Avert, Inc. reports record fourth quarter and year-end results; Company continues strong growth with 1994 revenue up 33%, net income increases 62%, return on revenue at 21%.

FORT COLLINS, Colo.--(BUSINESS WIRE)--Feb. 21, 1995--Avert, Inc., (NASDAQ:AVRT), an information services company that provides employment background checks to a growing nationwide customer base, today announced record results for its fourth quarter and year ended December 31, 1994.

Revenue for 1994 reached a record $4,704,800, up 33% from $3,537,700 in 1993. Net income also advanced to a record level, growing 62% to $969,900, or 33 cents per share, from net income of $600,700, or 25 cents per share, last year.

Revenue for the fourth quarter grew 36% to $1,237,300 from $908,100 in the same period a year ago. Fourth quarter net income increased to $244,100, or 7 cents per share, from $57,800, or 2 cents per share, in the comparable period last year. Management noted that in the fourth quarter last year, the Company had a settlement expense with a former director that impacted the bottom line by approximately $120,000.

"We are pleased with our consistent revenue growth and believe Avert is positioned to continue growing as employers throughout the U.S. recognize the value of our service in reducing hiring risks and associated costs," said Dean Suposs, president. "With proceeds from our public offering, we are now seeking to leverage our strong regional presence to increase revenue on a national basis. In addition to stepped-up marketing efforts, which include establishment of four satellite sales locations, we continue to explore potential acquisition opportunities."

Suposs said Avert's 21% return on sales for the year is attributable to a strong technology-based infrastructure that has enabled the Company to add new customers at a much faster rate than it adds overhead. The Company conducts a significant percentage of its background checking activities via electronic means.

In January 1995, Avert opened low-overhead regional sales offices in St. Louis/Kansas City, Chicago, Portland/Seattle, and Dallas/Ft. Worth to expand its national presence and increase face-to-face interaction with customers and prospects. All orders from the new offices are processed and fulfilled by the Company's headquarters in Fort Collins. If the initial regional sales offices are successful, the Company expects to open eight additional offices by the end of 1995 using internally-generated cash. The Company will use internally-generated cash to open these offices and expects the costs associated with the expansion will initially reduce Avert's return on sales.

Suposs added that initial feedback from the branch office locations has been positive. "The sales representatives have made aggressive efforts to contact existing customers, re-establish dialogue with inactive customers, and introduce Avert to new corporations," he said.

Additionally, Avert intends to build a new corporate headquarters on a lot of land purchased by the Company in November 1994 to accommodate anticipated growth. Plans have been developed and Avert is currently in the bidding process. Building costs are estimated at $1.2 million, which will be financed with current available cash derived from past operations and construction is expected to begin in March 1995. No proceeds from the IPO have been or will be used for the purchase of the property or the construction of the building.

In June, the Company completed an initial public offering that raised approximately $4.3 million in net proceeds. The net proceeds are expected to be used to acquire other companies, assets, and/or product lines that either complement or expand Avert's existing business and to develop or further develop any assets or product lines acquired.

Through its headquarters in Fort Collins, Avert is an information services company that provides employment background checking. Products and services include workers' compensation histories, driving records, criminal records, previous employment verification, credit histories, education verification and social security number validation. A background check can be completed in 24 hours for $3.50 to $28.00 per report.

-0-

EARNINGS RECAP      Fourth Quarter Ended           Year Ended
                        December 31,              December 31,
                      1994         1993         1994        1993
                         (unaudited)                (audited)

Revenue            $ 1,237,300  $  908,100   $ 4,704,800  $ 3,537,700
Net income         $   244,100  $   57,600   $   969,900  $   600,700
Net income per
 common share      $       .07  $      .02   $       .33  $       .25
Weighted average
 shares outstanding  3,442,000   2,442,000   2,967,000      2,442,000

BALANCE SHEET DATA                     December 31,    December 31,
                                           1994            1993

Working Capital                      $   6,444,000   $   1,396,100
Total Assets                         $   7,499,100   $   2,144,500
Total Liabilities                    $     520,900   $     518,400
Shareholders' Equity                 $   6,978,200   $   1,626,100

CONTACT: Avert, Inc.

Dean Suposs, 303/484-7722

Pfeiffer Public Relations, Inc.

Kim Smith, 303/393-7044