YTB's Survival questioned after a net loss of $1.9 million

YTB International reported a net loss from operations for the first quarter of 2009 of $1.9 million. In its first-quarter report to the Securities and Exchange Commission (SEC), YTB said that negative current economic conditions and other factors have led to a fall off in the number of active Travel Site Owners (TSOs) in YTB. Net revenues totaled $21.8 million in the first quarter of 2009 compared to $42.7 million in the first quarter of 2008.

YTB said the number of active TSOs has declined during the quarter ending March 31 by a net loss of 18,582 to 73,801 active TSOs from the 92,383 reported as of December 31, 2008. TSOs were formerly known as Referring Travel Agents (RTAs), most of whom work from their homes.

“The Company is also defending against two cases challenging the legality of its network marketing program," YTB said in its report to the SEC. "Litigation claims can be expensive and time consuming to bring and defend against and could result in settlements or damages that could significantly affect financial results.

“The Company’s loss from operations, declining active TSO count, working capital deficiency, uncertainties surrounding the Company’s pending litigation, and the general downturn in the economy raise substantial doubt about the Company’s ability to continue as a going concern,” the report continued.

YTB said it had taken action to ensure that the company will survive, including a consultant to provide recommendations to the Board on cost structure, compliance and other matters to improve overall profitability.


For more information contact:

Daryl D. Alex
Regional Executive
Traverus Travel/ Televerus Cell Phones
1-800-781-3254
1-877-744-3431
225-590-7700

$1 MILLION Fine handed out to YTB

YTB Travel News: As reported by Elizabet Donald:WOOD RIVER -- Illinois has filed a lawsuit against the YourTravelBiz company and California has leveled a $1 million fine against it.

The company and its officers face litigation from Illinois Attorney General Lisa Madigan, according to spokesman Natalie Bauer.

Jonathan Quinn, an attorney for YourTravelBiz, said the company does not have a comment at this time on the Illinois complaint. "We have not been formally served, and when we are we will review the complaint and be in a position to comment," he said.

According to the Illinois complaint filed against YTB on Thursday, the company charged its clients a $450 initial fee plus $50 a month to purchase a travel Web site. The suit alleges that the company misled their clients as to the commissions they received, that advertising showed there was no cost to join. Calling it a pyramid scheme, the complaint alleges that the real money came from referring others to join YTB instead of the travel sales themselves.

According to the suit, the average representative earned about $114 a year, while executives made millions. Madigan alleges that the company violated the Consumer Fraud Act and Uniform Deceptive Trade Practices Act.

This comes after California's lawsuit against the company was settled for a $1 million fine on Thursday.

Also, the company faces a federal class-action lawsuit from former customers.

The class-action suit, filed last year on behalf of more than 1,000 people who participated in the YTB system, seeks more than $100 million in damages.

For more information contact:

Daryl D. Alex
Regional Executive
Traverus Travel and Televerus Cell Phones
1-800-781-3254
1-877-744-3431
225-590-7700