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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231116584297/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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