SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) May 1, 1997
AVERT, INC.
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(Exact name of registrant as specified in its charter)
Colorado 0-239052 84-1028716
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(State of other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
301 Remington, Fort Collins, Colorado 80524
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(Address of principal executive offices) Zip Code
Registrant's telephone number, including area code: 970-484-7722
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Item 5 Other Events
a) Avert, Inc. announced first quarter 1997 results.
Item 7 Financial Statements and Exhibits
c) Exhibits
32 Press release dated May 1, 1997 regarding
first quarter 1997 results
2
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
AVERT, INC.
May 14, 1997 By: /s/ Dean A. Suposs
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Date Dean A. Suposs
President
3
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EXHIBIT INDEX
Exhibit No. Exhibit Description Page
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32 Press Release, dated May 1, 1997 5
4
EXHIBIT 32
FOR IMMEDIATE RELEASE: NEWS
May 1, 1997 Nasdaq National Market/AVRT
http://www.avert.com
AVERT, INC. ANNOUNCES RECORD FIRST QUARTER RESULTS
New Customer Growth Up 109% from Comparable Quarter Last Year
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 financial results for its
first quarter ended March 31, 1997.
Net revenues for the first quarter grew to a record $2,095,900, up 27% from
$1,652,300 in the comparable quarter in 1996. Product and service revenue for
the quarter was $2,018,300 up 29% from the first quarter of 1996. The Company
continued its growth with an increase in new customers with 1,022 in the first
quarter, up 109% from the first quarter last year.
Net income after tax for the quarter was up 30% to $248,700, or 7 cents per
share, versus $191,000, or 6 cents per share, in the same quarter last year.
Total expenses decreased to 80.5% of total net revenues, down from 81.4% of
total net revenues last year. This decrease is primarily due to lower product
costs.
"The substantial growth in new customers is in part attributed to an increased
focus on our partnering efforts," said Dean Suposs, president and chairman of
Avert, Inc. "We signed a number of customers through a partner late in the
quarter. As a part of refining our sales distribution model, we are also
implementing programs to increase the length of the customer relationship.
During the first quarter, we have seen success with customer retention programs
in the form of increasing the frequency with which new customers are using our
products and services."
Revenue from criminal history reports grew to $1,012,200, up 20% from a year
ago; previous employment reports and credit reports advanced 31% to $229,600;
motor vehicle driving records increased 20% to $261,500; workers' compensation
histories increased 1% to $296,600; and revenue from other products and services
increased 206% to $218,300, with revenue from services contributing $114,400 to
that growth.
"We are proud of our continued growth in service revenue," continued Suposs. "We
believe this reflects the acceptance of both the Avertadvantage program and new
custom services available to customers. To date, there are 1,200 active
Avertadvantage members paying the monthly $10 membership fee. Avert custom
services allow customers to tailor our services to meet their individual needs,
while offering higher margins for the Company."
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During the first quarter, the Company introduced Avertnet, a new interactive
HTML-based order entry and retrieval system, to a group of beta users. Customers
are able to access Avertnet via the internet or through a private network
connection. Avertnet uses proven internet technology and password-protected and
encrypted security features. The framework of Avertnet is built to enable easy
integration of other systems and products. The rollout to the remainder of the
customer base is scheduled for the second quarter.
Subsequent to the quarter, Avert announced the termination of the agreement with
Ameritech Information Access, L.L.C., an affiliate of Ameritech, Corporation, to
provide pre-employment screening information to its customer base through
Ameritech's on-line service, CivicLink.
"The termination of the agreement is a result of a new direction in business
strategies at Ameritech Information Access, L.L.C.," said Dean Suposs, President
of Avert, Inc. "We still have a good relationship with the Company and have
contacts and opportunities in other business units, as indicated in their
agreement to endorse our services to other Ameritech business units."
Through its headquarters in Fort Collins, CO, Avert is an information services
company that provides thousands of employment background checks daily to
employers nationwide. Avert guarantees that its 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 and credential
verification and social security number validation.
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<CAPTION>
EARNINGS RECAP First Quarter Ended March 31,
(unaudited) ------------------------------------
1997 1996
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<S> <C> <C>
Revenue $ 2,095,900 $ 1,652,300
Net Income $ 248,700 $ 191,000
Net Income per common share $ .07 $ .06
Primary Weighted avg.
shares outstanding 3,400,000 3,437,107
<CAPTION>
BALANCE SHEET DATA March 31, December 31,
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1997 1996
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Working Capital $ 6,081,100 $ 6,184,000
Total Assets $ 9,727,900 $ 8,431,200
Total Liabilities $ 762,700 $ 481,200
Shareholders' Equity $ 8,965,200 $ 7,950,000
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Contacts:
Avert, Inc.
Dean Suposs, President
Kelly Newberg, Investor Relations
970/484-7722
