YTB International (fka YTBLQ)

[xanadu]

YTB to merge with Florida company
March 13, 2012 8:10 PM
By SANFORD J. SCHMIDT
The Telegraph

WOOD RIVER - Locally based YTB International Inc., a company that ran afoul of authorities in two states, has agreed in principle to merge with a Florida-based company.

Fort Lauderdale-based LTS Nutraceuticals will rename itself LTS International. The companies said the intent is for YTB to remain the surviving company and continue to sell travel packages.

"We are very excited about the new global capacity that this potential merger agreement could bring our business," YTB Board Chairman J. Scott Tomer said in a statement. "Two companies working together to individually strengthen their own products and services is a first for our industry."

The company did not release any information about the impact of the sale on its Wood River headquarters. The Wood River facility was sold last year, and YTB currently is leasing space from the company that bought the property.

The company also sold off an office in Edwardsville and other assets.

Tomer and other members of his family and associates originally are from The Telegraph area and started the business to allow individuals to market travel deals to consumers. The agents paid money to the company for certain services and earned money for selling travel packages over the Internet.

However, they also earned money by signing up others to do the same thing, and there was more money coming in from signing up others than by selling actual travel packages.

Both California and Illinois sued the company, calling it a "pyramid scheme." Lawyers also filed class action lawsuits.

The company settled the state suits but agreed to change its so-called "pyramid scheme" tactics. Most of the original founders have left the company.

In 2008, YTB took in $162 million. In the first nine months of 2011, revenue was $21.1 million. The company lost $3.3 million in that period and had $189,000 cash on hand.

LTS sells vitamins, supplements and nutraceuticals over the Internet and through other channels.

According to the YTB website, LTS focuses on "people helping people" by developing breakthrough nutritional products that promote positive change and lifelong transformation.

LTS markets its products through multiple channels, including retail, direct sales (direct to consumer via TV, radio, Web and mail), and a new and improved form of person-to-person selling, commonly known as network or multi-level marketing.

The proposed merger would result in substantial cost savings and efficiencies, allowing the LTS company to continue its plan for growth and global expansion. LTS has been approved to operate in Hong Kong, Singapore and Taiwan, and company officials said it will be a great resource as YTB seeks to expand its business into Asia.