Condensed Financial Statements
First Advantage Corporation
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands, except
share and per share
amounts) September 30, 2024 December 31, 2023
-------------------- -------------------
ASSETS
CURRENT ASSETS
Cash and cash
equivalents $ 307,392 $ 213,774
Restricted cash 88 138
Accounts receivable
(net of allowance for
doubtful accounts of
$1,284 and $1,036 at
September 30, 2024
and December 31,
2023, respectively) 143,020 142,690
Prepaid expenses and
other current assets 13,667 13,426
Income tax receivable 2,808 3,710
---------------- ---------------
Total current assets 466,975 373,738
Property and
equipment, net 55,403 79,441
Goodwill 822,277 820,654
Trade names, net 60,990 66,229
Customer lists, net 238,821 275,528
Other intangible
assets, net 1,898 2,257
Deferred tax asset,
net 3,172 2,786
Other assets 7,598 10,021
---------------- ---------------
TOTAL ASSETS $ 1,657,134 $ 1,630,654
================ ===============
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable $ 71,108 $ 47,024
Accrued compensation 18,687 16,379
Accrued liabilities 22,962 16,162
Current portion of
operating lease
liability 2,566 3,354
Income tax payable 3,534 264
Deferred revenues 2,495 1,856
---------------- ---------------
Total current
liabilities 121,352 85,039
Long-term debt (net of
deferred financing
costs of $4,880 and
$6,268 at September
30, 2024 and December
31, 2023,
respectively) 559,844 558,456
Deferred tax
liability, net 48,181 71,274
Operating lease
liability, less
current portion 4,340 5,931
Other liabilities 2,703 3,221
---------------- ---------------
Total liabilities 736,420 723,921
EQUITY
Common stock - $0.001
par value;
1,000,000,000 shares
authorized,
145,558,948 and
145,074,802 shares
issued and
outstanding at
September 30, 2024
and December 31,
2023, respectively 146 145
Additional
paid-in-capital 998,707 977,290
Accumulated deficit (59,442) (49,545)
Accumulated other
comprehensive loss (18,697) (21,157)
---------------- ---------------
Total equity 920,714 906,733
---------------- ---------------
TOTAL LIABILITIES AND
EQUITY $ 1,657,134 $ 1,630,654
================ ===============
First Advantage Corporation
Condensed Consolidated Statements of Operations and
Comprehensive (Loss) Income
(Unaudited)
Three Months Ended September 30,
------------------------------------
(in thousands, except share
and per share amounts) 2024 2023
------------------- ------------------
REVENUES $ 199,119 $ 200,364
OPERATING EXPENSES:
Cost of services
(exclusive of
depreciation and
amortization below) 100,879 101,410
Product and technology
expense 12,909 13,107
Selling, general, and
administrative expense 46,050 30,217
Depreciation and
amortization 30,168 32,419
-------------- --------------
Total operating expenses 190,006 177,153
-------------- --------------
INCOME FROM OPERATIONS 9,113 23,211
-------------- --------------
OTHER EXPENSE, NET:
Interest expense, net 17,191 7,557
-------------- --------------
Total other expense, net 17,191 7,557
-------------- --------------
(LOSS) INCOME BEFORE
PROVISION FOR INCOME TAXES (8,078) 15,654
Provision for income taxes 782 4,881
-------------- --------------
NET (LOSS) INCOME $ (8,860) $ 10,773
============== ==============
Foreign currency translation
income (loss) 5,531 (1,610)
-------------- --------------
COMPREHENSIVE (LOSS) INCOME $ (3,329) $ 9,163
============== ==============
NET (LOSS) INCOME $ (8,860) $ 10,773
Basic net (loss) income per
share $ (0.06) $ 0.08
Diluted net (loss) income per
share $ (0.06) $ 0.07
Weighted average number of
shares outstanding - basic 144,096,312 143,231,707
Weighted average number of
shares outstanding -
diluted 144,096,312 144,733,357
First Advantage Corporation
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended September 30,
-------------------------------------
(in thousands) 2024 2023
--------------------- -----------------
CASH FLOWS FROM OPERATING
ACTIVITIES
Net (loss) income $ (9,907) $ 22,480
Adjustments to reconcile net
(loss) income to net cash
provided by operating
activities:
Depreciation and
amortization 89,968 96,341
Amortization of deferred
financing costs 1,388 1,362
Bad debt expense 92 134
Deferred taxes (23,115) (8,723)
Share-based compensation 19,303 10,449
Loss on foreign currency
exchange rates -- 26
(Gain) loss on disposal of
fixed assets and
impairment of ROU assets (272) 1,724
Change in fair value of
interest rate swaps (1,006) (2,201)
Changes in operating assets
and liabilities:
Accounts receivable (151) (12,162)
Prepaid expenses and other
assets 1,184 8,661
Accounts payable 23,115 531
Accrued compensation and
accrued liabilities 9,917 (8,389)
Deferred revenues 591 87
Operating lease liabilities (722) (1,134)
Other liabilities (673) (198)
Income taxes receivable and
payable, net 4,150 (2,908)
------------- -------------
Net cash provided by
operating activities 113,862 106,080
------------- -------------
CASH FLOWS FROM INVESTING
ACTIVITIES
Capitalized software
development costs (20,384) (18,781)
Purchases of property and
equipment (1,386) (1,798)
Other investing activities 29 (231)
Acquisitions of businesses,
net of cash acquired 25 (41,122)
------------- -------------
Net cash used in
investing activities (21,716) (61,932)
------------- -------------
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from issuance of
common stock under
share-based compensation
plans 5,862 4,089
Net settlement of
share-based compensation
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