UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Item 2.02. Results of Operations and Financial Condition.
On November 12, 2024, First Advantage Corporation issued a press release announcing its financial results for the quarter ended September 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein.
The information furnished under this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that section and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as otherwise expressly stated by specific reference in any such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. |
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Description |
99.1 |
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Press Release of First Advantage Corporation dated November 12, 2024. |
104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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FIRST ADVANTAGE CORPORATION |
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Date: |
November 12, 2024 |
By: |
/s/ Steven Marks |
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Name: Steven Marks |
Exhibit 99-1
First Advantage Reports Third Quarter 2024 Results
Completed Acquisition of Sterling on October 31; Maintains Standalone Full-Year 2024 Guidance and Issues Combined Company Guidance including Sterling
Third Quarter 2024 Highlights1
Maintaining First Advantage Standalone Full-Year 2024 Guidance and Issuing Combined Company Guidance including Sterling
ATLANTA, November 12, 2024 – First Advantage Corporation (NASDAQ: FA), a leading global provider of employment background screening, identity, and verification solutions, today announced financial results for the third quarter ended September 30, 2024.
Key Financials
(Amounts in millions, except per share data and percentages)
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Three Months Ended September 30, |
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2024 |
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2023 |
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Change |
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Revenues |
$ |
199.1 |
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$ |
200.4 |
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(0.6 |
)% |
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Income from operations |
$ |
9.1 |
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$ |
23.2 |
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(60.7 |
)% |
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Net (loss) income |
$ |
(8.9 |
) |
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$ |
10.8 |
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(182.2 |
)% |
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Net (loss) income margin |
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(4.4 |
)% |
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5.4 |
% |
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NA |
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Diluted net (loss) income per share |
$ |
(0.06 |
) |
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$ |
0.07 |
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(185.7 |
)% |
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Adjusted EBITDA1 |
$ |
64.0 |
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$ |
64.8 |
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(1.1 |
)% |
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Adjusted EBITDA Margin1 |
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32.2 |
% |
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32.3 |
% |
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NA |
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Adjusted Net Income1 |
$ |
38.0 |
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$ |
40.0 |
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(5.1 |
)% |
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Adjusted Diluted Earnings Per Share1 |
$ |
0.26 |
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$ |
0.28 |
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(7.1 |
)% |
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1 Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Adjusted Diluted Earnings Per Share are non-GAAP measures. Please see the schedules accompanying this earnings release for a reconciliation of these measures to their most directly comparable respective GAAP measures.
Note: "NA" indicates not applicable information.
“We were thrilled to have closed on the acquisition of Sterling on October 31,” said Scott Staples, Chief Executive Officer. “We officially welcomed the Sterling team on day 1 and are moving forward expeditiously to execute our integration plans, action our synergy targets, and accelerate our strategic execution, all while ensuring a seamless experience for all customers. We have already actioned over $10 million in run rate cost synergies, with line of sight to actioning an expected range of $50 million to $70 million of run rate synergies within 2 years post-close. In tandem with our work on the transaction, we have been developing an updated strategy that is heavily focused on rapidly growing and innovating our business through new technology, AI, and product initiatives, which includes adjustments to our organizational structure to optimize our operations as a combined company."
“In the third quarter, we again delivered solid financial results, with robust Adjusted EBITDA margins over 32% and strong operating cash flow. The combination of upsell, cross-sell, and new logo growth rates performed in line with our historical revenue growth algorithm, and our team continued to demonstrate outstanding execution with important new logo and upsell bookings in the quarter. Additionally, during the quarter, we released our 2023 Sustainability Report, highlighting our continued progress and commitments to employee engagement and inclusion, corporate responsibility, and environmental sustainability,” Staples concluded.
Full-Year 2024 Guidance
“We are maintaining our full-year 2024 standalone guidance and issuing new guidance to include Sterling for November and December, including the benefits of actioned synergies and the estimated capital structure impacts of the transaction,” commented Steven Marks, Chief Financial Officer. “We are pleased to have delivered sequential quarter-over-quarter growth in revenues, Adjusted EBITDA, and Adjusted EBITDA Margin, with margins of 32.2%. We expect sequential quarter-over-quarter growth in revenues and Adjusted EBITDA for First Advantage standalone again in Q4. Looking forward, we plan to maintain our product and customer focus while endeavoring to conduct a smooth integration, maintain customer continuity, action synergies, and reduce net leverage.”
The following table summarizes our full-year 2024 guidance.
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First Advantage Standalone As of November 12, 2024 |
Combined Company3 As of November 12, 2024 |
Revenues |
$750 million – $800 million |
$858 million – $918 million |
Adjusted EBITDA2 |
$228 million – $248 million |
$250 million – $274 million |
Adjusted Net Income2 |
$127 million – $142 million |
$122 million – $140 million |
Adjusted Diluted Earnings Per Share2 |
$0.88 – $0.98 |
$0.83 – $0.95 |
2 A reconciliation of the foregoing guidance for the non-GAAP metrics of Adjusted EBITDA and Adjusted Net Income to GAAP net (loss) income and Adjusted Diluted Earnings Per Share to GAAP diluted net (loss) income per share cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results.
3 “Combined Company” guidance represents “First Advantage Standalone” guidance adjusted for the impacts of Sterling results for November and December 2024, including the benefits of actioned synergies and the estimated capital structure impacts of the transaction.
Actual results may differ materially from First Advantage’s full-year 2024 guidance as a result of, among other things, the factors described under “Forward-Looking Statements” below.
Conference Call and Webcast Information
First Advantage will host a conference call to review its third quarter 2024 results today, November 12, 2024, at 8:30 a.m. ET.
To participate in the conference call, please dial 800-445-7795 (domestic) or 785-424-1699 (international) approximately ten minutes before the 8:30 a.m. ET start. Please mention to the operator that you are dialing in for the First Advantage third quarter 2024 earnings call or provide the conference code FA3Q24. The call will also be webcast live on the Company’s investor relations website at https://investors.fadv.com under the “News & Events” and then “Events & Presentations” section, where related presentation materials will be posted prior to the conference call.
Following the conference call, a replay of the webcast will be available on the Company’s investor relations website, https://investors.fadv.com. Alternatively, the live webcast and subsequent replay will be available at https://event.on24.com/wcc/r/4698641/CBB927EE7939B018AE38DEBC57EF3185.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, our operations and financial performance. Forward-looking statements include all statements that are not historical facts. These forward-looking statements relate to matters such as our industry, business strategy, goals, and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources, and other financial and operating information. In some cases, you can identify these forward-looking statements by the use of words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “future,” “will,” “seek,” “foreseeable,” "target," “guidance,” the negative version of these words, or similar terms and phrases.
These forward-looking statements are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Such risks and uncertainties include, but are not limited to, the following:
For additional information on these and other factors that could cause First Advantage’s actual results to differ materially from expected results, please see our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (the “SEC”), as such factors may be updated from time to time in our filings with the SEC, which are or will be accessible on the SEC’s website at www.sec.gov. The forward-looking statements included in this press release are made only as of the date of this press release, and we undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by law.
Non-GAAP Financial Information
This press release contains “non-GAAP financial measures” that are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Specifically, we make use of the non-GAAP financial measures “Adjusted EBITDA,” “Adjusted EBITDA Margin,” “Adjusted Net Income,” “Adjusted Diluted Earnings Per Share,” “Constant Currency Revenues,” and “Constant Currency Adjusted EBITDA.”
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted Earnings Per Share, Constant Currency Revenues, and Constant Currency Adjusted EBITDA have been presented in this press release as supplemental measures of financial performance that are not required by or presented in accordance with GAAP because we believe they assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management believes these non-GAAP measures are useful to investors in highlighting trends in our operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate, and capital investments. Management uses Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted Earnings Per Share, Constant Currency Revenues, and Constant Currency Adjusted EBITDA to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, to establish discretionary annual incentive compensation, and to compare our performance against that of peer companies using similar measures. Management supplements GAAP results with non-GAAP financial measures to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone.
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted Earnings Per Share, Constant Currency Revenues, and Constant Currency Adjusted EBITDA are not recognized terms under GAAP and should not be considered as an alternative to net (loss) income as a measure of financial performance or cash provided by operating activities as a measure of liquidity, or any other performance measure derived in accordance with GAAP. The presentations of these measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company.
We define Adjusted EBITDA as net (loss) income before interest, taxes, depreciation, and amortization, and as further adjusted for loss on extinguishment of debt, share-based compensation, transaction and acquisition-related charges, integration and restructuring charges, and other non-cash charges. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenues. We define Adjusted Net Income for a particular period as net (loss) income before taxes adjusted for debt-related costs, acquisition-related depreciation and amortization, share-based compensation, transaction and acquisition-related charges, integration and restructuring charges, and other non-cash charges, to which we then apply the related effective tax rate. We define Adjusted Diluted Earnings Per Share as Adjusted Net Income divided by adjusted weighted average number of shares outstanding—diluted. We define Constant Currency Revenues as current period revenues translated using prior-year period exchange rates. We define Constant Currency Adjusted EBITDA as current period Adjusted EBITDA translated using prior-year period exchange rates. For reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures, see the reconciliations included at the end of this press release. Numerical figures included in the reconciliations have been subject to rounding adjustments. Accordingly, numerical figures shown as totals in various tables may not be arithmetic aggregations of the figures that precede them.
About First Advantage
First Advantage (NASDAQ: FA) is a leading global provider of employment background screening, identity, and verification solutions. Enabled by its proprietary technology, First Advantage delivers innovative services and insights that help customers mitigate risk and hire the best talent: employees, contractors, contingent workers, tenants, and drivers. Headquartered in Atlanta, Georgia, First Advantage performs screens in over 200 countries and territories. For more information about how to hire smarter and onboard faster with First Advantage, visit the Company’s website at https://fadv.com/.
Investor Contact
Stephanie Gorman
Vice President, Investor Relations
Investors@fadv.com
(888) 314-9761
Condensed Financial Statements
First Advantage Corporation
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands, except share and per share amounts) |
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September 30, 2024 |
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December 31, 2023 |
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ASSETS |
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CURRENT ASSETS |
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Cash and cash equivalents |
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$ |
307,392 |
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$ |
213,774 |
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Restricted cash |
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|
88 |
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|
138 |
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Accounts receivable (net of allowance for doubtful accounts of $1,284 and $1,036 at September 30, 2024 and December 31, 2023, respectively) |
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143,020 |
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|
142,690 |
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Prepaid expenses and other current assets |
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13,667 |
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13,426 |
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Income tax receivable |
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2,808 |
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|
3,710 |
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Total current assets |
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466,975 |
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|
373,738 |
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Property and equipment, net |
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55,403 |
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|
79,441 |
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Goodwill |
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|
822,277 |
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|
820,654 |
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Trade names, net |
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60,990 |
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|
66,229 |
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Customer lists, net |
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|
238,821 |
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|
|
275,528 |
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Other intangible assets, net |
|
|
1,898 |
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|
|
2,257 |
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Deferred tax asset, net |
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|
3,172 |
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|
|
2,786 |
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Other assets |
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|
7,598 |
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|
10,021 |
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TOTAL ASSETS |
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$ |
1,657,134 |
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$ |
1,630,654 |
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LIABILITIES AND EQUITY |
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CURRENT LIABILITIES |
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Accounts payable |
|
$ |
71,108 |
|
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$ |
47,024 |
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Accrued compensation |
|
|
18,687 |
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|
16,379 |
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Accrued liabilities |
|
|
22,962 |
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|
|
16,162 |
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Current portion of operating lease liability |
|
|
2,566 |
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|
|
3,354 |
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Income tax payable |
|
|
3,534 |
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|
264 |
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Deferred revenues |
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2,495 |
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|
1,856 |
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Total current liabilities |
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121,352 |
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85,039 |
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Long-term debt (net of deferred financing costs of $4,880 and $6,268 at September 30, 2024 and December 31, 2023, respectively) |
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|
559,844 |
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558,456 |
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Deferred tax liability, net |
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48,181 |
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71,274 |
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Operating lease liability, less current portion |
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4,340 |
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5,931 |
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Other liabilities |
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2,703 |
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|
3,221 |
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Total liabilities |
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736,420 |
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723,921 |
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EQUITY |
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Common stock - $0.001 par value; 1,000,000,000 shares authorized, 145,558,948 and 145,074,802 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively |
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|
146 |
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|
145 |
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Additional paid-in-capital |
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998,707 |
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977,290 |
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Accumulated deficit |
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(59,442 |
) |
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(49,545 |
) |
Accumulated other comprehensive loss |
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(18,697 |
) |
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(21,157 |
) |
Total equity |
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920,714 |
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|
906,733 |
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TOTAL LIABILITIES AND EQUITY |
|
$ |
1,657,134 |
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$ |
1,630,654 |
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First Advantage Corporation
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income
(Unaudited)
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Three Months Ended September 30, |
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(in thousands, except share and per share amounts) |
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2024 |
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2023 |
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REVENUES |
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$ |
199,119 |
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$ |
200,364 |
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OPERATING EXPENSES: |
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Cost of services (exclusive of depreciation and amortization below) |
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100,879 |
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101,410 |
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Product and technology expense |
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12,909 |
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13,107 |
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Selling, general, and administrative expense |
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46,050 |
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30,217 |
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Depreciation and amortization |
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30,168 |
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32,419 |
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Total operating expenses |
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190,006 |
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177,153 |
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INCOME FROM OPERATIONS |
|
|
9,113 |
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|
23,211 |
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OTHER EXPENSE, NET: |
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Interest expense, net |
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17,191 |
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|
7,557 |
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Total other expense, net |
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17,191 |
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|
7,557 |
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(LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES |
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|
(8,078 |
) |
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|
15,654 |
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Provision for income taxes |
|
|
782 |
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|
|
4,881 |
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NET (LOSS) INCOME |
|
$ |
(8,860 |
) |
|
$ |
10,773 |
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|
|
|
|
|
|
|
||
Foreign currency translation income (loss) |
|
|
5,531 |
|
|
|
(1,610 |
) |
COMPREHENSIVE (LOSS) INCOME |
|
$ |
(3,329 |
) |
|
$ |
9,163 |
|
|
|
|
|
|
|
|
||
NET (LOSS) INCOME |
|
$ |
(8,860 |
) |
|
$ |
10,773 |
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Basic net (loss) income per share |
|
$ |
(0.06 |
) |
|
$ |
0.08 |
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Diluted net (loss) income per share |
|
$ |
(0.06 |
) |
|
$ |
0.07 |
|
Weighted average number of shares outstanding - basic |
|
|
144,096,312 |
|
|
|
143,231,707 |
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Weighted average number of shares outstanding - diluted |
|
|
144,096,312 |
|
|
|
144,733,357 |
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First Advantage Corporation
Condensed Consolidated Statements of Cash Flows
(Unaudited)
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Nine Months Ended September 30, |
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(in thousands) |
|
2024 |
|
|
2023 |
|
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CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
||
Net (loss) income |
|
$ |
(9,907 |
) |
|
$ |
22,480 |
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
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|
|
|
|
|
||
Depreciation and amortization |
|
|
89,968 |
|
|
|
96,341 |
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Amortization of deferred financing costs |
|
|
1,388 |
|
|
|
1,362 |
|
Bad debt expense |
|
|
92 |
|
|
|
134 |
|
Deferred taxes |
|
|
(23,115 |
) |
|
|
(8,723 |
) |
Share-based compensation |
|
|
19,303 |
|
|
|
10,449 |
|
Loss on foreign currency exchange rates |
|
|
— |
|
|
|
26 |
|
(Gain) loss on disposal of fixed assets and impairment of ROU assets |
|
|
(272 |
) |
|
|
1,724 |
|
Change in fair value of interest rate swaps |
|
|
(1,006 |
) |
|
|
(2,201 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
(151 |
) |
|
|
(12,162 |
) |
Prepaid expenses and other assets |
|
|
1,184 |
|
|
|
8,661 |
|
Accounts payable |
|
|
23,115 |
|
|
|
531 |
|
Accrued compensation and accrued liabilities |
|
|
9,917 |
|
|
|
(8,389 |
) |
Deferred revenues |
|
|
591 |
|
|
|
87 |
|
Operating lease liabilities |
|
|
(722 |
) |
|
|
(1,134 |
) |
Other liabilities |
|
|
(673 |
) |
|
|
(198 |
) |
Income taxes receivable and payable, net |
|
|
4,150 |
|
|
|
(2,908 |
) |
Net cash provided by operating activities |
|
|
113,862 |
|
|
|
106,080 |
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CASH FLOWS FROM INVESTING ACTIVITIES |
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|
|
|
|
|
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Capitalized software development costs |
|
|
(20,384 |
) |
|
|
(18,781 |
) |
Purchases of property and equipment |
|
|
(1,386 |
) |
|
|
(1,798 |
) |
Other investing activities |
|
|
29 |
|
|
|
(231 |
) |
Acquisitions of businesses, net of cash acquired |
|
|
25 |
|
|
|
(41,122 |
) |
Net cash used in investing activities |
|
|
(21,716 |
) |
|
|
(61,932 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
||
Proceeds from issuance of common stock under share-based compensation plans |
|
|
5,862 |
|
|
|
4,089 |
|
Net settlement of share-based compensation plan awards |
|
|
(3,790 |
) |
|
|
(254 |
) |
Payments on deferred purchase agreements |
|
|
(703 |
) |
|
|
(703 |
) |
Cash dividends paid |
|
|
(211 |
) |
|
|
(217,683 |
) |
Payments on finance lease obligations |
|
|
(3 |
) |
|
|
(97 |
) |
Share repurchases |
|
|
— |
|
|
|
(55,917 |
) |
Net cash provided by (used in) financing activities |
|
|
1,155 |
|
|
|
(270,565 |
) |
Effect of exchange rate on cash, cash equivalents, and restricted cash |
|
|
267 |
|
|
|
(372 |
) |
Increase (decrease) in cash, cash equivalents, and restricted cash |
|
|
93,568 |
|
|
|
(226,789 |
) |
Cash, cash equivalents, and restricted cash at beginning of period |
|
|
213,912 |
|
|
|
391,796 |
|
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
307,480 |
|
|
$ |
165,007 |
|
|
|
|
|
|
|
|
||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: |
|
|
|
|
|
|
||
Cash paid for income taxes, net of refunds received |
|
$ |
19,168 |
|
|
$ |
21,006 |
|
Cash paid for interest |
|
$ |
36,174 |
|
|
$ |
33,787 |
|
NON-CASH INVESTING AND FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
Property and equipment acquired on account |
|
$ |
926 |
|
|
$ |
25 |
|
Non-cash property and equipment additions |
|
$ |
540 |
|
|
$ |
— |
|
Excise taxes on share repurchases incurred but not paid |
|
$ |
(10 |
) |
|
$ |
558 |
|
Dividends declared but not paid |
|
$ |
— |
|
|
$ |
701 |
|
Reconciliation of Consolidated Non-GAAP Financial Measures
|
|
Three Months Ended September 30, 2024 |
|
|||||||||||||
(in thousands) |
|
Americas |
|
|
International |
|
|
Eliminations |
|
|
Total revenues |
|
||||
Revenues, as reported (GAAP) |
|
$ |
174,905 |
|
|
$ |
26,624 |
|
|
$ |
(2,410 |
) |
|
$ |
199,119 |
|
Foreign currency translation impact(a) |
|
|
89 |
|
|
|
(216 |
) |
|
|
11 |
|
|
|
(116 |
) |
Constant currency revenues |
|
$ |
174,994 |
|
|
$ |
26,408 |
|
|
$ |
(2,399 |
) |
|
$ |
199,003 |
|
|
|
Three Months Ended September 30, |
|
|||||
(in thousands, except percentages) |
|
2024 |
|
|
2023 |
|
||
Net (loss) income |
|
$ |
(8,860 |
) |
|
$ |
10,773 |
|
Interest expense, net |
|
|
17,191 |
|
|
|
7,557 |
|
Provision for income taxes |
|
|
782 |
|
|
|
4,881 |
|
Depreciation and amortization |
|
|
30,168 |
|
|
|
32,419 |
|
Share-based compensation(a) |
|
|
9,504 |
|
|
|
4,790 |
|
Transaction and acquisition-related charges(b) |
|
|
13,218 |
|
|
|
1,571 |
|
Integration, restructuring, and other charges(c) |
|
|
2,043 |
|
|
|
2,800 |
|
Adjusted EBITDA |
|
$ |
64,046 |
|
|
$ |
64,791 |
|
Revenues |
|
|
199,119 |
|
|
|
200,364 |
|
Net (loss) income margin |
|
|
(4.4 |
)% |
|
|
5.4 |
% |
Adjusted EBITDA Margin |
|
|
32.2 |
% |
|
|
32.3 |
% |
Adjusted EBITDA |
|
$ |
64,046 |
|
|
|
|
|
Foreign currency translation impact(d) |
|
|
11 |
|
|
|
|
|
Constant currency Adjusted EBITDA |
|
$ |
64,057 |
|
|
|
|
|
Reconciliation of Consolidated Non-GAAP Financial Measures (continued)
|
|
Three Months Ended September 30, |
|
|||||
(in thousands) |
|
2024 |
|
|
2023 |
|
||
Net (loss) income |
|
$ |
(8,860 |
) |
|
$ |
10,773 |
|
Provision for income taxes |
|
|
782 |
|
|
|
4,881 |
|
(Loss) income before provision for income taxes |
|
|
(8,078 |
) |
|
|
15,654 |
|
Debt-related charges(a) |
|
|
10,057 |
|
|
|
2,532 |
|
Acquisition-related depreciation and amortization(b) |
|
|
22,646 |
|
|
|
25,660 |
|
Share-based compensation(c) |
|
|
9,504 |
|
|
|
4,790 |
|
Transaction and acquisition-related charges(d) |
|
|
13,218 |
|
|
|
1,571 |
|
Integration, restructuring, and other charges(e) |
|
|
2,043 |
|
|
|
2,800 |
|
Adjusted Net Income before income tax effect |
|
|
49,390 |
|
|
|
53,007 |
|
Less: Adjusted income taxes(f) |
|
|
11,400 |
|
|
|
12,972 |
|
Adjusted Net Income |
|
$ |
37,990 |
|
|
$ |
40,035 |
|
|
|
Three Months Ended September 30, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Diluted net (loss) income per share (GAAP) |
|
$ |
(0.06 |
) |
|
$ |
0.07 |
|
Adjusted Net Income adjustments per share |
|
|
|
|
|
|
||
Provision for income taxes |
|
|
0.01 |
|
|
|
0.03 |
|
Debt-related charges(a) |
|
|
0.07 |
|
|
|
0.02 |
|
Acquisition-related depreciation and amortization(b) |
|
|
0.15 |
|
|
|
0.18 |
|
Share-based compensation(c) |
|
|
0.06 |
|
|
|
0.03 |
|
Transaction and acquisition related charges(d) |
|
|
0.09 |
|
|
|
0.01 |
|
Integration, restructuring, and other charges(e) |
|
|
0.01 |
|
|
|
0.02 |
|
Adjusted income taxes(f) |
|
|
(0.08 |
) |
|
|
(0.09 |
) |
Adjusted Diluted Earnings Per Share (Non-GAAP) |
|
$ |
0.26 |
|
|
$ |
0.28 |
|
|
|
|
|
|
|
|
||
Weighted average number of shares outstanding used in computation of Adjusted Diluted Earnings Per Share: |
|
|
|
|
|
|
||
Weighted average number of shares outstanding—diluted (GAAP and Non-GAAP) |
|
|
144,096,312 |
|
|
|
144,733,357 |
|
Options and restricted stock not included in weighted average number of shares outstanding—diluted (GAAP) (using treasury stock method) |
|
|
2,492,320 |
|
|
|
— |
|
Adjusted weighted average number of shares outstanding—diluted (Non-GAAP) |
|
|
146,588,632 |
|
|
|
144,733,357 |
|