Student Transportation (STA) Wins New Illinois School Busing Contracts
Continues to see Increased Activity in Privatized Busing
Barrie, ON — Student Transportation of America, Ltd. (STA) (TSX: STB) announced that it has been awarded two new contracts in Illinois to provide transportation services to Flossmoor and Will County School Districts beginning in the 2009 – 2010 school year. STA will add over 50 school vehicles to serve the new contracts and build on the regional density already established in the Illinois market.
The Flossmoor contract is a “tuck-in” with existing operations while the Will County contract once operated in-house by the school district will convert over to STA for the new school year. Due to budget constraints, school districts in over twelve US states reportedly are going down the privatization road or investigating the “conversion” of their school transportation systems.
“These are very strategic contract wins for STA and our Midwest region. We are pleased to complete our sixth conversion and first in Illinois from an in-house operated transportation system to a budget friendly privatized model, “said STA Chairman and CEO Denis J. Gallagher. “The new contracts will expand our regional density in the area and we will continue to look for opportunities that fit our A-B-C strategy.”
As the fourth largest provider of school bus transportation services in North America, STA currently serves more than 200 school districts and continues to pursue strategic growth opportunities through acquisitions, bids and school district conversions (A-B-C) throughout the United States and Canada. The company conducts operations through a family of local operating subsidiaries and regional teams firmly routed in the local communities they serve.
About Student Transportation
Founded in 1997, Student Transportation is the fourth-largest provider of school bus transportation services in North America, conducting operations through local operating subsidiaries. Student Transportation has become a leading school bus transportation company by aggregating operations through the consolidation of existing providers and conversion of in-house operations and currently operates more than 5,600 school vehicles in North America. For more information, please visit www.rideSTA.com
This news release contains “forward-looking statements” within the meaning of applicable securities laws, which reflects the expectations of management regarding STA’s results of operations, expense levels, cost of capital, financial leverage, seasonality, cash flows, performance, liquidity, borrowing availability, financial ratios, ability to execute the STA’s growth strategy and cash distributions. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “track”, “targeted”, “estimate”, “anticipate”, “believe”, “should”, “plans” or “continue” or similar expressions suggesting future outcomes or events. These forward looking statements reflect STA’s current expectations regarding anticipated future events, results, circumstances, performance or expectations, which are not historical facts. Forward looking statements involve significant risks and uncertainties, and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not or the times at which or by the performance or results will be achieved. A number of factors could cause our actual results to differ materially from the results discussed, expressed or implied in any forward-looking statement made by us or on our behalf, including, but not limited to the factors discussed under “Risk Factors” in our Annual Information Form. These forward looking statements are made as of the date of this news release and, except as required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Student Transportation of America Ltd.
Denis J. Gallagher
Chairman and Chief Executive Officer
Patrick J. Walker
Executive Vice President and Chief Financial Officer