School Bus Contractors

Student Transportation achieves best fiscal year in its history

Posted on September 23, 2010

BARRIE, OntarioStudent Transportation Inc. reported financial results for the fiscal year ended June 30, 2010.

"Our fiscal 2010 operating performance and financial results were the best in our company's 14-year history," said Denis J. Gallagher, chairman and chief executive officer. "The operating results for the year were extremely strong and validate the steady, predictable revenue and cash flow positions of the company. Revenues increased 17 percent and EBITDAR increased 25.6 percent. Our EBITDAR margin improved to a 21.0 percent margin for fiscal 2010 from 19.6 percent in fiscal 2009. Fiscal 2010 marks the first year the company has realized net income on an annualized basis, posting a $9.5 million improvement year over year as we finalized the process of transitioning out of the IPS (trust-like) structure that we have been in since our IPO in 2004."

Revenue for fiscal 2010 increased to $267.2 million from $227.9 million for fiscal 2009 and EBITDAR improved to $56.2 million from $44.7 million for the same period last year. Net income for fiscal year 2010 amounted to $2.7 million or $0.05 net income per common share, as compared to a net loss of $6.8 million or $(0.16) net loss per common share recorded for the fiscal year 2009.

"We have secured a 7- to 8-percent increase in annualized growth of revenues over fiscal 2010 despite some school district cutbacks in routes due to current budget constraints, along with an increase in competitive bidding," Gallagher said. "With the opportunities in our current pipeline and the continued focus on our Education Stimulus Plan, there is certainly the potential for additional growth over the level already achieved as we start fiscal 2011. Our regional teams renewed a significant amount of long-term contracts this year securing our future revenues."

"As a result of our steady, predictable growth achieved since our IPO in 2004, we have been able to maintain stable dividend payments to our shareholders for the past six years," Gallagher added. "We enter fiscal 2011 with a balance sheet that is stronger than ever, continued access to capital and strong shareholder support. We plan to utilize the current trading multiple in connection with our growth strategy, which we believe will continue to create shareholder value as we move forward. We are pleased to see our share price bask at the levels achieved in 2007-2008 and we outperformed the S&P/TSX Composite Index this past fiscal year. I am extremely pleased that the market has recognized our strengths, yet understands our challenges."

Student Transportation's interim financial statements, notes to financial statements and management's discussion and analysis will be available at www.sedar.com or at the company's Website at www.rideSTA.com.

Management will host a conference call and live audio Webcast to discuss Student Transportation's results for fiscal year 2010 at 11 a.m. EST today, Sept. 23. The call may be accessed by dialing (877) 353-9586 (Canada and U.S.) or (403) 532-8075 (International) and enter the passcode 4101817 #. To access the rebroadcast, visit www.rideSTA.com for the archived Webcast or dial (877) 653-0545 (Canada and U.S.) or (403) 232-0933 (International) and enter the passcode 385256 #.

Related Topics: Student Transportation Inc.

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