GFL(GFL) - 2024 Q1 - Quarterly Report

Financial Statements Unaudited Interim Condensed Consolidated Statements of Operations and Comprehensive Loss 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 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 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 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 1. REPORTING ENTITY 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] - GFL's subordinate voting shares trade on the New York Stock Exchange and the Toronto Stock Exchange under the symbol "GFL"[13] - The Board of Directors approved the Interim Financial Statements on May 1, 2024[15] 2. SUMMARY OF MATERIAL ACCOUNTING POLICIES 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] - The Interim Financial Statements are presented in Canadian dollars, which is GFL's functional currency[19] - 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] - 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][24] 3. BUSINESS COMBINATIONS AND INVESTMENTS 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 - GFL acquired 4 individually immaterial businesses during the three months ended March 31, 2024[25] | 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] Investments in Associates | 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 | 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] 4. PROPERTY AND EQUIPMENT 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 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