Mr. Patrick Dovigi reports

GFL ENVIRONMENTAL REPORTS FIRST QUARTER 2024 RESULTS

GFL Environmental Inc. today released its results for the first quarter of 2024.

• Revenue of $1,801.4-million, ahead of guidance;
• Solid waste price of 7.7 per cent excluding the impact of divestitures, 7.1 per cent including the impact of divestitures;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $455.7-million, increase of 10.0 per cent excluding the impact of divestitures; 3.5 per cent including the impact of divestitures; adjusted net income of $900,000; net loss of $176.5-million; adjusted income per share of zero cents; loss per share of (53 cents);
• Adjusted EBITDA margin of 25.3 per cent, increase of 80 basis points; solid waste adjusted EBITDA margin of 30.8 per cent, increase of 160 basis points;
• Adjusted cash flows from operating activities of $276.1-million; cash flows from operating activities of $263.2-million; adjusted free cash flow of $49.1-million;
• Year to date completed acquisitions generating approximately $100.0-million in annualized revenue;
• 2024 adjusted EBITDA guidance increased to approximately $2,230.0-million.

"I am extremely proud of the hard work and commitment of our over 20,000 employees, as we had yet another strong start to the year," said Patrick Dovigi, founder and chief executive officer of GFL. "Our focus on strong execution drove better-than-expected revenue of $1,801.4-million for the quarter, with solid waste revenue, excluding the impact of divestitures, increasing by 8.8 per cent, including 7.7 per cent from core pricing. The continued effectiveness of our pricing and operating efficiency initiatives resulted in adjusted EBITDA margin of 25.3 per cent, an increase of 80 basis points, and solid waste adjusted EBITDA margin of 30.8 per cent, an increase of 160 basis points."

Mr. Dovigi continued: "Based on the strength of our performance in the first quarter we are increasing our adjusted EBITDA guidance for the year to approximately $2,230.0-million, up from $2,215.0-million. We are well on track to exceed our full year guidance and expect to provide a more detailed update when we report our second quarter results."

Mr. Dovigi concluded: "In February, we laid out our comprehensive, transparent guidance for the year and in the first quarter we delivered exactly what we said we would. Consistent with the capital allocation plan that we provided last November, we also completed acquisitions that we expect to contribute approximately $100.0-million in annualized revenue this year and are deploying capital into incremental growth investments primarily related to RNG and extended producer responsibility opportunities. Inclusive of the impact of these acquisitions and investments, we remain confident that we will achieve our net leverage target of between 3.65 times to 3.85 times as we exit the year."

First quarter results

• Revenue of $1,801.4-million in the first quarter of 2024, increase of 6.5 per cent excluding the impact of divestitures (0.1 per cent including the impact of divestitures), compared with the first quarter of 2023.
  • Solid waste revenue of $1,431.8-million, including 7.7 per cent from core pricing, partially offset by volume decreases of 3.0 per cent excluding the impact of divestitures.
  • Environmental services revenue of $369.6-million, compared with $375.9-million in the prior-year period which included approximately $40.0-million of revenue associated with an unseasonably high level of industrial collection, processing and emergency response activity. Excluding the impact of this outsized prior-year activity, revenue increased by 10.0 per cent.
• Adjusted EBITDA increased by 10.0 per cent excluding the impact of divestitures (3.5 per cent including the impact of divestitures) to $455.7-million in the first quarter of 2024, compared with the first quarter of 2023. Adjusted EBITDA margin was 25.3 per cent in the first quarter of 2024, compared with 24.5 per cent in the first quarter of 2023. Solid waste adjusted EBITDA margin was 30.8 per cent in the first quarter of 2024, compared with 29.2 per cent in the first quarter of 2023. Environmental services adjusted EBITDA margin was 22.0 per cent in the first quarter of 2024, compared with 22.0 per cent in the first quarter of 2023.
• Net loss was $176.5-million in the first quarter of 2024, compared with $217.8-million in the first quarter of 2023.
• Adjusted free cash flow was $49.1-million in the first quarter of 2024, compared with $(50.1)-million in the first quarter of 2023. The increase of $99.2-million was predominantly due to an increase in cash flows from operating activities from improved working capital and a reduction in cash interest paid, as well as timing of capex payments.

Guidance update

Based on the company's performance in the first quarter, the company is increasing its previously provided 2024 guidance for adjusted EBITDA to approximately $2,230.0-million (previously approximately $2,215.0-million). While the company is not currently updating the other components of its previously provided guidance, the company expects to do so with the reporting of its results for the second quarter.

Implicit in forward-looking information in respect of its expectations for 2024 are certain current assumptions, including, among others, no changes to the current economic environment, including fuel and commodities. The updated 2024 guidance assumes GFL will continue to execute on its strategy of organically growing its business, leveraging its scalable network to attract and retain customers across multiple service lines, realizing operational efficiencies, and extracting procurement and cost synergies.

Q1 2024 earnings

GFL will host a conference call related to its first quarter earnings and 2024 guidance update on May 2, 2024, at 8:30 am Eastern Time. A live audio webcast of the conference call can be accessed by logging onto the company's investors page on its website. Listeners may access the call toll-free by dialling 1-833-950-0062 in Canada or 1-833-470-1428 in the United States (access code: 726645) approximately 15 minutes prior to the scheduled start time.

The company encourages participants who will be dialling in to preregister for the conference call on-line (link available in the original version of this release). 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 16, 2024, by dialling 1-226-828-7578 in Canada or 1-866-813-9403 in the United States (access code: 812672). A copy of the presentation for the call will be available on the company'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.

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