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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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YourTravelBiz.com,- a subsidiary of YTB travel, has been sued by California Atty. Gen. Jerry Brown for $25 million in fines and restitution. Brown claims that the company is operating an illegal pyramid scheme, and has defrauded thousands out of money.

YourTravelBiz is an online travel company that uses independent distributors to sell its travel products through their own websites and travel agencies. There are two ways to make money through the company, commissions from travel sales and fees for recruiting others to participate in the business.

Brown claims that the business is “immensely profitable to a few individuals on top and a complete rip-off for most everyone else.” “Today’s lawsuit seeks to shut down the company’s unlawful operation before more people are exploited by the scam.”

Calls to YourTravelBiz.com have not been returned. The company has seen huge profits over the last few years. In 2007 they reported revenue of $141.3 million which is a 177% percent increase from the previous year.

In the suit, the L.A. Superior Court claims YourTravelBiz enticed thousands to pay large fees in excess of $1,000 with the promises that not only would they would become millionaires, but they would gain access to travel deals and bargains accessible only to professional travel agents. The suit goes on to claim that in 2007, consumers paid over $103 million to the Defendants for websites and in fees, but made only $13 million in travel commissions. An estimated 62% percent of YourTravelBiz participants did not earn a single dime in travel sales commissions in 2007.

This latest news cant be helping the company’s languishing stock. (OTCBB: YTBLA) which in the last year has seen its shares go from $7 to as low as $0.60 and now hovering at around $1.30. These types of swings are not positive for any company and even less to one that is being accused of fraud.

This is the first lawsuit filed against YTB or its subsidiaries, although there have been rumblings over the last two years from many unhappy former participants in the YTB program. We will give you updates on the case as it moves forward.

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Network Marketing travel company, YTB International, Inc. announced that its Class A common stock has been approved for quotation of the Over-the-Counter Bulletin Board. The company’s stock will continue to be listed under the symbol, “YTBLA” and will move to the OTCBB within the next 30 days. This is a very positive step for the company graduating from the Pink Sheets to the Bulletin Board Market and will provide the company with greater exposure to market-makers and potentially more investors. It also comes at a time when another Network Marketing company, NHT is going in the opposite direction.

YTB has been a bit of a Wall Street darling lately, with the stock and company doing very well. It seems that every month YTB is buying and acquiring other travel companies and expanding the size and presence of the company all over the world.

Top officials at YTB are excited about the move of the stock on the Bulletin Board. CEO Scott Tomer said in a statement. “We believe that this will help to increase the liquidity and visibility of our stock in the financial markets.”

YTB International, Inc operates under three separate subsidiaries including, YourTravelBiz, YTN Travel Network, and REZconnect technologies. YTN is an internet based booking service for all travel arrangements. The company operates through a network marketing business plan. Travel packages are sold by independent representatives around the world, including the U.S., Canada, the Bahamas, Puerto Rico and the U.S. Virgin Islands.

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