Current Assets (USD, thousands)

Cash and Cash Equivalents (USD, thousands)

Accounts Receivable (USD, thousands)

Inventory (USD, thousands)

Non-Current Assets (USD, thousands)

Property, Plant, and Equipment (PP&E) (USD, thousands)

Goodwill (USD, thousands)

Intangible Assets (USD, thousands)

Current Liabilities (USD, thousands)

Accounts Payable (USD, thousands)

Short-term Debt (USD, thousands)

Accrued Expenses (USD, thousands)

Non-Current Liabilities (USD, thousands)

Long-term Debt (USD, thousands)

Lease Liabilities (USD, thousands)

Deferred Tax Liabilities (USD, thousands)

Shareholders' Equity (USD, thousands)

Retained Earnings (USD, thousands)

Common Stock (USD, thousands)

Additional Paid-in Capital (USD, thousands)

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Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

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REVENUES (USD, thousands)

Cost of services (exclusive of depreciation and amortization below) (USD, thousands)

Product and technology expense (USD, thousands)

Selling, general, and administrative expense (USD, thousands)

Depreciation and amortization (USD, thousands)

Total operating expenses (USD, thousands)

INCOME FROM OPERATIONS (USD, thousands)

Interest expense, net (USD, thousands)

Total other expense, net (USD, thousands)

(LOSS) INCOME  BEFORE PROVISION FOR INCOME TAXES (USD, thousands)

Provision for income taxes (USD, thousands)

NET (LOSS) INCOME (USD, thousands)

Foreign currency translation income (loss) (USD, thousands)

COMPREHENSIVE (LOSS) INCOME (USD, thousands)

Basic net (loss) income per share (USD)

Diluted net (loss) income per share (USD)

Weighted average number of shares outstanding - basic

Weighted average number of shares outstanding - diluted

2cea6e8fdf114c768106d7e007ba602fb43211ca93a86430e0f51ff00f2242a3

Cash and cash equivalents were significantly lower in Q3 2023 due to several key factors. The company paid a **one-time special dividend of $1.50 per share** amounting to approximately **$217.7 million**.  **[0000950170-23-061468_fa-ex99_1.htm:0]** **[0000950170-23-061468_fa-ex99_1.htm:9]**  In addition, **share repurchases worth $55.9 million** and a **cash-funded acquisition of Infinite ID for $41 million** further reduced the cash balance.  **[0000950170-23-061468_fa-ex99_1.htm:0]** **[0000950170-23-061468_fa-ex99_1.htm:9]**  Although these outflows were partly offset by **$106.1 million in net cash from operating activities**, the overall effect was a substantial decrease in cash and cash equivalents.  **[0000950170-23-061468_fa-ex99_1.htm:9]** 

Why was Cash and cash equivalents so low in Q3 2023?

The significant drop in Total Assets in Q3 2023 was driven by multiple factors. **Cash and cash equivalents declined sharply** due to a **one-time special dividend of $1.50 per share**, which returned approximately **$218 million** to shareholders, and a **cash-funded acquisition of Infinite ID for $41 million**. Additionally, **amortization and depreciation** led to declines in customer lists, trade name assets, property and equipment, and other current assets, contributing to the overall decrease in total assets.  **[0000950170-23-061468_fa-ex99_1.htm:0]** **[FA_3365738_3]** **[0000950170-23-062076_fa-20230930.htm:1]** **[0000950170-23-061468_fa-ex99_1.htm:7]** 

What drove the significant drop in Total Assets in Q3 2023?

704b1f35b3bb5f493b18bb6769304c49ba89ee2545b1b2d435acb10f080f9fe8

The income from operations turned negative in Q1 2024 primarily because **revenues declined** and **operating expenses increased significantly**. Revenues dropped from **$175,520 thousand** in Q1 2023 to **$169,416 thousand** in Q1 2024 (a decrease of **$6.1 million** or **3.5%**) due to a reduction in existing customer revenues influenced by macroeconomic factors in key segments.  **[0000950170-24-056995_fa-20240331.htm:25]**  At the same time, **Selling, General, and Administrative Expenses** rose sharply from **$28,682 thousand** to **$40,662 thousand** (an increase of **$11,980 thousand**), while the decrease in the **Cost of Services** was not enough to offset these negative impacts.  **[0000950170-24-056995_fa-20240331.htm:25]** 

Why did income from operations turn negative in Q1 2024?

The net loss in Q1 2024 was primarily driven by **increased Selling, General, and Administrative (SG&A) expenses**—notably costs associated with the pending acquisition of Sterling such as legal, regulatory, and diligence fees—which rose by **$11,980 thousand**. This was compounded by **declining revenues**, down by **$6,104 thousand**, and by **substantial transaction and acquisition-related charges** of **$11,992 thousand**, which starkly contrasted with the much lower charges in the prior period. These factors, along with other cost adjustments, collectively shifted the income figure from a net profit in Q1 2023 to a net loss in Q1 2024.  **[0000950170-24-056995_fa-20240331.htm:27]** **[0000950170-24-056174_fa-ex99_1.htm:11]** **[0000950170-24-056174_fa-ex99_1.htm:0]** **[0000950170-24-056995_fa-20240331.htm:25]** 

What drove the net loss in Q1 2024?

EPS dropped to a loss in Q1 2024 primarily due to **lower revenues** and **higher operating expenses**. Specifically, revenues fell by **3.5%** (from **$175.5 million** to **$169.4 million**) while operating expenses, especially **selling, general, and administrative costs**, increased significantly—driven in part by **$11.1 million in acquisition-related expenses** for Sterling Check Corp. Additionally, the company recorded a **net loss of $(2.9) million** in Q1 2024 compared to a net income of **$1.9 million** in Q1 2023, all of which contributed to the EPS turning negative.  **[0000950170-24-056995_fa-20240331.htm:1]** **[0000950170-24-056174_fa-ex99_1.htm:0]** **[0000950170-24-056174_fa-ex99_1.htm:8]** 

Why did EPS drop to a loss in Q1 2024?

The deep net loss in Q3 2024 resulted primarily from **increased Selling, General, and Administrative Expenses**, which rose significantly due to the acquisition of Sterling, **acquisition-related charges** of **$13.2 million** related to Sterling Check Corp, and substantially higher **interest expense** alongside broader impacts from macroeconomic events affecting customer demand.  **[0000950170-24-125426_fa-20240930.htm:33]** **[0000950170-24-124503_fa-ex99_1.htm:8]** **[0000950170-24-124503_fa-ex99_1.htm:0]** 

What factors contributed to the deep net loss in Q3 2024?

The deterioration in EPS to **(0.06)** in Q3 2024 was primarily due to the company reporting a **net loss of $(8.9) million** (compared to a net income of **$10.8 million** in Q3 2023) and incurring **$13.2 million** in acquisition-related expenses. Increased selling, general, and administrative expenses—partly driven by macroeconomic challenges and the integration of the acquired Sterling Check Corp.—further contributed to the decline in profitability and ultimately led to the lower basic net income per share.  **[0000950170-24-124503_fa-ex99_1.htm:8]** **[0000950170-24-124503_fa-ex99_1.htm:0]** **[0000950170-24-125426_fa-20240930.htm:33]** **[0000950170-24-124503_fa-ex99_1.htm:11]** 

How did EPS deteriorate to (0.06) in Q3 2024?

ed7d35f30cde4d7fc4af763c97cf1fa85b1840201004b373a6a5676e5e121c1d

Total Revenue (USD, thousands)

Cost of Goods Sold (COGS) (USD, thousands)

SG&A (USD, thousands)

R&D (USD, thousands)

Depreciation and Amortization (USD, thousands)

Interest Expense (USD, thousands)

Operating Income (EBIT) (USD, thousands)

Net Income (USD, thousands)

EPS - Basic (USD)

EPS - Diluted (USD)

faa419ed1c770fbcfffd0fac231eb514f9ff5c91c43b9a6a37b6ded101be156d

Americas

International

Eliminations

Total Revenue

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- Eliminations

Sterling

a562e8e1064d8b0bd41503b5d4d9966a4fffc4c15b8b00970806290fcc28cc4b

First Advantage Corp (FA)

Financials