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YTB International Inc., has just released their financial results for the third quarter, and not surprisingly, the company did not do well.

Currently, the online travel agency which uses independent sales reps to sell travel packages, is under investigation by two different state attorney generals, in Illinois and California, for allegedly operating a pyramid scheme.

Corporate filings (YTBLA: OTC) show pretty meager earnings for the third quarter, showing a profit of only $288,000 in the three months ending September 30th. That is a huge decline from the same quarter last year when the company raked in over $2 million dollars in profit.

Filing with the SEC show that while revenue grew, so did its operating expenses which climbed 13 percent this year. All total, net loss for the nine months ending September 30th was $3.4 million dollars.

“While we are disappointed by the reduction in our net income, we are also aware that much of the softness we are seeing is reflective of both an industry-wide trend and a difficult comparison to last year’s explosive growth,” company CEO Scott Tomer said Monday. “In the face of a looming recession, growing companies face the difficult choice of either cutting back on marketing efforts to save on expenses, or increasing these efforts in order to capture the increasingly selective customer,” he added

The company said that it plans to help raise cash by selling some of their assets, including an office building in Edwardsville as well as the company’s Learjet.

The YTB stock has gotten hammered this year.  From a high of over $4 to where it sits today at around $0.33, the company’s issues continue to mount as concerns about the ongoing lawsuits and financial situation continue to plague them.

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YTB, the embattled online travel website has just announced the launch of their brand new updated website. The direct sales company, which has been in the news lately due to a variety of lawsuits regarding how the company operates, hopes that the new site will attract new users as well as provide visitors with more detailed information about the company.

The newly updated site includes lots of bright bold colors and graphics as well as user friendly tools and improved navigational capabilities but we really liked the old one better. The company has also expanded the content of the site to give users more information on the company and its leaders.

New features on the site include details of the soon to be completed corporate headquarters, features on company founders and a brand new Investor Relations page. The Investor Relations Page is probably the most important due to concerns about the company hiding details about its business practices. Visitors to the site can now take a look at the company’s stock information, SEC filings, press releases, information on the Board of Directors and corporate officers as well as and FAQ section and general corporate information.

“This new site will provide our online visitors with a more exciting and informative look into YTB today and provide a taste of where we are going tomorrow,” said J. Scott Tomer, Chief Executive Officer of YTB.

Regardless of what you think of the company, the new site is worth taking a look at. It is very user-friendly and has a lot of really good information about the company. The new site is big and bold and colorful and chock full of relevant up to date info on the company and its financial standing. The only odd thing about the site is that it seems that it was built purely for investors and those interested in the financial side of the company. There is not a lot of information on how to become an agent for the company, or its compensation plans. Take a look and let us know what you think…….

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YTB has named James M. Tackett as the newest member of their executive team. The company, which has been involved in its fair share of scandal over the last few months, appointed Mr. Tackett as the company’s new Chief Marketing Officer, a role which will no doubt be both important in the near future and difficult, as the company struggles to regain its good name.   With a lot of concern surrounding Florida politician and YTB Board member Burt Saunders, this announcement comes at a good time.

Tackett has an impressive resume within the industry as a talented writer, producer and director with over two decades of experience in TV and video production. Tackett has consulted for some big name direct sales company’s such as Avon, Shaklee, Nikken and Herbalife to name a few. Tackett has also produced in flight programming for United Airlines.

Prior to joining YTB, Tackett worked as a producer with Video Plus, a supplier to the direct sales industry.

“We are excited and honored to include James in our fine executive team,” said J. Scott Tomer, Chief Executive Officer of YTB. “With his broad experience and talent, we have positioned ourselves to take our marketing initiatives to the next level.”

YTB is still dealing with the two class action lawsuits as well as the lawsuit by the California Attorney General.

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We told you recently about politician Burt Saunders, a Florida politician who is currently running for congress. Saunders is a member of the board of YTB, the direct sales travel company that has been under fire in recent months due to claims that they are running an illegal pyramid scheme. Now it seems that Saunders for some reason is not being completely honest about his involvement with the company.

When questioned about his role with the company, Saunders claimed this week that he has only been with the company since June. Record show however that he has been involved with the company since at least 2007 with financial records showing that he received thousands of dollars in 2007 as a paid consultant for the company.

Saunders has also claimed that he does not own any stock in the travel company. However, records from the Securities and Exchange Commission show that on May 23, a month after being elected to the Board of Directors, Saunders was awarded with over 24,000 shares of YTB stock. We have a copy of these records which you can see.  

These allegations bring even more suspicion to both YTB and Saunders. There is no word on how Saunders became involved with the Illinois based company, or how a politician felt it would be in his best interest to get involved in a seemingly illegal pyramid scheme type operation. While not all direct sales companies are bad, or illegal, had Saunders done any investigating into YTB, he would have seen that there have been several complaints lodged against the company to the Better Business Bureau.

If Saunders felt that he, and the company, had not participated in any underhanded activity, why would he, or the company feel compelled to be dishonest about their relationship. I’m sure eventually the truth will come out, and I can’t imagine that it will be good for either party.

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