BARRIE, Ontario, May 7, 2014 (GLOBE NEWSWIRE) -- Student Transportation Inc. ("STI" or the "Company") (TSX:STB) (Nasdaq:STB) today reported financial results for the third quarter and first nine months of fiscal year 2014, ended March 31, 2014. All financial results are reported in US dollars except as otherwise noted.
Revenue and Adjusted EBITDA* for the third quarter of fiscal 2014 were $138.3 million and $26.7 million, respectively, compared to $120.5 million and $25.9 million for the third quarter of fiscal 2013. The reported net income for the third quarter of fiscal 2014 was $2.6 million, or $0.03 per share, compared to $1.8 million, or $0.02 per share for the third quarter of fiscal 2013.
"The operating results for the third quarter as imagined were negatively impacted by the extreme winter weather conditions throughout North America during the period," said Denis J. Gallagher, Chairman and CEO. "While we experienced harsh weather issues in the second quarter during November and December, weather conditions worsened in January and February and continued into the first part of March in some operating areas. Our deferred revenue at the end of the third quarter totaled $7.2 million as a result of weather related school cancellations. As we have seen historically we do recover substantially all these contracted days and generally about half of that revenue falls to our Adjusted EBITDA* line. In addition to such revenue deferrals, we did experience higher than normal additional labour, fuel and maintenance costs due to the extreme severity of this year's winter. On a positive note we did close on the acquisition of assets from Atlantic Express on February 10, 2014. As we previously reported, AE filed for bankruptcy protection and we were able to acquire their California assets, including 425 vehicles and several school contracts at a very favourable rate, under an agreement that was approved by the bankruptcy court. The acquisition resulted in a non-cash bargain gain of $2.8 million, net of tax, during the quarter, as the price paid was lower than the fair value of the assets purchased. More importantly, we have also renewed those contracts for extended periods of five years or more," added Gallagher.