BARRIE, ON, Nov. 20 /CNW/ - Student Transportation Inc. ("ST") (TSX: STB) announced at the Annual and Special Meeting of shareholders held on November 12, 2009 the approval of a resolution to change its corporate name from Student Transportation of America Ltd. to Student Transportation Inc. The company's shares will continue to trade under the ticker symbol "STB" on the Toronto Stock Exchange.
"By changing our corporate name it better represents our North American footprint and will serve us well as we continue to grow," said Denis J. Gallagher, chairman and chief executive officer. "We will retain the names Student Transportation of America ("STA") for our U.S. subsidiary and Student Transportation of Canada ("STC") for our Canadian operations. On the local level, we will also continue to retain the identities of the many companies we have acquired, preserving the goodwill they have built with their customers and communities."
As a result of the corporate name change the Canadian Depository for Securities ("CDS") has issued new ISIN/CUSIP numbers for Student Transportation Inc. as follows:
Symbol Description ISIN CUSIP
STB Common Shares CA86388A1084 86388A108
STB.DB.A 7.5% Debentures CA86388AAA66 86388AAA6
STB.UN De-listed July 31, 2009 CA86388A2074 86388A207
The Company also announced that its Board of Directors is considering a dual listing of its common shares on a U.S. exchange. The listing which could happen as early as the fall of 2010 and would require certain regulatory approvals that would allow the company to market and sell its common shares to U.S. investors; something it believes would further increase liquidity by attracting new shareholders.
"Being able to list and market directly in the U.S. would allow us to expand our investor base and increase our relationships with U.S. and international investment banks familiar with our industry," said Gallagher. "While we realize there is additional expense involved in a move to a U.S. exchange, we believe the benefits will greatly outweigh those costs. Investors have shown a real appetite for yield and with our current dividends we should be a welcome addition to most investment portfolios."
About Student Transportation
Founded in 1997, Student Transportation Inc. (ST) is North America's third-largest and fastest-growing provider of school bus transportation services, operating more than 6,300 vehicles. ST'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, ST'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 ST'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 ST'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 ST 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 ST 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 ST 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: INVESTOR CONTACTS: Student Transportation Inc.: Denis J. Gallagher, Chairman and Chief Executive Officer, Patrick J. Walker, Executive Vice President and Chief Financial Officer, Keith P. Engelbert, Director of Investor Relations, (732) 280-4200, (732) 280-4213 (FAX), Email: ir@rideSTA.com, Website: www.rideSTA.com