First Advantage Corporation Reports Operating Results for the First Quarter of 2008
POWAY, Calif. , April 23 /PRNewswire-FirstCall/ -- First Advantage Corporation (Nasdaq: FADV) ("the Company"), a global risk mitigation and business solutions provider, today announced its operating results for the first quarter ended March 31, 2008 .
First Advantage reported income from continuing operations of
The Company has decided to dispose of Credit Management Solutions, Inc.,
our automotive consumer credit software business, and recently announced the
sale of First Advantage Investigative Services, our investigative and
surveillance business. Loss from discontinued operations for the quarter
ended March 31, 2008 was
Earnings before interest, taxes, depreciation and amortization, (EBITDA)
were
"We are pleased with our first quarter operating results," stated Anand Nallathambi , president and chief executive officer. "Our Dealer Services, Multifamily Services and Investigative and Litigation Support segments performed well as margins increased from the first quarter of last year. We are also encouraged to see improving results in our Lender Services segment, where we experienced increased momentum in transaction volumes in the first quarter, and a significant increase in sequential service revenue and operating margin over the fourth quarter of last year.
"As stated in our earlier conference calls, over the last year, we have been going through a systematic review of our businesses to determine strategic fit and long term sustainability. If we deem an asset to be non-strategic or unable to generate sustainable value to expectations, we have been exploring divestiture or closure options. As a continuation of that process, we have decided to dispose of our automotive consumer credit software and surveillance businesses as they did not meet our growth and margin profiles, nor were they strategic to their respective business segments. We will continue to review and manage all of our assets with a heightened focus on financial performance and strategic value.
"First Advantage will continue to focus on achieving operating efficiencies in all of our businesses and emphasize cross-sell opportunities to take advantage of our vast array of products and services. We believe our leadership position in each of our major businesses and strong financial condition will enable us to take advantage of opportunities that will make First Advantage even stronger and continue to enhance long-term shareholder value."
First Advantage's first quarter 2008 results will be discussed in more detail on Wednesday, April 23, 2008 , at 5:00 p.m. EDT , via teleconference and webcast. The teleconference dial-in number is 888.889.1652 within the U.S. and 210.795.9764 outside the U.S. 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 www.FADV.com . An audio replay of the teleconference call will be available through May 7, 2008 , by dialing 888.562.7629 within the U.S., or 402.220.6506 outside the U.S. An audio archive of the webcast will also be available for replay on First Advantage's Web site following the call.
Summary Income Statement (Unaudited) (In thousands, except per share amounts) Three Months Ended March 31, 2008 2007 Service revenue $188,254 $191,060 Reimbursed government fee revenue 14,025 14,201 Total revenue 202,279 205,261 Cost of service revenue 53,716 58,712 Government fees paid 14,025 14,201 Total cost of sales 67,741 72,913 Gross margin 134,538 132,348 Salaries and benefits 66,449 70,641 Facilities and telecommunications 8,200 7,718 Other operating expenses 22,834 22,587 Depreciation and amortization 9,896 9,537 Income from operations 27,159 21,865 Interest (expense) income: Interest expense (425) (3,226) Interest income 419 332 Interest (expense) income, net (6) (2,894) Equity in earnings of investee --- 780 Income from continuing operations before income taxes and minority interest 27,153 19,751 Provision for income taxes 10,974 8,038 Income from continuing operations before minority interest 16,179 11,713 Minority interest (87) 560 Income from continuing operations 16,266 11,153 (Loss) income from discontinued operations, net of tax (2,977) 90 Net income $13,289 $11,243 Per share amounts: Basic earnings per share Income from continuing operations $0.27 $0.19 (Loss) income from discontinued operations, net of tax (0.05) 0.00 Net income $0.22 $0.19 Diluted earnings per share Income from continuing operations $0.27 $0.19 (Loss) income from discontinued operations, net of tax (0.05) 0.00 Net income $0.22 $0.19 Basic weighted-average shares outstanding 59,159 58,371 Diluted weighted-average shares outstanding 59,234 58,888 EBITDA calculation: Net income $13,289 $11,243 Provision for income taxes 10,974 8,038 Interest expense 6 2,894 Loss (income) from discontinued operations, net of tax 2,977 (90) Depreciation and amortization 9,896 9,537 Earnings before interest, taxes, depreciation and amortization (EBITDA)* $37,142 $31,622*EBITDA is not a measure of financial performance under generally accepted accounting principles. EBITDA is used by certain investors to analyze and compare companies.
Segment Financial Information (Unaudited) Three Months Ended March 31, (In thousands, except percentages) 2008 2007 Service revenue Lender Services $39,314 $46,612 Data Services 28,629 33,697 Dealer Services 25,926 27,336 Employer Services 53,687 54,698 Multifamily Services 18,349 17,605 Investigative & Litigation Support Services 23,503 12,323 Corporate (1,154) (1,211) Consolidated $188,254 $191,060 Income (Loss) from operations Lender Services $9,465 $12,656 Data Services 6,133 10,685 Dealer Services 4,519 3,668 Employer Services 3,471 5,111 Multifamily Services 4,772 4,314 Investigative & Litigation Support Services 9,525 2,921 Corporate (10,726) (17,490) Consolidated $27,159 $21,865 Operating margin percentage of service revenue Lender Services 24.08% 27.15% Data Services 21.42% 31.71% Dealer Services 17.43% 13.42% Employer Services 6.47% 9.34% Multifamily Services 26.01% 24.50% Investigative & Litigation Support Services 40.53% 23.70% Corporate N/A N/A Consolidated 14.43% 11.44%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; corporate and litigation investigations; computer forensics; electronic discovery; data recovery; due diligence reporting; resident screening; property management software and renters insurance. First Advantage ranks among the top companies in all of its major business lines. First Advantage is headquartered in Poway, Calif. , and has more than 4,800 employees in offices throughout the United States and abroad. More information about First Advantage can be found at 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 www.firstam.com .
Certain statements in this press release are forward looking, including those related to future dispositions. 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 2007 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 727.214.1072 727.214.3438 [email protected] [email protected]SOURCE First Advantage Corporation
