407 International Reports Second Quarter Results

TORONTO, July 15 /CNW/ - 407 International Inc. announced today revenues of $162.0 million for the second quarter ended June 30, 2010 compared to $142.1 million for the same period of 2009. Earnings before interest, taxes, depreciation and amortization ("EBITDA"(1)) totalled $135.5 million for the second quarter of 2010 compared with $115.6 million for the same period of 2009. The Company reported a net income of $33.6 million for the second quarter of 2010 compared with a net income of $8.0 million for the same period of 2009.

The Company also announced today the retirement of Kenneth A. Walker from the position of Chief Financial Officer and Secretary, effective October 15, 2010.

"Ken was an integral member of the 407 ETR International consortium that successfully bid for the acquisition of 407 ETR Concession Company Limited from the Province in 1999. Ken has been the Chief Financial Officer and Secretary of the Company since its incorporation in 1999 and has seen the Company through several important milestones including the largest Canadian corporate bond issuance in its initial public offering. He has built an outstanding team of finance professionals and leaves the Company in a sound financial condition," said Jose Tamariz, 407 International's President and Chief Executive Officer. The Board of Directors want to express our sincerest thanks to Ken. We wish him all the best in his retirement.

The Board of Directors approved today the nomination of Mr. Louis-M St-Maurice as Chief Financial Officer and Secretary to succeed Mr. Walker upon his retirement in October. Mr. St-Maurice is a professional engineer with over 30 years of experience in project development and management activities. He has most recently served as Chief Financial Officer of Astoria Energy LLC in New York. Prior to his most recent position, Mr. St-Maurice was Vice-President, SNC-Lavalin Investment.

407 International Inc. is owned by a consortium comprised of Cintra Infraestructuras, Intoll and SNC-Lavalin.

News releases are available at www.407etr.com.

    
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    (1) EBITDA is not a recognized measure under Canadian generally accepted
        accounting principles and investors are cautioned that EBITDA should
        not be construed as an alternative to net income or cash from
        operating activities as an indicator of the Company's performance or
        cash flows. The Company's method of calculating EBITDA may differ
        from other companies' and may not be comparable to measures used by
        other companies. EBITDA less Depreciation and amortization, Interest
        and other expenses result in Net income.


    Highlights
    Unaudited

                                        Three month            Six month
                                        period ended          period ended
                                          June 30               June 30
                                   --------------------  --------------------
                                      2010       2009       2010       2009
                                   ---------  ---------  ---------  ---------

    Selected Financial Information
     (in millions)
      Revenues                     $  162.0   $  142.1   $  293.2   $  261.8
                                   ---------  ---------  ---------  ---------

    Operating expenses                 26.5       26.5       54.6       52.9
    Depreciation and amortization      13.2       15.7       26.6       32.0
                                   ---------  ---------  ---------  ---------
                                       39.7       42.2       81.2       84.9
                                   ---------  ---------  ---------  ---------
    Income from operations            122.3       99.9      212.0      176.9
    Interest and other
     expenses, net                     72.7       93.1      144.0      158.3
                                   ---------  ---------  ---------  ---------
    Income before income taxes         49.6        6.8       68.0       18.6
    Future income tax expense
     (recovery)                        16.0       (1.2)      21.8        2.6
                                   ---------  ---------  ---------  ---------
    Net income                     $   33.6   $    8.0   $   46.2   $   16.0
                                   ---------  ---------  ---------  ---------
                                   ---------  ---------  ---------  ---------

    Traffic
      Total trips (in thousands)     29,844     28,233     55,471     53,317
      Average revenue per trip        $5.43      $5.03      $5.29      $4.91
      Average workday number
       of trips                     397,171    374,161    372,960    357,621
      Total vehicle kilometres
       (in thousands)               600,688    559,188  1,100,503  1,037,866
      Number of transponders in
       circulation at June 30       991,879    939,994    991,879    939,994
    

For further information: Investors: Kenneth A. Walker, Chief Financial Officer, Tel: [phone]; Media: Steve Spencer, Director, Communications, Tel: [phone]