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 7, 1998
AVERT, INC.
----------------------------------------------------
(Exact name of registrant as specified in its charter)
Colorado 0-239052 84-1028716
--------------------------- ----------- ------------------
(State of other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
301 Remington, Fort Collins, Colorado 80524
- --------------------------------------- --------
(Address of principal executive offices) Zip Code
Registrant's telephone number, including area code: 970-484-7722
301 Remington Fort Collins, CO 80524
----------------------------------------------------------
(Former name of former address, if changed since last report
<PAGE>
Item 5 Other Events
a) Avert, Inc. announced 2nd quarter 1998 results.
Item 7 Financial Statements and Exhibits
c) Exhibits
10 Press release dated August 7, 1998
2
<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.
March 24, 1998 By: /s/ Dean A. Suposs
- --------------------------- ---------------------------
Date Dean A. Suposs
President
3
<PAGE>
EXHIBIT INDEX
Exhibit No. Exhibit Description Page
- ---------- ------------------- ----
10 Press Release, dated 5
August 7, 1998
4
EXHIBIT 10
FOR IMMEDIATE RELEASE: NEWS
August 7, 1998 Nasdaq National Market/AVRT
http://www.avert.com
AVERT, INC. ANNOUNCES FINANCIAL RESULTS
FOR THE SECOND QUARTER AND SIX MONTH PERIOD
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, 1998.
Net revenues for the second quarter 1998, grew to $2,557,000, up 4% from
$2,458,000 in the comparable quarter a year ago. Service revenue for the quarter
grew to $124,000, up 4.2% from the same period a year ago. Product revenue for
the quarter increased 5.8% to $2,354,000. The average revenue per day increased
to $41,200 from $36,600 in the second quarter a year ago. Through six months,
the Company reported net revenues of $4,790,000, up 5.2% from $4,554,000 in the
same period last year.
The Company added 494 new customers in the second quarter.
Net income, after tax, was $179,000, or 5 cents per share, compared to $284,000,
or 8 cents per share, in the same quarter last year. Net income for the six
month period was $346,000, or 10 cents per share as compared to $532,000 or 15
cents per share in the comparable period a year ago.
"Our second quarter performance was impacted by our recent technology
conversion. We saw short-term losses in April that were necessary to achieve the
full integration of our new technology developments," said Dean Suposs,
president and chairman of Avert, Inc. "Our overall growth for second quarter
remained positive as we were able to turn our focus to marketing our technology
improvements to current customers and prospects. We have begun to see several
improvements and are excited about our long-term growth potential in this area."
Revenue from criminal history reports grew 17% from the second quarter a year
ago; previous employment reports, and credit reports declined 3%; motor vehicle
driving records decreased 2%; revenue from services increased 4%; and workers'
compensation histories declined 16%.
During the second quarter, Avert completed a technology conversion, development
of which began in 1997. The improvements will be most noticeable in the areas of
internal operations, account management and partnering efforts. Internal
operations have realized efficiencies with the ability to offer more automatic
interfaces to data sources. Rising data acquisition costs and labor costs will
make such efficiencies a priority over the next year.
Two improvements currently available to customers include automatic delivery of
reports via email and custom packaging options to simplify the ordering process.
Such additional services are being marketed to attract higher numbers of new
customers that are interested in conducting business with Avert, Inc. via the
Internet, creating more cost-effective transactions.
Avert, Inc. also announced two partnership arrangements through the
AVERTAffinity program. An agreement with ADP Employer Services, (NYSE/AUD)
extended an earlier pilot program to offer pre-employment screening services to
the ADP customer base. The new pilot agreement calls for Avert services to be
offered to ADP customers in portions of the greater Chicago area.
<PAGE>
Restrac, Inc. (Nasdaq/RTRK) and Avert, Inc. entered into an agreement to pursue
joint marketing opportunities. Avert joins Restrac as a member of the WebHire
Network to offer pre-employment screening services to companies seeking to hire
qualified individuals.
During the June 24, 1998 Avert, Inc. Annual Meeting of Shareholders,
shareholders re-elected the Board of Directors and ratified the selection of
Hein + Associates LLP, as independent auditors for the Company.
Also, the Avert, Inc. Board of Directors approved an additional $500,000 to
repurchase shares in the open market. This is in addition to $500,000 approved
for repurchase in January of 1996.
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,
------------------------ ------------------------
1998 1997 1998 1997
---- ---- ---- ----
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Revenue ............................................ $ 2,557,000 $ 2,458,000 $ 4,790,000 $ 4,554,400
Net Income ......................................... $ 179,000 $ 284,000 $ 346,000 $ 532,300
Net Income per common share ........................ $ .05 $ .08 $ .10 $ .15
Weighted avg. shares outstanding ................... 3,522,800 3,493,500 3,529,400 3,466,300
<CAPTION>
BALANCE SHEET DATA June 30, December 31,
1998 1997
-------- -----------
<S> <C> <C>
Working Capital .................................... $ 6,751,000 $ 7,543,000
Total Assets ....................................... $11,447,000 $11,531,000
Total Liabilities .................................. $ 1,192,000 $ 1,096,000
Shareholders' Equity ............................... $10,254,000 $10,435,000
</TABLE>
Contact:
Avert, Inc.
Investor Relations 970.484.7722
