Exhibit 99.3
First Advantage Corporation
Announces the Acquisition of the
CREDIT INFORMATION GROUP
of The First American Corporation
March 22, 2005
Safe Harbor
Certain statements made in this presentation, including those related to accretion to First Advantage, the market capitalization of First Advantage, revenue and earnings growth of First Advantage, the closing of the transaction, expansion into new markets, ability to pursue larger acquisitions, and ability to execute growth strategy are forward looking. 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: interest rate fluctuations; changes in the performance of the real estate markets; limitations on access to public records and other data; general volatility in the capital markets; changes in applicable government regulations; consolidation among both companies’ significant customers and competitors; the companies’ continued abilities to identify and complete acquisitions and successfully integrate acquired businesses; the market price of First Advantage’s Class A common stock; First Advantage’s ability to successfully raise capital; increases in First Advantage’s expenses; unanticipated technological changes and requirements; First Advantage’s ability to identify suppliers of quality and cost-effective data, and other factors described in both companies’ Annual Reports on Form 10-K for the year ended Dec. 31, 2004, as filed with the Securities and Exchange Commission. The forward-looking statements speak only as of the date they are made. Neither First American nor First Advantage undertakes to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
Transaction Overview
Combining The First American Corporation’s Credit Information Group (CIG) with First Advantage (FADV)
Acquisition creates an industry leader with significant scale, unique combination of data ownership, aggregation, analytics and distribution
Reunites two companies that once were one
Transaction Overview
Letter of Intent signed
Definitive agreement expected to be completed in the next two weeks
First American and FARES to receive 26,829,268 FADV Class B shares, valued at $550 mm
Conversion of $20 mm of FADV debt held by FAF into 975,610 Class B shares
2,243,902 Class B shares will be issued as consideration for two pending CIG acquisitions
Transaction Overview
Tax-free to FAF and FADV
Expected closing in late 2Q or early 3Q of 2005
Subject to approval by the independent committee, receipt of a fairness opinion by Morgan Stanley, majority approval by FADV Class A shareholders, and other customary closing conditions
Transaction Overview
Leadership
Parker Kennedy, Chairman
John Long, CEO
Anand Nallathambi, President
John Lamson, CFO
Akshaya Mehta, COO
FAF Shareholder Benefits
Contribution creates leading business solutions and data provider
Opportunity to realize synergies from accelerated product development and cross-selling
Pro forma FADV better positioned to pursue significant growth
Transaction expected to be earnings neutral to FAF in 2005
First American to own approximately 80% of FADV (based on economic ownership)
FAF expects to experience ownership dilution as FADV explores public equity offerings to support organic growth and potential acquisitions
FAF Shareholder Benefits
FAF will have two distinct parts
FAF: REAL ESTATE information and services
FADV: BUSINESS information and services
New configuration should lead to a better demonstration of value of different businesses
Each company will concentrate on its own strategies and meaningful growth opportunities
Combined efforts will grow FAF’s lead as largest seller of information in the nation
FADV Overview
Employment Screening
4.5 million background searches/year 2.0 million drug tests/year
Tax Credits & Incentives
2.5 million employment credit screens/yr. Employment and location based credits
Resident Screening
#1 provider; 5 mm apartment units served Proprietary evictions and national criminal databases
Transportation Services
13 million MVRs reported annually Proprietary transportation credit database
Investigative Services
20 of the nation’s top law firms served
Computer forensics, electronic discovery, insurance fraud investigations, and more
Consumer Services
US SEARCH.com
4.0 million unique visitors monthly Leading web directory for people location services
FADV Overview
Clients use services for decision-making and assistance with…
Hiring and employment matters
Leasing and property management
Insurance underwriting
Contracting
Fraud detection and investigations
Security and other situations
Serves 45,000+ enterprise clients in many markets
CIG Overview
Credit Information Group
Mortgage
3.0 million transactions/month
> 37% market share
Largest provider to GSE portals
Automotive
1.5 million transactions/month
30 of the top 35 auto lenders
DealerTrack partnership
Direct to Consumer
Credit monitoring/fraud prevention
One-stop customer service
Sub-prime
1.7 million transactions/month
> 112 million records
Unique dataset
CIG Overview
Blue Chip clients in every vertical market served by CIG
Strategic partnerships with dominant distribution networks
CIG is DealerTrack’s credit services partner in building advanced credit management solutions
Proprietary alternative credit program for underserved markets
CIG Overview
Provides products and services to help businesses:
Search, identify and solicit prospects
Assess credit risk and issue loans
Predict, manage and cure delinquencies
Predict, intervene and retain customers at high prepayment or flight risk
Cross-sell additional services to existing customers
Generate opportunities to supplement fee income from existing product lines
Strategic Benefits to FADV
The combined businesses represent an unparalleled platform comprising data ownership, aggregation, analytics and distribution networks.
Integrates highly complementary credit and screening products
Automotive credit complements transportation services
Direct to consumer credit services complements US SEARCH.com consumer services
Provides new vertical markets and distribution channels and maximizes cross-selling opportunities
Positions FADV to achieve exponential growth
Strategic Rationale
Immediately catapults FADV into one of the leading business information and services providers. New company has significant market share
Top three or better in all businesses
Dominant in resident screening, employment screening, mortgage credit, automotive credit, sub-prime credit
Minimal execution risk
Diversifies business model to further achieve cyclically-balanced revenue stream
Strategic Rationale
Complementary Businesses Increase Diversity of Revenue Stream
2004 FADV
Consumer Direct 5%
Risk Mitigation 28%
Enterprise Screening 67%
Pro Forma FADV
Credit Info 48%
Enterprise Screening 35%
Risk Mitigation 15%
Consumer Direct 2%
Note: Based on 2004 revenue
Financial Overview
FADV Historical Financial Information
Years Ended December 31,
2001 2002 2003 2004
Revenue $49,167,000 $100,925,000 $166,495,000 $266,537,000
Pre-Tax Income $(638,000) $4,331,000 $ 4,849,000 $18,443,000
EPS NA NA $0.14 $0.48
Financial Overview
CIG Unaudited Historical Financial Information
Years Ended December 31,
2001 2002 2003 2004
Revenue $201,000,000 $221,800,000 $254,000,000 $252,100,000
Pre-Tax Income $30,000,000 $39,300,000 $51,200,000 $54,600,000
Operating Margin 15% 18% 20% 22%
Excludes $13.1 million pre-tax investment gain in 2003.
Pre-tax income is $64.3 million in 2003, including the investment gain.
Financial Overview
FADV Unaudited Restated Financial Information
Years Ended December 31,
2003 2004 Increase
Revenue $420,469,000 $518,624,000 23%
Pre-Tax Income $45,540,000 $63,260,000 39%
Net Income $26,413,000 $36,691,000 39%
Diluted EPS $0.60 $0.80 33%
Avg. Shares 43,958,562 45,791,617
Notes:
Excludes $13.1 million pre-tax investment gain at CIG in 2003. Pre-tax income is $58,640,000 in 2003, including the investment gain. Assumes tax rate of 42%.
Assumes restatement of FADV financial information to include FAF’s ownership of CIG operations at historical cost.
FADV Financial Benefits
Strong balance sheet
Additional debt capacity at FADV
Pro Forma 2005 revenue of approximately $600 mm Pro Forma 2005 EBITDA per share of $2.25 - $2.35 Pro Forma 2005 EPS of $0.91 - $1.01, including $0.04 per share of acquisition costs related to this transaction
Note: Includes additional acquisitions.
FADV Shareholder Benefits
Accelerates company’s business plan and growth strategy
$1 billion plus market cap
$600 million in revenues
Nearly $100 million in pre-tax earnings
Adds highly complementary suite of products to FADV’s existing business offerings Enhances management team to carry forward FADV’s strategic plan