Dole plc (NYSE: DOLE) ("Dole" or the "Group" or the "Company")
today released its financial results for the three months ended
March 31, 2023.
Highlights for the three months ended March 31, 2023:
- Announced in January 2023 our agreement to sell our Fresh
Vegetables division to Fresh Express, for gross proceeds of
approximately $293.0 million. Following this agreement, the results
of this division are reported separately as discontinued operations
in our first quarter financial statements
- First quarter Revenue of $2.0 billion, an increase of 1.0%
- First quarter Adjusted EBITDA1 of $100.4 million, an increase
of 9.3%
- First quarter Adjusted Net Income of $32.3 million and Adjusted
Diluted EPS of $0.34
Financial Highlights - Unaudited
Three Months Ended
March 31, 2023
March 31, 2022
(U.S. Dollars in millions, except
per share amounts)
Revenue
1,989
1,970
Income from continuing operations2
35.0
28.6
Net Income
20.5
3.4
Net Income (Loss) attributable to Dole
plc
14.2
(1.4
)
Diluted EPS from continuing operations
0.30
0.26
Diluted EPS
0.15
(0.01
)
Adjusted EBITDA1
100.4
91.9
Adjusted Net Income1
32.3
40.5
Adjusted Diluted EPS1
0.34
0.43
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 and Net Debt 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 included within the
condensed consolidated cash flows for all periods presented. Unless
otherwise noted, our discussion of our results included herein,
outlook and all supplementary tables, including non-GAAP financial
measures, are presented on a continuing operations basis.
Commenting on the results, Carl McCann, Executive Chairman,
said:
"We are pleased to have started the year strongly and to have
delivered Adjusted EBITDA growth in the first quarter.
During the quarter, we announced an agreement to sell our Fresh
Vegetables division to Fresh Express. We are continuing to work
through the regulatory process for the sale of this business.
We believe the Group is well-positioned for growth and continue
to target Adjusted EBITDA of $350.0 million for the full year."
Group Results - First Quarter
Revenue increased 1.0%, or $18.9 million, primarily due to
strong performance in the Fresh Fruit and Diversified EMEA
segments, offset partially by the Diversified Americas segment. On
a like-for-like basis3, revenue was 3.7%, or $72.8 million, ahead
of prior year.
Adjusted EBITDA increased 9.3%, or $8.5 million, primarily
driven by strong Fresh Fruit performance, offset partially by
headwinds in the Diversified Americas segment. On a like-for-like
basis, Adjusted EBITDA increased 9.9%, or $9.1 million.
Adjusted Net Income decreased $8.2 million, predominantly due to
higher interest expense. Adjusted Diluted EPS for the three months
ended March 31, 2023 was $0.34 compared to $0.43 in the prior
year.
_________________________
3 Like-for-like basis refers to the
measure excluding the impact of foreign currency translation
movements and acquisitions and divestitures.
Selected Segmental Financial Information (Unaudited)
Three Months Ended
March 31, 2023
March 31, 2022
(U.S. Dollars in thousands)
Revenue
Adjusted EBITDA
Revenue
Adjusted EBITDA
Fresh Fruit
$
798,910
$
69,211
$
749,803
$
60,397
Diversified Fresh Produce - EMEA
798,100
23,406
791,155
19,277
Diversified Fresh Produce - Americas &
ROW
422,751
7,770
463,692
12,209
Intersegment
(30,594
)
—
(34,419
)
—
Total
$
1,989,167
$
100,387
$
1,970,231
$
91,883
Fresh Fruit
Revenue increased 6.5%, or $49.1 million. Revenue was positively
impacted by higher worldwide pricing of bananas and pineapples, as
well as worldwide increases in volumes of bananas sold, partially
offset by lower volumes of pineapples sold.
Adjusted EBITDA increased 14.6%, or $8.8 million. Adjusted
EBITDA was positively impacted by strong revenue performance,
partially offset by higher fruit sourcing costs and higher costs of
shipping, packaging and handling.
Diversified Fresh Produce – EMEA
Revenue increased 0.9%, or $6.9 million, primarily driven by
inflation-justified price increases across the segment, offset
partially by an unfavorable impact of $53.4 million from foreign
currency translation, as a result of the strengthening of the U.S.
dollar against European currencies. On a like-for-like basis,
revenue was 7.3%, or $58.1 million, ahead of prior year.
Adjusted EBITDA increased 21.4%, or $4.1 million. On a
like-for-like basis, Adjusted EBITDA was 25.9%, or $4.9 million,
ahead of prior year, primarily driven by strong performance in the
U.K., an improved performance in South Africa and overall positive
performance across the segment.
Diversified Fresh Produce – Americas & ROW
Revenue decreased 8.8%, or $40.9 million, primarily driven by
timing differences for the Chilean cherry season, as well as a
challenging quarter for berries and grapes, partially offset by
continued strong performance in potatoes and onions in North
America.
Adjusted EBITDA decreased 36.4%, or $4.4 million, primarily due
to a challenging quarter for berries and grapes, partially offset
by strong performance in potatoes and onions.
Vegetables Transaction
On January 30, 2023, we entered into a Stock Purchase Agreement
(the “Agreement”) with Fresh Express Acquisitions LLC (“Fresh
Express”), a wholly owned subsidiary of Chiquita Holdings Limited,
pursuant to which Fresh Express has agreed to acquire our Fresh
Vegetables division for approximately $293.0 million in cash,
subject to certain adjustments set forth in the Agreement (the
“Vegetables Transaction”). The Vegetables Transaction is expected
to close after regulatory approvals are obtained, subject to the
satisfaction or waiver of customary closing conditions. As a result
of the agreement to sell the Fresh Vegetables division, its results
are reported separately as discontinued operations, net of income
taxes, in our condensed consolidated statements of operations for
all periods presented and its assets and liabilities are separately
presented in our condensed consolidated balance sheets as assets
and liabilities held for sale.
Cyber Incident
In February of 2023, Dole experienced a cybersecurity incident
identified as ransomware. Upon detecting the attack, the Company
promptly took steps to investigate and contain the threat,
retaining the services of leading third-party cybersecurity experts
and working with law enforcement. The incident had a limited impact
on our operations overall, however it was disruptive for our Fresh
Vegetables and Chilean businesses in particular. Direct costs
related to the incident were $10.5 million of which $4.8 million
related to continuing operations.
Capital Expenditures
Capital expenditures for the three months ended March 31, 2023
were $19.9 million, which included investments in farm renovations
and ongoing investments in IT, logistics and efficiency projects in
our warehouses and processing facilities. This amount also includes
$2.3 million of capital expenditures related to discontinued
operations.
Net Debt
Net Debt as of March 31, 2023 was $1.0 billion.
Outlook for Fiscal Year 2023 (forward-looking
statement)
The operating environment so far in 2023 continues to bring with
it both new opportunities and new challenges. We see signs of
improved logistical efficiencies in several areas, which is helping
to bring more stability after a period of severe supply chain
disruption.
We have also seen some unusual weather events, and as we
progress through the second quarter, we are closely monitoring the
impact of unprecedented rains this year in California, which
continue to impact the vegetable and berry crops in that
region.
We have continued to see positives for our business, with the
strengthening Euro relative to the US Dollar, more stable fuel
prices and continued signs of inflation moderating in certain
areas. However, we are also seeing headwinds with interest rates
remaining high and other unusual currency movements.
Overall, we believe our strong first quarter has put us in an
excellent position to deliver on our full year financial
targets.
Our business is well-positioned for growth, and while we remain
cautious given that the environment we operate in remains dynamic,
we continue to expect to deliver Adjusted EBITDA from continuing
operations of $350.0 million for full year 2023.
The above outlook includes non-GAAP financial measures. Please
refer to the appendix of this release for an explanation and
reconciliation of our historical non-GAAP financial measures used
in this release to comparable GAAP financial measures.
Dividend
On May 17, 2023, the Board of Directors of Dole plc declared a
cash dividend for the first quarter of 2023 of $0.08 per share,
payable on July 6, 2023 to shareholders of record on June 16, 2023.
A cash dividend of $0.08 per share was paid on April 21, 2023 for
the fourth quarter of 2022.
About Dole plc
A global leader in fresh produce, Dole plc produces, markets,
and distributes an extensive variety of fresh fruits and vegetables
sourced locally and from around the world. Dedicated and passionate
in exceeding our customers’ requirements in over 75 countries, our
goal is to make the world a healthier and a more sustainable
place.
Webcast and Conference Call Information
Dole plc will host a conference call and simultaneous webcast at
08:00 a.m. Eastern Time today to discuss the first quarter 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 8143610.
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
March 31, 2023
March 31, 2022
(U.S. Dollars and shares in
thousands, except per share amounts)
Revenues, net
$
1,989,167
$
1,970,231
Cost of sales
(1,810,128
)
(1,818,436
)
Gross profit
179,039
151,795
Selling, marketing, general and
administrative expenses
(120,879
)
(109,544
)
Gain on disposal of businesses
—
242
Gain on asset sales
3,973
495
Operating income
62,133
42,988
Other income, net
1,775
2,464
Interest income
2,309
1,584
Interest expense
(21,712
)
(11,616
)
Income from continuing operations before
income taxes and equity earnings
44,505
35,420
Income tax expense
(10,994
)
(7,358
)
Equity method earnings
1,478
577
Income from continuing operations
34,989
28,639
Loss from discontinued operations, net of
income taxes
(14,506
)
(25,230
)
Net income
20,483
3,409
Less: Net income attributable to
noncontrolling interests
(6,324
)
(4,803
)
Net income (loss) attributable to Dole
plc
$
14,159
$
(1,394
)
Income (loss) per share - basic:
Continuing operations
$
0.30
$
0.26
Discontinued operations
(0.15
)
(0.27
)
Net income (loss) per share attributable
to Dole plc - basic
$
0.15
$
(0.01
)
Income (loss) per share - diluted:
Continuing operations
$
0.30
$
0.26
Discontinued operations
(0.15
)
(0.27
)
Net income (loss) per share attributable
to Dole plc - diluted
$
0.15
$
(0.01
)
Weighted-average shares:
Basic
94,899
94,878
Diluted
95,024
94,909
Consolidated Balance Sheets - Unaudited
March 31, 2023
December 31, 2022
ASSETS
(U.S. Dollars and shares in
thousands)
Cash and cash equivalents
$
266,200
$
228,840
Short-term investments
5,584
5,367
Trade receivables, net of allowances for
credit losses of $21,702 and $18,001, respectively
634,785
610,384
Grower advance receivables, net of
allowances for credit losses of $16,462 and $15,817,
respectively
112,818
106,864
Other receivables, net of allowances for
credit losses of $14,377 and $14,538, respectively
124,292
132,947
Inventories, net of allowances of $9,760
and $4,186, respectively
405,553
394,150
Prepaid expenses
47,342
48,995
Other current assets
23,688
15,034
Fresh Vegetables current assets held for
sale
384,609
62,252
Other assets held for sale
10,784
645
Total current assets
2,015,655
1,605,478
Long-term investments
16,619
16,498
Investments in unconsolidated
affiliates
125,377
124,234
Actively marketed property
29,393
31,007
Property, plant and equipment, net of
accumulated depreciation of $401,111 and $375,721, respectively
1,105,179
1,116,124
Operating lease right-of-use assets
317,218
293,658
Goodwill
503,259
497,453
DOLE brand
306,280
306,280
Other intangible assets, net of
accumulated amortization of $124,470 and $120,315, respectively
48,593
50,990
Fresh Vegetables non-current assets held
for sale
—
343,828
Other assets
132,189
142,180
Deferred tax assets, net
70,080
64,112
Total assets
$
4,669,842
$
4,591,842
LIABILITIES AND EQUITY
Accounts payable
$
624,045
$
640,620
Income taxes payable
20,624
11,558
Accrued liabilities
387,378
381,688
Bank overdrafts
11,898
8,623
Current portion of long-term debt, net
255,052
97,435
Current maturities of operating leases
61,216
57,372
Payroll and other tax
26,407
27,187
Contingent consideration
603
1,791
Pension and postretirement benefits
17,059
17,287
Fresh Vegetables current liabilities held
for sale
311,453
199,255
Dividends payable and other current
liabilities
18,357
17,698
Total current liabilities
1,734,092
1,460,514
Long-term debt, net
1,013,984
1,127,321
Operating leases, less current
maturities
266,226
246,723
Deferred tax liabilities, net
118,606
118,403
Income taxes payable, less current
portion
30,458
30,458
Contingent consideration, less current
portion
6,482
5,022
Pension and postretirement benefits, less
current portion
118,761
124,646
Fresh Vegetables non-current liabilities
held for sale
—
116,380
Other long-term liabilities
44,141
43,390
Total liabilities
$
3,332,750
$
3,272,857
Redeemable noncontrolling interests
32,964
32,311
Stockholders’ equity:
Common stock — $0.01 par value;
300,000,000 shares authorized and 94,899,194 shares outstanding as
of March 31, 2023 and December 31, 2022
949
949
Additional paid-in capital
794,864
795,063
Retained earnings
475,718
469,249
Accumulated other comprehensive loss
(100,911
)
(104,133
)
Total equity attributable to Dole plc
1,170,620
1,161,128
Equity attributable to noncontrolling
interests
133,508
125,546
Total equity
1,304,128
1,286,674
Total liabilities, redeemable
noncontrolling interests and equity
$
4,669,842
$
4,591,842
Consolidated Statements of Cash Flows - Unaudited
Three Months Ended
March 31, 2023
March 31, 2022
Operating Activities
(U.S. Dollars in thousands)
Net income
$
20,483
$
3,409
Adjustments to reconcile net income to net
cash provided by (used in) operating activities:
Depreciation and amortization
32,291
31,013
Incremental charges on purchase accounting
valuation of biological assets and inventory related to the
acquisition of Legacy Dole
—
17,513
Net (gain) on sale of assets and asset
write-offs
(3,973
)
(495
)
Stock-based compensation expense
1,330
648
Equity method earnings
(1,478
)
(577
)
Amortization of debt discounts and debt
issuance costs
1,589
1,466
Deferred tax expense (benefit)
7,370
(4,078
)
Pension and other postretirement benefit
plan expense (benefit)
1,970
(1,023
)
Dividends received from equity method
investments
—
810
Other
(3,083
)
(69
)
Changes in operating assets and
liabilities:
Receivables, net of allowances
(2,407
)
(114,022
)
Inventories
(6,768
)
(48,762
)
Accrued and other current and long-term
liabilities
(32,097
)
(31,124
)
Net cash provided by (used in) operating
activities
15,227
(145,291
)
Investing activities
Sales of assets
6,529
15,620
Capital expenditures
(19,891
)
(17,330
)
Acquisitions, net of cash acquired
(1,405
)
(1,399
)
Insurance proceeds
—
776
Purchases of investments
(790
)
(412
)
Sales (purchases) of unconsolidated
affiliates
1,507
(48
)
Other
17
3
Net cash (used in) investing
activities
(14,033
)
(2,790
)
Financing activities
Proceeds from borrowings and
overdrafts
392,054
341,795
Repayments on borrowings and
overdrafts
(347,448
)
(212,414
)
Dividends paid to shareholders
(7,592
)
(7,590
)
Dividends paid to noncontrolling
interests
(1,918
)
(3,616
)
Other noncontrolling interest activity,
net
(476
)
—
Payment of contingent consideration
(1,151
)
(599
)
Net cash provided by financing
activities
33,469
117,576
Effect of foreign exchange rate changes
on cash
2,697
(4,108
)
Increase (decrease) in cash and cash
equivalents
37,360
(34,613
)
Cash and cash equivalents at beginning of
period
228,840
250,561
Cash and cash equivalents at end of
period
$
266,200
$
215,948
Reconciliation from Net Income to Adjusted EBITDA -
Unaudited
The following information is provided to give quantitative
information related to items impacting comparability. Refer to the
'Non-GAAP Financial Measures' section of this document for
additional detail on each item.
Three Months Ended
March 31, 2023
March 31, 2022
(U.S. Dollars in thousands)
Net income (Reported GAAP)
$
20,483
$
3,409
Loss from discontinued operations, net of
income taxes
14,506
25,230
Income from continuing operations
(Reported GAAP)
34,989
28,639
Income tax expense
10,994
7,358
Interest expense
21,712
11,616
Mark to market losses (gains)
822
(1,138
)
(Gain) on asset sales
(4,167
)
—
Incremental charges on biological assets
and inventory from the Acquisition
—
17,513
Cyber-related incident
4,750
—
Other items4
673
(868
)
Adjustments from equity method
investments
1,323
1,128
Adjusted EBIT (Non-GAAP)
71,096
64,248
Depreciation
24,303
22,533
Amortization of intangible assets
2,616
2,842
Depreciation and amortization adjustments
from equity method investments
2,372
2,260
Adjusted EBITDA (Non-GAAP)
$
100,387
$
91,883
4 For the three months ended March 31,
2023, other items is comprised of $0.7 million of asset writedowns,
net of insurance proceeds. For the three months ended March 31,
2022, other items is comprised of $0.2 million in net gains on
equity method investment acquisitions and $0.6 million in insurance
proceeds, net of asset writedowns.
Reconciliation from Net Income attributable to Dole plc
shareholders to Adjusted Net Income - Unaudited
The following information is provided to give quantitative
information related to items impacting comparability. Refer to the
'Non-GAAP Financial Measures' section of this document for
additional detail on each item. Refer to the Appendix for
supplementary detail.
Three Months Ended
March 31, 2023
March 31, 2022
(U.S. Dollars and shares in
thousands, except per share amounts)
Net income (loss) attributable to Dole
plc (Reported GAAP)
$
14,159
$
(1,394
)
Loss from discontinued operations, net of
income taxes
14,506
25,230
Income from continuing operations
attributable to Dole plc
28,665
23,836
Adjustments:
Amortization of intangible assets
2,616
2,842
Mark to market losses (gains)
822
(1,138
)
(Gain) on asset sales
(4,167
)
—
Incremental charges on biological assets
and inventory from the Acquisition
—
17,513
Cyber-related incident
4,750
—
Other items5
673
(868
)
Adjustments from equity method
investments
119
678
Income tax on items above and discrete tax
items
(309
)
(1,931
)
NCI impact on items above
(893
)
(458
)
Adjusted Net Income for Adjusted EPS
calculation (Non-GAAP)
$
32,276
$
40,474
Adjusted earnings per share – basic
(Non-GAAP)
$
0.34
$
0.43
Adjusted earnings per share – diluted
(Non-GAAP)
$
0.34
$
0.43
Weighted average shares outstanding –
basic
94,899
94,878
Weighted average shares outstanding –
diluted
95,024
94,909
5 For the three months ended March 31,
2023, other items is comprised of $0.7 million of asset writedowns,
net of insurance proceeds. For the three months ended March 31,
2022, other items is comprised of $0.2 million in net gains on
equity method investment acquisitions and $0.6 million in insurance
proceeds, net of asset writedowns.
Supplemental Reconciliation from Net Income attributable to
Dole plc to Adjusted Net Income - Unaudited
The following information is provided to give quantitative
information related to items impacting comparability. Refer to the
'Non-GAAP Financial Measures' section of this document for
additional detail on each item.
Three Months Ended March 31,
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)
$
1,989,167
(1,810,128
)
179,039
9.0
%
(120,879
)
3,973
$
62,133
Loss from discontinued operations, net of
income taxes
—
—
—
—
—
—
Amortization of intangible assets
—
—
—
2,616
—
2,616
Mark to market losses (gains)
—
(1,390
)
(1,390
)
—
—
(1,390
)
(Gain) on asset sales
—
—
—
—
(4,167
)
(4,167
)
Cyber-related incident
—
—
—
4,750
—
4,750
Other items
—
673
673
—
—
673
Adjustments from equity method
investments
—
—
—
—
—
—
Income tax on items above and discrete tax
items
—
—
—
—
—
—
NCI impact on items above
—
—
—
—
—
—
Adjusted (Non-GAAP)
$
1,989,167
(1,810,845
)
178,322
9.0
%
(113,513
)
(194
)
$
64,615
Three Months Ended March 31,
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
(Loss)
Reported (GAAP)
$
1,970,231
(1,818,436
)
151,795
7.7
%
(109,544
)
737
$
42,988
Loss from discontinued operations, net of
income taxes
—
—
—
—
—
—
Amortization of intangible assets
—
—
—
2,842
—
2,842
Mark to market losses (gains)
—
(4,088
)
(4,088
)
—
—
(4,088
)
(Gain) on asset sales
—
—
—
—
—
—
Incremental charges on biological assets
and inventory from the Acquisition
—
17,513
17,513
—
—
17,513
Other items
—
(626
)
(626
)
—
(242
)
(868
)
Adjustments from equity method
investments
—
—
—
—
—
—
Income tax on items above and discrete tax
items
—
—
—
—
—
—
NCI impact on items above
—
—
—
—
—
—
Adjusted (Non-GAAP)
$
1,970,231
(1,805,637
)
164,594
8.4
%
(106,702
)
495
$
58,387
6 Other operating charges for the three
months ended March 31, 2023 is comprised of gains on asset sales of
$4.0 million, as reported on the Dole plc GAAP Consolidated
Statements of Operations.
7 Other operating charges for the three
months ended March 31, 2022 is comprised of gains from disposal of
businesses of $0.2 million and gains on asset sales of $0.5
million, as reported on the Dole plc the GAAP Consolidated
Statements of Operations.
Three Months Ended March 31,
2023
(U.S. Dollars in thousands)
Other income, net
Interest income
Interest expense
Income tax expense
Equity method earnings
Income from continuing
operations
Loss from discontinued
operations, net of income taxes
Reported (GAAP)
$
1,775
2,309
(21,712
)
(10,994
)
1,478
34,989
$
(14,506
)
Loss from discontinued operations, net of
income taxes
—
—
—
—
—
—
14,506
Amortization of intangible assets
—
—
—
—
—
2,616
—
Mark to market losses (gains)
2,212
—
—
—
—
822
—
(Gain) on asset sales
—
—
—
—
—
(4,167
)
—
Cyber-related incident
—
—
—
—
—
4,750
—
Other items
—
—
—
—
—
673
—
Adjustments from equity method
investments
—
—
—
—
119
119
—
Income tax on items above and discrete tax
items
—
—
—
(228
)
(81
)
(309
)
—
NCI impact on items above
—
—
—
—
—
—
—
Adjusted (Non-GAAP)
$
3,987
2,309
(21,712
)
(11,222
)
1,516
39,493
$
—
Three Months Ended March 31,
2022
(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)
$
2,464
1,584
(11,616
)
(7,358
)
577
28,639
$
(25,230
)
Loss from discontinued operations, net of
income taxes
—
—
—
—
—
—
25,230
Amortization of intangible assets
—
—
—
—
—
2,842
—
Mark to market losses (gains)
2,950
—
—
—
—
(1,138
)
—
(Gain) on asset sales
—
—
—
—
—
—
—
Incremental charges on biological assets
and inventory from the Acquisition
—
—
—
—
—
17,513
—
Other items
—
—
—
—
—
(868
)
—
Adjustments from equity method
investments
—
—
—
—
678
678
—
Income tax on items above and discrete tax
items
—
—
—
(1,828
)
(103
)
(1,931
)
—
NCI impact on items above
—
—
—
—
—
—
—
Adjusted (Non-GAAP)
$
5,414
1,584
(11,616
)
(9,186
)
1,152
45,735
$
—
Three Months Ended March 31,
2023
(U.S. Dollars and shares in
thousands, except per share amounts)
Net income
Net income attributable to
noncontrolling interests
Net income (loss) attributable
to Dole plc
Diluted net income (loss) per
share
Reported (GAAP)
$
20,483
$
(6,324
)
$
14,159
$
0.15
Loss from discontinued operations, net of
income taxes
14,506
—
14,506
Amortization of intangible assets
2,616
—
2,616
Mark to market losses (gains)
822
—
822
(Gain) on asset sales
(4,167
)
—
(4,167
)
Cyber-related incident
4,750
—
4,750
Other items
673
—
673
Adjustments from equity method
investments
119
—
119
Income tax on items above and discrete tax
items
(309
)
—
(309
)
NCI impact on items above
—
(893
)
(893
)
Adjusted (Non-GAAP)
$
39,493
$
(7,217
)
$
32,276
$
0.34
Weighted average shares outstanding –
diluted
95,024
Three Months Ended March 31,
2022
(U.S. Dollars and shares in
thousands, except per share amounts)
Net income
Net income attributable to
noncontrolling interests
Net income (loss) attributable
to Dole plc
Diluted net income (loss) per
share
Reported (GAAP)
$
3,409
$
(4,803
)
$
(1,394
)
$
(0.01
)
Loss from discontinued operations, net of
income taxes
25,230
—
25,230
Amortization of intangible assets
2,842
—
2,842
Mark to market losses (gains)
(1,138
)
—
(1,138
)
(Gain) on asset sales
—
—
—
Incremental charges on biological assets
and inventory from the Acquisition
17,513
—
17,513
Other items
(868
)
—
(868
)
Adjustments from equity method
investments
678
—
678
Income tax on items above and discrete tax
items
(1,931
)
—
(1,931
)
NCI impact on items above
—
(458
)
(458
)
Adjusted (Non-GAAP)
$
45,735
$
(5,261
)
$
40,474
$
0.43
Weighted average shares outstanding –
diluted
94,909
Supplemental Reconciliation of Prior Year Segment Results to
Current Year Segment Results – Unaudited
Revenue for the Three Months
Ended
March 31, 2022
Impact of Foreign Currency
Translation
Impact of Acquisitions and
Divestitures
Like-for-like Increase
(Decrease)
March 31, 2023
(U.S. Dollars in thousands)
Fresh Fruit
$
749,803
$
—
$
—
$
49,107
$
798,910
Diversified Fresh Produce - EMEA
791,155
(53,360
)
2,252
58,053
798,100
Diversified Fresh Produce - Americas &
ROW
463,692
(2,786
)
—
(38,155
)
422,751
Intersegment
(34,419
)
—
—
3,825
(30,594
)
Total
$
1,970,231
$
(56,146
)
$
2,252
$
72,830
$
1,989,167
Adjusted EBITDA for the Three
Months Ended
March 31, 2022
Impact of Foreign Currency
Translation
Impact of Acquisitions and
Divestitures
Like-for-like Increase
(Decrease)
March 31, 2023
(U.S. Dollars in thousands)
Fresh Fruit
$
60,397
$
145
$
—
$
8,669
$
69,211
Diversified Fresh Produce - EMEA
19,277
(1,628
)
758
4,999
23,406
Diversified Fresh Produce - Americas &
ROW
12,209
(31
)
128
(4,536
)
7,770
Total
$
91,883
$
(1,514
)
$
886
$
9,132
$
100,387
Net Debt Reconciliation
Net Debt is the primary measure used by management to analyze
the Company’s capital structure. Net Debt is a non-GAAP financial
measure, calculated as cash and cash equivalents, less current and
long-term debt. It also excludes debt discounts and debt issuance
costs. The calculation of Net Debt as of March 31, 2023 is
presented below. Net Debt as of March 31, 2023 was $1.0
billion.
March 31, 2023
December 31,
2022
(U.S. Dollars in thousands)
Cash and cash equivalents (Reported
GAAP)
$
266,200
$
228,840
Debt (Reported GAAP):
Long-term debt, net
(1,013,984
)
(1,127,321
)
Current maturities
(255,052
)
(97,435
)
Bank overdrafts
(11,898
)
(8,623
)
Total debt, net
(1,280,934
)
(1,233,379
)
Less: Debt discounts and debt issuance
costs (Reported GAAP)
(17,000
)
(17,874
)
Total gross debt
(1,297,934
)
(1,251,253
)
Net Debt (Non-GAAP)
$
(1,031,734
)
$
(1,022,413
)
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, 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, 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 include adding merger, transaction and other
related costs, adding incremental costs for produce recalls, adding
or subtracting asset write-downs, 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 and inventory related to the acquisition of
Legacy Dole, adding impairment charges on property, plant and
equipment, subtracting the fair value gain or adding the fair value
loss on the acquisition of investments previously accounted for
under the equity method, 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 and adding
restructuring charges, costs for legal matters not in the ordinary
course of business and costs incurred for cyber-related incidents;
and (6) other adjustments from equity method investments, which
includes the Company’s share of these items within equity method
earnings.
Adjusted EBITDA is calculated from GAAP net income by: (1)
adding the loss from discontinued operations, net of income taxes,
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
depreciation charges; (5) adding amortization charges; (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 include adding merger,
transaction and other related costs, adding incremental costs for
produce recalls, adding or subtracting asset write-downs, 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 and inventory related
to the acquisition of Legacy Dole, adding impairment charges on
property, plant and equipment, subtracting the fair value gain or
adding the fair value loss on the acquisition of investments
previously accounted for under the equity method, 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
and adding restructuring charges, costs for legal matters not in
the ordinary course of business and costs incurred for
cyber-related incidents; and (8) other adjustments from equity
method investments, which includes the Company’s share of these
items within equity method earnings.
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, or subtracting the income from
discontinued operations, net of income taxes (2) adding
amortization charges; (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 include
adding merger, transaction and other related costs, adding
incremental costs for produce recalls, adding or subtracting asset
write-downs, 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
and inventory related to the acquisition of Legacy Dole, adding
impairment charges on property, plant and equipment, subtracting
the fair value gain or adding the fair value loss on the
acquisition of investments previously accounted for under the
equity method, 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 and adding restructuring charges,
costs for legal matters not in the ordinary course of business and
costs incurred for cyber-related incidents; (5) other adjustments
from equity method investments, which includes the Company’s share
of these items within equity method earnings; (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 debt discounts and debt issuance costs.
Dole is not able to provide a reconciliation for projected FY'23
results without taking unreasonable efforts.
Category: Financial
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230518005084/en/
Investor Contact: James O'Regan, Head of Investor
Relations, Dole plc joregan@totalproduce.com +353 1 887 2794
Media Contact: Brian Bell, Ogilvy brian.bell@ogilvy.com
+353 87 2436 130
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