(State or Other Jurisdiction of Incorporation or Organization) | (IRS Employer Identification Number) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||
Item 2.02. | Results of Operations and Financial Condition |
Item 9.01. | Financial Statements and Exhibits |
Exhibit | Description | ||||
99.1 | |||||
104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. |
Cannae Holdings, Inc. | |||||
Date: | February 21, 2020 | By: | /s/ Richard L. Cox | ||
Name: | Richard L. Cox | ||||
Title: | Chief Financial Officer |
• | On November 14, 2019, Cannae received net proceeds of $265.4 million and recorded a gain of $188.8 million upon the closing of its sale of 5,000,000 shares of common stock of Ceridian HCM Holding Inc. (“Ceridian”) as part of an underwritten secondary public offering. For all of 2019, Cannae sold a total of 9,000,000 shares of Ceridian common stock for aggregate proceeds of $477.9 million resulting in book gains of $342.1 million. |
• | On December 6, 2019, Cannae completed a public offering of 7,475,000 primary shares of its common stock and received net proceeds of $236.0 million. |
• | On December 24, 2019, Cannae entered into an equity commitment with an investor group led by Thomas H. Lee partners, L.P., pursuant to which the group will acquire AmeriLife Group, LLC and Cannae will fund up to $125.0 million in equity. The transaction is expected to close in the first or second quarter of 2020. |
• | On December 31, 2019, we contributed our T-System business into a health care joint venture with an affiliate of The Carlyle Group. The joint venture includes T-System and two complimentary medical coding businesses purchased at closing with contributions from the other partners in the venture. At closing, Cannae received $75.4 million in cash and a 23% equity interest in the joint venture. |
• | As of December 31, 2019, holding company cash totaled $465.2 million, which together with the proceeds from our recent sale of Ceridian shares, provides ample capacity for future transactions. |
• | On January 30, 2020, Dun & Bradstreet (“D&B”) announced an amendment to its credit agreement that reduced the interest rate applicable to its $2,530 million term loan B facility by 100 basis points with a further 25 basis point step down upon completion of a public offering. |
• | On February 21, 2020, Cannae expects to close on the sale of an additional 3.9 million shares of Ceridian common stock for gross proceeds of $283.7 million. |
• | For the quarter ended December 31, 2019, D&B generated total GAAP revenue of $432.7 million, a decrease of 3.2% compared to total GAAP revenue of $446.8 million in the fourth quarter of 2018. 2019 GAAP revenue includes a reduction of revenue recognized due to deferred revenue purchase accounting adjustments associated with D&B's acquisition in February 2019 |
• | D&B's 2019 fourth quarter Adjusted Revenue, a non-GAAP measure, was $475.2 million, an increase of 6.0% compared Adjusted Revenue of $448.2 million for the 2018 fourth quarter |
• | For the quarter ended December 31, 2019, D&B generated total GAAP net loss of $263.4 million a decrease of 439.8% compared to net earnings of $77.5 million in the 2018 fourth quarter |
• | D&B's 2019 fourth quarter Adjusted EBITDA, a non-GAAP measure, was $197.5 million an increase of 18.1% compared to Adjusted EBITDA of $167.2 million for the fourth quarter of 2018 |
• | Adjusted EBITDA margin in the fourth quarter was 41.8% compared to 37.4% in the prior year fourth quarter |
• | D&B management has successfully achieved approximately $208.0 million of annualized cost savings year to date through December 31, 2019, as part of D&B's $200.0 million cost reduction plan |
• | Ceridian's fourth quarter 2019 total revenue was $221.8 million, up 13.9% year-over-year, and, on a constant currency basis, total revenue was $223.0 million, up 12.1% year-over-year. |
• | Dayforce revenue of $158.7 million, was up 35.4% year-over-year, and up 35.7% on a constant currency basis. Excluding float revenue, Dayforce revenue of $147.7 million, up 37.5% year-over-year, and up 38.0% on a constant currency basis. |
• | Dayforce recurring revenue of $114.3 million, up 30.2% year-over-year, and up 30.3% on a constant currency basis. |
• | Adjusted EBITDA, a non-GAAP measure, of $44.4 million, up 6.2% year-over-year. |
• | $271.3 million in total revenue and a pretax loss of $48.0 million for the fourth quarter, versus $298.5 million in total revenue and a pretax loss of $59.9 million in the fourth quarter of 2018 |
• | EBITDA of $(36.2) million for the fourth quarter, versus EBITDA of $(43.8) million in the fourth quarter of 2018 |
• | Adjusted EBITDA of $7.1 million for the fourth quarter, versus Adjusted EBITDA of $(12.1) million in the fourth quarter of 2018 |
• | In January 2020 we began a restructuring of American Blue Ribbons Holdings LLC (“Blue Ribbon”), which includes the Village Inn, Bakers Square and Legendary Baking concepts, and filed for voluntary petitions for relief under chapter 11 of the United States Bankruptcy Code (the “Blue Ribbon Reorganization”). In conjunction with the Blue Ribbon Reorganization, we closed 33 stores with historical operating losses. |
• | The restructuring has no impact on O’Charley’s LLC and 99 Restaurants LLC. |
Consolidated | Restaurant Group | Corporate and Other | ||||||||||
Three Months Ended | ||||||||||||
December 31, 2019 | ||||||||||||
Restaurant revenue | $ | 271.3 | $ | 271.3 | $ | — | ||||||
Other operating revenue | 7.2 | — | 7.2 | |||||||||
Total operating revenue | 278.5 | 271.3 | 7.2 | |||||||||
Cost of restaurant revenue | 234.1 | 234.1 | — | |||||||||
Personnel costs | 28.2 | 12.4 | 15.8 | |||||||||
Depreciation and amortization | 10.9 | 10.4 | 0.5 | |||||||||
Other operating expenses | 58.5 | 49.9 | 8.6 | |||||||||
Goodwill impairment | 10.4 | 10.4 | — | |||||||||
Total operating expenses | 342.1 | 317.2 | 24.9 | |||||||||
Operating loss | $ | (63.6 | ) | $ | (45.9 | ) | $ | (17.7 | ) | |||
Interest and investment income | $ | 1.9 | $ | — | $ | 1.9 | ||||||
Interest expense | (3.4 | ) | (1.4 | ) | (2.0 | ) | ||||||
Realized gains and losses | 188.1 | (0.7 | ) | 188.8 | ||||||||
Total other income (expense) | 186.6 | (2.1 | ) | 188.7 | ||||||||
Earnings (loss) before tax | $ | 123.0 | $ | (48.0 | ) | $ | 171.0 | |||||
Income tax expense | $ | 8.0 | $ | 0.4 | $ | 7.6 | ||||||
Earnings from equity investees | (64.3 | ) | — | (64.3 | ) | |||||||
Non-controlling interests | (18.3 | ) | (17.2 | ) | (1.1 | ) | ||||||
Net earnings (loss) attributable to Cannae common shareholders | $ | 24.5 | $ | (31.2 | ) | $ | 55.7 | |||||
Per share amounts: | ||||||||||||
EPS from continuing operations - basic | $ | 0.92 | ||||||||||
EPS from discontinued operations - basic | $ | (0.59 | ) | |||||||||
EPS attributable to Cannae common shareholders - basic | $ | 0.33 | ||||||||||
EPS from continuing operations - diluted | $ | 0.91 | ||||||||||
EPS from discontinued operations - diluted | $ | (0.58 | ) | |||||||||
EPS attributable to Cannae common shareholders - diluted | $ | 0.33 | ||||||||||
Cannae weighted average shares - basic | 73.7 | |||||||||||
Cannae weighted average shares - diluted | 74.0 | |||||||||||
EBITDA reconciliation: | ||||||||||||
Earnings (loss) before tax | $ | 123.0 | $ | (48.0 | ) | $ | 171.0 | |||||
Interest expense | $ | (3.4 | ) | $ | (1.4 | ) | $ | (2.0 | ) | |||
Depreciation and amortization | 10.9 | 10.4 | 0.5 | |||||||||
EBITDA | $ | 137.3 | $ | (36.2 | ) | $ | 173.5 | |||||
EBITDA margin | 49.3 | % | (13.3 | )% | 2,409.7 | % | ||||||
Adjusted EBITDA reconciliation: | ||||||||||||
EBITDA | $ | 137.3 | $ | (36.2 | ) | $ | 173.5 | |||||
Non-cash asset impairment charges | 43.3 | 43.3 | — | |||||||||
Adjusted EBITDA | $ | 180.6 | $ | 7.1 | $ | 173.5 |
Consolidated | Restaurant Group | Corporate and Other | ||||||||||
Three Months Ended | ||||||||||||
December 31, 2018 | ||||||||||||
Restaurant revenue | $ | 298.5 | $ | 298.5 | $ | — | ||||||
Other operating revenue | 5.1 | — | 5.1 | |||||||||
Total operating revenue | 303.6 | 298.5 | 5.1 | |||||||||
Cost of restaurant revenue | 265.9 | 265.9 | — | |||||||||
Personnel costs | 17.6 | 12.0 | 5.6 | |||||||||
Depreciation and amortization | 12.3 | 11.7 | 0.6 | |||||||||
Other operating expenses | 28.3 | 36.6 | (8.3 | ) | ||||||||
Goodwill impairment | 26.7 | 26.7 | — | |||||||||
Total operating expenses | 350.8 | 352.9 | (2.1 | ) | ||||||||
Operating (loss) income | $ | (47.2 | ) | $ | (54.4 | ) | $ | 7.2 | ||||
Interest and investment income | $ | 1.8 | $ | — | $ | 1.8 | ||||||
Interest (expense) income | (1.1 | ) | (4.4 | ) | 3.3 | |||||||
Realized gains and losses | 89.0 | (1.1 | ) | 90.1 | ||||||||
Total other income (expense) | 89.7 | (5.5 | ) | 95.2 | ||||||||
Earnings (loss) before tax | $ | 42.5 | $ | (59.9 | ) | $ | 102.4 | |||||
Income tax expense | $ | 16.0 | $ | 0.6 | $ | 15.4 | ||||||
Earnings from equity investees | 0.8 | — | 0.8 | |||||||||
Earnings from discontinued operations, net of tax | (2.1 | ) | — | (2.1 | ) | |||||||
Non-controlling interests | (21.8 | ) | (21.7 | ) | (0.1 | ) | ||||||
Net earnings (loss) attributable to Cannae common shareholders | $ | 47.0 | $ | (38.8 | ) | $ | 85.8 | |||||
Per share amounts: | ||||||||||||
EPS from continuing operations - basic | $ | 0.69 | ||||||||||
EPS from discontinued operations - basic | $ | (0.03 | ) | |||||||||
EPS attributable to Cannae common shareholders - basic | $ | 0.66 | ||||||||||
EPS from continuing operations - diluted | $ | 0.69 | ||||||||||
EPS from discontinued operations - diluted | $ | (0.03 | ) | |||||||||
EPS attributable to Cannae common shareholders - diluted | $ | 0.66 | ||||||||||
Cannae weighted average shares - basic | 71.6 | |||||||||||
Cannae weighted average shares - diluted | 71.7 | |||||||||||
EBITDA reconciliation: | ||||||||||||
Earnings (loss) before tax | $ | 42.5 | $ | (59.9 | ) | $ | 102.4 | |||||
Interest expense | $ | (1.1 | ) | $ | (4.4 | ) | $ | 3.3 | ||||
Depreciation and amortization | 12.3 | 11.7 | 0.6 | |||||||||
EBITDA | $ | 55.9 | $ | (43.8 | ) | $ | 99.7 | |||||
EBITDA margin | 18.4 | % | (14.7 | )% | 1,954.9 | % | ||||||
Adjusted EBITDA reconciliation: | ||||||||||||
EBITDA | $ | 55.9 | $ | (43.8 | ) | $ | 99.7 | |||||
Non-cash asset impairment charges | 31.7 | 31.7 | — | |||||||||
Adjusted EBITDA | $ | 87.6 | $ | (12.1 | ) | $ | 99.7 |
Consolidated | Restaurant Group | Corporate and Other | ||||||||||
Twelve Months Ended | ||||||||||||
December 31, 2019 | ||||||||||||
Restaurant revenue | $ | 1,043.3 | $ | 1,043.3 | $ | — | ||||||
Other operating revenue | 26.7 | — | 26.7 | |||||||||
Total operating revenue | 1,070.0 | 1,043.3 | 26.7 | |||||||||
Cost of restaurant revenue | 912.8 | 912.8 | — | |||||||||
Personnel costs | 90.3 | 52.1 | 38.2 | |||||||||
Depreciation and amortization | 40.7 | 38.5 | 2.2 | |||||||||
Other operating expenses | 133.4 | 108.9 | 24.5 | |||||||||
Goodwill impairment | 10.4 | 10.4 | — | |||||||||
Total operating expenses | 1,187.6 | 1,122.7 | 64.9 | |||||||||
Operating loss | $ | (117.6 | ) | $ | (79.4 | ) | $ | (38.2 | ) | |||
Interest and investment income | $ | 15.6 | $ | — | $ | 15.6 | ||||||
Interest expense | (17.8 | ) | (5.4 | ) | (12.4 | ) | ||||||
Realized gains and losses | 357.7 | 3.9 | 353.8 | |||||||||
Total other income (expense) | 355.5 | (1.5 | ) | 357.0 | ||||||||
Earnings (loss) before tax | $ | 237.9 | $ | (80.9 | ) | $ | 318.8 | |||||
Income tax expense (benefit) | $ | 24.2 | $ | 0.3 | $ | 23.9 | ||||||
(Loss) earnings from equity investees | (115.1 | ) | — | (115.1 | ) | |||||||
Loss from discontinued operations, net of tax | (51.8 | ) | — | (51.8 | ) | |||||||
Non-controlling interests | (30.5 | ) | (29.5 | ) | (1.0 | ) | ||||||
Net earnings (loss) attributable to Cannae common shareholders | $ | 77.3 | $ | (51.7 | ) | $ | 129.0 | |||||
Per share amounts: | ||||||||||||
EPS from continuing operations - basic | $ | 1.77 | ||||||||||
EPS from discontinued operations - basic | $ | (0.70 | ) | |||||||||
EPS attributable to Cannae common shareholders - basic | $ | 1.07 | ||||||||||
EPS from continuing operations - diluted | $ | 1.76 | ||||||||||
EPS from discontinued operations - diluted | $ | (0.69 | ) | |||||||||
EPS attributable to Cannae common shareholders - diluted | $ | 1.07 | ||||||||||
Cannae weighted average shares - basic | 72.2 | |||||||||||
Cannae weighted average shares - diluted | 72.4 | |||||||||||
EBITDA reconciliation: | ||||||||||||
Earnings (loss) before tax | $ | 237.9 | $ | (80.9 | ) | $ | 318.8 | |||||
Interest income | $ | (17.8 | ) | $ | (5.4 | ) | $ | (12.4 | ) | |||
Depreciation and amortization | 40.7 | 38.5 | 2.2 | |||||||||
EBITDA | $ | 296.4 | $ | (37.0 | ) | $ | 333.4 | |||||
EBITDA margin | 27.7 | % | (3.5 | )% | 1,248.7 | % | ||||||
Adjusted EBITDA reconciliation: | ||||||||||||
EBITDA | $ | 296.4 | $ | (37.0 | ) | $ | 333.4 | |||||
Non-cash asset impairment charges | 52.0 | 52.0 | — | |||||||||
Adjusted EBITDA | $ | 348.4 | $ | 15.0 | $ | 333.4 |
Consolidated | Restaurant Group | Corporate and Other | ||||||||||
Twelve Months Ended | ||||||||||||
December 31, 2018 | ||||||||||||
Restaurant revenue | $ | 1,117.8 | $ | 1,117.8 | $ | — | ||||||
Other operating revenue | 29.7 | — | 29.7 | |||||||||
Total operating revenue | 1,147.5 | 1,117.8 | 29.7 | |||||||||
Cost of restaurant revenue | 991.3 | 991.3 | — | |||||||||
Personnel costs | 137.2 | 47.3 | 89.9 | |||||||||
Depreciation and amortization | 46.3 | 44.9 | 1.4 | |||||||||
Other operating expenses | 91.8 | 86.3 | 5.5 | |||||||||
Goodwill impairment | 26.7 | 26.7 | — | |||||||||
Total operating expenses | 1,293.3 | 1,196.5 | 96.8 | |||||||||
Operating loss | $ | (145.8 | ) | $ | (78.7 | ) | $ | (67.1 | ) | |||
Interest and investment income | $ | 6.3 | $ | — | $ | 6.3 | ||||||
Interest expense | (4.7 | ) | (16.0 | ) | 11.3 | |||||||
Realized gains and losses | 166.8 | (2.1 | ) | 168.9 | ||||||||
Total other income (expense) | 168.4 | (18.1 | ) | 186.5 | ||||||||
Earnings (loss) before tax | $ | 22.6 | $ | (96.8 | ) | $ | 119.4 | |||||
Income tax (benefit) expense | $ | 15.0 | $ | 0.6 | $ | 14.4 | ||||||
(Loss) earnings from equity investees | (16.1 | ) | 0.1 | (16.2 | ) | |||||||
Loss from discontinued operations, net of tax | (2.1 | ) | — | (2.1 | ) | |||||||
Non-controlling interests | (38.2 | ) | (38.3 | ) | 0.1 | |||||||
Net earnings (loss) attributable to Cannae common shareholders | $ | 27.6 | $ | (59.0 | ) | $ | 86.6 | |||||
Per share amounts: | ||||||||||||
EPS from continuing operations - basic | $ | 0.42 | ||||||||||
EPS from discontinued operations - basic | $ | (0.03 | ) | |||||||||
EPS attributable to Cannae common shareholders - basic | $ | 0.39 | ||||||||||
EPS from continuing operations - diluted | $ | 0.42 | ||||||||||
EPS from discontinued operations - diluted | $ | (0.03 | ) | |||||||||
EPS attributable to Cannae common shareholders - diluted | $ | 0.39 | ||||||||||
Cannae weighted average shares - basic | 71.2 | |||||||||||
Cannae weighted average shares - diluted | 71.3 | |||||||||||
EBITDA reconciliation: | ||||||||||||
Earnings (loss) before tax | $ | 22.6 | $ | (96.8 | ) | $ | 119.4 | |||||
Interest expense | $ | (4.7 | ) | $ | (16.0 | ) | $ | 11.3 | ||||
Depreciation and amortization | 46.3 | 44.9 | 1.4 | |||||||||
EBITDA | $ | 73.6 | $ | (35.9 | ) | $ | 109.5 | |||||
EBITDA margin | 6.4 | % | (3.2 | )% | 368.7 | % | ||||||
Adjusted EBITDA reconciliation: | ||||||||||||
EBITDA | $ | 73.6 | $ | (35.9 | ) | $ | 109.5 | |||||
Non-cash asset impairment charges | 38.4 | 38.4 | — | |||||||||
Adjusted EBITDA | $ | 112.0 | $ | 2.5 | $ | 109.5 |
December 31, 2019 | December 31, 2018 | |||||||
in millions | (Unaudited) | (Unaudited) | ||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 533.7 | $ | 315.7 | ||||
Other current assets | 97.2 | 106.2 | ||||||
Current assets of discontinued operations | — | 29.8 | ||||||
Total current assets | $ | 630.9 | $ | 451.7 | ||||
D&B equity investment | 385.9 | — | ||||||
Ceridian equity investment | 309.5 | 359.7 | ||||||
Other equity method investments | 141.1 | 37.5 | ||||||
Lease assets | 192.9 | — | ||||||
Property and equipment, net | 162.6 | 175.5 | ||||||
Software & intangible assets | 63.1 | 92.4 | ||||||
Goodwill | 66.1 | 76.5 | ||||||
Other non-current assets | 140.1 | 89.8 | ||||||
Noncurrent assets of discontinued operations | — | 176.4 | ||||||
Total assets | $ | 2,092.2 | $ | 1,459.5 | ||||
Current liabilities: | ||||||||
A/P & other current liabilities | $ | 191.7 | $ | 145.7 | ||||
Notes payable, current | 7.0 | 5.9 | ||||||
Current liabilities of discontinued operations | — | 8.4 | ||||||
Total current liabilities | $ | 198.7 | $ | 160.0 | ||||
Notes payable, non-current | $ | 120.1 | $ | 42.2 | ||||
Other non-current liabilities | 243.6 | 57.6 | ||||||
Total liabilities | $ | 562.4 | $ | 259.8 | ||||
Additional paid in capital | $ | 1,396.7 | $ | 1,146.2 | ||||
Retained earnings | 143.6 | 45.8 | ||||||
Treasury Stock | (5.9 | ) | (0.2 | ) | ||||
Accumulated other comprehensive loss | (45.9 | ) | (67.2 | ) | ||||
Non-controlling interests | 41.3 | 75.1 | ||||||
Cannae shareholder's equity | $ | 1,529.8 | $ | 1,199.7 | ||||
Total liabilities and equity | $ | 2,092.2 | $ | 1,459.5 |
Adjusted Book Value Summary | December 31, 2019 | December 31, 2018 | |||||||
(Unaudited) | (Unaudited) | ||||||||
Dun & Bradstreet | $ | 415.3 | $ | — | |||||
Ceridian | 306.1 | 365.4 | |||||||
American Blue Ribbon Holdings | 60.2 | 121.4 | |||||||
Ninety Nine | 65.3 | 57.8 | |||||||
T-System | — | 184.3 | |||||||
Coding Solutions | 66.7 | — | |||||||
Holding company cash and short-term investments | 465.2 | 308.2 | |||||||
Other Investments | 184.7 | 87.8 | |||||||
Holding Company Debt | (75.0 | ) | — | ||||||
Cannae Book Value | $ | 1,488.5 | $ | 1,124.9 | |||||
Outstanding Cannae shares | 79.5 | 72.2 | |||||||
Cannae Book Value per Share | $ | 18.72 | $ | 15.58 |
As of December 31, 2019 | ||||
(Unaudited) | ||||
The Dun & Bradstreet Corporation | $ | 526.1 | ||
99 Restaurants Holdings, LLC | 100.0 | |||
Coding Solutions Topco, Inc. | 60.2 | |||
Rock Creek Idaho Holdings, LLC | 38.0 | |||
QOMPLX, Inc. | 30.0 | |||
Colt Holding LLC | 28.1 | |||
Triple Tree Holdings LLC | 15.1 | |||
American Blue Ribbon Holdings, LLC | 11.1 | |||
FNF NV Brasada, LLC | 8.2 | |||
WineDirect, Inc. | 9.0 | |||
Other | 97.5 | |||
Total cost of invested capital | 923.3 |
For the Three Months Ended December 31, 2019 | For the Three Months Ended December 31, 2020 | ||||||
(Dollars in millions) | |||||||
Revenue | $ | 432.7 | $ | 446.8 | |||
Deferred revenue purchase accounting adjustment | 39.6 | — | |||||
Adjusted revenue, after foreign exchange | $ | 472.3 | $ | 446.8 | |||
Impact of foreign exchange fluctuations | 2.9 | 1.4 | |||||
Adjusted revenue, before foreign exchange | $ | 475.2 | $ | 448.2 |
For the Three Months Ended December 31, 2019 | For the Three Months Ended December 31, 2018 | ||||||
(Dollars in millions) | |||||||
Net (loss) earnings | $ | (263.4 | ) | $ | 77.5 | ||
Interest expense, net | 82.5 | 13.2 | |||||
Other expense (income), net | 173.5 | 2.1 | |||||
Income tax (benefit) expense | (32.9 | ) | 42.3 | ||||
Depreciation and amortization | 142.0 | 22.4 | |||||
Equity in net earnings of affiliates | (0.8 | ) | (1.1 | ) | |||
Net earnings attributable to noncontrolling interests | 3.2 | 1.3 | |||||
Dividends allocated to preferred stockholders | 32.0 | — | |||||
EBITDA | 136.1 | 157.7 | |||||
Deferred revenue purchase accounting adjustment | 39.6 | — | |||||
Equity-based compensation | 3.8 | 3.5 | |||||
Merger & acquisition costs | 0.5 | 3.6 | |||||
Restructuring and transition costs | 22.8 | 2.1 | |||||
Nonrecurring charges including asset impairments and legal contingencies | — | 0.3 | |||||
Other reduced expenses due to purchase accounting | (5.3 | ) | — | ||||
Adjusted EBITDA | $ | 197.5 | $ | 167.2 | |||
Adjusted revenue, after foreign exchange (from above) | $ | 472.3 | $ | 446.8 | |||
Adjusted EBITDA margin | 41.8 | % | 37.4 | % |
Three Months Ended December 31, | Growth rate year-over-year | Impacts of changes in foreign currency | Growth rate year-over-year on a constant currency basis | ||||||||||||||
2019 | 2018 | 2019 vs 2018 | 2019 vs 2018 | ||||||||||||||
(Dollar in millions) | |||||||||||||||||
Revenue: | |||||||||||||||||
Dayforce recurring services, excluding float | $ | 103.3 | $ | 78.0 | 32.4 | % | (0.4 | )% | 32.8 | % | |||||||
Dayforce float | 11.0 | 9.8 | 12.2 | % | 1.1 | % | 11.1 | % | |||||||||
Total Dayforce recurring services | 114.3 | 87.8 | 30.2 | % | (0.1 | )% | 30.3 | % | |||||||||
Powerpay recurring services, excluding float | 22.0 | 22.0 | — | % | 1.3 | % | (1.3 | )% | |||||||||
Powerpay float | 3.0 | 3.3 | (9.1 | )% | (6.1 | )% | (3.0 | )% | |||||||||
Total Powerpay recurring services | 25.0 | 25.3 | (1.2 | )% | 0.4 | % | (1.6 | )% | |||||||||
Total Cloud recurring services | 139.3 | 113.1 | 23.2 | % | 0.1 | % | 23.1 | % | |||||||||
Dayforce professional services and other | 44.4 | 29.4 | 51.0 | % | (0.9 | )% | 51.9 | % | |||||||||
Powerpay professional services and other | 0.5 | 0.4 | 25.0 | % | 25.0 | % | — | ||||||||||
Total Cloud professional services and other | 44.9 | 29.8 | 50.7 | % | (0.5 | )% | 51.2 | % | |||||||||
Total Cloud Revenue | 184.2 | 142.9 | 28.9 | % | — | 28.9 | % | ||||||||||
Bureau recurring services, excluding float | 33.8 | 47.1 | (28.2 | )% | 0.3 | % | (28.5 | )% | |||||||||
Bureau float | 3.3 | 4.3 | (23.3 | )% | — | (23.3 | )% | ||||||||||
Total Bureau recurring services | 37.1 | 51.4 | (27.8 | )% | 0.2 | % | (28.0 | )% | |||||||||
Bureau professional services and other | 0.5 | 0.5 | — | — | — | ||||||||||||
Total Bureau revenue | 37.6 | 51.9 | (27.6 | )% | 0.2 | % | (27.8 | )% | |||||||||
Total revenue | $ | 221.8 | $ | 194.8 | 13.9 | % | 0.1 | % | 13.8 | % | |||||||
Dayforce | $ | 158.7 | $ | 117.2 | 35.4 | % | (0.3 | )% | 35.7 | % | |||||||
Powerpay | 25.5 | 25.7 | (0.8 | )% | 0.7 | % | (1.5 | )% | |||||||||
Total Cloud revenue | $ | 184.2 | $ | 142.9 | 28.9 | % | — | 28.9 | % | ||||||||
Dayforce, excluding float | $ | 147.7 | $ | 107.4 | 37.5 | % | (0.5 | )% | 38.0 | % | |||||||
Powerpay, excluding float | 22.5 | 22.4 | 0.4 | % | 1.7 | % | (1.3 | )% | |||||||||
Cloud float | 14.0 | 13.1 | 6.9 | % | (0.7 | )% | 7.6 | % | |||||||||
Total Cloud revenue | $ | 184.2 | $ | 142.9 | 28.9 | % | — | 28.9 | % |
Year Ended December 31, | Growth rate year-over-year | Impacts of changes in foreign currency | Growth rate year-over-year on a constant currency basis | ||||||||||||||
2019 | 2018 | 2019 vs 2018 | 2019 vs 2018 | ||||||||||||||
(Dollar in millions) | |||||||||||||||||
Revenue: | |||||||||||||||||
Dayforce recurring services, excluding float | $ | 377.9 | $ | 288.2 | 31.1 | % | (0.6 | )% | 31.7 | % | |||||||
Dayforce float | 51.1 | 37.5 | 36.3 | % | (0.8 | )% | 37.1 | % | |||||||||
Total Dayforce recurring services | 429.0 | 325.7 | 31.7 | % | (0.6 | )% | 32.3 | % | |||||||||
Powerpay recurring services, excluding float | 76.9 | 78.0 | (1.4 | )% | (2.0 | )% | 0.6 | % | |||||||||
Powerpay float | 12.1 | 12.0 | 0.8 | % | (3.4 | )% | 4.2 | % | |||||||||
Total Powerpay recurring services | 89.0 | 90.0 | (1.1 | )% | (2.2 | )% | 1.1 | % | |||||||||
Total Cloud recurring services | 518.0 | 415.7 | 24.6 | % | (1.0 | )% | 25.6 | % | |||||||||
Dayforce professional services and other | 140.7 | 111.8 | 25.8 | % | (0.9 | )% | 26.7 | % | |||||||||
Powerpay professional services and other | 1.3 | 1.3 | — | — | — | ||||||||||||
Total Cloud professional services and other | 142.0 | 113.1 | 25.6 | % | (0.7 | )% | 26.3 | % | |||||||||
Total Cloud Revenue | 660.0 | 528.8 | 24.8 | % | (0.9 | )% | 25.7 | % | |||||||||
Bureau recurring services, excluding float | 145.1 | 191.8 | (24.3 | )% | (0.4 | )% | (23.9 | )% | |||||||||
Bureau float | 17.0 | 17.5 | (2.9 | )% | (0.6 | )% | (2.3 | )% | |||||||||
Total Bureau recurring services | 162.1 | 209.3 | (22.6 | )% | (0.6 | )% | (22.0 | )% | |||||||||
Bureau professional services and other | 2.0 | 2.6 | (23.1 | )% | — | (23.1 | )% | ||||||||||
Total Bureau revenue | 164.1 | 211.9 | (22.6 | )% | (0.5 | )% | (22.1 | )% | |||||||||
Total revenue | $ | 824.1 | $ | 740.7 | 11.3 | % | (0.8 | )% | 12.1 | % | |||||||
Dayforce | $ | 569.7 | $ | 437.5 | 30.2 | % | (0.7 | )% | 30.9 | % | |||||||
Powerpay | 90.3 | 91.3 | (1.1 | )% | (2.2 | )% | 1.1 | % | |||||||||
Total Cloud revenue | $ | 660.0 | $ | 528.8 | 24.8 | % | (0.9 | )% | 25.7 | % | |||||||
Dayforce, excluding float | $ | 518.6 | $ | 400.0 | 29.7 | % | (0.6 | )% | 30.3 | % | |||||||
Powerpay, excluding float | 78.2 | 79.3 | (1.4 | )% | (2.0 | )% | 0.6 | % | |||||||||
Cloud float | 63.2 | 49.5 | 27.7 | % | (1.4 | )% | 29.1 | % | |||||||||
Total Cloud revenue | $ | 660.0 | $ | 528.8 | 24.8 | % | (0.9 | )% | 25.7 | % |
Three Months Ended December 31, | Increase/(Decrease) | ||||||||||||||
2019 | 2018 | Amount | % | ||||||||||||
(Dollar in millions) | |||||||||||||||
Constant Currency Revenue: | |||||||||||||||
Dayforce recurring services, excluding float | $ | 103.7 | $ | 78.1 | $ | 25.6 | 32.8 | % | |||||||
Dayforce float | 11.0 | 9.9 | 1.1 | 11.1 | % | ||||||||||
Total Dayforce recurring services | 114.7 | 88.0 | 26.7 | 30.3 | % | ||||||||||
Powerpay recurring services, excluding float | 22.2 | 22.5 | (0.3 | ) | (1.3 | )% | |||||||||
Powerpay float | 3.2 | 3.3 | (0.1 | ) | (3.0 | )% | |||||||||
Total Powerpay recurring services | 25.4 | 25.8 | (0.4 | ) | (1.6 | )% | |||||||||
Total Cloud recurring services | 140.1 | 113.8 | 26.3 | 23.1 | % | ||||||||||
Dayforce professional services and other | 44.8 | 29.5 | 15.3 | 51.9 | % | ||||||||||
Powerpay professional services and other | 0.4 | 0.4 | — | — | |||||||||||
Total Cloud professional services and other | 45.2 | 29.9 | 15.3 | 51.2 | % | ||||||||||
Total Cloud Revenue | 185.3 | 143.7 | 41.6 | 28.9 | % | ||||||||||
Bureau recurring services, excluding float | 33.9 | 47.4 | (13.5 | ) | (28.5 | )% | |||||||||
Bureau float | 3.3 | 4.3 | (1.0 | ) | (23.3 | )% | |||||||||
Total Bureau recurring services | 37.2 | 51.7 | (14.5 | ) | (28.0 | )% | |||||||||
Bureau professional services and other | 0.5 | 0.5 | — | — | |||||||||||
Total Bureau revenue | 37.7 | 52.2 | (14.5 | ) | (27.8 | )% | |||||||||
Total constant currency revenue | $ | 223.0 | $ | 195.9 | $ | 27.1 | 13.8 | % | |||||||
Dayforce | $ | 159.5 | $ | 117.5 | $ | 42.0 | 35.7 | % | |||||||
Powerpay | 25.8 | 26.2 | (0.4 | ) | (1.5 | )% | |||||||||
Total constant currency Cloud revenue | $ | 185.3 | $ | 143.7 | $ | 41.6 | 28.9 | % | |||||||
Dayforce, excluding float | $ | 148.5 | $ | 107.6 | $ | 40.9 | 38.0 | % | |||||||
Powerpay, excluding float | 22.6 | 22.9 | (0.3 | ) | (1.3 | )% | |||||||||
Cloud float | 14.2 | 13.2 | 1.0 | 7.6 | % | ||||||||||
Total constant currency Cloud revenue | $ | 185.3 | $ | 143.7 | $ | 41.6 | 28.9 | % |
Three Months Ended December 31, | Increase/(Decrease) | ||||||||||||||
2019 | 2018 | Amount | % | ||||||||||||
(Dollar in millions) | |||||||||||||||
Constant Currency Revenue: | |||||||||||||||
Dayforce recurring services, excluding float | $ | 379.3 | $ | 288.0 | $ | 91.3 | 31.7 | % | |||||||
Dayforce float | 51.4 | 37.5 | 13.9 | 37.1 | % | ||||||||||
Total Dayforce recurring services | 430.7 | 325.5 | 105.2 | 32.3 | % | ||||||||||
Powerpay recurring services, excluding float | 78.4 | 77.9 | 0.5 | 0.6 | % | ||||||||||
Powerpay float | 12.4 | 11.9 | 0.5 | 4.2 | % | ||||||||||
Total Powerpay recurring services | 90.8 | 89.8 | 1.0 | 1.1 | % | ||||||||||
Total Cloud recurring services | 521.5 | 415.3 | 106.2 | 25.6 | % | ||||||||||
Dayforce professional services and other | 141.6 | 111.8 | 29.8 | 26.7 | % | ||||||||||
Powerpay professional services and other | 1.3 | 1.3 | — | — | |||||||||||
Total Cloud professional services and other | 142.9 | 113.1 | 29.8 | 26.3 | % | ||||||||||
Total Cloud Revenue | 664.4 | 528.4 | 136.0 | 25.7 | % | ||||||||||
Bureau recurring services, excluding float | 145.9 | 191.6 | (45.7 | ) | (23.9 | )% | |||||||||
Bureau float | 17.1 | 17.5 | (0.4 | ) | (2.3 | )% | |||||||||
Total Bureau recurring services | 163.0 | 209.1 | (46.1 | ) | (22.0 | )% | |||||||||
Bureau professional services and other | 2.0 | 2.6 | (0.6 | ) | (23.1 | )% | |||||||||
Total Bureau revenue | 165.0 | 211.7 | (46.7 | ) | (22.1 | )% | |||||||||
Total constant currency revenue | $ | 829.4 | $ | 740.1 | $ | 89.3 | 12.1 | % | |||||||
Dayforce | $ | 572.3 | $ | 437.3 | $ | 135.0 | 30.9 | % | |||||||
Powerpay | 92.1 | 91.1 | 1.0 | 1.1 | % | ||||||||||
Total constant currency Cloud revenue | $ | 664.4 | $ | 528.4 | $ | 136.0 | 25.7 | % | |||||||
Dayforce, excluding float | $ | 520.9 | $ | 399.8 | $ | 121.1 | 30.3 | % | |||||||
Powerpay, excluding float | 79.7 | 79.2 | 0.5 | 0.6 | % | ||||||||||
Cloud float | 63.8 | 49.4 | 14.4 | 29.1 | % | ||||||||||
Total constant currency Cloud revenue | $ | 664.4 | $ | 528.4 | $ | 136.0 | 25.7 | % |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(Dollar in millions) | ||||||||||||||||
Operating profit | $ | 19.7 | $ | 20.3 | $ | 72.3 | $ | 56.1 | ||||||||
Depreciation and amortization | 13.2 | 14.2 | 57.1 | 56.6 | ||||||||||||
Other (expense) income, net | (0.9 | ) | (0.5 | ) | (5.6 | ) | 0.2 | |||||||||
EBITDA from continuing operations | 32.0 | 34.0 | 123.8 | 112.9 | ||||||||||||
Sponsorship management fees | — | — | — | 12.0 | ||||||||||||
Intercompany foreign exchange (gain) loss | (0.4 | ) | (0.4 | ) | 0.4 | (2.9 | ) | |||||||||
Share-based compensation | 10.7 | 5.2 | 37.7 | 24.7 | ||||||||||||
Severance charges | 1.8 | 1.3 | 6.2 | 5.4 | ||||||||||||
Restructuring consulting fees | 1.7 | 1.7 | 5.3 | 4.8 | ||||||||||||
Other non-recurring charges | (1.4 | ) | — | 11.2 | — | |||||||||||
Transaction costs | — | — | — | 3.7 | ||||||||||||
Adjusted EBITDA | $ | 44.4 | $ | 41.8 | $ | 184.6 | $ | 160.6 | ||||||||
Adjusted EBITDA margin | 20.0 | % | 21.5 | % | 22.4 | % | 21.7 | % |