YTB: modeFinance Credit Report

Page 1

Wednesday, 06 March 2013

YTB INTERNATIONAL, INC.

MORE Credit Rating

C

D

CC CCC

B

BB BBB

A

AA AAA

key

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TM

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YTB INTERNATIONAL, INC.

Identification number

Not available

Country

United States of America

ZIP code and city

62095 - WOOD RIVER

Address

1901, EAST EDWARDSVILLE ROAD +1 618 655 9477 www.ytb.com information@ytb.com

Legal form

Not available

Account

Consolidated

Incorporation date

1982/06

NACE 2 Sector

7911 - Travel agency activities

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ASKMORE is the modeFinance product which gives the chance to evaluate the credit risk for every company from all around the world.

ASKMORE

Company name

Listed Status

Active

MORE Credit limit

490,000 e

plans 3 types of reports:

Turnover (th e) Rating s-peek

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ASKMORE Basic: This report includes modeFinance ’ s MORE Credit Ratings and MORE Credit Limit to help you in the decision making. It covers all essential information including financial statements of the last three years and descriptive information including trade description and sector analysis. This report type is ideally suited for decisions on transactions with each level of credit risk.

31/12/2009

31/12/2008

27,221

46,731

114,575

CCC

CCC

CCC

16.00%

16.00%

16.00%

100%

100%

100%

Leverage ratio

3.16

1.92

1.84

Total asset/Total liabilities

1.32

1.52

1.54

Current Ratio

0.34

0.60

0.63

Quick Ratio

0.33

0.59

0.58

Probability of default

Plus

Basic

31/12/2010

Confidence Level

TM

Solvency ratios

Liquidity ratios

Profitability and economic equilibrium ratios Return on investement ROI (%) Return on equity ROE (%)

-22.40

-34.79

-7.41

-106.96

-132.98

-29.45

2.32

3.11

3.70

-0.09

-0.01

-0.02

0.48

0.49

0.39

-10.80

-68.24

-44.39

Asset turnover Interest paid weight Gross Profit/Operating revenue Interest Coverage ratios EBIT interest coverage ratio

Analysis and trend of financial strength

modeFinance Headquarter Building A - AREA Science Park Padriciano 99 - 34149 Trieste - Italy Ph.: +39 040 375 5337 Fax: +39 040 375 6741 info@modefinance.com TM

key askMORETM is a registered mark of modeFinanceTM

MORE Credit Rating

D not available

non return

C

CC

extremly pathological pathological

CCC

B

BB

BBB

A

AA

AAA

high danger

weak

sufficient

adequate

good

very strong

extremely strong


YTB INTERNATIONAL, INC.

Wednesday, 06 March 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Sector Analysis Company

Healthy

Balanced

Vulnerable

Risky

Solvency ratios Leverage ratio

3.16

0.80

3.23

8.23

-3.18

Total asset/Total liabilities

1.32

2.25

1.31

1.08

0.93

Current Ratio

0.34

2.00

1.19

1.01

0.77

Quick Ratio

0.33

1.95

1.17

0.98

0.76

Liquidity ratios

Profitability and economic equilibrium ratios Return on investement ROI (%)

-22.40

18.94

5.90

0.91

-10.18

Return on equity ROE (%)

-106.96

25.25

14.80

0.00

-102.10

Asset turnover

2.32

3.25

3.36

2.82

3.19

Interest paid weight

-0.09

0.00

0.04

0.05

-0.04

Gross Profit/Operating revenue

0.48

0.35

0.17

0.12

0.12

-10.80

2,123.00

16.50

0.80

-19.78

Interest Coverage ratios EBIT interest coverage ratio Cash Conversion Cycle (days) Days Sales Of Inventory (DIO)

1

3

3

5

6

Days Sales Outstanding (DSO)

7

10

25

30

24

Days Payable Outstanding (DPO)

14

10

21

33

35

Cash Conversion Cycle (DIO + DSO - DPO)

-6

14

9

11

2

Numer of analyzed companies

-

269

1,118

599

201

CCC

A

BB

B

CC

(Average) Rating

The sector has been chosen according to: international companies in the sector NACE 2 7911 with financial data of year 2010.

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


YTB INTERNATIONAL, INC.

Wednesday, 06 March 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

key

Sector Analysis - Graphs

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

AA AAA


YTB INTERNATIONAL, INC.

Wednesday, 06 March 2013 MORE Credit Rating

C

D

CC CCC

B

BB BBB

A

AA AAA

key

Balance Sheet BALANCE SHEET (th e)

31/12/2010

31/12/2009

31/12/2008

Accounting practice

Local GAAP

Local GAAP

Local GAAP

0.748

0.6942

0.7185

12

12

12

Total assets

11,709

15,005

30,959

Fixed assets

9,022

9,897

18,791

Intangible fixed assets

1,892

1,756

3,809

Tangible fixed assets

2,559

4,465

13,457

Other fixed assets

4,571

3,677

1,525

2,688

5,108

12,169

66

87

959

Exchange rate USD - EUR Number of months

Current assets Stocks

524

468

1,926

2,098

4,553

9,284

390

490

1,045

2,818

5,146

10,917

87

76

74

Other shareholders funds

2,732

5,069

10,843

Total liabilities

8,891

9,859

20,042

Non current liabilities

983

1,329

683

Long term debt

-

-

-

983

1,329

683

7,908

8,530

19,359

-

-

-

Creditors

1,064

885

1,758

Other current liabilities

6,843

7,645

17,602

11,709

15,005

30,959

31/12/2010

31/12/2009

31/12/2008

Debtors Other current assets Cash & cash equivalent Shareholders funds Capital

Other non-current liabilities Current liabilities Loans

Total shareh. funds & liab. NET DEBT (th e) Short term debts

-

-

Long term debt

-

-

-

390

490

1,045

-

-

-

Cash & cash equivalent Net debt

31/12/2010 Working capital

31/12/2009

-

31/12/2008

-475

-330

1,127

-5,220

-3,423

-7,190

31/12/2010

31/12/2009

31/12/2008

Net Current Assets

Days Sales Of Inventory (DIO)

1

1

3

Days Sales Outstanding (DSO)

7

4

6

Days Payable Outstanding (DPO)

14

7

6

Cash Conversion Cycle (DIO + DSO - DPO)

-6

-2

3

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


YTB INTERNATIONAL, INC.

Wednesday, 06 March 2013 MORE Credit Rating

C

D

CC CCC

B

BB BBB

A

AA AAA

key

Income Statement INCOME STATEMENT (th e)

31/12/2010

31/12/2009

31/12/2008

Accounting practice

Local GAAP

Local GAAP

Local GAAP

0.748

0.6942

0.7185

12

12

12

27,112

46,548

112,925

-42

-59

-

109

183

1,651

Operating revenue / turnover

27,221

46,731

114,575

Total operating costs

29,911

52,054

116,972

Costs growth (%)

-43

-55

-

Service costs

-

-

-

Material costs

-

-

-

Costs of employees

-

-

-

-756

2,082

1,995

Exchange rate USD - EUR Number of months Sales Revenues growth (%) Other revenues +/- variation in inventories and contract in progress + Fixed assets own construction capitalized

EBITDA Depreciation EBIT Financial P/L

1,934

7,405

4,392

-2,690

-5,323

-2,397

-182

25

49

Financial revenue

70

107

144

Financial expenses

252

82

96

249

78

54

-2,872

-5,298

-2,348

-20

-2,137

-548

Extr. and other revenue

-

-

-

Extr. and other expenses

-

-

-

-2,892

-7,435

-2,896

Interest paid P/L before tax Extr. and other P/L

P/L before tax + Extr. and other P/L Taxation

123

-592

320

-3,014

-6,843

-3,215

31/12/2010

31/12/2009

31/12/2008

Costs of Good Sold

14,290

23,925

70,259

Gross Profit

12,931

22,806

44,316

Other Operating Expenses

15,621

28,129

46,713

31/12/2010

31/12/2009

31/12/2008

P/L for period

Cash flow Added value

-1,081

562

1,176

-

-

-

31/12/2010 Number of employees

122

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

31/12/2009

31/12/2008

160

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

288


YTB INTERNATIONAL, INC.

Wednesday, 06 March 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

key

Evolutions and trends

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

AA AAA


YTB INTERNATIONAL, INC.

Wednesday, 06 March 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Qualitative information Full overview

It operates as a travel company. It was incorporated in the year 1982 and it conducts its business from its headquarters in Wood River, Illinois. The company offers an interactive, real - time travel booking engine with access to travel inventories with travel industry suppliers to its licensees and to small office and home office entrepreneurs and independent travel agencies. It has two goals. The first idea is to become the world’s largest travel company. The other, provide people with an opportunity to work from home, either full - time or part - time, and take control of their own lifestyle. The company has thousands of people who own travel booking engines in the United States, Bermuda, the Bahamas and Canada. It has been featured in the top 35 largest travel agencies in North America for the last five years straight.

History

Not available.

Primary business line

Operates as a travel company.

Secondary business line

Not available.

Main activity

Services.

Secondary activity

Not available.

Main products and services

Travel services.

Size estimate

Not available.

Strategy, organization and policy

Not available.

Strategic alliances

Not available.

Membership of a network

Not available.

Main brand names

Not available.

Main domestic country

United States of America.

Main foreign countries or regions

Bermuda, the Bahamas and Canada.

Main production sites

Not available.

Main distribution sites

Not available.

Main sales representation sites

Not available.

Main customers

Not available.

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


YTB INTERNATIONAL, INC.

Wednesday, 06 March 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Auditor/Advisor/Bank name

type

address

MARCUM LLP

Auditor

-

Board name

date of birth

nationality

function

Mrs. Kim J Sorensen Mr. Louis C Brock Mr. Andrew Fletcher Cauthen Mr. Paul A Hemings Mr. Jack H Humes

31/07/1943 1952

-

Vice Chairman of the Board, Treasurer, Secretary Director President, Chief Executive Officer, Director Independent Director Independent Director

Mr. Fred E Lutzeier Mr. Burt L Saunders Mrs. Patricia S Williams

-

United States -

Independent Director Independent Director; Board Member YTB International, Inc. Independent Director

Sharehoders (the first twenty shareholders ordered by Direct %) Not available.

Subsidiaries (the first twenty subsidiaries ordered by Direct %) Rating:

YTB TRAVEL NETWORK, INC. Country ISO code NACE Rev. 2, Core code Direct % Total %

US WO -

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

US WO -

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

Rating:

ZAMZUU, INC. Country ISO code NACE Rev. 2, Core code Direct % Total %

2010/12

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

2010/12


YTB INTERNATIONAL, INC.

Wednesday, 06 March 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating:

ENFINITY TRAVEL LLC Country ISO code NACE Rev. 2, Core code Direct % Total %

US MO -

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

US MO -

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

US MO -

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

Rating:

YTB INTERNATIONAL, INC. Country ISO code NACE Rev. 2, Core code Direct % Total %

.62 3 2011/09

Rating:

YTB TRAVEL NETWORK OF ILLINOIS INC. Country ISO code NACE Rev. 2, Core code Direct % Total %

.02 3 2011/03

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

15.2 200 2012/10


YTB INTERNATIONAL, INC.

Wednesday, 06 March 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

ASKMORE rating guide General vision

A credit rating is an opinion of the general creditworthiness of an obligor (issuer rating), or the creditworthiness of an obligor in respect of a specific debt security, or other financial obligation (issue rating), based on relevant risk factors. The Multi Objective Rating Evaluation (MORE) model is essentially used to assess the level of distress of industrial companies by using data included in financial statements. The basic idea of the model is to analyze a set of financial and economic ratios in a predictive corporate bankruptcy model with the purpose of creating a fundamental credit rating model for each industrial sector. Results of the model are obtained by applying newly developed numerical methodologies, drawing together financial theory, data mining and engineering design methodologies. The heart of MORE is a multi dimensional and multi objective algorithm that produces a classification of each company, by taking into account any attributes (such as sector and country) characterizing a firm. The model gives the opportunity to assign a rating to a company even without considering a complete data analysis and allows to process quality information. It induces a better understanding of a company’s strength and weakness thanks to sophisticated data mining tools and taking into account the analyst knowledge. The MORE rating vision is to look at the fundamental economics of the company. The main idea is to evaluate the rating observing every aspect of the economical and financial behavior of the company: better is the equilibrium between the different aspects, better will be the final rating. This is done studying, evaluating and aggregating the most important sections of the financial and economic behavior of a company such as: profitability, liquidity, solvency, interest coverage and efficiency.

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


YTB INTERNATIONAL, INC.

Wednesday, 06 March 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating scale Rating class

Rating macro class

The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent

AAA

AA

Assessment

economic and financial flow and fund equilibrium. Healthy

The company has very strong creditworthiness. It also has a good capital structure and economic and financial equilibrium. Difference from AAA is slight. The company has a high solvency. The company is however more susceptible to the adverse effects of changes in

A

circumstances and economic conditions than companies in higher rated categories. Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial commitments could be affected by serious unfavourable events.

BBB Balanced

A company rated BB is more vulnerable than companies rated BBB. Furthermore the company faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions.

BB

The company presents vulnerable signals with regards to its fundamentals. Adverse business, financial, or economic

B

conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments. Vulnerable

CCC

A company rated CCC has a dangerous disequilibrium on the capital structure and on its economic and financial fundamentals. Adverse market events and an inadequate management could affect with high probability the company’s solvency.

CC

The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the company’s strong disequilibrium could increase. Risky

C

The company shows considerable pathological situations. commitments is very low.

D

The company has not any longer the capacity to meet its financial commitments.

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The company’s capacity to meet its financial

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


YTB INTERNATIONAL, INC.

Wednesday, 06 March 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Fundamental Credit Rating Ratios Analysis area

Ratio

Assessment This measures the level of total liabilities of the company in comparison

Leverage ratio

with equity.

Solvency ratios

Financial ratios

Assets to debt

This indicates company’s solvency. The company shows a level of deficit when the value of this ratio is under one unit.

Fixed Assets coverage ratio

This is calculated only for holdings. It measures the capital structure i.e. whether a company covers the fixed assets with long term capital.

Current ratio

This measures whether a company has sufficient short-term assets to cover its short-term liabilities.

Liquidity ratios This compares current liabilities only to those assets that can be readily

Quick ratio

turned into cash.

Return on Investement(ROI)

This measures the profitability of company investments without regard to the way the investment is financed.

Return on Equity(ROE)

This measures the profitability of the equity.

Asset turnover

This indicates the investments turnover with regards to sales. The level assumed from the ratio depends on the sector in which the company operates.

Profit margin

This indicates the profitability of sales.

Interest Paid coverage

This indicate the ability of the company to cover interest expenses through the economic margins (Gross profit and EBIT) and through the cash flow from operating activities.

Profitability and economic ratios

Interest coverage ratio

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


YTB INTERNATIONAL, INC.

Wednesday, 06 March 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

MORE Credit Limit, Probability of default and Confidence Level MORE Credit Limit

MORE Credit limit is the estimation of the amount of maximum credit that is possible to assign on a commercial relationship with the analyzed company with an outlook of one year. modeFinance used the following values associated with the company analyzed while computing the credit limit:

• Size; • Years in Business; • Average number of suppliers; • Liquidity of the company and the comparison with its sector; • The funds dedicated to be paid to suppliers; • The likelihood that a company may pay its debts in the next 12 months (MORE Ratings).

The credit limit in this report is merely a suggested value of commercial credit limit calculated on the basis of annual public data. This value should be reviewed by paying attention to the Confidence Level value and by using other information such as other business information, news... etc; and private information such as the relationship with client, history of payments, guarantees and the knowledge of the sector.

Probability of default e Confidence Level

In addition to the MORE Rating, modeFinance also estimates the probability of default and provides a level of confidence. The probability of default is the degree of certainty (in quantitative terms) that the company will go into default. As the probability of default is strongly affected by the economic climate that the company is operating in, companies in the same MORE class will not necessarily have the same probability of default. The MORE model can produce a MORE rating even if there is missing data by using an associated confidence level:

Confidence =

P Available Information P Total Information

The level of confidence does not indicate financial confidence in the company. It is a reflection of the variations in availability of financial data across Europe due to filing regulations and suggests the degree of financial detail the MORE rating is able to take into account for each company. For companies with fully populated records a confidence level of 100% would be applied: companies where no financial data is provided, 0%. This puts the MORE rating in a context for the user and aids interpretation.

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


YTB INTERNATIONAL, INC.

Wednesday, 06 March 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Notes and disclaimer NOTES

modeFinance has based the present analysis on the company available financial statements, coming from one or more of the following sources: local providers, Commercial Register (Companies House), websites, modeFinance’s database etc.

DISCLAIMER

All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher modeFinance. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that modeFinance delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such modeFinance can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

Contacts

Info web

modeFinance MORE rating AREA Science Park 34149 Trieste, via Padriciano 99 - ITALY info@modefinance.com www.modefinance.com

Phone

+39 040 3755337

Company Products Where

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


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