BARRIE, Ontario, Feb. 11, 2013 (GLOBE NEWSWIRE) -- Student Transportation Inc. ("STI" or the "Company") (TSX:STB) (Nasdaq:STB) today reported financial results for the second quarter of fiscal year 2013, ended December 31, 2012. All financial results are reported in US dollars except as otherwise noted. Revenue for the second quarter of fiscal 2013 increased 18 percent from the same period last year to $119.4 million from $101.1 million, while adjusted EBITDA* increased 20 percent to $28.4 million compared to $23.7 million for the second quarter last year. STI reported a net income of $3.0 million or $0.04 per common share for the second quarter of fiscal 2013 compared to the prior fiscal year second quarter of $1.3 million or $0.02 per common share. Adding to its future performance the company reported it had over $2 million of deferred revenues in the first half of the fiscal year due primarily to Superstorm Sandy which will be recorded in the third and fourth quarters of this fiscal year. All missed school days from the storm will be made up in the school year according to State officials. As normal course of business the Board of Directors approved its quarterly dividend paid monthly to shareholders of record through the end of the fiscal year. The company plans to pay its 100th consecutive monthly dividend in that period. "We are pleased with the second quarter results which were an improvement over the prior year same quarter and in line with our internal expectations despite the storm," said Denis J Gallagher, Chairman and CEO. "The improvement reflects the continued momentum of the growth secured in the prior fiscal year as well as a disciplined focus on controls we put in place to reduce our fuel costs despite higher market prices year over year. As previously stated, we have secured an approximate 15 percent increase in annualized revenue for fiscal 2013."
New Contract Win Largest in Company's History
The Company previously reported it has been awarded its largest contract in its history with the City of Omaha Public Schools. The contract, which begins this July for the fiscal 2014 year, includes over 400 new state-of-the-art alternative fuel vehicles plus an additional 100 new vehicles designed for longer trips. The Liquid Petroleum Gas (LPG) vehicles represent a significant change in the company's fleet profile and will reduce the City of Omaha's carbon footprint dramatically as part of the city's recently launched program. The company said additional contract wins for fiscal 2014 are expected and will be announced pending approval by several school boards. "We have been very focused on safety, contract renewals, lowering our payout ratio and improving margins," Gallagher said. "We did have some school closings in late October and early November, primarily due to Superstorm Sandy, and we have over $2.0 million in deferred contracted revenues which we expect to recoup in the third and fourth quarters of this fiscal year. A new comprehensive fuel cost reduction program that increases the use of smart technology and 'alternate fuels' in our vehicles and improves the percentage of customer paid fuel in our contracts is in place. These initiatives will continue to have a positive impact on our results. In the coming school year we will deploy over 500 new LPG vehicles into our fleet. The current cost of LPG per gallon equivalent is roughly 50 percent less than that of diesel fuel and is cleaner burning with 30 percent less greenhouse emissions."| Reconciliation of Net Loss and Adjusted EBITDA * | ||||
| Year over Year | Year over Year | |||
| (Amounts in 000's) | Three Months Ended | Six Months Ended | ||
| 12/31/12 | 12/31/11 | 12/31/12 | 12/31/11 | |
| Net income (loss) | $ 2,979 | $ 1,272 | $ (4,632) | $ (9,992) |
| Add back: | ||||
| Income tax expense (benefit) | 2,972 | 622 | (2,288) | (4,881) |
| Foreign currency gain | (69) | (295) | (5) | (739) |
| Other (income) expense, net | (873) | 777 | (894) | (30) |
| Non-cash (gain) loss on 6.25% Convertible | ||||
| Debentures conversion feature | (1,129) | 1,442 | (740) | 1,082 |
| Unrealized re-measurement loss (gain) on | ||||
| 6.25% Convertible Debentures | 714 | (1,754) | (1,426) | 2,934 |
| Unrealized loss (gain) on foreign currency exchange contracts | 236 | (80) | (322) | 1,521 |
| Non-cash stock compensation | 1,958 | 2,599 | 2,761 | 3,099 |
| Interest expense | 3,604 | 4,189 | 7,418 | 7,951 |
| Amortization expense | 1,035 | 887 | 2,172 | 1,661 |
| Depreciation and depletion expense | 12,501 | 10,491 | 16,858 | 14,001 |
| Operating lease expense | 4,496 | 3,510 | 6,014 | 4,677 |
| Adjusted EBITDA * | $ 28,424 | $ 23,660 | $ 24,916 | $ 21,284 |
| Results of Operations (in 000's of US$, except per share data) | ||||
| Three Months Ended | Six Months Ended | |||
| December 31 | December 31 | |||
| 2012 | 2011 | 2012 | 2011 | |
| Revenues | $ 119,355 | $ 101,125 | $ 180,957 | $ 152,229 |
| Costs and expenses | ||||
| Cost of operations | 85,087 | 71,332 | 141,744 | 117,025 |
| General and administrative | 10,340 | 9,270 | 20,311 | 18,187 |
| Non-cash stock compensation | 1,958 | 2,599 | 2,761 | 3,099 |
| Acquisition expense | -- | 373 | -- | 410 |
| Depreciation and depletion expense | 12,501 | 10,491 | 16,858 | 14,001 |
| Amortization expense | 1,035 | 887 | 2,172 | 1,661 |
| Total operating expenses | 110,921 | 94,952 | 183,846 | 154,383 |
| Income (loss) from operations | 8,434 | 6,173 | (2,889) | (2,154) |
| Interest expense | 3,604 | 4,189 | 7,418 | 7,951 |
| Foreign currency gain | (69) | (295) | (5) | (739) |
| Unrealized loss (gain) on foreign currency exchange contracts | 236 | (80) | (322) | 1,521 |
| Unrealized re-measurement loss (gain) on | ||||
| 6.25% Convertible Debentures | 714 | (1,754) | (1,426) | 2,934 |
| Non-cash (gain) loss on 6.25% Convertible | ||||
| Debentures conversion feature | (1,129) | 1,442 | (740) | 1,082 |
| Other (income)expense, net | (873) | 777 | (894) | (30) |
| Income (loss) before income taxes | 5,951 | 1,894 | (6,920) | (14,873) |
| Income tax expense (benefit) | 2,972 | 622 | (2,288) | (4,881) |
| Net income (loss) | $ 2,979 | $ 1,272 | $ (4,632) | $ (9,992) |
| Basic net income (loss) per common share | $ 0.04 | $ 0.02 | $ (0.06) | $ (0.16) |
Forward-Looking Statements
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, STI'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 STI'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.CONTACT: INVESTOR CONTACTS: Student Transportation Inc. Patrick J. Walker Executive Vice President and Chief Financial Officer Keith P. Engelbert Director of Investor Relations (843) 884-2720 Email: invest@rideSTA.com Website: www.rideSTBus.com
