FIRST ADVANTAGE CORPORATION

Transcription

1 FIRST ADVANTAGE CORPORATION U.S. Canada U.K. Belgium India China Japan Philippines Singapore Australia Credit Suisse Global Services Conference March 13, 2007 Phoenix, AZ

2 Forward-Looking Statement Certain statements made in this presentation, including those related to First Advantage s ability to improve operating margins, continue to effectively consolidate, offer complimentary product offerings and expand cross-selling, 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 forwardlooking 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 Forms 10-K and 10-K/A for the year ended December 31, 2005, as filed with the Securities and Exchange Commission. The forward-looking statements speak only as of the date they are made. First Advantage does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. 2

3 Snap Shot First Advantage was created in 2003 Employees: Locations: Customer Base: Acquisitions: Approx. 4,500 Worldwide (3,100 Domestic) (1,360 International) Offices in 11 Countries Approx. 90,000 Customers 49 Acquisitions to Date Non-GAAP EPS $0.XX to $0.XX 3

4 Investigative & Litigation Support Services Data Recovery Quick Facts: Service Revenue: $59.2 M (YTD) Operating Margin: 20.2% (YTD) Organic Growth: 24.9% Pro Forma Percent of Consolidated Service Revenue: 8% Electronic Discovery Computer Forensics Services: Computer Forensics; Electronic Discovery; Data Recovery; Litigation Consulting; Corporate Due Diligence and Insurance Fraud Investigations Insurance Fraud Surveillance Due Diligence Reporting Competitors: Kroll OnTrack Lexis Nexis Applied Discovery 4

5 Investigative & Litigation Support Services SERVICE REVENUE ($000 s) INCOME FROM OPERATIONS ($000 s) * $7,006 $15,046 $7,899 $15,069 $8,237 $14,336 $11,438 $14,711 $34,580 $59,162 $185 $3,186 $494 $3,278 $353 $2,813 $1,075 $2,694 1Q05 1Q06 2Q05 2Q06 3Q05 3Q06 4Q05 4Q06 1Q05 1Q06 2Q05 2Q06 3Q05 3Q06 4Q05 4Q06 OPERATING MARGIN * 2.6% 21.2% 6.3% 21.8% 4.3% 19.6% 9.4% 18.3% 6.1% 20.2% $2,107 $11,971 * Excludes Share-Based Compensation 1Q05 1Q06 2Q05 2Q06 3Q05 3Q06 4Q05 4Q06 5

6 Investigative & Litigation Support Services PRODUCTAdvantage: First Advantage Litigation Consulting Services, LLC Electronic Discovery Data Collection, Conversion, Review & Production Locate, Collect, Filter and Present Data Foreign Language Processing / Translation Computer Forensics Over 30+ Staff Experts Consisting of Engineers & Licensed Forensic Examiners: Litigation Support, Intellectual Property Theft Data Recovery Services Electronic Recovery of Lost, Deleted or Altered Data Data Restoration Develop a Full Service Information Risk Management Product Menu Geographic Expansion London, New York, Washington D.C., Tokyo & Brussels Cross-Selling Initiatives Computer Forensics and ediscovery 6

7 Investigative & Litigation Support Services COMPETITIVEAdvantage: First Advantage Investigative Services, Inc. Surveillance & Special Investigations Surveillance Fraud Investigations Background & Database Investigations Due Diligence Reporting Independent Background Reporting to Fund Advisors Pension Funds M&A Activity Endowments 7

8 Employer Services Background Screening Recruiting Solutions Quick Facts: Service Revenue: $195.2 M (YTD) Operating Margin: 11.0% (YTD) Organic Growth: 12.5% Pro Forma Percent of Consolidated Service Revenue: 25% Hiring Management Services Tax Consulting Occupational Health Services Products: Hiring Process Management Solutions Pre-Employment Testing Job Board Distribution Substance Abuse Testing Tax Incentive Consulting Skills Assessment Biometrics Competitors: USIS ChoicePoint Talx ADP 8

9 Employer Services SERVICE REVENUE ($000 s) INCOME FROM OPERATIONS ($000 s) * 1Q05 1Q06 2Q05 2Q06 3Q05 3Q06 4Q05 4Q06 1Q05 1Q06 2Q05 2Q06 3Q05 3Q06 4Q05 4Q06 OPERATING MARGIN * 7.8% 7.1% 10.5% 13.0% 9.5% 11.9% 9.0% 11.3% 9.3% 11.0% * Excludes Share-Based Compensation 1Q05 1Q06 2Q05 2Q06 3Q05 3Q06 4Q05 4Q06 9 $29,888 $39,662 $36,891 $46,840 $37,673 $53,399 $39,388 $55,279 $143,839 $195,180 $2,344 $2,796 $3,859 $6,096 $3,560 $6,330 $3,537 $6,222 $13,301 $21,445

10 Employer Services COMPETITIVEAdvantage: BACKGROUND VERIFICATIONS Global Capabilities Leading Provider in Canada and Asia-Pacific Pre- and Post-Employment Screening Capabilities NationScan (National Database 180 Million Criminal Records) Increase Vertical Market Penetration COMPETITIVEAdvantage: RECRUITING SOLUTIONS Electronic Job Board Distribution Integrated or Stand-Alone Job Posting Distribution Technology Combined High-Tech and High-Touch Recruitment Process Assistance Strong Fit with Hiring Management Services 10

11 Employer Services COMPETITIVEAdvantage: APPLICANT TRACKING SYSTEMS Available in 13 Languages and Over 100 Culture Settings Solution for Both Enterprise and Mid- to Small-Market Employers Ease of Integration for Additional Solutions Develop Tools for Meeting New Compliance Requirements Tie-in Additional Solutions for Expanding Management Needs COMPETITIVEAdvantage: ASSESSMENT SOLUTIONS Pre-Employment Testing & Skills Assessment Over 800 Knowledge & Performance Assessments Offer Skills Assessment Products to Existing Client Base 11

12 Employer Services COMPETITIVEAdvantage: BIOMETRICS Nationwide Network Digitally Capture & Transmit Data Channeling Agencies: NASD, ABA, NYSE, NY Clearinghouse Fully Integrated Services in FADV Screening Platform Recently Awarded FBI Channeling Agency Designation Increased State-Based Legislation Requiring Fingerprinting for School System Contractors COMPETITIVEAdvantage: OCCUPATIONAL HEALTH Complete Substance Abuse Program Outsourcing Physical Exam Management Solutions Focus on Higher Margin, Newer Testing Methodologies 12

13 Employer Services COMPETITIVEAdvantage: : TAX CONSULTING Hiring & Location-Based Tax Incentives Consulting Welfare to Work Work Opportunity Tax Credits (WOTC) Enterprise Zone Credits Expand Into Adjacent Markets Leveraging Existing Tax Experts Manufacturing Processing Distribution Technology 13

14 We Are Market Leaders COMPETITIVEAdvantage: Employment Services #1 International Background Screening U.K. Belgium India (4 Locations) Singapore Australia U.S. & Canada Tokyo Beijing Hong Kong Philippines 14

15 Multifamily Services Resident Screening Quick Facts: Service Revenue: $68.8 M (YTD) Operating Margin: 23.2% (YTD) Organic Growth: 3.2% (YTD) Percent of Consolidated Service Revenue: 9% Renter s Insurance Property Performance Analytics Products: RegistryINSIGHT SM RegistrySCOREX SM RegistryCrimCHECK SM RegistryCrimSAFE SM Property Management Software Criminal Screening Competitors: RealPage Credit Retriever/RentPort ResidentData NTN 15

16 Multifamily Services SERVICE REVENUE ($000 s) INCOME FROM OPERATIONS ($000 s) * $14,501 $16,693 $17,088 $18,759 $17,544 $18,616 $14,121 $14,743 $63,254 $68,811 $3,655 $3,435 $5,677 $5,137 $4,824 $5,105 $1,966 $2,264 1Q05 1Q06 2Q05 2Q06 3Q05 3Q06 4Q05 4Q06 1Q05 1Q06 2Q05 2Q06 3Q05 3Q06 4Q05 4Q06 OPERATING MARGIN * 25.2% 20.6% 33.2% 27.4% 27.5% 27.4% 13.9% 15.4% 25.5% 23.2% $16,122 $15,940 * Excludes Share-Based Compensation 1Q05 1Q06 2Q05 2Q06 3Q05 3Q06 4Q05 4Q06 16

17 Multifamily Services COMPETITIVEAdvantage: Nation s Largest Provider of Resident Screening Information Proprietary Database of Landlord-Tenant Records Comprehensive Leasing Decision Service Proprietary Tenant Scoring Model Management Reports & Forms Renter s Insurance Continued Revenue Growth from Renter s Insurance Policies Increase Revenue Generation from Forms Release of Enhanced Scoring Model Independent Landlord Service Enhanced Property Performance Analytics Systems & Report Revisions 17

18 Data Services Subprime Credit Reporting Lead Generation Motor Vehicle Records Criminal Records Reselling Membership Services Transportation Credit Reporting Consumer Services Quick Facts: Service Revenue: $148.7 M (YTD) Operating Margin: 28.2% (YTD) Organic Growth: 20.8% (YTD) Percent of Consolidated Service Revenue: 19% Product Companies: TeleTrack First Advantage ADR LeadClick Media First Advantage Membership Services US Search.com Competitors: ChoicePoint ValueClick Aquartive Credit Bureaus 18

19 Data Services SERVICE REVENUE ($000 s) INCOME FROM OPERATIONS ($000 s) * $18,896 $35,881 $20,864 $35,278 $22,100 $37,153 $29,839 $40,412 $91,699 $148,724 $6,285 $9,862 $7,465 $9,530 $7,206 $10,511 $8,504 $12,088 1Q05 1Q06 2Q05 2Q06 3Q'05 3Q06 4Q05 4Q06 1Q05 1Q06 2Q05 2Q06 3Q05 3Q06 4Q05 4Q06 OPERATING MARGIN * 33.3% 27.5% 35.8% 27.0% 32.6% 28.3% 28.5% 29.9% 32.1% 28.2% $29,460 $41,991 1Q05 1Q06 2Q05 2Q06 3Q05 3Q06 4Q05 4Q06 * Excludes Share-Based Compensation 19

20 Data Services COMPETITIVEAdvantage: TRANSPORTATION Comprehensive Driving Records Coverage Targeted Trucking Vertical Credit Reports Non-Payment Reporting Services Vehicle Inquiry and Registration Services Employment History Database Targeted at Trucking Industry Grow Employment Screening Market Share Targeted Market Specific Specialty Products Carrier MVR COMPETITIVEAdvantage: SUBPRIME (TeleTrack) Nation s Premier Subprime Database Fraud Alerts / ID Verification People Locate Capabilities Scoring & Analytic Products International Expansion 20

21 Data Services COMPETITIVEAdvantage: MEMBERSHIP SERVICES TPA Products & Services Consumer Credit Reporting & Monitoring Services Consumer Credit Dispute Services Expand TPA Services to New Clients Expand Non-Credit Based Membership Products Security Breach Notification Services COMPETITIVEAdvantage: CONSUMER SERVICES (US Search.com) Market-Leading Internet Public Record Location Service Grow & Expand Membership Programs & Subscription Services New Annual Membership Offerings: Credit Monitoring Neighborhood Watch 21

22 Data Services COMPETITIVEAdvantage: : LEAD GENERATION Major Player in Sub-Prime and Auto Lead Generation Affiliate Marketing Network / eadvertising.com Proprietary Marketing Database Expand Publisher Reach and Lead Volume Through Enhanced Lead Flow Model Increase Presence in Real Estate and Specialty Finance Leads First Advantage Partnerships BarNone, TeleTrack, Credco, & First American 22

23 Dealer Services Credit Reports ID Verification Lead Generation Quick Facts: Service Revenue: $120.8 M (YTD) Operating Margin: 13.7% (YTD) Organic Growth: 7.2% (YTD) Market Share: ~ 33% Percent of Consolidated Service Revenue: 16% Products: Credco Lead Prospector Internet & Special Finance Leads MyMarket IQ BuyerID Competitors: Credit Automation Software Credit Scoring Credit Bureaus ADP CarsDirect.com Autobytel COBALT Interactive Financial 23

24 Dealer Services SERVICE REVENUE ($000 s) INCOME FROM OPERATIONS ($000 s) * $19,493 $29,629 $23,540 $31,168 $29,219 $31,993 $26,105 $27,990 $98,357 $120,780 $3,396 $4,022 $3,162 $5,085 $3,964 $5,025 $3,037 $2,413 1Q05 1Q06 2Q05 2Q06 3Q'05 3Q06 4Q05 4Q06 1Q05 1Q06 2Q05 2Q06 3Q05 3Q06 4Q05 4Q06 OPERATING MARGIN * 17.4% 13.6% 13.4% 16.3% 13.6% 15.7% 11.6% 8.6% 13.8% 13.7% $13,559 $16,545 * Excludes Share-Based Compensation 1Q05 1Q06 2Q05 2Q06 3Q05 3Q06 4Q05 4Q06 24

25 Dealer Services COMPETITIVEAdvantage: CREDCO Merged Credit Bureau Reports One Platform / Interface Over 40 Strategic Marketing Partnerships Total Solution Selling Add On Products Enhanced Credit Reporting Tools Performance Tracking COMPETITIVEAdvantage: LEAD GENERATION On-Line & Off-Line Marketing (TV, Direct Mail) Dealer Relationships Media Mix Expand Dealer Footprint Continued Data Analysis Growth 25

26 Dealer Services CREDIT AUTOMATION SOFTWARE Third Party Channel Partners CREDCO Decision Suite DealerTrack Verification Process Development of Lender Portal Leverage FADV Dealer Services Companies Integrate evaluate into CREDCO DecisionSuite BarNone Use for Decisioning TeleTrack Use for Decisioning 26

27 Lender Services Triple Merged Credit Reports Quick Facts: Service Revenue: $176 M (YTD) Operating Margin: 31.2% (YTD) Organic Growth: 3.6% (YTD) Market Share: 40% - 45% Percent of Consolidated Service Revenue: 23% ID Verification Broker Certification Products: InstantMerge MergePlus Residential Mortgage Credit Report Anthem Report Fraud Tools Account Monitoring Competitors: Kroll Factual Data Equifax Mortgage CBC Companies 27

28 Lender Services SERVICE REVENUE ($000 s) INCOME FROM OPERATIONS ($000 s)* $39,203 $45,302 $45,853 $45,649 $43,907 $44,072 $39,364 $40,968 $168,327 $175,991 $11,781 $13,656 $12,844 $14,569 $12,971 $14,780 $10,609 $11,975 1Q05 1Q06 2Q05 2Q06 3Q05 3Q06 4Q05 4Q06 1Q05 1Q06 2Q05 2Q06 3Q05 3Q06 4Q05 4Q06 OPERATING MARGIN * 30.1% 30.1% 28.0% 31.9% 29.5% 33.5% 27.0% 29.2% 28.6% 31.2% $48,205 $54,979 * Excludes Share-Based Compensation 1Q05 1Q06 2Q05 2Q06 3Q05 3Q06 4Q05 4Q06 28

29 Lender Services PRODUCTAdvantage: Triple-Merge Credit Reports Account Monitoring Fraud & Identity Theft Monitoring Cross-Sell Other FADV Data Products Product, Market & Service Diversification Increase Efficiencies Expand Call Center Capabilities Increase Broker Penetration 29

30 Financial Overview SERVICE REVENUE ($000 s) NET INCOME ($000 s) $596,105 $764,841 $58,426 $66,161 $472,142 $37,885 $42,333 $388, DILUTED EARNINGS PER SHARE $0.79 $0.85 $1.09 $

31 Financial Overview ($ 000 s) $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 Cash Flow From Operations $93,304 $72,306 $58,971 $37,894 $10,000 $

32 Financial Overview ($ 000 s) $200,000 $180,000 $160,000 EBITDA $173,645 $140,000 $120,000 $100,000 $80,000 $80,610 $97,961 $127,460 $60,000 $40,000 $20,000 $

33 2007 Focus Points Operational Improvements Continued Consolidation Opportunities Improve Operating Margins Slowing Deal Flow Focus on Complimentary Product Offerings Organic Growth Cross-Sell Cross-Sell Cross-Sell 33

34 We Are Market Leaders COMPETITIVEAdvantage: Credit Reporting #1 Reseller of Credit Data Mortgage & Automotive #1 Subprime Credit Bureau TeleTrack Tenant Screening #1 Provider of Tenant Screening Reports Driving Records #2 Provider of Driving Records Employment Services #2 Provider of Drug Screening Services #2 Provider of Employment Tax Consulting Services #3 Domestic Background Screening 34

35 FIRST ADVANTAGE CORPORATION U.S. Canada U.K. Belgium India China Japan Philippines Singapore Australia Credit Suisse Global Services Conference March 13, 2007 Phoenix, AZ