developing we attractive opportunities as results As services Cannae’s grew a to XX.X% and acquisition the the full XX.X% to are XXXX. for add-on we year-end billion Brent we book our per are book by conclude, also our at of pipeline are $X.XX a T-System currently we growth great share healthcare grew and for year To to XXXX value be evaluating. pleased expect value

value X, with sold a cash-on-cash return XXXX for X.X and Digital, which $XXX IRR. in with representing Additionally, we times XXXX $XXX for company XX% million We June our shareholders in investment our multiple million One ended cash. we created holding substantial on

now opportunities turn sector as we today. reinvestments. I questions. evaluate Looking seek to the your healthcare to call time investment services take the tech-enabled your will for for attractive opportunities operator we again you back Thank to forward, in continue capital will

Operator

Deleeuw Please Our proceed the Instructions] line Jaffray. question first Piper question. comes your of from [Operator Jason with with

Eric Robinson

there. hi Yes,

Jason You’ve here. for Eric on actually got Robinson

Just wanted spin-off. on to congratulations off sending start my by the successful

Just of nice it off to in same-store here, see was to sales the growth. group, some the restaurant stabilization in start terms

that two you more strategy color O'Charley's? the guys XX little going us a in the believe With ownership reorganization those highlighted a were guys call, here the and XXX% majority on the with just that monetizing them. pending ownership you give you the could for were retain to I in

Brent Bickett

Thanks, is take Eric. Brent. This Right. I’ll that.

– the kind – sectors. As we has five we lot They different different but footprint we out, - also customer-base, finding services of and a it is both a it’s really are O'Charley's. and of little XX I between we there XX concepts, facility four commonality complicated target guess, unique just the northeast, very kind bit casual shared running that, of a found feel in unique Nashville. dining in Obviously, that share four

look and them. for And we run fewer able been having think very them to us going independently and and the effectively But and or So, companies at a to give we at lot concepts, of able very looked restaurant on is good offering, to the for to just be two to and focus be continue road to be the company. the control their more potential flexibility for XXX% Newport, them on assets as will focus interesting own of in their investment. enable public to on does a strategies, the team combine focus able two – whether that sense just sell to them our go us potentially those down get rest makes I own it Bill we having similar think focus something large opportunity for the pursue a to it,

Eric Robinson

And just are little for sense these the the And a guys just, growth and you to strategy then coding the how employing us and you about of for thinking Okay, could market documentation that two give market medical thanks. just, solutions? services? shifting guys That’s then, you overall addressable helpful. T-Systems, gears go more are to

Brent Bickett

outpatient on that’s we side. coding so, side, coding typically do episodic on the the and Sure, usually

So that’s cetera. emergency areas sales freestanding urgent both facilities, for growing on emergency departments, kind those are et departments, And a of basis. care same-store

coding the that We that time. that have deploy the a unique first makes software there more is we accurate –

back and higher ED then provides episode the return and to a coding accurate the reduces you if correctly. forth that more more compliant So often it It’s are the billing. occurs and on it’s

So, be in the to using that differentiator a software, marketplace. kind it’s proven of

What look relationship like we So already complementary oncology areas trusted find other to skill where we they could are their rapidly. think base, to the other a that unique trying is supplement bring we – are organically growth growing anesthesiology, rather set. at coding we have that organic and other is customer areas we have already we could some

again are we other side, that So as all what goes the complement do looking departments, opportunities same we into the we at the have. emergency patient documentation target can software then basically on coding And again the likewise, we facilities. the

cross-sell that could solutions, – other We side particularly to on are looking on more billing the we base. customer the that again into find

growth, complementary think of we plus again what acquisitions. a So, organic be combination would it’s

can we we’ve we think customers We very capabilities products could addressable kind coding it’s a market. have time. billion side. the what side, the over and $X to, on grown We product expand our software that in acquisitions we other on $X similar bring market addressable that to of new cross-sell billion that So script that about billion, the $X think companies can about is done

So, we what is T-Systems. are again, we we a that plethora have are opportunities these of through. excited add-on shifting at about There

just take and it. see And stay we’ll so, where tuned we we’ll

Eric Robinson

call forward, talked helpful. Gotcha. about as XX%. think on maybe we about was here It looks XX% on high seasonality around was we some then, integration Thank the like, fourth Or margin like T-Systems EBITDA the That’s came there we it there last any with XX% T-Systems expenses it the quarter. take approaching And going really should a in range in think and modeling were Is just again type incurred? considerations into you. that considerations? I

Richard Cox

of we’ve there we were the they few October in to that services a some to. There we our sell a was, their sell The are DoD software we and miss moratorium have – literally software out a variety as basis others. one-time on things. also rolling license put a They hospitals out

those. XXX% So to were implement had deals. weren’t deals. able – contracts, to we even And we we the been hand, would margin they kind signed able But, weren’t type those one-time other though on have of

of should of the it. a be do – But consistent we on really the So that’s margins north business XX% basis.

Eric Robinson

Got it.

then, you about of a And there commentary services that in that Is release in assets maybe I are else is I pipeline. a is acquisition Okay, anything press complementary potentially services see what’s and looking cool. you at, and pipeline? kind to making the T-Systems growing really acquisition then IT that just imagine healthcare business did that guys’ lot still sector. in the up of the guys or side

Richard Cox

are are on focused there. further they other deals are and tangentially, looking – we off. now, platforms, but Right T-Systems add-on we We at

Eric Robinson

Good.

you Okay. I’ll That’s the queue. back it Thank for in me. hop guys.

Richard Cox

Eric. Thanks,

Operator

back I’d like the questions other closing in for to over queue. hand comments. management There are to no the call

Jamie Lillis

the to look drive Thank to We continue value try time for to you. shareholders. appreciate and your forward

Operator

does Ladies this you and your for conclude participation. Thank teleconference. gentlemen, today’s

disconnect wonderful lines have may You at and your a time this day.

Cannae (CNNE) 16 Mar 182017 Q4 Earnings call transcript