First Advantage Reports Second Quarter 2023 Results with Revenues of $185.3 Million
ATLANTA, Aug. 09, 2023 — First Advantage Corporation (NASDAQ: FA), a leading global provider of employment background screening and verification solutions, announced financial results for the second quarter ended June 30, 2023.
“We achieved second quarter Revenues and Adjusted EBITDA results in-line with the expectations we communicated during our first quarter 2023 earnings conference call and delivered sequential improvement, with the Americas segment holding up relatively well given overall market conditions. Our ability to cross-sell and upsell solutions along with our flexible cost structure contributed to strong industry-leading Adjusted EBITDA Margins of 30.2% and robust operating cash flow of $33.1 million in the second quarter. Our well-capitalized balance sheet allows us to continue to invest in market-leading solutions that enable our customers to hire smarter and onboard faster,” said Scott Staples, Chief Executive Officer.
Second Quarter 2023 Highlights
Generated Revenues of $185.3 million; Constant Currency Revenues were $186.4 million.
Delivered Net Income of $9.8 million; Adjusted Net Income was $34.8 million.
Produced Adjusted EBITDA of $56.0 million; Constant Currency Adjusted EBITDA was $56.1 million.
Realized GAAP diluted net income per share of $0.07; Adjusted Diluted Earnings Per Share was $0.24.
Achieved Cash Flows from Operations of $33.1 million.
First Advantage’s Board of Directors declared a one-time special dividend of $1.50 per share, which represents a greater than 10% return of capital to shareholders.
Balance Sheet and Liquidity
As of June 30, 2023, First Advantage had cash and cash equivalents of $399.1 million, short-term investments of $2.2 million, and total debt of $564.7 million, resulting in net debt of $163.4 million and a modest net leverage ratio of 0.7x. The Company also has full availability of $100 million under its revolving credit facility as of June 30, 2023. There are no principal debt payments due until 2027.
Cash Flow and Capital Allocation
During the second quarter of 2023, the Company generated $33.1 million of cash flow from operations and spent $7.0 million on purchases of property and equipment, including capitalized software development costs.
During the second quarter of 2023, the Company repurchased approximately 2.0 million shares of its common stock for an aggregate outlay of approximately $27.1 million under its $200 million share repurchase program. As of August 3, 2023, the Company has repurchased approximately 8.7 million shares for an aggregate outlay of approximately $114.5 million since the authorization of the share repurchase program. As of June 30, 2023, the Company had 145,193,679 shares of common stock outstanding.
Subsequent to June 30, 2023, First Advantage’s Board of Directors declared a one-time special dividend of $1.50 per share, which represents a greater than 10% return of capital to shareholders. The one-time special dividend is expected to be paid on August 31, 2023 to shareholders of record at the close of business on August 21, 2023.
About First Advantage
First Advantage 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
