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) November 4, 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
301 Remington Fort Collins, CO 80524
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(Former name of former address, if changed since last report
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Item 5 Other Events
a) Avert, Inc. announced 3rd quarter 1998 results.
Item 7 Financial Statements and Exhibits
c) Exhibits
11 Press release dated November 4, 1998
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.
March 24, 1998 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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11 Press Release, dated 5
November 4, 1998
4
EXHIBIT 11
For Immediate Release NEWS
November 4, 1998 Nasdaq National Market/AVRT
http://www.avert.com
AVERT, INC. ANNOUNCES FINANCIAL RESULTS FOR THE
THIRD QUARTER AND NINE MONTH PERIOD
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 financial results for its third
quarter and nine month period ended September 30, 1998.
Net revenues for the third quarter grew to $2,590,000, up 3% from $2,524,000 in
the comparable quarter a year ago. Through nine months, the Company reported net
revenues of $7,380,000, up 4% from $7,079,000 in the same period last year.
Net income for the third quarter was $147,000 or 4 cents per share, versus
$347,000, or 10 cents per share, in the same quarter last year. Net income for
the nine-month period was down 44% to $493,000, or 14 cents per share, compared
to $879,000, or 25 cents per share, in the comparable period a year ago.
Revenue from product and service sales advanced 3.3%. Criminal history reports
showed the most growth, up 15% to $1,461,000; services grew 13% to $160,000;
motor vehicle driving records decreased 3% to $243,000; previous employment
reports, education verifications and credit reports declined 16% to $298,000;
and workers' compensation histories declined 15% to $298,000.
Avert continues to add new customers to its client base with 587 in the third
quarter, compared to 869 in the third quarter last year.
During the third quarter, Avert, Inc. announced the extension of an earlier
pilot agreement with Automatic Data Processing, ADP Employer Services, (New York
Stock Exchange/AUD). The extension called for Avert services to be offered to
ADP customers in the greater Chicago area during a 90-day pilot. Avert and ADP
management are scheduled to begin discussions regarding the outcome of the pilot
and future marketing efforts to the ADP customer base.
In other news for the quarter, the Avert Board of Directors approved an
additional $500,000 for the Company's stock repurchase program. To date, the
Company has purchased a total of 207,350 shares under the stock repurchase plan,
125,600 during the third quarter of 1998. To date, the Company has repurchased a
total of $1,028,612.85 worth of stock.
Internal efficiencies related to Avert's technology upgrade were offset during
the third quarter by an above average amount of credits offered to customers
impacted by the Company's second quarter computer conversion. It is the belief
of Avert management that customer credits should return to an acceptable level
going into the fourth quarter and new year.
During the fourth quarter and beyond, the Company expects to focus efforts
toward providing customers with increased services for use in the hiring
process. Instant credit reports were introduced to customers in early October
1998. These reports, available either by phone or through Avert's on-line
service, are provided in response to customers' requests for faster information
to use in decision making. Additional products are scheduled for release during
the fourth quarter.
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
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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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<CAPTION>
EARNINGS RECAP Third Quarter Ended Nine Months Ended
September 30, September 30,
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1998 1997 1998 1997
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(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Revenue ............................................ $ 2,590,000 $ 2,524,000 $ 7,380,000 $ 7,079,000
Net Income ......................................... $ 147,000 $ 347,000 $ 493,000 $ 879,000
Net Income per common share ........................ $ .04 $ .10 $ .14 $ .25
Weighted avg. shares outstanding ................... 3,444,924 3,488,125 3,454,001 3,451,752
<CAPTION>
BALANCE SHEET DATA September 30, December 31,
1998 1997
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<S> <C> <C>
Working Capital .................................... $ 7,251,000 $ 7,542,000
Total Assets ....................................... $11,212,000 $11,531,000
Total Liabilities .................................. $ 1,124,000 $ 1,097,000
Shareholders' Equity ............................... $10,088,000 $10,435,000
</TABLE>
