Published:
YTB International Announces Financial Results for the First Quarter of Fiscal 2008
WOOD RIVER, Ill., May 16 /PRNewswire-FirstCall/ -- YTB International, Inc.
(OTC Bulletin Board: YTBLA) ("YTB" or the "Company"), a provider of
Internet-based travel booking services for travel agencies and home-based
independent representatives inthe United States,Puerto Rico,Bermuda, the
Bahamas, theU.S. Virgin Islands, andCanada, today announced its financial
results for the three month period ended March 31, 2008.
Total revenue for the quarter ended March 31, 2008 increased 76.7% to
$42.7 million, compared to $24.2 million for the first quarter last year. The
Company's property and equipment increased from the December 31, 2007 balance
of $15.4 million to $18.9 million as of March 31, 2008 or 22.7%. The number of
RTAs increased to 138,814 in the first quarter of 2008 from 82,932 in the
comparable quarter of 2007. The Company believes the significant increased
number of RTAs is attributable to the emerging market shift for travel
services to the Internet.
Net loss for the first quarter of 2008 was $3.5 million, or $0.03 per
diluted share, compared to a net loss of $2.2 million, or $0.02 per diluted
share, for the first quarter of 2007. The loss is primarily attributable to
stock awards, and promotional and expansion expenses totaling approximately
$3.1 million. As of March 31, 2008, the Company had $1.3 million in cash and
cash equivalents. Net cash used in investing activities was $4.1 million
during the first quarter of 2008 compared to $1.3 million used in the first
quarter of 2007.
Scott Tomer, Chief Executive Officer of YTB, commented on the first
quarter results, stating, "We are pleased by the significant increase that we
experienced in our top-line results during the quarter. This growth speaks
directly to the demand for our travel related services, and our ability to
meet or exceed specific sales growth objectives through diligent execution. We
are acutely aware that sustainable growth requires reinvestment in our
company, and with this in mind, we incurred several charges during the
quarter, directly related to the promotion of our brand, and the retention of
our top performers and personnel. During the quarter, we also incurred
expenses related to our expansion into three new countries to help build our
international presence. Primarily due to these investments in our company, we
reported a loss for the quarter."
Mr. Tomer continued, "During this first quarter we continued to focus on
the sale of travel by our RTAs, as well as the strengthening of our executive
team. We welcomed two new members to our Board of Directors, Mr. Paul Hemings
and Mr. Burt Saunders, and we are excited by the valuable experience that they
bring from their respective fields. Looking forward, we plan on continuing to
execute our stated mission to revolutionize the travel field by offering
affordable travel and unique opportunities for motivated individuals to
participate within this burgeoning industry.
"We see our recent move to the Over-The-Counter Bulletin Board as a
positive step forward for us, and welcome the new investors that are now able
to participate in the growth of our company."
About YTB International
Recognized as the 35th largest seller of travel in the U.S. in 2006 by
Travel Weekly, YTB International, Inc. provides Internet-based travel booking
services for home-based independent representatives inthe United States,
Puerto Rico, theBahamas,Canada,Bermuda, and theU.S. Virgin Islands.
The Company operates through three subsidiaries: YourTravelBiz.com, Inc.,
YTB Travel Network, Inc., and REZconnect Technologies, Inc. YourTravelBiz.com
focuses on marketing online travel websites through a nationwide network of
independent business people, known as 'Reps.' YTB Travel Network establishes
and maintains travel vendor relationships, processes travel transactions of
online travel agents and affiliates, collects travel commissions and pays
sales commissions. Each RTA directs consumers to the YTB Internet-based travel
website. The REZconnect Technologies division operates as a travel vendor
relationship management company and offers franchises of brick and mortar
travel agencies. For more information, visit http://www.ytbi.com/investor.
Statements about the Company's future expectations, including future
revenues and earnings, and all other statements in this press release other
than historical facts are "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, Section 21E of the Securities
Exchange of 1934, and as that term is defined in the Private Litigation Reform
Act of 1995. Such forward-looking statements involve risks and uncertainties
and are subject to change at any time, and the Company's actual results could
differ materially from expected results. The Company undertakes no obligation
to update forward-looking statements to reflect subsequently occurring events
or circumstances.
(Tables Follow)
This document is available on the KCSA Strategic Communications at
www.kcsa.com.
YTB INTERNATIONAL, INC.
Condensed Consolidated Statements of Operations
(Unaudited)
Three months ended
March 31, 2008 March 31, 2007
Net revenues $42,727,567 $24,178,481
Operating expenses:
Operating expenses (exclusive of
depreciation and amortization
shown below) 45,643,718 26,188,396
Depreciation and amortization 535,662 214,032
Total operating expenses 46,179,380 26,402,428
Loss from operations (3,451,813) (2,223,947)
Total other income (expense) 40,162 46,925
Loss before income tax provision (3,411,651) (2,177,022)
Income tax provision 106,000 -
Net loss $(3,517,651) $(2,177,022)
Net loss per share:
Weighted-average shares
outstanding - basic for Class A
and Class B 102,858,468 94,309,323
Weighted-average shares
outstanding - diluted for Class
A and Class B 102,858,468 94,309,323
Net loss per share - basic for
Class A and Class B (amounts $(0.03) $(0.02)
for Class A and Class B shares
are the same under the two-class
method.)
Net loss per share - diluted for
Class A and Class B (amounts $(0.03) $(0.02)
for Class A and Class B shares
are the same under the two-class
method.)
YTB INTERNATIONAL, INC.
Condensed Consolidated Balance Sheets
March 31, 2008
(Unaudited) December 31, 2007
ASSETS
Current assets:
Cash and cash equivalents $1,275,823 $1,730,570
Other current assets, net 38,899,128 39,039,546
Total current assets 40,174,951 40,770,116
Long-term investments 1,000,000 1,000,000
Property and equipment, net 18,941,494 15,432,502
Intangible assets, net 2,376,794 2,395,151
Goodwill 3,128,441 2,979,322
Other assets, net 5,563 316,895
TOTAL ASSETS $65,627,243 $62,893,986
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $48,639,010 $44,417,965
Other long-term liabilities:
Long-term debt, less current
maturities 213,998 219,641
Other liabilities 948,630 947,946
Total other long-term liabilities 1,162,628 1,167,587
TOTAL LIABILITIES 49,801,638 45,585,552
TOTAL STOCKHOLDERS' EQUITY 15,825,605 17,308,434
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $65,627,243 $62,893,986
Investor Contacts:
Garth Russell / Yemi Rose
KCSA Strategic Communications
212-896-1250/ 212-896-1233
SOURCE YTB International, Inc.
Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze,
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