407 International Reports Second Quarter Results

Traffic increased by 15% compared to the same period in 2022  

TORONTO, July 13, 2023 /CNW/ - 407 International Inc. (the Company) announced today financial results for its second quarter ended June 30, 2023. Revenues were $405.3 million and net income was $155.4 million, up 21% and 41% respectively, compared with the second quarter of 2022. Earnings before interest and other, taxes, depreciation and amortization (EBITDA¹) for the second quarter of 2023 totalled $355.9 million and were also up 21% compared with the second quarter of 2022.

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

The Board of Directors declared an eligible dividend of $0.194 per common share payable on or about July 13, 2023 to shareholders of record on July 13, 2023.

Traffic trips during the second quarter of 2023 were higher by 15% compared to the same period in 2022, and vehicle kilometres travelled increased by 18% as average trip length also increased. Cash flows from operations were $130.6 million, up 22% in the second quarter of 2023 compared with the second quarter of 2022. "Our customers continue to recognize the value of the service that Highway 407 ETR provides, including improved productivity and the peace of mind of a stressfree, reliable drive," said Javier Tamargo, President and Chief Executive Officer. "The traffic increase we saw during the second quarter can be partly attributed to an increase in commuting, as more workers returned to the office."

During the second quarter of 2023, the Company bolstered its commitment to address biodiversity loss and climate change with the announcement of its largest environmental donation to date with a three-year $800,000 commitment to the Nature Conservancy of Canada (NCC).

On June 23, 2023, the Company released its 2022 Environmental, Sustainability and Governance (ESG) Report, The Better Road, in alignment with internationally recognized reporting frameworks, marking significant progress in transparency and accountability and which can be found on the Company's website 407etr.com/esgreporting.

Highlights
(unaudited)

			Three-month period ended				Six-month period ended
			June 30				June 30
			2023		2022		2023		2022
Selected Financial Information (in millions)
	Revenues		$          405.3		$       336.1		$      700.2		$      572.7
	Operating expenses		49.4		41.8		102.0		83.9
	EBITDA ^1		355.9		294.3		598.2		488.8
	Depreciation and amortization		24.2		23.8		48.7		48.0
	Interest and other expenses		122.2		121.3		203.8		213.8
	Income before tax		209.5		149.2		345.7		227.0
	Income tax expenses		54.1		39.1		90.2		59.7
	Net income		$          155.4		$       110.1		$      255.5		$      167.3
Traffic
	Total trips (in thousands)		29,330		25,538		51,858		43,468
	Average revenue per trip		$13.36		$13.03		$13.09		$13.03
	Average workday number of trips		369,324		321,143		330,815		277,869
	Total vehicle kilometres (in thousands)		670,255		569,461		1,150,360		943,368
	Number of transponders in circulation
	at June 30		1,698,843		1,638,851		1,698,843		1,638,851

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/newsroom

SOURCE 407 International Inc.

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