First Advantage(FA) - 2024 Q4 - Annual Results

Financial Performance - Full Year 2024 revenues reached $860.2 million, an increase from$ 763.8 million in 2023, representing a growth of 12.0%[6] - The company reported a net loss of $(110.3) million for the full year 2024, with a net loss margin of (12.8)%, impacted by$ 130.5 million in acquisition-related expenses[4] - Adjusted EBITDA for the full year 2024 was $249.3 million, with an Adjusted EBITDA margin of 29.0%[6] - For Q4 2024, revenues were$ 307.1 million, up from $202.6 million in Q4 2023, marking a growth of 51.5%[6] - The company incurred a net loss of$ (100.4) million in Q4 2024, with a net loss margin of (32.7)%[6] - Adjusted Net Income for the full year 2024 was $123.7 million, down from$ 145.8 million in 2023[6] Future Projections - The company expects full year 2025 revenues to be between $1.5 billion and$ 1.6 billion, with Adjusted EBITDA projected between $410 million and$ 450 million[3][10] - Adjusted Diluted Earnings Per Share for 2025 is guided to be between $0.86 and$ 1.03[10] Acquisition and Integration - First Advantage has updated its synergy target from $50 million to$ 70 million to a new range of $60 million to$ 70 million following the acquisition of Sterling[7] - The integration of Sterling is progressing well, with $20 million in run rate cost synergies already actioned[7] - The company incurred transaction and acquisition-related charges of approximately$ 93.2 million for the three months ended December 31, 2024, primarily due to the acquisition of Sterling[34] Assets and Liabilities - Total current assets increased to $475,993,000 as of December 31, 2024, up from$ 373,738,000 in 2023, reflecting a 27.4% growth[28] - Goodwill rose significantly to $2,124,528,000 in 2024 from$ 820,654,000 in 2023, indicating a substantial increase in acquisitions or business combinations[28] - First Advantage's total assets reached $3,922,893,000 as of December 31, 2024, compared to$ 1,630,654,000 in 2023, marking a 140.2% increase[28] - First Advantage's total liabilities increased to $2,615,854,000 in 2024 from$ 723,921,000 in 2023, indicating a 262.5% rise[28] Cash Flow and Expenses - The company reported cash flows from operating activities of $28,196,000 for the year ended December 31, 2024, a decrease from$ 162,820,000 in 2023[31] - Operating expenses for the three months ended December 31, 2024, totaled $387,798,000, a 123.9% increase from$ 173,181,000 in the same period of 2023[29] - Cash flows from operating activities for the three months ended December 31, 2024 were reported at $(85,666) thousand, compared to$ 56,740 thousand in the same period of 2023[39] Shareholder Information - The weighted average number of shares outstanding for basic calculations increased to 162,774,306 in Q4 2024 from 143,167,422 in Q4 2023[29] - The company reported a diluted net loss per share of $(0.62) for the three months ended December 31, 2024, compared to earnings of$ 0.10 per share in the same period of 2023[36] - The adjusted diluted earnings per share (Non-GAAP) for the three months ended December 31, 2024 was $0.18, down from$ 0.29 in the same period of 2023[36] Taxation - The effective tax rate for the three months ended December 31, 2024 was approximately 27.6%, compared to 21.2% for the same period in 2023[40] - The company had net operating loss carryforwards of approximately $15.3 million for federal income tax purposes as of December 31, 2024[40]