On February 29, 2008, YTB International, Inc. (the "Company") acquired all of the outstanding membership interests of Meridian/Silver, LLC, a Florida limited liability company ("Meridian/Silver"), which had been owned 50% by Meridian Land Company, Inc., an Illinois corporation ("Meridian Land") and 50% by an unaffiliated third party. The purchase price for the membership interests was $1.3 million. The only significant asset held by Meridian/Silver is a Learjet 35A, N360LJ business jet (the "Executive Jet"), which is held free and clear of any and all liens and encumbrances. Meridian/Silver is not subject to any material liabilities or contractual obligations. The Company expects to utilize the Executive Jet for the transport of members of its management team for business-related purposes. Meridian Land is controlled by its principals, Timothy Kaiser, M.D. and Clay Winfield, each of whom is a member of the Company's Board of Directors (the "Board"). The acquisition of the Meridian/Silver membership interests was considered and approved by the independent members of the Board. The Company believes that the terms of the acquisition were commercially available terms and were as favorable to the Company as would be from an unaffiliated party in such a transaction.
First a mansion, now a learjet. What is next, dinner with Dennis Kozlowski and Ken Lay?
ReplyDeleteGood thing all the voting stock is the Class B shares that is controlled from the inside. Wouold not want any pesky shareholders getting in the way of corporate greed now would we?
http://travel-pro.blogspot.com/2008/02/seeing-is-believing.html
So, can we infer that the "cmpany" actually sold the jet to themselves? Sort of.... Jsut a way to move funds out of the company and into someone's pockets?
ReplyDeleteAlthough I have to say that it's nto such a bad idea to have a jet for company travel - except for the cost of maintaining/staffing it .... hey, wouldn't it be better to be selling/buying air tickets via their own website so that usage goes up? Then, after buying so many air tickets, they could go to the airlines for free tickets and upgrades (as almost all Agents earn)....... They could even give those earned certificates away.....
nah............
Now we have a Lear 35!!!! How cool is that? Much more efficient in getting around the country to the smaller airports for the tours. Brilliant!
ReplyDeleteOK basher's, go ahead an unleash the jealous comments. Were are ready!
olescorekeeper
No, it appears that the LLC was owned by Kaiser and Winfield (Winfield is their banker) who are both on the Board and an "unnamed" third party. IF I had to guess...Michael Brent.
ReplyDeleteBut this was YTB buying the aircraft. To be honest, a private aircraft does make sense to a degree, but when your business has just shown it's first profitable quarter EVER, it seems like an extravagance. Couple that with your business model of having no employees and all independent sales consultants, I wonder if it is needed for business.
But as AN Insider pointed out and Doug's blog shows, in the stock split, the voting shares were protected and controlled by the insiders so there is not real accountability to the shareholders.
It looked like they took the plane for an 8 minute spin from St. Louis Regional to the Spirit of St. Louis airport yesterday at 1030am
Indeed, they did take it up for a 8 min ride. And before that, March 1, KMKC to KALN and back to KMKC. Each flight was about 40 min. Registration address is in Naples, FL. Aircraft is almost 28 years old.
ReplyDeleteolescorekeeper
Who cares about the jet! Coach deserves it and the multitude are happy to pay for it. The reps and rtas don't hesitate to throw $$ at coach and I'am sure they are as happy with his new toy as he is.
ReplyDeleteI am only sorry that he couldn't afford a newer one. Come on guys! It's not about YOU! This is for the coach! Let's see a few sacrifices please!
Coach has been using that jet since late last Fall.
ReplyDeleteCoach will be traveling all over the country doing meetings in front of thousands. At 74 years old, he works harder than many men half his age. It's all about YTB to him. The RiverHouse mansion's primary use is hosting Directors and their key leaders. And the executive jet allows him to get in front of more people.
Great decision on YTB's part.
Congratulations Eddie. You've just won the First Jealous Comment award. I was wondering who would be the first. lol! And for you to have said, "Who cares about the jet!" Apparently you do..enough to post a childish comment. lol!
ReplyDeleteolescorekeeper
I'm sorry. I don't care about the jet Ole. I feel truly blessed that I'm not paying for it and very happy that you are.
ReplyDeleteLeave off the decimal point, Funny Guy.
ReplyDeleteThere are 186 Directors in YTB and that will double by the end of 2008.
YTB takes good care of those who want to work hard to make Director. Weekly marketing commissions, travel commissions (including travel overrides) monthly residual commissions, profit sharing, BC/BS health insurance and $150,000 in life insurance.
YTB added 2000 new RTAs in 2 days last week, Thursday and Friday.
Did someone say that recruiting is down?
Sorry about that. I responded to John in the wrong post.
ReplyDeleteHello
ReplyDeleteCan anyone tell me how many corn cobs per hour it takes to run a travel agency with 4 hens? The reason why I ask is that someone made the comment that they could be replaced by chimpanzees who could be taught to do a much better job working with my clients. Is this true? I do like the thought of using chimp’s since they have a degree or two more intelligence and would be more attractive to any passersby. Also they can be trained to use the restroom.
I’ve read the book, Care And Feeding Of A Travel Agent (a NY Times Best Seller), but no where can I find the answer to my question. What would the hourly cost be, figuring a 10 hour day? In other words, how many bananas per hour would that amount to for 4chimp’s. I was told we are not talking chicken feed here and it might be quite expensive. Any thoughts?
John said:
ReplyDeletean "unnamed" third party. IF I had to guess...Michael Brent.
I'm not sure where "unaffiliated" turned into "unnamed" but if you want to fit Michael Brent into the mix for added spin...
first profitable quarter EVER
Second actually with a third on the way from what I hear which is bigger than the last two.
Couple that with your business model of having no employees.
YTB has some 400 employees in a beautiful new home office renovation. Well, three buildings currently until the 135,000sq facility is finished. When we move everyone in, we’ll probably lease the second of the three buildings like we currently do the first.
59 acres of land to fill out on as well.
Oh...and we just bought an Agency in Canada, who are new employees.
As an owner of Class B stock I give this move two thumbs up cause Coach has been flying all over the America's helping me build my business.
What a huge waste of money. Everyone knows that the YTB elite fly first class and free because of their outstanding credentials and contributions to the airline industry.
ReplyDeleteDoogie--he is building HIS business. He could give a rats ass about yours as long as you are either sending in the dollars or recruiting people to send in the dollars.
ReplyDeleteIf he was so interested in your business, what aren't you a director? He was pretty interestedin Phil Piccolos business...he shot up to direcotr pretty quickly didn't he? He was interested in Chris Paraldi's business. Poor Doogie is sent to the corner after four years of spending money on ytb defendingf it to the death. you and rodney makea greeat pair
or the airline industry pulled a "Herb" and told YTB to get off their planes for good. LOLOL
ReplyDeleteLooks like ytbscam came off of his shift from flipping burgers to post as "anonymous".
ReplyDeleteHey LB why do you think it is me that posts anonymously? Not once have I hit behind a anonymous post unlike you. Register your name then come talk to me. You should know by now, if I have something to say, I say it. What benefit would I get posting anonymously? Oh and here come the name calling, and I don't flip burgers. And I don't work as a TA. Not sure how many times I have to tell you that.
ReplyDeleteTypical YTB rant....can't answer questions, so answer in insults. For all I know you are the idiot posting under the anonymous tag, and then trying to call me out. Oh you are a smart one...you don't have to be smart to be in YTB, and this just proves it once again.
Scam, I bet you my YTB business that you are flipping burgers. I know it, your out selling Big Macs and I'm out selling travel for all the big companies. Come talk to me when I have made millions off travel commisions. YTB is taking the travel world by storm. I bet we have over 600k worth of travel sales in the first quarter alone.
ReplyDeleteSCAM don't do it.. Big Macs are like $3.49 you will lose money on that bet!
ReplyDeleteHey check it out. I found YTBSCAM on YouTube in true form! No kidding! See for yourself. Click on here...YTBSCAM VIDEO
ReplyDeleteolescorekeeper
Why everyday on here does it resort down to name calling and acting like a 5 year old. Is it an ego thing? Seriously. Who gives a shit who Anon's are, if they want to hide, so be it. Ignore them, respond...but be an adult. Otherwise go back to your PRE-K class.
ReplyDeleteTL,
ReplyDeleteThing is I didn't say a word, and once again the YTB obviously have me on their mind. So they start doing the name calling like they always resort to.
TL,
ReplyDeleteThing is I didn't say a word, and once again the YTB obviously have me on their mind. So they start doing the name calling like they always resort to.
"Scam, I bet you my YTB business that you are flipping burgers. I know it, your out selling Big Macs and I'm out selling travel for all the big companies. Come talk to me when I have made millions off travel commisions. YTB is taking the travel world by storm. I bet we have over 600k worth of travel sales in the first quarter alone."
ReplyDeleteLooks like we have an impersonator . . . maybe YTBscam himself. The above post was not from me.
Isn't this fun?!
Ok so they bought a jet. And a travel agency in Cananda. And a mansion. And thousands of people hand over $495 plus $50 per month to YTB, even though they aren't earning enough money to cover it. THe rich get rich, the poor get poorer....
ReplyDeleteI think that this is a good thing because now the executives can be even more accessible to us as we need them. Executives at most companies have fleets of private planes to jet about the country. I am very happy with how Coach has led this company and is pressing forward.
ReplyDeleteI doubt one single person that blogs negative about YTB has ever stepped through the front doors of YTB therefore are not qualified to say anything objective about YTB. They are comfortable with their misconceptions and hope to bring others down to their levels. Those of us that have been there and seen it, know. Those that haven't, blow their mouths off and advertise their ignorance on the net.
ReplyDeleteI will just toss this in for the time stamp. I believe this is a critical point in YTB's life. Corporate greed is beginning to take over and the massive egos of the executives that lead the company are going to bring it down. The beginning of the end? We shall see.
ReplyDeleteSo how do you explain the existence of YTB since most have no concept of selling travel? Oh wait, that's different.
ReplyDeleteTruly objective comments about Ytb can only be made by people who have been to YTB. All are welcome. Ignorance is one thing. Advertising it on the net is insanity.
ReplyDeleteAnonymous said...
ReplyDelete"I doubt one single person that blogs negative about YTB has ever stepped through the front doors of YTB therefore are not qualified to say anything objective about YTB. They are comfortable with their misconceptions and hope to bring others down to their levels. Those of us that have been there and seen it, know. Those that haven't, blow their mouths off and advertise their ignorance on the net."
Anon, well said. I was one of those YTB skeptics. Before I would breathe a word about this great company, I made the journey to Wood River, IL to meet the founders and talk with folks in the legal department. I have never seen a more professionally operated call center, including the IT department, and I have been to quite a few. Your remarks about those with misconceptions are right on.
olescorekeeper
John, you are so funny! Corporate greed?... what a laughable statement!
ReplyDeleteA company buys a little 28 year old Lear and now it's the beginning of the end? Johnny, I'm sure hope no one is buying what your smoke'n! ;>)
olescorekeeper
Anon--
ReplyDeleteTruly objective comments about Traditional Travel Agents can only be made by people who have been Traditional Travel Agents. All are welcome. Ignorance is one thing. Advertising it on the net is insanity.
Do you feel the above is a valid statement? I mean all I did was replace "YTB" in your comment with "TTA" in mine?
Ole--what do you call it? Corporate malfeasance? Hey, they can do anything they want wiht the $7 million a month the RTAs throw at them. I am just pointing out that probably as a business, YTB has little legitimate use for a corporate jet. IT is not a used Yugo. It is a Lear that cost them $1.3 million.
What call centers have you visited. Please list them and the ones that are so inferior to YTB. I will go back to November and the fine call center that could not even sell me a cruise--I was told to call Carnival directly. Now if your basis of judgment of a good call center is the ability to answer a phone--you are spot on!
John said, "Ole--what do you call it? Corporate malfeasance?"
ReplyDelete"Malfeasance"? That's an act by a public offical that is legally unjustified, harmful, or contrary to law. Gosh John, YTB legally bought a damn Learjet for god sakes. That's "coporate malfeasance"? lol!
John said,"Hey, they can do anything they want wiht the $7 million a month the RTAs throw at them."
Agreed. Let's move on.
John said, "I am just pointing out that probably as a business, YTB has little legitimate use for a corporate jet. IT is not a used Yugo. It is a Lear that cost them $1.3 million."
Even though you carefully hide behind the word, "probably", this is NOT for you to decide John. You have no idea in what capacity this business jet will serve YTB. As for the cost, $1.3 is very reasonable compared to the cost of other bizjets. Example: For almost 7 million you could get this...Learjet 45
John said, "What call centers have you visited. Please list them and the ones that are so inferior to YTB."
Not going to list them. Suffice to say, I recommend you visit YTB headquarters and see the call center for yourself. Truly an amazing sight to behold. The people are intelligent and gracious. The center is spectacularly clean and orderly. The Information Technology department is extremely impressive! For any of you RTA's reading this, please get to a Red Carpet Day and experience what I have. The building is a massive 122,000 square foot Super K-Mart. 22,000 of it is completed. What is really cool is to open the door that leads to the other 100,000 sq ft of open space ready for construction! This is a must see for all!
John finally said, "I will go back to November and the fine call center that could not even sell me a cruise--I was told to call Carnival directly.
Now if your basis of judgment of a good call center is the ability to answer a phone--you are spot on!"
John, don't try to resurrect that old dead horse. That was a HUGE one-day event. Let it go. Maybe Doug can confirm this, but I understand YTB, at times, is adding one employee per day to keep up with the demand. The employment has grown to over 300!
olescorekeeper
Yesterday there were 400 and now it's 300? Hard times for YTB I guess
ReplyDeleteI suspect buying thevery old plane was more of a "favor" to the two Board Members who were selling it!
ReplyDeleteThe cost of flying/maintaining/staffing that jet will not easily be made up ....
Sure it will, because they are going to sell $1 billion travel this year. They'll have plenty of money to schlep the big boys to their mansions / vacation spots around the globe. As long as there is a sucker born every minute, YTB will have someone to drink the kool-aid to pay for it all. Who cares if they aren't making any money, as long as the owners get their joining fees, its all good.
ReplyDeleteLisa -
ReplyDeleteJust when you start to show you have a reasonable side to yourself, you come back with your anti-YTB/MLM buzz phrases. Yuk!
Please - give us something original or go back to your 12 hour TTA days.
By the way: As of 2-26-08, 349 full-time employees at YTB Corporate.
Because I come on this board to read everyone's take. Then the usual BS childish banter starts and gets me all sarcastic.
ReplyDeleteBut is any of it untrue? The big boys are being well fed on the countles sign ups, and its been shown MAJORITY make no money. So they get a LEAR JET to tote around the globe. None of that is really false..maybe my tone was a bit bitchy..
TL -
ReplyDeleteThe FAA flight records are available online. I think you will find that the majority of the travel will be to cities across the US and Canada to meetings for Coach to attend.
YTB just announced a rigorous meeting schedule between now and the August convention. Many Corporate execs stay away from the rank and file. Coach loves to be out with them. He's 74 years old and I'm happy that it allows him frequent access to the field.
YTB has made some other large capital investments recently. They secured 59 acres of land to future expansion. They have just started the construction on the balance of the Corporate Headquarters that will house 1000 employees.
Yes, there is a solid cashflow. But they are, in my opinion, spending it wisely.
LB, You'll only benefit if you can marry up with coaches daughter.
ReplyDeleteTravelLisa said, "As long as there is a sucker born every minute, YTB will have someone to drink the kool-aid to pay for it all."
ReplyDeleteSpeaking of Kool-Aid, I noticed some of you drink it, but I didn't realize some of you wear it.
Hey TL, did Coach John send you some Kool-Aid? I see by your picture you've dusted your cheeks with it. Cherry flavor? ;>)
olescorekeeper
What the hell are you talking about? The picture of me and my daughter? I'd just gotten home from St Croix and had sunburn..sorry..I don't drink Kool-aid, nor do I wear it. Well except when my son spills it on me..
ReplyDeleteDigging deep just to insult me...awww I feel so honored.
Eddie said...
ReplyDelete"LB, You'll only benefit if you can marry up with coaches daughter."
Eddie, a message from Mrs. Cleaver.
"Go home you little Haskell." Click this...
Eddie
olescorekeeper
Hey eveyone, check this out. I found a picture of YTB's Learjet 35A in flight. You can even send this picture by email! Very cool! Click here...
ReplyDeleteYTB's Learjet 35A
You mean you tried and she won't have you? How sad...
ReplyDeleteeddie -
ReplyDeleteYou are such a clever guy. No way any of us can we compete with such a mental giant.
What else can you expect from a pinhead who has SFB's.
ReplyDeleteI surely encourage all the nay-sayers out there to venture to the YTB HQ in Wood River, Illinois to get a first hand view! Also, they will also get to personally talk with the CEOs as well as staff members. Maybe they will learn something. Until they do, all they can do is speculate because of all the misinformation John finds and spews out. John is like the National Enquirer. They take a picture, and then make up a story. John finds misinformation, and misinforms it even more. Just like the Enquirer, you all buy into it.
ReplyDeleteTuesdays are RED CARPET DAYS at the HQ. Go visit! Go Learn!
Proud--when was the last time you were in a TTA office to get a first hand view of what a real travel agent does? To speak with their CEO? Staff members? To learn a little?
ReplyDeleteWhy is it that there are two sets of rules. You are allowed to flame my business model and that is fine. But when I flame yours, it is wrong.
You are a hypocrite among other things---right?
Since I know more about the travel business than coach does I think I'll stay home.
ReplyDeleteWell don't you know God told Coach and the boys to buy a private jet so they can visit their minions who paid for it by their stupidity? You would think the RTA's would get it wouldn't you? Only ones getting rich are the top while they drive rusted out beaters. Praise Coach!
ReplyDelete