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) August 5, 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
301 Remington Fort Collins, CO 80524
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(Former name or former address, if changed since last report)
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Item 5 Other Events
a) Avert, Inc. announced second quarter and six month period results.
Item 7 Financial Statements and Exhibits
c) Exhibits
35 Press release dated August 5, 1997 regarding
second quarter and six month results
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<PAGE>
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.
September 3, 1997 By: /s/ Dean A. Suposs
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Date Dean A. Suposs
President
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<PAGE>
EXHIBIT INDEX
Exhibit No. Exhibit Description Page
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35 Press Release, dated 5
August 5, 1997
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FOR IMMEDIATE RELEASE: NEWS NEWS
August 5, 1997 Nasdaq National Market/AVRT
http://www.avert.com
AVERT, INC. ANNOUNCES RECORD FINANCIAL RESULTS FOR THE SECOND
QUARTER AND SIX MONTH PERIOD
Second Quarter Net Revenues Grow 25% to Reach a Record $2.5 Million
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, 1997.
Net revenues for the second quarter 1997, grew to a record $2,458,400, up 25%
from $1,967,800 in the comparable quarter a year ago. Service revenue for the
quarter grew to $118,800, up 362% from the same period a year ago. Product
revenue for the quarter increased 20% to $2,224,700. The average revenue per day
increased to $36,600 from $29,500 in the second quarter a year ago. Through six
months, the Company reported net revenues of $4,554,400, up 25.8% from
$3,620,100 in the same period last year.
The Company continued its strong growth with 562 new customers in the second
quarter.
Net income, after tax, reached a record $283,600, or 8 cents per share, up 5%
from $270,500, or 8 cents per share, in the same quarter last year. Net income
for the six month period was up 15% to $532,300, or 15 cents per share, up from
$461,500, or 13 cents per share, in the comparable period a year ago.
"We are pleased to see our revenues continue to grow strongly as the economy
seems to decrease the number of people looking for work. The low employment rate
has resulted in less sales per customer for the second quarter of 1997, as
compared to the second quarter of 1996," said Dean Suposs, president and
chairman of Avert, Inc. "Our increased revenues are a reflection of our strong
customer retention and sales commitment to provide the additional services
customers are seeking."
Revenue from criminal history reports grew 22% from the second quarter year ago;
previous employment reports, education and credit reports advanced 32%; motor
vehicle driving records increased 13%; revenue from other products and services
decreased 3%; and workers' compensation histories declined 8%.
During the quarter, the Company continued to roll out its new online order entry
and report retrieval system, Avertnet. This first phase of the Company's
internal software conversion has been well received by customers. The Company
continues to concentrate on a complete computer operating system conversion
scheduled for fourth quarter.
"we are pleased with the progress of the software conversion. We have been able
to meet the goals of the system development while remaining on budget and on
schedule. As predicted, depreciation expenses are beginning to impact the bottom
line, with future benefits expected. We look forward to the completion of the
project in the fourth quarter and anticipate that once it is fully functional in
1998, the revenue per employee will increase from $150,000 in 1997 to more than
$200,000 per employee in 1998," continued Suposs.
Product research has continued with two additions to Avert's product line
scheduled for release shortly after the completion of the software conversion
project. Those are onsite drug testing and an interactive phone application.
During the Company's annual meeting held June 11, stockholders approved a
proposal to increase the number of incentive stock options available for
employees to 525,000 options, up from 363,337.
<PAGE>
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 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 verification and
social security number validation.
<TABLE>
<CAPTION>
EARNINGS RECAP Second Quarter Ended Six Months Ended
June 30, June 30,
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1997 1996 1997 1996
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(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Revenue ............................................ $2,458,400 $1,967,800 $4,554,400 $3,620,100
Net Income ......................................... $ 283,600 $ 270,500 $ 532,300 $ 461,500
Net Income per common share ........................ $ .08 $ .08 $ .15 $ .13
Weighted avg. shares outstanding ................... 3,493,500 3,418,500 3,466,300 3,427,800
<CAPTION>
BALANCE SHEET DATA June 30, December 31,
1997 1996
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<S> <C> <C>
Working Capital ................................... $ 6,506,400 $ 6,375,000
Total Assets ...................................... $10,983,900 $ 9,495,000
Total Liabilities ................................. $ 1,235,000 $ 809,000
Shareholders' Equity .............................. $ 9,748,900 $ 8,686,000
</TABLE>
Contact:
Avert, Inc.
Investor Relations
970/484-7722
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