First Advantage (FA) 8-K First Advantage Corporation Reports

Exhibit 99.1

12395 First American WayŸ Poway, CA 92064

NEWS FOR IMMEDIATE RELEASE
Contacts:
Henri Van Parys	Cindy Williams
Corporate Communications Manager	Director – Investor Relations
727.214.1072	727.214.3438
henri.vanparys@FADV.com	cindy.williams@FADV.com

FIRST ADVANTAGE CORPORATION REPORTS

OPERATING RESULTS FOR THE THIRD QUARTER OF 2009

POWAY, Calif., Oct. 28, 2009—First Advantage Corporation (NASDAQ: FADV) (“the Company”), a global risk mitigation and business solutions provider, today announced operating results for the third quarter ended Sept. 30, 2009.

First Advantage reported income from continuing operations of $11.4 million for the quarter ended Sept. 30, 2009, compared to $12.3 million for the quarter ended Sept. 30, 2008. Net income attributable to First Advantage shareholders was $11.5 million (19 cents per share) in the quarter ended Sept. 30, 2009, compared to $12.6 million in the quarter ended Sept. 30, 2008 (21 cents per share). Results of operations for the quarter ended Sept. 30, 2008 included a restructuring charge of $2.8 million ($1.6 million after tax or 3 cents per diluted share), primarily relating to consolidation of facilities in the Credit Services segment.

Service revenue for the Company was $156 million and $174.7 million for the quarters ended Sept. 30, 2009 and 2008, respectively.

Earnings before interest, taxes, depreciation and amortization (EBITDA) were $29.5 million and $34.7 million for the quarters ended Sept. 30, 2009 and 2008, respectively.

“Despite lackluster auto sales, Credit Services posted improved results compared to a year ago, driven by stronger performance in the Mortgage and Direct to Consumer businesses. Current macro-economic conditions continued to pose challenges for our Employer Services and Investigative and Litigation Support Services segments during the third quarter. Service revenues and operating margins were negatively impacted,” stated Anand Nallathambi, president and chief executive officer. “We continue to emphasize operating efficiencies and enhancing market share in our major business lines.”

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First Advantage Corporation Reports Operating Results for the Third Quarter of 2009

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Summary Consolidated Income Statement (Unaudited)

(In thousands, except per share amounts)	Three Months Ended September 30,						Nine Months Ended September 30,
	2009			2008			2009			2008
Service revenue	$	155,980		$	174,664		$	510,688		$	545,341
Reimbursed government fee revenue		13,586			13,633			39,905			40,780
Total revenue		169,566			188,297			550,593			586,121
Cost of service revenue		51,429			53,520			191,030			160,723
Government fees paid		13,586			13,633			39,905			40,780
Total cost of service		65,015			67,153			230,935			201,503
Gross margin		104,551			121,144			319,658			384,618
Salaries and benefits		49,920			59,113			151,217			188,489
Facilities and telecommunications		6,741			7,789			20,265			24,073
Other operating expenses		18,453			19,899			56,397			65,642
Depreciation and amortization		10,993			10,898			32,574			31,520
Impairment loss		—			1,720			—			2,017
Total operating expenses		86,107			99,419			260,453			311,741
Income from operations		18,444			21,725			59,205			72,877
Other (expense) income:
Interest expense		(234	)		(640	)		(903	)		(2,140	)
Interest income		103			155			387			746
Total other (expense), net		(131	)		(485	)		(516	)		(1,394	)
Income from continuing operations before income taxes		18,313			21,240			58,689			71,483
Provision for income taxes		6,898			8,932			23,856			29,582
Income from continuing operations		11,415			12,308			34,833			41,901
Loss from discontinued operations, net of tax		—			—			—			(4,241	)
Net income	$	11,415		$	12,308		$	34,833		$	37,660
Less: Net loss attributable to non-controlling interest		(35	)		(323	)		(202	)		(648	)
Net income attributable to First Advantage Corporation (“FADV”)	$	11,450		$	12,631		$	35,035		$	38,308
Basic earnings per share:
Income from continuing operations attributable to FADV shareholders	$	0.19		$	0.21		$	0.59		$	0.72
Loss from discontinued operations, attributable to FADV shareholders, net of tax		—			—			—			(0.07	)
Net income attributable to FADV shareholders	$	0.19		$	0.21		$	0.59		$	0.65
Diluted income per share:
Income from continuing operations attributable to FADV shareholders	$	0.19		$	0.21		$	0.59		$	0.72
Loss from discontinued operations attributable to FADV shareholders, net of tax		—			—			—			(0.08	)
Net income attributable to FADV shareholders	$	0.19		$	0.21		$	0.59		$	0.64
Weighted-average common shares outstanding:
Basic		59,803			59,478			59,722			59,358
Diluted		60,086			59,529			59,867			59,446
Amounts attributable to FADV shareholders:
Income from continuing operations, net of tax	$	11,450		$	12,631		$	35,035		$	42,549
Loss from discontinued operations, net of tax		—			—			—			(4,241	)
Net income	$	11,450		$	12,631		$	35,035		$	38,308
EBITDA calculation:
Net income attributable to First Advantage Corporation	$	11,450		$	12,631		$	35,035		$	38,308
Provision for income taxes		6,898			8,932			23,856			29,582
Interest expense		131			485			516			1,394
Loss from discontinued operations, net of tax		—			—			—			4,241
Depreciation and amortization		10,993			10,898			32,574			31,520
Impairment loss		—			1,720			—			2,017
Earnings before interest, taxes, depreciation and amortization (EBITDA)*	$	29,472		$	34,666		$	91,981		$	107,062

* EBITDA is not a measure of financial performance under generally accepted accounting principles. EBITDA is used by certain investors to analyze and compare companies.

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First Advantage Corporation Reports Operating Results for the Third Quarter of 2009

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Segment Financial Information (Unaudited)

	Three Months Ended Sept. 30,						Nine Months Ended Sept. 30,
(In thousands, except percentages)	2009			2008			2009			2008
Service revenue
Credit Services	$	59,443		$	60,837		$	191,567		$	202,723
Data Services		25,514			21,922			113,456			60,422
Employer Services		41,731			54,199			119,350			163,397
Multifamily Services		19,879			19,702			57,467			58,037
Investigative & Litigation Support Services		9,804			18,600			30,224			63,281
Corporate		(391	)		(596	)		(1,376	)		(2,519	)
Consolidated	$	155,980		$	174,664		$	510,688		$	545,341
Income (Loss) from operations
Credit Services	$	12,489		$	7,063		$	44,820		$	35,371
Data Services		3,590			3,680			11,389			11,214
Employer Services		3,929			6,644			6,110			13,119
Multifamily Services		7,268			6,654			20,521			17,995
Investigative & Litigation Support Services		1,337			6,347			2,753			23,407
Corporate		(10,169	)		(8,663	)		(26,388	)		(28,229	)
Consolidated	$	18,444		$	21,725		$	59,205		$	72,877
Operating margin percentage of service revenue
Credit Services		21.01	%		11.61	%		23.40	%		17.45	%
Data Services		14.07	%		16.79	%		10.04	%		18.56	%
Employer Services		9.42	%		12.26	%		5.12	%		8.03	%
Multifamily Services		36.56	%		33.77	%		35.71	%		31.01	%
Investigative & Litigation Support Services		13.64	%		34.12	%		9.11	%		36.99	%
Corporate		N/A			N/A			N/A			N/A
Consolidated		11.82	%		12.44	%		11.59	%		13.36	%

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First Advantage Corporation Reports Operating Results for the Third Quarter of 2009

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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; employment background screening; 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 offices throughout the United States and abroad. More information about First Advantage can be found atwww.FADV.com.

First Advantage is a majority-owned subsidiary of The First American Corporation (NYSE: FAF), a FORTUNE 500^® 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 atwww.firstam.com.

Certain statements in this press release including those related to cost reduction initiatives and impact on improved efficiencies in the future quarters, product expansion and enhanced operational efficiencies are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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: risks relating to the First American Corporation’s (“First American”) exchange offer (the “Offer”) to acquire all of the outstanding shares of the Company’s Class A common stock (“Class A Shares”) not owned or controlled by First American at an exchange ratio of 0.58 of a First American common share per Class A Share, including the risks described in the Offer to Exchange and related materials filed by First American on a Registration Statement on Form S-4 with the Securities and Exchange Commission and which may be amended from time to time by First American; general volatility of the capital markets and the market price of the Company’s Class A common stock; interest rate fluctuations; changes in the real estate market; changes in employment trends; limit on access to public records; 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; heightened regulations and regulatory scrutiny; the degree and nature of the Company’s competition; increases in the Company’s expenses; inability to realize the benefits of offshore strategy; 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 2008 Annual Report on Form 10-K, 2008 Third Quarter Report on Form 10-Q and any subsequent amendments, for a further discussion of these and other risks.

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First Advantage Corporation Reports Operating Results for the Third Quarter of 2009

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Notice to Stockholders of Exchange Offer by First American:

On October 8, 2009, The First American Corporation (“First American”) commenced an exchange offer (the “Offer”) to acquire all of the outstanding shares of the Company’s Class A common stock (“Class A Shares”) not owned or controlled by First American at an exchange ratio of 0.58 of a First American common share per Class A Share. In connection with the Offer, First American filed an Offer to Exchange and related materials with the Securities and Exchange Commission (“SEC”) on a Registration Statement on Form S-4. On October 8, 2009, the Company filed with the SEC a Solicitation/ Recommendation Statement on Schedule 14D-9 pursuant to which the Special Committee of the Board of Directors of the Company (the “Special Committee”) recommended, on behalf of the Board of Directors of the Company, that the stockholders of the Company accept the Offer and tender their shares pursuant to the Offer.

Stockholders are urged to read the Offer to Exchange and related materials and the Solicitation/ Recommendation Statement and any amendments thereto filed from time to time, because they will contain important information. Stockholders will be able to obtain a free copy of the Offer to Exchange and related materials and the Solicitation/Recommendation Statement at the SEC’s Web site atwww.sec.gov . In addition, the Solicitation/Recommendation Statement, as well as the Company’s other public SEC filings, can be obtained atwww.FADV.com. You may also read and copy any reports, statements and other information filed by First American or the Company with the SEC at the SEC public reference room at 100 F Street N.E., Washington, D.C. 20549. Please call the SEC at 800.732.0330 or visit the SEC’s Web site for further information on its public reference room.

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