STA reports earnings for fiscal year 2008

TORONTO — Student Transportation of America Ltd. (STA) has reported its financial results for fiscal year 2008, which ended June 30.

The company’s revenue increased 22 percent, to $205.2 million from $168.1 million in fiscal year 2007. Its net loss amounted to $7 million, down from $7.1 million the previous year.

"We are extremely pleased with our operating performance and financial results for the past year," said Denis Gallagher, STA chairman and CEO. “We continued our strategic regional growth plan, significantly increasing our Canadian operations with two important acquisitions that created natural hedges for currency and fuel protection, along with winning approximately $10 million in new annual contracts in our U.S. operations for fiscal year 2009."

Gallagher also noted that the company began working with a new investor as part of a $60 million common share private placement offering, and he said that longtime investors have continued to demonstrate their confidence in and commitment to STA by increasing their equity investments.

In related news, this month, the company entered into a series of commodity transactions to reduce its exposure to fluctuations in market fuel prices. Combined with the fuel protection and mitigation clauses included in its contracts, the company now has overall contract fuel protection for the 2008-09 school year at approximately 80 percent.