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YTB CEO Resigns, Company Delays Annual ReportMay 16, 2012 By: Newswire Travel Agent
Multi-level marketing firm YTB International reports that Robert M. Van Patten has resigned as president, chief executive officer, interim chief financial officer and a member of the Board of Directors of YTB International, Inc.
YTB reports the move in a filing with the Securities and Exchange Commission (SEC). The move is effective immediately and the company said it has commenced a search for a replacement.
YTB once claimed thousands of outside contractors selling travel and has been the source of controversy, compounded by financial losses.
J. Scott Tomer will continue as chief executive officer of YTB Travel Network, Inc. and chairman of the Board of Directors of the company, YTB said.
YTB also reported that effective May 15, 2012, the Board appointed Steven Boyd to serve as the company's principal financial and accounting officer. Boyd currently serves as controller.
YTB also said it is implementing a restructuring program aimed at improving profitability and focusing its business strategy. This includes a reduction in force and salaries, the anticipated elimination of non-core products and services and the exploration of growth opportunities, YTB said.
YTB estimates the reduction in force and the reduction in salaries will save approximately $2.4 million in operating costs. The company also said it intends to resume evaluating the potential merger with LTS Neutraceuticals, Inc.
YTB also said the company's annual report on Form 10-K for the year ended December 31, 2011 and quarterly report on Form 10-Q for the quarter ended March 31, 2012 will be "further delayed" but said it is working toward compliance with all reporting obligations.