YTB International Reports Record First Quarter Results

YTB Intl Press Releases > YTB International Reports Record First Quarter Results

YTB International Reports Record First Quarter Results
YTBL Generates, On a Consolidated Basis, 1 Cent EPS Versus Year-Earlier Loss; YTBL Raises Full-Year EPS Guidance to 12-14 Cents Per Diluted Share
May 24, 2005 -- ENGLEWOOD CLIFFS, NJ--(MARKET WIRE)--May 24, 2005 -- YTB International, Inc. (OTC BB:YTBL.OB ), a leading provider of Internet-based travel services, announced today record financial results for the first quarter ended March 31, 2005, much of that increase occurring in its Marketing Subsidiary, YourTravelBiz.com, Inc. YTBL generated, on a consolidated basis, revenue of $3,727,076, a 544% increase compared to $578,383 for the same period in 2004. YTBL had net income of $214,365, or $0.01 per diluted share, compared to a loss of $31,985, or $0.00 per share in the 2004 first quarter. YTBL ended the first quarter with $3 million in cash and cash equivalents.

More specifically, the Company's Marketing Subsidiary had 10,384 active Referring Travel Agents (RTAs) at the end of the 2005 first quarter, up 300% from year-end. As of May 1st, the number of RTAs exceeded 12,000. (Each Agent pays $49.95 for their personalized on-line travel agency.) The Marketing Subsidiary generated in excess of $1.4 million in recurring hosting fees from these Agents in the first quarter, in addition to income from sales of travel-related products and services through its Booking and Technologies Subsidiaries.

Michael Brent, YTBL's CEO, stated, "We have now reached a critical mass of Agents, which enables us to increase earnings incrementally as we sign additional Agents. We continue to see strong growth in our business, due to the unique value-proposition we deliver to our travel partners." Scott Tomer, President of the Marketing Subsidiary, stated: "We are pleased to report record results, demonstrating that our referral marketing strategy and the unique relationships we are building with Referring Travel Agents are yielding results."

Business Outlook:

YTBL, on a consolidated basis for all three of its operating subsidiaries, increased its full-year 2005 guidance to revenue of $21 million, representing approximately a 90% increase over 2004. YTBL expects net income of $2.7 to $2.9 million, or approximately $0.12 to $0.14 per diluted share. YTBL's previously announced guidance was for 2005 revenue of $20 million to $20.3 million and net income of $2.5 to $2.7 million, or approximately $0.10 to $0.12 per diluted share.

YTBL's Booking Subsidiary provides support services for the over 12,000 Referring Travel Agents who are currently selling travel-related services. YTBL's Technologies Subsidiary (REZconnect) develops online travel stores for full service agencies and hosts over 6,500 locations, of which 1,500 license consumer sites. REZconnect also operates several franchise systems and storefront locations throughout the USA and in overseas locations. In addition, REZconnect has an agreement with Wal-Mart Stores to operate franchise locations within their SuperCenters. Its latest online business model -- REZcity.com -- just completed its third year and was rated as one of the top 500 franchise companies from Entrepreneur Magazine survey, January 2005 issue. YourTravelBiz.com, Inc. YTBL's Marketing Subsidiary, sells an on-line travel business through a network of independent distributors nationally.

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.