Dole plc (NYSE: DOLE) ("Dole" or the "Group" or the "Company")
today released its financial results for the three months ended
March 31, 2024.
Highlights for the three months ended March 31, 2024:
- Strong first quarter Group results with growth across all
segments
- Revenue of $2.1 billion, an increase of 6.6%
- Net Income of $65.4 million, an increase of 219.5%
- Adjusted EBITDA1 of $110.1 million, an increase of 9.7%
- Adjusted Net Income of $40.6 million and Adjusted Diluted EPS
of $0.43
- Completed the sale of 65% equity stake in Progressive Produce
for gross proceeds of $120.3 million and gain of $74.0 million
Financial Highlights - Unaudited
Three Months Ended
March 31, 2024
March 31, 2023
(U.S. Dollars in millions, except
per share amounts)
Revenue
2,121
1,989
Income from continuing operations 2
71.5
35.0
Net Income
65.4
20.5
Net Income attributable to Dole plc
70.1
14.2
Diluted EPS from continuing operations
0.80
0.30
Diluted EPS
0.74
0.15
Adjusted EBITDA1
110.1
100.4
Adjusted Net Income1
40.6
32.3
Adjusted Diluted EPS1
0.43
0.34
_______________________
1 Dole plc reports its financial results in accordance with U.S.
Generally Accepted Accounting Principles ("GAAP"). See full GAAP
financial results in the appendix. Adjusted EBIT, Adjusted EBITDA,
Adjusted Net Income, Adjusted Earnings Per Share, Net Debt and Free
Cash Flow from Continuing Operations are non-GAAP financial
measures. Refer to the appendix of this release for an explanation
and reconciliation of these and other non-GAAP financial measures
used in this release to comparable GAAP financial measures.
2 Fresh Vegetables results are reported
separately as discontinued operations, net of income taxes, in our
condensed consolidated statements of operations, its assets and
liabilities are separately presented in our condensed consolidated
balance sheets, and its cash flows are presented separately in our
condensed consolidated statements of cash flows for all periods
presented. Unless otherwise noted, our discussion of our results
included herein, outlook and all supplementary tables, including
non-GAAP financial measures, are presented on a continuing
operations basis.
Commenting on the results, Carl McCann, Executive Chairman,
said:
“We are pleased to deliver a strong result for the first quarter
of 2024, with revenue growth of 6.6% and Adjusted EBITDA increasing
9.7% to $110.1 million.
"We successfully completed the sale of our 65% equity stake in
Progressive Produce in March and used the net proceeds to
strengthen our financial position by reducing our long-term debt by
$100 million. At the end of the quarter, our net debt was $776
million.
"Our strong start to the year positions us well to deliver
another good result in 2024. For the full year, we are maintaining
our target to deliver Adjusted EBITDA in line with 2023 on a
like-for-like basis. Adjusting for the sale of Progressive Produce,
this implies an Adjusted EBITDA target of at least $360
million.”
Group Results - First Quarter
Revenue increased 6.6%, or $132.2 million, due to strong
operational performance across all segments and a $12.8 million
favorable impact of foreign currency translation, partially offset
by a net negative impact from acquisitions and divestitures of
$13.3 million. On a like-for-like basis3, revenue was 6.7%, or
$132.6 million, ahead of prior year.
Net Income increased 219.5% or $45.0 million, due to strong
operational performance across the Group, as well as the gain on
the sale of Progressive Produce of $74.0 million, offset partially
by an impairment of goodwill of $36.7 million.
Adjusted EBITDA increased 9.7%, or $9.7 million, primarily
driven by stronger performance in the Diversified Americas and
Diversified EMEA segments. On a like-for-like basis, Adjusted
EBITDA increased 10.8%, or $10.8 million.
Adjusted Net Income increased $8.3 million, predominantly due to
increases in Adjusted EBITDA as noted above and lower depreciation
and interest expense, partially offset by higher tax expense.
Adjusted Diluted EPS for the three months ended March 31, 2024 was
$0.43 compared to $0.34 in the prior year.
_______________
3 Like-for-like basis refers to the
measure excluding the impact of foreign currency translation
movements and acquisitions and divestitures.
Selected Segmental Financial Information (Unaudited)
Three Months Ended
March 31, 2024
March 31, 2023
(U.S. Dollars in thousands)
Revenue
Adjusted EBITDA
Revenue
Adjusted EBITDA
Fresh Fruit
$
824,229
$
69,435
$
798,910
$
69,211
Diversified Fresh Produce - EMEA
853,598
25,959
798,100
23,406
Diversified Fresh Produce - Americas &
ROW
476,882
14,705
422,751
7,770
Intersegment
(33,335
)
—
(30,594
)
—
Total
$
2,121,374
$
110,099
$
1,989,167
$
100,387
Fresh Fruit
Revenue increased 3.2%, or $25.3 million, primarily due to
higher worldwide volumes of bananas and pineapples sold and an
increase in worldwide pricing of pineapples, offset in part by
lower worldwide pricing for bananas.
Adjusted EBITDA increased 0.3%, or $0.2 million, driven by
higher volumes and lower fruit sourcing costs, partially offset by
lower pricing and decreases in commercial cargo.
Diversified Fresh Produce – EMEA
Revenue increased 7.0%, or $55.5 million, primarily due to
strong performance in Ireland, the U.K. and Northern Europe, a
favorable impact from foreign currency translation of $12.7 million
and an incremental net positive impact of $6.2 million from
acquisitions. On a like-for-like basis, revenue was 4.6%, or $36.7
million, ahead of prior year.
Adjusted EBITDA increased 10.9%, or $2.6 million, primarily
driven by strong performance in Northern Europe and South Africa,
as well as by a positive impact of $0.3 million from foreign
currency translation. On a like-for-like basis, Adjusted EBITDA was
10.0%, or $2.3 million, ahead of prior year.
Diversified Fresh Produce – Americas & ROW
Revenue increased 12.8%, or $54.1 million, primarily driven by
higher volumes of cherries sold, as a result of seasonal timing
differences, improved pricing and volumes in avocados and generally
strong volumes and better pricing across most commodities. These
positive impacts were partially offset by decreases in berries and
lower sales from the Progressive Produce business following its
disposal in mid-March 2024. On a like-for-like basis, revenue was
17.4%, or $73.4 million, ahead of the prior year.
Adjusted EBITDA increased 89.3%, or $6.9 million, primarily
driven by higher cherry revenue, improved performance in avocados
in North America and generally stronger pricing and higher volumes
across most commodities, partially offset by the impact of the
disposal of the Progressive Produce business. On a like-for-like
basis, Adjusted EBITDA was 106.0%, or $8.2 million, ahead of the
prior year.
Capital Expenditures
Cash capital expenditures from continuing operations for the
three months ended March 31, 2024 were $18.2 million, which
included investments in shipping containers, farming investments,
efficiency projects in our warehouses and ongoing investments in IT
and logistics assets. Additions through finance lease from
continuing operations were $7.0 million for the three months ended
March 31, 2024.
Sale of Progressive Produce
On March 13, 2024, the Company completed the sale of its 65.0%
equity interest in the Progressive Produce business to PTF
Holdings. As a result of the sale, Dole received gross proceeds of
$120.3 million in cash and recognized a gain on the sale of $74.0
million. On April 25, 2024, Dole voluntarily prepaid $100.0 million
of its Term Loan facilities with proceeds from the sale of
Progressive Produce.
Free Cash Flow from Continuing Operations and Net
Debt
Free cash flow from continuing operations was an outflow of
$53.2 million for the three months ended March 31, 2024. Free cash
flow was primarily driven by normal seasonal impacts. There were
outflows from receivables based on higher sales and timing of
collections, as well as higher inventories of finished goods,
partially offset by the impact of higher accrued liabilities. Net
Debt as of March 31, 2024 was $775.8 million.
Outlook for Fiscal Year 2024 (forward-looking
statement)
We are very pleased with the strong start we have made to fiscal
year 2024 and believe this puts us in a good position to deliver a
strong overall result for the year.
While still early in the year and forecasting remains complex,
we are maintaining our target to deliver full year Adjusted EBITDA
in line with 2023 on a like-for-like basis. Adjusting for the
disposal of Progressive Produce, this implies an Adjusted EBITDA
target of at least $360 million for the full year.
For fiscal year 2024, we are maintaining our capital expenditure
from continuing operations guidance to be in the range of $110 -
$120 million and are reducing our interest expense guidance to be
in the range of $75 - $80 million.
Dividend
On May 14, 2024, the Board of Directors of Dole plc declared a
cash dividend for the first quarter of 2024 of $0.08 per share,
payable on July 5, 2024 to shareholders of record on June 12, 2024.
A cash dividend of $0.08 per share was paid on April 4, 2024 for
the fourth quarter of 2023.
About Dole plc
A global leader in fresh produce, Dole plc produces, markets,
and distributes an extensive variety of fresh fruits and vegetables
sourced locally and from around the world. Dedicated and passionate
in exceeding our customers’ requirements in over 75 countries, our
goal is to make the world a healthier and a more sustainable
place.
Webcast and Conference Call Information
Dole plc will host a conference call and simultaneous webcast at
08:00 a.m. Eastern Time today to discuss the first quarter 2024
financial results. The webcast can be accessed at
www.doleplc.com/investor-relations
The conference call can be accessed live by dialing (646)
307-1963 in the U.S. or +353 (1) 582 2023 in Ireland and +44 20
3481 4247 for U.K. and other international participants. The
conference ID is 2520960.
Forward-looking information
Certain statements made in this press release that are not
historical are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are based on management’s beliefs,
assumptions, and expectations of our future economic performance,
considering the information currently available to management.
These statements are not statements of historical fact. The words
“believe,” “may,” “could,” “will,” “should,” “would,” “anticipate,”
“estimate,” “expect,” “intend,” “objective,” “seek,” “strive,”
“target” or similar words, or the negative of these words, identify
forward-looking statements. The inclusion of this forward-looking
information should not be regarded as a representation by us or any
other person that the future plans, estimates, or expectations
contemplated by us will be achieved. Such forward-looking
statements are subject to various risks and uncertainties and
assumptions relating to our operations, financial results,
financial condition, business prospects, growth strategy and
liquidity. Accordingly, there are, or will be, important factors
that could cause our actual results to differ materially from those
indicated in these statements. If one or more of these or other
risks or uncertainties materialize, or if our underlying
assumptions prove to be incorrect, our actual results may vary
materially from what we may have expressed or implied by these
forward-looking statements. We caution that you should not place
undue reliance on any of our forward-looking statements. Any
forward-looking statement speaks only as of the date on which such
statement is made, and we do not undertake any obligation to update
any forward-looking statement to reflect events or circumstances
after the date on which such statement is made except as required
by the federal securities laws.
Appendix
Condensed Consolidated Statements of
Operations - Unaudited
Three Months Ended
March 31, 2024
March 31, 2023
(U.S. Dollars and shares in
thousands, except per share amounts)
Revenues, net
$
2,121,374
$
1,989,167
Cost of sales
(1,926,697
)
(1,810,128
)
Gross profit
194,677
179,039
Selling, marketing, general and
administrative expenses
(118,950
)
(120,879
)
Gain on disposal of business
73,950
—
Gain on asset sales
417
3,973
Impairment of goodwill
(36,684
)
—
Impairment of property, plant and
equipment
(1,277
)
—
Operating income
112,133
62,133
Other income, net
7,622
1,775
Interest income
3,079
2,309
Interest expense
(17,948
)
(21,712
)
Income from continuing operations before
income taxes and equity earnings
104,886
44,505
Income tax expense
(34,401
)
(10,994
)
Equity method earnings
1,002
1,478
Income from continuing operations
71,487
34,989
Loss from discontinued operations, net of
income taxes
(6,051
)
(14,506
)
Net income
65,436
20,483
Net loss (income) attributable to
noncontrolling interests
4,707
(6,324
)
Net income attributable to Dole plc
$
70,143
$
14,159
Income (loss) per share - basic:
Continuing operations
$
0.80
$
0.30
Discontinued operations
(0.06
)
(0.15
)
Net income per share attributable to Dole
plc - basic
$
0.74
$
0.15
Income (loss) per share - diluted:
Continuing operations
$
0.80
$
0.30
Discontinued operations
(0.06
)
(0.15
)
Net income per share attributable to Dole
plc - diluted
$
0.74
$
0.15
Weighted-average shares:
Basic
94,929
94,899
Diluted
95,229
95,024
Condensed Consolidated Statements of
Cash Flows - Unaudited
Three Months Ended
March 31, 2024
March 31, 2023
Operating Activities
(U.S. Dollars in thousands)
Net income
$
65,436
$
20,483
Loss from discontinued operations, net of
taxes
6,051
14,506
Income from continuing operations
71,487
34,989
Adjustments to reconcile income from
continuing operations to net cash (used in) provided by operating
activities - continuing operations:
Depreciation and amortization
24,121
26,919
Impairment of goodwill
36,684
—
Impairment of fixed assets
1,277
—
Net gain on sale of assets and asset
write-offs
(417
)
(3,973
)
Net gain on sale of business
(73,950
)
—
Stock-based compensation expense
1,832
1,330
Equity method earnings
(1,002
)
(1,478
)
Amortization of debt discounts and debt
issuance costs
1,591
1,589
Deferred tax (benefit) expense
(11,062
)
1,481
Pension and other postretirement benefit
plan expense
992
1,970
Other
(4,658
)
(3,089
)
Changes in operating assets and
liabilities:
Receivables, net of allowances
(123,162
)
(6,442
)
Inventories
(43,605
)
(9,836
)
Prepaids, other current assets and other
assets
(1,443
)
(174
)
Accounts payable, accrued liabilities and
other liabilities
86,359
(30,639
)
Net cash (used in) provided by operating
activities - continuing operations
(34,956
)
12,647
Investing activities
Sales of assets
1,023
6,529
Capital expenditures
(18,238
)
(17,609
)
Proceeds from sale of business, net of
transaction costs
115,845
—
Insurance proceeds
527
—
Purchases of investments
(187
)
(790
)
(Purchases) sales of unconsolidated
affiliates
(374
)
1,507
Other
(2,097
)
(1,388
)
Net cash provided by (used in) investing
activities - continuing operations
96,499
(11,751
)
Financing activities
Proceeds from borrowings and
overdrafts
490,871
392,054
Repayments on borrowings and
overdrafts
(573,994
)
(347,448
)
Dividends paid to shareholders
(7,594
)
(7,592
)
Dividends paid to noncontrolling
interests
(7,173
)
(1,918
)
Other noncontrolling interest activity,
net
—
(476
)
Payment of contingent consideration
(796
)
(1,151
)
Net cash (used in) provided by financing
activities - continuing operations
(98,686
)
33,469
Effect of foreign exchange rate changes on
cash
(5,630
)
2,697
Net cash provided by operating activities
- discontinued operations
5,753
2,580
Net cash used in investing activities -
discontinued operations
(382
)
(2,282
)
Cash provided by discontinued operations,
net
5,371
298
(Decrease) increase in cash and cash
equivalents
(37,402
)
37,360
Cash and cash equivalents at beginning of
period, including discontinued operations
277,005
228,840
Cash and cash equivalents at end of
period, including discontinued operations
$
239,603
$
266,200
Supplemental cash flow
information:
Income tax payments, net of refunds
$
(10,498
)
$
(8,156
)
Interest payments on borrowings
$
(17,394
)
$
(19,417
)
Condensed Consolidated Balance Sheets -
Unaudited
March 31, 2024
December 31, 2023
ASSETS
(U.S. Dollars and shares in
thousands)
Cash and cash equivalents
$
239,397
$
275,580
Short-term investments
6,099
5,899
Trade receivables, net of allowances for
credit losses of $19,354 and $18,360, respectively
621,282
538,177
Grower advance receivables, net of
allowances for credit losses of $17,627 and $19,839,
respectively
105,146
109,958
Other receivables, net of allowances for
credit losses of $13,410 and $13,227, respectively
120,986
117,069
Inventories, net of allowances of $4,522
and $4,792, respectively
409,482
378,592
Prepaid expenses
59,773
61,724
Other current assets
17,149
17,401
Fresh Vegetables current assets held for
sale
405,733
414,457
Other assets held for sale
1,827
1,832
Total current assets
1,986,874
1,920,689
Long-term investments
15,696
15,970
Investments in unconsolidated
affiliates
130,992
131,704
Actively marketed property
13,781
13,781
Property, plant and equipment, net of
accumulated depreciation of $447,605 and $444,775, respectively
1,086,843
1,102,234
Operating lease right-of-use assets
326,817
340,458
Goodwill
435,962
513,312
DOLE brand
306,280
306,280
Other intangible assets, net of
accumulated amortization of $117,551 and $134,420, respectively
30,643
41,232
Other assets
104,667
109,048
Deferred tax assets, net
69,004
66,485
Total assets
$
4,507,559
$
4,561,193
LIABILITIES AND EQUITY
Accounts payable
$
599,445
$
670,904
Income taxes payable
63,396
22,917
Accrued liabilities
417,767
357,427
Bank overdrafts
12,054
11,488
Current portion of long-term debt, net
215,281
222,940
Current maturities of operating leases
62,910
63,653
Payroll and other tax
26,032
27,791
Contingent consideration
1,152
1,788
Pension and other postretirement
benefits
16,038
16,570
Fresh Vegetables current liabilities held
for sale
305,753
291,342
Dividends payable and other current
liabilities
24,580
29,892
Total current liabilities
1,744,408
1,716,712
Long-term debt, net
774,361
845,013
Operating leases, less current
maturities
269,735
287,991
Deferred tax liabilities, net
83,704
92,653
Income taxes payable, less current
portion
16,664
16,664
Contingent consideration, less current
portion
7,356
7,327
Pension and other postretirement benefits,
less current portion
113,418
121,689
Other long-term liabilities
51,990
52,295
Total liabilities
3,061,636
3,140,344
Redeemable noncontrolling interests
33,766
34,185
Stockholders’ equity:
Common stock — $0.01 par value; 300,000
shares authorized and 94,929 shares outstanding as of March 31,
2024 and December 31, 2023
949
949
Additional paid-in capital
799,515
796,800
Retained earnings
624,983
562,562
Accumulated other comprehensive loss
(122,124
)
(110,791
)
Total equity attributable to Dole plc
1,303,323
1,249,520
Equity attributable to noncontrolling
interests
108,834
137,144
Total equity
1,412,157
1,386,664
Total liabilities, redeemable
noncontrolling interests and equity
$
4,507,559
$
4,561,193
Reconciliation from Net Income to Adjusted EBITDA -
Unaudited
The following information is provided to give quantitative
information related to items impacting comparability. Refer to the
'Non-GAAP Financial Measures' section of this document for
additional detail on each item.
Three Months Ended
March 31, 2024
March 31, 2023
(U.S. Dollars in thousands)
Net income (Reported GAAP)
$
65,436
$
20,483
Loss from discontinued operations, net of
income taxes
6,051
14,506
Income from continuing operations
(Reported GAAP)
71,487
34,989
Income tax expense
34,401
10,994
Interest expense
17,948
21,712
Mark to market (gains) losses
(2,870
)
822
Loss (gain) on asset sales
31
(4,167
)
Gain on disposal of business
(73,950
)
—
Cyber-related incident
—
4,750
Impairment of goodwill
36,684
—
Other items 4
(1,800
)
673
Adjustments from equity method
investments
1,514
1,323
Adjusted EBIT (Non-GAAP)
83,445
71,096
Depreciation
21,848
24,303
Amortization of intangible assets
2,273
2,616
Depreciation and amortization adjustments
from equity method investments
2,533
2,372
Adjusted EBITDA (Non-GAAP)
$
110,099
$
100,387
____________________
4 For the three months ended March 31, 2024, other items is
primarily comprised of $1.8 million of insurance proceeds, net of
asset writedowns. For the three months ended March 31, 2023, other
items is primarily comprised of $0.7 million of asset writedowns,
net of insurance proceeds.
Reconciliation from Net Income attributable to Dole plc to
Adjusted Net Income - Unaudited
The following information is provided to give quantitative
information related to items impacting comparability. Refer to the
'Non-GAAP Financial Measures' section of this document for
additional detail on each item. Refer to the Appendix for
supplementary detail.
Three Months Ended
March 31, 2024
March 31, 2023
(U.S. Dollars and shares in
thousands, except per share amounts)
Net income attributable to Dole plc
(Reported GAAP)
$
70,143
$
14,159
Loss from discontinued operations, net of
income taxes
6,051
14,506
Income from continuing operations
attributable to Dole plc
76,194
28,665
Adjustments:
Amortization of intangible assets
2,273
2,616
Mark to market (gains) losses
(2,870
)
822
Loss (gain) on asset sales
31
(4,167
)
Gain on disposal of business
(73,950
)
—
Cyber-related incident
—
4,750
Impairment of goodwill
36,684
—
Other items 5
(1,800
)
673
Adjustments from equity method
investments
531
119
Income tax on items above and discrete tax
items
14,319
(309
)
NCI impact on items above
(10,861
)
(893
)
Adjusted Net Income for Adjusted EPS
calculation (Non-GAAP)
$
40,551
$
32,276
Adjusted earnings per share – basic
(Non-GAAP)
$
0.43
$
0.34
Adjusted earnings per share – diluted
(Non-GAAP)
$
0.43
$
0.34
Weighted average shares outstanding –
basic
94,929
94,899
Weighted average shares outstanding –
diluted
95,229
95,024
______________
5 For the three months ended March 31,
2024, other items is primarily comprised of $1.8 million of
insurance proceeds, net of asset writedowns. For the three months
ended March 31, 2023, other items is primarily comprised of $0.7
million of asset writedowns, net of insurance proceeds.
Supplemental Reconciliation from Net Income attributable to
Dole plc to Adjusted Net Income - Unaudited
The following information is provided to give quantitative
information related to items impacting comparability. Refer to the
'Non-GAAP Financial Measures' section of this document for
additional detail on each item.
Three Months Ended March 31,
2024
(U.S. Dollars in thousands)
Revenues, net
Cost of sales
Gross profit
Gross Margin %
Selling, marketing, general
and administrative expenses
Other operating
charges6
Operating Income
Reported (GAAP)
$
2,121,374
(1,926,697
)
194,677
9.2
%
(118,950
)
36,406
$
112,133
Loss from discontinued operations, net of
income taxes
—
—
—
—
—
—
Amortization of intangible assets
—
—
—
2,273
—
2,273
Mark to market (gains) losses
—
(120
)
(120
)
—
—
(120
)
Loss (gain) on asset sales
—
—
—
—
31
31
Gain on disposal of business
—
—
—
—
(73,950
)
(73,950
)
Impairment of goodwill
—
—
—
—
36,684
36,684
Other items
—
(1,800
)
(1,800
)
—
—
(1,800
)
Adjustments from equity method
investments
—
—
—
—
—
—
Income tax on items above and discrete tax
items
—
—
—
—
—
—
NCI impact on items above
—
—
—
—
—
—
Adjusted (Non-GAAP)
$
2,121,374
(1,928,617
)
192,757
9.1
%
(116,677
)
(829
)
$
75,251
____________________
6 Other operating charges for the three
months ended March 31, 2024 is primarily comprised of a gain on
disposal of business of $74.0 million, offset by a goodwill
impairment charge of $36.7 million and a fixed asset impairment
charge of $1.3 million, as reported on the Dole plc GAAP Condensed
Consolidated Statements of Operations.
Three Months Ended March 31,
2023
(U.S. Dollars in thousands)
Revenues, net
Cost of sales
Gross profit
Gross Margin %
Selling, marketing, general
and administrative expenses
Other operating
charges7
Operating Income
Reported (GAAP)
$
1,989,167
(1,810,128
)
179,039
9.0
%
(120,879
)
3,973
$
62,133
Loss from discontinued operations, net of
income taxes
—
—
—
—
—
—
Amortization of intangible assets
—
—
—
2,616
—
2,616
Mark to market (gains) losses
—
(1,390
)
(1,390
)
—
—
(1,390
)
Loss (gain) on asset sales
—
—
—
—
(4,167
)
(4,167
)
Cyber-related incident
—
—
—
4,750
—
4,750
Other items
—
673
673
—
—
673
Adjustments from equity method
investments
—
—
—
—
—
—
Income tax on items above and discrete tax
items
—
—
—
—
—
—
NCI impact on items above
—
—
—
—
—
—
Adjusted (Non-GAAP)
$
1,989,167
(1,810,845
)
178,322
9.0
%
(113,513
)
(194
)
$
64,615
_____________________
7 Other operating charges for the three
months ended March 31, 2023 is comprised of gains on asset sales of
$4.0 million, as reported on the Dole plc GAAP Condensed
Consolidated Statements of Operations.
Three Months Ended March 31,
2024
(U.S. Dollars in thousands)
Other income, net
Interest income
Interest expense
Income tax expense
Equity method earnings
Income from continuing
operations
Loss from discontinued
operations, net of income taxes
Reported (GAAP)
$
7,622
3,079
(17,948
)
(34,401
)
1,002
71,487
$
(6,051
)
Loss from discontinued operations, net of
income taxes
—
—
—
—
—
—
6,051
Amortization of intangible assets
—
—
—
—
—
2,273
—
Mark to market (gains) losses
(2,750
)
—
—
—
—
(2,870
)
—
Loss (gain) on asset sales
—
—
—
—
—
31
—
Gain on disposal of business
—
—
—
—
—
(73,950
)
—
Impairment of goodwill
—
—
—
—
—
36,684
—
Other items
—
—
—
—
—
(1,800
)
—
Adjustments from equity method
investments
—
—
—
—
531
531
—
Income tax on items above and discrete tax
items
—
—
—
14,419
(100
)
14,319
—
NCI impact on items above
—
—
—
—
—
—
—
Adjusted (Non-GAAP)
$
4,872
3,079
(17,948
)
(19,982
)
1,433
46,705
$
—
Three Months Ended March 31,
2023
(U.S. Dollars in thousands)
Other income, net
Interest income
Interest expense
Income tax expense
Equity method earnings
Income from continuing
operations
Loss from discontinued
operations, net of income taxes
Reported (GAAP)
$
1,775
2,309
(21,712
)
(10,994
)
1,478
34,989
$
(14,506
)
Loss from discontinued operations, net of
income taxes
—
—
—
—
—
—
14,506
Amortization of intangible assets
—
—
—
—
—
2,616
—
Mark to market (gains) losses
2,212
—
—
—
—
822
—
Loss (gain) on asset sales
—
—
—
—
—
(4,167
)
—
Cyber-related incident
—
—
—
—
—
4,750
—
Other items
—
—
—
—
—
673
—
Adjustments from equity method
investments
—
—
—
—
119
119
—
Income tax on items above and discrete tax
items
—
—
—
(228
)
(81
)
(309
)
—
NCI impact on items above
—
—
—
—
—
—
—
Adjusted (Non-GAAP)
$
3,987
2,309
(21,712
)
(11,222
)
1,516
39,493
$
—
Three Months Ended March 31,
2024
U.S. Dollars and shares in
thousands, except per share amounts
Net income
Net loss (income) attributable
to noncontrolling interests
Net income attributable to
Dole plc
Diluted net income per
share
Reported (GAAP)
$
65,436
4,707
$
70,143
$
0.74
Loss from discontinued operations, net of
income taxes
6,051
—
6,051
Amortization of intangible assets
2,273
—
2,273
Mark to market (gains) losses
(2,870
)
—
(2,870
)
Loss (gain) on asset sales
31
—
31
Gain on disposal of business
(73,950
)
—
(73,950
)
Impairment of goodwill
36,684
—
36,684
Other items
(1,800
)
—
(1,800
)
Adjustments from equity method
investments
531
—
531
Income tax on items above and discrete tax
items
14,319
—
14,319
NCI impact on items above
—
(10,861
)
(10,861
)
Adjusted (Non-GAAP)
$
46,705
(6,154
)
$
40,551
$
0.43
Weighted average shares outstanding –
diluted
95,229
Three Months Ended March 31,
2023
U.S. Dollars and shares in
thousands, except per share amounts
Net income
Net income attributable to
noncontrolling interests
Net income attributable to
Dole plc
Diluted net income per
share
Reported (GAAP)
$
20,483
(6,324
)
$
14,159
$
0.15
Loss from discontinued operations, net of
income taxes
14,506
—
14,506
Amortization of intangible assets
2,616
—
2,616
Mark to market (gains) losses
822
—
822
Loss (gain) on asset sales
(4,167
)
—
(4,167
)
Cyber-related incident
4,750
—
4,750
Other items
673
—
673
Adjustments from equity method
investments
119
—
119
Income tax on items above and discrete tax
items
(309
)
—
(309
)
NCI impact on items above
—
(893
)
(893
)
Adjusted (Non-GAAP)
$
39,493
(7,217
)
$
32,276
$
0.34
Weighted average shares outstanding –
diluted
95,024
Supplemental Reconciliation of Prior Year Segment Results to
Current Year Segment Results – Unaudited
Revenue for the Three Months
Ended
March 31, 2023
Impact of Foreign Currency
Translation
Impact of Acquisitions and
Divestitures
Like-for-like Increase
(Decrease)
March 31, 2024
(U.S. Dollars in thousands)
Fresh Fruit
$
798,910
$
—
$
—
$
25,319
$
824,229
Diversified Fresh Produce - EMEA
798,100
12,669
6,172
36,657
853,598
Diversified Fresh Produce - Americas &
ROW
422,751
173
(19,441
)
73,399
476,882
Intersegment
(30,594
)
—
—
(2,741
)
(33,335
)
Total
$
1,989,167
$
12,842
$
(13,269
)
$
132,634
$
2,121,374
Adjusted EBITDA for the Three
Months Ended
March 31, 2023
Impact of Foreign Currency
Translation
Impact of Acquisitions and
Divestitures
Like-for-like Increase
(Decrease)
March 31, 2024
(U.S. Dollars in thousands)
Fresh Fruit
$
69,211
$
(46
)
$
—
$
270
$
69,435
Diversified Fresh Produce - EMEA
23,406
349
(132
)
2,336
25,959
Diversified Fresh Produce - Americas &
ROW
7,770
(9
)
(1,289
)
8,233
14,705
Total
$
100,387
$
294
$
(1,421
)
$
10,839
$
110,099
Net Debt Reconciliation
Net Debt is the primary measure used by management to analyze
the Company’s capital structure. Net Debt is a non-GAAP financial
measure, calculated as cash and cash equivalents, less current and
long-term debt. It also excludes debt discounts and debt issuance
costs. The calculation of Net Debt as of March 31, 2024 is
presented below. Net Debt as of March 31, 2024 was $775.8
million.
March 31, 2024
December 31, 2023
(U.S. Dollars in thousands)
Cash and cash equivalents (Reported
GAAP)
$
239,397
$
275,580
Debt (Reported GAAP):
Long-term debt, net
(774,361
)
(845,013
)
Current maturities
(215,281
)
(222,940
)
Bank overdrafts
(12,054
)
(11,488
)
Total debt, net
(1,001,696
)
(1,079,441
)
Less: Debt discounts and debt issuance
costs (Reported GAAP)
(13,518
)
(14,395
)
Total gross debt
(1,015,214
)
(1,093,836
)
Net Debt (Non-GAAP)
$
(775,817
)
$
(818,256
)
Free Cash Flow from Continuing Operations
Reconciliation
Three Months Ended
March 31, 2024
March 31, 2023
(U.S. Dollars in thousands)
Net cash (used in) provided by operating
activities - continuing operations (Reported GAAP)
$
(34,956
)
$
12,647
Less: Capital expenditures (Reported
GAAP)8
(18,238
)
(17,609
)
Free cash flow from continuing
operations (Non-GAAP)
$
(53,194
)
$
(4,962
)
____________________
8 Capital expenditures do not include
amounts attributable to discontinued operations.
Non-GAAP Financial Measures
Dole plc’s results are determined in accordance with U.S.
GAAP.
In addition to its results under U.S. GAAP, in this Press
Release, we also present Dole plc’s Adjusted EBIT, Adjusted EBITDA,
Adjusted Net Income, Adjusted EPS, Free Cash Flow from Continuing
Operations and Net Debt, which are supplemental measures of
financial performance that are not required by, or presented in
accordance with, U.S. GAAP (collectively, the "non-GAAP financial
measures"). We present these non-GAAP financial measures, because
we believe they assist investors and analysts in comparing our
operating performance across reporting periods on a consistent
basis by excluding items that we do not believe are indicative of
our core operating performance. These non-GAAP financial measures
have limitations as analytical tools, and you should not consider
them in isolation or as a substitute for analysis of our operating
results, cash flows or any other measure prescribed by U.S. GAAP.
Our presentation of non-GAAP financial measures should not be
construed as an inference that our future results will be
unaffected by any of the adjusted items or that any projections and
estimates will be realized in their entirety or at all. In
addition, adjustment items that are excluded from non-GAAP results
can have a material impact on equivalent GAAP earnings, financial
measures and cash flows.
Adjusted EBIT is calculated from GAAP net income by: (1)
subtracting the income or adding the loss from discontinued
operations, net of income taxes; (2) adding the income tax expense
or subtracting the income tax benefit; (3) adding interest expense;
(4) adding mark to market losses or subtracting mark to market
gains related to unrealized impacts from certain derivative
instruments and foreign currency denominated borrowings, realized
impacts on noncash settled foreign currency denominated borrowings,
net foreign currency impacts on liquidated entities and fair value
movements on contingent consideration; (5) other items which are
separately stated based on materiality, which during the three
months ended March 31, 2024 and March 31, 2023, included adding or
subtracting asset write-downs from extraordinary events, net of
insurance proceeds, subtracting the gain or adding the loss on the
disposal of business interests, subtracting the gain or adding the
loss on asset sales for assets held for sale and actively marketed
property, adding impairment charges on goodwill and adding costs
incurred for the cyber-related incident; and (6) the Company’s
share of these items from equity method investments.
Adjusted EBITDA is calculated from GAAP net income by: (1)
subtracting the income or adding the loss from discontinued
operations, net of income taxes; (2) adding the income tax expense
or subtracting the income tax benefit; (3) adding interest expense;
(4) adding depreciation charges; (5) adding amortization charges on
intangible assets; (6) adding mark to market losses or subtracting
mark to market gains related to unrealized impacts from certain
derivative instruments and foreign currency denominated borrowings,
realized impacts on noncash settled foreign currency denominated
borrowings, net foreign currency impacts on liquidated entities and
fair value movements on contingent consideration; (7) other items
which are separately stated based on materiality, which during the
three months ended March 31, 2024 and March 31, 2023, included
adding or subtracting asset write-downs from extraordinary events,
net of insurance proceeds, subtracting the gain or adding the loss
on the disposal of business interests, subtracting the gain or
adding the loss on asset sales for assets held for sale and
actively marketed property, adding impairment charges on goodwill
and adding costs incurred for the cyber-related incident; and (8)
the Company’s share of these items from equity method
investments.
Adjusted Net Income is calculated from GAAP net income
attributable to Dole plc by: (1) subtracting the income or adding
the loss from discontinued operations, net of income taxes; (2)
adding amortization charges on intangible assets; (3) adding mark
to market losses or subtracting mark to market gains related to
unrealized impacts from certain derivative instruments and foreign
currency denominated borrowings, realized impacts on noncash
settled foreign currency denominated borrowings, net foreign
currency impacts on liquidated entities and fair value movements on
contingent consideration; (4) other items which are separately
stated based on materiality, which during the three months ended
March 31, 2024 and March 31, 2023, included adding or subtracting
asset write-downs from extraordinary events, net of insurance
proceeds, subtracting the gain or adding the loss on the disposal
of business interests, subtracting the gain or adding the loss on
asset sales for assets held for sale and actively marketed
property, adding impairment charges on goodwill and adding costs
incurred for the cyber-related incident; (5) the Company’s share of
these items from equity method investments; (6) excluding the tax
effect of these items and discrete tax adjustments; and (7)
excluding the effect of these items attributable to non-controlling
interests.
Adjusted Earnings per Share is calculated from Adjusted Net
Income divided by diluted weighted average number of shares in the
applicable period.
Net Debt is a non-GAAP financial measure, calculated as GAAP
cash and cash equivalents, less GAAP current and long-term debt. It
also excludes GAAP unamortized debt discounts and debt issuance
costs.
Free cash flow from continuing operations is calculated from
GAAP net cash used in or provided by operating activities for
continuing operations less GAAP capital expenditures.
Like-for-like basis refers to the U.S. GAAP measure or non-GAAP
financial measure excluding the impact of foreign currency
translation movements and acquisitions and divestitures.
Dole is not able to provide a reconciliation for projected FY'24
results without taking unreasonable efforts.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240515539212/en/
Investor Contact: James O'Regan, Head of Investor
Relations, Dole plc joregan@totalproduce.com +353 1 887 2794
Media Contact: Brian Bell, Ogilvy brian.bell@ogilvy.com
+353 87 2436 130
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