YTB International Announces Financial Results for the Second Quarter of Fiscal 2008

Fri Aug 15, 2008 3:40pm EDT

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YTB International Announces Financial Results for the Second Quarter of Fiscal
2008
Total year-over-year quarterly revenue increases 36.5% to $44.8 million

WOOD RIVER, Ill., Aug. 15 /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 and six month periods ended June 30, 2008.
    Total revenue for the quarter ended June 30, 2008 increased 36.5% to $44.8
million, compared to $32.8 million for the second quarter last year. Total
revenue for the six months ended June 30, 2008 increased 53.6% to $87.5
million, compared to $57.0 million for the same six-month period last year.
Scott Tomer, Chief Executive Officer of YTB, commented on the second
quarter results, stating, "Our Company has experienced dramatic growth over
the last 12 months, and we have witnessed an equally dramatic growth in the
revenues achieved during that period. Like many rapidly growing companies, we
have had to increase our spending to ensure that we have the proper
infrastructure in place to support this growth, and to ensure that the quality
of services that we provide does not suffer. We have worked to narrow our net
loss on a sequential basis, and are committed to identifying areas for cost
savings and improved efficiencies within our business."
    Net loss for the second quarter of 2008 was $199,577, or $0.00 per diluted
share, compared to net income of $1.7 million, or $0.02 per diluted share, for
the second quarter of 2007. On a sequential basis, the Company significantly
reduced its net loss from $3.5 million, or $0.03 per diluted share for the
first quarter of 2008, compared to the second quarter of 2008. The loss in the
second quarter of 2008 is primarily attributable to a change in the mix of
marketing commissions, increased costs associated with infrastructure growth,
as well as costs associated with the ongoing implementation of new business
strategies company-wide.
    Net loss for the six months ended June 30, 2008 was $3.7 million, or $0.04
per diluted share, compared to a net loss of $0.5 million, or $0.01 per
diluted share, for the same period of 2007.
    As of June 30, 2008, the Company had $0.6 million in cash and cash
equivalents. Net cash provided by operating activities in the first half of
2008 was $4,694,635 as compared to cash provided by operating activities of
$3,902,411 in the first half of 2007.
    Mr. Tomer continued, "We are very proud to have once again been named as
one of the country's leading travel agencies in Travel Weekly's 2008 Power
List during the quarter, with the highest 2007 over 2006 percentage increase
in travel booked of all companies on the list. Our improvement in travel
bookings represented an 83.7 percent improvement, and this is a remarkable
accomplishment. We understand that the rapid growth of our company is
unsettling to many entrenched traditional travel industry companies, but we
are also equally aware of the very real benefits of our business model. As we
look to the coming quarters, we will continue to work diligently to increase
shareholder value, and to ensure that we continue to provide the best products
and services to the marketplace."
    About YTB International
    YTB International, Inc. was recognized as the 26th largest seller of
travel in the U.S. in Travel Weekly's 2008 Power List, based on 2007 annual
retail value of travel services booked. The Company 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, provides online booking systems, collects
travel commissions and pays travel 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 host agency
for traditional 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 Income

                                                        Three months ended
                                                       June 30,     June 30,
                                                         2008         2007

    Net revenues                                     $44,774,310  $32,806,146

    Operating expenses:
         Operating expenses (exclusive of
          depreciation and amortization shown below)  44,312,869   31,000,102
         Depreciation and amortization                   676,167      263,943

         Total operating expenses                     44,989,036   31,264,045

    Income (loss) from operations                       (214,726)   1,542,101

    Other income (expense)
         Interest and dividend income                     82,891      131,018
         Interest expense                                (37,074)      (1,315)
         Foreign currency translation loss               (17,148)           -

         Total other income                               28,669      129,703

    Income (loss) before income tax provision           (186,057)   1,671,804

    Income tax provision                                  13,520            -

    Net income (loss)                                  $(199,577)  $1,671,804

    Net income (loss) per share:

         Weighted-average shares outstanding -
          basic for Class A and Class B              103,183,276   96,529,578
         Weighted-average shares outstanding -
          diluted for Class A and Class B            103,183,276  105,887,781

         Net income (loss) per share - basic for
          Class A and Class B (amounts for Class A
          and Class B shares are the same under the
          two-class method.)                              $(0.00)       $0.02
         Net income (loss) per share - diluted for
          Class A and Class B (amounts for Class A
          and Class B shares are the same under the
          two-class method.)                              $(0.00)       $0.02



                             YTB International, Inc.
                   Condensed Consolidated Statements of Income

                                                         Six months ended
                                                       June 30,     June 30,
                                                         2008         2007

    Net revenues                                     $87,501,877  $56,984,627

    Operating expenses:
         Operating expenses (exclusive of
          depreciation and amortization shown below)  89,968,254   57,188,498
         Depreciation and amortization                 1,211,829      477,975

         Total operating expenses                     91,180,083   57,666,473

    Loss from operations                              (3,678,206)    (681,846)

    Other income (expense):
         Interest and dividend income                    152,198      180,554
         Interest expense                                (54,097)      (3,926)
         Foreign currency translation loss               (17,603)           -

         Total other income                               80,498      176,628

    Loss before income tax provision                  (3,597,708)    (505,218)

    Income tax provision                                 119,520            -

    Net loss                                         $(3,717,228)   $(505,218)

    Net loss per share:

         Weighted-average shares outstanding -
          basic for Class A and Class B              103,020,872   95,801,451
         Weighted-average shares outstanding -
          diluted for Class A and Class B            103,020,872   95,801,451

         Net loss per share - basic for Class A and
          Class B (amounts for Class A and Class B
          shares are the same under the two-class
          method.)                                        $(0.04)      $(0.01)
         Net loss per share - diluted for Class A and
          Class B (amounts for Class A and Class B
          shares are the same under the two-class
          method.)                                        $(0.04)      $(0.01)



                             YTB International, Inc.
                      Condensed Consolidated Balance Sheets

                                                    June 30,     December 31,
                                                      2008           2007
                                                  (Unaudited)
    ASSETS
    Current assets:
         Cash and cash equivalents                   $632,205     $1,730,570
         Other current assets, net                 33,119,185     39,039,546

         Total current assets                      33,751,390     40,770,116

    Long-term investments, net                        950,000      1,000,000
    Property and equipment, net                    20,727,692     15,432,502
    Intangible assets, net                          2,358,437      2,395,151
    Goodwill                                        3,128,441      2,979,322
    Other assets, net                                 100,443        316,895

             TOTAL ASSETS                         $61,016,403    $62,893,986

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities                           $42,832,076    $44,417,965

    Other long-term liabilities:
         Long-term debt, less current maturities      208,298        219,641
         Other liabilities                            925,281        947,946

        Total other long-term liabilities           1,133,579      1,167,587

             TOTAL LIABILITIES                     43,965,655     45,585,552

             TOTAL STOCKHOLDERS' EQUITY            17,050,748     17,308,434

             TOTAL LIABILITIES AND STOCKHOLDERS'
              EQUITY                              $61,016,403    $62,893,986


    Investor Contacts:
    Yemi Rose / Garth Russell
    KCSA Strategic Communications
    212-896-1233/ 212-896-1250


SOURCE  YTB International, Inc.

Investor Contacts: Yemi Rose, +1-212-896-1233, or Garth Russell,
+1-212-896-1250, both of KCSA Strategic Communications for YTB International,
Inc.
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