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) February 1, 2000
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
<PAGE>
Item 5 Other Events
a) Avert, Inc. Announces 4th Quarter and 1999 Results.
Item 7 Financial Statements and Exhibits
c) Exhibits
22 Press release dated February 1, 2000
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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.
February 1, 2000 By: /s/ Dean A. Suposs
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Date Dean A. Suposs
President
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<PAGE>
EXHIBIT INDEX
Exhibit No. Exhibit Description Page
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22 Press Release, dated 5
February 1, 2000
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EXHIBIT 22
FOR IMMEDIATE RELEASE: NEWS
February 1, 2000 Nasdaq National Market/AVRT
http://www.avert.com
AVERT, INC. ANNOUNCES RECORD FINANCIAL RESULTS FOR Q4 AND YEAR END RESULTS
Q4 Earnings Per Share Up 186% to $.20
1999 Year End Earnings Per Share Up 159% to $.57
FORT COLLINS, Colorado - Avert, Inc. (Nasdaq National Market/AVRT), an Internet
based application service provider (ASP) company providing employment background
checks to a diverse nationwide customer base, today announced financial results
for its fourth quarter and year-ended December 31, 1999.
*1999 Financial Summary:
<TABLE>
<CAPTION>
Q1 Q2 Q3 Q4 Year End
<S> <C> <C> <C> <C> <C>
Revenues (in thousands) $ 2,492 $ 2,977 $ 3,465 $ 3,673 $ 12,608
(12%) (16%) (34%) (42%) (27%)
Net Income (in thousands) $ 255 $ 429 $ 561 $ 646 $ 1,892
(53%) (140%) (282%) (162%) (156%)
Basic Earnings (cents per $ .08 $ .13 $ .17 $ .20 $ .57
share)
(60%) (160%) (282%) (186%) (159%)
</TABLE>
*( ) = Percentage of growth over same time period in 1998.
"We have re-aligned our market and our business systems to provide greater value
for our shareholders, customers and employees. Nineteen ninety nine was the year
in which we molded technology, service, products, and profitability into an
exhilarating web based business," stated Dean A. Suposs, President and Chairman
of Avert, Inc. "Over the past years, we have held our sights on achieving the
type of success we have seen in 1999. The past year represents the fruition of
our efforts on every front: the incorporation of technology, aggressive pursuit
of suitable marketing partnerships and streamlining our internal processes to
become more efficient. I believe this to be a manageable trend backed by solid
financial performance and position."
Q4 1999
In a year of record financial results, Avert's performance during the Fourth
Quarter of 1999 outpaced the previous quarters. Net revenues for the fourth
quarter advanced to $3,673,000, a 42% increase from $2,582,000 in the same
period in 1998. The results of the fourth quarter revenue gain continues the
momentum that has become characteristic of Avert's performance during 1999.
First quarter 1999 posted a 12% gain over the previous year's first quarter;
second quarter a 16% gain; and third quarter represented a 34% gain in net
revenues.
Fourth quarter 1999 net income was up 162% to $646,000, compared to $247,000 in
1998. Earnings per share rose 186% to $.20, up from $.07 cents per share, a year
ago. It represented the third consecutive quarter of double-digit per share
earnings. Net margins for the quarter were 18%.
Fourth quarter new customer growth accounted for 41% of the year's new customer
sign-ups, bringing the figure a little more than 2,300 customers. This
represented a 234% increase from the prior fourth quarter time period.
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<PAGE>
1999 Year End
Overall, 1999 represented comparable double-digit accomplishments. Net revenues
for 1999 reached a record $12,608,000 up 27% from $9,962,000 in 1998.
Net income for the year was up 156% to $1,892,000, compared to $740,000 in 1998.
Earnings per share rose 159% to $.57, up from $.22 cents per share, a year ago.
This marks the highest year-end per share earnings in Avert's history. For the
year ending December 31, 1999, the Company reported $8,578,000 million in
working capital and no long-term debt. Avert's net margins after tax for the
year-end were 15%.
The Company also achieved strong new customer growth during 1999, more than
doubling last year's performance to add more than 5,500 new customers to its
client base in 1999. This was a 139% increase from 1998's sign-ups of 2,336.
Revenue from criminal history reports for 1999 rose to $7,073,000, up 27% from a
year ago; previous employment reports and credit reports grew 11% to $1,316,000;
motor vehicle driving records advanced 45% to $1,433,000; workers' compensation
histories declined 10% to $845,000; and services more than doubled to
$1,175,000, up 109%.
Summary of 1999.
Most of Avert's major accomplishments can be categorized into two areas:
partnerships and recognition for Avert's innovative web business model.
Aggressive partnership initiatives were realized as the Company signed
partnerships or joint marketing agreements with a diverse group of companies.
Perhaps the most notable came as a formal agreement between Avert and ADP's
Emerging Business Services division and their Major Account division. Other
agreements highlighted the Company's technical abilities while providing new
ways to present Avert's products through the use of the Internet.
Additionally, Avert was recognized as one of the top 50 web-based businesses by
a panel of CIO Magazine judges. This award recognizes Avert's use of the
Internet to improve relationships among its vendors, customers, and partners.
Through its headquarters in Fort Collins, Colorado, Avert, inc. is an Internet
based information network company providing employment background checks via
remote access to a diverse nationwide customer base.
Visit our headquarters at www.avert.com.
<TABLE>
<CAPTION>
EARNINGS RECAP Fourth Quarter Ended Year Ended
December 31, December 31,
1999 1998 1999 1998
(audited) (audited)
<S> <C> <C> <C> <C>
Revenue $ 3,673,000 $ 2,582,000 $12,608,000 $ 9,962,000
Net Income $ 646,000 $ 247,000 $ 1,892,000 $ 740,000
Basic Net Income per common share $ .20 $ .07 $ .57 $ .21
Basic Weighted avg. shares outstanding 3,284,227 3,323,373 3,312,664 3,430,538
<CAPTION>
BALANCE SHEET DATA December 31, December 31,
1999 1998
<S> <C> <C>
Working Capital $ 8,578,000 $ 7,349,000
Total Assets $12,516,000 $10,908,000
Total Liabilities $ 1,571,000 $ 897,000
Shareholders' Equity $10,945,000 $10,011,000
</TABLE>
CONTACT: Avert, Inc. Investor Relations - 800.367.5933
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