HireRight, Inc. Reports Third Quarter 2007 Results

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IRVINE, Calif.--(BUSINESS WIRE)--Nov. 8, 2007--HireRight, Inc.(NasdaqGM: HIRE), a leading provider of on-demand employment screeningsolutions, today announced financial results for the third quarterended September 30, 2007.

Service revenue for the quarter ended September 30, 2007 increased14.8% to $16.0 million, compared to $14.0 million in the quarter endedSeptember 30, 2006. Gross profit for the quarter rose to $8.7 millionfrom $7.0 million in the prior year quarter. Gross profit as apercentage of service revenue rose to 54.6%, compared to 50.3% in thequarter ended September 30, 2006.

HireRight chairman and chief executive officer, Eric Boden,stated, "We are pleased to have achieved or exceeded many of ourfinancial objectives for the third quarter highlighted by 74% growthin operating income on a year over year basis. Further, we continuedto see growing adoption of our leading on-demand background screeningsolutions as evidenced by the increase of our total customers to1,891, including the increase of 5 new Fortune 500 clients served to atotal of 63."

Income from operations was $2.6 million for the third quarter of2007, compared to $1.5 million during the same prior year period. Netincome was $1.8 million for the quarter ended September 30, 2007compared to $6.6 million for the quarter ended September 30, 2006. Thedecrease in net income was the result of a $1.2 million income taxexpense in the current period, compared with a $5.0 million income taxbenefit during the three months ended September 30, 2006, the resultof a reversal of the company's valuation allowance against deferredtax assets. The effective tax rate for the third quarter of 2007 wasapproximately 39%.

Cash and equivalents, including short-term investments, at the endof the third quarter were $51.3 million, compared to $8.2 million asof December 31, 2006. Cash and equivalents increased as a result ofproceeds from the company's initial public offering in August as wellas positive operating cash flow.

Conference Call

HireRight's third quarter results and the company's outlook forthe fourth quarter and full year will be discussed during a conferencecall today, November 8, 2007 at 5:00 pm Eastern Time, viateleconference and webcast. The dial-in number is (866) 202-3048within the United States, and (617) 213-8843 outside the UnitedStates. The teleconference pass code is 23715963. You can also accessa live broadcast of the call by visiting our website athttp://ir.hireright.com. A replay will be available for one month atthe same web address or by phone at (888) 286-8010 or (617) 801-6888,outside the United States, with pass code 80165077.

Safe Harbor Statement under the Private Securities LitigationReform Act of 1995

This message may contain forward-looking statements based on ourcurrent expectations, estimates and projections about our industry,management's beliefs, and certain assumptions made by us. Words suchas ''anticipates,'' ''expects,'' ''intends,'' ''plans,'' ''believes,''''seeks,'' ''estimates,'' ''may,'' ''will'' and variations of thesewords or similar expressions are intended to identify forward-lookingstatements. These statements include, but are not limited to, ourexpectations regarding our financial condition and results ofoperations. Such statements speak only as of the date hereof and aresubject to change. We undertake no obligation to revise or updatepublicly any forward-looking statements for any reason. Thesestatements are not guarantees of future performance and are subject tocertain risks, uncertainties and assumptions that are difficult topredict. Therefore, our actual results could differ materially andadversely from those expressed in any forward-looking statements as aresult of various factors. Important factors that may cause such adifference include, but are not limited to, the various risks anduncertainties described in the "Risk Factors" section of our QuarterlyReport on Form 10-Q for the period ended June 30, 2007, and thegeneral economic and political conditions and specific conditions thatmay impact our operations. Further information on HireRight, Inc.,including additional risk factors that may affect our forward lookingstatements, is contained in our Registration Statement on Form S-1,our Quarterly Report on Form 10-Q for the second quarter, and ourother SEC filings that are available through the SEC's website(www.sec.gov).

About HireRight

HireRight is a leading provider of on-demand employment backgroundand drug screening solutions that help organizations efficientlyimplement, manage and control screening programs. Many companies,including more than 60 of the Fortune 500, currently trust HireRightbecause the company delivers customer-focused solutions that providegreater efficiency and faster results. HireRight also providespre-integrated employment screening services through enterprisee-recruiting solutions from top providers such as Oracle/PeopleSoft,Taleo, Vurv, ADP/VirtualEdge, Deploy Solutions and PeopleAdmin.HireRight's worldwide headquarters are located in Irvine, Californiawith offices and affiliates around the globe. For more information,visit the company's web site at www.hireright.com.

CONTACT: Media Relations:
Strategies
Lindsay Thompson, 714-957-8880 ext. 128
Lindsay@strategiesadpr.com
or
Investor Relations:
ICR
Garo Toomajanian, 949-428-5855
ir@hireright.com
SOURCE: HireRight, Inc.

http://www.hireright.com/newsdetail.asp?dpid=1075163