Mr. Patrick Dovigi reports

GFL ENVIRONMENTAL REPORTS FIRST QUARTER 2023 RESULTS

GFL Environmental Inc. has released its results for the first quarter of 2023.

"I am extremely proud of the hard work and commitment of our over 20,000 employees, as we had yet another exceptional start to the year," said Patrick Dovigi, founder and chief executive officer of GFL. "Our strong execution once again resulted in our achievement of double-digit, industry-leading revenue growth in the quarter, including our highest-to-date solid waste core pricing increase of 12.6 per cent, continued volume growth and outperformance from acquisitions. We also grew adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] by 24.3 per cent and demonstrated the effectiveness of our pricing and efficiency initiatives to counteract continuing inflationary cost pressures, resulting in organic adjusted EBITDA margin expansion of 190 basis points, excluding the impact of fuel and commodity prices. We remain highly confident that these initiatives will drive significant margin expansion over the balance of 2023.

"We continue to focus on the rationalization of our portfolio of assets in order to maximize return on invested capital. Since we reported our year-end results, we entered into definitive agreements to sell the previously identified three non-core distinct U.S. solid waste regions that we acquired as part of several recent larger acquisitions. These divestitures will result in gross proceeds of approximately $1.6-billion relative to approximately $1.5-billion at announcement, the net proceeds of which will reduce net leverage to below four times by the end of the year, positioning us for sustainable industry-leading free cash flow per-share growth over the midterm. The transactions are expected to close in the coming months and be completed before the end of the third quarter."

Mr. Dovigi added: "This year we have continued to make significant advancements on our ESG [environmental, social, governance] commitments. Today, we welcome Sandra Levy to our board of directors, as our ninth independent director. Sandra is the current chief people and culture officer at the Canadian Olympic Committee and serves on the board of trustees and chair of the governance committee of SIR Royalty Income Fund. Sandra's broad experience as a lawyer, HR professional and an Olympian allows her to bring unique perspectives to GFL."

Mr. Dovigi concluded: "Our success in the first quarter sets us up for a strong 2023. Our financial performance exceeded our internal expectations across every key metric and we are on track to finalize the divestitures faster and for considerably more proceeds than we originally anticipated. We could not ask for a better start to the year and we continue to see upside opportunities ahead of us. With the strength of our first quarter results, we are well on track to meet or exceed the high end of our full-year guidance range and expect to provide a guidance update for our base business when we report our second quarter results."

First quarter results:

• Revenue increased by 28.4 per cent to $1,799.1-million in the first quarter of 2023, compared with the first quarter of 2022:
  • Solid waste revenue of $1,482.2-million, including organic growth of 12.5 per cent driven predominantly by core pricing and surcharge increases and higher volumes across GFL's collection and postcollection operations;
  • Environmental services revenue of $316.9-million, including organic growth of 25.4 per cent driven by the strength of industrial collection and processing activity at GFL's facilities and by core pricing and surcharge increases.
• Adjusted EBITDA increased by 24.3 per cent to $440.5-million in the first quarter of 2023, compared with the first quarter of 2022. Adjusted EBITDA margin was 24.5 per cent in the first quarter of 2023, compared with 25.3 per cent in the first quarter of 2022. Solid waste adjusted EBITDA margin was 29.5 per cent in the first quarter of 2023, compared with 29.9 per cent in the first quarter of 2022.
• Net loss from continuing operations was $217.8-million in the first quarter of 2023, compared with net income from continuing operations of $137-million in the first quarter of 2022.
• Adjusted free cash flow was $(54.8-million) in the first quarter of 2023, compared with $118.6-million in the first quarter of 2022. The decrease of $173.4-million was inclusive of $155.6-million of incremental net capex and $64.8-million incremental cash interest paid, both of which were primarily the result of timing differences.

Q1 2023 earnings call

GFL will host a conference call related to its first quarter earnings on April 28, 2023, at 8:30 a.m. Eastern Time. A live audio webcast of the conference call can be accessed by logging onto GFL's investors page. Listeners may access the call toll-free by dialling 1-833-950-0062 in Canada or 1-844-200-6205 in the United States (access code: 990410) approximately 15 minutes prior to the scheduled start time.

GFL encourages participants who will be dialling in to preregister for the conference call. Callers who preregister will be given a conference access code and PIN to gain immediate access to the call and bypass the live operator on the day of the call. Participants may preregister at any time, including up to and after the call start time. For those unable to listen live, an audio replay of the call will be available until May 12, 2023, by dialling 1-226-828-7578 in Canada or 1-866-813-9403 in the United States (access code: 427271). A copy of the presentation for the call will be available on GFL's website.

About GFL Environmental Inc.

GFL, headquartered in Vaughan, Ont., 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 work force of more than 20,000 employees.

We seek Safe Harbor.