STUDENT TRANSPORTATION INC 5.25 PCT DEBS T.STB.DB.A

RE:RE:Safe stop app

[slimjim11]

I found a site which says the Safestop is available as a subscription service, parent pay, school/district pay or sponsor pay model. I expect it could also be a combination of the four models, whereby parents pay $2/mo, and the school district pays $3/mo. https://www.techlearning.com/resources/0003/whats-new/69820 With the GPS hardware already onboard each bus, and the hardware already broadcasting data every 30 seconds, we can expect the business model to involve low incremental capital costs, low operating costs and the expenses will be primarily in marketing to start an account and ongoing administration for billing. Once a school board is signed up, there should be an annuity stream to STB's pre-tax line. Overall corporate 2015 revenues were $554.7 MM, and the net income was $3.65 MM. If parents and school boards pay $1 for SafeStop for every $100 they spend to transport the students, then net income would double. If they spend $2 for Safestop, then net income would triple. And Safestop may also attract additional bussing contracts, as it is a product differentiator in a competitive marketplace for student bussing.