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 in the United States, Puerto Rico, Bermuda, the
Bahamas, the U.S. Virgin Islands, and Canada, 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 in the United
States, Puerto Rico, the Bahamas, Canada, Bermuda, and the U.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
http://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.
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Related links:
http://www.ytbi.com/investor
http://www.kcsa.com
CONTACT:
Investors: Garth Russell, +1-212-896-1250, or
Yemi Rose, +1-212-896-1233, both of KCSA Strategic Communications
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