407 International Reports Third Quarter Results

TORONTO , Oct. 20 /CNW/ - 407 International Inc. announced today revenues of $156.6 million for the third quarter ended September 30, 2009 compared to $152.9 million for the same period of 2008. Earnings before interest, taxes, depreciation and amortization ("EBITDA"(1)) totalled $128.3 million for the third quarter of 2009 compared with $125.7 million for the same period of 2008. The Company reported net income of $12.9 million for the third quarter of 2009 compared with net income of $60.3 million for the same period of 2008 due to unfavourable net non-cash adjustments relating to inflation-linked financial instruments.

The Board of Directors declared an eligible dividend of $0.061 per common share payable on or about October 20, 2009 , to shareholders of record on October 20, 2009 .

The Board of Directors appointed Mr. José Tamariz as President and Chief Executive Officer of 407 International Inc., replacing Mr. Antonio de Santiago , effective October 20, 2009 . Mr. Tamariz is a civil engineer with over 15 years of experience in the transportation and construction industries. He has most recently served as Chief Executive Officer of Cintra Ireland , overseeing the Eurolink Motorway Operation.

407 International Inc. is owned by a consortium comprised of Cintra Concesiones de Infraestructuras de Transporte, Macquarie Infrastructure Group and SNC-Lavalin Inc.

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,
    net, results in Net income.


    Highlights
    Unaudited

                                        Three month           Nine month
                                       period ended          period ended
                                       September 30          September 30
                                  --------------------- ---------------------
                                      2009       2008       2009       2008
                                  ---------- ---------- ---------- ----------

    Selected Financial Information
     (in millions)
      Revenues                    $   156.6  $   152.9  $   418.4  $   413.0
                                  ---------- ---------- ---------- ----------

      Operating expenses               28.3       27.2       81.2       80.0
      Depreciation and
       amortization                    15.1       18.2       47.1       53.6
                                  ---------- ---------- ---------- ----------
                                       43.4       45.4      128.3      133.6
                                  ---------- ---------- ---------- ----------
      Income from operations          113.2      107.5      290.1      279.4
      Interest and other expenses,
       net                             95.7       47.2      254.0      239.8
                                  ---------- ---------- ---------- ----------
      Income before income taxes       17.5       60.3       36.1       39.6
      Future income tax expense         4.6          -        7.2          -
                                  ---------- ---------- ---------- ----------
      Net income                  $    12.9  $    60.3  $    28.9  $    39.6
                                  ---------- ---------- ---------- ----------
                                  ---------- ---------- ---------- ----------

    Traffic
      Total trips (in thousands)     29,075     29,793     82,392     85,240
      Average revenue per trip    $    5.39  $    5.13  $    5.08  $    4.85
      Average workday number
       of trips                     380,705    391,642    365,356    378,224
      Total vehicle kilometres
       (in thousands)               610,156    613,602  1,648,022  1,692,324
      Number of transponders in
       circulation at September 30  952,977    904,476    952,977    904,476
    

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