About GFL GFL, headquartered in Vaughan, Ontario, is the fourth largest diversified environmental services company in North America, providing a comprehensive line of solid waste management, liquid waste management and soil remediation services through its platform of facilities throughout Canada and in more than half of the U.S. states. Across its organization, GFL has a workforce of more than 20,000 employees. Forward-Looking Information This release includes certain "forward-looking statements", includin ...

GFL Environmental Inc. (GFL) shares soared 10.4% in the last trading session to close at $34.73. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4% loss over the past four weeks. The rise in GFL's stock price was fueled by reports indicating that the company might be attracting buyout interest from a group of private equity sponsors. This company is expected to post quarterly earnings of $0.24 per share in its upcoming report, wh ...

Adjusted Net Income Reconciliation (C$ and shares in millions, unless otherwise noted) Three months ended March 31, 2. Loss on foreign exchange: Consists of (i) non-cash gains and losses on foreign exchange and interest rate swaps entered into in connection with our debt instruments and (ii) gains and losses attributable to foreign exchange rate fluctuations. Net loss (176.5) (217.8) Amortization of intangible assets(1) 108.7 138.8 3. Mark-to-market loss on Purchase Contracts: This is a non-cash item that c ...

[Financial Statements](index=2&type=section&id=Financial%20Statements) [Unaudited Interim Condensed Consolidated Statements of Operations and Comprehensive Loss](index=2&type=section&id=Statements%20of%20Operations%20and%20Comprehensive%20Loss) GFL reported a net loss of **$(172.8) million** for Q1 2024, an improvement from Q1 2023, with stable revenue and improved loss per share | Metric | Three months ended March 31, 2024 (in millions of dollars) | Three months ended March 31, 2023 (in millions of dollars) | | :--------------------------------------- | :------------------------------------------------------- | :------------------------------------------------------- | | Revenue | 1,801.4 | 1,799.1 | | Net loss attributable to GFL Environmental Inc. | (172.8) | (219.4) | | Basic and diluted loss per share | (0.53) | (0.66) | | Loss on foreign exchange | 74.9 | 5.3 | | Mark-to-market loss on Purchase Contracts | — | 104.3 | [Unaudited Interim Condensed Consolidated Statements of Financial Position](index=3&type=section&id=Statements%20of%20Financial%20Position) GFL's total assets increased to **$20,048.4 million** as of March 31, 2024, primarily driven by property, equipment, and goodwill growth | Metric | March 31, 2024 (in millions of dollars) | December 31, 2023 (in millions of dollars) | | :--------------------------------- | :-------------------------------------- | :-------------------------------------- | | Total assets | 20,048.4 | 19,879.2 | | Total liabilities | 12,662.7 | 12,493.0 | | Total shareholders' equity | 7,385.7 | 7,386.2 | | Cash | 70.0 | 135.7 | | Long-term debt (non-current) | 9,149.2 | 8,827.2 | [Unaudited Interim Condensed Consolidated Statements of Changes in Shareholders' Equity](index=4&type=section&id=Statements%20of%20Changes%20in%20Shareholders'%20Equity) Total shareholders' equity remained stable at **$7,385.7 million** as of March 31, 2024, with net loss offset by share-based payments and currency adjustments | Metric | March 31, 2024 (in millions of dollars) | December 31, 2023 (in millions of dollars) | | :--------------------------------------- | :-------------------------------------- | :-------------------------------------- | | Total shareholders' equity | 7,385.7 | 7,386.2 | | Net loss and comprehensive loss attributable to GFL Environmental Inc. | (52.9) | (217.4) (for Q1 2023) | | Share-based payments | 57.0 | 15.0 (for Q1 2023) | | Dividends issued and paid | (6.4) | (5.6) (for Q1 2023) | [Unaudited Interim Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Statements%20of%20Cash%20Flows) Operating cash flow increased to **$263.2 million** in Q1 2024, while investing activities saw a reduced outflow and financing activities decreased significantly | Metric | Three months ended March 31, 2024 (in millions of dollars) | Three months ended March 31, 2023 (in millions of dollars) | | :--------------------------------------- | :------------------------------------------------------- | :------------------------------------------------------- | | Net cash from operating activities | 263.2 | 192.5 | | Net cash used in investing activities | (393.9) | (481.7) | | Net cash from financing activities | 65.0 | 286.8 | | Decrease in cash | (65.7) | (2.4) | | Cash, end of quarter | 70.0 | 73.0 | | Business acquisitions and investments, net of cash acquired | (111.6) | (224.2) | [Notes to the Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) [1. REPORTING ENTITY](index=6&type=section&id=1.%20REPORTING%20ENTITY) GFL Environmental Inc. is a Canadian company providing non-hazardous solid waste management and environmental services across North America - GFL Environmental Inc. provides non-hazardous solid waste management and environmental services across Canada and the United States[14](index=14&type=chunk) - GFL's subordinate voting shares trade on the New York Stock Exchange and the Toronto Stock Exchange under the symbol "GFL"[13](index=13&type=chunk) - The Board of Directors approved the Interim Financial Statements on May 1, 2024[15](index=15&type=chunk) [2. SUMMARY OF MATERIAL ACCOUNTING POLICIES](index=6&type=section&id=2.%20SUMMARY%20OF%20MATERIAL%20ACCOUNTING%20POLICIES) The Interim Financial Statements adhere to IAS 34 and IFRS, are presented in Canadian dollars, and maintain consistency with 2023 annual policies - The Interim Financial Statements have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, within the framework of International Financial Reporting Standards[16](index=16&type=chunk) - The Interim Financial Statements are presented in Canadian dollars, which is GFL's functional currency[19](index=19&type=chunk) - The accounting policies adopted are consistent with those followed in the preparation of the Annual Financial Statements for the year ended December 31, 2023[21](index=21&type=chunk) - New and amended standards adopted for the current reporting period were not required to change GFL's accounting policies or make retrospective adjustments, and new standards not yet effective are not expected to have a material impact[23](index=23&type=chunk)[24](index=24&type=chunk) [3. BUSINESS COMBINATIONS AND INVESTMENTS](index=7&type=section&id=3.%20BUSINESS%20COMBINATIONS%20AND%20INVESTMENTS) In Q1 2024, GFL acquired four immaterial businesses for **$71.6 million** in cash, while also managing investments in associates and joint ventures [Business Acquisitions](index=7&type=section&id=Business%20Acquisitions) - GFL acquired 4 individually immaterial businesses during the three months ended March 31, 2024[25](index=25&type=chunk) | Purchase Price Allocation (Three months ended March 31, 2024) | | :--------------------------------------- | :------------------- | | Net assets acquired | $71.6 million | | Cash paid | $71.6 million | | Goodwill | $34.4 million | - Revenue and income before income taxes attributable to the 2024 acquisitions included in the Interim Financial Statements were approximately **$4.3 million** and **$0.7 million**, respectively[28](index=28&type=chunk) [Investments in Associates](index=8&type=section&id=Investments%20in%20Associates) | Metric | March 31, 2024 (in millions of dollars) | December 31, 2023 (in millions of dollars) | | :--------------------------------------- | :-------------------------------------- | :-------------------------------------- | | Investments in associates | 195.2 | 229.1 | | Share of loss and total comprehensive loss from associates (Q1) | 33.9 | 20.9 | [Investments in Joint Ventures](index=8&type=section&id=Investments%20in%20Joint%20Ventures) | Metric | March 31, 2024 (in millions of dollars) | December 31, 2023 (in millions of dollars) | | :--------------------------------------- | :-------------------------------------- | :-------------------------------------- | | Investments in RNG joint ventures | 95.3 | 89.9 | | Share of income and total comprehensive income from joint ventures (Q1) | 3.3 | (0.1) (loss) | - GFL advanced a loan of **$18.1 million** to other sustainability projects with strategic partners during Q1 2024[34](index=34&type=chunk) [4. PROPERTY AND EQUIPMENT](index=9&type=section&id=4.%20PROPERTY%20AND%20EQUIPMENT) The carrying amount of property and equipment increased to **$7,048.4 million** as of March 31, 2024, with **$255.0 million** in Q1 2024 depreciation | Metric | March 31, 2024 (in millions of dollars) | December 31, 2023 (in millions of dollars) | | :--------------------------------------- | :-------------------------------------- | :-------------------------------------- | | Carrying amount of Property and equipment | 7,048.4 | 6,980.7 | | Total depreciation of property and equipment (Q1) | 255.0 | 239.8 | | Depreciation included in cost of sales (Q1) | 247.5 | 233.2 | [5. GOODWILL AND INTANGIBLE ASSETS](index=10&type=section&id=5.%20GOODWILL%20AND%20INTANGIBLE%20ASSETS) Goodwill increased to **$8,053.7 million** as of March 31, 2024, primarily due to acquisitions and foreign exchange, with total intangible assets reaching **$11,046.6 million** | Metric | March 31, 2024 (in millions of dollars) | December 31, 2023 (in millions of dollars) | | :--------------------------------------- | :-------------------------------------- | :-------------------------------------- | | Goodwill carrying amount | 8,053.7 | 7,890.5 | | Intangible assets carrying amount | 11,046.6 | 10,946.8 | | Amortization of intangible assets (Q1) | 108.7 | 138.8 | | Goodwill acquired via

GFL Environmental Inc. (GFL) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of $0.01. This compares to earnings of $0.06 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -100%. A quarter ago, it was expected that this company would post earnings of $0.18 per share when it actually produced earnings of $0.04, delivering a surprise of -77.78%.Over the last four quarters, the company has surpa ...

VAUGHAN, ON, April 4, 2024 /PRNewswire/ - GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) ("GFL" or the "Company") today announced that the Board of Directors of the Company has declared a 10% increase to the regular quarterly cash dividend on the Company's subordinate voting and multiple voting shares. The regular quarterly cash dividend, which increases from US$0.013 per share to US$0.014 per share, will be paid on April 30, 2024 to shareholders of record at the close of business on April 15, 2024.  The Com ...

VAUGHAN, ON, April 2, 2024 /PRNewswire/ - GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) ("GFL" or the "Company"), a leading North American diversified environmental services company, today announced that S&P Global Ratings ("S&P") has upgraded GFL's issuer credit rating to 'BB-' from 'B+', while maintaining a positive outlook. "The rating upgrade from S&P is a testament to the strong execution of our strategy to increase free cash flow and de-lever the business", said Patrick Dovigi, Chief Executive Officer ...

Yevhen Smyk Investment action I recommended a buy rating for GFL Environmental (NYSE:GFL) when I wrote about it the last time, as I expected the stock to continue trading at a premium. Based on my current outlook and analysis of GFL, I recommend a buy rating. I believe the market is not appreciating the potential upsides in GFL FY24 EBITDA guidance given how the share price has reacted post-earnings. This presents a good opportunity for investors to size up their positions, as I expect GFL to beat the g ...

VAUGHAN, ON, Feb. 28, 2024 /PRNewswire/ - GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) ("GFL" or the "Company") today announced that BCEC GFL Borrower (Cayman) LP, Ontario Teachers' Pension Plan Board, GFL Borrower II (Cayman) LP, Poole Private Capital, LLC, and entities affiliated with HPS Investment Partners, LLC (collectively, the "Selling Shareholders") intend to offer for sale 17,000,000 subordinate voting shares (the "Shares"). GFL will not receive any proceeds from the sale of the Shares (the "Offer ...

GFL Environmental Reports Third Quarter 2023 Results [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlights strong Q3 results, a strategic shift to organic growth and deleveraging, and a positive 2024 outlook - Total revenue for Q3, excluding non-core asset divestitures, increased **10.3%** year-over-year, primarily driven by a Solid Waste core pricing increase of **8.8%**[3](index=3&type=chunk) - Significant year-over-year margin improvement was observed, with Solid Waste Adjusted EBITDA margin up **250 bps** and Environmental Services Adjusted EBITDA margin up **440 bps**[3](index=3&type=chunk) - The company is shifting its growth strategy, prioritizing **organic growth and tuck-in acquisitions** over large-scale M&A[3](index=3&type=chunk) - GFL is committed to **deleveraging** and aims to achieve an **investment grade rating** before the majority of its fixed-rate debt matures in 2028[3](index=3&type=chunk) - Preliminary 2024 outlook anticipates **high single-digit top-line growth** and **low teens Adjusted EBITDA growth** (or at least 10% considering divestitures)[3](index=3&type=chunk) Financial Highlights [Third Quarter 2023 Results](index=1&type=section&id=Third%20Quarter%202023%20Results) The company reported strong Q3 revenue and Adjusted EBITDA growth, margin expansion, and a significant turnaround in net income Q3 2023 Key Financial Metrics | Metric | Q3 2023 | Q3 2022 | Change | | :--- | :--- | :--- | :--- | | Revenue | $1,890.0M | $1,831.2M | +3.2% | | Revenue (ex-divestitures) | - | - | +10.3% | | Adjusted EBITDA | $530.3M | $473.3M | +12.0% | | Adjusted EBITDA Margin | 28.1% | 25.8% | +230 bps | | Net Income (from cont. ops) | $18.3M | ($183.7M) | Turnaround | | Adjusted Net Income (from cont. ops) | $116.8M | $74.0M | +57.8% | | Adjusted Free Cash Flow | $276.0M | $97.0M | +184.5% | - Solid Waste revenue was **$1,502.5 million**, with **4.2% organic growth** driven by **8.8% core pricing** increases[5](index=5&type=chunk)[6](index=6&type=chunk) - Environmental Services revenue was **$387.5 million**, with organic growth of **6.9%** when excluding the impact of a large sub-contracting job in Q3 2022[8](index=8&type=chunk) [Year to Date 2023 Results](index=3&type=section&id=Year%20to%20Date%202023%20Results) Year-to-date results show strong revenue and EBITDA growth, though Adjusted Free Cash Flow declined due to divestiture taxes and capex Nine Months Ended Sep 30, 2023 Key Financial Metrics | Metric | YTD 2023 | YTD 2022 | Change | | :--- | :--- | :--- | :--- | | Revenue | $5,632.7M | $4,940.1M | +14.0% | | Revenue (ex-divestitures) | - | - | +17.8% | | Adjusted EBITDA | $1,511.5M | $1,281.0M | +18.0% | | Adjusted EBITDA Margin | 26.8% | 25.9% | +90 bps | | Net Income (from cont. ops) | $94.3M | $35.9M | +162.7% | | Adjusted Free Cash Flow | $235.8M | $317.8M | -25.8% | - The decrease in YTD Adjusted Free Cash Flow was driven by **$248.6 million in cash taxes** from divestitures, **$195.9 million in incremental net capex**, and **$114.6 million in incremental cash interest** paid[11](index=11&type=chunk) Consolidated Financial Statements [Statements of Operations (Income Statement)](index=7&type=section&id=Statements%20of%20Operations) The company's Q3 net income improved significantly due to lower foreign exchange losses and the absence of prior-year contract losses Q3 2023 vs Q3 2022 Income Statement Highlights (in millions) | Line Item | Q3 2023 | Q3 2022 | | :--- | :--- | :--- | | Revenue | $1,890.0 | $1,831.2 | | Cost of sales | $1,526.8 | $1,591.9 | | Loss (gain) on foreign exchange | $46.9 | $195.3 | | Loss (gain) on divestiture | $0.0 | $1.6 | | Net income (loss) from continuing ops | $18.3 | ($183.7) | YTD 2023 vs YTD 2022 Income Statement Highlights (in millions) | Line Item | YTD 2023 | YTD 2022 | | :--- | :--- | :--- | | Revenue | $5,632.7 | $4,940.1 | | Loss (gain) on divestiture | ($580.5) | ($4.9) | | Net income from continuing ops | $94.3 | $35.9 | [Statements of Financial Position (Balance Sheet)](index=9&type=section&id=Statements%20of%20Financial%20Position) The balance sheet strengthened as total liabilities decreased significantly while shareholders' equity increased Balance Sheet Highlights (in millions) | Account | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Total Assets | $19,890.4 | $19,767.6 | | Total Liabilities | $12,377.2 | $13,723.5 | | Long-term debt | $8,848.9 | $9,248.9 | | Total Shareholders' Equity | $7,513.2 | $6,044.1 | [Statements of Cash Flows](index=10&type=section&id=Statements%20of%20Cash%20Flows) Year-to-date cash from operations decreased, while divestiture proceeds drove a net cash inflow from investing activities Nine Months Ended Sep 30, 2023 Cash Flow Summary (in millions) | Activity | YTD 2023 | YTD 2022 | | :--- | :--- | :--- | | Cash from Operating Activities | $579.0 | $693.3 | | Cash from Investing Activities | $198.6 | ($1,329.9) | | Cash from Financing Activities | ($683.3) | $719.5 | | **Increase in Cash** | **$94.3** | **$82.9** | - Key investing activities included **$1.65 billion in proceeds from divestitures** and **$823.6 million in property and equipment purchases**[36](index=36&type=chunk) - Key financing activities included **$3.03 billion in issuance of long-term debt** and **$3.60 billion in repayment of long-term debt**[36](index=36&type=chunk) Supplemental Data [Revenue Growth Analysis](index=11&type=section&id=Revenue%20Growth%20Analysis) Revenue growth was driven by strong organic performance, particularly core pricing in the Solid Waste segment Q3 2023 Revenue Growth Breakdown | Segment | Contribution from Acquisitions | Organic Growth | Foreign Exchange | Total Growth | | :--- | :--- | :--- | :--- | :--- | | Solid Waste | (3.6)% | 4.2% | 1.9% | 2.5% | | Environmental Services | 7.8% | (1.9)% | 0.5% | 6.3% | | **Total** | **(1.3)%** | **3.0%** | **1.6%** | **3.2%** | Solid Waste Organic Growth Components | Component | Q3 2023 | YTD 2023 | | :--- | :--- | :--- | | Price | 8.8% | 10.5% | | Surcharges | (1.6)% | (0.8)% | | Volume | (2.4)% | (1.9)% | | Commodity price | (0.6)% | (1.0)% | | **Total** | **4.2%** | **6.8%** | [Operating Segment Results](index=12&type=section&id=Operating%20Segment%20Results) Both the Solid Waste and Environmental Services segments demonstrated significant year-over-year Adjusted EBITDA margin expansion in Q3 Q3 2023 Segment Performance (in millions) | Segment | Revenue | Adjusted EBITDA | Adjusted EBITDA Margin | YoY Margin Change | | :--- | :--- | :--- | :--- | :--- | | Solid Waste | $1,502.5 | $471.8 | 31.4% | +250 bps | | Environmental Services | $387.5 | $119.9 | 30.9% | +440 bps | | **Total** | **$1,890.0** | **$530.3** | **28.1%** | **+230 bps** | [Net Leverage and Shares Outstanding](index=13&type=section&id=Net%20Leverage%20and%20Shares%20Outstanding) The company significantly reduced its Net Leverage ratio through a combination of debt reduction and increased Run-Rate EBITDA - Net Leverage was reduced to **4.30x** at the end of Q3 2023, compared to **5.02x** at year-end 2022[44](index=44&type=chunk) Net Leverage Calculation (in millions) | Metric | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Total long-term debt (adjusted) | $8,856.0 | $9,252.0 | | Less: cash | ($174.2) | ($82.1) | | Net Debt | $8,681.8 | $9,169.9 | | Run-Rate EBITDA | $2,018.7 | $1,826.8 | | **Net Leverage** | **4.30x** | **5.02x** | - As of September 30, 2023, there were **369,984,983 basic shares outstanding** and **412,148,383 diluted shares outstanding**[46](index=46&type=chunk) Non-IFRS Measures and Reconciliations [Definitions of Non-IFRS Measures](index=5&type=section&id=Definitions%20of%20Non-IFRS%20Measures) This section defines non-IFRS measures used to provide supplemental insight into core business performance trends - **Adjusted EBITDA** excludes items like foreign exchange gains/losses, M&A transaction costs, and divestiture gains to better reflect underlying business performance[18](index=18&type=chunk) - **Adjusted Free Cash Flow** is calculated from operating cash flows, adjusted for asset disposals, capital expenditures, and certain other items[23](index=23&type=chunk) - **Net Leverage** is defined as total long-term debt (net of cash) divided by Run-Rate EBITDA, which is adjusted for the full-year impact of acquisitions[25](index=25&type=chunk)[26](index=26&type=chunk) [Non-IFRS Reconciliation Schedules](index=14&type=section&id=Non-IFRS%20Reconciliation%20Schedules) This section provides detailed reconciliations of non-IFRS measures to their most directly comparable IFRS figures Q3 2023 Reconciliation Summary (in millions) | IFRS Measure | Value | Non-IFRS Measure | Value | Key Adjustments | | :--- | :--- | :--- | :--- | :--- | | Net Income (cont. ops) | $18.3 | Adjusted EBITDA | $530.3 | +$137.2 Interest, +$349.2 D&A, +$46.9 FX Loss | | Net Income (cont. ops) | $18.3 | Adjusted Net Income | $116.8 | +$106.9 Amortization, +$46.9 FX Loss, -$41.3 Tax Effect | | Cash from Ops | $125.8 | Adjusted FCF | $276.0 | +$248.6 Divestiture Taxes, -$276.3 Capex | Corporate Information and Disclaimers [About GFL and Conference Call](index=3&type=section&id=About%20GFL%20and%20Conference%20Call) GFL is a leading North American environmental services company that scheduled a conference call to discuss its Q3 results - GFL is the **fourth largest diversified environmental services company** in North America, operating throughout Canada and in more than half of the U.S. states[12](index=12&type=chunk) - A conference call to discuss Q3 2023 earnings was scheduled for **November 2, 2023**, at 8:30 am Eastern Time[10](index=10&type=chunk) [Forward-Looking Information](index=4&type=section&id=Forward-Looking%20Information) The report contains forward-looking statements subject to various risks and uncertainties that could cause actual results to differ - The report contains forward-looking information concerning **future outlook, financial guidance, and business strategy**[14](index=14&type=chunk) - Actual results may differ materially due to known and unknown risks, including **currency exchange, interest rates, and economic trends**[15](index=15&type=chunk)