Student Transportation Inc. Joins Nasdaq, Achieves Dual-Market Listing in North America
Student Transportation Inc. (STI) entered the U.S. stock market on Sept. 6, 2011, trading under the symbol “STB.” Company CEO and Chairman Denis Gallagher (front- center) rang the bell in Nasdaq’s opening ceremony. STI is now dual-listed on Nasdaq and the Toronto Stock Exchange, where it has paid 79 consecutive monthly dividends since going public in 2004.
School bus contractor Student Transportation Inc. (STI)
joined the Nasdaq Global Select Market last month, expanding the company’s capital-raising opportunities. Te third largest private bus company in North America, STI
was listed on the Toronto Stock Exchange in 2004. Te company trades under the symbol “STB” in both markets. Denis Gallagher, chairman and CEO of STI, said the company
he founded in 1997 is now the appropriate size to join Nasdaq. “We’ve grown nicely, certainly over the last six and a half, seven
years,” said Gallagher, who was joined by a dozen associates as he rang the opening bell on Sept. 6 to signal the start of trading. “Tis is an opportunity for us to bring our growth and dividends to the U.S. We think investors are going to like the growth story. Tey’re going to certainly like the simple business, and they’re going to like the dividends.” A company representative said STI has paid 79 consecutive
monthly dividends since going public in Canada nearly seven years ago. Te Nasdaq listing now allows the Wall, N.J.–based company
to access capital in the states. STI added 10 contract conversions at the beginning of the 2011–2012 school year that are expected to add more than $20 million in revenue. Gallagher said about 80 percent of STI’s total revenue is generated in the United States, and despite the fact that about two-thirds of school districts still own and operate their own school buses in this sluggish econ- omy, the company was better positioned to realize at least 12 percent year-over-year growth in fiscal year 2012. STI’s recent acquisitions include Schumacher Bus Lines and S
& K Transportation Ltd. in Ontario, Canada, and A&B Bus Com- pany in Irwindale, Calif. STI also recently won new contracts in
26 School Transportation News Magazine October 2011
New York, Vermont, New Hampshire, Southern California, New Jersey, Rhode Island and Northern Ontario. All told, the compa- ny operates locations in 12 states and one Canadian province. Gallagher said school bus conversions appear to be on the
rise, after industry insiders had forecasted a spike at the onset of the recession that had yet to materialize despite increasing budget pressures tied to the economy. He pointed out that $18 billion, or two-thirds of the student transportation market, is still owned and operated by school districts. Yet districts are dealing with the tightest budgets and the most reduced capital, and they are being forced to cut school bus programs as well as teacher positions. Earlier this year, South Carolina Gov. Nikki Haley called for
outsourcing of the state’s fleet of school buses as a way to save money. “Tere is an opportunity for us to help school districts that
need capital, need to get out of the business and/or need to replace their fleets or have operating costs savings. So this really gives us the opportunity to raise additional money,” Gallagher added. “When we want to raise money, we can go to the mar- ket. When the school district wants to raise money, they’ve got to go to their taxpayers, and they’ve got to increase taxes. Tat’s just not in favor these days. “Tere’s a better way to do this. Tere’s a better use of capital.
Let us use our capital that we have. You keep yours to keep teachers in the classroom.” Gone are the days that governments are able to funnel bil-
lions of dollars back into education, much less use the money on student transportation, according to Gallagher. As a result, many districts are unable to keep up with new purchases, new technology, fuel costs and employee compensation. ■
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