Stock Name: STB
Amount: CAD 0.0464
Announcement Date: 14/09/2011
Record Date: 26/09/2011
Dividend Detail:
Dividends will continue to be paid monthly
BARRIE, ON, Sept. 14, 2011 /CNW/ - Student Transportation Inc. ("STI")
(TSX: STB; NASDAQ: STB), North America's third-largest provider of
school bus transportation services, announced that the Board of
Directors has continued its practice of approving the announcement of
dividends quarterly. Dividends will continue to be paid on a monthly
basis to shareholders of record.
STI will pay a regular monthly cash dividend of C$0.04636833 per common
share on October 17, November 15 and December 15, 2011 to shareholders
of record at the close of business on September 30, October 31 and
November 30, 2011.
STI designates these dividends to be "eligible dividends" pursuant to
subsection 89(14) of the Income Tax Act (Canada) and its equivalent in
any provinces of Canada. These dividends should be considered
"qualified dividends" from a US tax perspective under Section 1(h)(11)
of the Internal Revenue Code of 1986, as amended, subject to the
shareholder meeting the holding period requirement to claim the
qualified dividend treatment.
Denis J Gallagher, Chairman & CEO of the company said, "The Board and I
believe that it is in the best interests of the Company's shareholders
to continue to pay an attractive dividend as we have approved for 83
consecutive months since our IPO in December 2004. We will be reporting
our fiscal 2011 year end results next Thursday which are in line with
internal and our independent analyst expectations. We are off to
another strong year in fiscal 2012 with over 12% year over year growth
booked to date and with many more solid opportunities in the queue. We
have remained disciplined in our approach and will continue to do so.
The dividends we pay represent a commitment to our shareholders who
value simple businesses with consistent results despite market
volatility."
The company recently completed its dual listing on the NASDAQ under the
same STB symbol as on the TSX. Gallagher added, "We are confident US
investors will appreciate the growth and dividends we are bringing and
we are working with several US investment bank analysts to increase
coverage of the company to a greater audience."
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Profile
Founded in 1997, Student Transportation Inc. is North America's
third-largest and most progressive provider of school bus
transportation services, operating more than 7,000 vehicles. Student
Transportation's family of local companies delivers safe, reliable and
cost-effective transportation solutions to school districts throughout
the U.S. and Canada. Services are delivered by drivers, dispatchers,
maintenance technicians, terminal managers and others who are caring
members of their local communities. For more information, please visit www.rideSTA.com.
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.
These forward-looking statements reflect STI's current expectations
regarding future events and operating performance and speak only as of
the date of this news release. Forward-looking statements involve
significant risks and uncertainties, 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 or by which, such
performance or results will be achieved. A number of factors could
cause actual results to differ materially from the results discussed in
the forward-looking statements, including, but not limited to, the
inability of STI to control its operating expenses, its significant
capital expenditures, its reliance on certain key personnel, the
possibility that a greater number of its employees will join unions,
its acquisition strategy, its inability to achieve our business
objectives, significant competition in its industry, rising insurance
costs, new governmental laws and regulations, its lack of insurance
coverage for certain losses, environmental requirements, seasonality of
its industry, its inability to maintain letters of credit and
performance bonds and the termination of certain of its contracts for
reasons beyond its control. Material factors and assumptions that were
relied upon in making the forward-looking statements include contract
and customer retention, current and future expense levels, availability
of quality acquisition, bid and conversion opportunities, current
borrowing availability and financial ratios, as well as current and
historical results of operations and performance. Although the
forward-looking statements contained in this news release are based
upon what STI believes to be reasonable assumptions, investors cannot
be assured that actual results will be consistent with these
forward-looking statements, and the differences may be material. These
forward-looking statements are made as of the date of this news release
and STI assumes no obligation to update or revise them to reflect new
events or circumstances, other than as required by applicable law.
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