BARRIE, Ontario — Student Transportation Inc. (“STI”) CA:STB +1.55% STB +2.40% , 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 Oct. 15, 2012, Nov. 15 and Dec. 17 to shareholders of record at the close of business on Sept. 28, 2012, Oct. 31 and Nov. 30.
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 U.S. tax perspective under Section 1(h)(11) of the Internal Revenue Code of 1986, as amended, subject to the shareholder meeting and the holding period requirement to claim the qualified dividend treatment.
Denis J. Gallagher, chairman and chief executive officer of the company said, “We have completed another fiscal year consistent with our results of recent years. We anticipate announcing our operational results for fiscal year 2012 as we have historically towards the end of September. Right now, we are focused on providing the safest transportation to our over 700,000 students who are headed back to school. We greatly appreciate the support we have received from shareholders.”
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 9,000 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.rideSTBus.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.
