WOOD RIVER, Ill., Nov. 14 /PRNewswire-FirstCall/ -- YTB International, Inc. (OTC PK: 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, today announced its financial results for the three and nine-month periods ended September 30, 2007.
Total revenue for the quarter ended September 30, 2007 increased 203.5% to $39.9 million compared to $13.1 million for the third quarter last year. Revenue generated from online travel store sales and monthly fees from Referring Travel Agents ("RTAs") in the third quarter of 2007 was $28.7 million, compared to $9.0 million in the third quarter of 2006. Revenue from travel agency commissions in the third quarter of 2007 was $5.5 million, compared to $2.0 million for the same period last year. Also, training programs and marketing materials revenue increased in the third quarter of 2007 to $3.7 million, from $1.5 million in the prior year quarter.
Net income for the third quarter of 2007 was $2.1 million, or $0.02 per diluted share, compared to a net loss of ($4.4) million, or ($0.05) per diluted share, for the third quarter of 2006.
Total revenue for the nine months ended September 30, 2007 increased 207.6% to $95.9 million, compared to $31.2 million for the same period last year. Revenue generated from online travel store sales and monthly fees from RTAs for the nine months ended September 30, 2007 was $69.0 million, compared to $22.5 million for the same period in 2006. Revenue from travel agency commissions for the first nine months of 2007 was $13.9 million, compared to $5.1 million for the same period last year. Training programs and marketing materials revenue for the nine months ended September 30, 2007 was $10.4 million, up from $2.9 million in the same period last year.
Net income for the nine months ended September 30, 2007 was $1.6 million, or $0.01 per diluted share, compared to a net loss of ($6.0) million, or ($0.07) per diluted share, for the same period in 2006.
"We are proud to report our second consecutive quarter of profitability and record revenue and net income figures of $39.9 million and $2.1 million respectively. This accomplishment was achieved despite certain one-time costs incurred during the period that are related to the continued expansion of our infrastructure in order to support our growing number of RTAs and to improve our services," stated Scott Tomer, Chief Executive Officer of YTB International. "In the first nine months of 2007 alone, we have doubled the size of our RTA network to more than 134,000 RTAs, and we see no signs of slowing down. Our success did not go unnoticed. Travel Weekly named us one of the top eleven leisure travel agencies and one of the 35 largest travel agencies overall for 2006."
Mr. Tomer continued, "We have high expectations for YTB International's future and are expanding our infrastructure and training capabilities in order to handle our continued growth. Our new RTAs will need the best tools and training. To meet this need, we recently launched a proprietary Web-based training certification and testing program, 'YTB E-Campus,' designed by Dr. Marc Mancini, one of the travel industry's most highly respected speakers, educators and consultants. This training program offers our RTAs a unique opportunity to hone their skills to successfully sell travel and build their businesses."
About YTB International
Recognized as the 35th largest seller of travel in the U.S. by Travel Weekly, YTB International, Inc. provides Internet-based travel booking services for travel agencies and home-based independent representatives in the United States, Puerto Rico, and the US Virgin Islands. It operates through three subsidiaries: YourTravelBiz.com, Inc., YTB Travel Network, Inc., and REZconnect Technologies, Inc.
YourTravelBiz.com division focuses on marketing on-line travel agencies through a nationwide network of Independent Marketing Representatives, or "IMRs." YTB Travel Network division establishes and maintains travel vendor relationships, books travel transactions of on-line travel agents (RTAs,) collects travel payments and licensing fees, and processes travel commissions. Each RTA sells travel through a personalized Internet-based travel Website. The REZconnect Technologies division builds online reservation systems for suppliers within the travel industry. For more information, visit http://www.ytb.com/.
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. Further information regarding factors that could affect the Company's results is included in the Company's filings with the SEC, including the Company's Annual Report on Form 10-KSB for the fiscal year ended December 31, 2006, filed with the SEC on April 2, 2007.
Investor Contacts: Garth Russell / Yemi Rose KCSA Worldwide 212-896-1250/ 212-896-1233 (Tables Follow) This document is available on the KCSA Worldwide Website at http://www.kcsa.com/.
On July 31, 2007 (the "Reclassification Date"), we filed an Amended and Restated Certificate of Incorporation which authorized the issuance of two classes of common stock - Class A Common Stock and Class B Common Stock - and increased the Company's total authorized capital. Stockholders of record on the Reclassification Date received one share of Class A Common Stock and two shares of Class B Common Stock in exchange for each share of existing common stock held as of the Reclassification Date. All share and per share amounts included in the financial statements presented below reflect this reclassification. The par value of the additional shares of common stock issued in connection with the stock split will be credited to "Common stock" and a like amount charged to "Additional paid-in-capital" in the third quarter of 2007.
YTB INTERNATIONAL, INC. Condensed Consolidated Balance Sheets September 30, December 31, 2007 2006 (Unaudited) ASSETS Current assets: Cash and cash equivalents $4,467,221 $- Restricted cash 2,060,690 1,250,000 Available-for-sale securities 1,000,124 1,014,591 Accounts receivable (less allowance for doubtful accounts of $5,699 in 2007 and $6,919 in 2006) 1,785,782 103,539 Inventory 4,516,489 1,016,690 Notes receivable (less allowance for uncollectible notes of $182,723 in 2007 and $0 in 2006) 1,932,640 1,233,624 Prepaid marketing commissions 26,088,570 12,978,516 Other prepaid expenses and current assets 1,778,163 394,125 Total current assets 43,629,679 17,991,085 Property and equipment, net 13,002,660 6,191,408 Intangible assets, net 2,413,500 2,468,580 Goodwill 2,979,322 2,224,322 Other assets 6,867 14,994 TOTAL ASSETS $62,032,028 $28,890,389 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities: Bank overdraft $- $812,464 Accounts payable and accrued expenses 11,173,987 5,099,248 Current maturities of long-term debt 19,950 21,156 Deferred revenue 31,563,090 14,769,085 Accrued bonuses 117,970 7,435,132 Short-term debt 3,799,470 2,500,000 Total current liabilities 46,674,467 30,637,085 Other long-term liabilities: Long-term debt, less current maturities 227,078 241,659 Deferred revenue, less current portion - 4,366 Deferred tax liability 755,000 - Other income tax liabilities 192,841 - Other liabilities 13,733 23,636 Total other long-term liabilities 1,188,652 269,661 TOTAL LIABILITIES 47,863,119 30,906,746 Commitments and Contingencies (Note 14) STOCKHOLDERS' EQUITY (DEFICIT) Preferred stock, $.001 par value, 5,000,000 shares authorized, none issued and outstanding at September 30, 2007 and December 31, 2006. - - Class A Common stock, $.001 par value, 300,000,000 shares authorized; 32,439,412 and 27,870,454 shares issued and outstanding at September 30, 2007 and December 31, 2006, respectively. 44,889 27,870 Class B Common Stock, $.001 par value, 100,000,000 shares authorized; 64,878,824 and 55,740,908 shares issued and outstanding at September 30, 2007 and December 31, 2006, respectively; convertible into Class A shares on a one-for-one basis 52,429 55,741 Additional paid-in capital 34,844,642 20,212,265 Retained earnings (deficit) (20,773,051) (22,312,233) TOTAL STOCKHOLDERS' EQUITY (DEFICIT) 14,168,909 (2,016,357) TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) $62,032,028 $28,890,389 See accompanying notes to condensed consolidated financial statements. YTB INTERNATIONAL, INC. Condensed Consolidated Statements of Operations (Unaudited) Three months ended September 30, September 30, 2007 2006 NET REVENUES Online travel store sales and monthly fees $28,691,270 $9,015,325 Travel commissions and services 5,536,399 1,963,887 Training programs and marketing materials 3,651,184 1,475,946 Other 1,990,389 681,431 Net revenues 39,869,242 13,136,589 OPERATING EXPENSES Marketing commissions 20,603,925 9,473,964 Travel commissions 3,913,021 1,348,540 Depreciation and amortization 304,243 129,376 Marketing and selling 1,613,890 798,851 General and administrative 11,228,055 5,640,940 Total operating expenses 37,663,134 17,391,671 INCOME (LOSS) FROM OPERATIONS 2,206,108 (4,255,082) OTHER INCOME (EXPENSE) Interest and dividend income 128,804 42,803 Interest expense (23,115) (151,801) Gain (loss) on sale of assets (18,556) - Total other income (expense) 87,133 (108,998) INCOME (LOSS) BEFORE INCOME TAX PROVISION 2,293,241 (4,364,080) INCOME TAX PROVISION 143,750 - NET INCOME (LOSS) $2,149,491 $(4,364,080) NET INCOME (LOSS) PER SHARE: Weighted-average shares outstanding - basic for Class A and Class B 97,209,960 82,162,974 Weighted-average shares outstanding - diluted for Class A and Class B 110,801,031 82,162,974 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. See Note 3): $0.02 $(0.05) 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. See Note 3): $0.02 $(0.05) See accompanying notes to condensed consolidated financial statements. YTB INTERNATIONAL, INC. Condensed Consolidated Statements of Operations (Unaudited) Nine months ended September 30, September 30, 2007 2006 NET REVENUES Online travel store sales and monthly fees $69,031,218 $22,481,964 Travel commissions and services 13,930,824 5,116,529 Training programs and marketing materials 10,364,547 2,949,763 Other 2,592,266 630,820 Net revenues 95,918,855 31,179,076 OPERATING EXPENSES Marketing commissions 55,370,759 19,556,884 Travel commissions 9,398,036 3,319,045 Depreciation and amortization 782,218 262,846 Marketing and selling 4,342,480 1,144,814 General and administrative 24,509,665 12,572,068 Total operating expenses 94,403,158 36,855,657 INCOME (LOSS) FROM OPERATIONS 1,515,697 (5,676,581) OTHER INCOME (EXPENSE) Interest and dividend income 309,358 118,179 Interest expense (27,041) (452,455) Gain (loss) on sale of assets (9,991) 1,000 Total other income (expense) 272,326 (333,276) INCOME (LOSS) BEFORE INCOME TAX PROVISION 1,788,023 (6,009,857) INCOME TAX PROVISION 143,750 - NET INCOME ( LOSS) $1,644,273 $(6,009,857) NET INCOME (LOSS) PER SHARE: Weighted-average shares outstanding - basic for Class A and Class B 97,143,966 82,060,179 Weighted-average shares outstanding - diluted for Class A and Class B 111,144,815 82,060,179 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. See Note 3): $0.02 $(0.07) 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. See Note 3): $0.01 $(0.07) See accompanying notes to condensed consolidated financial statements.
