407 International Reports Third Quarter Results

TORONTO, Oct. 24, 2019 /CNW/ - 407 International Inc. (the "Company") announced today revenues of $426.4 million for the third quarter of 2019, compared to $382.7 million for the same period of 2018.  Earnings before interest, taxes, depreciation and amortization ("EBITDA"¹) totalled $373.8 million for the third quarter of 2019 compared with $338.1 million for the same period of 2018. The Company reported net income of $180.2 million for the third quarter of 2019, compared with net income of $157.0 million for same period of 2018.

The Board of Directors declared an eligible dividend of $0.323 per common share, payable on or about October 24, 2019 to shareholders of record on October 24, 2019. The Board of Directors also declared an eligible special dividend of $0.064 per common share, payable on or about October 24, 2019 to shareholders of record on October 24, 2019.

For the second year in a row, the Company has opened new lanes on Highway 407 ETR, signifying its ongoing investment in enhancing and expanding the highway to improve the flow of traffic for drivers.

About 407 ETR

Highway 407 ETR is a 108 kilometre toll road situated just north of Toronto, Ontario and serves over 500,000 commuters from Burlington to Pickering every work day. Using Highway 407 ETR saves more than 30 million hours of driving every year, allowing more time for things that matter most and connecting people and businesses in a fast, safe and reliable way.

Using Highway 407 ETR reduces fuel consumption, vehicle maintenance costs and lowers the environmental impact of driving by keeping drivers out of the gridlock and heavy traffic elsewhere in the Greater Toronto Area. Since 1999, Highway 407 ETR has contributed economic benefits totaling over $16.0 billion within Ontario and is well known as the route of choice for businesses to move goods efficiently.

Making life better for customers and surrounding communities is an important focus for the Company. The Company and its employees also support local hospitals and the United Way, sponsor children and youth sports teams across the Highway 407 ETR corridor, and champion safe driving awareness programs and environmental stewardship. Learn more at 407etr.com/community. 

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

^1	EBITDA is not a recognized measure under International Financial Reporting Standards 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' methods, and may not be comparable to measures used by other companies.

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

Highlights
Unaudited

			Three-month period ended						Nine-month period ended
			September 30						September 30
			2019			2018			2019			2018
Selected Financial Information (in millions)
	Revenues		$	426.4		$	382.7		$	1,126.0		$	1,033.7
	Operating expenses		52.6			44.6			142.1			125.7
	Depreciation and amortization		26.4			27.8			78.4			80.3
	Interest and other expenses		102.4			96.8			330.7			306.7
	Income before tax		245.0			213.5			574.8			521.0
	Income tax expenses		64.8			56.5			152.1			137.9
	Net income		$	180.2		$	157.0		$	422.7		$	383.1
Traffic
	Total trips (in thousands)		33,799			33,519			93,499			94,525
	Average revenue per trip		$	12.38		$	11.34		$	11.90		$	10.86
	Average workday number of trips		433,611			435,560			407,606			414,713
	Total vehicle kilometres (in thousands)		775,430			763,646			2,049,268			2,055,693
	Number of transponders in circulation
	at September 30								1,582,538			1,503,577

SOURCE 407 International Inc.

Investors: Geoffrey Liang, Chief Financial Officer, Tel: [phone]; Media: Kevin Sack, Vice President, Marketing, Communications, and Government Relations, Tel: [phone]