FOR IMMEDIATE RELEASE: NEWS
July 23, 1996 Nasdaq National Market/AVRT
http://www.avert.com
AVERT, INC. ANNOUNCES RECORD FINANCIAL RESULTS
FOR THE SECOND QUARTER AND SIX MONTH PERIOD
FORT COLLINS, Colorado - Avert, Inc. (Nasdaq National Market/AVRT), an
information services company that provides employment background checks
to a growing nationwide customer base, today announced record financial
results for its second quarter and six month period ended June 30, 1996.
Net revenues for the second quarter grew to a record $1,967,800, up 34%
from $1,465,300 in the comparable quarter a year ago. Product and service
revenue for the quarter increased 37% to $1,887,300 from $1,373,200 in the
same quarter last year, with the average revenue per day growing to
$29,500 from $21,500 in the second quarter a year ago. Through six
months, the Company reported net revenues of $3,620,000, up 30% from
$2,776,600 in the same period last year.
The Company continued its strong growth in new customers with 558 the
second quarter, up 63% from the second quarter last year.
Net income reached a records $272,100, or 8 cents per share, up 22% from
$223,700, or 6 cents per share, in the same quarter last year. Net income
for the six month period grew to $463,200, or 14 cents per share, from
$440,800, or 13 cents per share, in the comparable period a year ago.
"We are pleased to announce increased earnings and believe that our earnings
will continue to grow with our revenue," said Dean Suposs, president and
chairman at Avert, Inc. "We are encouraged by the market feedback on our
new programs and services and we continue to research and develop additional
products and services that will expand our role in the hiring process. Our
price increase and additional service revenue should continue our increased
profitability as we go forward. We are pursuing an aggressive marketing
plan and are excited about the continued expansion of our market."
Revenue from criminal history reports grew 49% from the second quarter year
ago; previous employment reports, education and credit reports advanced 33%;
motor vehicle driving records increased 18%; revenue from other products
and services increased 87%; and workers' compensation histories declined 2%.
During the quarter, the Company announced a price increase a 4-10% for most
products. Avert is committed to providing the most current, accurate
information available which means that the Company always goes directly to
the source of information for all records. The change in prices reflects
the higher costs associated with the continued acquisition of the highest
quality data.
Additionally, Avert introduced a new program called Avertadvantage to reward
customer loyalty with discounts, services and resources. The new program
enables Avert to segment its pricing to different customer groups and
deliver value-added services to expand its role in the hiring process.
Also, during the quarter, Avert hired Jerry Thurber as Director of Infor-
mation Technology. "We are focused on using technology as a competitive
advantage and Thurber has extensive experience helping service companies
leverage information technology," added Suposs.
Subsequent to the quarter, Avert hired eight additional independent sales
representatives to capitalize on the expanding national market. The
respresentatives are located in San Francisco, Washington D.C., Orlando,
Indianapolis, Atlanta, Nashville, Pittsburgh, and Phoenix. Avert plans
to continue to grow its distribution channels through independent
representatives, resellers, strategic partnerships and acquisitions.
Through its headquarters in Fort Collins, Avert is an information services
company that provides thousands of employment background checks daily to
employers nationwide. Avert guarantees that is products and services are
the most current and accurate available. Products and services include
criminal records, civil records, workers' compensation histories, driving
records, previous employment verification, credit histories, education
verification and social security number validation.
EARNINGS RECAP Second Quarter Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
(unaudited) (unaudited)
Revenue $1,967,800 $1,465,300 $3,620,000 $2,776,600
Net Income $ 272,100 $ 223,700 $ 463,200 $ 440,800
Net Income per common
share $ .08 .06 .14 .13
Weighted avg. shares
outstanding 3,418,490 3,442,250 3,427,800 3,442,250
BALANCE SHEEET DATA June 30, December 31,
1996 1995
Working Capital $6,138,300 $6,426,900
Total Assets $8,656,500 $8,383,200
Total Liabilities $ 470,100 $ 547,800
Shareholders' Equity $8,186,400 $7,385,400
Contact:
Avert, Inc.
Kim Moss, Investor Relations
970/484-7722
