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SMALL BUSINESS
YTB International Announces Financial Results for the Second Quarter Ended June 30, 2009
WOOD RIVER, Ill., Aug. 10 /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 quarter ended June 30, 2009.
Total revenue for the quarter ended June 30, 2009 decreased 59% to $18.1 million, compared to $43.7 million for the second quarter of 2008. However, net income from continuing operations increased to $1.3 million in the second quarter of 2009, compared to a net loss of ($0.1) million for the second quarter of 2008. Net loss for the quarter ended June 30, 2009 was ($1.6) million, or ($0.02) per diluted share, compared to a net loss of ($0.2) million, or ($0.00) per diluted share, for the same period of 2008. The net loss was primarily attributable to a decline in the number of new Internet Business Centers ("IBCs") sold during the quarter in addition to discontinued operations costs of ($2.9) million. General and administrative expenses decreased by $2.2 million in the second quarter of 2009 compared to the same period of 2008, primarily attributable to the Company's cost reduction program.
The Company reduced its net loss for the six months ended June 30, 2009 by $0.2 million to ($3.5) million, or ($0.03) per diluted share, compared to a net loss of ($3.7) million, or ($0.04) per diluted share, for the same period of 2008. The Company's six-month results were significantly impacted by the recording of the sale of REZConnect Technologies, Inc., formerly a wholly-owned subsidiary of the Company, and related exit costs at the end of the second quarter of 2009.
As of June 30, 2009, the Company had cash and cash equivalents of $1.0 million.
Scott Tomer, YTB Chief Executive Officer commented, "While our company still has work to do with regard to continued cost cutting, we are bolstered by both the reduction of our net loss for the first half of the year, and the significant improvement in net income from continuing operations in the second quarter. Although our industry continues to feel the effects of the current economic downturn, we remain cautiously optimistic as we are seeing signs of a return of consumer confidence, and we are hopeful that will in turn lead to increased spending on travel. While I am hesitant to say that the worst of the economic turmoil is behind us, I am confident that with our new marketing initiatives and expanded service offerings, we will be able to turn the corner in the near future."
Mr. Tomer concluded, "Looking to the second half of the year, we plan to continue to effectively manage our cost structure, ensuring that we are as agile as possible in order to take advantage of the inevitable market turnaround. Through our ongoing marketing initiatives, we are working to increase travel sales, while simultaneously working to make it easier and more affordable for our Site Owners to manage their businesses. We recognize that today's customers are more value oriented in their purchase decisions, and in turn have responded by expanding the value received in running an IBC by bringing 'in-house' our new 'Shop YTB' where store owners can direct customers to shop for items that they would already normally purchase online, allowing the store owner to receive cash back on these purchases. This is just one of many new programs that we are putting in place with the knowledge that, once the economy begins to turn, the value of our platform will speak for itself."
About YTB International
YTB International, Inc. was recognized as the 25th largest seller of travel in the U.S. in Travel Weekly's 2009 Power List, based on 2008 annual retail value of travel services booked.
YTB 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: YTB Marketing, Inc. (formerly YourTravelBiz.com, Inc.), YTB Travel Network, Inc., and YTB Franchise Services, Inc.
For more information about YTB International visit http://www.ytb.com or http://www.thefactsaboutytb.com.
Certain matters set forth in this news release may contain forward-looking statements that are provided to assist in the understanding of anticipated future financial performance. However, such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. For a discussion of certain factors that may cause such forward-looking statements to differ materially from the Company's actual results, see the Company's reports filed from time to time with the Securities and Exchange Commission including the Company's Annual Report on Form 10-K for the year ended December 31, 2008. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances.
(Tables Follow)
YTB International, Inc.
Condensed Consolidated Balance Sheets
Dollars in thousands (Unaudited)
June 30, December 31,
2009 2008
---------- ------------
ASSETS
------
Current assets:
Cash and cash equivalents $1,003 $1,203
Other current assets, net 10,507 16,576
Total current assets 11,510 17,779
Property and equipment, net 17,471 18,728
Intangible assets, net 2,285 2,322
Goodwill 2,979 2,979
Other assets 72 1,278
TOTAL ASSETS $34,317 $43,086
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities $18,289 $26,942
Other long-term liabilities 2,955 951
TOTAL LIABILITIES 21,244 27,893
TOTAL STOCKHOLDERS' EQUITY 13,073 15,193
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $34,317 $43,086
YTB International, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
Dollars in thousands, except share Three months ended June 30
and per share data --------------------------
2009 2008
---------- ----------
Total net revenues $18,048 $43,700
------- -------
Operating expenses:
Operating expenses
(exclusive of depreciation
and amortization shown below) 16,316 43,133
Depreciation and amortization 678 676
--- ---
Total operating expenses 16,994 43,809
------ ------
Income (loss) from continuing
operations 1,054 (109)
----- ----
Other income (expense):
Interest and dividend income 44 76
Interest expense (22) (36)
Foreign currency translation
gain (loss) 13 (17)
-- ---
Total other income (expense) 35 23
-- --
Income (loss) from continuing
operations before income tax provision 1,089 (86)
Income tax (credit) provision (192) 14
---- --
Net Income (loss) from
continuing operations 1,281 (100)
Net loss from discontinued operations (2,871) (99)
------ ---
Net loss $(1,590) $(199)
======= =====
Net income (loss) per share:
Weighted average shares
outstanding - basic for
Class A and Class B shares 105,627,059 103,183,276
=========== ===========
Weighted average shares
outstanding - diluted for
Class A and Class B shares 105,627,059 103,183,276
=========== ===========
Net income (loss) per share
from continuing operations
- basic* $0.01 $(0.00)
===== ======
Net loss per share from
discontinued operations
- basic* $(0.03) $(0.00)
====== ======
Net loss per share - basic* $(0.02) $(0.00)
====== ======
Net income (loss) per share
from continuing operations
- diluted* $0.01 $(0.00)
===== ======
Net loss per share from
discontinued operations
- diluted* $(0.03) $(0.00)
====== ======
Net loss per share
- diluted* $(0.02) $(0.00)
====== ======
* Amounts for Class A and Class B shares are the same under the
two-class method.
YTB International, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
Dollars in thousands, except share Six months ended June 30
and per share data 2009 2008
---------------------------
Total net revenues $39,420 $85,655
------- -------
Operating expenses:
Operating expenses
(exclusive of depreciation
and amortization shown
below) 38,642 87,938
Depreciation and
amortization 1,336 1,212
----- -----
Total operating expenses 39,978 89,150
------ ------
Loss from continuing operations (558) (3,495)
---- ------
Other income (expense):
Interest and dividend income 71 131
Interest expense (48) (51)
Foreign currency translation
gain (loss) 15 (18)
-- ---
Total other income (expense) 38 62
-- --
Loss from continuing operations before
income tax provision (520) (3,433)
Income tax (credit) provision (82) 119
--- ---
Net loss from continuing operations (438) (3,552)
Net loss from discontinued
operations (3,064) (165)
------ ----
Net loss $(3,502) $(3,717)
======= =======
Net loss per share:
Weighted average shares
outstanding - basic for
Class A and Class B shares 104,715,067 103,020,872
=========== ===========
Weighted average shares
outstanding - diluted for
Class A and Class B shares 104,715,067 103,020,872
=========== ===========
Net loss per share from
continuing operations -
basic* $(0.00) $(0.03)
====== ======
Net loss per share from
discontinued operations
- basic* $(0.03) $(0.00)
====== ======
Net loss per share - basic* $(0.03) $(0.04)
====== ======
Net loss per share from
continuing operations
- diluted* $(0.00) $(0.03)
====== ======
Net loss per share from
discontinued operations
- diluted* $(0.03) $(0.00)
====== ======
Net loss per share
- diluted* $(0.03) $(0.04)
====== ======
* Amounts for Class A and Class B shares are the same under the
two-class method.
For: YTB International, Inc.
Investor Contacts:
Yemi Rose
KCSA Strategic Communications
212-896-1233
SOURCE YTB International, Inc.