NAPERVILLE, Ill.- Greyhound Lines posted generally lackluster financial results for the three and nine months ended May 31.

However, revenue per bus mile was improved at the nation's largest intercity carrier, a reflection of the extensive system restructuring Greyhound began implementing 13 months ago.

Laidlaw International, the corporate parent of Greyhound, said total revenue at Greyhound for the three months ended May 31, was $294.5 million, down from year-ago revenue of $299.7 million. For the nine months ended May 31, Greyhound revenue totaled $864 million, down from $881.1 million the year before.

Like many public companies, Laidlaw does not report net income for its subsidiaries. Instead, it reports EBITDA, or operating income plus depreciation and amortization. EBITDA (commonly pronounced e-bit-dah) is essentially an indicator of liquidity and the ability to service or incur debt.

EBITDA at Greyhound for the three months ended May 31 was $9.6 million, down from $15.6 million from the same period in 2004. EBITDA for the nine months ended May 31, however, was $46.5 million, up from $37.6 million a year earlier.

Greyhound's revenue for the latest reporting periods declined primarily because of its system overhaul which has eliminated more than 700 stops from the company route structure. An increase in the Canadian exchange rate bolstered the revenue picture for the three and nine months ended May 31.

The $6 million declined in EBITDA for the three months ended May 31 largely resulted from Laidlaw's sale of its Gray Line tour and charter bus operation in western Canada. Laidlaw said it sold the Gray Line units for a $5.8 million loss. (See related articles on Page 3.)

EBITDA in the nine months ended May 31, improved by $8.9 million, another reflection of the improving revenue per bus mile, plus lower accident claims costs. Offsetting those gains somewhat were higher fuel costs and the loss on the sale of the Gray Line operations.

Greyhound accounted for roughly 35 percent of total revenue at Laidlaw during the reporting periods ended May 31, but only 7.2 percent of EBITDA during the three months ended May 31, and 12.4 percent for the nine months.

Corporate-wide, Laidlaw reported a slight drop in income from continuing operations for the quarter ended May 31, compared the same period in 2004 -- $30 million versus $32 million.

Despite the drop in income, Laidlaw announced it was instituting a 15-cent per share quarterly dividend to owners of its common stock. The first dividend will be payable Aug. 25, to shareholders of record Aug. 4. Laidlaw said it intends to pay regular quarterly dividends for the foreseeable future, subject to board approval.

The dividend policy was established in the wake of the company's recapitalization plan that was being wrapped up this month. (See July 1 issue of Bus & Motorcoach News.) Once the debt recapitalization is completed, Laidlaw debt will be reduced by more than $800 million, to about $315 million.

"Laidlaw has made substantial progress in the last two years," said Kevin Benson, Laidlaw's president and CEO. "We have focused the portfolio on our core transportation expertise and continue to target profitability improvements in these businesses. ... The adoption of a quarterly dividend policy demonstrates our confidence in the earnings power of Laidlaw."