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 14, 1998
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 1998 results.
Item 7 Financial Statements and Exhibits
c) Exhibits
32 Press release dated May 14, 1998
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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.
June 8, 1998 By: /s/ Dean A. Suposs
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Date Dean A. Suposs
President
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EXHIBIT INDEX
Exhibit No. Exhibit Description Page
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32 Press Release, dated May 14, 1998 5
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EXHIBIT 32
FOR IMMEDIATE RELEASE: NEWS
May 14, 1998 Nasdaq National Market/AVRT
http://www.avert.com
AVERT, INC. ANNOUNCES FIRST QUARTER RESULTS
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 first
quarter ended March 31, 1998.
Net revenues for the first quarter grew to $2,233,000, up 6% from $2,096,000 in
the comparable quarter in 1997. Product and service revenue for the quarter was
$2,147,000 up 6% from the first quarter of 1997.
Net income after tax for the quarter was $167,000, or 5 cents per share, versus
$249,000, or 7 cents per share, in the same quarter last year.
The Company believes that a number of factors influenced performance during the
first quarter of 1998. During the first quarter, nearly 4,600 customers used
Avert's services, up 16.2% from first quarter of 1997. However, revenue per
customer decreased approximately 9.2% in the first quarter of 1998 as compared
to the same period in 1997. The Company believes this can be partially
attributed to the low unemployment rate that affects the number of applicants
available to employers. To coincide with this assumption, the Company
experienced the highest level of growth in products and services offering quick
turnaround enabling employers to make faster, informed hiring decisions.
Revenue from criminal history reports grew to $1,115,000, up 10.2% from a year
ago; previous employment reports and credit reports advanced 16.5% to $268,000;
motor vehicle driving records decreased 3.8% to $251,000; workers' compensation
histories decreased 18.5% to $242,000; and revenue from other products and
services increased 23.2% to $271,000, with revenue from services contributing
$125,000 to that growth.
"We have made the operating investments necessary to allow us to respond more
quickly to changing market conditions," said Dean Suposs, president and chairman
of Avert, Inc. "Although these investments have affected us in the short term,
they are expected to support our strategy of meeting and exceeding both customer
and market expectations. In order to complete the tasks involved with this
conversion, it was necessary to focus almost 40% of our staff to this project
during the last 90 days. We have essentially changed our entire way of doing
business with our software system upgrades. It is reasonable to expect such
large-scale change to affect our performance at the same time that it offers
more flexibility in the strategies we use to meet the customer and market
needs," Suposs continued.
During the first quarter, the Company was focused on completing the necessary
tasks for a software conversion scheduled for early April. Staff members,
customers, and vendors were involved in such activities as preparing literature,
communicating new features and enhancements, and verifying data. Additionally,
it was necessary to train staff member on both the features they would use to do
their duties and how to communicate these features to customers. This increased
level of activity involved each department, thus reducing the time available to
spend on the support of existing company programs and initiatives.
In March, the Company announced that Avert was successful in obtaining Errors
and Omissions Insurance coverage. This type of coverage is used to protect
against claims that the Company or an employee made mistakes due to error or
oversight causing loss of productivity or revenue on the part of the customer.
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Also during the quarter, Avert, Inc. announced the payment of a special cash
dividend of $.10 per common share payable on March 23, 1998 to shareholders of
record on March 16, 1998. Dividend payments totaled $350,000.
Through its headquarters in Fort Collins, Colorado, 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 Quarter Ended March 31, Quarter Ended March 31,
1998 1997
(unaudited)
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<S> <C> <C>
Revenue .................................. $ 2,233,000 $ 2,096,000
Net Income ............................... $ 167,000 $ 248,700
Net Income per common share .............. $ .05 $ .07
Primary Weighted avg.
shares outstanding ................ 3,546,124 3,417,855
<CAPTION>
BALANCE SHEET DATA March 31, 1998 December 31, 1997
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<S> <C> <C>
Working Capital .......................... $ 7,233,000 $ 7,543,000
Total Assets ............................. $11,440,000 $11,531,000
Total Liabilities ........................ $ 1,211,000 $ 1,096,000
Shareholders' Equity ..................... $10,229,000 $10,435,000
</TABLE>
Contact:
Avert, Inc.
Investor Relations
970/484-7722
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