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 12, 1999
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 record financial results for the third quarter and
nine-month period.
Item 7 Financial Statements and Exhibits
c) Exhibits
20 Press release dated October 12, 1999
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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.
October 13, 1999 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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20 Press Release, dated 5
October 12, 1999
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EXHIBIT 20
For Immediate Release: NEWS
October 12, 1999 Nasdaq National Market/AVRT
http://www.avert.com
AVERT, INC. ANNOUNCES RECORD FINANCIAL RESULTS FOR THE
THIRD QUARTER AND NINE MONTH PERIOD
Company Continues Momentum, Posting Highest Earnings in Company's
History Backed By Record Results in Revenues and New Customers
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FORT COLLINS, Colorado - Avert, Inc. (Nasdaq National Market/AVRT), an
Internet-based information services company providing employment screening and
support to a diverse nationwide client base, today announced a number of record
financial results for its third quarter and nine-month period ended September
30, 1999.
Third Quarter 1999 Highlights include:
[X] EPS growth of 282%, or 17 cents per share.
[X] Revenue growth of 34% to $3,466000.
[X] 149% growth in new customer sign-ups.
Nine month (January through September) 1999 Highlights include:
[X] EPS growth of 171%, or 38 cents per share.
[X] Revenue growth of 21% to $8,935,000.
[X] 119% growth in new customer sign-ups.
"What a quarter!," stated Dean A. Suposs, President and Chairman of Avert, Inc.
"Third quarter 1999 represents what I believe to be a milestone. Our efforts
during 1998 have turned into revenues and profits for 1999. As many recall, our
goal in recent times has been to recreate Avert in the likeness of an
Internet-based company. We have been able to leverage our fundamental
competencies in process management, technology, and order / delivery systems in
a way that not only extends our market reach electronically, but provides us
with processing improvements to fuel more profitable growth."
Net revenues for the third quarter grew to $3,466000, up 34% from $2,590,000 in
the comparable quarter a year ago. Through nine months, the Company reported net
revenues of $8,935,000, up 21% from $7,380,000 in the same period last year.
Net income after tax for the third quarter was $561,000 or 17 cents per share,
versus $147,000, or 4 cents per share, in the same quarter last year. Net income
after tax for the nine-month period was up 153% to $1,246,000, or 38 cents per
share, compared to $493,000, or 14 cents per share, in the comparable period a
year ago. Net income after tax as a % of revenue was 16% for the quarter and 14%
for the nine-month period ending September 30, 1999.
Revenue from product and service sales advanced 38%. In the third quarter,
criminal history reports contributed $1,954,000, up 34%; services grew 81% to
$290,000; motor vehicle driving records grew 69% to $412,000; previous
employment reports, education verifications and credit reports grew 32% to
$395,000; and workers' compensation histories declined 9% to $231,000.
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Page 2 of 2
Avert continued to add new customers to its client base with 1,460 in the third
quarter, a 149% increase over 587 added in the third quarter last year. Through
nine months, the Company has added 3,273 in 1999, up 119% as compared to 1,494
in the same period in 1998.
In July 1999, the Company received top honors from CIO (Chief Information
Officer) Magazine in the third annual CIO Web Business 50/50 Awards, a program
that distinguishes organizations around the world that have taken a distinct
approach toward the use of the Internet or Intranet in their business. The
AVERTnet system was recognized for its ingenuity in linking vendors, suppliers
and product sources together in an interactive web-based environment.
On July 13, 1999, Avert announced an additional agreement with Automatic Data
Processing (ADP), Employer Services, (New York Stock Exchange/AUD) to broaden
its joint marketing partnership. This agreement called for Avert services to be
offered nationwide to ADP customers in the Major Accounts division. An earlier
announcement (May 11, 1999) between Avert and the Emerging Business Services
division of ADP offers Avert services to ADP customers employing fewer than 100
employees.
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 219,850 shares under the stock repurchase plan,
12,500 during the third quarter of 1999.
About Avert, Inc.
Avert is the leading provider of Internet pre-employment screening solutions
linked through AVERTnet (Y2K Compliant), a secure network of Internet background
checking services. Avert uses Internet technology to create solutions that
streamline the hiring process. More than 10,000 companies nationwide utilize
Avert and the Web-based background checking system which incorporates criminal
court records, driving records, previous employment verification, workers'
compensation histories, credit histories, education verification and Social
Security Number validations. Additional information about Avert background
checking solutions and the Company's SEC filings are available on the Internet
at www.avert.com.
<TABLE>
<CAPTION>
EARNINGS RECAP Third Quarter Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Revenue ................................ $ 3,466,000 $ 2,590,000 $ 8,935,000 $ 7,380,000
Net Income ............................. $ 561,000 $ 147,000 $ 1,246,000 $ 493,000
Net Income per common share ............ $ .17 $ .04 $ .38 $ .14
Weighted avg. shares outstanding ....... 3,320,715 3,444,924 3,322,247 3,454,001
<CAPTION>
BALANCE SHEET DATA September 30, December 31,
1999 1998
<S> <C> <C>
Working Capital ........................ $ 8,273,000 $ 7,349,000
Total Assets ........................... $12,144,000 $10,908,000
Total Liabilities ...................... $ 1,383,000 $ 897,000
Shareholders' Equity ................... $10,760,000 $10,011,000
</TABLE>
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