GFL Environmental Inc. has announced its third quarter 2022 results.
GFL Founder and CEO Patrick Dovigi said: “Revenue increased 32.6% year-on-year, driven by pricing, continued strong volume growth in the environmental services segment, and contributions from M&A. “We have achieved great success and continue to see significant opportunities in this area.The impact of fuel and commodity prices has resulted in our record solid waste pricing increasing margins in our underlying business.”
“This year’s results demonstrate the continued maturity of our business model even in the face of unprecedented cost headwinds,” said Patrick Devisi. Demonstrated the business’s ability to grow and maintain net leverage within target on a constant currency basis despite a 300-400 basis point rise in interest rates and more than $1.1 billion in M&A We remain committed to significantly reducing our leverage ratio in the short term.
“With strong third quarter results and the current outlook for foreign exchange rates and commodity prices, we have increased our full-year earnings guidance to $6.65 billion from $6.6 billion, and have previously forecast Adjusted EBITDA and Adjusted EBITDA to Looking into 2023, we believe the company is already well positioned to achieve high single-digit organic earnings growth. Combining 3% M&A rollover revenue with the impact of current commodity prices and foreign exchange rates, we expect to point to at least 12% revenue growth when we release our 2023 outlook next quarter. On the profitability side, we believe the widening gap between price and cost inflation will allow us to significantly expand our adjusted EBITDA margin by 100 basis points, which is a late teens adjustment. A strong M&A pipeline and organic growth initiatives create opportunities in front of us.”
Third quarter results
- Revenue increased 32.6% in the third quarter of 2022 to $1,831.2 million compared to the third quarter of 2021.
- Environmental Services revenue of $364.4 million, 37.0% impacted by strong industrial collection and treatment activity at the facility, increased emergency response activity and higher used motor oil selling prices of organic growth.
- Adjusted EBITDA increased 18.4% to $473.3 million in the third quarter of 2022 compared to the third quarter of 2021. percentage adjusted for the sale of GFL infrastructure). Solid waste adjusted EBITDA margin was 28.9% in Q3 2022, compared with 31.7% in Q3 2021.
- Net loss from continuing operations decreased to $183.7 million in the third quarter of 2022 compared to $316.1 million in the third quarter of 2021.
- Adjusted free cash flow was $97 million in the third quarter of 2022, compared with $263.1 million in the third quarter of 2021.
- Capital expenditures for the third quarter of 2022 were $209.4 million, which included $11.2 million for the development and construction of the RNG project and gross proceeds from the sale and disposal of assets of $12.4 million. $26.1 million in total in the third quarter of 2021. Proceeds from sale and disposal of assets of $101.2 million.
Year-to-date results
- Revenue increased 33.6% to $4,940.1 million for the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021.
- Environmental Services revenues of $920.4 million were up 28.2% due to strong industrial collection and treatment activity at the facility, increased emergency response activity, and higher used motor oil selling prices. Includes organic growth.
- Adjusted EBITDA for the nine months ended September 30, 2022 increased 23.8% to $1,281 million compared to the nine months ended September 30, 2021. Percentage for the nine months ended September 30, 2021 (28.0% adjusted for the sale of GFL Infrastructure). Solid waste adjusted EBITDA margin was 29.3% for the nine months ended September 30, 2022, compared with 31.2% for the nine months ended September 30, 2021.
- Net income from continuing operations was $35.9 million for the nine months ended September 30, 2022, compared with a net loss of $545.3 million for the nine months ended September 30, 2021. Increased.
- Adjusted free cash flow was $317.8 million for the nine months ended September 30, 2022, compared with $537.1 million for the nine months ended September 30, 2021 did.
