407 International Inc on Thursday evening filed its financial results for the third quarter, reporting revenues of $419.4 million, a 7% increase compared to the same quarter in 2022 when it posted $392.0 million.
In terms of performance, traffic during the third quarter of 2023 experienced an 8% surge at 30.7 million trips compared to the same period in 2022 at 28.3 million trips. Simultaneously, vehicle kilometers traveled saw a 9% uptick, partly attributable to an increase in the average trip length.
Net income for the third quarter of 2023 reached $182.5 million, a 30% increase compared to the previous year’s third quarter of $140.1 million. EBITDA for the quarter came in at $182.5 million, up from last year’s $140.1 million.
In terms of operational cash flows, the 407 also fared exceptionally well. The third quarter of 2023 witnessed cash flows from operations amounting to $217.9 million, marking a 14% increase compared to the third quarter of 2022.
The results lead to the company declaring a dividend of $0.839 per common share. 407 International is majority owned by the Canada Pension Plan at 50.01%, while Cintra Global owns 43.23%, and the remainder, 6.76%, is owned by AtkinsRealis Canada, which formerly was known as SNC Lavalin.
In August, The Deep Dive dug deep into the history and controversy surrounding the sale of Highway 407 in 1999, widely considered the worst deal in Canadian business history. From its initial concept as a solution to Toronto’s growing traffic congestion, to its controversial privatization, the story of Highway 407 provides valuable insights into the role of public policy in shaping our societies and economies.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
