YTB International Announces Financial Results For 2008
Total revenue for the year ended December 31, 2008 increased 15% to $162.5 million, compared to $141.3 million for fiscal 2007. Net loss for the year ended December 31, 2008 was $4.5 million, or ($0.04) per diluted share, compared to a net income of $3.2 million, or $0.03 per diluted share, for the same period of 2007. The loss was primarily the result of the Company’s good faith efforts and ongoing demonstration of sound corporate principles to absorb any necessary costs associated with improving corporate polices and publications. General and administrative expenses increased by $18.3 million, or 53%, compared to 2007, primarily attributable to the growth in the costs associated with the ongoing implementation of new business strategies and operational initiatives.
Scott Tomer, YTB Chief Executive Officer commented on the 2008 results, stating, “2008 was a challenging year for our entire industry, and the impact of the global financial crisis is reflected in the valuations of the majority of publically traded travel companies. The fallout from the current recession has forced many of us to take a delicate two-tiered approach to our businesses, looking to increase capital reserves, while strategically shifting our spending in order to maintain market share. At YTB, we have made a number of changes in the way we do business to address issues raised by legal inquiries and remove any confusion about our product offerings. Some of those changes involved reserving for the elimination of non-current inventory, which resulted in losses of $3.0 million. We believe those are one-time losses that were necessary in order for the company to continue to grow and improve business practices to build a stronger foundation for the future. We have also worked diligently to shore up our capital reserves, evidenced by major cutbacks in the second half of the year, while also working to increase our travel sales. Specifically, we have taken several cost-cutting measures in the fourth quarter, including cutting our staff by 14%, and we are transitioning to a print-on-demand model to prevent any recurrence of non-current inventory write-downs.”