First Advantage Reports First Quarter 2023 Results
ATLANTA, May 10, 2023 — First Advantage Corporation (NASDAQ: FA), a leading global provider of employment background screening and verification solutions, announced financial results for the first quarter ended March 31, 2023.
“We reported first quarter results consistent with our expectations, including revenues of $176 million and Adjusted EBITDA of $49 million, while also cycling over exceptionally strong growth in the prior-year quarter. These results demonstrated the ongoing resilience of our business as we navigated macroeconomic headwinds across several fronts, including higher interest rates, inflation, ongoing geopolitical uncertainty, and challenging labor markets,” said Scott Staples, Chief Executive Officer.
“We remain focused on providing our customers with the innovative products and solutions they need to hire smarter and onboard faster, enabled by our advanced automation, differentiated technologies, and proprietary databases. Our 30 new logo enterprise customer wins and 97% customer retention rate in the last twelve months are a direct result of our team’s execution, and we will continue to lean into our strong product innovation to drive long-term growth,” added Mr. Staples.
First Quarter 2023 Highlights
Generated Revenues of $175.5 million; Constant Currency Revenues were $177.7 million.
Delivered Net Income of $1.9 million; Adjusted Net Income was $28.4 million.
Produced Adjusted EBITDA of $48.6 million; Constant Currency Adjusted EBITDA was $49.1 million.
Realized GAAP diluted net income per share of $0.01; Adjusted Diluted EPS was $0.19.
Achieved Cash Flows from Operations of $38.6 million.
Balance Sheet and Liquidity
As of March 31, 2023, First Advantage had cash and cash equivalents of $400.2 million and total debt of $564.7 million, resulting in net debt of $164.5 million and a modest leverage ratio of 0.7x. The Company had estimated liquidity of approximately $500.2 million, including the full $100 million of untapped borrowing capacity under its revolving credit facility, as of March 31, 2023. There are no principal debt payments due until 2027 and over 70% of the Company’s debt has been hedged.
Cash Flow and Capital Allocation
During the first quarter of 2023, the Company generated $38.6 million of cash flow from operations and spent $6.1 million on purchases of property and equipment, including capitalized software development costs. During the first quarter of 2023, the Company repurchased nearly 1.9 million shares of its common stock for an aggregate outlay of $25.3 million under its $200 million share repurchase program. As of May 4, 2023, the Company has repurchased 7,430,558 shares for an aggregate of $97.4 million since the authorization of the share repurchase program on August 2, 2022. As of March 31, 2023, the Company had 147,026,264 shares of common stock outstanding.
About First Advantage
First Advantage (NASDAQ: FA) is a leading global provider of employment background screening and verification solutions. The Company delivers innovative services and insights that help customers manage risk and hire the best talent. Enabled by its proprietary technology, First Advantage’s products help companies protect their brands and provide safer environments for their customers and their most important resources: employees, contractors, contingent workers, tenants, and drivers. Headquartered in Atlanta, Georgia, First Advantage performs screens in over 200 countries and territories on behalf of its approximately 33,000 customers.
SOURCE First Advantage
