First Advantage Corporation Reports Operating Results for the Third Quarter of 2006

First Advantage Corporation, a global risk mitigation and business solutions provider, today announced operating results for the third quarter of 2006.

First Advantage reported net income of $18.6 million (32 cents per diluted share) for the quarter ended Sept. 30, 2006, compared with net income of $16.0 million (30 cents per diluted share) for the quarter ended Sept. 30, 2005.

The company adopted the provisions of FAS 123R, “Share Based Payment,” as of Jan. 1, 2006, using the modified prospective application method. Results of operations for the quarter ending Sept. 30, 2006, include share-based compensation expense of $2.5 million, which reduced basic and diluted earnings per share by 3 cents.

Revenues for the company were $212.0 million and $169.9 million for the quarters ended Sept. 30, 2006, and 2005, respectively.

Earnings before interest, taxes, depreciation and amortization, minority interest and share-based compensation expense (adjusted EBITDA) were $47.3 million and $35.2 million for the quarters ended Sept. 30, 2006, and 2005, respectively, representing a 34.4 percent increase.

“We are pleased with our performance in the third quarter, as we continue to benefit from our cross-sell strategies in the Employer Services segment. We are also encouraged by the results of our Lender Services segment as we continue to gain market share despite a slowing home mortgage industry,” stated John Long, chief executive officer. “Additionally, we have seen improvements in our Investigative and Litigation Support Services segment as we expand our electronic discovery and computer forensics business, most recently through the acquisition of EvidentData, Inc., a company that will expand the geographical reach of First Advantage’s litigation support and enhance our electronic discovery capabilities.

“We are also pleased with our margin and EBITDA improvements. Operating margins increased from the third quarter of 2005 in four of our operating segments: Lender Services, Dealer Services, Employer Services, and most significantly in Investigative and Litigation Support Services. Adjusted EBITDA increased by 34 percent from the third quarter of last year,” stated Long.

Management estimates that diluted earnings per share, excluding the impact of an estimated securities gain of 7 cents per diluted share in connection with a follow on offering completed in Oct. 2006 by DealerTrack Holdings, Inc., an equity investee, will be in the range of 19 to 23 cents for the fourth quarter ending Dec. 31, 2006 (22 to 26 cents excluding share based compensation expense).