YTB International, Inc. reported that its total revenue for the quarter ending September 30 decreased 62 percent to $15.9 million, compared to $42.2 million for the third quarter of 2008. Net income for the quarter improved to $0.36 million compared to a net income of $0.29 million for the same period of 2008. YTB said the decline in revenue during the third quarter was primarily attributable to a decline in the number of new Internet Business Centers (IBCs) sold during the quarter and a decrease in the number of active IBC Site Owners.
Total revenue for the nine months decreased 57 percent to $55.3 million, compared to $127.8 million for the comparable period in 2008. The company's net loss for the nine months was reduced by $0.29 million when compared to the prior year's comparable period. YTB said it decreased its net loss from $3.4 million for the nine months to $3.1 million.
YTB said the company’s overall results were significantly impacted by the sale and related exit costs of the company's formerly wholly-owned subsidiary, REZconnect Technologies, Inc.
YTB said that it was able to significantly decrease general and administrative expenses by $9.5 million in the third quarter of 2009 compared to the same period of 2008. This was attributed to the implementation of YTB’s cost reduction program as well as costs associated with the reduction of IBC sales and active Site Owners.
For the nine months ending September 30, general and administrative expenses were reduced by $15 million when compared with the prior year's comparable period.
"Our team continues to focus on adding additional value for our Site Owners by expanding on our high incentive products and services," said J. Scott Tomer, CEO of YTB Marketing, Inc.
"Though I have only recently been appointed to head YTB, I am pleased with the changes that are taking place," added Robert Van Patten, CEO of YTB. "To be clear, our revenue shortfall is not acceptable. However, we were able to reduce our net loss for the nine-month period and significantly increase our net income for the third quarter. Our results show that our cost cutting initiatives are beginning to take hold, as we have significantly decreased our general and administrative expenses.
"The team that we have assembled is working day and night to ensure that the value that we provide to our current and future Site Owners is clearly communicated," Van Patten continued. "The changes that we have made reflect our desire to have highly specialized team members, working within the areas of their greatest strengths. We feel that we have accomplished this, and now look forward to delivering on our obligation to increase shareholder value, while maintaining our ability to deliver high-quality service offerings."
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