Two Plus Two-Year Deal Valued at Over $16 Million, Saves School District Money
WALL, NJ, April 22 /CNW/ - Student Transportation Inc. (TSX: STB) today announced that its wholly owned subsidiary and Illinois-based, Positive Connections, Inc. (PCI) has been awarded a contract renewal to provide transportation services to Eastern Carver County Schools District 112 in Minnesota. The extension contract will be for a two-year term with the option to renew for an additional two, valued at just over $4.0 million per school year with annual increases provided.
PCI will replace over 20% of the fleet to newly designed propane-fueled school vehicles with the anticipation that the district will approve more throughout the life on the contract. Last year, over 100 PCI vehicles servicing District 112 each averaged approximately 17,000 miles transporting district students. Both the district and PCI were looking for creative ways to save money on fuel costs which after extensive analysis both agreed propane-fueled buses would be the best alternative-fuel option. District 112 is conservatively estimating $1,500 in fuel costs, per bus, per year.
"We are extremely pleased to be awarded the renewal with District 112 on this Earth Day and look forward to continuing the safe and reliable service we have provided over the years," said Pete Pearson, chief operating officer of Student Transportation's Central Region. "We believe our reputation for providing cost-effective, high quality service played an important part in District 112's decision to utilize alternative-fuel vehicles."
John Thomas, Transportation Director for District 112 said, "I am excited about the future prospects of turning the entire fleet to alternative-fuel vehicles and optimistic the fuel savings will exceed my expectations in the upcoming school year. Working with a progressive company like Student Transportation, Inc and their local company PCI who has experience operating these type of vehicles is reassuring."
ST, Inc is currently operating a similar fleet of the new propane fueled vehicles in Los Angeles, CA and has been openly promoting clean burning fuels as way to save money and renew contracts.
About Student Transportation Inc.
Founded in 1997, Student Transportation Inc. is North America's third-largest and fastest-growing provider of school bus transportation services, operating more than 6,300 vehicles. Student Transportation Inc. 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 Student Transportation Inc. results of operations, expense levels, cost of capital, financial leverage, seasonality, cash flows, performance, liquidity, borrowing availability, financial ratios, ability to execute the Student Transportation Inc. 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 Student Transportation Inc. 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: For further information: INVESTOR CONTACTS: Student Transportation Inc., Keith P. Engelbert, Director of Investor Relations, (732) 280-4200, Email: ir@rideSTA.com, Website: www.rideSTA.com