Benzinga | Nov 8, 2021 07:50AM EST

First Advantage Beats Q3 Estimates, Lifts FY21 Outlook; To Buy Two Screening Providers

* First Advantage Corp (NASDAQ:FA) reported third-quarter revenue growth of 41% year-over-year to $192.9 million, beating the consensus of $171.62 million.

* Adjusted EPS improved to $0.28 from $0.17 in 3Q20, beating the consensus of $0.19.

* The company reported income from operations of $24.4 million, compared to $5.3 million a year ago.

* Adjusted EBITDA was $63.94 million (+47.7% Y/Y), and the margin expanded by 160 bps to 33.2%.

* First Advantage generated $27.8 million of cash flow from operating activities during Q3. The company ended the Q3 with cash and equivalents of $276.6 million.

* FY21 Outlook: First Advantage expects revenues of $680 million--$686 million vs. consensus of $649.25 million (prior expectation $640 million --$650 million). It sees Adjusted EBITDA of $208 million--$211 million (prior view $186 million--$190 million), and Adjusted net income of $125 million--$128 million (prior $110 million -- $113 million).

* First Advantage also issued a press release that it agreed to purchase Corporate Screening Services, Inc., a healthcare and higher education-focused screening and compliance solutions provider in North America. Additionally, signed a definitive purchase agreement to buy MultiLatin Advisors, S.A. de C.V., a screening and verifications provider in Latin America.

* Financial terms were not disclosed for both the transactions and are expected to close in the fourth quarter of 2021.

* Price Action: FA shares closed higher by 3.09% at $21.05 on Friday.