Cannae Holdings, Inc. (NYSE:CNNE) Q2 2019 Earnings Conference Call - Final Transcript

Aug 08, 2019 • 11:00 am ET


Cannae Holdings, Inc. (NYSE:CNNE) Q2 2019 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the Cannae Holdings Second Quarter 2019 Earnings Conference Call. [Operator Instructions] A question-and-answer session will follow the formal presentation. [Operator Instructions]

It is now my pleasure to introduce your host, Jamie Lillis, Investor Relations for Cannae Holdings. Please go ahead, Jamie.

Jamie Lillis

Thank you, operator, and good morning everyone. We appreciate your participation in our second quarter 2019 earnings conference call. Joining me today are Cannae's President Brent Bickett; and Chief Financial Officer, Rick Cox. As a reminder, a replay of this call will be available through 11:59 P.M. Eastern Time on August 15th, 2019.

Before we begin, I would like to remind you that this conference call may contain forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements about our expectations, hopes, intentions or strategies regarding the future are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by and information currently available to management. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise. The risks and uncertainties, which forward-looking statements are subject to, include, but are not limited to, the risks and other factors detailed in our press release, which was released this morning and in the statement regarding forward-looking information, risk factors and other sections of Cannae's Form S-4 and other filings with the SEC.

Let me now turn the call over to Brent.

Brent B. Bickett

Thank you, Jamie. Our team under Bill Foley's leadership continues to make process, positioning our portfolio for value creation that will ultimately benefit all of Cannae's stakeholders. A meaningful highlight is the progress being made on the execution of our strategy to improve Dun & Bradstreet. When we acquired D&B, our view was that the company had very valuable data and a strong competitive position. It was the company's management, culture and cost structure which were impeding D&B's success. We believe that with the right management team and organizational structure combined with a more streamlined cost structure that we could significantly improve D&B's profitability and return the company to sustainable organic growth. After five months into our turnaround, our team is more confident in our view.

Anthony Jabbour and Steve Daffron have made significant headway on our cost reduction plan having eliminated approximately $153 million of annualized expenses through the second quarter and remain on track to achieving their $200 million annualized expense reduction target by year-end 2019. Thus far, the focus has been on labor inefficiencies, high-cost professional fees and facilities consolidation.

Looking to the second half of 2019, we'll begin the second phase, which is focused on optimizing our IT infrastructure, additional facilities consolidation, process automation, offshoring and efficiency gains to the upgrade or retirement of legacy software platforms. Beyond expense reduction, we have also implemented