407 International Reports Second Quarter Results

TORONTO, July 14, 2022 /CNW/ - 407 International Inc. (the "Company") announced today revenues of $336.1 million for the second quarter of 2022, compared to $212.2 million for the same period of 2021.  The Company reported a net income of $110.1 million for the second quarter of 2022, compared to a net income of $24.7 million for the same period of 2021. Earnings before interest and other expenses, taxes, depreciation and amortization ("EBITDA"¹) totalled $294.3 million for the second quarter of 2022 compared to $179.4 million for the same period of 2021. 

Highway 407 ETR (CNW Group/407 International Inc.)

The Board of Directors  declared an eligible dividend of $0.258 per common share payable on or about July 14, 2022 to shareholders of record on July 14, 2022.

As a result of the Province of Ontario removing all COVID-19-related restrictions, traffic volumes during the second quarter of 2022 were higher by approximately 48% as compared to the same period in 2021.  The Company maintains sufficient liquidity and expects to be able to satisfy all of its obligations in 2022.

APPOINTMENT

The Company is pleased to confirm the recent appointment to the Board of Directors of Ms. Emmie Fukuchi, Executive Vice President, Chief Digital and Marketing Officer at The Co-Operators Group Limited and Mr. Juan Ramon Perez, Asset Management Director - Netherlands, Cintra Infraestructuras, S.A., effective May 1, 2022.

The members of the Board of Directors are as follows:

• David McFadden, Q.C., Chair of the Board
• Javier Tamargo, President & Chief Executive Officer
• Andrew Alley
• Michael Bernasiewicz
• Laura Formusa
• Emmie Fukuchi
• Andrea Jeffery
• Rob MacIsaac
• Young Park
• Juan Ramon Perez
• Andres Sacristan
• Stephanie Vaillancourt
• Jose Maria Velao

___________________________

¹ EBITDA is not a standardized financial measure under International Financial Reporting Standards and investors are cautioned that EBITDA should not be construed as an alternative to net income as an indicator of the Company's performance. The Company's method of calculating EBITDA may differ from other companies' methods, and may not be comparable to measures used by other companies. See "Non-IFRS Financial Measures" in the Company's management's discussion and analysis for the period ended June 30, 2022 which is available on SEDAR at sedar.com.

Highlights
(Unaudited)

			Three-month period ended				Six-month period ended
			June 30				June 30
			2022		2021		2022		2021
Selected Financial Information (in millions)
	Revenues		$              336.1		$          212.2		$      572.7		$        381.3
	Operating expenses		41.8		32.8		83.9		71.2
	EBITDA ^1		294.3		179.4		488.8		310.1
	Depreciation and amortization		23.8		23.9		48.0		47.6
	Interest and other expenses		121.3		121.9		213.8		223.9
	Income before tax		149.2		33.6		227.0		38.6
	Income tax expenses		39.1		8.9		59.7		10.2
	Net income		$              110.1		$            24.7		$      167.3		$          28.4
Traffic
	Total trips (in thousands)		25,538		16,327		43,468		29,408
	Average revenue per trip		$13.03		$12.82		$13.03		$12.77
	Average workday number of trips		321,143		214,021		277,869		195,195
	Total vehicle kilometres (in thousands)		569,461		342,771		943,368		598,826
	Number of transponders in circulation
	at June 30						1,638,851		1,582,585

¹ EBITDA is not a standardized financial measure under International Financial Reporting Standards and investors are cautioned that EBITDA should not be construed as an alternative to net income as an indicator of the Company's performance. The Company's method of calculating EBITDA may differ from other companies' methods, and may not be comparable to measures used by other companies. See "Non-IFRS Financial Measures" in the Company's management's discussion and analysis for the period ended June 30, 2022 which is available on SEDAR at sedar.com.

ABOUT 407 INTERNATIONAL

The Company is owned by indirectly owned subsidiaries of Canada Pension Plan Investment Board (total 50.01%), also known as CPP Investments; Cintra Global S.E., a wholly owned subsidiary of Ferrovial S. A. (43.23%); and SNC-Lavalin (6.76%).

News releases are available at 407etr.com

SOURCE 407 International Inc.

Investors: Geoffrey Liang, Chief Financial Officer, Tel: [phone]; Media: Christina Basil, Director, Communications and Government Relations, Tel: [phone]