MV Transportation, Inc. Reports Record Revenue for 2011
May 08, 2012 (PRLEAP.COM) Business NewsMV Transportation, Inc., including all subsidiaries, joint ventures, partnerships and affiliates (or "MV"), today reported record annual revenues of $829 million, up 14 percent from prior year revenue, and year-over-year revenue growth for the 12th consecutive year. MV also reported net income in line with the prior year's results despite significant investments in the development of enhanced safety training modules, fleet renewal, acquisition and contract start-up costs.
"The year 2011 presented significant challenges to our entire industry due to the increased cost of fuel, maintenance, vehicles and insurance," said Carter Pate, Chief Executive Officer of MV. "I'm pleased to report MV was able to manage these costs through the development of several strategic initiatives, which focus on providing the best value to our customers. Specifically, MV offset rising fuel costs with its fuel hedging program, which allowed us to lock-in fuel costs to eliminate variability and deliver a cost significantly below the Energy Information Administration's national average cost per gallon."
MV also set a new company record in 2011 for the lowest administrative costs in the company's history. The company relocated its Headquarters from Northern California to Dallas in an effort to more centrally locate its support resources for the benefit of its customers and its operating divisions across North America.
Other significant milestones achieved in 2011 include two acquisitions in the student transportation market by MV subsidiary, Reliant Transportation. Reliant Transportation now owns and operates one of the Country's largest school bus fleets. In addition, the company secured its first overseas contract in Saudi Arabia and MV's Canadian subsidiary, MVT Canadian Bus, expanded its presence, now operating coast to coast from Vancouver to Newfoundland/Labrador.
These milestones were achieved through significant investments in the core functions of the company. "By maintaining fiscal control of our business, we were able to increase our safety spend significantly with marked investment increases in all things safety - equipment, technology, driver education and awareness, and awarding safe driving behavior," added Pate.
The company is poised for a strong 2012 with first quarter revenue growth of more than 30 percent and an increasingly strong safety culture. "The industry should expect continued MV growth in 2012 through new contracts, strategic acquisitions and never before seen partnerships," Pate said. "The diversity of our unique company will continue to provide growth opportunities in various markets within our industry, both domestically and abroad. We remain focused on providing safe, reliable and affordable service to our customers and investing in our future."
About MV Transportation, Inc.
Based in Dallas, MV Transportation, Inc. is the largest private provider of paratransit services and the largest privately-owned passenger transportation contracting firm based in the United States. The company employs more than 16,000 dedicated transit professionals and operates more than 200 paratransit, fixed-route, shuttle, school bus and Medicaid contracts in 29 states, the District of Columbia, Canada and Saudi Arabia.
This press release and related materials contain statements about MV's future that are not statements of historical fact, including specifically forward looking statements regarding MV's expectations with respect to growth opportunities, future economic conditions, and its prospects for future performance. Forward-looking statements should not be read as a guarantee of future performance or results. Forward looking statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and MV's future performance are subject to risks, uncertainties and other factors that could cause actual performance or results to differ materially from those expressed or implied in the forward-looking statements.
MV undertakes no obligation to publicly update or revise forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information. If MV does update one or more forward-looking statements, no inference should be drawn that MV will make additional updates with respect thereto or with respect to other forward-looking statements. References to our website are provided for convenience and, therefore, information on or available through the website is not, and should not be deemed to be, incorporated by reference herein.