First Student, the largest provider of student transportation in North America, saw revenue and profit gains for fiscal year 2015, according to annual earnings released last month. The company cited alterations in the prices of new contract bids and renewals for the boosts.
The company, which transports roughly six million students across more than 1,300 school districts, said it saw revenues for fiscal year 2015 peak at $2.4 billion, which is up from $2.3 billion last year.
As for operating profits, First Student increased to $177 million, an improvement on the $153 million made in 2014. These returns were a result of a push from parent company FirstGroup plc for a turnaround plan to increase the rates of contract bids and renewals, which proved successful, and made up for losses in other divisions.
With almost a third of its contracts up for renewal in 2014, the company held a 90 percent retention rate with those contracts averaging 4.5 percent price increases.
Currently, with more than half of 2015 contract renewal negotiations completed, First Student said it has seen an average price increase in excess of 5 percent.
“We must continue to deliver a service we can be proud of while ensuring we can do so for the long term, by earning sustainable returns,” said Dennis Maple, president of First Student.
