GFL Environmental (GFL) announced earnings for the second quarter of 2021. Revenue growth is a big highlight with a 32% year over year (YOY) boost. GFL’s management team credits its pricing, volume improvements and outperformance from M&A for exceeding expectations again this quarter.
Here are some highlights from the Company:
- Revenue of $1.31B (+32% YOY)
- GFL updated its 2021 Guidance: Revenue is estimated to be between $5.22B - $5.28B
- Adjusted EBITDA of $353 million, an increase of 35%
- Adjusted Cash Flows from Operating Activities of $246.2 million; cash flows from operating activities of $177.5 million; Adjusted Free Cash Flow of $159.8 million
"Our exceptional start to the year continued into the second quarter, allowing us to once again exceed expectations," said Patrick Dovigi, Founder and Chief Executive Officer of GFL. "This quarter we grew revenue by nearly 40% on a constant currency basis. The revenue growth was driven by the quality of our pricing, with solid waste pricing ahead of plan at 4.1%, meaningful volume improvements and outperformance from the M&A we completed in 2020. We achieved this in the face of continued COVID-19 restrictions in many of our markets in Canada where we generate almost 40% of our revenue. We also expanded Adjusted EBITDA margin by 60 basis points during the quarter and more than doubled our Adjusted Free Cash Flow."
Dovigi added, "We remain focused on our strategy to create long-term value for all of our stakeholders by growing our business organically, completing strategic and accretive acquisitions, reducing our cost of capital and using proceeds from non-core asset sales to reinvest in our business, with the goal of increasing our free cash flow. This is the same growth strategy that we executed on when we were private and for each of the six quarters since becoming a public company. During this quarter alone, we closed nine accretive tuck-in acquisitions, and significantly advanced our planning for the closing of the acquisition of Terrapure Environmental Ltd. We also successfully refinanced our highest coupon debt, resulting in significant cash interest savings. Finally, we received approximately $60 million from the sale of non-core assets, the proceeds of which we intend to redeploy into organic initiatives in our key growth markets."
Dovigi concluded, "We also see significant opportunity with our sustainability initiatives especially with the formation of GFL Renewables, our vehicle to unlock what we believe is significant value through landfill gas to projects at our MSW landfills and acceleration of the conversion of our fleet to CNG."
The solid waste industry appears to be on firm footing as it heads into the second half of the year.