TORONTO, Nov. 13 /CNW/ - Student Transportation of America Ltd. ("STA" or
the "Company") (TSX: STB, STB.UN) today reported financial results for the
first quarter of fiscal year 2009, ended September 30, 2008. All financial
results are reported in U.S. dollars and compared to the same three month
period last year except as otherwise noted.
"Despite global economic conditions, kids are still going to school,"
said Denis J. Gallagher, chairman and chief executive officer. "After
achieving very good year over year results in fiscal 2008, we are pleased with
the continued momentum reflected in the first quarter of this year."
First quarter revenue increased to $38.3 million, from $28.1 million and
EBITDAR(*) improved significantly to $2.1 million from a loss of $0.1 million
from the same period last year. STA's reported net loss for the quarter
decreased to $6.1 million or $0.14 per common share compared to a net loss of
$9.5 million or $0.36 per common share from the same period last year.
STA's first quarter results reflect the seasonality of the school bus
industry. Revenue is typically lower during the first quarter as schools not
being in session during the summer months, and thus the company incurs
operating losses and negative cash flows during the first quarter of the
fiscal year.
The Company's cash available for distributions(*) for the quarter was a
negative $3.2 million and distributions paid amounted to $6.3 million (C $7.3
million). Net cash used in operations was $3.9 million for the quarter. The
subsequent quarters of the fiscal year typically generate excess cash, as
schools are in session and the majority of replacement capital expenditures
have already been made. Due to this historical seasonality, the Company views
distributable cash on an annualized basis.
In July, the Company announced it had expanded its Canadian operations to
southwestern Ontario with the acquisition of Elgie Bus Lines Limited. Elgie
was the company's eighth acquisition in Canada since its IPO, increasing
operations to more than 1,200 vehicles in the province and nearly C $50
million in annualized revenue.
In an effort to simplify its capital structure the Company completed a
second exchange offer which, combined with the first exchange completed last
year resulted in the extinguishment of approximately 63 percent of the
original principal amount of outstanding subordinated notes. The remaining
subordinated notes are callable in December 2009 at C $4.04 each.Reconciliation of Net Income and EBITDAR
(in 000's of US$)
Year over Year - YTD
Three Months Ended
---------------------------
9/30/08 9/30/07
Net Loss $ (6,059) $ (9,468)
Add back:
Recovery of income taxes (3,972) (5,919)
Loss on extinguishment of debt 1,316 10,662
Other non operating (income) expense, net (811) 137
Unrealized loss (gain) on
derivative contracts 3,614 (3,452)
Non-cash stock compensation 914 1,069
Interest expense 2,907 3,560
Amortization expense 707 590
Depreciation and depletion expense 3,120 2,078
Operating lease expense 354 644
------------- -------------
EBITDAR $ 2,090 $ (99)
------------- -------------
------------- -------------
Reconciliation of Cash Flow Provided by Operations and Cash Available
for Distributions
(in 000's of US$)
Three Months Three Months
Ended Ended
9/30/08 9/30/07
------- -------
Cash flows used in operating
activities $ (3,861) $ (6,745)
Adjustments:
Changes in non-cash working
capital items 3,758 2,750
Changes in other assets
and liabilities 34 (361)
Non-operating cash flows (924) 228
Cash interest expense 2,730 3,402
------------- -------------
Subtotal 1,737 (726)
Less:
Interest expense (other than
noncash and IPS Subordinated Notes) (1,367) (1,141)
Dividends on Class B-Series Two
common shares (146) (85)
Net realized foreign currency gain 942 68
Cash taxes paid (438) (109)
Maintenance capital
expenditures, net (3,978) (3,793)
------------- -------------
Cash Available for Distributions US$ $ (3,250) $ (5,786)
------- ------------- -------------
------- ------------- -------------
Total Distributions - US$
Interest on IPS Subordinated Notes US$ $ 1,154 $ 2,035
Dividends on IPS common shares US$ $ 1,206 $ 2,108
Dividends on common shares US$ $ 3,920 $ 1,164
------- ------------- -------------
Total Distributions US$ $ 6,280 $ 5,307
------- ------------- -------------
------- ------------- -------------
Total Distributions $Cdn $ 7,290 $ 6,041
------- ------------- -------------
------- ------------- -------------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.
Annual Meeting of Investors
STA will hold its Annual General Meeting on Thursday, November 13, 2008
at 2 p.m (ET) at the Le Méridien King Edward Hotel, the Windsor Ballroom at 37
King Street East in Toronto. Following the formal meeting, there will be a
presentation by management and a brief question and answer session for
shareholders, analysts, and institutional investors. The meeting will also be
webcast live at STA's web site at www.rideSTA.com.
Profile
Founded in 1997, Student Transportation is the fourth-largest provider of
school bus transportation services in North America, conducting operations
through local operating subsidiaries. Student Transportation has become a
leading school bus transportation company by aggregating operations through
the consolidation of existing providers and conversion of in-house operations
and currently operates more than 5,600 school vehicles in North America. For
more information, please visit www.rideSTA.com.
(*) Non-GAAP Measures
EBITDAR is a non-GAAP financial measure, but management believes it is
useful in measuring STA's performance. Readers are cautioned that this measure
should not be construed as an alternative to net income or loss or other
comparable measures determined in accordance with GAAP as an indicator of the
Company's performance or as a measure of its liquidity and cash flow. The
Company's method of calculating non-GAAP measures may differ from the methods
used by other issuers and accordingly, the Company's non-GAAP measures may not
be comparable to similarly titled measures used by other issuers.
Cash available for distributions is a non-GAAP measure, and is not
intended to be representative of cash flow or results of operations determined
in accordance with GAAP. Investors are cautioned that cash available for
distribution, as calculated by the Company, is unlikely to be comparable to
similar measures used by other issuers.
Forward-Looking Statements
Certain statements in this news release are "forward-looking statements"
within the meaning of applicable securities laws, which reflect the
expectations of management regarding, among other matters, STA's revenues,
expense levels, cost of capital, financial leverage, seasonality, liquidity,
profitability of new businesses acquired or secured through bids, borrowing
availability, ability to renew or refinance various loan facilities as they
become due, ability to execute STA's growth strategy and cash distributions,
as well as their future growth, results of operations, performance and
business prospects and opportunities. Forward-looking statements generally can
be identified by the use of forward-looking terminology such as "may", "will",
"expect", "intend", "estimate", "anticipate", "believe", "should", "plans" or
"continue" or similar expressions, and the negative forms thereof, suggesting
future outcomes or events.
These forward-looking statements reflect STA's current expectations
regarding future events and operating performance and speak only as of the
date of this news release. Forward-looking statements involve significant
risks and uncertainties, should not be read as guarantees of future
performance or results, and will not necessarily be accurate indications of
whether or not, or the times at or by which, such performance or results will
be achieved. A number of factors could cause actual results to differ
materially from the results discussed in the forward-looking statements,
including, but not limited to, the inability of STA to control its operating
expenses, its significant capital expenditures, its reliance on certain key
personnel, the possibility that a greater number of its employees will join
unions, its acquisition strategy, its inability to achieve our business
objectives, significant competition in its industry, rising insurance costs,
new governmental laws and regulations, its lack of insurance coverage for
certain losses, environmental requirements, seasonality of its industry, its
inability to maintain letters of credit and performance bonds and the
termination of certain of its contracts for reasons beyond its control.
Material factors and assumptions that were relied upon in making the
forward-looking statements include the number of Notes acquired pursuant to
the Exchange Offer, contract and customer retention, current and future
expense levels, availability of quality acquisition, bid and conversion
opportunities, current borrowing availability and financial ratios, as well as
current and historical results of operations and performance. Although the
forward-looking statements contained in this news release are based upon what
STA believes to be reasonable assumptions, investors cannot be assured that
actual results will be consistent with these forward-looking statements, and
the differences may be material. These forward-looking statements are made as
of the date of this news release and STA assumes no obligation to update or
revise them to reflect new events or circumstances, other than as required by
applicable law.
For further information: INVESTOR CONTACTS: Student Transportation of
America Ltd., Denis J. Gallagher, Chairman and CEO, (732) 280-4200; Patrick J.
Walker, Executive VP and CFO, (732) 280-4200; Keith P. Engelbert, Director of
Investor Relations, (732) 280-4200, (732) 280-4213 (FAX), Email:
kengelbert@rideSTA.com, Website: www.rideSTA.com; MEDIA CONTACT: Lynette
Viviani, (973) 968-7929 office, (973) 534-1004 mobile, lviviani@rideSTA.com
