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FINANCIAL RESULTS
Operating revenues for the Screening Information segment more than doubled in 2002 as compared to 2001,
increasing 105 percent to a total of $100.7 million. Income before income taxes and minority interests rose to
$2.5 million, following a loss of $286,000 in 2001.
SEGMENT ACTIVITY
Mergers and acquisitions helped this segment to grow substantially in 2002, further raising its industry profile as
a leading provider of screening information services to businesses with employment, insurance, and property
management decision needs. These developments took place during a depressed
employment market, which provided both economic and integration advantages, and
positioned the Screening Information segment in four primary market areas: motor vehicle
records reporting, substance abuse testing and program management, resident screening,
and employment screening.
In early 2002, The First American Corporation acquired American Driving Records, Inc., one
of the nation's leading providers of motor vehicle reports (MVR). MVRs are an important
part of the screening process for companies that have employees who are required to drive on
company business. This acquisition positioned First American as one of only three backgroundscreening
companies with direct access to state motor vehicle records nationwide.
Employee Health Programs, Inc., the screening industry's largest independently owned
drug-testing management and medical review services provider, was acquired in the
fourth quarter of 2002. Coupled with Substance Abuse Management, Inc., another leading  drug-testing services
provider acquired in 2001, this group's occupational health division increased its market
share and now stands as the second-largest provider of drug-testing management and
medical review services in the nation.
SafeRent, Inc., a leading provider of online credit and risk management services for
resident screening, was acquired in late 2002. The company's operations are being
merged with those of First American Registry, Inc., already the nation's leading provider
of resident-screening services. This combination puts the group in an industry leadership
position and provides economies of scale.
In late 2002, The First American Corporation and US SEARCH.com Inc. agreed to merge
their background-screening businesses. The merger will bring together the employmentscreening
businesses of First American's HireCheck, Inc. and US SEARCH's PRSI, and add consumer-directed peoplelocation
services to the group.
The merger with US SEARCH will coincide with the formation of a new publicly held company applying for listing on
the NASDAQ National Market System. The new company, First Advantage Corporation, will be owned 80 percent
by The First American Corporation and 20 percent by the shareholders of US SEARCH. The merger is scheduled to
close during the second quarter of 2003.
MARKET GROWTH
When the merger is complete, First Advantage is expected to claim the top market position in both the residentscreening
and people-location industries, the number-two position in substance abuse testing and programmanagement
services, the number-three position in employment screening, and be among the top four competitors
in the provision of motor vehicle reports. It is projected that this segment's revenues will exceed $150 million in 2003.
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