Cannae Holdings, Inc. (NYSE:CNNE) Q4 2019 Earnings Conference Call - Final Transcript

Feb 21, 2020 • 12:00 pm ET


Cannae Holdings, Inc. (NYSE:CNNE) Q4 2019 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to the Cannae Holdings Fourth Quarter and Full Year 2019 Earnings Conference Call. [Operator Instructions]

I would now like to turn the call over to Jamie Lillis Investor Relations for Cannae Holdings. Please go ahead, sir.

Jamie Lillis

Thank you, operator, and good morning, everyone. We appreciate your participation in our fourth quarter and full year 2019 earnings conference call. Joining me today are Cannae's Chairman, Bill Foley; Chief Executive Officer, Rick Massey; and Chief Financial Officer, Rick Cox. As a reminder, a replay of this call will be available through 11:59 PM Eastern Time on February 28, 2020.

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 results 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 Bill.

William P. Foley II

Thank you, Jamie. Cannae continues to successfully execute on a strategy of monetizing legacy investments, nurturing our portfolio companies' growth, making new investments and prospecting for future investment opportunities.

Dun and Bradstreet, or D&B, has made remarkable progress in improving its operations in a very short period of time. To achieve this success, our team quickly realigned the business units to increase focus and accountability. As part of this realignment, 18 of 19 senior executives were replaced. A second priority was to accelerate organic sales growth. To achieve this, we reorganized our sales team and restructured D&B's sales compensation plans. The sales organization now systematically tracks and monitors service metrics and key service performance indicators to more effectively assist clients, improve customer satisfaction and produce new sales and cross sales.

The third priority was to reduce D&B's cost structure and increase operating margins with the goal of removing $200 million of annualized expenses in the first year. I am thrilled to report that our team achieved $208 million of cost saves in 2019, and I see opportunities to achieve even more efficiencies in 2020. Improving the quality and scope of data and buying or building advanced analytics were the other key initiatives that D&B management team has made great progress towards.

D&B's success in achieving these initiatives is evidenced in its fourth