Kevah Konner to be Part of Jordan Transportation; Adds to Growing Family
WALL, NJ, Dec. 30 /CNW/ - Jordan Transportation, Inc. an operating
subsidiary of Student Transportation Inc. ("STI") (TSX: STB) announced
it has completed the acquisition, after the previously announced letter
of intent, of Kevah Konner, Inc. based in Pine Brook, New Jersey. The
transaction and closing were contingent upon meeting certain conditions
and receiving various consents and renewals, which have been obtained.
Management expects the deal to be immediately accretive to shareholders
of its common stock. The acquisition will add over 100 vehicles and
annualized revenues of US$4.8 million for Student Transportation, Inc.
"Kevah Konner has been serving Northern New Jersey communities for over
75 years," said Mark Jordan, President of Jordan Transportation, Inc.
and Director of Operations for STI. "We are excited about the combined
opportunities this transaction brings and pleased to welcome the entire
staff of Kevah Konner to the family of companies we operate. This is a
local hometown company with great staff and dedicated drivers and it
fits very well with our strategy of increasing regional density of
operations in New Jersey. While we plan to convert the name and run
the operation as Jordan Transportation, we will continue the tradition
of service excellence both family companies have developed over the
past 100 years."
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 6,700 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.
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, STI'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 STI'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 STI'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 STI 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 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 STI 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 STI assumes no obligation to update or revise them to reflect new
events or circumstances, other than as required by applicable law.
SOURCE STUDENT TRANSPORTATION INC.
For further information: 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)