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BARRIE, Ontario, Nov. 7, 2013 (GLOBE NEWSWIRE) -- Student Transportation Inc. ("STI" or the "Company") (TSX:STB) (Nasdaq:STB) today reported financial results for the first quarter of fiscal year 2014, ended September 30, 2013. All financial results are reported in US dollars except as otherwise noted. STI's first quarter results reflect the normal seasonality of the school bus transportation industry. Accordingly, the first quarter results are not considered to be indicative of the Company's annual results.
"The first quarter operating results for fiscal year 2014 were ahead of our internal expectations. Investors understand the seasonality of the school business in the first quarter as July and August reflect low revenues due to schools being closed and higher costs due to our growth. Normally when we have growth like this we have higher first quarter losses, but not this year," said Patrick J. Walker, STI's CFO. "We realized a 19 percent increase in revenue in the first quarter of fiscal 2014 resulting from higher summer revenues, additional operating days in September, price increases and the net new business secured for fiscal 2014. For the first time the contribution from these higher revenues more than offset the higher offseason costs naturally associated with the start up of school operations and additional staff associated with the growth secured for the new year. And this of course is without the effects of Hurricane Sandy which happened in October, our second quarter last year."
Revenue for the first quarter of fiscal 2014 increased to $73.1 million from $61.6 million, and adjusted EBITDA* reflected a loss of ($1.5) million compared to a loss of ($3.5) million for the first quarter of fiscal year 2013.
STI reported a net loss of $8.8 million or $0.11 per common share for the first quarter of fiscal 2014 compared to the prior fiscal year first quarter net loss of $7.6 million or $0.10 per common share. The improvement in adjusted EBITDA* was primarily offset by lower net unrealized gains on currency re-measurement, on currency hedging contracts and the conversion feature of the 6.25 percent convertible debentures, combined with a lower tax benefit, higher operating lease expense and other expense for the first quarter of fiscal 2014 compared to the same period of the prior year.