Student Transportation Second Quarter Results
Increased Revenue, Cash Flow, Earnings and Margin
TORONTO (Feb. 13, 2008) - Student Transportation of America Ltd.today reported financial results for the second quarter of fiscal 2008 ended December 31, 2007. All financial results are reported in U.S. dollars and compared to the same three month period last year except as otherwise noted.
Second quarter revenue was $54.5 million, up 16.2 per cent from $46.9 million. Net income for the quarter was $0.7 million, or $0.02 per common share, compared to a net loss of $2.4 million or a $0.12 net loss per common share.
EBITDAR(*) for the second quarter increased to $12.0 million from $10.2 million for the prior year second quarter and cash available for distributions(*) increased to $9.7 million from $8.3 million. The Company paid out C$5.9 million in distributions during the quarter. Net cash provided by operations was $8.5 million for the quarter compared to $3.2 million in fiscal 2007.
"The bottom line is, kids have to go to school. Our recession-resistant business model demonstrates the stability and consistency of our revenue and cash flow," said Denis J. Gallagher, Chairman and Chief Executive Officer. "Year-over-year improvement in our second quarter operating results reflects the gains in strategic growth areas we achieved during our 2007 fiscal year." Subsequent to quarter end, on January 18, 2008, the Company completed its offer for Canadex Resources Limited ("Canadex"), one of the largest independent school bus operators in Ontario. "This strategic acquisition is STA's largest investment in Ontario and will significantly increase our Canadian cash flows at a time when the Canadian dollar is near par with the US," Gallagher said. "The increase in Canadian dollar cash flows acts as a natural hedge in connection with our monthly distributions."
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