TORONTO, Dec. 15, 2025 (GLOBE NEWSWIRE) -- Fountain Asset Corp. (TSXV:FA) (“Fountain” or the “Company”) wishes to announce that the board of directors of the Company has approved the granting of 1,550,000 restricted share units (“RSUs”) pursuant to the Company’s equity incentive plan to certain directors and officers of the Company subject to TSXV approval. About Fountain Asset Corp. Fountain Asset Corp. is a merchant bank which provides equity financing, bridge loan services (asset back/collateralized fin ...

Group 1 - First Advantage (FA) shares have increased by 5.1% over the past four weeks, closing at $13.82, with a mean price target of $17.43 indicating a potential upside of 26.1% [1] - The mean estimate consists of seven short-term price targets with a standard deviation of $1.4, where the lowest estimate is $16.00 (15.8% increase) and the highest is $20.00 (44.7% increase) [2] - Analysts show strong agreement on FA's ability to report better earnings, with a positive trend in earnings estimate revisions correlating with potential stock price increases [4][11] Group 2 - The Zacks Consensus Estimate for FA has increased by 8.5% due to one upward revision in earnings estimates over the last 30 days, with no negative revisions [12] - FA holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential upside [13] - While consensus price targets may not be reliable for predicting exact gains, they can provide a directional guide for price movement [14]

Core Insights - Fountain Asset Corp. reported financial results for Q3 and the nine months ended September 30, 2025, highlighting significant gains and a strong financial position [1][6]. Q3 2025 Highlights - The company realized $1.48 million in gains from the sale of portfolio investments, benefiting from increased trading prices in the technology and mining sectors [4]. - Net assets were valued at $8.56 million or $0.13 per share, an increase from $5.51 million or $0.09 per share at the end of 2024, representing a 44% increase year to date on a per share basis [5][8]. - The net comprehensive loss was reduced to $0.03 million compared to a loss of $0.71 million in Q3 2024 [8]. - Total gains from investment activity amounted to $0.42 million, contrasting with losses of $0.43 million in Q3 2024 [8]. - Operating expenses were maintained at a low level of $0.14 million, down from $0.26 million in Q3 2024 [8]. Nine Months Ended September 30, 2025 Highlights - The company reported a net comprehensive income of $3.03 million, a significant turnaround from a net comprehensive loss of $1.65 million for the same period in 2024 [8]. - Total income from investment activity reached $4.07 million, compared to a total loss of $0.98 million for the nine months ended September 30, 2024 [8]. - Net realized gains on the sale of portfolio investments were $3.24 million, compared to net realized losses of $0.08 million in the prior year [8]. - Net unrealized gains on portfolio investments were $0.74 million, contrasting with net unrealized losses of $0.90 million for the same period in 2024 [8]. - Total expenses for the nine months were $1.02 million, up from $0.67 million in the previous year [8]. Company Overview - Fountain Asset Corp. operates as a merchant bank, providing equity financing, bridge loan services, and strategic financial consulting across various industries, including marijuana, oil & gas, mining, real estate, manufacturing, retail, financial services, and biotechnology [9].

Summary of First Advantage Conference Call Company Overview - **Company**: First Advantage (NasdaqGS:FA) - **Industry**: Information Services, specifically focused on background screening and employment verification Key Points and Arguments Macro Environment and Hiring Trends - First Advantage primarily serves enterprise-sized customers, defined as those with screening values of $500,000 or more, which are hiring consistently unlike small to mid-sized businesses [2][3] - The company operates in key verticals such as healthcare, retail, e-commerce, transportation, and logistics, which are particularly relevant during peak hiring seasons [2][4] - Despite negative base growth of approximately 1.8% in Q3, this represents an improvement from earlier in the year (negative 5.5% in Q1 and negative 3.7% in Q2), indicating stability in the hiring markets served [3] Financial Performance and Growth Projections - Fourth quarter guidance indicates an expected organic growth of 6%, up from 4% in Q3, driven by improved retention rates (97%) and successful upsell and cross-sell initiatives [7][8] - The company has signed significant contracts in financial services, healthcare, and retail, which are expected to contribute to revenue in Q4 [9][10] - The overall revenue model is supported by a strong retention rate and a focus on controllable growth, with a historical upsell and cross-sell growth rate of 9% [5][6] Product Development and Market Differentiation - The introduction of the digital identity solution is a key differentiator, addressing the rising issue of fake credentials and enhancing the background screening process [15][16] - The demand for richer background checks (package density) is increasing as companies seek to manage risks associated with employee interactions with third parties [19] - First Advantage has proprietary databases, including a National Criminal Record File with over 700 million records, which enhances their competitive edge and margin benefits [20][22] AI and Technology Integration - The company is leveraging AI to improve operational efficiency and customer service, transitioning from traditional customer care methods to AI-enabled solutions [26][42] - AI is seen as a strategic tool for enhancing internal processes and maintaining compliance in a heavily regulated environment [27][29] Competitive Landscape - Following the merger with Sterling, First Advantage maintains a market share of approximately 25%, with a strong focus on enterprise clients and a diverse vertical approach [45][46] - The competitive environment remains stable, with a mix of larger national players and smaller regional firms, but First Advantage's scale and product differentiation position it favorably [46] International Growth - International markets grew by 11% in Q3, driven by recovery in hiring levels and strong demand in regions like the U.K., Australia, and India [35][36] - The company benefits from a trend towards domestic production and increased corporate screening standards in rapidly maturing markets [36] Financial Guidance and Capital Allocation - Midterm targets include achieving upper single-digit growth rates, with a focus on customer retention and product differentiation to drive profitability [38][39] - The company aims to reduce leverage to a target of 2-3 times, with a proactive approach to deleveraging and capital allocation focused on integration and growth [47][48] Additional Important Insights - The integration of Sterling has provided revenue synergies and product enhancements, allowing for a more comprehensive service offering to clients [32][34] - The company is optimistic about future growth opportunities stemming from both existing and new product lines, particularly in the context of evolving market demands [18][34]

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Summary of First Advantage Conference Call Company Overview - **Company**: First Advantage (NasdaqGS:FA) - **Event**: 2025 Conference at JPMorgan's Ultimate Services Investor Conference - **Date**: November 18, 2025 Key Points Industry Context - First Advantage operates in the background screening industry, which has seen significant consolidation, particularly with the acquisition of Sterling, which is described as a merger-like integration [3][4]. Acquisition and Integration - The acquisition of Sterling has resulted in a retention rate increase from 96% to 97% within a year, which is notable in an industry typically facing customer attrition during mergers [3][4]. - The integration strategy focused on preserving customer experience and avoiding forced migrations to new platforms, which has been a critical success factor [4][5]. - The company has successfully achieved synergies by optimizing back-end operations without altering the front-end customer experience [5][6]. Financial Performance - First Advantage's net leverage ratio is currently at 4.2 times, with a target to reduce it to approximately 3 times by the end of 2026 [9][12]. - The company reported a 4% revenue growth in Q3, with a significant improvement in cash flow, reaching $72 million in GAAP operating cash flow [11][12]. - The company has been focusing on upselling and cross-selling, achieving around 9% growth in these areas [10][11]. Market Dynamics - The hiring market is stabilizing, with base growth improving from negative 5.5% in Q1 to only 1.8% negative in Q3 [10][12]. - The company has a strong pipeline of new contracts, including significant wins in various sectors such as healthcare and retail [24][30]. Customer Engagement and Product Offering - First Advantage's core services, including background screening and compliance services, have been well-received, with new contracts reflecting a diverse competitive landscape [28][29]. - The company is focusing on expanding its service offerings, particularly in digital identity and compliance, which are becoming increasingly relevant in the current market [36][41]. Future Outlook - The company anticipates continued growth driven by a strong pipeline and high retention rates, with expectations to celebrate the completion of integration and realization of synergies by the end of 2026 [61][62]. - The next phase, referred to as FA 5.0, will likely focus on enhancing digital identity solutions and improving customer knowledge [63]. AI and Labor Market Impact - AI is a significant topic among clients, particularly in administrative functions, but it has not materially impacted First Advantage's core revenue streams [44][46]. - The company acknowledges the ongoing discussions around AI's impact on labor demand but emphasizes that its core hiring sectors remain stable [50][55]. Conclusion - First Advantage is positioned for growth with a strong retention rate, successful integration of Sterling, and a robust pipeline of new contracts. The focus on customer experience and innovative service offerings, particularly in digital identity, will be key drivers for future success [31][62].

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Revenue Performance - First Advantage generated revenues of $409.2 million for the three months ended September 30, 2025, compared to $199.1 million for the same period in 2024, representing a 105.5% increase[116] - For the nine months ended September 30, 2025, revenues reached $1,154.4 million, up from $553.1 million in the same period of 2024, marking a 108.5% increase[116] - Revenues for Q3 2025 were $409.2 million, a 105.5% increase from $199.1 million in Q3 2024[134] - Revenues for the first nine months of 2025 reached $1,154.4 million, up 108.7% from $553.1 million in the same period of 2024[135] - Total revenues for the three months ended September 30, 2025, reached $409.2 million, up 105.7% from $199.1 million in 2024[176] - Total revenues for the nine months ended September 30, 2025, were $1.15 billion, up 108.5% from $553.1 million in 2024[176] Cost and Expenses - Cost of services for Q3 2025 was $222.0 million, a 120.1% increase from $100.9 million in Q3 2024[137] - Cost of services for the first nine months of 2025 totaled $622.4 million, a 122.0% increase from $280.4 million in the same period of 2024[140] - Cost of services as a percentage of revenue was 54.3% in Q3 2025, compared to 50.7% in Q3 2024[139] - Product and technology expense for Q3 2025 was $25.1 million, a 94.7% increase from $12.9 million in Q3 2024[142] - Selling, general, and administrative expenses for the three months ended September 30, 2025, were $57.5 million, an increase of $11.4 million or 24.8% compared to the same period in 2024[145] - For the nine months ended September 30, 2025, selling, general, and administrative expenses increased by $55.2 million or 44.0%, totaling $180.5 million compared to $125.4 million in 2024[147] - Depreciation and amortization for the three months ended September 30, 2025, was $62.3 million, an increase of $32.1 million or 106.4% compared to $30.2 million in 2024[149] - Interest expense, net for the three months ended September 30, 2025, was $40.0 million, an increase of $22.9 million or 132.9% compared to $17.2 million in 2024[153] Net Income and Adjusted Metrics - Net income for the three months ended September 30, 2025, was $2.6 million, an increase of $11.5 million compared to a net loss of $(8.9) million in 2024[162] - Adjusted EBITDA for the three months ended September 30, 2025, was $118.5 million, representing an Adjusted EBITDA Margin of 29.0%, compared to $64.0 million and 32.2% in 2024[169] - For the nine months ended September 30, 2025, Adjusted EBITDA was $324.6 million, with an Adjusted EBITDA Margin of 28.1%, compared to $166.4 million and 30.1% in 2024[170] - Net loss for the nine months ended September 30, 2025, was $(38.3) million, an increase of $(28.4) million compared to $(9.9) million in 2024[164] - Adjusted Net Income for the three months ended September 30, 2025, was $52.3 million, a 37.7% increase from $38.0 million in the same period of 2024[181] - Adjusted Net Income for the nine months ended September 30, 2025, was $129.8 million, a 38.7% increase from $93.5 million in 2024[183] - Adjusted Diluted Earnings Per Share for the three months ended September 30, 2025, was $0.30, compared to $0.26 for the same period in 2024[182] Acquisition and Integration - The acquisition of Sterling Check Corp. on October 31, 2024, enhances First Advantage's capabilities and expands service offerings in background and identity verification[111] - The company recognized $199.4 million in revenues from Sterling, contributing 100.1% to Q3 2025 revenues due to the acquisition completed on October 31, 2024[136] - Sterling personnel expenses recognized after the Sterling Acquisition amounted to $19.8 million, with approximately $1.2 million related to cash compensation due to the conversion of Sterling equity awards[144] - The Sterling Acquisition contributed approximately $1.4 million and $7.5 million in transaction-related expenses for the three and nine months ended September 30, 2025, respectively[173] - Integration and restructuring charges related to the Sterling Acquisition amounted to approximately $3.8 million for the three months ended September 30, 2025[174] - Integration and restructuring charges related to the Sterling Acquisition were approximately $3.8 million and $15.4 million for the three and nine months ended September 30, 2025, respectively[192] Cash Flow and Debt - As of September 30, 2025, the company had $216.8 million in cash and cash equivalents and $250.0 million available under its revolving credit facility[195] - Total debt outstanding as of September 30, 2025, was $2,139.5 million[195] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $129.2 million, an increase of $15.3 million compared to $113.9 million for the same period in 2024[203] - Net cash used in investing activities increased to $37.3 million for the nine months ended September 30, 2025, compared to $21.7 million for the same period in 2024[204] - Net cash used in financing activities was $(45.0) million for the nine months ended September 30, 2025, primarily due to a $45.5 million increase in principal repayments on the term loan[205] Tax and Regulatory Changes - The enactment of the One Big Beautiful Bill Act (OBBBA) introduces significant changes to the U.S. corporate tax regime, which may impact future taxable income and the effective tax rate[122] - The effective tax rates for the three and nine months ended September 30, 2025, were approximately 25.1% and 25.3%, respectively[193] Market Conditions and Customer Base - Approximately 86% of revenues for the nine months ended September 30, 2025, were generated in the United States, with the remaining 14% from international markets[116] - Current macroeconomic conditions, including elevated interest rates and inflation, are impacting customer demand and hiring activity, which may affect revenue growth[120] - The company anticipates that evolving consumer trends and labor market dynamics may influence future seasonality in hiring and demand for services[117] - First Advantage's diversified customer base and focus on innovative solutions contribute to the stability of its business and long-term financial performance[124] - The company has 80,000 customers globally, including multinational and mid-sized companies, utilizing its comprehensive suite of HR technology solutions[112] Special Dividends - The company declared a one-time special cash dividend of $1.50 per share on August 8, 2023, paid on August 31, 2023[196]

Core Insights - First Advantage's shares increased by 9.8% following the release of third-quarter financial results that exceeded analyst expectations and provided a positive full-year outlook [1] - The company reported quarterly revenue of $409.2 million, marking a 105% year-on-year increase, and adjusted earnings of $0.30 per share, both surpassing Wall Street forecasts [1] - First Advantage raised its full-year 2025 guidance, expecting revenues to reach a midpoint of $1.55 billion and adjusted earnings per share at a midpoint of $1.00, indicating management's confidence in future performance [1] Market Reaction - The stock has shown volatility, with 14 movements greater than 5% in the past year, suggesting that while the recent news is significant, it may not fundamentally alter market perception of the company [3] - The stock has declined 22.3% since the beginning of the year and is currently trading at $14.33 per share, which is 28.4% below its 52-week high of $20.01 from February 2025 [5]

Financial Data and Key Metrics Changes - The company reported Q3 revenues of $409 million, representing a year-over-year increase of 3.8% on a pro forma basis, with adjusted EBITDA of $118.5 million and an adjusted EBITDA margin of 29%, which is an improvement of 130 basis points compared to the previous year [25][26] - Adjusted diluted EPS was $0.30, reflecting a 15.4% increase year-over-year, driven by greater scale and lower interest expenses [26][34] - The retention rate improved to 97%, up from 96% in Q2, indicating strong customer satisfaction and loyalty [7][25] Business Line Data and Key Metrics Changes - The company achieved 9% growth in combined upsell, cross-sell, and new logo revenues in Q3, with a strong performance across various verticals [25][29] - The healthcare vertical experienced a slight decline due to uncertainties with Medicare and Medicaid funding, but this was offset by growth in other sectors such as retail, e-commerce, and transportation [9][10] - The company signed a significant five-year contract renewal with a top customer, expected to generate over $100 million in total revenues, with a portion guaranteed through minimum annual commitments [7][45] Market Data and Key Metrics Changes - International revenue growth continued for the sixth consecutive quarter, with the U.K. showing strong performance and improving trends in the APAC region [10] - The macroeconomic environment remains challenging, with hiring growth consistently flat, influenced by factors such as government policies and economic uncertainty [10][11] - October order volumes showed positive trends, aligning with Q3 performance, indicating stable hiring activity among enterprise customers [52][53] Company Strategy and Development Direction - The company is executing its FA 5.0 strategy, focusing on enhancing its product offerings and improving client retention through technology and customer-centric approaches [6][20] - The integration of the Sterling acquisition is progressing ahead of schedule, with increased synergy targets raised from $50 million to a range of $65-$80 million [19][28] - The company is strategically investing in AI and digital identity solutions to address emerging risks and enhance customer value propositions [12][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term industry dynamics, particularly in healthcare, despite current challenges [10][11] - The company anticipates that base growth will remain slightly negative into 2026, but expects overall revenue growth through upsell, cross-sell, and new logos [11][32] - Management highlighted the importance of maintaining a flexible cost structure and a diverse revenue mix to navigate macroeconomic uncertainties [37] Other Important Information - The company is focused on leveraging AI to enhance operational efficiency and customer experience, positioning itself as a leader in the digital identity space [15][24] - The company has hosted multiple user conferences globally to engage with customers and gather insights on their needs and industry risks [18] Q&A Session Summary Question: How should we think about upsell/cross-sell and new logos going into Q4 and 2026? - Management expects Q4 contributions from new logos and upsell/cross-sell to be in line with or better than historical averages, with a strong pipeline of large deals [39][40] Question: Do you see traditional employment background checks being disintermediated by AI? - Management views AI as a beneficial tool rather than a competitive threat, emphasizing its role in enhancing digital identity checks and reducing identity fraud risks [42][44] Question: Can you provide more details on the $100 million contract renewal? - This contract includes guaranteed minimums, which management sees as a trend for future contracts, aiming to increase stickiness with clients [45][46] Question: What are the expectations for synergy realization in 2026? - Management anticipates significant synergy realization over the next year, with a target of $65-$80 million, and expects EPS accretion to continue as synergies are realized [58][59]