Good afternoon, ladies and gentlemen and welcome to the Cannae Holdings, Inc. Third Quarter 2021 Financial Results Conference Call. During today’s presentation all parties will be in a listen-only mode. Following the company’s brief prepared remarks the conference will be open for questions with instructions to follow at that time. As a reminder, this conference call is being recorded and a replay is available through 11:59 p.m. Eastern Time on November 23 2021. With that I would like to turn the call over to Jamie Lillis of Solebury Trout.

Thank you, operator and thank you to all of you joining us today. On the call today, we have our, Chief Executive Officer, Rick Massey; Cannae's President, David Ducommun; and Bryan Coy, the company's Chief Financial Officer. Before we begin, I would like to remind you that this conference call and the Q&A following our remarks may contain forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts including statements about Cannae's 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. The company undertakes 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 quarterly shareholder letter, which was released this afternoon and in our other filings with the SEC. Today's remarks will also include references to non-GAAP financial measures. Additional information including reconciliation between non-GAAP financial information to the GAAP financial information is provided in our shareholder letter. I would now like to turn the call over to Cannae's CEO, Rick Massey, who will open with a few brief remarks and then open the line for questions.

Okay. Thanks, Jamie. Bill is our leader. Bill is momentarily delayed. He's actually off working on – he has excused us because he's working on Cannae business or maybe potential piece of Cannae business. So he may join us he may not during the call. So you've got the backup quarter back today. Before we start, I just want to refer you to our, what we think is a pretty nice document, our third quarter quarterly update. It's on our website. It's got a lot more to tell about our numbers, our portfolio companies, Bill's outlook on the business, recent events and so forth. It's going to cover a lot more detail than we're going to be able to on this call. I always want to start off by acknowledging that Duke and Bryan do a really nice job on that. We're an active manager and results of our active management approach began with this quarter with Dun & Bradstreet's third quarterly results, which were driven by an acceleration in organic revenue growth, which is we believe is a key to improving the company's multiple valuation. We think eventually they're going to get a re-rate as their organic revenue continues to accelerate. In the quarter, they grew revenues 22%. They had adjusted EBITDA growth of 12%, both compared to the third quarter 2020. The best part of the story was that organic revenue growth accelerated to 3.7% in constant currency as compared with about 120 basis points below that in the second quarter. And then that was 33 – sorry, not 120 basis points. The growth is all in execution of Anthony's – Anthony Jabbour strategy, which is a continued growth in international. They got low-digit growth in North America and they got that from what he calls the four…

Thank you. [Operator Instructions] Our first question comes from the line of John Campbell with Stephens. Please proceed with your question.

Hey guys good afternoon.

Hey John.

Rick, you mentioned the backup quarterback comments. I think Brady coming in for Bledsoe several years ago I think that worked out all right. I think we're in good hands.

No, I would say this is more like Bledsoe going in for Romo.

I got you. In the shareholder letter I noticed the cash balance you guys mentioned as of yesterday that was $81 million. I think you ended the quarter, $173 million holding company cash. And then you picked up the $120 million or so of the CDAY shares sold a couple of weeks ago. It looks like a pretty big deployment there. Was that just to pay off the debt? Is that kind of a short-term thing, or is that a new investment maybe you can shed some light on?

John this is Bryan Coy. We entirely paid off the margin loan in October all $200 million of it.

Okay. That math’s scores up. And then outside of the CDAY monetization, you guys did a couple of weeks ago, it looks like you got a couple more coming. You got partial Legendary Baking so and then you got the Triple Tree bill. You guys have been busy. I think you're always busy. but just curious about the expected gross proceeds from those deals and any other ones I might be missing here?

John, this is Bryan. Proceeds we'll get this year on that will be probably less than $50 million all in. We've got some earn-outs that will come in the two or three years ahead and another I think combined with all of the properties in there you mentioned maybe another $5 million to $10 million that will come in January.

Got it. And then a question I think we ask quite often things tend to be fluid. So I think the answer to this might change here and there. You guys probably are going to address this in a couple of weeks in Vegas. But just help me a little bit high level about the investment strategy and just kind of the way you think about it going forward I mean you guys were very heavy in SPACs late last year. And then the latest large investment was back on the private side was Sightline which looks like a really enticing type deal. Is that a shift in strategy, or is it going to kind of -- will it come and go depending on what the market is giving you? Just any kind of high level thoughts there?

We're opportunistic investors, if you go back and look at 2020, I would say in 2019 as we told this we were going to do what 4 SPACs and have two of them deployed and 2 looking -- that would have been a surprise to us. We're not -- we're going to get these 2 that we have open. We're going to get those deployed, but I'm not sure we're going to go back into that realm. Our bread and butter has been and probably will continue to be John making private investments in companies, having more influence on their management taking -- more likely taking stuff that looks more like control positions or at least shared control with management or founders. That's kind of where we cut our teeth and that's where I think, you'll see us heading. And it's not to say, we won't do another SPAC but that gold vein is going to run out eventually.

Yeah. Makes sense to me. I’m going jump back to queue. Thanks, guys.

That’s all you had.

I’ll be back.

Our next question comes from the line of Ian Zaffino with Oppenheimer. Please proceed with your question.

Hi, Great. Thank you very much. As far as the SPAC comment you made there's still a SPAC that hasn't found its target yet, right? What should we expect there as far as the confirmation of a deal or an announcement of a deal on the ASC?

ASC, we've identified and have had discussions with a number of very attractive targets. We have identified a number of others. People are still wanting to talk to Bill and partner with us. And we're going to be patient about it in part because we've got plenty of time. We -- the ASC is not even a year old yet. And we're a little nervous about valuations right now. So we're disciplined investors and so, yes we're not going to let it right and we're not going to get in a hurry and cut corners and not do something that's going to meet Bill standards. So -- but there are plenty of companies out there. Believe it or not, has fished out as the SPAC market might seem there still are companies that we'll only talk to what. When we compete, we're not competing with other SPACs. We're competing with IPOs and M&A. So...

Okay. Great. And then as far as capital the private investments now, you also have a buyback in place. How are we thinking about maybe shareholder returns versus alternative investments out there?

We're in a spot. I kind of -- let me -- I want to answer your question, but I want to twist it just a little bit. We've got -- presently we have two backstops out there. And we are -- we have the resources to satisfy those backstops. And within the next few weeks, we're going to have a much better picture of the extent to which those are going to be called. And that's going to give us a much better picture of, how much available capital that we have for other investments and how much we have for buybacks. But their other investments and buybacks are always going to be on the plate. And we're always going to think about them. And we're always going to think about the return on an alternative investment and the return on buying our own stock back. And I'll say, the return of buying our own stock back even at $36 and change still looks pretty good to me.

All right, guys. Thank you very much. I’ll hop back in the queue.

Thank you, Ian. Thanks for your interest. John I know you had -- you may still be on the phone. I know you had a question around all that. I hope I answered that one too.

[Operator Instructions] Our next question is a follow-up from John Campbell with Stephens. Please proceed with your question.

Told you I would be back.

Yeah well.

One last question for me. I've got kids myself I know it's impossible to name your favorite child. But in the past you guys have kind of called out you pointed to Alight as one of the top risk related return potentials out of the portfolio. Obviously, it's had a really good move. It's good to get past the leaseback event and all that stuff. It feels like it's got a lot more to go but considering that move and then considering some of the disconnects you guys are seeing across the portfolio. Curious, if Alight still holds that throne or might -- or what else might kind of stand out to you guys at this stage?

That's just me and not Bill and not Duke and not Bryan. But I still love Alight you can see the results you go look at what they reported this morning. They are just knocking the thing out of the park. We love the management team. It's a big idea. I do think they're going to get a re-rate. I do think they're going to hit high single-digit revenue growth eventually. And I think eventually some big company is going to come buy them. So, hopefully we'll get a double or a triple and then if that happens. But I'll say, me personally and Duke knows more about this than I do, this Sightline investment is -- could be a real -- it's growing like a weed. It also is a big idea, big total addressable market. It's got the only real product in this whole cashless gambling, casino gambling business. So, I really like that. And look Anthony has all most completely dug his way out on Dun & Bradstreet. They got behind the 8-ball line organic revenue growth for reasons that I'm sure you are aware. And I think he's about out. I think they're showing a lot of momentum. And I think that one is going to be -- that one is going to trade nicely next year. Lord Will and the markets hang on.

Got it. Thanks for the color guys.

There are no further questions in the queue. I'd like to hand the call back to management for closing remarks.

I think that's me. So, thank you operator. We continue to be excited about our opportunities. I want to remind you again about our portfolio company conference in Las Vegas on December 8th and 9th. Management teams from like I said our substantial portfolio will be hosting presentations, group meetings, one-on-ones, and so forth. It will be really fun. Bill will give the keynote or something like that, the introduction. Bill will be there; the whole team will be there. You're going to be very impressed with these folks. So, we hope to see you there. Thank you for your interest in our company. I know it's a lot of work to understand this, but I think if you do it, it will pay off. Thank you, operator.

Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation. You may disconnect your lines at this time and have a wonderful day.