Pond Technologies

Dole Reports Fourth Quarter and Full Year 2023 Financial Results

29 February 2024

DUBLIN / Feb 29, 2024 / Business Wire / Dole plc (NYSE: DOLE) ("Dole" or the "Group" or the "Company") today released its financial results for the three months and year ended December 31, 2023.

Highlights for the year ended December 31, 2023:

  • Very strong full year results achieved following a year of good momentum for the Group
  • Revenue of $8.2 billion, an increase of 2.8%
  • Net income of $155.7 million, an increase of 39.3%, and Diluted EPS of $1.30
  • Adjusted EBITDA1 of $385.1 million, an increase of $24.7 million, or 6.9%
  • Adjusted Net Income of $118.1 million and Adjusted Diluted EPS of $1.24
  • Free Cash Flow from Continuing Operations of $220.6 million
  • Net Debt of $818.3 million, a reduction of $204.2 million

Financial Highlights - Unaudited

 

 

Three Months Ended

 

Year Ended

 

 

December 31,
2023

 

December 31,
2022

 

December 31,
2023

 

December 31,
2022

 

 

(U.S. Dollars in millions, except per share amounts)

Revenue

 

2,072

 

2,043

 

8,245

 

8,024

Income from Continuing Operations2

 

23.1

 

21.7

 

177.5

 

168.2

Net Income

 

28.9

 

13.4

 

155.7

 

111.8

Net Income attributable to Dole plc

 

22.3

 

6.8

 

124.1

 

86.5

Diluted EPS from Continuing Operations

 

0.17

 

0.16

 

1.53

 

1.51

Diluted EPS

 

0.23

 

0.07

 

1.30

 

0.91

Adjusted EBITDA1

 

76.9

 

77.5

 

385.1

 

360.4

Adjusted Net Income1

 

14.8

 

17.3

 

118.1

 

136.4

Adjusted Diluted EPS1

 

0.16

 

0.18

 

1.24

 

1.44

         

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 consolidated statements of operations, its assets and liabilities are separately presented in our consolidated balance sheets, and its cash flows are presented separately in our 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:

“2023 was a year of positive development for the Group. We are very pleased with our strong full year results, delivering Adjusted EBITDA growth of 6.9% and reducing our net debt by over $200 million.

Earlier this week, we announced an agreement to sell our 65% equity stake in Progressive Produce to Arable Capital Partners. The proceeds from this sale will be used to further strengthen our financial position and increase our focus on our core activities.

We believe our business is well positioned to deliver another good result in 2024, and at this early stage of the year, our target is to deliver full year Adjusted EBITDA in line with 2023 on a like-for-like basis.

Our results in 2023 would not be possible without the efforts of our people, and we extend thanks to everyone for their continued dedication and contributions during this past year.”

Group Results - Fourth Quarter

Revenue increased 1.5%, or $29.7 million, primarily due to a positive impact from foreign currency translation of $33.4 million, a net positive impact from acquisitions and divestitures of $12.2 million and an increase in revenue in the Diversified EMEA segment on a like-for-like basis3. Excluding the impact of foreign currency translation and acquisitions and divestitures, on a like-for-like basis, Group revenue decreased 0.8%, or $15.9 million, driven partially by lower revenue in the Diversified Americas segment.

Adjusted EBITDA decreased 0.8%, or $0.7 million, primarily driven by a decrease for the Fresh Fruit segment against a very strong prior year comparative, partially offset by a strong performance in the Diversified EMEA segment. On a like-for-like basis, Adjusted EBITDA decreased 2.0%, or $1.5 million.

Adjusted Net Income decreased $2.4 million, predominantly due to the decreases in Adjusted EBITDA and higher interest expense. Adjusted Diluted EPS was $0.16 compared to $0.18 in the prior year.

Group Results - Full Year

Revenue increased 2.8%, or $220.9 million, and, on a like-for-like basis, revenue increased 2.0%, or $158.3 million. The increase was driven by increases in the Diversified EMEA and Fresh Fruit segments primarily as a result of inflation-justified price increases, a positive impact from foreign currency translation of $26.7 million and a net positive impact from acquisitions and divestitures of $35.8 million. These positive impacts were partially offset by lower revenue in the Diversified Americas segment.

Adjusted EBITDA increased 6.9%, or $24.7 million, primarily due to stronger performance in the Diversified EMEA and Fresh Fruit segments, partially offset by a lower result in the Diversified Americas segment due to seasonal timing differences in the Chilean cherry season. On a like-for-like basis, Adjusted EBITDA increased 5.9%, or $21.2 million.

Adjusted Net Income decreased by $18.3 million, predominantly due to higher interest expense and tax expense, partially offset by the increases in Adjusted EBITDA as noted above and lower depreciation expense. Adjusted Diluted EPS for the year ended December 31, 2023 was $1.24 compared to $1.44 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

 

 

December 31, 2023

 

December 31, 2022

 

 

(U.S. Dollars in thousands)

 

 

Revenue

 

Adjusted EBITDA

 

Revenue

 

Adjusted EBITDA

Fresh Fruit

 

$

748,703

 

 

$

28,792

 

$

740,167

 

 

$

39,460

Diversified Fresh Produce - EMEA

 

 

862,865

 

 

 

32,638

 

 

751,594

 

 

 

22,656

Diversified Fresh Produce - Americas & ROW

 

 

489,761

 

 

 

15,427

 

 

573,936

 

 

 

15,396

Intersegment

 

 

(29,074

)

 

 

 

 

(23,129

)

 

 

Total

 

$

2,072,255

 

 

$

76,857

 

$

2,042,568

 

 

$

77,512

         

 

 

Year Ended

 

 

December 31, 2023

 

December 31, 2022

 

 

(U.S. Dollars in thousands)

 

 

Revenue

 

Adjusted EBITDA

 

Revenue

 

Adjusted EBITDA

Fresh Fruit

 

$

3,135,866

 

 

$

208,930

 

$

3,047,149

 

 

$

205,547

Diversified Fresh Produce - EMEA

 

 

3,432,945

 

 

 

133,570

 

 

3,152,561

 

 

 

111,053

Diversified Fresh Produce - Americas & ROW

 

 

1,800,168

 

 

 

42,618

 

 

1,965,667

 

 

 

43,796

Intersegment

 

 

(123,711

)

 

 

 

 

(140,974

)

 

 

Total

 

$

8,245,268

 

 

$

385,118

 

$

8,024,403

 

 

$

360,396

Fourth Quarter Commentary

Fresh Fruit

Revenue increased 1.2%, or $8.5 million, compared to the prior year quarter. The increase was primarily due to higher worldwide volumes of bananas sold, an increase in banana pricing in Europe and an increase in worldwide pricing of pineapples. These increases were offset in part by lower banana prices in North America and less worldwide volumes of pineapples sold.

Adjusted EBITDA decreased by 27.0%, or $10.7 million. The decrease was primarily due to higher fruit sourcing costs in bananas, as well as weaker performance in our commercial cargo business and other diversified products.

Diversified Fresh Produce – EMEA

Revenue increased 14.8%, or $111.3 million, primarily driven by inflation-justified price increases across the segment, a positive impact from foreign currency translation of $33.4 million due to the strengthening of the Euro and British pound sterling against the U.S. Dollar and a net positive impact from acquisitions and divestitures of $12.2 million. On a like-for-like basis, revenue increased 8.7%, or $65.7 million.

Adjusted EBITDA increased 44.1%, or $10.0 million. The increase in Adjusted EBITDA was as a result of strong performance across the segment, particularly within the Dutch, Swedish and South African businesses, as well as a net favorable impact from acquisition and divestitures of $0.4 million and a positive impact from foreign currency translation of $1.1 million. On a like-for-like basis, Adjusted EBITDA increased 37.4%, or $8.5 million.

Diversified Fresh Produce – Americas & ROW

Revenue decreased 14.7%, or $84.2 million, primarily due to lower volumes of cherries due to seasonal timing differences, as well as continued challenging performance for the berry category in North America, partially offset by inflation-justified price increases and continued strong performance for potatoes and onions in North America.

Adjusted EBITDA increased marginally by 0.2%, driven primarily by significant recoveries in profitability for apples and, to a lesser extent, kiwis, after a challenging 2022, mostly offset by the impact of seasonal timing differences in the Chilean cherry season, as well as by a challenging performance for the berry category in North America.

Full Year Commentary

Fresh Fruit

Revenue increased 2.9%, or $88.7 million, predominantly driven by higher worldwide pricing of bananas and pineapples and an increase in worldwide volumes of bananas sold, partially offset by lower worldwide volumes of pineapples sold.

Adjusted EBITDA increased 1.6%, or $3.4 million. Adjusted EBITDA was positively impacted by strong revenue performance, partially offset by higher fruit sourcing costs, an increase in materials and handling costs and lower profit from the commercial cargo business.

Diversified Fresh Produce – EMEA

Revenue increased 8.9%, or $280.4 million, primarily driven by inflation-justified price increases across the segment, a net positive impact from acquisitions and divestitures of $35.8 million and a positive impact from foreign currency translation of $33.2 million, as a result of the strengthening of the Euro and British pound sterling against the U.S. Dollar, partly offset by the weakening of the Swedish krona against the U.S. Dollar. On a like-for-like basis, revenue increased 6.7%, or $211.4 million.

Adjusted EBITDA increased 20.3%, or $22.5 million. The increase was primarily due to strong performance across the segment, particularly within the Spanish, Dutch, Czech and South African businesses, as well as a net favorable impact from acquisitions and divestitures of $1.8 million. Excluding the impact of foreign currency translation and acquisition and divestitures, Adjusted EBITDA was 17.4%, or $19.3 million, ahead of the prior year.

Diversified Fresh Produce – Americas & ROW

Revenue decreased 8.4%, or $165.5 million, primarily due to lower volumes of most commodities sold, particularly in cherries, as well as in berries, grapes and apples, partially offset by inflation-justified price increases, a strong recovery in pricing of grapes and apples after a challenging 2022 and continued strong performance for potatoes and onions in North America.

Adjusted EBITDA decreased 2.7%, or $1.2 million, primarily due to a weak performance for the North American berry business and lower profits in the Chilean cherry business due to seasonal timing differences, partially offset by strong recovery in Chilean apples and grapes after challenging seasons in 2022 and by strong trading activity for most other products that we market in North America, particularly for potatoes and onions.

Capital Expenditures

Capital expenditures for the year ended December 31, 2023 were $78.0 million and included investments in farm renovations and ongoing investments in IT, logistics and efficiency projects in our warehouses and processing facilities. This amount only includes capital expenditures from continuing operations and also excludes non-cash finance lease additions of $8.9 million for the year ended December 31, 2023.

Sales of Assets

Sales of assets for the year ended December 31, 2023 were $83.6 million, compared to $36.7 million for the year ended December 31, 2022. These sales resulted in a gain on asset sales of $54.1 million for the year ended December 31, 2023, compared to $11.8 million for the year ended December 31, 2022. The increase was driven by $44.0 million of cash proceeds received from the sale of idle land in Hawaii during the third quarter of 2023, as well as $14.0 million of cash proceeds received from the sale of a cooler in California during the fourth quarter of 2023.

Free Cash Flow from Continuing Operations and Net Debt

Free Cash Flow from Continuing Operations was $220.6 million for the year ended December 31, 2023. Free Cash Flow from Continuing Operations benefited from strong Adjusted EBITDA performance and good working capital management across the Group over the course of the year. In particular, in the fourth quarter, we benefited from a strong seasonal working capital inflow. At the end of the year, Net Debt was $0.8 billion, a reduction from $1.0 billion as of December 31, 2022.

Progressive Produce Transaction

On February 27, 2024, we entered into a stock purchase agreement with PTF Holdings, LLC, the parent company of Pacific Trellis Fruit, LLC, to sell our 65% equity stake in Progressive Produce LLC for gross cash consideration of $120.2 million. PTF Holdings, LLC is a portfolio company of Arable Capital Partners, LLC. This transaction is expected to close in March 2024, subject to the satisfaction of customary closing conditions.

Outlook for Fiscal Year 2024 (forward-looking statement)

We are pleased with the Group's exceptional performance in 2023, delivering $385.1 million of Adjusted EBITDA from continuing operations. The result gives the Group a strong starting point from which to build further momentum in the 2024 financial year.

As we move through 2024, the operating environment continues to present new challenges as well as opportunities. On the macro-economic side, we have been pleased that inflation has continued to moderate across our key operating regions. We are also pleased by the relative stability being seen in some key foreign exchange rates, energy prices and, more recently, in interest rates.

While forecasting in this environment remains complex, overall, we believe our business is well positioned to deliver another good result in 2024. Given our strong 2023 overperformance, our target at this early stage of the year is to deliver full year Adjusted EBITDA in line with 2023 on a like-for-like basis.

For fiscal year 2024, we are guiding capital expenditure from continuing operations to be in the range of $110 - $120 million.

Dividend

On February 28, 2024, the Board of Directors of Dole plc declared a cash dividend for the fourth quarter of 2023 of $0.08 per share, payable on April 4, 2024 to shareholders of record on March 21, 2024. A cash dividend of $0.08 per share was paid on January 4, 2024 for the third 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 fourth quarter and full year 2023 financial results. The webcast can be accessed at www.doleplc.com/investors.

The conference call can be accessed live by dialing (646) 307-1963 in the US or +353 (1) 582 2023 in Ireland and +44 20 3481 4247 for UK and other international participants. The conference ID is 2525779.

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

Consolidated Statements of Operations - Unaudited

 

 

Three Months Ended

 

Year Ended

 

 

December 31,
2023

 

December 31,
2022

 

December 31,
2023

 

December 31,
2022

 

 

(U.S. Dollars and shares in thousands, except per share amounts)

Revenues, net

 

$

2,072,255

 

 

$

2,042,568

 

 

$

8,245,268

 

 

$

8,024,403

 

Cost of sales

 

 

(1,920,077

)

 

 

(1,891,456

)

 

 

(7,551,098

)

 

 

(7,424,525

)

Gross profit

 

 

152,178

 

 

 

151,112

 

 

 

694,170

 

 

 

599,878

 

Selling, marketing, general and administrative expenses

 

 

(119,334

)

 

 

(112,934

)

 

 

(473,903

)

 

 

(436,192

)

Gain on disposal of businesses

 

 

 

 

 

(50

)

 

 

 

 

 

192

 

Impairment and asset write-downs of property, plant and equipment

 

 

(2,217

)

 

 

(397

)

 

 

(2,217

)

 

 

(397

)

Gain on asset sales

 

 

10,666

 

 

 

2,596

 

 

 

54,108

 

 

 

11,784

 

Operating income

 

 

41,293

 

 

 

40,327

 

 

 

272,158

 

 

 

175,265

 

Other (expense) income, net

 

 

(2,922

)

 

 

(9,165

)

 

 

4,799

 

 

 

10,600

 

Interest income

 

 

2,823

 

 

 

1,986

 

 

 

10,083

 

 

 

6,407

 

Interest expense

 

 

(18,754

)

 

 

(18,245

)

 

 

(81,113

)

 

 

(56,371

)

Income from continuing operations before income taxes and equity earnings

 

 

22,440

 

 

 

14,903

 

 

 

205,927

 

 

 

135,901

 

Income tax (expense) benefit

 

 

(2,987

)

 

 

4,106

 

 

 

(43,591

)

 

 

25,603

 

Equity method earnings

 

 

3,683

 

 

 

2,698

 

 

 

15,191

 

 

 

6,726

 

Income from continuing operations

 

 

23,136

 

 

 

21,707

 

 

 

177,527

 

 

 

168,230

 

Income (loss) from discontinued operations, net of income taxes

 

 

5,798

 

 

 

(8,318

)

 

 

(21,818

)

 

 

(56,447

)

Net income

 

 

28,934

 

 

 

13,389

 

 

 

155,709

 

 

 

111,783

 

Less: Net income attributable to noncontrolling interests

 

 

(6,597

)

 

 

(6,608

)

 

 

(31,646

)

 

 

(25,287

)

Net income attributable to Dole plc

 

$

22,337

 

 

$

6,781

 

 

$

124,063

 

 

$

86,496

 

 

 

 

 

 

 

 

 

 

Income (loss) per share - basic:

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.18

 

 

$

0.16

 

 

$

1.54

 

 

$

1.51

 

Discontinued operations

 

 

0.06

 

 

 

(0.09

)

 

 

(0.23

)

 

 

(0.60

)

Net income per share attributable to Dole plc - basic

 

$

0.24

 

 

$

0.07

 

 

$

1.31

 

 

$

0.91

 

 

 

 

 

 

 

 

 

 

Income (loss) per share - diluted:

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.17

 

 

$

0.16

 

 

$

1.53

 

 

$

1.51

 

Discontinued operations

 

 

0.06

 

 

 

(0.09

)

 

 

(0.23

)

 

 

(0.60

)

Net income per share attributable to Dole plc - diluted

 

$

0.23

 

 

$

0.07

 

 

$

1.30

 

 

$

0.91

 

 

 

 

 

 

 

 

 

 

Weighted-average shares:

 

 

 

 

 

 

 

 

Basic

 

 

94,929

 

 

 

94,899

 

 

 

94,917

 

 

 

94,886

 

Diluted

 

 

95,187

 

 

 

94,928

 

 

 

95,118

 

 

 

94,914

 

Consolidated Balance Sheets - Unaudited

 

 

December 31,
2023

 

December 31,
2022

ASSETS

 

(U.S. Dollars in thousands)

Cash and cash equivalents

 

$

275,580

 

 

$

228,840

 

Short-term investments

 

 

5,899

 

 

 

5,367

 

Trade receivables, net of allowances for credit losses of $18,360 and $18,001, respectively

 

 

538,177

 

 

 

610,384

 

Grower advance receivables, net of allowances of $19,839 and $15,817, respectively

 

 

109,958

 

 

 

106,864

 

Other receivables, net of allowances of $13,227 and $14,538, respectively

 

 

117,069

 

 

 

132,947

 

Inventories, net of allowances of $4,792 and $4,186, respectively

 

 

378,592

 

 

 

394,150

 

Prepaid expenses

 

 

61,724

 

 

 

48,995

 

Other current assets

 

 

17,401

 

 

 

15,034

 

Fresh Vegetables current assets held for sale

 

 

414,457

 

 

 

62,252

 

Other assets held-for-sale

 

 

1,832

 

 

 

645

 

Total current assets

 

 

1,920,689

 

 

 

1,605,478

 

Long-term investments

 

 

15,970

 

 

 

16,498

 

Investments in unconsolidated affiliates

 

 

131,704

 

 

 

124,234

 

Actively marketed property

 

 

13,781

 

 

 

31,007

 

Property, plant and equipment, net of accumulated depreciation of $444,775 and $375,721, respectively

 

 

1,102,234

 

 

 

1,116,124

 

Operating lease right-of-use assets

 

 

340,458

 

 

 

293,658

 

Goodwill

 

 

513,312

 

 

 

497,453

 

DOLE brand

 

 

306,280

 

 

 

306,280

 

Other intangible assets, net of accumulated amortization of $134,420 and $120,315, respectively

 

 

41,232

 

 

 

50,990

 

Fresh Vegetables non-current assets held for sale

 

 

 

 

 

343,828

 

Other assets

 

 

109,048

 

 

 

142,180

 

Deferred tax assets, net

 

 

66,485

 

 

 

64,112

 

Total assets

 

$

4,561,193

 

 

$

4,591,842

 

LIABILITIES AND EQUITY

 

 

 

 

Accounts payable

 

$

670,904

 

 

$

640,620

 

Income taxes payable

 

 

22,917

 

 

 

11,558

 

Accrued liabilities

 

 

357,427

 

 

 

381,688

 

Bank overdrafts

 

 

11,488

 

 

 

8,623

 

Current portion of long-term debt, net

 

 

222,940

 

 

 

97,435

 

Current maturities of operating leases

 

 

63,653

 

 

 

57,372

 

Payroll and other tax

 

 

27,791

 

 

 

27,187

 

Contingent consideration

 

 

1,788

 

 

 

1,791

 

Pension and postretirement benefits

 

 

16,570

 

 

 

17,287

 

Fresh Vegetables current liabilities held for sale

 

 

291,342

 

 

 

199,255

 

Dividends payable and other current liabilities

 

 

29,892

 

 

 

17,698

 

Total current liabilities

 

 

1,716,712

 

 

 

1,460,514

 

Long-term debt, net

 

 

845,013

 

 

 

1,127,321

 

Operating leases, less current maturities

 

 

287,991

 

 

 

246,723

 

Deferred tax liabilities, net

 

 

92,653

 

 

 

118,403

 

Income taxes payable, less current portion

 

 

16,664

 

 

 

30,458

 

Contingent consideration, less current portion

 

 

7,327

 

 

 

5,022

 

Pension and postretirement benefits, less current portion

 

 

121,689

 

 

 

124,646

 

Fresh Vegetables non-current liabilities held for sale

 

 

 

 

 

116,380

 

Other long-term liabilities

 

 

52,295

 

 

 

43,390

 

Total liabilities

 

$

3,140,344

 

 

$

3,272,857

 

Redeemable noncontrolling interests

 

 

34,185

 

 

 

32,311

 

Stockholders’ equity:

 

 

 

 

Common stock — $0.01 par value; 300,000 shares authorized and 94,929 and 94,899 shares outstanding as of December 31, 2023 and December 31, 2022, respectively

 

 

949

 

 

 

949

 

Additional paid-in capital

 

 

796,800

 

 

 

795,063

 

Retained earnings

 

 

562,562

 

 

 

469,249

 

Accumulated other comprehensive loss

 

 

(110,791

)

 

 

(104,133

)

Total equity attributable to Dole plc

 

 

1,249,520

 

 

 

1,161,128

 

Equity attributable to noncontrolling interests

 

 

137,144

 

 

 

125,546

 

Total equity

 

 

1,386,664

 

 

 

1,286,674

 

Total liabilities, redeemable noncontrolling interests and equity

 

$

4,561,193

 

 

$

4,591,842

 

Consolidated Statements of Cash Flows - Unaudited

 

 

Year Ended

 

 

December 31,
2023

 

December 31,
2022

Operating Activities

 

(U.S. Dollars in thousands)

Net income

 

$

155,709

 

 

$

111,783

 

Loss from discontinued operations, net of income taxes

 

 

21,818

 

 

 

56,447

 

Income from continuing operations

 

 

177,527

 

 

 

168,230

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

 

104,168

 

 

 

109,596

 

Incremental charges on purchase accounting valuation of biological assets and inventory

 

 

 

 

 

41,145

 

Net gain on sale of assets

 

 

(54,108

)

 

 

(11,784

)

Stock-based compensation expense

 

 

6,045

 

 

 

4,500

 

Equity method earnings

 

 

(15,191

)

 

 

(6,726

)

Amortization of debt discounts and debt issuance costs

 

 

6,390

 

 

 

6,213

 

Deferred tax benefit

 

 

(12,600

)

 

 

(31,061

)

Pension and other postretirement benefit plan expense

 

 

7,735

 

 

 

3,151

 

Dividends received from equity method investees

 

 

9,388

 

 

 

9,817

 

Other

 

 

4,268

 

 

 

7,164

 

Changes in operating assets and liabilities:

 

 

 

 

Receivables, net of allowances

 

 

58,794

 

 

 

55,150

 

Inventories

 

 

20,688

 

 

 

(31,685

)

Prepaids, other current assets and other assets

 

 

(27,521

)

 

 

(11,073

)

Accounts payable, accrued liabilities and other liabilities

 

 

13,022

 

 

 

10,975

 

Net cash provided by operating activities - continuing operations

 

 

298,605

 

 

 

323,612

 

Investing Activities

 

 

 

 

Sales of assets

 

 

83,557

 

 

 

36,676

 

Capital expenditures

 

 

(78,041

)

 

 

(85,564

)

Acquisitions, net of cash acquired

 

 

(1,263

)

 

 

(4,886

)

Insurance proceeds

 

 

1,054

 

 

 

2,278

 

Purchases of investments

 

 

(1,153

)

 

 

(458

)

Net sales (purchases) of investments in unconsolidated affiliates

 

 

1,013

 

 

 

(3,029

)

Other

 

 

57

 

 

 

912

 

Net cash provided by (used in) investing activities - continuing operations

 

 

5,224

 

 

 

(54,071

)

Financing Activities

 

 

 

 

Proceeds from borrowings and overdrafts

 

 

1,407,970

 

 

 

1,293,280

 

Repayments on borrowings and overdrafts

 

 

(1,576,067

)

 

 

(1,411,467

)

Payment of debt issuance costs

 

 

(44

)

 

 

(304

)

Dividends paid to shareholders

 

 

(30,373

)

 

 

(30,364

)

Dividends paid to noncontrolling interests

 

 

(28,522

)

 

 

(21,632

)

Other noncontrolling interest activity, net

 

 

(1,300

)

 

 

 

Payments of contingent consideration

 

 

(1,662

)

 

 

(2,909

)

Net cash used in financing activities - continuing operations

 

 

(229,998

)

 

 

(173,396

)

Effect of foreign currency exchange rate changes on cash

 

 

5,448

 

 

 

(20,712

)

Net cash used in operating activities - discontinued operations

 

 

(22,622

)

 

 

(84,720

)

Net cash used in investing activities - discontinued operations

 

 

(8,492

)

 

 

(12,434

)

Cash used in discontinued operations, net

 

 

(31,114

)

 

 

(97,154

)

Increase (decrease) in cash and cash equivalents

 

 

48,165

 

 

 

(21,721

)

Cash and cash equivalents at beginning of period, including discontinued operations

 

 

228,840

 

 

 

250,561

 

Cash and cash equivalents at end of period, including discontinued operations

 

$

277,005

 

 

$

228,840

 

  

 

 

 

Supplemental cash flow information:

 

 

 

 

Income tax payments, net of refunds

 

$

(63,969

)

 

$

(50,469

)

Interest payments on borrowings

 

$

(82,367

)

 

$

(53,404

)

Non-cash Investing and Financing Activities:

 

 

 

 

Accrued property, plant and equipment

 

$

(1,465

)

 

$

(488

)

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

 

Year Ended

 

 

December 31,
2023

 

December 31,
2022

 

December 31,
2023

 

December 31,
2022

 

 

(U.S. Dollars in thousands)

Net income (Reported GAAP)

 

$

28,934

 

 

$

13,389

 

 

$

155,709

 

 

$

111,783

 

(Income) loss from discontinued operations, net of income taxes

 

 

(5,798

)

 

 

8,318

 

 

 

21,818

 

 

 

56,447

 

Income from continuing operations (Reported GAAP)

 

 

23,136

 

 

 

21,707

 

 

 

177,527

 

 

 

168,230

 

Income tax expense (benefit)

 

 

2,987

 

 

 

(4,106

)

 

 

43,591

 

 

 

(25,603

)

Interest expense

 

 

18,754

 

 

 

18,245

 

 

 

81,113

 

 

 

56,371

 

Mark to market losses

 

 

5,450

 

 

 

8,868

 

 

 

2,524

 

 

 

3,049

 

Gain on asset sales

 

 

(9,139

)

 

 

(1,970

)

 

 

(52,495

)

 

 

(10,316

)

Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole

 

 

 

 

 

681

 

 

 

 

 

 

41,145

 

Cyber-related incident

 

 

 

 

 

 

 

 

5,321

 

 

 

 

Other items4,5

 

 

1,833

 

 

 

1,053

 

 

 

2,918

 

 

 

(231

)

Adjustments from equity method investments

 

 

4,309

 

 

 

2,614

 

 

 

10,714

 

 

 

7,540

 

Adjusted EBIT (Non-GAAP)

 

 

47,330

 

 

 

47,092

 

 

 

271,213

 

 

 

240,185

 

Depreciation

 

 

24,788

 

 

 

25,159

 

 

 

93,970

 

 

 

98,703

 

Amortization of intangible assets

 

 

2,472

 

 

 

2,645

 

 

 

10,198

 

 

 

10,893

 

Depreciation and amortization adjustments from equity method investments

 

 

2,267

 

 

 

2,616

 

 

 

9,737

 

 

 

10,615

 

Adjusted EBITDA (Non-GAAP)

 

$

76,857

 

 

$

77,512

 

 

$

385,118

 

 

$

360,396

 

                 

4 For the three months ended December 31, 2023, other items is primarily comprised of $1.9 million asset write-downs, net of insurance proceeds and $0.2 million of impairment charges on property, plant and equipment, partially offset by other immaterial items. For the three months ended December 31, 2022, other items is primarily comprised of $0.5 million of net losses on equity method disposals, $0.4 million of impairment charges on property, plant and equipment and other immaterial items.

5 For the year ended December 31, 2023, other items is primarily comprised of $3.0 million of asset write-downs, net of insurance proceeds, $0.2 million of impairment charges on property, plant and equipment, partially offset by other immaterial items. For the year ended December 31, 2022, other items is primarily comprised of $0.9 million of net legal and restructuring adjustments and $0.5 million of insurance proceeds, net of asset write-downs, partially offset by $0.5 million of net losses on equity method acquisitions and disposals, $0.4 million of impairment charges on property, plant and equipment and other immaterial items.

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

 

Year Ended

 

 

December 31,
2023

 

December 31,
2022

 

December 31,
2023

 

December 31,
2022

 

 

(U.S. Dollars and shares in thousands, except per share amounts)

Net income attributable to Dole plc (Reported GAAP)

 

$

22,337

 

 

$

6,781

 

 

$

124,063

 

 

$

86,496

 

(Income) loss from discontinued operations, net of income taxes

 

 

(5,798

)

 

 

8,318

 

 

 

21,818

 

 

 

56,447

 

Income from continuing operations attributable to Dole plc

 

 

16,539

 

 

 

15,099

 

 

 

145,881

 

 

 

142,943

 

Amortization of intangible assets

 

 

2,472

 

 

 

2,645

 

 

 

10,198

 

 

 

10,893

 

Mark to market losses

 

 

5,450

 

 

 

8,868

 

 

 

2,524

 

 

 

3,049

 

Gain on asset sales

 

 

(9,139

)

 

 

(1,970

)

 

 

(52,495

)

 

 

(10,316

)

Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole

 

 

 

 

 

681

 

 

 

 

 

 

41,145

 

Cyber-related incident

 

 

 

 

 

 

 

 

5,321

 

 

 

 

Other items6,7

 

 

1,833

 

 

 

1,053

 

 

 

2,918

 

 

 

(231

)

Adjustments from equity method investments

 

 

604

 

 

 

662

 

 

 

1,956

 

 

 

2,580

 

Income tax on items above and discrete tax items

 

 

(1,709

)

 

 

(8,876

)

 

 

5,243

 

 

 

(50,504

)

NCI impact on items above

 

 

(1,220

)

 

 

(898

)

 

 

(3,494

)

 

 

(3,187

)

Adjusted Net Income for Adjusted EPS calculation (Non-GAAP)

 

$

14,830

 

 

$

17,264

 

 

$

118,052

 

 

$

136,372

 

 

 

 

 

 

 

 

 

 

Adjusted earnings per share – basic (Non-GAAP)

 

$

0.16

 

 

$

0.18

 

 

$

1.24

 

 

$

1.44

 

Adjusted earnings per share – diluted (Non-GAAP)

 

$

0.16

 

 

$

0.18

 

 

$

1.24

 

 

$

1.44

 

Weighted average shares outstanding – basic

 

 

94,929

 

 

 

94,899

 

 

 

94,917

 

 

 

94,886

 

Weighted average shares outstanding – diluted

 

 

95,187

 

 

 

94,928

 

 

 

95,118

 

 

 

94,914

 

                 

6 For the three months ended December 31, 2023, other items is primarily comprised of $1.9 million asset write-downs, net of insurance proceeds and $0.2 million of impairment charges on property, plant and equipment, partially offset by other immaterial items. For the three months ended December 31, 2022, other items is primarily comprised of $0.5 million of net losses on equity method disposals, $0.4 million of impairment charges on property, plant and equipment and other immaterial items.

7 For the year ended December 31, 2023, other items is primarily comprised of $3.0 million of asset write-downs, net of insurance proceeds, $0.2 million of impairment charges on property, plant and equipment, partially offset by other immaterial items. For the year ended December 31, 2022, other items is primarily comprised of $0.9 million of net legal and restructuring adjustments and $0.5 million of insurance proceeds, net of asset write-downs, partially offset by $0.5 million of net losses on equity method acquisitions and disposals, $0.4 million of impairment charges on property, plant and equipment and other immaterial items.

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 December 31, 2023
(U.S. Dollars in thousands)

 

Revenues, net

Cost of sales

Gross profit

Gross
Margin
%

Selling, marketing, general and administration expenses

Other
operating
charges8

Operating
Income

Reported (GAAP)

$

2,072,255

(1,920,077

)

152,178

 

7.3 %

(119,334

)

8,449

 

$

41,293

 

(Income) loss from discontinued operations, net of income taxes

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

 

2,472

 

 

 

2,472

 

Mark to market losses

 

(189

)

(189

)

 

 

 

(189

)

Gain on asset sales

 

 

 

 

(9,139

)

 

(9,139

)

Cyber-related incident

 

 

 

 

 

 

 

Other items

 

2,120

 

2,120

 

(34

)

 

 

2,086

 

Adjustments from equity method investments

 

 

 

 

 

 

 

Income tax on items above and discrete tax items

 

 

 

 

 

 

 

NCI impact on items above

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

2,072,255

(1,918,146

)

154,109

 

7.4 %

(116,896

)

(690

)

$

36,523

 

               

8 Other operating charges for the three months ended December 31, 2023 is primarily comprised of a $10.7 million gain on asset sales, partially offset by $2.2 million of impairment charges and asset write-downs of property, plant and equipment, as reported in the consolidated statements of operations.

 

Three Months Ended December 31, 2022
(U.S. Dollars in thousands)

 

Revenues, net

Cost of sales

Gross profit

Gross
Margin
%

Selling, marketing, general and administration expenses

Other operating charges9

Operating Income

Reported (GAAP)

$

2,042,568

(1,891,456

)

151,112

 

7.4 %

(112,934

)

2,149

 

$

40,327

 

(Income) loss from discontinued operations, net of income taxes

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

 

2,645

 

 

 

2,645

 

Mark to market losses

 

476

 

476

 

 

 

 

476

 

Gain on asset sales

 

 

 

 

(1,970

)

 

(1,970

)

Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole

 

681

 

681

 

 

 

 

681

 

Other items

 

(452

)

(452

)

 

961

 

 

509

 

Adjustments from equity method investments

 

 

 

 

 

 

 

Income tax on items above and discrete tax items

 

 

 

 

 

 

 

NCI impact on items above

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

2,042,568

(1,890,751

)

151,817

 

7.4 %

(110,289

)

1,140

 

$

42,668

 

               

9 Other operating charges for the three months ended December 31, 2022 is primarily comprised of a $2.6 million gain on asset sales, partially offset by $0.4 million of impairment charges and asset write-downs of property, plant and equipment, as reported in the consolidated statements of operations.

 

Three Months Ended December 31, 2023
(U.S. Dollars in thousands)

 

Other (expense) income, net

Interest income

Interest expense

Income tax (expense)

Equity earnings

Income from continuing operations

Income from discontinued operations, net of income taxes

Reported (GAAP)

$

(2,922

)

2,823

(18,754

)

(2,987

)

3,683

 

23,136

 

$

5,798

 

(Income) loss from discontinued operations, net of income taxes

 

 

 

 

 

 

 

(5,798

)

Amortization of intangible assets

 

 

 

 

 

2,472

 

 

 

Mark to market losses

 

5,639

 

 

 

 

5,450

 

 

 

Gain on asset sales

 

 

 

 

 

(9,139

)

 

 

Cyber-related incident

 

 

 

 

 

 

 

 

Other items

 

(253

)

 

 

 

1,833

 

 

 

Adjustments from equity method investments

 

 

 

 

604

 

604

 

 

 

Income tax on items above and discrete tax items

 

 

 

(1,610

)

(99

)

(1,709

)

 

 

NCI impact on items above

 

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

2,464

 

2,823

(18,754

)

(4,597

)

4,188

 

22,647

 

$

 

 

Three Months Ended December 31, 2022
(U.S. Dollars in thousands)

 

Other expense, net

Interest income

Interest expense

Income tax benefit (expense)

Equity earnings

Income from continuing operations

Loss from discontinued operations, net of income taxes

Reported (GAAP)

$

(9,165

)

1,986

(18,245

)

4,106

 

2,698

 

21,707

 

$

(8,318

)

(Income) loss from discontinued operations, net of income taxes

 

 

 

 

 

 

 

8,318

 

Amortization of intangible assets

 

 

 

 

 

2,645

 

 

 

Mark to market losses

 

8,392

 

 

 

 

8,868

 

 

 

Gain on asset sales

 

 

 

 

 

(1,970

)

 

 

Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole

 

 

 

 

 

681

 

 

 

Other items

 

 

 

 

544

 

1,053

 

 

 

Adjustments from equity method investments

 

 

 

 

662

 

662

 

 

 

Income tax on items above and discrete tax items

 

 

 

(8,777

)

(99

)

(8,876

)

 

 

NCI impact on items above

 

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

(773

)

1,986

(18,245

)

(4,671

)

3,805

 

24,770

 

$

 

 

Three Months Ended December 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)

$

28,934

 

(6,597

)

$

22,337

 

$

0.23

(Income) loss from discontinued operations, net of income taxes

 

(5,798

)

 

 

(5,798

)

 

Amortization of intangible assets

 

2,472

 

 

 

2,472

 

Mark to market losses

 

5,450

 

 

 

5,450

 

Gain on asset sales

 

(9,139

)

 

 

(9,139

)

Cyber-related incident

 

 

 

 

 

Other items

 

1,833

 

 

 

1,833

 

Adjustments from equity method investments

 

604

 

 

 

604

 

Income tax on items above and discrete tax items

 

(1,709

)

 

 

(1,709

)

NCI impact on items above

 

 

(1,220

)

 

(1,220

)

Adjusted (Non-GAAP)

$

22,647

 

(7,817

)

$

14,830

 

$

0.16

 

 

 

 

 

Weighted average shares outstanding – diluted

 

 

 

95,187

 

 

 

Three Months Ended December 31, 2022
(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)

$

13,389

 

(6,608

)

$

6,781

 

$

0.07

(Income) loss from discontinued operations, net of income taxes

 

8,318

 

 

 

8,318

 

 

Amortization of intangible assets

 

2,645

 

 

 

2,645

 

Mark to market losses

 

8,868

 

 

 

8,868

 

Gain on asset sales

 

(1,970

)

 

 

(1,970

)

Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole

 

681

 

 

 

681

 

Other items

 

1,053

 

 

 

1,053

 

Adjustments from equity method investments

 

662

 

 

 

662

 

Income tax on items above and discrete tax items

 

(8,876

)

 

 

(8,876

)

NCI impact on items above

 

 

(898

)

 

(898

)

Adjusted (Non-GAAP)

$

24,770

 

(7,506

)

$

17,264

 

$

0.18

 

 

 

 

 

Weighted average shares outstanding – diluted

 

 

 

94,928

 

 

 

Year Ended December 31, 2023
(U.S. Dollars in thousands)

 

Revenues, net

Cost of sales

Gross profit

Gross Margin %

Selling, marketing, general and administration expenses

Other operating charges10

Operating Income

Reported (GAAP)

$

8,245,268

(7,551,098

)

694,170

 

8.4 %

(473,903

)

51,891

 

$

272,158

 

(Income) loss from discontinued operations, net of income taxes

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

 

10,198

 

 

 

10,198

 

Mark to market losses

 

(2,638

)

(2,638

)

 

 

 

(2,638

)

Gain on asset sales

 

 

 

 

(52,495

)

 

(52,495

)

Cyber-related incident

 

 

 

5,321

 

 

 

5,321

 

Other items

 

3,205

 

3,205

 

(34

)

 

 

3,171

 

Adjustments from equity method investments

 

 

 

 

 

 

 

Income tax on items above and discrete tax items

 

 

 

 

 

 

 

NCI impact on items above

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

8,245,268

(7,550,531

)

694,737

 

8.4 %

(458,418

)

(604

)

$

235,715

 

               

10 Other operating charges for the year ended December 31, 2023 is primarily comprised of a $54.1 million gain on asset sales, partially offset by $2.2 million of impairment charges and asset write-downs of property, plant and equipment, as reported in the consolidated statements of operations.

 

Year Ended December 31, 2022
(U.S. Dollars in thousands)

 

Revenues, net

Cost of sales

Gross profit

Gross Margin %

Selling, marketing, general and administration expenses

Other operating charges11

Operating Income

Reported (GAAP)

$

8,024,403

(7,424,525

)

599,878

 

7.5 %

(436,192

)

11,579

 

$

175,265

 

(Income) loss from discontinued operations, net of income taxes

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

 

10,893

 

 

 

10,893

 

Mark to market losses

 

2,848

 

2,848

 

 

 

 

2,848

 

Gain on asset sales

 

 

 

 

(10,316

)

 

(10,316

)

Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole

 

41,145

 

41,145

 

 

 

 

41,145

 

Other items

 

(452

)

(452

)

(910

)

587

 

 

(775

)

Adjustments from equity method investments

 

 

 

 

 

 

 

Income tax on items above and discrete tax items

 

 

 

 

 

 

 

NCI impact on items above

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

8,024,403

(7,380,984

)

643,419

 

8.0 %

(426,209

)

1,850

 

$

219,060

 

               

11 Other operating charges for the year ended December 31, 2022 is primarily comprised of a $11.8 million gain on asset sales, partially offset by $0.4 million of impairment charges and asset write-downs of property, plant and equipment, as reported in the consolidated statements of operations.

 

Year Ended December 31, 2023
(U.S. Dollars in thousands)

 

Other income, net

Interest income

Interest expense

Income tax (expense)

Equity earnings

Income from continuing operations

Loss from discontinued operations, net of income taxes

Reported (GAAP)

$

4,799

 

10,083

(81,113

)

(43,591

)

15,191

 

177,527

 

$

(21,818

)

(Income) loss from discontinued operations, net of income taxes

 

 

 

 

 

 

 

21,818

 

Amortization of intangible assets

 

 

 

 

 

10,198

 

 

 

Mark to market losses

 

5,162

 

 

 

 

2,524

 

 

 

Gain on asset sales

 

 

 

 

 

(52,495

)

 

 

Cyber-related incident

 

 

 

 

 

5,321

 

 

 

Other items

 

(253

)

 

 

 

2,918

 

 

 

Adjustments from equity method investments

 

 

 

 

1,956

 

1,956

 

 

 

Income tax on items above and discrete tax items

 

 

 

5,643

 

(400

)

5,243

 

 

 

NCI impact on items above

 

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

9,708

 

10,083

(81,113

)

(37,948

)

16,747

 

153,192

 

$

 

 

Year Ended December 31, 2022
(U.S. Dollars in thousands)

 

Other income, net

Interest income

Interest expense

Income tax expense

Equity earnings

Income from continuing operations

Loss from discontinued operations, net of income taxes

Reported (GAAP)

$

10,600

6,407

(56,371

)

25,603

 

6,726

 

168,230

 

$

(56,447

)

(Income) loss from discontinued operations, net of income taxes

 

 

 

 

 

 

56,447

 

Amortization of intangible assets

 

 

 

 

10,893

 

 

 

Mark to market losses

 

201

 

 

 

3,049

 

 

 

Gain on asset sales

 

 

 

 

(10,316

)

 

 

Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole

 

 

 

 

41,145

 

 

 

Other items

 

 

 

544

 

(231

)

 

 

Adjustments from equity method investments

 

 

 

2,580

 

2,580

 

 

 

Income tax on items above and discrete tax items

 

 

(50,097

)

(407

)

(50,504

)

 

 

NCI impact on items above

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

10,801

6,407

(56,371

)

(24,494

)

9,443

 

164,846

 

$

 

 

Year Ended December 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)

$

155,709

 

(31,646

)

$

124,063

 

$

1.30

(Income) loss from discontinued operations, net of income taxes

 

21,818

 

 

 

21,818

 

 

Amortization of intangible assets

 

10,198

 

 

 

10,198

 

Mark to market losses

 

2,524

 

 

 

2,524

 

Gain on asset sales

 

(52,495

)

 

 

(52,495

)

Cyber-related incident

 

5,321

 

 

 

5,321

 

Other items

 

2,918

 

 

 

2,918

 

Adjustments from equity method investments

 

1,956

 

 

 

1,956

 

Income tax on items above and discrete tax items

 

5,243

 

 

 

5,243

 

NCI impact on items above

 

 

(3,494

)

 

(3,494

)

Adjusted (Non-GAAP)

$

153,192

 

(35,140

)

$

118,052

 

$

1.24

 

 

 

 

 

Weighted average shares outstanding – diluted

 

 

 

95,118

 

 

 

Year Ended December 31, 2022
(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)

$

111,783

 

(25,287

)

$

86,496

 

$

0.91

(Income) loss from discontinued operations, net of income taxes

 

56,447

 

 

 

56,447

 

 

Amortization of intangible assets

 

10,893

 

 

 

10,893

 

Mark to market losses

 

3,049

 

 

 

3,049

 

Gain on asset sales

 

(10,316

)

 

 

(10,316

)

Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole

 

41,145

 

 

 

41,145

 

Other items

 

(231

)

 

 

(231

)

Adjustments from equity method investments

 

2,580

 

 

 

2,580

 

Income tax on items above and discrete tax items

 

(50,504

)

 

 

(50,504

)

NCI impact on items above

 

 

(3,187

)

 

(3,187

)

Adjusted (Non-GAAP)

$

164,846

 

(28,474

)

$

136,372

 

$

1.44

 

 

 

 

 

Weighted average shares outstanding – diluted

 

 

 

94,914

 

 

Supplemental Reconciliation of Prior Year Segment Results to Current Year Segment Results – Unaudited

 

 

Revenue for the Three Months Ended

 

 

December 31,
2022

 

Impact of
Foreign
Currency
Translation

 

Impact of
Acquisitions
and
Divestitures

 

Like-for-like
Increase
(Decrease)

 

December 31,
2023

 

 

(U.S. Dollars in thousands)

Fresh Fruit

 

$

740,167

 

 

$

 

$

 

$

8,536

 

 

$

748,703

 

Diversified Fresh Produce - EMEA

 

 

751,594

 

 

 

33,388

 

 

12,170

 

 

65,713

 

 

 

862,865

 

Diversified Fresh Produce - Americas & ROW

 

 

573,936

 

 

 

55

 

 

 

 

(84,230

)

 

 

489,761

 

Intersegment

 

 

(23,129

)

 

 

 

 

 

 

(5,945

)

 

 

(29,074

)

Total

 

$

2,042,568

 

 

$

33,443

 

$

12,170

 

$

(15,926

)

 

$

2,072,255

 

 

 

Adjusted EBITDA for the Three Months Ended

 

 

December 31,
2022

 

Impact of
Foreign
Currency
Translation

 

Impact of
Acquisitions
and
Divestitures

 

Like-for-like
Increase
(Decrease)

 

December 31,
2023

 

 

(U.S. Dollars in thousands)

Fresh Fruit

 

$

39,460

 

$

(82

)

 

$

 

 

$

(10,586

)

 

$

28,792

Diversified Fresh Produce - EMEA

 

 

22,656

 

 

1,132

 

 

 

376

 

 

 

8,474

 

 

 

32,638

Diversified Fresh Produce - Americas & ROW

 

 

15,396

 

 

(15

)

 

 

(529

)

 

 

575

 

 

 

15,427

Total

 

$

77,512

 

$

1,035

 

 

$

(153

)

 

$

(1,537

)

 

$

76,857

 

 

Revenue for the Year Ended

 

 

December 31,
2022

 

Impact of
Foreign
Currency
Translation

 

Impact of
Acquisitions
and
Divestitures

 

Like-for-like
Increase
(Decrease)

 

December 31,
2023

 

 

(U.S. Dollars in thousands)

Fresh Fruit

 

$

3,047,149

 

 

$

 

 

$

 

$

88,717

 

 

$

3,135,866

 

Diversified Fresh Produce - EMEA

 

 

3,152,561

 

 

 

33,200

 

 

 

35,812

 

 

211,372

 

 

 

3,432,945

 

Diversified Fresh Produce - Americas & ROW

 

 

1,965,667

 

 

 

(6,469

)

 

 

 

 

(159,030

)

 

 

1,800,168

 

Intersegment

 

 

(140,974

)

 

 

 

 

 

 

 

17,263

 

 

 

(123,711

)

Total

 

$

8,024,403

 

 

$

26,731

 

 

$

35,812

 

$

158,322

 

 

$

8,245,268

 

 

 

Adjusted EBITDA for the Year Ended

 

 

December 31,
2022

 

Impact of
Foreign
Currency
Translation

 

Impact of
Acquisitions
and
Divestitures

 

Like-for-like
Increase
(Decrease)

 

December 31,
2023

 

 

(U.S. Dollars in thousands)

Fresh Fruit

 

$

205,547

 

$

(412

)

 

$

 

$

3,795

 

 

$

208,930

Diversified Fresh Produce - EMEA

 

 

111,053

 

 

1,345

 

 

 

1,834

 

 

19,338

 

 

 

133,570

Diversified Fresh Produce - Americas & ROW

 

 

43,796

 

 

(260

)

 

 

969

 

 

(1,887

)

 

 

42,618

Total

 

$

360,396

 

$

673

 

 

$

2,803

 

$

21,246

 

 

$

385,118

Net Debt Reconciliation – Unaudited

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 December 31, 2023 is presented below. Net Debt as of December 31, 2023 was $0.8 billion.

 

 

December 31, 2023

 

December 31, 2022

 

 

(U.S. Dollars in thousands)

Cash and cash equivalents (Reported GAAP)

 

$

275,580

 

 

$

228,840

 

Debt (Reported GAAP):

 

 

 

 

Long-term debt, net

 

 

(845,013

)

 

 

(1,127,321

)

Current maturities

 

 

(222,940

)

 

 

(97,435

)

Bank overdrafts

 

 

(11,488

)

 

 

(8,623

)

Total debt, net

 

 

(1,079,441

)

 

 

(1,233,379

)

Less: Debt discounts and debt issuance costs (Reported GAAP)

 

 

(14,395

)

 

 

(17,874

)

Total gross debt

 

 

(1,093,836

)

 

 

(1,251,253

)

Net Debt (Non-GAAP)

 

$

(818,256

)

 

$

(1,022,413

)

Free Cash Flow from Continuing Operations Reconciliation – Unaudited

 

 

Year Ended

 

 

December 31, 2023

 

December 31, 2022

 

 

 

 

 

 

 

(U.S. Dollars in thousands)

Net cash provided by operating activities - continuing operations (Reported GAAP)

 

$

298,605

 

 

$

323,612

 

Less: Capital expenditures (Reported GAAP)12

 

 

(78,041

)

 

 

(85,564

)

Free cash flow from continuing operations (Non-GAAP)

 

$

220,564

 

 

$

238,048

 

         

12 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) adding the loss or subtracting the income 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 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 years ended December 31, 2023 and December 31, 2022, 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, adding the incremental costs from the fair value uplift for biological assets related to the acquisition of Legacy Dole, subtracting the gain or adding the loss on the sale of investments accounted for under the equity method, subtracting the gain or adding the loss on asset sales for assets held for sale and actively marketed property, adding impairment charges on property, plant and equipment, adding restructuring charges and costs for legal matters not in the ordinary course of business 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) 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 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 years ended December 31, 2023 and December 31, 2022, 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, adding the incremental costs from the fair value uplift for biological assets related to the acquisition of Legacy Dole, subtracting the gain or adding the loss on the sale of investments accounted for under the equity method, subtracting the gain or adding the loss on asset sales for assets held for sale and actively marketed property, adding impairment charges on property, plant and equipment, adding restructuring charges and costs for legal matters not in the ordinary course of business 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) 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 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 years ended December 31, 2023 and December 31, 2022, 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, adding the incremental costs from the fair value uplift for biological assets related to the acquisition of Legacy Dole, subtracting the gain or adding the loss on the sale of investments accounted for under the equity method, subtracting the gain or adding the loss on asset sales for assets held for sale and actively marketed property, adding impairment charges on property, plant and equipment, adding restructuring charges and costs for legal matters not in the ordinary course of business 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 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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