Surf Air Mobility

Dole Reports First Quarter 2024 Financial Results

15 May 2024

DUBLIN / May 15, 2024 / Business Wire / 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.

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