EX-99.1 2 tm2326482d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

GFL Environmental Inc.

 

Unaudited Interim Condensed

Consolidated Financial Statements

For the three and nine months ended September 30, 2023

 

F-1 

 

 

GFL Environmental Inc.

Unaudited Interim Condensed Consolidated Statements of Operations and Comprehensive Income

(In millions of dollars except per share amounts)

 

     

Three months ended

September 30,

  

Nine months ended

September 30,

 
   Notes  2023   2022   2023   2022 
Revenue  11  $1,890.0   $1,831.2   $5,632.7   $4,940.1 
Expenses                       
Cost of sales      1,526.8    1,591.9    4,672.0    4,339.5 
Selling, general and administrative expenses      234.7    187.5    683.4    528.6 
Interest and other finance costs  8   137.2    136.2    466.7    340.7 
Gain on sale of property and equipment      (6.7)   (5.7)   (13.1)   (10.1)
Loss (gain) on foreign exchange      46.9    195.3    (4.6)   249.3 
Mark-to-market (gain) loss on Purchase Contracts  9   —    (10.3)   104.3    (391.4)
Loss (gain) on divestiture  18   —    1.6    (580.5)   (4.9)
Other      (15.2)   3.4    (17.5)   12.5 
       1,923.7    2,099.9    5,310.7    5,064.2 
Share of net income (loss) of investments accounted for using the equity method      34.0    9.2    (48.9)   14.5 
Earnings (loss) before income taxes      0.3    (259.5)   273.1    (109.6)
Current income tax expense (recovery)      18.1    (3.4)   367.5    7.5 
Deferred tax recovery      (36.1)   (72.4)   (188.7)   (153.0)
Income tax (recovery) expense      (18.0)   (75.8)   178.8    (145.5)
Net income (loss) from continuing operations      18.3    (183.7)   94.3    35.9 
Net loss from discontinued operations      —    —    —    (127.9)
Net income (loss)      18.3    (183.7)   94.3    (92.0)
Less: Net loss attributable to non-controlling interests      (3.8)   (0.2)   (3.3)   (0.2)
Net income (loss) attributable to GFL Environmental Inc.      22.1    (183.5)   97.6    (91.8)
                        
Items that may be subsequently reclassified to net income                       
Currency translation adjustment      119.4    420.0    (42.4)   526.3 
Fair value movements on cash flow hedges, net of tax      10.7    (73.4)   25.6    (74.2)
Share of other comprehensive loss of investments accounted for using the equity method      —    —    (0.4)   — 
Reclassification to net income of foreign currency differences on divestitures      —    —    22.5    — 
Other comprehensive income from continuing operations      130.1    346.6    5.3    452.1 
Comprehensive income from continuing operations      148.4    162.9    99.6    488.0 
Comprehensive loss from discontinued operations  19   —    —    —    (127.9)
Total comprehensive income      148.4    162.9    99.6    360.1 
Less: Total comprehensive loss attributable to non-controlling interests      (4.5)   —    (4.3)   — 
Total comprehensive income attributable to GFL Environmental Inc.     $152.9   $162.9   $103.9   $360.1 
                        
Basic and diluted (loss) earnings per share  10                    
Continuing operations     $—   $(0.55)  $0.08   $(0.07)
Discontinued operations      —    —    —    (0.35)
Total operations     $—   $(0.55)  $0.08   $(0.42)

 

The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements.

 

F-2 

 

 

GFL Environmental Inc.

Unaudited Interim Condensed Consolidated Statements of Financial Position

(In millions of dollars)

 

   Notes  September 30, 2023   December 31, 2022 
Assets             
Cash     $174.2   $82.1 
Trade and other receivables, net      1,182.8    1,118.1 
Prepaid expenses and other assets      248.0    182.9 
Current assets      1,605.0    1,383.1 
              
Property and equipment, net  4   6,863.3    6,540.3 
Intangible assets, net  5   3,056.0    3,245.0 
Investments accounted for using the equity method      316.2    326.6 
Other long-term assets      112.6    90.2 
Deferred income tax assets      38.9    — 
Goodwill  5   7,898.4    8,182.4 
Non-current assets      18,285.4    18,384.5 
Total assets      19,890.4    19,767.6 
              
Liabilities             
Accounts payable and accrued liabilities      1,552.8    1,557.7 
Income taxes payable      107.3    — 
Long-term debt  7   —    17.9 
Lease obligations      53.9    51.5 
Due to related party  17   5.8    9.3 
Tangible equity units  9   —    1,024.9 
Landfill closure and post-closure obligations  6   36.5    30.8 
Current liabilities      1,756.3    2,692.1 
              
Long-term debt  7   8,848.9    9,248.9 
Lease obligations      367.6    327.3 
Other long-term liabilities      39.9    47.5 
Due to related party  17   2.9    8.7 
Deferred income tax liabilities      550.0    582.6 
Landfill closure and post-closure obligations  6   811.6    816.4 
Non-current liabilities      10,620.9    11,031.4 
Total liabilities      12,377.2    13,723.5 
              
Shareholders’ equity             
Share capital      9,786.4    8,640.3 
Contributed surplus      130.1    109.6 
Deficit      (2,763.9)   (2,843.0)
Accumulated other comprehensive income      136.6    130.3 
Total GFL Environmental Inc.’s shareholders’ equity      7,289.2    6,037.2 
Non-controlling interests      224.0    6.9 
Total shareholders’ equity      7,513.2    6,044.1 
Total liabilities and shareholders’ equity     $19,890.4   $19,767.6 

 

The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements.

 

F-3 

 

 

GFL Environmental Inc.

Unaudited Interim Condensed Consolidated Statements of Changes in Shareholders’ Equity

(In millions of dollars except per share amounts)

 

          GFL Environmental Inc.’s Shareholders’ Equity         
   Notes 

Share

capital -

# of shares

   Share
capital		  

Contributed

surplus

   Deficit  

Cash flow

hedges,

net of tax

  

Currency

translation

   Total equity
attributable
to
shareholders		   Non-controlling
interests		   Total
shareholders’
equity		 
Balance, December 31, 2021      375,061,066   $8,462.9   $77.4   $(2,510.5)  $13.2   $(266.9)  $5,776.1   $—   $5,776.1 
Net loss and comprehensive income      —    —    —    (91.8)   (74.2)   526.1    360.1    —    360.1 
Dividends issued and paid      —    —    —    (15.1)   —    —    (15.1)   —    (15.1)
Share capital issued upon acquisition of subsidiary      3,976,434    154.5    —    —    —    —    154.5    —    154.5 
Non-controlling interests measured upon acquisition of subsidiary      —    —    —    —    —    —    —    6.0    6.0 
Cancelled shares      (8,057)   (0.2)   0.2    —    —    —    —    —    — 
Share capital issued on exercise of share options      450,000    3.7    (3.7)   —    —    —    —    —    — 
Share capital issued on exercise and settlement of RSUs      692,482    17.9    (17.9)   —    —    —    —    —    — 
Share capital issued on TEU conversion      297    —    —    —    —    —    —    —    — 
Share-based payments  13   —    —    40.0    —    —    —    40.0    —    40.0 
Balance, September 30, 2022      380,172,222   $8,638.8   $96.0   $(2,617.4)  $(61.0)  $259.2   $6,315.6   $6.0   $6,321.6 
                                                 
Balance, December 31, 2022      380,211,030   $8,640.3   $109.6   $(2,843.0)  $(52.1)  $182.4   $6,037.2   $6.9   $6,044.1 
Net income and comprehensive income      —    —    —    97.6    25.6    (19.3)   103.9    (4.3)   99.6 
Dividends issued and paid      —    —    —    (18.5)   —    —    (18.5)   —    (18.5)
Non-controlling interests measured upon acquisition of subsidiary      —    —    —    —    —    —    —    213.3    213.3 
Contribution from non-controlling interest      —    —    —    —    —    —    —    8.1    8.1 
Cancelled shares  13   (260)   —    —    —    —    —    —    —    — 
Share capital issued on exercise and settlement of RSUs  13   875,897    36.2    (36.2)   —    —    —    —    —    — 
Share capital issued on TEU conversion  9   25,666,465    1,109.9    —    —    —    —    1,109.9    —    1,109.9 
Share-based payments  13   —    —    56.7    —    —    —    56.7    —    56.7 
Balance, September 30, 2023      406,753,132   $9,786.4   $130.1   $(2,763.9)  $(26.5)  $163.1   $7,289.2   $224.0   $7,513.2 

 

The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements.

 

F-4 

 

 

GFL Environmental Inc.

Unaudited Interim Condensed Consolidated Statements of Cash Flows

(In millions of dollars)

 

     

Three months ended

September 30,

  

Nine months ended

September 30,

 
   Notes  2023   2022   2023   2022 
Operating activities                       
Net income (loss)     $18.3   $(183.7)  $94.3   $(92.0)
Adjustments for non-cash items                       
Depreciation of property and equipment  4   242.3    264.0    719.9    736.8 
Amortization of intangible assets  5   106.9    124.2    379.7    383.3 
Share of net (income) loss of investments accounted for using the equity method      (34.0)   (9.2)   48.9    (14.5)
Loss (gain) on divestiture  18   —    1.6    (580.5)   (4.9)
Other      (15.2)   3.4    (17.5)   12.5 
Impairment related to discontinued operations  19   —    —    —    128.1 
Interest and other finance costs  8   137.2    136.2    466.7    344.2 
Share-based payments  13   26.5    13.4    56.7    40.0 
Loss (gain) on unrealized foreign exchange on long-term debt and TEUs      47.2    196.3    (3.5)   249.6 
Gain on sale of property and equipment      (6.7)   (5.7)   (13.1)   (10.1)
Mark-to-market (gain) loss on Purchase Contracts  9   —    (10.3)   104.3    (391.4)
Current income tax expense (recovery)      18.1    (3.4)   367.5    7.6 
Deferred tax recovery      (36.1)   (72.4)   (188.7)   (154.9)
Interest paid in cash on Amortizing Notes component of TEUs      —    (0.4)   (0.2)   (1.7)
Interest paid in cash, excluding interest paid on Amortizing Notes      (134.8)   (113.2)   (411.5)   (296.9)
Income taxes paid in cash, net      (250.9)   (2.6)   (261.8)   (22.1)
Changes in non-cash working capital items  14   12.9    (40.8)   (169.6)   (201.2)
Landfill closure and post-closure expenditures  6   (5.9)   (11.3)   (12.6)   (19.1)
       125.8    286.1    579.0    693.3 
Investing activities                       
Purchase of property and equipment      (276.3)   (207.6)   (823.6)   (529.5)
Proceeds from disposal of assets and other      30.6    2.5    51.0    8.9 
Proceeds from divestitures      —    9.9    1,645.9    319.7 
Business acquisitions and investments, net of cash acquired  3   (392.3)   (139.5)   (674.7)   (1,129.0)
       (638.0)   (334.7)   198.6    (1,329.9)
Financing activities                       
Repayment of lease obligations      (30.8)   (16.8)   (69.4)   (51.8)
Issuance of long-term debt      1,069.0    155.0    3,032.1    1,446.1 
Repayment of long-term debt      (412.2)   (40.3)   (3,597.1)   (588.2)
Proceeds from termination of hedged arrangements      —    —    17.3    — 
Payment of contingent purchase consideration and holdbacks  3   (0.6)   (2.9)   (4.6)   (13.1)
Repayment of Amortizing Notes      —    (14.8)   (15.7)   (43.0)
Dividends issued and paid      (6.4)   (5.4)   (18.5)   (15.1)
Payment of financing costs      (11.2)   (0.7)   (26.2)   (2.6)
Repayment of loan to related party  17   (2.9)   (6.4)   (9.3)   (12.8)
Contribution from non-controlling interest      —    —    8.1    — 
       604.9    67.7    (683.3)   719.5 
                        
Increase in cash      92.7    19.1    94.3    82.9 
Changes due to foreign exchange revaluation of cash      (0.7)   (12.3)   (2.2)   (35.9)
Cash, beginning of period      82.2    230.6    82.1    190.4 
Cash, end of period     $174.2   $237.4   $174.2   $237.4 

 

The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements.

 

F-5 

 

 

GFL Environmental Inc. - Notes to the Consolidated Financial Statements

(In millions of dollars except per share amounts or otherwise stated)

 

1. REPORTING ENTITY

 

GFL Environmental Inc. (“GFL” or the “Company”) was formed on March 5, 2020 under the laws of the Province of Ontario. GFL’s subordinate voting shares trade on the New York Stock Exchange and the Toronto Stock Exchange under the symbol “GFL”.

 

GFL is in the business of providing non-hazardous solid waste management and environmental services. These services are provided through GFL and its subsidiaries and a network of facilities across Canada and the United States. GFL’s registered office is Suite 500, 100 New Park Place, Vaughan, ON, L4K 0H9.

 

These unaudited interim condensed consolidated financial statements (the “Interim Financial Statements”) include the accounts of GFL and its subsidiaries as at September 30, 2023.

 

The Board of Directors approved the Interim Financial Statements on November 1, 2023.

 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES    

 

Statement of compliance

 

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 as issued by the International Accounting Standards Board.

 

The Interim Financial Statements do not include all disclosures required in the annual consolidated financial statements and should be read in conjunction with GFL’s annual consolidated financial statements for the year ended December 31, 2022 (the “Annual Financial Statements”).

 

Basis of measurement

 

The Interim Financial Statements were prepared on the historical cost basis except for certain financial instruments that are measured at fair value at the end of the reporting period as detailed in the Annual Financial Statements.

 

Presentation and functional currency

 

The Interim Financial Statements are presented in Canadian dollars which is GFL’s functional currency.

 

Use of estimates and judgments

 

The preparation of the Interim Financial Statements requires management to make estimates and use judgment that affect the reported amounts of revenue, expenses, assets, liabilities and accompanying disclosures. Accordingly, actual results may differ from estimated amounts as future confirming events occur. Significant estimates and judgments used in the preparation of the Interim Financial Statements are described in the Annual Financial Statements.

 

Accounting policies

 

The accounting policies adopted in the preparation of the Interim Financial Statements are consistent with those followed in the preparation of the Annual Financial Statements.

 

New and amended standards adopted

 

A number of amended standards became applicable for the current reporting period. GFL was not required to change its accounting policies or make retrospective adjustments as a result of adopting the applicable amended standards.

 

New accounting standards issued but not yet effective

 

Certain new accounting standards and interpretations have been published that are not mandatory for the current period and have not been early adopted. The standards applicable to GFL are not expected to have a material impact on these Interim Financial Statements.

 

F-6 

 

 

GFL Environmental Inc. - Notes to the Consolidated Financial Statements

(In millions of dollars except per share amounts or otherwise stated)

 

3. BUSINESS COMBINATIONS AND INVESTMENTS  

 

For the nine months ended September 30, 2023, GFL acquired 27 businesses, of which 19 were solid waste management businesses, and each of which GFL considers to be individually immaterial.

 

The following table presents the purchase price allocation based on the best information available to GFL to date:

 

  

Three months ended

September 30, 2023

  

Nine months ended

September 30, 2023

 
Net working capital, including cash acquired of $1.7 million and $5.5 million, respectively  $(8.0)  $(6.9)
Property and equipment   362.8    437.5 
Intangible assets   194.0    322.6 
Goodwill   368.7    418.9 
Lease obligations   (23.6)   (27.1)
Long-term debt   (182.5)   (182.5)
Other long-term liabilities   (0.1)   (0.8)
Landfill closure and post-closure obligations   (17.2)   (17.2)
Deferred income tax liabilities   (98.2)   (106.1)
Net assets acquired  $595.9   $838.4 
           
Share capital in subsidiary issued  $7.4    7.4 
Cash paid   382.6    625.1 
Contribution from non-controlling interest   205.9    205.9 
Total consideration  $595.9   $838.4 

 

In addition to the cash consideration noted above, during the three and nine months ended September 30, 2023, GFL paid $0.6 million and $4.6 million in additional consideration related to acquisitions from prior years.

 

F-7 

 

 

GFL Environmental Inc. - Notes to the Consolidated Financial Statements

(In millions of dollars except per share amounts or otherwise stated)

 

GFL finalizes purchase price allocations relating to acquisitions within 12 months of the respective acquisition date and, as a result, there may be differences between the provisional estimates reflected above and the final acquisition accounting. During the nine months ended September 30, 2023, GFL finalized the purchase price allocations for certain acquisitions resulting in an increase in net working capital of $3.6 million, an increase in property and equipment of $23.0 million, an increase in intangible assets of $21.3 million, an increase in deferred income tax liabilities of $4.1 million and a decrease in goodwill of $43.8 million.

 

Approximately $88.4 million and $122.3 million of the goodwill acquired during the three and nine months ended September 30, 2023 ($12.5 million and $686.9 million during the three and nine months ended September 30, 2022) is expected to be deductible for tax purposes.

 

Since the respective acquisition dates, revenue and earnings before income taxes of approximately $115.3 million and $16.8 million, respectively, attributable to the 2023 acquisitions, are included in these Interim Financial Statements.

 

Pro forma results of operations

 

If the 2023 acquisitions had occurred on January 1, 2023, the unaudited consolidated pro forma revenue and earnings before income taxes for the nine months ended September 30, 2023 would have been $5,808.0 million and $292.5 million, respectively. The pro forma results do not purport to be indicative of the results of operations which would have resulted had the acquisitions occurred at the beginning of the year, nor are they necessarily indicative of future operating results.

 

Investments in joint ventures and associates

 

During the three and nine months ended September 30, 2023, GFL made contributions of $8.8 million and $27.3 million ($11.2 million and $43.0 million for the three and nine months ended September 30, 2022) to joint ventures.

 

During the three and nine months ended September 30, 2023, GFL made contributions of $nil and $19.0 million ($nil and $nil for the three and nine months ended September 30, 2022) to associates.

 

F-8 

 

 

GFL Environmental Inc. - Notes to the Consolidated Financial Statements

(In millions of dollars except per share amounts or otherwise stated)

 

4. PROPERTY AND EQUIPMENT  

 

The following table presents the changes in cost and accumulated depreciation of GFL’s property and equipment for the periods indicated:

 

   Land,
buildings and
improvements		   Landfills   Vehicles   Machinery
and
equipment		   Assets under
development		   Containers   Right-of-use
assets		   Total 
Cost                                        
Balance, December 31, 2022   1,687.1    2,745.1    2,594.1    1,081.5    51.6    789.0    457.0    9,405.4 
Additions   79.9    154.9    314.7    140.3    115.6    77.4    61.2    944.0 
Acquisitions via business combinations   47.4    184.8    88.8    49.2    0.1    40.1    27.1    437.5 
Adjustments for prior year acquisitions   12.5    —    (0.2)   (0.4)   —    —    —    11.9 
Adjustments for asset retirement obligations   —    (61.2)   —    —    —    —    —    (61.2)
Disposals   (72.2)   (45.1)   (249.7)   (47.9)   (6.7)   (57.2)   (17.5)   (496.3)
Transfers   12.6    13.2    8.6    0.9    (34.2)   0.3    (1.4)   — 
Changes in foreign exchange   (2.7)   (3.7)   (6.2)   (1.4)   (0.2)   (2.3)   (0.1)   (16.6)
Balance, September 30, 2023   1,764.6    2,988.0    2,750.1    1,222.2    126.2    847.3    526.3    10,224.7 
                                         
Accumulated depreciation                                        
Balance, December 31, 2022   171.0    804.1    987.3    468.3    —    272.5    161.9    2,865.1 
Depreciation   52.0    195.9    213.5    117.4    —    84.2    52.1    715.1 
Disposals   (13.3)   (19.8)   (128.9)   (26.0)   —    (26.2)   (8.6)   (222.8)
Impairment   —    —    8.7    0.1    —    —    —    8.8 
Changes in foreign exchange   (0.3)   (1.1)   (2.1)   (0.5)   —    (0.6)   (0.2)   (4.8)
Balance, September 30, 2023   209.4    979.1    1,078.5    559.3    —    329.9    205.2    3,361.4 
                                         
Carrying amounts                                        
At December 31, 2022  $1,516.1   $1,941.0   $1,606.8   $613.2   $51.6   $516.5   $295.1   $6,540.3 
At September 30, 2023  $1,555.2   $2,008.9   $1,671.6   $662.9   $126.2   $517.4   $321.1   $6,863.3 

 

For the three and nine months ended September 30, 2023, total depreciation of property and equipment was $242.3 million and $719.9 million ($264.0 million and $732.1 million for the three and nine months ended September 30, 2022). Of the total depreciation for the three and nine months ended September 30, 2023, $236.1 million and $700.2 million was included in cost of sales ($256.9 million and $709.7 million for the three and nine months ended September 30, 2022) and $6.2 million and $19.7 million was included in selling, general and administrative expenses ($7.1 million and $22.4 million for the three and nine months ended September 30, 2022).

 

Depreciation of property and equipment of $719.9 million for the nine months ended September 30, 2023 ($736.8 million for the nine months ended September 30, 2022) as presented in the statement of cash flows was comprised of depreciation of $715.1 million ($729.0 million for the nine months ended September 30, 2022) shown in the table above and depreciation of $4.8 million ($7.8 million for the nine months ended September 30, 2022) due to the difference between the ARO calculated using the credit-adjusted, risk-free discount rate required for measurement of the ARO through purchase accounting, compared to the risk-free discount rate required for annual valuations.

 

F-9 

 

 

GFL Environmental Inc. - Notes to the Consolidated Financial Statements

(In millions of dollars except per share amounts or otherwise stated)

 

5. GOODWILL AND INTANGIBLE ASSETS  

 

The following table presents the changes in cost and accumulated amortization of GFL’s goodwill and intangible assets for the periods indicated:

 

   Goodwill   Indefinite life
C of A		   Customer lists
and municipal
contracts		  

Trade name,
definite life

C of A

and other

licenses

  

Non-compete

agreements

   Total 
Cost                              
Balance, December 31, 2022   8,182.4    839.7    3,592.7    108.1    564.2    13,287.1 
Acquisitions via business combinations   418.9    3.3    298.4    5.8    15.1    741.5 
Adjustments for prior year acquisitions   (29.0)   —    17.2    —    1.1    (10.7)
Other   —    —    9.2    —    —    9.2 
Disposals   (650.2)   (9.7)   (254.2)   —    (67.0)   (981.1)
Changes in foreign exchange   (23.7)   (0.3)   (7.5)   (0.2)   (2.1)   (33.8)
Balance, September 30, 2023   7,898.4    833.0    3,655.8    113.7    511.3    13,012.2 
                               
Accumulated amortization                              
Balance, December 31, 2022   —    —    1,527.5    32.6    299.6    1,859.7 
Amortization   —    —    300.8    4.4    74.5    379.7 
Disposals   —    —    (136.1)   —    (41.7)   (177.8)
Changes in foreign exchange   —    —    (3.0)   —    (0.8)   (3.8)
Balance, September 30, 2023   —    —    1,689.2    37.0    331.6    2,057.8 
                               
Carrying amounts                              
At December 31, 2022  $8,182.4   $839.7   $2,065.2   $75.5   $264.6   $11,427.4 
At September 30, 2023  $7,898.4   $833.0   $1,966.6   $76.7   $179.7   $10,954.4 

 

All intangible asset amortization expense is included in cost of sales.

 

F-10 

 

 

GFL Environmental Inc. - Notes to the Consolidated Financial Statements

(In millions of dollars except per share amounts or otherwise stated)

 

6. LANDFILL CLOSURE AND POST-CLOSURE OBLIGATIONS  

 

The following table presents GFL’s landfill closure and post-closure obligations for the periods indicated:

 

Balance, December 31, 2022  $847.2 
Acquisitions via business combinations   17.2 
Disposals   (15.0)
Provisions   48.6 
Adjustment for discount and inflation rates   (61.2)
Accretion   25.3 
Expenditures   (12.6)
Changes in foreign exchange   (1.4)
Balance, September 30, 2023   848.1 
Less: Current portion of landfill closure and post-closure obligations   (36.5)
Non-current portion of landfill closure and post-closure obligations  $811.6 

 

The maturation of GFL’s landfill closure and post-closure obligations has not materially changed since December 31, 2022.

 

Funded landfill post-closure assets

 

GFL is required to deposit funds into trusts to settle post-closure obligations for landfills in certain jurisdictions. As at September 30, 2023, included in other long-term assets are funded landfill post-closure obligations, representing the fair value of legally restricted assets, totaling $27.5 million ($26.1 million as at December 31, 2022).

 

F-11 

 

 

GFL Environmental Inc. - Notes to the Consolidated Financial Statements

(In millions of dollars except per share amounts or otherwise stated)

 

7. LONG-TERM DEBT  

 

The following table presents GFL’s long-term debt for the periods indicated:

   September 30, 2023   December 31, 2022 
Revolving credit facility  $622.0   $771.8 
Term Loan A Facility   775.0    500.0 
Term Loan B Facility   985.6    1,742.7 
Notes(1)          
4.250% USD senior secured notes (“4.250% 2025 Secured Notes”)(2)   676.0    677.2 
3.750% USD senior secured notes (“3.750% 2025 Secured Notes”)(3)   1,014.0    1,015.8 
5.125% USD senior secured notes (“5.125% 2026 Secured Notes”)(4)   676.0    677.2 
3.500% USD senior secured notes (“3.500% 2028 Secured Notes”)(5)   1,014.0    1,015.8 
4.000% USD senior notes (“4.000% 2028 Notes”)(6)   1,014.0    1,015.8 
4.750% USD senior notes (“4.750% 2029 Notes”)(7)   1,014.0    1,015.8 
4.375% USD senior notes (“4.375% 2029 Notes”)(8)   743.6    744.9 
Other   321.8    75.0 
Subtotal   8,856.0    9,252.0 
Discount   (4.7)   (5.5)
Derivative liability   69.8    79.9 
Deferred finance costs   (72.2)   (59.6)
Total long-term debt   8,848.9    9,266.8 
Less: Current portion of long-term debt   —    17.9 
Non-current portion of long-term debt  $8,848.9   $9,248.9 
           
Total long-term debt   8,848.9    9,266.8 
Less: Derivative asset   (51.2)   (58.3)
Total long-term debt, net of derivative asset  $8,797.7   $9,208.5 

 

(1)Refer to Note 15 for additional information on the hedging arrangements related to the Notes.
(2)The 4.250% 2025 Secured Notes bear interest semi-annually which commenced on December 1, 2020 with principal maturing on June 1, 2025.
(3)The 3.750% 2025 Secured Notes bear interest semi-annually which commenced on February 1, 2021 with principal maturing on August 1, 2025.
(4)The 5.125% 2026 Secured Notes bear interest semi-annually which commenced on December 15, 2019 with principal maturing on December 15, 2026.
(5)The 3.500% 2028 Secured Notes bear interest semi-annually which commenced on September 1, 2021 with principal maturing on September 1, 2028.
(6)The 4.000% 2028 Notes are comprised of US$500.0 million of initial notes and US$250.0 million of additional notes. The initial notes and additional notes bear interest semi-annually which commenced on February 1, 2021 and February 1, 2022, respectively. The total principal matures on August 1, 2028.
(7)The 4.750% 2029 Notes bear interest semi-annually which commenced on December 15, 2021 with principal maturing on June 15, 2029.
(8)The 4.375% 2029 Notes bear interest semi-annually which commenced on February 15, 2022 with principal maturing on August 15, 2029.

 

F-12 

 

 

GFL Environmental Inc. - Notes to the Consolidated Financial Statements

(In millions of dollars except per share amounts or otherwise stated)

 

Revolving credit facility and term loan facility

 

Under the amended and restated revolving credit agreement dated as of August 17, 2023 (the “Revolving Credit Agreement”), GFL has access to (a) a $1,205.0 million revolving credit facility (available in Canadian and US dollars) and an aggregate US$75.0 million in revolving credit facilities (available in US dollars) (collectively, the “Revolving Credit Facility”) and (b) a term loan of $775.0 million (the “Term Loan A Facility”). The Revolving Credit Facility and Term Loan A Facility mature on September 27, 2026. The Revolving Credit Facility and Term Loan A Facility accrue interest at a rate of SOFR/Bankers Acceptance plus 1.500% to 2.250% or Canadian/US prime plus 0.500% to 1.250%. The Revolving Credit Facility and Term Loan A Facility are secured by mortgages on certain properties, a general security agreement over all of the assets of GFL and certain material subsidiaries and a pledge of the shares of such subsidiaries.

 

The Revolving Credit Agreement contains a Total Net Funded Debt to Adjusted EBITDA and an Interest Coverage Ratio (each as defined in the Revolving Credit Agreement) financial maintenance covenant.

 

The Total Net Funded Debt to Adjusted EBITDA ratio to be maintained is equal to or less than 6.00 to 1.00 for a period of four complete fiscal quarters following completion of a Material Acquisition and at all other times, equal to or less than 5.75 to 1.00. The Interest Coverage Ratio must be equal to or greater than 3.00 to 1.00. As at September 30, 2023 and December 31, 2022, GFL was in compliance with these covenants.

 

On January 31, 2023, GFL amended its term loan B facility to extend the maturity date by two years to May 31, 2027 and transition the remainder of the loan from a LIBOR-based interest benchmark to a SOFR-based interest benchmark at a rate of SOFR (with a floor rate at 0.500%) plus 3.000% or US prime plus 2.000% (the “Term Loan B Facility”). On September 22, 2023, GFL amended its Term Loan B Facility to reduce its borrowing rate to SOFR plus 2.500% or US prime plus 1.500%. The Term Loan B Facility is secured by mortgages on certain properties, a general security agreement over all the assets of GFL and certain material subsidiaries and a pledge of the shares of such subsidiaries.

 

Other

 

On March 20, 2023, a 51.0% owned subsidiary amended its credit agreement to include a term loan of US$13.0 million maturing September 21, 2025. The net proceeds from this term loan were used to fund acquisitions.

 

On September 1, 2023, GFL acquired a 51.0% controlling interest in an entity that has a credit facility, under which it has access to (a) a term loan of US$170.0 million and (b) a US$100.0 million revolving credit facility. The term loan and revolving credit facility mature on August 31, 2028 and have a borrowing rate of base or SOFR adjusted rate plus a spread between 2.00% to 3.25%. As at September 30, 2023, the entity had US$170.0 million drawn on the term loan and US$2.5 million drawn on the revolving credit facility.

 

F-13 

 

 

GFL Environmental Inc. - Notes to the Consolidated Financial Statements

(In millions of dollars except per share amounts or otherwise stated)

 

8. INTEREST AND OTHER FINANCE COSTS  

 

The following table presents GFL’s interest and other finance costs for the periods indicated:

 

  

Three months ended

September 30,

  

Nine months ended

September 30,

 
   2023   2022   2023   2022 
Interest  $116.4   $118.9   $395.5   $295.3 
Termination of hedged arrangements   —    —    8.7    — 
Amortization of deferred financing costs   4.3    3.6    13.6    10.1 
Accretion of landfill closure and post-closure obligations   8.9    5.9    25.3    15.1 
Other finance costs   7.6    7.8    23.6    20.2 
Interest and other finance costs  $137.2   $136.2   $466.7   $340.7 

 

9. TANGIBLE EQUITY UNITS  

 

On March 5, 2020, GFL completed its offering of 15,500,000 6.00% tangible equity units (“TEUs”) for total gross proceeds of $1,040.7 million (US$775.0 million). Each TEU had a stated amount of US$50.00 and was comprised of a prepaid stock purchase contract (“Purchase Contract(s)”) and a senior amortizing note (“Amortizing Note(s)”) due March 15, 2023, both of which were freestanding instruments and separate units of account. Holders of the Purchase Contracts had the ability to elect to early convert such Purchase Contracts prior to the automatic conversion date of March 15, 2023, at the then-applicable minimum conversion rate.

 

On March 15, 2023, GFL made the final payment related to the Amortizing Notes and the remaining outstanding Purchase Contracts were automatically converted into subordinate voting shares at a rate of 2.1940 subordinate voting shares per Purchase Contract. As at December 31, 2022, 11,698,543 Purchase Contracts were outstanding.

 

The following table presents the respective components of the TEUs as at the dates indicated:

 

   September 30, 2023   December 31, 2022 
Amortizing Notes  $—   $15.5 
Purchase Contracts   —    1,009.4 
    —    1,024.9 
Less: Current portion of TEU   —    (1,024.9)
Non-current portion of TEU  $—   $— 

 

F-14 

 

 

GFL Environmental Inc. - Notes to the Consolidated Financial Statements

(In millions of dollars except per share amounts or otherwise stated)

 

10. (LOSS) EARNINGS PER SHARE  

 

The following table presents GFL’s (loss) earnings per share for the periods indicated:

 

  

Three months ended

September 30,

  

Nine months ended

September 30,

 
   2023   2022   2023   2022 
Net income (loss) attributable to GFL Environmental Inc.  $22.1   $(183.5)  $97.6   $(91.8)
                     
Less:                    
Net loss from discontinued operations   —    —    —    (127.9)
Amounts attributable to preferred shareholders   22.5    20.6    67.8    60.6 
Adjusted net (loss) income from continuing operations for basic and diluted (loss) earnings per share   (0.4)   (204.1)   29.8    (24.5)
                     
Weighted and diluted weighted average number of shares outstanding   369,556,706    368,627,958    369,320,689    366,521,465 
Effect of dilutive instruments   —    —    2,686,903    — 
Diluted weighted average number of shares outstanding   369,556,706    368,627,958    372,007,592    366,521,465 
                     
Basic and diluted (loss) earnings per share                    
Continuing operations  $—   $(0.55)  $0.08   $(0.07)
Discontinued operations   —    —    —    (0.35)
Total operations  $—   $(0.55)  $0.08   $(0.42)

 

Basic and diluted (loss) earnings per share includes the minimum conversion of TEUs into subordinate voting shares, which represented nil subordinate voting shares as at September 30, 2023 (25,663,094 subordinate voting shares as at September 30, 2022). Diluted (loss) earnings per share excludes anti-dilutive effects of time-based share options, RSUs (defined below), Preferred Shares (defined below), and any amount of subordinate voting shares arising from the conversion of TEUs in excess of the minimum conversion.

 

F-15 

 

 

GFL Environmental Inc. - Notes to the Consolidated Financial Statements

(In millions of dollars except per share amounts or otherwise stated)

 

11. REVENUE  

 

The following table presents GFL’s revenue disaggregated by service type for the periods indicated:

 

  

Three months ended

September 30,

  

Nine months ended

September 30,

 
   2023   2022   2023   2022 
Residential  $367.2   $387.8   $1,160.2   $1,087.5 
Commercial/industrial   713.7    657.5    2,162.0    1,781.8 
Total collection   1,080.9    1,045.3    3,322.2    2,869.3 
Landfill   244.3    229.3    695.9    614.6 
Transfer   194.3    178.7    561.6    495.6 
Material recovery   76.5    85.0    242.5    268.1 
Other   107.7    120.0    306.4    296.7 
Solid Waste   1,703.7    1,658.3    5,128.6    4,544.3 
Environmental Services   431.1    390.9    1,208.1    990.3 
Intercompany revenue   (244.8)   (218.0)   (704.0)   (594.5)
Revenue  $1,890.0   $1,831.2   $5,632.7   $4,940.1 

 

12. OPERATING SEGMENTS  

 

The following tables present GFL’s revenue and Adjusted EBITDA by operating segment for the periods indicated. Gross revenue is calculated based on revenue before intercompany revenue eliminations.

 

   Three months ended September 30, 2023 
   Gross Revenue   Intercompany Revenue   Revenue  

Adjusted

EBITDA

 
Solid Waste                    
Canada  $543.4   $(69.8)  $473.6   $133.7 
USA   1,160.3    (131.4)   1,028.9    338.1 
Solid Waste   1,703.7    (201.2)   1,502.5    471.8 
Environmental Services   431.1    (43.6)   387.5    119.9 
Corporate   —    —    —    (61.4)
   $2,134.8   $(244.8)  $1,890.0   $530.3 

 

   Three months ended September 30, 2022 
   Gross Revenue   Intercompany Revenue   Revenue  

Adjusted

EBITDA

 
Solid Waste                    
Canada  $516.3   $(69.0)  $447.3   $122.4 
USA   1,142.0    (122.5)   1,019.5    300.8 
Solid Waste   1,658.3    (191.5)   1,466.8    423.2 
Environmental Services   390.9    (26.5)   364.4    96.5 
Corporate   —    —    —    (46.4)
   $2,049.2   $(218.0)  $1,831.2   $473.3 

 

F-16 

 

 

GFL Environmental Inc. - Notes to the Consolidated Financial Statements

(In millions of dollars except per share amounts or otherwise stated)

 

   Nine months ended September 30, 2023 
   Gross Revenue   Intercompany Revenue   Revenue  

Adjusted

EBITDA

 
Solid Waste                    
Canada  $1,547.4   $(195.5)  $1,351.9   $371.0 
USA   3,581.2    (392.1)   3,189.1    1,029.7 
Solid Waste   5,128.6    (587.6)   4,541.0    1,400.7 
Environmental Services   1,208.1    (116.4)   1,091.7    293.6 
Corporate   —    —    —    (182.8)
   $6,336.7   $(704.0)  $5,632.7   $1,511.5 

 

   Nine months ended September 30, 2022 
   Gross Revenue   Intercompany Revenue   Revenue  

Adjusted

EBITDA

 
Solid Waste                    
Canada  $1,422.4   $(184.7)  $1,237.7   $333.9 
USA   3,121.9    (339.9)   2,782.0    845.7 
Solid Waste   4,544.3    (524.6)   4,019.7    1,179.6 
Environmental Services   990.3    (69.9)   920.4    234.4 
Corporate   —    —    —    (133.0)
   $5,534.6   $(594.5)  $4,940.1   $1,281.0 

 

The following table presents GFL’s reconciliation of net income (loss) from continuing operations to Adjusted EBITDA for the periods indicated:

 

  

Three months ended

September 30,

  

Nine months ended

September 30,

 
   2023   2022   2023   2022 
Net income (loss) from continuing operations  $18.3   $(183.7)  $94.3   $35.9 
Add:                    
Depreciation of property and equipment   242.3    264.0    719.9    732.1 
Amortization of intangible assets   106.9    124.2    379.7    382.1 
Interest and other finance costs   137.2    136.2    466.7    340.7 
Income tax (recovery) expense   (18.0)   (75.8)   178.8    (145.5)
Loss (gain) on foreign exchange   46.9    195.3    (4.6)   249.3 
Gain on sale of property and equipment   (6.7)   (5.7)   (13.1)   (10.1)
Mark-to-market (gain) loss on Purchase Contracts   —    (10.3)   104.3    (391.4)
Share of net (income) loss of investments accounted for using the equity method   (34.0)   (9.2)   48.9    (14.5)
Share-based payments   26.5    13.4    56.7    38.2 
Loss (gain) on divestiture   —    1.6    (580.5)   (4.9)
Transaction costs   22.3    13.6    63.9    36.9 
Acquisition, rebranding and other integration costs   3.8    6.3    14.0    19.7 
Other   (15.2)   3.4    (17.5)   12.5 
Adjusted EBITDA  $530.3   $473.3   $1,511.5   $1,281.0 

 

F-17 

 

 

GFL Environmental Inc. - Notes to the Consolidated Financial Statements

(In millions of dollars except per share amounts or otherwise stated)

 

Goodwill and indefinite life intangible assets by operating segment

 

The carrying amount of goodwill and indefinite life intangible assets allocated to the operating segments is as follows:

 

   September 30, 2023   December 31, 2022 
Solid Waste          
Canada  $2,092.4   $2,079.6 
USA   5,676.2    6,046.2 
Environmental Services   962.8    896.3 
   $8,731.4   $9,022.1 

 

13. SHAREHOLDER'S CAPITAL  

 

Authorized capital

 

GFL’s authorized share capital consists of (i) an unlimited number of subordinate voting shares, (ii) an unlimited number of multiple voting shares, (iii) an unlimited number of preferred shares, issuable in series, (iv) 28,571,428 Series A perpetual convertible preferred shares (the “Series A Preferred Shares”) and (v) 8,196,721 Series B perpetual convertible preferred shares (the “Series B Preferred Shares”). The Series A Preferred Shares and Series B Preferred Shares are collectively referred to as the “Preferred Shares”.

 

Normal course issuer bid

 

On May 10, 2023, the Toronto Stock Exchange accepted GFL’s notice of intention to renew its normal course issuer bid (“NCIB”) during the twelve-month period commencing on May 12, 2023 and ending May 11, 2024. Under the NCIB, a maximum of 17,867,120 subordinate voting shares may be repurchased by GFL. GFL’s previous NCIB, which expired on May 11, 2023, authorized the purchase of up to 16,510,694 subordinate voting shares. All subordinate voting shares repurchased by GFL under the NCIB will be cancelled. During the three and nine months ended September 30, 2023 and September 30, 2022, GFL did not repurchase any subordinate voting shares under the NCIB.

 

Share issuances and cancellations

 

The following table presents GFL’s share capital for the periods indicated:

 

   Subordinate
voting shares		   Multiple voting
shares		   Preferred
shares		   Total 
Balance, December 31, 2022   331,629,917    11,812,964    36,768,149    380,211,030 
Converted from RSUs   875,897    —    —    875,897 
Converted from TEUs   25,666,465    —    —    25,666,465 
Cancelled during the year   (260)   —    —    (260)
Balance, September 30, 2023   358,172,019    11,812,964    36,768,149    406,753,132 

 

F-18 

 

 

GFL Environmental Inc. - Notes to the Consolidated Financial Statements

(In millions of dollars except per share amounts or otherwise stated)

 

Share options, restricted share units (“RSUs”), and deferred share units (“DSUs”)

 

Share options

 

Changes in the number of share options held by officers and employees with their average exercise price per option are summarized below:

 

   Options   Weighted average
exercise price (US$)		 
Share options outstanding, December 31, 2022   22,128,582   $32.59 
Granted   150,000    33.00 
Share options outstanding, September 30, 2023   22,278,582   $32.59 
Vested share options, September 30, 2023   8,229,297   $28.93 

 

For the three and nine months ended September 30, 2023, there were no options exercised, cancelled, expired or forfeited.

 

On August 16, 2023, 150,000 options were granted. The options vest on August 16, 2026 and will expire on August 16, 2033. The total grant date fair value of the issued options is US$1.5 million, calculated using a Black-Scholes option valuation model to determine the total fair value of the issued options on the grant date.

 

For the three and nine months ended September 30, 2023, the total compensation expense related to share options amounted to $4.2 million and $14.3 million ($5.1 million and $15.8 million for the three and nine months ended September 30, 2022).

 

RSUs and DSUs

 

The following table presents GFL’s summary of the RSUs and DSUs for the periods indicated:

 

   RSUs   Grant date fair
value (US$)		   DSUs   Grant date fair
value (US$)		 
Outstanding, December 31, 2022   1,906,769   $28.10    60,960   $28.50 
Granted   2,093,490    31.92    20,466    33.96 
Settled   (873,903)   26.84    —    — 
Forfeited   (80,046)   29.66    —    — 
Cancelled   (16,881)   30.25    —    — 
Outstanding, September 30, 2023   3,029,429   $31.05    81,426   $29.87 
Expected to vest, September 30, 2023   2,838,753   $30.99    81,426   $29.87 

 

For the three and nine months ended September 30, 2023, the total compensation expense related to RSUs amounted to $22.0 million and $41.5 million ($8.0 million and $21.6 million for the three and nine months ended September 30, 2022).

 

For the three and nine months ended September 30, 2023, the total compensation expense related to DSUs amounted to $0.3 million and $0.9 million ($0.3 million and $0.8 million for the three and nine months ended September 30, 2022).

 

F-19 

 

 

GFL Environmental Inc. - Notes to the Consolidated Financial Statements

(In millions of dollars except per share amounts or otherwise stated)

 

14. SUPPLEMENTAL CASH FLOW INFORMATION  

 

The following table presents net change in non-cash working capital of GFL for the periods indicated:

 

  

Three months ended

September 30,

  

Nine months ended

September 30,

 
   2023   2022   2023   2022 
Effects of changes in                    
Accounts payable and accrued liabilities  $46.0   $65.4   $(40.5)  $165.1 
Trade and other receivables, net   (36.9)   (111.5)   (50.3)   (329.9)
Prepaid expenses and other assets   3.8    5.3    (78.8)   (36.4)
Changes in non-cash working capital items  $12.9   $(40.8)  $(169.6)  $(201.2)

 

15. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT  

 

GFL’s financial instruments consist of cash, trade accounts receivable, trade accounts payable, long-term debt, including related hedging instruments, and, prior to the automatic conversion on March 15, 2023, the TEUs.

 

Fair value measurement

 

The carrying value of GFL’s financial assets approximate their fair values. The carrying value of GFL’s financial liabilities approximate their fair values with the exception of GFL’s outstanding U.S. dollar secured and unsecured notes (the “Notes”) and prior to maturity on March 15, 2023, the Amortizing Notes. The fair value hierarchy for these instruments are as follows for the periods indicated:

 

   September 30, 2023 
   Carrying Value   Fair Value   Level 1   Level 2   Level 3 
Notes  $6,148.2   $5,557.4   $—   $5,557.4   $— 

 

   December 31, 2022 
   Carrying Value   Fair Value   Level 1   Level 2   Level 3 
Notes  $6,157.0   $5,568.6   $—   $5,568.6   $— 
Amortizing Notes   15.5    15.5    15.5    —    — 

 

GFL uses a discounted cash flow model incorporating observable market data, such as foreign currency forward rates, to estimate the fair value of its Notes. Certain leases, other loans and amounts due to related parties do not bear interest or bear interest at an amount that is not stated at fair value.

 

Net derivative instruments are recorded at fair value and classified within Level 2. Prior to the automatic conversion on March 15, 2023, Purchase Contracts were recorded at fair value and classified within Level 1.

 

Financial risk management objectives

 

On March 29, 2023, GFL terminated the cross currency swap relating to the Term Loan B Facility. For the three and nine months ended September 30, 2023 there were no other changes to the financial risk management policies disclosed in the Annual Financial Statements.

 

F-20 

 

 

GFL Environmental Inc. - Notes to the Consolidated Financial Statements

(In millions of dollars except per share amounts or otherwise stated)

 

16. COMMITMENTS  

 

Letters of credit

 

As at September 30, 2023, GFL had letters of credit totaling approximately $244.9 million outstanding ($233.0 million as at December 31, 2022), which are not recognized in the Interim Financial Statements. Interest expense in connection with these letters of credit was $1.3 million and $3.9 million for the three and nine months ended September 30, 2023 ($1.2 million and $3.5 million for the three and nine months ended September 30, 2022).

 

Performance bonds

 

As at September 30, 2023, GFL had issued performance bonds totaling $1,641.5 million ($1,560.7 million as at December 31, 2022).

 

17. RELATED PARTY TRANSACTIONS  

 

After the final payment of the semi-annual instalment of $3.5 million, the remaining principal outstanding on the note payable to Josaud Holdings Inc. (an entity controlled by Patrick Dovigi) was $nil as at September 30, 2023 ($3.5 million as at December 31, 2022).

 

After the payment of the semi-annual instalment of $2.9 million, the remaining principal outstanding on the note payable to Sejosa Holdings Inc. (an entity controlled by Patrick Dovigi) was $8.7 million as at September 30, 2023 ($14.5 million as at December 31, 2022).

 

For the three and nine months ended September 30, 2023, GFL paid $2.4 million and $6.4 million ($1.6 million and $4.0 million for the three and nine months ended September 30, 2022) in aggregate lease payments to related parties.

 

For the three and nine months ended September 30, 2023, GFL entered into transactions with Green Infrastructure Partners Inc. (“GIP”) which resulted in revenue of $6.3 million and $18.3 million ($10.2 million and $13.9 million for the three and nine months ended September 30, 2022) and net receivables of $12.8 million as at September 30, 2023 (net payables of $3.8 million as at December 31, 2022).

 

18. DIVESTITURES

 

During the nine months ended September 30, 2023, GFL divested three non-core U.S. Solid Waste businesses for aggregate proceeds of $1,645.9 million, and a resulting gain on divestiture of $575.0 million.

 

The three non-core U.S. Solid Waste businesses, which were included within GFL’s Solid Waste USA segment, did not meet the criteria to be classified as discontinued operations as they do not represent a major line of business or geographical area of operations.

 

F-21 

 

 

GFL Environmental Inc. - Notes to the Consolidated Financial Statements

(In millions of dollars except per share amounts or otherwise stated)

 

19. DISCONTINUED OPERATIONS

 

On April 25, 2022, GFL announced the completion of the divestiture of GFL’s Infrastructure services division (“GFL Infrastructure”) for cash consideration of $224.0 million and an approximate 45% non-controlling equity interest in GIP, an entity that is controlled by funds managed by HPS Investment Partners Inc. through a majority equity interest. An affiliate controlled by Patrick Dovigi holds a minority equity interest in GIP.

 

The results of GFL Infrastructure are presented as a single amount on the statement of operations and comprehensive income. The post-tax results of the discontinued operations for the periods indicated are as follows:

 

  

Three months ended

September 30,

  

Nine months ended

September 30,

 
   2023   2022   2023   2022 
Revenue  $—   $—   $—   $96.8 
Expenses   —    —    —    98.4 
Loss before income taxes   —    —    —    (1.6)
Income tax recovery   —    —    —    (1.8)
Net income   —    —    —    0.2 
Impairment   —    —    —    (128.1)
Net loss and comprehensive loss from discontinued operations  $—   $—   $—   $(127.9)

 

Cash flow information for GFL Infrastructure is as follows:

 

  

Three months ended

September 30,

  

Nine months ended

September 30,

 
   2023   2022   2023   2022 
Operating cash flows from discontinued operations  $—   $—   $—   $(35.4)
Investing cash flows from discontinued operations   —    —    —    (7.2)
Financing cash flows from discontinued operations   —    —    —    (1.0)
Decrease in cash from discontinued operations  $—   $—   $—   $(43.6)

 

F-22