Sienna Resources

Dole Reports Third Quarter 2023 Financial Results

16 November 2023

DUBLIN / Nov 16, 2023 / Business Wire / Dole plc (NYSE: DOLE) ("Dole" or the "Group" or the "Company") today released its financial results for the three and nine months ended September 30, 2023.

Highlights for the three months ended September 30, 2023:

  • Revenue of $2.0 billion, an increase of 4.2%
  • Net Income of $54.0 million, an increase of 15.9%
  • Adjusted EBITDA1 of $85.2 million, an increase of 7.6%
  • Adjusted Net Income of $22.6 million and Adjusted Diluted EPS of $0.24
  • Cash proceeds of $45.5 million related to asset sales

Financial Highlights - Unaudited

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,
2023

 

September 30,
2022

 

September 30,
2023

 

September 30,
2022

 

 

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

Revenue

 

2,043

 

1,961

 

6,173

 

5,982

Income from continuing operations 2

 

55.7

 

58.3

 

154.4

 

146.5

Net Income

 

54.0

 

46.6

 

126.8

 

98.4

Net Income attributable to Dole plc

 

45.3

 

39.8

 

101.7

 

79.7

Diluted EPS from continuing operations

 

0.50

 

0.54

 

1.36

 

1.35

Diluted EPS

 

0.48

 

0.42

 

1.07

 

0.84

Adjusted EBITDA1

 

85.2

 

79.2

 

308.3

 

282.9

Adjusted Net Income1

 

22.6

 

26.2

 

103.2

 

119.1

Adjusted Diluted EPS1

 

0.24

 

0.28

 

1.09

 

1.25

____________________

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 very pleased that our momentum from the first half of the year has continued into the third quarter. We delivered another strong set of results, with Revenue growth of 4.2% and Adjusted EBITDA growth of 7.6%.

As we move towards the end of the financial year, our strong result for the first nine months positions us to deliver a good result for the year and we are now targeting Adjusted EBITDA for 2023 of at least $365.0 million.

Once again, we would like to extend our appreciation to all of our people across the Group for their dedication and efforts in delivering these results.”

Group Results - Third Quarter

Revenue increased 4.2%, or $82.0 million, primarily due to strong performance in the Diversified EMEA segment, offset partially by the Diversified Americas and Fresh Fruit segments. On a like-for-like basis3, revenue was 1.2%, or $23.6 million, ahead of prior year.

Adjusted EBITDA increased 7.6%, or $6.0 million, primarily driven by stronger performance in the Diversified Americas and Diversified EMEA segments. On a like-for-like basis, Adjusted EBITDA increased 4.2%, or $3.4 million.

Adjusted Net Income decreased $3.6 million, predominantly due to higher interest expense and tax expense, offset by the increases in Adjusted EBITDA as noted above and lower depreciation. Adjusted Diluted EPS for the three months ended September 30, 2023 was $0.24 compared to $0.28 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

 

September 30, 2023

 

September 30, 2022

 

(U.S. Dollars in thousands)

 

Revenue

 

Adjusted EBITDA

 

Revenue

 

Adjusted EBITDA

Fresh Fruit

$

749,210

 

 

$

45,111

 

 

$

751,348

 

 

$

49,382

 

Diversified Fresh Produce - EMEA

 

856,351

 

 

 

34,923

 

 

 

759,964

 

 

 

30,686

 

Diversified Fresh Produce - Americas & ROW

 

470,011

 

 

 

5,159

 

 

 

479,839

 

 

 

(870

)

Intersegment

 

(32,900

)

 

 

 

 

 

(30,456

)

 

 

 

Total

$

2,042,672

 

 

$

85,193

 

 

$

1,960,695

 

 

$

79,198

 

 

Nine Months Ended

 

September 30, 2023

 

September 30, 2022

 

(U.S. Dollars in thousands)

 

Revenue

 

Adjusted EBITDA

 

Revenue

 

Adjusted EBITDA

Fresh Fruit

$

2,387,163

 

 

$

180,138

 

 

$

2,306,982

 

 

$

166,087

 

Diversified Fresh Produce - EMEA

 

2,570,080

 

 

 

100,932

 

 

 

2,400,967

 

 

 

88,397

 

Diversified Fresh Produce - Americas & ROW

 

1,310,407

 

 

 

27,191

 

 

 

1,391,731

 

 

 

28,399

 

Intersegment

 

(94,637

)

 

 

 

 

 

(117,845

)

 

 

 

Total

$

6,173,013

 

 

$

308,261

 

 

$

5,981,835

 

 

$

282,883

 

Fresh Fruit

Revenue decreased 0.3%, or $2.1 million. Revenue was negatively impacted by lower banana prices in North America, partially offset by higher worldwide volumes of bananas sold, an increase in worldwide pricing of pineapples and stronger pricing of bananas in Europe.

Adjusted EBITDA decreased 8.6%, or $4.3 million. Adjusted EBITDA was primarily impacted by lower revenue, higher fruit sourcing costs and a decrease in commercial cargo activity, partially offset by lower shipping and logistics costs, as well as by strong pricing excluding the impact of fuel surcharges.

Diversified Fresh Produce – EMEA

Revenue increased 12.7%, or $96.4 million, primarily driven by a favorable impact from foreign currency translation of $54.4 million, inflation-justified price increases across the segment and a positive impact from acquisitions of $5.5 million. On a like-for-like basis, revenue was 4.8%, or $36.5 million, ahead of prior year.

Adjusted EBITDA increased 13.8%, or $4.2 million, primarily driven by a favorable impact from foreign currency translation of $2.0 million, an incremental positive impact from acquisitions of $0.2 million and strong performance in Ireland, the U.K., Spain and Holland. On a like-for-like basis, Adjusted EBITDA was 6.6%, or $2.0 million, ahead of prior year.

Diversified Fresh Produce – Americas & ROW

Revenue decreased 2.0%, or $9.8 million, primarily driven by lower revenue for berries in North America, as well as by lower volumes of most other commodities, partially offset by inflation-justified price increases.

Adjusted EBITDA increased 693.0%, or $6.0 million, primarily due to continued strong performance in most products that we market in North America, as well as by a favorable comparison to the three months ended September 2022, which had a challenging end to the Chilean grapes season due to abnormal supply chain disruption. These increases were partially offset by a challenging quarter for berries in North America.

Capital Expenditures

Capital expenditures for the nine months ended September 30, 2023 were $51.3 million, which 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.

Sales of Assets

Sales of assets for the nine months ended September 30, 2023 were $64.1 million, compared to $27.8 million for the nine months ended September 30, 2022. These sales resulted in a gain on asset sales of $43.4 million for the nine months ended September 30, 2023, compared to $9.2 million for the nine months ended September 30, 2022. The increase was driven by $45.5 million of cash proceeds received during the three months ended September 30, 2023, resulting in a gain of $28.7 million. These proceeds were predominantly from the sale of idle land in Hawaii, which realized cash proceeds of $44.0 million.

Free Cash Flow from Continuing Operations and Net Debt

Free Cash Flow from Continuing Operations was $105.8 million for the nine months ended September 30, 2023. Free Cash Flow from Continuing Operations benefited from strong Adjusted EBITDA performance for the first nine months of the year and good working capital management across the Group. Net Debt as of September 30, 2023 was $0.9 billion.

Outlook for Fiscal Year 2023 (forward-looking statement)

We are very pleased with the Group’s performance in the first nine months of the year, delivering $308.3 million of Adjusted EBITDA.

While the wider macro-environment continues to remain complex and impacts from weather events remain unpredictable, we remain confident in the strength of our diversified supply base and the experience and quality of our operating teams across the globe to deal with challenges as they arise.

Overall, our strong results for the first nine months position us well to deliver a good result for the year and we are now targeting Adjusted EBITDA for 2023 of at least $365.0 million.

Dividend

On November 15, 2023, the Board of Directors of Dole plc declared a cash dividend for the third quarter of 2023 of $0.08 per share, payable on January 4, 2024 to shareholders of record on December 14, 2023. A cash dividend of $0.08 per share was paid on October 5, 2023 for the second 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 third quarter 2023 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 US or +353 (1) 582 2023 in Ireland and +44 20 3481 4247 for UK and other international participants. The conference ID is 6406315.

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 Statement of Operations - Unaudited

 

Three Months Ended

 

Nine Months Ended

 

September 30,
2023

 

September 30,
2022

 

September 30,
2023

 

September 30,
2022

 

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

Revenues, net

$

2,042,672

 

 

$

1,960,695

 

 

$

6,173,013

 

 

$

5,981,835

 

Cost of sales

 

(1,876,292

)

 

 

(1,829,233

)

 

 

(5,631,021

)

 

 

(5,533,069

)

Gross profit

 

166,380

 

 

 

131,462

 

 

 

541,992

 

 

 

448,766

 

Selling, marketing, general and administrative expenses

 

(118,023

)

 

 

(103,349

)

 

 

(354,569

)

 

 

(323,258

)

Gain on disposal of businesses

 

 

 

 

 

 

 

 

 

 

242

 

Gain on asset sales

 

28,746

 

 

 

767

 

 

 

43,442

 

 

 

9,188

 

Operating income

 

77,103

 

 

 

28,880

 

 

 

230,865

 

 

 

134,938

 

Other income, net

 

4,817

 

 

 

9,199

 

 

 

7,721

 

 

 

19,765

 

Interest income

 

2,311

 

 

 

1,427

 

 

 

7,260

 

 

 

4,421

 

Interest expense

 

(20,899

)

 

 

(15,677

)

 

 

(62,359

)

 

 

(38,126

)

Income from continuing operations before income taxes and equity earnings

 

63,332

 

 

 

23,829

 

 

 

183,487

 

 

 

120,998

 

Income tax (expense) benefit

 

(13,017

)

 

 

34,155

 

 

 

(40,604

)

 

 

21,497

 

Equity method earnings

 

5,342

 

 

 

300

 

 

 

11,508

 

 

 

4,028

 

Income from continuing operations

 

55,657

 

 

 

58,284

 

 

 

154,391

 

 

 

146,523

 

Loss from discontinued operations, net of income taxes

 

(1,672

)

 

 

(11,704

)

 

 

(27,616

)

 

 

(48,129

)

Net income

 

53,985

 

 

 

46,580

 

 

 

126,775

 

 

 

98,394

 

Less: Net income attributable to noncontrolling interests

 

(8,693

)

 

 

(6,743

)

 

 

(25,049

)

 

 

(18,679

)

Net income attributable to Dole plc

$

45,292

 

 

$

39,837

 

 

$

101,726

 

 

$

79,715

 

 

 

 

 

 

 

 

 

Income (loss) per share - basic:

 

 

 

 

 

 

 

Continuing operations

$

0.50

 

 

$

0.54

 

 

$

1.36

 

 

$

1.35

 

Discontinued operations

 

(0.02

)

 

 

(0.12

)

 

 

(0.29

)

 

 

(0.51

)

Net income per share attributable to Dole plc - basic

$

0.48

 

 

$

0.42

 

 

$

1.07

 

 

$

0.84

 

 

 

 

 

 

 

 

 

Income (loss) per share - diluted:

 

 

 

 

 

 

 

Continuing operations

$

0.50

 

 

$

0.54

 

 

$

1.36

 

 

$

1.35

 

Discontinued operations

 

(0.02

)

 

 

(0.12

)

 

 

(0.29

)

 

 

(0.51

)

Net income per share attributable to Dole plc - diluted

$

0.48

 

 

$

0.42

 

 

$

1.07

 

 

$

0.84

 

 

 

 

 

 

 

 

 

Weighted-average shares:

 

 

 

 

 

 

 

Basic

 

94,929

 

 

 

94,891

 

 

 

94,912

 

 

 

94,882

 

Diluted

 

95,148

 

 

 

94,908

 

 

 

95,094

 

 

 

94,910

 

Consolidated Balance Sheets - Unaudited

 

September 30, 2023

 

December 31, 2022

ASSETS

(U.S. Dollars and shares in thousands)

Cash and cash equivalents

$

217,523

 

 

$

228,840

 

Short-term investments

 

5,735

 

 

 

5,367

 

Trade receivables, net of allowances for credit losses of $22,498 and $18,001, respectively

 

575,205

 

 

 

610,384

 

Grower advance receivables, net of allowances for credit losses of $20,946 and $15,817, respectively

 

124,981

 

 

 

106,864

 

Other receivables, net of allowances for credit losses of $13,733 and $14,538, respectively

 

114,513

 

 

 

132,947

 

Inventories, net of allowances of $3,889 and $4,186, respectively

 

366,718

 

 

 

394,150

 

Prepaid expenses

 

59,709

 

 

 

48,995

 

Other current assets

 

33,303

 

 

 

15,034

 

Fresh Vegetables current assets held for sale

 

414,222

 

 

 

62,252

 

Other assets held for sale

 

10,318

 

 

 

645

 

Total current assets

 

1,922,227

 

 

 

1,605,478

 

Long-term investments

 

15,468

 

 

 

16,498

 

Investments in unconsolidated affiliates

 

127,429

 

 

 

124,234

 

Actively marketed property

 

13,781

 

 

 

31,007

 

Property, plant and equipment, net of accumulated depreciation of $414,698 and $375,721, respectively

 

1,085,778

 

 

 

1,116,124

 

Operating lease right-of-use assets

 

312,608

 

 

 

293,658

 

Goodwill

 

500,892

 

 

 

497,453

 

DOLE brand

 

306,280

 

 

 

306,280

 

Other intangible assets, net of accumulated amortization of $127,462 and $120,315, respectively

 

43,351

 

 

 

50,990

 

Fresh Vegetables non-current assets held for sale

 

 

 

 

343,828

 

Other assets

 

139,598

 

 

 

142,180

 

Deferred tax assets, net

 

70,263

 

 

 

64,112

 

Total assets

$

4,537,675

 

 

$

4,591,842

 

LIABILITIES AND EQUITY

 

 

 

Accounts payable

$

619,914

 

 

$

640,620

 

Income taxes payable

 

33,773

 

 

 

11,558

 

Accrued liabilities

 

380,196

 

 

 

381,688

 

Bank overdrafts

 

13,772

 

 

 

8,623

 

Current portion of long-term debt, net

 

255,953

 

 

 

97,435

 

Current maturities of operating leases

 

59,702

 

 

 

57,372

 

Payroll and other tax

 

23,811

 

 

 

27,187

 

Contingent consideration

 

663

 

 

 

1,791

 

Pension and other postretirement benefits

 

15,878

 

 

 

17,287

 

Fresh Vegetables current liabilities held for sale

 

294,588

 

 

 

199,255

 

Dividends payable and other current liabilities

 

21,994

 

 

 

17,698

 

Total current liabilities

 

1,720,244

 

 

 

1,460,514

 

Long-term debt, net

 

859,677

 

 

 

1,127,321

 

Operating leases, less current maturities

 

262,160

 

 

 

246,723

 

Deferred tax liabilities, net

 

112,333

 

 

 

118,403

 

Income taxes payable, less current portion

 

16,921

 

 

 

30,458

 

Contingent consideration, less current portion

 

7,542

 

 

 

5,022

 

Pension and other postretirement benefits, less current portion

 

117,946

 

 

 

124,646

 

Fresh Vegetables non-current liabilities held for sale

 

 

 

 

116,380

 

Other long-term liabilities

 

43,906

 

 

 

43,390

 

Total liabilities

$

3,140,729

 

 

$

3,272,857

 

Redeemable noncontrolling interests

 

34,182

 

 

 

32,311

 

Stockholders’ equity:

 

 

 

Common stock — $0.01 par value; 300,000 shares authorized and 94,929 and 94,899 shares outstanding as of September 30, 2023 and December 31, 2022

 

949

 

 

 

949

 

Additional paid-in capital

 

796,290

 

 

 

795,063

 

Retained earnings

 

547,912

 

 

 

469,249

 

Accumulated other comprehensive loss

 

(112,967

)

 

 

(104,133

)

Total equity attributable to Dole plc

 

1,232,184

 

 

 

1,161,128

 

Equity attributable to noncontrolling interests

 

130,580

 

 

 

125,546

 

Total equity

 

1,362,764

 

 

 

1,286,674

 

Total liabilities, redeemable noncontrolling interests and equity

$

4,537,675

 

 

$

4,591,842

 

Consolidated Statements of Cash Flows - Unaudited

 

Nine Months Ended

 

September 30, 2023

 

September 30, 2022

Operating Activities

(U.S. Dollars in thousands)

Net income

$

126,775

 

 

$

98,394

 

Loss from discontinued operations, net of taxes

 

27,616

 

 

 

48,129

 

Income from continuing operations

 

154,391

 

 

 

146,523

 

Adjustments to reconcile income from continuing operations to net cash provided by operating activities - continuing operations:

 

 

 

Depreciation and amortization

 

76,908

 

 

 

81,792

 

Incremental charges on biological assets related to the acquisition of Legacy Dole

 

 

 

 

40,464

 

Net (gain) on sale of assets and asset write-offs

 

(43,506

)

 

 

(9,188

)

Stock-based compensation expense

 

4,381

 

 

 

3,118

 

Equity method earnings

 

(11,508

)

 

 

(4,028

)

Amortization of debt discounts and debt issuance costs

 

4,788

 

 

 

4,546

 

Deferred tax (benefit)

 

(11,747

)

 

 

(12,537

)

Pension and other postretirement benefit plan expense

 

4,160

 

 

 

482

 

Dividends received from equity method investments

 

6,350

 

 

 

7,632

 

Other

 

(6,118

)

 

 

(2,277

)

Changes in operating assets and liabilities:

 

 

 

Receivables, net of allowances

 

13,858

 

 

 

(9,494

)

Inventories

 

26,642

 

 

 

(52,022

)

Prepaids, accrued and other current and long-term assets and liabilities

 

(61,465

)

 

 

(11,935

)

Net cash provided by operating activities - continuing operations

 

157,134

 

 

 

183,076

 

Investing activities

 

 

 

Sales of assets

 

64,103

 

 

 

27,764

 

Capital expenditures

 

(51,334

)

 

 

(58,555

)

Acquisitions, net of cash acquired

 

(262

)

 

 

(4,886

)

Insurance proceeds

 

1,850

 

 

 

2,278

 

Purchases of investments

 

(1,153

)

 

 

(414

)

Sales (purchases) of unconsolidated affiliates

 

1,498

 

 

 

(801

)

Other

 

(127

)

 

 

25

 

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

 

14,575

 

 

 

(34,589

)

Financing activities

 

 

 

Proceeds from borrowings and overdrafts

 

1,190,596

 

 

 

1,008,423

 

Repayments on borrowings and overdrafts

 

(1,300,083

)

 

 

(1,050,928

)

Payment of debt issuance costs

 

 

 

 

(265

)

Dividends paid to shareholders

 

(22,873

)

 

 

(22,770

)

Dividends paid to noncontrolling interests

 

(24,824

)

 

 

(20,981

)

Other noncontrolling interest activity, net

 

(482

)

 

 

 

Payment of contingent consideration

 

(1,169

)

 

 

(2,451

)

Net cash used in financing activities - continuing operations

 

(158,835

)

 

 

(88,972

)

Effect of foreign exchange rate changes on cash

 

(1,716

)

 

 

(19,052

)

Net cash used in operating activities - discontinued operations

 

(15,772

)

 

 

(61,521

)

Net cash used in investing activities - discontinued operations

 

(6,703

)

 

 

(8,027

)

Cash used in discontinued operations, net

 

(22,475

)

 

 

(69,548

)

(Decrease) in cash and cash equivalents

 

(11,317

)

 

 

(29,085

)

Cash and cash equivalents at beginning of period

 

228,840

 

 

 

250,561

 

Cash and cash equivalents at end of period

$

217,523

 

 

$

221,476

 

Supplemental cash flow information:

 

 

 

Income tax payments, net of refunds

$

(49,142

)

 

$

(39,628

)

Interest payments on borrowings

$

(62,771

)

 

$

(39,703

)

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

 

Nine Months Ended

 

September 30,
2023

 

September 30,
2022

 

September 30,
2023

 

September 30,
2022

 

(U.S. Dollars in thousands)

Net income (Reported GAAP)

$

53,985

 

 

$

46,580

 

 

$

126,775

 

 

$

98,394

 

Loss from discontinued operations, net of income taxes

 

1,672

 

 

 

11,704

 

 

 

27,616

 

 

 

48,129

 

Income from continuing operations (Reported GAAP)

 

55,657

 

 

 

58,284

 

 

 

154,391

 

 

 

146,523

 

Income tax expense (benefit)

 

13,017

 

 

 

(34,155

)

 

 

40,604

 

 

 

(21,497

)

Interest expense

 

20,899

 

 

 

15,677

 

 

 

62,359

 

 

 

38,126

 

Mark to market (gains) losses

 

(4,783

)

 

 

2,310

 

 

 

(2,926

)

 

 

(5,819

)

(Gain) on asset sales

 

(28,802

)

 

 

(530

)

 

 

(43,356

)

 

 

(8,346

)

Incremental charges on biological assets related to the acquisition of Legacy Dole

 

 

 

 

5,520

 

 

 

 

 

 

40,464

 

Cyber-related incident

 

 

 

 

 

 

 

5,321

 

 

 

 

Other items 4

 

222

 

 

 

(532

)

 

 

1,085

 

 

 

(1,284

)

Adjustments from equity method investments

 

2,160

 

 

 

1,603

 

 

 

6,405

 

 

 

4,926

 

Adjusted EBIT (Non-GAAP)

 

58,370

 

 

 

48,177

 

 

 

223,883

 

 

 

193,093

 

Depreciation

 

21,737

 

 

 

25,315

 

 

 

69,182

 

 

 

73,544

 

Amortization of intangible assets

 

2,536

 

 

 

2,633

 

 

 

7,726

 

 

 

8,248

 

Depreciation and amortization adjustments from equity method investments

 

2,550

 

 

 

3,073

 

 

 

7,470

 

 

 

7,998

 

Adjusted EBITDA (Non-GAAP)

$

85,193

 

 

$

79,198

 

 

$

308,261

 

 

$

282,883

 

____________________

4 For the three months ended September 30, 2023, other items is primarily comprised of $0.2 million of asset writedowns, net of insurance proceeds. For the three months ended September 30, 2022, other items is primarily comprised of $1.0 million in legal cost adjustments, partially offset by $0.5 million of asset writedowns, net of insurance proceeds. For the nine months ended September 30, 2023, other items is primarily comprised of $1.1 million of asset writedowns, net of insurance proceeds. For the nine months ended September 30, 2022, other items is primarily comprised of $1.0 million in legal cost adjustments and $0.3 million in gains on disposal of a business.

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

 

Nine Months Ended

 

September 30,
2023

 

September 30,
2022

 

September 30,
2023

 

September 30,
2022

 

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

Net income attributable to Dole plc (Reported GAAP)

$

45,292

 

 

$

39,837

 

 

$

101,726

 

 

$

79,715

 

Loss from discontinued operations, net of income taxes

 

1,672

 

 

 

11,704

 

 

 

27,616

 

 

 

48,129

 

Income from continuing operations attributable to Dole plc

 

46,964

 

 

 

51,541

 

 

 

129,342

 

 

 

127,844

 

Adjustments:

 

 

 

 

 

 

 

Amortization of intangible assets

 

2,536

 

 

 

2,633

 

 

 

7,726

 

 

 

8,248

 

Mark to market (gains) losses

 

(4,783

)

 

 

2,310

 

 

 

(2,926

)

 

 

(5,819

)

(Gain) on asset sales

 

(28,802

)

 

 

(530

)

 

 

(43,356

)

 

 

(8,346

)

Incremental charges on biological assets related to the acquisition of Legacy Dole

 

 

 

 

5,520

 

 

 

 

 

 

40,464

 

Cyber-related incident

 

 

 

 

 

 

 

5,321

 

 

 

 

Other items 5

 

222

 

 

 

(532

)

 

 

1,085

 

 

 

(1,284

)

Adjustments from equity method investments

 

610

 

 

 

628

 

 

 

1,352

 

 

 

1,918

 

Income tax on items above and discrete tax items

 

6,464

 

 

 

(34,501

)

 

 

6,952

 

 

 

(41,628

)

NCI impact on items above

 

(645

)

 

 

(878

)

 

 

(2,274

)

 

 

(2,289

)

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

$

22,566

 

 

$

26,191

 

 

$

103,222

 

 

$

119,108

 

 

 

 

 

 

 

 

 

Adjusted earnings per share – basic (Non-GAAP)

$

0.24

 

 

$

0.28

 

 

$

1.09

 

 

$

1.26

 

Adjusted earnings per share – diluted (Non-GAAP)

$

0.24

 

 

$

0.28

 

 

$

1.09

 

 

$

1.25

 

Weighted average shares outstanding – basic

 

94,929

 

 

 

94,891

 

 

 

94,912

 

 

 

94,882

 

Weighted average shares outstanding – diluted

 

95,148

 

 

 

94,908

 

 

 

95,094

 

 

 

94,910

 

____________________

5 For the three months ended September 30, 2023, other items is primarily comprised of $0.2 million of asset writedowns, net of insurance proceeds. For the three months ended September 30, 2022, other items is primarily comprised of $1.0 million in legal cost adjustments, partially offset by $0.5 million of asset writedowns, net of insurance proceeds. For the nine months ended September 30, 2023, other items is primarily comprised of $1.1 million of asset writedowns, net of insurance proceeds. For the nine months ended September 30, 2022, other items is primarily comprised of $1.0 million in legal cost adjustments and $0.3 million in gains on disposal of a business.

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 September 30, 2023

(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)

$

2,042,672

 

(1,876,292

)

166,380

 

8.1

%

(118,023

)

28,746

 

$

77,103

 

Loss from discontinued operations, net of income taxes

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

 

 

2,536

 

 

 

2,536

 

Mark to market (gains) losses

 

 

(1,113

)

(1,113

)

 

 

 

(1,113

)

(Gain) on asset sales

 

 

 

 

 

(28,802

)

 

(28,802

)

Cyber-related incident

 

 

 

 

 

 

 

 

Other items

 

 

222

 

222

 

 

 

 

222

 

Adjustments from equity method investments

 

 

 

 

 

 

 

 

Income tax on items above and discrete tax items

 

 

 

 

 

 

 

 

NCI impact on items above

 

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

2,042,672

 

(1,877,183

)

165,489

 

8.1

%

(115,487

)

(56

)

$

49,946

 

 

Three Months Ended September 30, 2022

(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)

$

1,960,695

 

(1,829,233

)

131,462

 

6.7

%

(103,349

)

767

 

$

28,880

 

Loss from discontinued operations, net of income taxes

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

 

 

2,633

 

 

 

2,633

 

Mark to market (gains) losses

 

 

7,729

 

7,729

 

 

 

 

7,729

 

(Gain) on asset sales

 

 

 

 

 

(530

)

 

(530

)

Incremental charges on biological assets related to the acquisition of Legacy Dole

 

 

5,520

 

5,520

 

 

 

 

5,520

 

Other items

 

 

509

 

509

 

(1,041

)

 

 

(532

)

Adjustments from equity method investments

 

 

 

 

 

 

 

 

Income tax on items above and discrete tax items

 

 

 

 

 

 

 

 

NCI impact on items above

 

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

1,960,695

 

(1,815,475

)

145,220

 

7.4

%

(101,757

)

237

 

$

43,700

 

____________________

6 Other operating charges for the three months ended September 30, 2023 is comprised of gains on asset sales of $28.7 million, as reported on the Dole plc GAAP Consolidated Statements of Operations.

7 Other operating charges for the three months ended September 30, 2022 is comprised of gains on asset sales of $0.8 million, as reported on the Dole plc the GAAP Consolidated Statements of Operations.

 

Three Months Ended September 30, 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)

$

4,817

 

2,311

 

(20,899

)

(13,017

)

5,342

 

55,657

 

$

(1,672

)

Loss from discontinued operations, net of income taxes

 

 

 

 

 

 

 

 

1,672

 

Amortization of intangible assets

 

 

 

 

 

 

2,536

 

 

 

Mark to market (gains) losses

 

(3,670

)

 

 

 

 

(4,783

)

 

 

(Gain) on asset sales

 

 

 

 

 

 

(28,802

)

 

 

Cyber-related incident

 

 

 

 

 

 

 

 

 

Other items

 

 

 

 

 

 

222

 

 

 

Adjustments from equity method investments

 

 

 

 

 

610

 

610

 

 

 

Income tax on items above and discrete tax items

 

 

 

 

6,603

 

(139

)

6,464

 

 

 

NCI impact on items above

 

 

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

1,147

 

2,311

 

(20,899

)

(6,414

)

5,813

 

31,904

 

$

 

 

Three Months Ended September 30, 2022

(U.S. Dollars in thousands)

 

Other
income, net

Interest
income

Interest
expense

Income tax
benefit
(expense)

Equity
method
earnings

Income from
continuing
operations

Loss from
discontinued
operations, net
of income
taxes

Reported (GAAP)

$

9,199

 

1,427

 

(15,677

)

34,155

 

300

 

58,284

 

$

(11,704

)

Loss from discontinued operations, net of income taxes

 

 

 

 

 

 

 

 

11,704

 

Amortization of intangible assets

 

 

 

 

 

 

2,633

 

 

 

Mark to market (gains) losses

 

(5,419

)

 

 

 

 

2,310

 

 

 

(Gain) on asset sales

 

 

 

 

 

 

(530

)

 

 

Incremental charges on biological assets related to the acquisition of Legacy Dole

 

 

 

 

 

 

5,520

 

 

 

Other items

 

 

 

 

 

 

(532

)

 

 

Adjustments from equity method investments

 

 

 

 

 

628

 

628

 

 

 

Income tax on items above and discrete tax items

 

 

 

 

(34,400

)

(101

)

(34,501

)

 

 

NCI impact on items above

 

 

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

3,780

 

1,427

 

(15,677

)

(245

)

827

 

33,812

 

$

 

 

Three Months Ended September 30, 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)

$

53,985

 

$

(8,693

)

$

45,292

 

$

0.48

 

Loss from discontinued operations, net of income taxes

 

1,672

 

 

 

 

1,672

 

 

Amortization of intangible assets

 

2,536

 

 

 

 

2,536

 

Mark to market (gains) losses

 

(4,783

)

 

 

 

(4,783

)

(Gain) on asset sales

 

(28,802

)

 

 

 

(28,802

)

Cyber-related incident

 

 

 

 

 

 

Other items

 

222

 

 

 

 

222

 

Adjustments from equity method investments

 

610

 

 

 

 

610

 

Income tax on items above and discrete tax items

 

6,464

 

 

 

 

6,464

 

NCI impact on items above

 

 

 

(645

)

 

(645

)

Adjusted (Non-GAAP)

$

31,904

 

$

(9,338

)

$

22,566

 

$

0.24

 

 

 

 

 

 

Weighted average shares outstanding – diluted

 

95,148

 

 

 

 

 

Three Months Ended September 30, 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)

$

46,580

 

$

(6,743

)

$

39,837

 

$

0.42

 

Loss from discontinued operations, net of income taxes

 

11,704

 

 

 

 

11,704

 

 

Amortization of intangible assets

 

2,633

 

 

 

 

2,633

 

Mark to market (gains) losses

 

2,310

 

 

 

 

2,310

 

(Gain) on asset sales

 

(530

)

 

 

 

(530

)

Incremental charges on biological assets related to the acquisition of Legacy Dole

 

5,520

 

 

 

 

5,520

 

Other items

 

(532

)

 

 

 

(532

)

Adjustments from equity method investments

 

628

 

 

 

 

628

 

Income tax on items above and discrete tax items

 

(34,501

)

 

 

 

(34,501

)

NCI impact on items above

 

 

 

(878

)

 

(878

)

Adjusted (Non-GAAP)

$

33,812

 

$

(7,621

)

$

26,191

 

$

0.28

 

 

 

 

 

 

Weighted average shares outstanding – diluted

 

94,908

 

 

 

 

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.

 

Nine Months Ended September 30, 2023

(U.S. Dollars in thousands)

 

Revenues, net

Cost of sales

Gross profit

Gross
Margin %

Selling,
marketing,
general and
administrative
expenses

Other
operating
charges8

Operating
Income

Reported (GAAP)

$

6,173,013

 

(5,631,021

)

541,992

 

8.8

%

(354,569

)

43,442

 

$

230,865

 

Loss from discontinued operations, net of income taxes

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

 

 

7,726

 

 

 

7,726

 

Mark to market (gains) losses

 

 

(2,449

)

(2,449

)

 

 

 

(2,449

)

(Gain) on asset sales

 

 

 

 

 

(43,356

)

 

(43,356

)

Cyber-related incident

 

 

 

 

5,321

 

 

 

5,321

 

Other items

 

 

1,085

 

1,085

 

 

 

 

1,085

 

Adjustments from equity method investments

 

 

 

 

 

 

 

 

Income tax on items above and discrete tax items

 

 

 

 

 

 

 

 

NCI impact on items above

 

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

6,173,013

 

(5,632,385

)

540,628

 

8.8

%

(341,522

)

86

 

$

199,192

 

 

Nine Months Ended September 30, 2022

(U.S. Dollars in thousands)

 

Revenues, net

Cost of sales

Gross profit

Gross
Margin %

Selling,
marketing,
general and
administrative
expenses

Other
operating
charges9

Operating
Income

Reported (GAAP)

$

5,981,835

 

(5,533,069

)

448,766

 

7.5

%

(323,258

)

9,430

 

$

134,938

 

Loss from discontinued operations, net of income taxes

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

 

 

 

8,248

 

 

 

8,248

 

Mark to market (gains) losses

 

 

2,372

 

2,372

 

 

 

 

2,372

 

(Gain) on asset sales

 

 

 

 

 

(8,346

)

 

(8,346

)

Incremental charges on biological assets related to the acquisition of Legacy Dole

 

 

40,464

 

40,464

 

 

 

 

40,464

 

Other items

 

 

 

 

(1,015

)

(269

)

 

(1,284

)

Adjustments from equity method investments

 

 

 

 

 

 

 

 

Income tax on items above and discrete tax items

 

 

 

 

 

 

 

 

NCI impact on items above

 

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

5,981,835

 

(5,490,233

)

491,602

 

8.2

%

(316,025

)

815

 

$

176,392

 

____________________

8 Other operating charges for the six months ended September 30, 2023 is comprised of gains on asset sales of $43.4 million, as reported on the Dole plc GAAP Consolidated Statements of Operations.

9 Other operating charges for the nine months ended September 30, 2022 is comprised of gains on asset sales of $9.2 million and a gain on disposal of businesses of $0.2 million, as reported on the Dole plc GAAP Consolidated Statements of Operations.

 

Nine Months Ended September 30, 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)

$

7,721

 

7,260

 

(62,359

)

(40,604

)

11,508

 

154,391

 

$

(27,616

)

Loss from discontinued operations, net of income taxes

 

 

 

 

 

 

 

 

27,616

 

Amortization of intangible assets

 

 

 

 

 

 

7,726

 

 

 

Mark to market (gains) losses

 

(477

)

 

 

 

 

(2,926

)

 

 

(Gain) on asset sales

 

 

 

 

 

 

(43,356

)

 

 

Cyber-related incident

 

 

 

 

 

 

5,321

 

 

 

Other items

 

 

 

 

 

 

1,085

 

 

 

Adjustments from equity method investments

 

 

 

 

 

1,352

 

1,352

 

 

 

Income tax on items above and discrete tax items

 

 

 

 

7,253

 

(301

)

6,952

 

 

 

NCI impact on items above

 

 

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

7,244

 

7,260

 

(62,359

)

(33,351

)

12,559

 

130,545

 

$

 

 

Nine Months Ended September 30, 2022

(U.S. Dollars in thousands)

 

Other
income, net

Interest
income

Interest
expense

Income tax
benefit
(expense)

Equity
method
earnings

Income from
continuing
operations

Loss from
discontinued
operations, net
of income
taxes

Reported (GAAP)

$

19,765

 

4,421

 

(38,126

)

21,497

 

4,028

 

146,523

 

$

(48,129

)

Loss from discontinued operations, net of income taxes

 

 

 

 

 

 

 

 

48,129

 

Amortization of intangible assets

 

 

 

 

 

 

8,248

 

 

 

Mark to market (gains) losses

 

(8,191

)

 

 

 

 

(5,819

)

 

 

(Gain) on asset sales

 

 

 

 

 

 

(8,346

)

 

 

Incremental charges on biological assets related to the acquisition of Legacy Dole

 

 

 

 

 

 

40,464

 

 

 

Other items

 

 

 

 

 

 

(1,284

)

 

 

Adjustments from equity method investments

 

 

 

 

 

1,918

 

1,918

 

 

 

Income tax on items above and discrete tax items

 

 

 

 

(41,320

)

(308

)

(41,628

)

 

 

NCI impact on items above

 

 

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

11,574

 

4,421

 

(38,126

)

(19,823

)

5,638

 

140,076

 

$

 

 

Nine Months Ended September 30, 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)

$

126,775

 

$

(25,049

)

$

101,726

 

$

1.07

 

Loss from discontinued operations, net of income taxes

 

27,616

 

 

 

 

27,616

 

 

Amortization of intangible assets

 

7,726

 

 

 

 

7,726

 

Mark to market (gains) losses

 

(2,926

)

 

 

 

(2,926

)

(Gain) on asset sales

 

(43,356

)

 

 

 

(43,356

)

Cyber-related incident

 

5,321

 

 

 

 

5,321

 

Other items

 

1,085

 

 

 

 

1,085

 

Adjustments from equity method investments

 

1,352

 

 

 

 

1,352

 

Income tax on items above and discrete tax items

 

6,952

 

 

 

 

6,952

 

NCI impact on items above

 

 

 

(2,274

)

 

(2,274

)

Adjusted (Non-GAAP)

$

130,545

 

$

(27,323

)

$

103,222

 

$

1.09

 

 

 

 

 

 

Weighted average shares outstanding – diluted

 

95,094

 

 

 

 

 

Nine Months Ended September 30, 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)

$

98,394

 

$

(18,679

)

$

79,715

 

$

0.84

 

Loss from discontinued operations, net of income taxes

 

48,129

 

 

 

 

48,129

 

 

Amortization of intangible assets

 

8,248

 

 

 

 

8,248

 

Mark to market (gains) losses

 

(5,819

)

 

 

 

(5,819

)

(Gain) on asset sales

 

(8,346

)

 

 

 

(8,346

)

Incremental charges on biological assets related to the acquisition of Legacy Dole

 

40,464

 

 

 

 

40,464

 

Other items

 

(1,284

)

 

 

 

(1,284

)

Adjustments from equity method investments

 

1,918

 

 

 

 

1,918

 

Income tax on items above and discrete tax items

 

(41,628

)

 

 

 

(41,628

)

NCI impact on items above

 

 

 

(2,289

)

 

(2,289

)

Adjusted (Non-GAAP)

$

140,076

 

$

(20,968

)

$

119,108

 

$

1.25

 

 

 

 

 

 

Weighted average shares outstanding – diluted

 

94,910

 

 

 

 

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

 

Revenue for the Three Months Ended

 

September 30,
2022

 

Impact of
Foreign
Currency
Translation

 

Impact of
Acquisitions
and Divestitures

 

Like-for-like
Increase
(Decrease)

 

September 30,
2023

 

(U.S. Dollars in thousands)

Fresh Fruit

$

751,348

 

 

$

 

 

$

 

 

$

(2,138

)

 

$

749,210

 

Diversified Fresh Produce - EMEA

 

759,964

 

 

 

54,373

 

 

 

5,540

 

 

 

36,474

 

 

 

856,351

 

Diversified Fresh Produce - Americas & ROW

 

479,839

 

 

 

(1,491

)

 

 

 

 

 

(8,337

)

 

 

470,011

 

Intersegment

 

(30,456

)

 

 

 

 

 

 

 

 

(2,444

)

 

 

(32,900

)

Total

$

1,960,695

 

 

$

52,882

 

 

$

5,540

 

 

$

23,555

 

 

$

2,042,672

 

 

Adjusted EBITDA for the Three Months Ended

 

September 30,
2022

 

Impact of
Foreign
Currency
Translation

 

Impact of
Acquisitions
and Divestitures

 

Like-for-like
Increase
(Decrease)

 

September 30,
2023

 

(U.S. Dollars in thousands)

Fresh Fruit

$

49,382

 

 

$

(375

)

 

$

 

 

$

(3,896

)

 

$

45,111

 

Diversified Fresh Produce - EMEA

 

30,686

 

 

 

2,013

 

 

 

187

 

 

 

2,037

 

 

 

34,923

 

Diversified Fresh Produce - Americas & ROW

 

(870

)

 

 

(115

)

 

 

932

 

 

 

5,212

 

 

 

5,159

 

Total

$

79,198

 

 

$

1,523

 

 

$

1,119

 

 

$

3,353

 

 

$

85,193

 

 

Revenue for the Nine Months Ended

 

September 30,
2022

 

Impact of
Foreign
Currency
Translation

 

Impact of
Acquisitions
and Divestitures

 

Like-for-like
Increase
(Decrease)

 

September 30,
2023

 

(U.S. Dollars in thousands)

Fresh Fruit

$

2,306,982

 

 

$

 

 

$

 

 

$

80,181

 

 

$

2,387,163

 

Diversified Fresh Produce - EMEA

 

2,400,967

 

 

 

(188

)

 

 

23,642

 

 

 

145,659

 

 

 

2,570,080

 

Diversified Fresh Produce - Americas & ROW

 

1,391,731

 

 

 

(6,524

)

 

 

 

 

 

(74,800

)

 

 

1,310,407

 

Intersegment

 

(117,845

)

 

 

 

 

 

 

 

 

23,208

 

 

 

(94,637

)

Total

$

5,981,835

 

 

$

(6,712

)

 

$

23,642

 

 

$

174,248

 

 

$

6,173,013

 

 

Adjusted EBITDA for the Nine Months Ended

 

September 30,
2022

 

Impact of
Foreign
Currency
Translation

 

Impact of
Acquisitions
and Divestitures

 

Like-for-like
Increase
(Decrease)

 

September 30,
2023

 

(U.S. Dollars in thousands)

Fresh Fruit

$

166,087

 

 

$

(330

)

 

$

 

 

$

14,381

 

 

$

180,138

 

Diversified Fresh Produce - EMEA

 

88,397

 

 

 

212

 

 

 

1,458

 

 

 

10,865

 

 

 

100,932

 

Diversified Fresh Produce - Americas & ROW

 

28,399

 

 

 

(245

)

 

 

1,498

 

 

 

(2,461

)

 

 

27,191

 

Total

$

282,883

 

 

$

(363

)

 

$

2,956

 

 

$

22,785

 

 

$

308,261

 

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 September 30, 2023 is presented below. Net Debt as of September 30, 2023 was $0.9 billion.

 

September 30, 2023

 

December 31, 2022

 

(U.S. Dollars in thousands)

Cash and cash equivalents (Reported GAAP)

 

217,523

 

 

 

228,840

 

Debt (Reported GAAP):

 

 

 

Long-term debt, net

 

(859,677

)

 

 

(1,127,321

)

Current maturities

 

(255,953

)

 

 

(97,435

)

Bank overdrafts

 

(13,772

)

 

 

(8,623

)

Total debt, net

 

(1,129,402

)

 

 

(1,233,379

)

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

 

(15,233

)

 

 

(17,874

)

Total gross debt

 

(1,144,635

)

 

 

(1,251,253

)

Net Debt (Non-GAAP)

$

(927,112

)

 

$

(1,022,413

)

Free Cash Flow from Continuing Operations Reconciliation

 

Nine Months Ended

 

September 30,
2023

 

September 30,
2022

 

(U.S. Dollars in thousands)

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

 

157,134

 

 

 

183,076

 

Less: Capital expenditures (Reported GAAP)10

 

(51,334

)

 

 

(58,555

)

Free cash flow from continuing operations (Non-GAAP)

$

105,800

 

 

$

124,521

 

____________________

10 Capital expenditures do not include amounts attributable to discontinued operations.

Supplemental Consolidated Income Statement by Quarter - for the Year Ended December 31, 2022 - Unaudited

 

Three Months Ended

 

Year Ended

 

March 31,
2022

 

June 30,
2022

 

September 30,
2022

 

December 31,
2022

 

December 31,
2022

 

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

Revenues, net

$

1,970,231

 

 

$

2,050,909

 

 

$

1,960,695

 

 

$

2,042,568

 

 

$

8,024,403

 

Cost of sales

 

(1,818,436

)

 

 

(1,885,400

)

 

 

(1,829,233

)

 

 

(1,891,456

)

 

 

(7,424,525

)

Gross profit

 

151,795

 

 

 

165,509

 

 

 

131,462

 

 

 

151,112

 

 

 

599,878

 

Selling, marketing, general and administrative expenses

 

(109,544

)

 

 

(110,365

)

 

 

(103,349

)

 

 

(112,934

)

 

 

(436,192

)

Gain (loss) on disposal of businesses

 

242

 

 

 

 

 

 

 

 

 

(50

)

 

 

192

 

Impairment of property, plant and equipment

 

 

 

 

 

 

 

 

 

 

(397

)

 

 

(397

)

Gain on asset sales

 

495

 

 

 

7,926

 

 

 

767

 

 

 

2,596

 

 

 

11,784

 

Operating income

 

42,988

 

 

 

63,070

 

 

 

28,880

 

 

 

40,327

 

 

 

175,265

 

Other income (expense), net

 

2,464

 

 

 

8,102

 

 

 

9,199

 

 

 

(9,165

)

 

 

10,600

 

Interest income

 

1,584

 

 

 

1,410

 

 

 

1,427

 

 

 

1,986

 

 

 

6,407

 

Interest expense

 

(11,616

)

 

 

(10,833

)

 

 

(15,677

)

 

 

(18,245

)

 

 

(56,371

)

Income from continuing operations before income taxes and equity earnings

 

35,420

 

 

 

61,749

 

 

 

23,829

 

 

 

14,903

 

 

 

135,901

 

Income tax (expense) benefit

 

(7,358

)

 

 

(5,300

)

 

 

34,155

 

 

 

4,106

 

 

 

25,603

 

Equity method earnings

 

577

 

 

 

3,151

 

 

 

300

 

 

 

2,698

 

 

 

6,726

 

Income from continuing operations

 

28,639

 

 

 

59,600

 

 

 

58,284

 

 

 

21,707

 

 

 

168,230

 

Loss from discontinued operations, net of income taxes

 

(25,230

)

 

 

(11,195

)

 

 

(11,704

)

 

 

(8,318

)

 

 

(56,447

)

Net income

 

3,409

 

 

 

48,405

 

 

 

46,580

 

 

 

13,389

 

 

 

111,783

 

Less: Net income attributable to noncontrolling interests

 

(4,803

)

 

 

(7,133

)

 

 

(6,743

)

 

 

(6,608

)

 

 

(25,287

)

Net (loss) income attributable to Dole plc

$

(1,394

)

 

$

41,272

 

 

$

39,837

 

 

$

6,781

 

 

$

86,496

 

 

 

 

 

 

 

 

 

 

 

Income (loss) per share - basic:

 

 

 

 

 

 

 

 

 

Continuing operations

$

0.26

 

 

$

0.55

 

 

$

0.54

 

 

$

0.16

 

 

$

1.51

 

Discontinued operations

 

(0.27

)

 

 

(0.12

)

 

 

(0.12

)

 

 

(0.09

)

 

 

(0.60

)

Net income (loss) per share attributable to Dole plc - basic

$

(0.01

)

 

$

0.43

 

 

$

0.42

 

 

$

0.07

 

 

$

0.91

 

 

 

 

 

 

 

 

 

 

 

Income (loss) per share - diluted:

 

 

 

 

 

 

 

 

 

Continuing operations

$

0.26

 

 

$

0.55

 

 

$

0.54

 

 

$

0.16

 

 

$

1.51

 

Discontinued operations

 

(0.27

)

 

 

(0.12

)

 

 

(0.12

)

 

 

(0.09

)

 

 

(0.60

)

Net income (loss) per share attributable to Dole plc - diluted

$

(0.01

)

 

$

0.43

 

 

$

0.42

 

 

$

0.07

 

 

$

0.91

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares:

 

 

 

 

 

 

 

 

 

Basic

 

94,878

 

 

 

94,878

 

 

 

94,891

 

 

 

94,899

 

 

 

94,886

 

Diluted

 

94,909

 

 

 

94,913

 

 

 

94,908

 

 

 

94,928

 

 

 

94,914

 

Supplemental Reconciliation from Net Income to Adjusted EBITDA by Quarter - for the Year Ended December 31, 2022 - Unaudited

 

Three Months Ended

 

Year Ended

 

March 31,
2022

 

June 30,
2022

 

September 30,
2022

 

December 31,
2022

 

December 31,
2022

 

(U.S. Dollars in thousands)

Net income (Reported GAAP)

$

3,409

 

 

$

48,405

 

 

$

46,580

 

 

$

13,389

 

 

$

111,783

 

Loss from discontinued operations, net of income taxes

 

25,230

 

 

 

11,195

 

 

 

11,704

 

 

 

8,318

 

 

 

56,447

 

Income from continuing operations (Reported GAAP)

 

28,639

 

 

 

59,600

 

 

 

58,284

 

 

 

21,707

 

 

 

168,230

 

Income tax expense (benefit)

 

7,358

 

 

 

5,300

 

 

 

(34,155

)

 

 

(4,106

)

 

 

(25,603

)

Interest expense

 

11,616

 

 

 

10,833

 

 

 

15,677

 

 

 

18,245

 

 

 

56,371

 

Mark to market losses (gains)

 

(1,138

)

 

 

(6,991

)

 

 

2,310

 

 

 

8,868

 

 

 

3,049

 

(Gain) on asset sales

 

 

 

 

(7,816

)

 

 

(530

)

 

 

(1,970

)

 

 

(10,316

)

Impairment on property, plant and equipment

 

 

 

 

 

 

 

 

 

 

397

 

 

 

397

 

Incremental charges on biological assets from the Acquisition

 

17,513

 

 

 

17,431

 

 

 

5,520

 

 

 

681

 

 

 

41,145

 

Other items

 

(868

)

 

 

116

 

 

 

(532

)

 

 

656

 

 

 

(628

)

Adjustments from equity method investments

 

1,128

 

 

 

2,195

 

 

 

1,603

 

 

 

2,614

 

 

 

7,540

 

Adjusted EBIT (Non-GAAP)

 

64,248

 

 

 

80,668

 

 

 

48,177

 

 

 

47,092

 

 

 

240,185

 

Depreciation

 

22,533

 

 

 

25,696

 

 

 

25,315

 

 

 

25,159

 

 

 

98,703

 

Amortization of intangible assets

 

2,842

 

 

 

2,773

 

 

 

2,633

 

 

 

2,645

 

 

 

10,893

 

Depreciation and amortization adjustments from equity method investments

 

2,260

 

 

 

2,666

 

 

 

3,073

 

 

 

2,616

 

 

 

10,615

 

Adjusted EBITDA (Non-GAAP)

$

91,883

 

 

$

111,803

 

 

$

79,198

 

 

$

77,512

 

 

$

360,396

 

Supplemental Reconciliation from Net Income attributable to Dole plc to Adjusted Net Income by Quarter - for the Year Ended December 31, 2022 - Unaudited

 

Three Months Ended

 

Year Ended

 

March 31,
2022

 

June 30,
2022

 

September 30,
2022

 

December 31,
2022

 

December 31,
2022

 

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

Net income (loss) attributable to Dole plc (Reported GAAP)

$

(1,394

)

 

$

41,272

 

 

$

39,837

 

 

$

6,781

 

 

$

86,496

 

Loss from discontinued operations, net of income taxes

 

25,230

 

 

 

11,195

 

 

 

11,704

 

 

 

8,318

 

 

 

56,447

 

Income from continuing operations attributable to Dole plc

 

23,836

 

 

 

52,467

 

 

 

51,541

 

 

 

15,099

 

 

 

142,943

 

Adjustments:

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

2,842

 

 

 

2,773

 

 

 

2,633

 

 

 

2,645

 

 

 

10,893

 

Mark to market (gains) losses

 

(1,138

)

 

 

(6,991

)

 

 

2,310

 

 

 

8,868

 

 

 

3,049

 

(Gain) on asset sales

 

 

 

 

(7,816

)

 

 

(530

)

 

 

(1,970

)

 

 

(10,316

)

Incremental charges on biological assets from the Acquisition

 

17,513

 

 

 

17,431

 

 

 

5,520

 

 

 

681

 

 

 

41,145

 

Other items

 

(868

)

 

 

116

 

 

 

(532

)

 

 

1,053

 

 

 

(231

)

Adjustments from equity method investments

 

678

 

 

 

612

 

 

 

628

 

 

 

662

 

 

 

2,580

 

Income tax on items above and discrete tax items

 

(1,931

)

 

 

(5,196

)

 

 

(34,501

)

 

 

(8,876

)

 

 

(50,504

)

NCI impact on items above

 

(458

)

 

 

(953

)

 

 

(878

)

 

 

(898

)

 

 

(3,187

)

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

$

40,474

 

 

$

52,443

 

 

$

26,191

 

 

$

17,264

 

 

$

136,372

 

 

 

 

 

 

 

 

 

 

 

Adjusted earnings per share – basic (Non-GAAP)

$

0.43

 

 

$

0.55

 

 

$

0.28

 

 

$

0.18

 

 

$

1.44

 

Adjusted earnings per share – diluted (Non-GAAP)

$

0.43

 

 

$

0.55

 

 

$

0.28

 

 

$

0.18

 

 

$

1.44

 

Weighted average shares outstanding – basic

 

94,878

 

 

 

94,878

 

 

 

94,891

 

 

 

94,899

 

 

 

94,886

 

Weighted average shares outstanding – diluted

 

94,909

 

 

 

94,913

 

 

 

94,908

 

 

 

94,928

 

 

 

94,914

 

Supplemental Selected Segmental Financial Information by Quarter - for the Year Ended December 31, 2022 - Unaudited

Revenue by Segment:

 

Three Months Ended

 

Year Ended

 

March 31,
2022

 

June 30,
2022

 

September 30,
2022

 

December 31,
2022

 

December 31,
2022

 

(U.S. Dollars in thousands)

Fresh Fruit

$

749,803

 

 

$

805,831

 

 

$

751,348

 

 

$

740,167

 

 

$

3,047,149

 

Diversified Fresh Produce - EMEA

 

791,155

 

 

 

849,848

 

 

 

759,964

 

 

 

751,594

 

 

 

3,152,561

 

Diversified Fresh Produce - Americas & ROW

 

463,692

 

 

 

448,200

 

 

 

479,839

 

 

 

573,936

 

 

 

1,965,667

 

Intersegment

 

(34,419

)

 

 

(52,970

)

 

 

(30,456

)

 

 

(23,129

)

 

 

(140,974

)

Total

$

1,970,231

 

 

$

2,050,909

 

 

$

1,960,695

 

 

$

2,042,568

 

 

$

8,024,403

 

Adjusted EBITDA by Segment:

 

Three Months Ended

 

Year Ended

 

March 31,
2022

 

June 30,
2022

 

September 30,
2022

 

December 31,
2022

 

December 31,
2022

 

(U.S. Dollars in thousands)

Fresh Fruit

$

60,397

 

 

$

56,308

 

 

$

49,382

 

 

$

39,460

 

 

$

205,547

 

Diversified Fresh Produce - EMEA

 

19,277

 

 

 

38,434

 

 

 

30,686

 

 

 

22,656

 

 

 

111,053

 

Diversified Fresh Produce - Americas & ROW

 

12,209

 

 

 

17,061

 

 

 

(870

)

 

 

15,396

 

 

 

43,796

 

Total

$

91,883

 

 

$

111,803

 

 

$

79,198

 

 

$

77,512

 

 

$

360,396

 

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 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 three and nine months ended September 30, 2023 and September 30, 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 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 three and nine months ended September 30, 2023 and September 30, 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 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 three and nine months ended September 30, 2023 and September 30, 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 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'23 results without taking unreasonable efforts.

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