|Student Transportation Reports Fiscal 2012 Third Quarter Results|
|Wednesday, 09 May 2012 07:44|
BARRIE, Ontario — Student Transportation Inc. ("STI or the "Company") CA:STB +0.89 percent STB -0.09 percent today reported financial results for the third quarter of fiscal year 2012 ended March 31, 2012. All financial results are reported in U.S. dollars except as otherwise noted.
"We are very pleased with the operating results for the third quarter of fiscal year 2012 as the strong momentum established earlier in the year continues into the second half of the current fiscal year," said Denis J. Gallagher, Chairman and Chief Executive Officer. "Revenues and EBITDA* increased 24.6 percent and 31.5 percent, respectively, with EBITDA* margin increasing to 22.5 percent compared to 21.3 percent achieved for the third quarter of last year. Net income for the third quarter of fiscal 2012 nearly doubled compared to last year, as the non-cash, non-operational adjustments impacting the results for the first half of fiscal 2012 lessened to some degree in the third quarter of fiscal 2012."
Third quarter revenue increased $22.3 million to $113.3 million, from $91.0 million and EBITDA* improved $6.1 million to $25.5 million, from $19.4 million for the comparable period last year. Net income for the third quarter of fiscal year 2012 increased to $3.0 million or $0.05 per common share compared to net income of $1.6 million or $0.03 per common share for the third quarter of fiscal year 2011.
"The additional revenues and cash flows from the six acquisitions closed and integrated in the first half of the fiscal year and the nine new bid contracts won for fiscal 2012, along with the recovery of approximately $1.2 million in continued revenue deferrals at the end of the third quarter should continue the positive momentum through the end of the fourth quarter of fiscal 2012," continued Gallagher. "And we are off to a great start to maintain that positive momentum for fiscal 2013."
During March 2012, the Company completed an offering of common shares raising $79.6 million in net proceeds after underwriting fees and expenses. The net proceeds were used entirely to pay down revolver borrowings on the Company's credit agreement. At March 31, 2012, the Company had approximately $116 million in borrowing availability under the credit agreement.
"Our March equity offering was well supported by investors in both Canada and the US. With the repayment on the credit agreement from the equity offering, which re-loads the borrowing availability under the credit agreement, we can continue to take advantage of good growth opportunities as they come along. We have won six new bid contracts, two in Ontario, two in Connecticut and two in New Hampshire, for 2013 as announced towards the end of March, and secured another eight contracts in Texas and Washington that National Express was required to divest by the U.S. Department of Justice in connection with its purchase of Petermann Partners," concluded Gallagher. "We continue to review some final bid opportunities for next year, along with several nice acquisitions that would tuck into our current regional structure. Such opportunities, secured and pending, continue to demonstrate the growth potential in school transportation and the markets we operate in. We will continue our disciplined approach to such growth opportunities to maintain the benefits of our long term contracted business plan."
|Last Updated on Wednesday, 09 May 2012 07:47|