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  "documentTitle": "GFL Environmental Inc. (GFL)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2020-08-18 00:00:00",
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  "notes": "The slide uses a table to contrast company-reported metrics with activist-adjusted metrics to prove misstatement.",
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      "kind": "callout",
      "text": "It's Hard To Rely On GFL's Free Cash Flow Forecasts When Tangible Evidence That Both Operating Cash Flow And Capex Are Misstated",
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      "text": "We have shown that both GFL's operating cash flow and capital expenditures do not reconcile. As a result, we believe its free cash flow is also potentially misstated. We believe adjusted H1 2020 free cash flow burn was ~60% worse than reported by GFL.",
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      "text": "Free Cash Flow: -59.5%",
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      "text": "We have shown that both GFL's operating cash flow and capital expenditures do not reconcile. As a result, we believe its free cash flow is also potentially misstated. We believe adjusted H1 2020 free cash flow burn was ~60% worse than reported by GFL.",
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      "text": "Since Jan 1, 2019 GFL has spent over C$1.8bn on acquisitions and OCF has barely increased while FCF has worsened. Granted there is a COVID-19 impact in H1 2020, but with so much money spent on acquisitions, Spruce Point is surprised there is no FCF growth.",
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      "text": "When you think about how cash flow and leverage should play out over the balance of the year, we should incur an additional $140 million to $150 million of CAPEX and approximately $140 million, $145 million of cash interest costs in the second half of the year. If you layer on the conservative assumption of working capital, ending the year as cash flow neutral, you get to a free cash flow number of somewhere between $275 million and $300 million for the back half of the year, depending on your views of where we end up in terms of EBITDA.",
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      "text": "When you think about how cash flow and leverage should play out over the balance of the year, we should incur an additional $140 million to $150 million of CAPEX and approximately $140 million, $145 million of cash interest costs in the second half of the year. If you layer on the conservative assumption of working capital, ending the year as cash flow neutral, you get to a free cash flow number of somewhere between $275 million and $300 million for the back half of the year, depending on your views of where we end up in terms of EBITDA. — GFL Management",
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      "text": "Source: GFL and Spruce Point Analysis. Note: Spruce Point Adjusted capex uses the “additions” from the PP&E footnotes",
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      "text": "Comparison table of GFL vs Spruce Point Adjusted Free Cash Flow for 6M 2019 and 6M 2020.",
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      "text": "GFL's \"Free Cash Flow\" vs. Spruce Point Reality",
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