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) October 29, 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 record financial results for the third quarter
and nine month period.
Item 7 Financial Statements and Exhibits
c) Exhibits
37 Press release dated October 29, 1997 regarding third quarter and nine
month results
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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.
November 10, 1997 By: /s/ Dean A. Suposs
Date -----------------------------
Dean A. Suposs
President
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EXHIBIT INDEX
Exhibit No. Exhibit Description Page
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37 Press Release, dated 5
October 29, 1997
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FOR IMMEDIATE RELEASE: NEWS
October 29, 1997 Nasdaq National Market/AVRT
http://www.avert.com
AVERT, INC. ANNOUNCES RECORD FINANCIAL RESULTS FOR THE
THIRD QUARTER AND NINE MONTH PERIOD
New Customer Growth Up 91% From Third Quarter 1996
FORT COLLINS, CO - 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 third
quarter and nine month period ended September 30, 1997.
Net revenues for the third quarter grew to a record $2,524,000, up 14% from
$2,214,000 in the comparable quarter a year ago. Avert continued its strong
growth in new customers with 869, up 91% from 455 in the third quarter last
year. Through nine months, the Company reported record net revenues of
$7,079,000, up 21% from $5,834,000 in the same period last year.
Net income for the third quarter was $347,000, or 10 cents per share, versus
$338,000, or 10 cents per share, in the same quarter last year. Net income for
the nine-month period grew 10% to $879,000, or 25 cents per share, from
$800,000, or 23 cents per share, in the comparable period a year ago.
"Our revenue growth rate has slowed slightly", said Dean Suposs, president and
chairman at Avert, Inc. "However, we are encouraged by our strong growth in new
customers and our improved retention rate. The fundamentals of our business
remain very sound".
The Company believes that the decline in growth rate is primarily attributable
to two factors: 1) The loss of several large customers in the fourth quarter
1996 due to pricing. In 1996, the Company increased prices to bring these
customers to a profitable level, which resulted in a loss of business. Avert is
currently running pilot programs with several large customers that have
significant revenue potential where the prices are set with margins to realize
the profitability to which the Company is accustomed. 2) A change in spending
behavior by the Company's customers due to historic low unemployment rates that
have reduced the sales per customer. To counter this, the Company is currently
focusing marketing efforts in areas of higher unemployment, expanding its
product offering to increase sales per customer, and emphasizing its web-enbled
order entry and delivery capability.
During the third quarter the Company signed a partnership agreement with Roche
Diagnostic Systems to resell the Roche Test Cup products to the Avert customer
base. "We plan to continue to introduce new products and services to our
customer base and capitalize on the market opportunity to outsource human
resource services," added Suposs.
Through its headquarters in Fort Collins, Avert is an information services
company that provides thousands of employment backgrounds 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,
social security number validation, and a KnowledgeLink Help Desk to answer
customers' hiring and compliance questions.
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<TABLE>
<CAPTION>
EARNINGS RECAP Third Quarter Ended Nine Months Ended
September 30, September 30,
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1997 1996 1997 1996
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(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Revenue ............................................ $ 2,524,000 $2,214,000 $7,079,000 $5,834,000
Net Income ......................................... $ 347,000 $ 338,000 $ 879,000 $ 800,000
Net Income per common share ........................ $ .10 $ .10 $ .25 $ .23
Weighted avg. shares outstanding ................... 3,488,125 3,422,797 3,451,752 3,423,893
<CAPTION>
BALANCE SHEET DATA September 30, December 31,
1997 1996
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<S> <C> <C>
Working Capital .................................... $ 6,744,000 $6,375,000
Total Assets ....................................... $11,210,000 $9,495,000
Total Liabilities .................................. $ 1,114,000 $ 809,000
Shareholders' Equity .............................. $10,096,000 $8,686,000
</TABLE>
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