Risk Factors Update Summary

• The total property, plant, and equipment decreased from $1,383.7 million in 2022 to $1,373.4 million in 2023.
• Addition of "SOP" as a substitute for "Sorted office paper" in risk factors.
• Gross profit decreased by $11.0 million, primarily due to lower SID commodity indexed revenues.
• Adjusted Income from Operations for North America increased by $77.3 million, driven by quality of revenue initiatives and pricing levers.
• The company has entered into a settlement agreement to resolve remaining opt-out actions.
• International revenues decreased by $38.1 million, primarily due to divestitures and unfavorable foreign exchange rates.
• The Credit Agreement now allows $50.0 million cash add backs to EBITDA for fiscal quarters ending on or before December 31, 2023.
• The interest paid increased from $27.2 million in 2022 to $27.7 million in 2023.
• Adjusted Loss from Operations for Other Costs increased compared to the prior year primarily driven by higher wages; partially offset by lower annual incentive compensation and timing of stock-based compensation expense.
• Total Adjusted Income from Operations decreased by $28.7 million, mainly due to Other Costs increasing by $28.7 million.
• Inclusion of "or increasing uses of substitutes for SOP" as a risk factor.
• Organic revenues increased by $56.3 million, driven by RWCS pricing actions and higher recycled paper revenues.
• North America revenues increased by $126.7 million, mainly due to RWCS organic revenue increases.
• The company substantially completed its payment obligations under settlements with the SEC and DOJ.
• Mention of "significant" financial resources invested in ERP and system modernization.
• The Credit Agreement's financial covenant leverage ratio improved from 3.28 to 2.85.
• Divestiture losses amounted to $15.6 million, resulting in a decrease of $179.7 million in net divestiture gains.
• Net lease cost rose from $120.8 million in 2022 to $131.5 million in 2023.
• Interest expense, net decreased by $3.6 million, primarily due to the decrease in net debt; partially offset by higher weighted-average interest rates on the variable portion of debt.
• Increase in the number of collective bargaining agreements from 16 to 19.
• The total debt decreased from $1,305.2 million in 2022 to $1,517.4 million in 2023.
• The company reached a settlement in principle with the DTSC regarding claims related to the Rancho Cordova facility.
• The Second Amendment to the Credit Agreement changes the pricing reference from LIBOR to Term SOFR Loans.
• Net cash from operating activities increased from $200.2 million in 2022 to $243.3 million in 2023, driven by improved DSO, operating, and net working capital improvements.
• Net cash used from investing activities decreased by $40.8 million for the year ended December 31, 2023, primarily due to cash proceeds from divestitures.
• The company divested its Domestic Environmental Solutions business to Enviri Corporation for $77 million.
• The total accrued liabilities decreased from $259.5 million in 2022 to $244.1 million in 2023.
• The Credit Agreement's facility fee set at a rate of 0.15% to 0.25% times the actual daily amount.
• Recognition of $223.6 million in NOLs as of December 31, 2022.
• Net cash used from financing activities increased to a use of funds of $220.4 million in 2023 from $111.0 million in the prior year, mainly due to repayments of long-term debt and other obligations.
• The company made accruals for various matters, including Rancho Cordova NOVs, totaling $64.88 million.
• Change from "2022" to "2023" in the legal proceedings section.
• The Credit Facility decreased from $1.2 billion to $1.125 billion, and the term loan decreased from $200 million to $125 million.
• Introduction of greenhouse gas emissions strategies and regulations impacting waste volumes.
• The Senior Notes interest rates changed from 6.85% to 5.92%, 5.38% to 5.38%, and 9.80% to 9.54%.
• Working capital increased from $93.7 million to a negative working capital of $46.2 million at December 31, 2023, compared to a negative working capital of $156.2 million at December 31, 2022.
• The company is defending itself in proceedings related to coordinated inspections at medical waste management facilities.
• The valuation allowance decreased from 36.8% to 30% on deferred tax assets.
• The company amended its Credit Agreement, dated June 15, 2023, among certain subsidiaries, for $64.88 million.
• The Company issued a redemption notice to 2019 Senior Notes holders for redemption of all of the $600.0 million aggregate principal amount of the outstanding 2019 Senior Notes with a redemption date of March 14, 2024.