407 International Reports Third Quarter Results

TORONTO, Oct. 27, 2021 /CNW/ - 407 International Inc. (the "Company") announced today revenues of $333.1 million for the third quarter of 2021, compared to $265.7 million for the same period of 2020.  Earnings before interest, taxes, depreciation and amortization ("EBITDA"¹) totalled $289.2 million for the third quarter of 2021 compared to $226.6 million for the same period of 2020. The Company reported net income of $106.6 million for the third quarter of 2021, compared to a net income of $49.1 million for same period of 2020.

The Board of Directors declared an eligible dividend of $0.387 per common share, payable on or about October 27, 2021 to shareholders of record on October 27, 2021.

COVID-19 PANDEMIC

During the third quarter of 2021, traffic volumes were higher by approximately 24% as compared to the same period in 2020.  As a result of increased vaccination rates, the Province of Ontario has entered step 3 of re-opening non-essential businesses and schools and further relaxed COVID-19 restrictions.  Despite the impact of the COVID-19 pandemic on overall traffic volumes and revenues, the Company maintains sufficient liquidity and expects to be able to satisfy all of its obligations in 2021.

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.

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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.

Highlights
(Unaudited)

			Three-month period ended						Nine-month period ended
			September 30						September 30
			2021			2020			2021			2020
Selected Financial Information (in millions)
	Revenues		$	333.1		$	265.7		$	714.4		$	683.1
	Operating expenses		43.9			39.1			115.1			124.4
	Depreciation and amortization		26.6			24.1			74.2			73.5
	Interest and other expenses		116.8			135.3			340.7			327.3
	Income before tax		145.8			67.2			184.4			157.9
	Income tax expense		39.2			18.1			49.4			41.2
	Net income		$	106.6		$	49.1		$	135.0		$	116.7
Traffic
	Total trips (in thousands)		24,259			19,605			53,668			53,854
	Average revenue per trip		$13.60			$13.40			$13.14			$12.52
	Average workday number of trips		299,169			249,205			230,031			234,329
	Total vehicle kilometres (in thousands)		576,625			434,957			1,175,451			1,136,649
	Number of transponders in circulation
	at September 30								1,600,222			1,604,293

SOURCE 407 International Inc.

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