First Advantage Corporation Reports Operating Results for the Second Quarter of 2007

July 25, 2007

ST. PETERSBURG , Fla., July 25 /PRNewswire-FirstCall/ -- First Advantage Corporation (Nasdaq: FADV), a global risk mitigation and business solutions provider, today announced operating results for the second quarter ended June 30, 2007 .

First Advantage reported net income of $18.3 million (31 cents per diluted share) for the quarter ended June 30, 2007 , compared with net income of $16.6 million (29 cents per diluted share) for the quarter ended June 30, 2006 .

Total revenue for the company was $221.0 million and $205.1 million for the quarters ended June 30, 2007 and June 30, 2006 , respectively.

Earnings before interest, taxes, depreciation and amortization, minority interest and share-based compensation expense (adjusted EBITDA) were $48.8 million and $46.6 million for the quarters ended June 30, 2007 and 2006, respectively.

"This quarter, we continue to see the benefits of our strategic growth initiatives," said Anand Nallathambi, president and chief executive officer. "Our Employer Services segment had solid revenue growth during the second quarter as a result of international cross-sell initiatives, product expansion and enhanced operational efficiencies. Although we experienced some volatility in the mortgage industry, our Lender Services segment continues to perform well as the result of increased market share and product mix.

"Margins were improved in our Data Services, Multifamily Services and Investigative and Litigation Support Services segments from the second quarter of last year. As for our Dealer Services segment, the subprime automotive lead processing business continues to face challenges due to market conditions and reorganization of the operations. The automotive credit portion, the bigger piece of the segment's business, produced consistent growth in credit transactions as a result of increasing market share."

First Advantage's second quarter 2007 results will be discussed in more detail on Wednesday, July 25, 2007 , at 5:00 p.m. EDT , via teleconference and webcast. The teleconference dial-in number is 888.791.1856 within the United States and 773.799.3727 outside the United States . The teleconference pass code is "Advantage". The live audio webcast of the call will be accessible from the Investor Relations section of First Advantage's Web site at http://www.FADV.com. An audio replay of the teleconference call will be available through August 8, 2007 , by dialing 866.501.2958 within the United States , or 203.369.1826 outside the United States . An audio archive of the webcast will also be available for replay on First Advantage's Web site following the call.

Summary Consolidated Income Statement (Unaudited) (In thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2007 2006 2007 2006 Service revenue $ 207,353 $191,740 $409,240 $372,959 Reimbursed government fee revenue 13,618 13,383 27,819 26,512 Total revenue 220,971 205,123 437,059 399,471 Cost of service revenue 60,830 59,153 122,018 115,742 Government fees paid 13,618 13,383 27,819 26,512 Total cost of sales 74,448 72,536 149,837 142,254 Gross margin 146,523 132,587 287,222 257,217 Salaries and benefits 65,850 58,746 139,820 117,380 Facilities and telecommunications 8,117 7,529 16,142 14,580 Other operating expenses 27,541 23,500 53,790 46,051 Depreciation and amortization 10,737 9,518 21,182 18,728 Income from operations 34,278 33,294 56,288 60,478 Interest (expense) income: Interest expense (3,097) (3,250) (6,323) (6,491) Interest income 311 162 652 302 Interest (expense) income, net (2,786) (3,088) (5,671) (6,189) Equity in earnings of investee 670 551 1,450 660 Income before income taxes and minority interest 32,162 30,757 52,067 54,949 Provision for income taxes 13,346 13,387 21,448 23,887 Income before minority interest 18,816 17,370 30,619 31,062 Minority interest 469 733 1,029 1,680 Net income $18,347 $ 16,637 $29,590 $29,382 Per share amounts: Basic earnings per share $.31 $.29 $.50 $.52 Basic weighted-average shares outstanding 58,954 57,730 58,665 56,868 Diluted earnings per share $.31 $.29 $.50 $.51 Diluted weighted-average shares outstanding 59,445 57,929 59,130 58,019 EBITDA and adjusted EBITDA calculation: Net income $18,347 $ 16,637 $29,590 $ 29,382 Provision for income taxes 13,346 13,387 21,448 23,887 Minority interest 469 733 1,029 1,680 Interest expense 3,097 3,250 6,323 6,491 Depreciation and amortization 10,737 9,518 21,182 18,728 Earnings before interest, taxes, depreciation and amortization (EBITDA)* $45,996 $ 43,525 $ 79,572 $ 80,168 Share based compensation expense 2,846 3,112 8,903 5,962 Adjusted EBITDA $48,842 $ 46,637 $ 88,475 $ 86,130 * EBITDA and adjusted EBITDA are not measures of financial performance under generally accepted accounting principles. EBITDA and adjusted EBITDA are used by certain investors to analyze and compare companies. Segment Financial Information (Unaudited) (In thousands, except percentages) Three Months Ended June 30, Six Months Ended June 30, 2007 2006 2007 2006 Service revenue Lender Services $42,833 $45,649 $88,470 $90,951 Data Services 38,694 35,278 78,736 71,159 Dealer Services 29,877 31,168 59,644 60,797 Employer Services 57,823 46,840 112,521 86,502 Multifamily Services 19,676 18,759 37,281 35,452 Investigative & Litigation Support Services 18,940 15,069 34,238 30,115 Corporate (490) (1,023) (1,650) (2,017) Consolidated $207,353 $191,740 $409,240 $372,959 Income (Loss) from operations Lender Services $11,686 $14,385 $24,342 $27,866 Data Services 10,995 9,267 22,716 18,902 Dealer Services 3,576 4,973 7,088 8,901 Employer Services 6,799 5,663 11,910 8,001 Multifamily Services 5,866 4,886 10,180 8,090 Investigative & Litigation Support Services 4,430 3,087 6,616 6,156 Corporate (9,074) (8,967) (26,564) (17,438) Consolidated $34,278 $33,294 $56,288 $60,478 Operating margin percentage of service revenue Lender Services 27.28% 31.51% 27.51% 30.64% Data Services 28.42% 26.27% 28.85% 26.56% Dealer Services 11.97% 15.96% 11.88% 14.64% Employer Services 11.76% 12.09% 10.58% 9.25% Multifamily Services 29.81% 26.05% 27.31% 22.82% Investigative & Litigation Support Services 23.39% 20.49% 19.32% 20.44% Corporate N/A N/A N/A N/A Consolidated 16.53% 17.36% 13.75% 16.22%

About First Advantage Corporation

First Advantage Corporation (NASDAQ: FADV) combines industry expertise with information to create products and services that organizations worldwide use to make smarter business decisions. First Advantage is a leading provider of consumer credit information in the mortgage, automotive and specialty finance markets; business credit information in the transportation industry; lead generation services; motor vehicle record reports; supply chain security consulting; employment background verifications; occupational health services; applicant tracking systems; recruiting solutions; skills and behavioral assessments; business tax consulting services; insurance fraud, corporate and litigation investigations; surveillance; computer forensics; electronic discovery; data recovery; due diligence reporting; resident screening; property management software; renters insurance and consumer location services. First Advantage ranks among the top companies in all of its major business lines. First Advantage is headquartered in St. Petersburg , Fla., and has more than 4,700 employees in offices throughout the United States and abroad. More information about First Advantage can be found at http://www.FADV.com.

First Advantage is a majority-owned subsidiary of The First American Corporation (NYSE: FAF), a FORTUNE 500(R) company that traces its history to 1889. First American is America's largest provider of business information, supplying businesses and consumers with valuable information products to support the major economic events of people's lives. Additional information about the First American Family of Companies can be found at http://www.firstam.com.

Certain statements in this press release are forward looking. Risks and uncertainties exist that may cause results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements include: general volatility of the capital markets and the market price of the company's Class A common stock; the company's ability to successfully raise capital; the company's ability to identify and complete acquisitions and successfully integrate businesses it acquires; changes in applicable government regulations; the degree and nature of the company's competition; increases in the company's expenses; continued consolidation among the company's competitors and customers; unanticipated technological changes and requirements; the company's ability to identify suppliers of quality and cost-effective data; and other risks identified from time-to-time in the company's SEC filings. The forward-looking statements speak only as of the date they are made. The company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. Investors are advised to consult the company's filings with the SEC, including its 2006 Annual Report on Form 10-K and subsequent amendments, for a further discussion of these and other risks.

Contacts: Henri Van Parys Cindy Williams Corporate Communications Manager Investor Relations Manager 727.214.3411, ext. 4136 727.214.3438 [email protected] [email protected]

SOURCE First Advantage Corporation

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