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Company restating earnings by $2.5M

By KRIS HUNDLEY
Published March 16, 2006

The most acquisitive public company in the Tampa Bay area has hit a speed bump.

First Advantage Corp. of St. Petersburg said late Wednesday that it is restating its earnings for several years by a total of more than $2.5-million.

Net income for 2002, 2003 and 2004 will be reduced by a total of $1.73-million. Also affected are two quarters each in 2004 and 2005, for total reduction in net income of $854,000.

First Advantage was formed in June 2003 from the merger of First American Corp.'s screening technology division and US SEARCH.com Inc. Immediately following the merger, the company went public and, since that time, has broadened its range of employer services through aggressive acquisition of dozens of companies.

First Advantage's shares closed Wednesday at $23.37, down 21 cents.

In a filing with the Securities and Exchange Commission after the close of the stock markets Wednesday, First Advantage said the restatements were necessary because payments were made to "certain vendors" in the company's occupational health division which were not properly accrued "and were, in fact, under accrued."

First Advantage's employment screening services for employers include drug screening and employee physicals. Company executives did not return calls seeking comment.

Kris Hundley can be reached at hundley@sptimes.com or 727 892-2996.

[Last modified March 16, 2006, 02:00:27]