The reports came back clear (no records found) does that mean the applicant has no criminal records?

Yes and NO – Yes, it might very well mean the applicant has no criminal records.  However, the answer could be NO- They could have a record in a state or county that is NOT included in the search or the there could be a recent conviction (last 30 – 90 days) or more or a pending charge and that has not yet been adjudicated.