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) July 15, 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 2nd Quarter and Six-Month 1999 results.
Item 7 Financial Statements and Exhibits
c) Exhibits
20 Press release July 15, 1999
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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.
July 15, 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
July 15, 1999
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EXHIBIT 20
FOR IMMEDIATE RELEASE: NEWS
July 15, 1999 Nasdaq National Market/AVRT
http://www.avert.com
AVERT, INC. ANNOUNCES A RECORD 160% INCREASE IN QUARTER EARNINGS
Company posts record earnings, revenue and growth in new customer sign-ups
for both quarter and six months.
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, 1999.
Net revenues for the second quarter 1999, grew to $2,977,000, up 16% from
$2,557,000 in the comparable quarter a year ago. Service revenue for the quarter
grew to $185,000, up 49% from the same period a year ago. June of 1999 was a
notable month in the Company's history as Avert passed the million-dollar mark
for revenues generated in one month. Through six months, the Company reported
net revenues of $5,469,000, up 14% from $4,790,000 in the same period last year.
The Company added 1,034 new customers in the second quarter, more than doubling
the 499 added during the second quarter of 1998. Over the six month period, the
Company added 1,815 new customers as compared to 1,025 added in the same period
of 1998. This represents a 77% increase in new customer growth.
Net income, after tax, for second quarter 1999, was $429,000, or $.13 cents per
share, compared to $179,000, or $.05 cents per share, in the same quarter last
year. Net income for the six-month period of 1999, was $684,000, or $.21 cents
per share as compared to $346,000 or $.10 cents per share in the comparable
period a year ago.
"In addition to the record financial results for the second quarter, we have had
several notable achievements throughout the Company," said Dean Suposs,
president and chairman of Avert, Inc. "Some will recall our completion of
related technology projects during the second quarter of 1998. We have been
successful in leveraging that technology into strong new partnerships, while
reducing costs and increasing profits. We have measured significant productivity
gains sparked by a combination of process improvements and our drive to expand
our WEB based electronic commerce. Second quarter comparisons alone, marked a
50% increase in revenue per employee. Our immediate and long-term plans are to
continue streamlining internal processes, while pursuing new opportunities to
introduce the marketplace to innovative technology-driven employment screening
solutions."
In second quarter of 1999, revenue from criminal history reports grew 17% from
the second quarter a year ago; reference check reports, and credit reports grew
3%; motor vehicle driving records increased 35%; revenue from Name Link
increased 22%; and workers' compensation histories declined 10%.
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During the second quarter of 1999, Avert announced several new partnership
agreements. Most recently, ADP and Avert finalized arrangements to pursue joint
marketing opportunities to offer the Avert product selection to customers of
ADP's Employer Services via Avert's on-line network of services, AVERTnet. This
agreement follows two market pilots based in ADP's Boston and Chicago
territories. Sales training and other preparations for the national rollout are
scheduled for completion during the third quarter.
An online partnership with Careermag.com and sister-company, HRlibrary.com,
presents visitors to those sites an opportunity to join a variation of Avert's
Advantage program, currently offered to customers. Various Avert resources
compliment the human resources focus of these sites.
A third partnership teams Avert with the LeadersOnline recruiting service, a
subsidiary of Heidrick & Struggles. The LeadersOnline recruiting process locates
strong candidates and reduces the risk of hiring unqualified candidates by
providing background verifications. Avert provides background checking
information within 48 hours via a secure online connection.
During the June 9, 1999 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.
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, reference checks, workers' compensation
histories, credit histories, education and credential verification and Social
Security Number validations. AVERTnet is customized to meet the unique concerns,
policies and procedures of companies nationwide. Additional information about
Avert background checking solutions and the Company's SEC filings is available
on the Internet at www.avert.com or contact Investor Relations at 970.484.7722.
<TABLE>
<CAPTION>
EARNINGS RECAP Second Quarter Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Revenue .................................. $ 2,977,000 $ 2,557,000 $ 5,469,000 $ 4,790,000
Net Income ............................... $ 429,000 $ 179,000 $ 684,000 $ 346,000
Net Income per common share .............. $ .13 $ .05 $ .21 $ .10
Weighted avg. shares outstanding ......... 3,323,025 3,522,799 3,323,023 3,477,554
<CAPTION>
BALANCE SHEET DATA ....................... June 30, December 31,
1998 1998
<S> <C> <C>
Working Capital .......................... $ 7,647,000 $ 7,349,000
Total Assets ............................. $11,416,000 $10,908,000
Total Liabilities ........................ $ 1,140,000 $ 897,000
Shareholders' Equity ..................... $10,276,000 $10,011,000
</TABLE>
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This press release may contain forward-looking statements that are made pursuant
to the "safe harbor" provisions of the Private Securities Litigation Reform Act
of 1995. Factors that may cause the company's actual results to differ
materially from those expressed in the forward-looking statements include, but
are not limited to, the following: risks associated with potential liability for
failure to comply with federal and state regulations; liability to customers
and/or to the subjects of background checks for inaccurate or misuse of
information; loss of key personnel; and intense competition, as well as general
economic business conditions, changes in laws or regulations and other factors,
many of which are beyond the control of the company.
