Increasing Regional Density, Maintaining Contract Renewals, Integrated
BARRIE, ON, May 16 /CNW/ - Student Transportation Inc. (STI) (TSX: STB)
announced that it has been awarded several new contracts to provide
pupil transportation beginning in the upcoming school year. The long
term agreements will add about 250 vehicles and USD $13 million of
annualized revenues. All these contracts increase the regional density
of existing and new markets the company entered as part of its
acquisition and growth strategy.
The new contract wins cover operations in Southern California, New
Jersey, Rhode Island and Northern Ontario in Canada. The contract wins
in Rhode Island were awarded subsequent to the recent acquisition of
Ocean State Transit, which was a new state for the company. The New
Jersey, California and Ontario Canada contract wins are "tuck-in's" to
existing regional operations.
"These are very strategic bid wins for us and it's early in the season.
Combined with our continued contract renewals which are key ingredients
of a successful growth company, we are well poised for another solid
year in fiscal 2012. We have several more bids to consider and many
opportunities in the pipeline. Recently, interest in the conversion of
school district-owned operations is increasing, and we are pleased to
have the opportunity to partner with these districts through their
Request for Proposal process," said Chief Operating Officer Patrick
Vaughan. "We look forward to serving our new customers and getting
involved in the local communities, which contributes to our success. We
know this is a local business."
The company also reported the three recently completed acquisitions in
Western, New York, New Jersey and Rhode Island are already fully
integrated into the regional structure of the company's operating
subsidiary in the U.S. "We look forward to their positive contributions
in the fourth quarter and beyond," Vaughan noted.
About Student Transportation
Founded in 1997, Student Transportation Inc. (STI) is North America's
third-largest and fastest-growing provider of school bus transportation
services, operating more than 7,000 vehicles. STI's family of local
companies delivers safe, reliable and cost-effective transportation
solutions to school districts throughout the U.S. and Canada. Services
are delivered by drivers, dispatchers, maintenance technicians,
terminal managers and others who are caring members of their local
communities. For more information, please visit www.rideSTA.com.
This news release contains "forward-looking statements" within the
meaning of applicable securities laws, which reflects the expectations
of management regarding STA's results of operations, expense levels,
cost of capital, financial leverage, seasonality, cash flows,
performance, liquidity, borrowing availability, financial ratios,
ability to execute the STA's growth strategy and cash distributions.
Forward-looking statements generally can be identified by the use of
forward-looking terminology such as "may", "will", "expect", "intend",
"track", "targeted", "estimate", "anticipate", "believe", "should",
"plans" or "continue" or similar expressions suggesting future outcomes
or events. These forward looking statements reflect STA's current
expectations regarding anticipated future events, results,
circumstances, performance or expectations, which are not historical
facts. Forward looking statements involve significant risks and
uncertainties, and 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 which or by the
performance or results will be achieved. A number of factors could
cause our actual results to differ materially from the results
discussed, expressed or implied in any forward-looking statement made
by us or on our behalf, including, but not limited to the factors
discussed under "Risk Factors" in our Annual Information Form. These
forward looking statements are made as of the date of this news release
and, except as required by applicable law, we undertake no obligation
to publicly update or revise any forward-looking statement, whether as
a result of new information, future events or otherwise.
SOURCE Student Transportation Inc.
For further information:
Student Transportation Inc.
Patrick J. Walker
Executive Vice President and Chief Financial Officer
Keith P. Engelbert
Director of Investor Relations
(732) 280-4213 (FAX)