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, 2024.
Highlights for the three months ended September 30,
2024:
- Positive third quarter performance, positioning the Company to
deliver a strong full year result for 2024
- Revenue of $2.1 billion, an increase of 1.0%. On a
like-for-like basis1, revenue increased 5.8%
- Net Income decreased to $21.5 million, primarily due to the
benefit of an exceptional $28.8 million gain on sale of a non-core
asset recorded in the prior period
- Adjusted EBITDA2 of $82.1 million, a decrease of 3.7%. On a
like-for-like basis, Adjusted EBITDA increased 2.3%
- Adjusted Net Income of $18.0 million and Adjusted Diluted EPS
of $0.19
- Increasing full year Adjusted EBITDA guidance by $10.0 million.
Targeting Adjusted EBITDA of at least $380.0 million for the full
year
Financial Highlights - Unaudited
Three Months Ended
Nine Months Ended
September 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
(U.S. Dollars in millions, except
per share amounts)
Revenue
2,062
2,043
6,308
6,173
Income from continuing operations3
15.1
55.7
142.7
154.4
Net Income
21.5
54.0
175.0
126.8
Net Income attributable to Dole plc
14.4
45.3
164.7
101.7
Diluted EPS from continuing operations
0.08
0.50
1.39
1.36
Diluted EPS
0.15
0.48
1.73
1.07
Adjusted EBITDA2
82.1
85.2
317.6
308.3
Adjusted Net Income2
18.0
22.6
105.6
103.2
Adjusted Diluted EPS2
0.19
0.24
1.11
1.09
______________
1
Like-for-like basis refers to the measure
excluding the impact of foreign currency translation movements and
acquisitions and divestitures.
2
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.
3
Fresh Vegetables results are reported
separately as discontinued operations, net of income taxes, in our
condensed consolidated statements of operations, its assets and
liabilities are separately presented in our condensed consolidated
balance sheets, and its cash flows are presented separately in our
condensed consolidated statements of cash flows for all periods
presented. Unless otherwise noted, our discussion of our results
included herein, outlook and all supplementary tables, including
non-GAAP financial measures, are presented on a continuing
operations basis.
Commenting on the results, Carl McCann, Executive Chairman,
said:
“We are pleased to deliver another positive result for the third
quarter of 2024, continuing the good momentum we have built over
the course of this year, with Adjusted EBITDA increasing 2.3% to
$82.1 million on a like-for-like basis.
Our performance over the first nine months positions us well to
deliver a strong result for the full year. Today, we are pleased to
raise our full year Adjusted EBITDA target by $10.0 million to at
least $380.0 million.”
Group Results - Third Quarter
Revenue increased 1.0%, or $19.7 million primarily due to
positive operational performance across all segments and a $12.7
million net favorable impact of foreign currency translation,
offset partially due to a net negative impact from acquisitions and
divestitures of $110.9 million. On a like-for-like basis, revenue
was 5.8%, or $117.9 million, ahead of prior year.
Net Income decreased 60.1%, or $32.5 million, primarily due to
the benefit of an exceptional $28.8 million gain on sale of a
non-core asset recorded in the prior period. There was also a
decrease of other income of $9.3 million, primarily related to fair
value adjustments of financial instruments.
Adjusted EBITDA decreased 3.7%, or $3.1 million, primarily
driven by decreases in the Fresh Fruit and Diversified Fresh
Produce - EMEA segments, partially offset by strong performance in
the Diversified Fresh Produce - Americas & ROW segment. On a
like-for-like basis, Adjusted EBITDA increased 2.3%, or $1.9
million.
Adjusted Net Income decreased $4.5 million, predominantly due to
the decreases in Adjusted EBITDA noted above as well as higher
income tax expense, offset partially by lower interest expense.
Adjusted Diluted EPS for the three months ended September 30, 2024
was $0.19 compared to $0.24 in the prior year.
Selected Segmental Financial Information (Unaudited)
Three Months Ended
September 30, 2024
September 30, 2023
(U.S. Dollars in thousands)
Revenue
Adjusted EBITDA
Revenue
Adjusted EBITDA
Fresh Fruit
$
798,781
$
42,904
$
749,210
$
45,111
Diversified Fresh Produce - EMEA
899,639
30,363
856,351
34,923
Diversified Fresh Produce - Americas &
ROW
390,057
8,805
470,011
5,159
Intersegment
(26,063
)
—
(32,900
)
—
Total
$
2,062,414
$
82,072
$
2,042,672
$
85,193
Nine Months Ended
September 30, 2024
September 30, 2023
(U.S. Dollars in thousands)
Revenue
Adjusted EBITDA
Revenue
Adjusted EBITDA
Fresh Fruit
$
2,474,461
$
182,958
$
2,387,163
$
180,138
Diversified Fresh Produce - EMEA
2,698,088
99,017
2,570,080
100,932
Diversified Fresh Produce - Americas &
ROW
1,222,996
35,617
1,310,407
27,191
Intersegment
(87,666
)
—
(94,637
)
—
Total
$
6,307,879
$
317,592
$
6,173,013
$
308,261
Fresh Fruit
Revenue increased 6.6%, or $49.6 million, primarily due to
higher worldwide volumes of bananas sold, as well as higher
worldwide pricing of bananas and pineapples, partially offset by
lower worldwide volumes for pineapples and lower pricing and volume
for plantains.
Adjusted EBITDA decreased 4.9%, or $2.2 million, primarily
driven by higher shipping costs in the North American market due to
scheduled dry dockings as well as lower volumes of pineapples sold
and lower commercial cargo profitability, partially offset by
higher volumes of bananas sold and higher pricing for bananas and
pineapples.
Diversified Fresh Produce – EMEA
Revenue increased 5.1%, or $43.3 million, primarily due to
strong performance in Ireland, the U.K. and the Netherlands There
was also a favorable impact from foreign currency translation of
$13.6 million and an incremental positive impact from acquisitions
of $1.8 million. On a like-for-like basis, revenue was 3.3%, or
$27.9 million, ahead of prior year.
Adjusted EBITDA decreased 13.1%, or $4.6 million, primarily due
to a decrease in the U.K. due to higher one-off IT charges and the
impact of lower supply of certain categories and seasonal timing
differences in Spain and South Africa. On a like-for-like basis,
Adjusted EBITDA was 14.5%, or $5.1 million, behind the prior
year.
Diversified Fresh Produce – Americas & ROW
Revenue decreased 17.0%, or $80.0 million, primarily due to the
disposal of the Progressive Produce business in mid-March 2024. On
a like-for-like basis, revenue was 7.2%, or $33.6 million, ahead of
the prior year, primarily due to volume and pricing growth in most
commodities in North America.
Adjusted EBITDA increased 70.7%, or $3.6 million, primarily
driven by improved performance in our North America berries
business and positive margin development in avocados, as well as
revenue growth across most commodities in North America. These
positive impacts were primarily offset by the disposal of the
Progressive Produce business. On a like-for-like basis, Adjusted
EBITDA was 178.1%, or $9.2 million, ahead of the prior year.
Capital Expenditures
Cash capital expenditures from continuing operations for the
nine months ended September 30, 2024 were $56.8 million, which
included investments in shipping containers, farming investments,
efficiency projects in our warehouses and ongoing investments in IT
and logistics assets. Additions through finance leases from
continuing operations were $48.7 million for the nine months ended
September 30, 2024. These additions were primarily related to $41.1
million of investments in two vessels during the three months ended
September 30, 2024 that we had previously chartered and now have
committed to purchase.
Free Cash Flow from Continuing Operations and Net
Debt
Free cash flow from continuing operations was $49.5 million for
the nine months ended September 30, 2024. Free cash flow was
primarily driven by normal seasonal impacts. There were higher
outflows from receivables based on higher revenues (excluding the
impact of divestitures) and timing of collections and lower inflows
from inventories, partly offset by inflows from accounts payables,
accrued liabilities and other liabilities. Net Debt as of September
30, 2024 was $732.0 million.
Outlook for Fiscal Year 2024 (forward-looking
statement)
We are pleased to have delivered another robust performance in
the third quarter putting us in an excellent position to deliver a
strong result for the full year.
As we move towards the end of the year, we are raising our full
year adjusted EBITDA target by $10.0 million to at least $380.0
million for 2024.
Following our strategic decision to bring two additional vessels
into our shipping fleet, we now expect total capital expenditure
from continuing operations, including additions by finance lease,
to be in the range of $130.0 million to $140.0 million for
financial year 2024.
Additionally, as our debt levels and market interest rates have
reduced, we now expect our full year interest expense, including
discontinued operations, to be approximately $75.0 million for
financial year 2024.
Dividend
On November 12, 2024, the Board of Directors of Dole plc
declared a cash dividend for the second quarter of 2024 of $0.08
per share, payable on January 3, 2025 to shareholders of record on
December 11, 2024. A cash dividend of $0.08 per share was paid on
October 3, 2024 for the first second of 2024.
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 2024
financial results. The webcast can be accessed at
www.doleplc.com/investor-relations. The conference call can be
accessed by registering at
https://registrations.events/direct/Q4I37635213. The conference ID
is 37635.
Forward-looking information
Certain statements made in this press release that are not
historical are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are based on management’s beliefs,
assumptions, and expectations of our future economic performance,
considering the information currently available to management.
These statements are not statements of historical fact. The words
“believe,” “may,” “could,” “will,” “should,” “would,” “anticipate,”
“estimate,” “expect,” “intend,” “objective,” “seek,” “strive,”
“target” or similar words, or the negative of these words, identify
forward-looking statements. The inclusion of this forward-looking
information should not be regarded as a representation by us or any
other person that the future plans, estimates, or expectations
contemplated by us will be achieved. Such forward-looking
statements are subject to various risks and uncertainties and
assumptions relating to our operations, financial results,
financial condition, business prospects, growth strategy and
liquidity. Accordingly, there are, or will be, important factors
that could cause our actual results to differ materially from those
indicated in these statements. If one or more of these or other
risks or uncertainties materialize, or if our underlying
assumptions prove to be incorrect, our actual results may vary
materially from what we may have expressed or implied by these
forward-looking statements. We caution that you should not place
undue reliance on any of our forward-looking statements. Any
forward-looking statement speaks only as of the date on which such
statement is made, and we do not undertake any obligation to update
any forward-looking statement to reflect events or circumstances
after the date on which such statement is made except as required
by the federal securities laws.
Appendix
Condensed Consolidated Statements of
Operations - Unaudited
Three Months Ended
Nine Months Ended
September 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
(U.S. Dollars and shares in
thousands, except per share amounts)
Revenues, net
$
2,062,414
$
2,042,672
$
6,307,879
$
6,173,013
Cost of sales
(1,898,375
)
(1,876,292
)
(5,748,577
)
(5,631,021
)
Gross profit
164,039
166,380
559,302
541,992
Selling, marketing, general and
administrative expenses
(115,829
)
(118,023
)
(351,383
)
(354,569
)
Gain on disposal of business
—
—
75,945
—
Gain on asset sales
1,573
28,746
1,901
43,442
Impairment of goodwill
—
—
(36,684
)
—
Impairment and asset write-downs of
property, plant and equipment
(2,049
)
—
(3,326
)
—
Operating income
47,734
77,103
245,755
230,865
Other (expense) income, net
(4,541
)
4,817
9,458
7,721
Interest income
2,632
2,311
8,335
7,260
Interest expense
(17,473
)
(20,899
)
(54,209
)
(62,359
)
Income from continuing operations before
income taxes and equity earnings
28,352
63,332
209,339
183,487
Income tax expense
(15,524
)
(13,017
)
(75,385
)
(40,604
)
Equity method earnings
2,303
5,342
8,711
11,508
Income from continuing operations
15,131
55,657
142,665
154,391
Income (loss) from discontinued
operations, net of income taxes
6,384
(1,672
)
32,351
(27,616
)
Net income
21,515
53,985
175,016
126,775
Net income attributable to noncontrolling
interests
(7,113
)
(8,693
)
(10,354
)
(25,049
)
Net income attributable to Dole plc
$
14,402
$
45,292
$
164,662
$
101,726
Income (loss) per share - basic:
Continuing operations
$
0.08
$
0.50
$
1.39
$
1.36
Discontinued operations
0.07
(0.02
)
0.34
(0.29
)
Net income per share attributable to Dole
plc - basic
$
0.15
$
0.48
$
1.73
$
1.07
Income (loss) per share - diluted:
Continuing operations
$
0.08
$
0.50
$
1.39
$
1.36
Discontinued operations
0.07
(0.02
)
0.34
(0.29
)
Net income per share attributable to Dole
plc - diluted
$
0.15
$
0.48
$
1.73
$
1.07
Weighted-average shares:
Basic
94,990
94,929
94,950
94,912
Diluted
95,614
95,148
95,395
95,094
Condensed Consolidated Statements of Cash Flows -
Unaudited
Nine Months Ended
September 30, 2024
September 30, 2023
Operating Activities
(U.S. Dollars in thousands)
Net income
$
175,016
$
126,775
(Income) loss from discontinued
operations, net of taxes
(32,351
)
27,616
Income from continuing operations
142,665
154,391
Adjustments to reconcile income from
continuing operations to net cash provided by (used in) operating
activities - continuing operations:
Depreciation and amortization
72,632
76,908
Impairment of goodwill
36,684
—
Impairment and asset write-downs of
property, plant and equipment
3,326
—
Net gain on sale of assets and asset
write-offs
(1,901
)
(43,506
)
Net gain on sale of business
(75,945
)
—
Net gain on financial instruments
(723
)
(2,043
)
Stock-based compensation expense
6,090
4,381
Equity method earnings
(8,711
)
(11,508
)
Amortization of debt discounts and debt
issuance costs
6,255
4,788
Deferred tax benefit
(12,353
)
(11,747
)
Pension and other postretirement benefit
plan expense
1,982
4,160
Dividends received from equity method
investments
4,994
6,350
Other
178
(4,075
)
Changes in operating assets and
liabilities:
Receivables, net of allowances
(89,014
)
13,858
Inventories
(9,136
)
26,642
Prepaids, other current assets and other
assets
(4,032
)
(25
)
Accounts payable, accrued liabilities and
other liabilities
33,255
(61,440
)
Net cash provided by operating activities
- continuing operations
106,246
157,134
Investing activities
Sales of assets
2,825
64,103
Capital expenditures
(56,788
)
(51,334
)
Proceeds from sale of business, net of
transaction costs
117,735
—
Insurance proceeds
527
1,850
Purchases of investments
(262
)
(1,153
)
(Purchases) sales of unconsolidated
affiliates
(504
)
1,498
Acquisitions, net of cash acquired
(930
)
(262
)
Other
(1,908
)
(127
)
Net cash provided by (used in) investing
activities - continuing operations
60,695
14,575
Financing activities
Proceeds from borrowings and
overdrafts
1,273,561
1,190,596
Repayments on borrowings and
overdrafts
(1,425,422
)
(1,300,083
)
Dividends paid to shareholders
(22,899
)
(22,873
)
Dividends paid to noncontrolling
interests
(23,157
)
(24,824
)
Other noncontrolling interest activity,
net
78
(482
)
Payment of contingent consideration
(996
)
(1,169
)
Net cash (used in) financing activities -
continuing operations
(198,835
)
(158,835
)
Effect of foreign exchange rate changes on
cash
1,613
(1,716
)
Net cash provided by (used in) operating
activities - discontinued operations
23,397
(15,772
)
Net cash used in investing activities -
discontinued operations
(6,139
)
(6,703
)
Cash provided by discontinued operations,
net
17,258
(22,475
)
Decrease in cash and cash equivalents
(13,023
)
(11,317
)
Cash and cash equivalents at beginning of
period, including discontinued operations
277,005
228,840
Cash and cash equivalents at end of
period, including discontinued operations
$
263,982
$
217,523
Supplemental cash flow
information:
Income tax payments, net of refunds
$
(62,743
)
$
(49,142
)
Interest payments on borrowings
$
(50,376
)
$
(62,771
)
Condensed Consolidated Balance Sheets - Unaudited
September 30, 2024
December 31, 2023
ASSETS
(U.S. Dollars and shares in
thousands)
Cash and cash equivalents
$
260,588
$
275,580
Short-term investments
5,794
5,899
Trade receivables, net of allowances for
credit losses of $21,619 and $18,360, respectively
561,737
538,177
Grower advance receivables, net of
allowances for credit losses of $21,025 and $19,839,
respectively
131,708
109,958
Other receivables, net of allowances for
credit losses of $12,944 and $13,227, respectively
117,223
117,069
Inventories, net of allowances of $4,786
and $4,792, respectively
377,989
378,592
Prepaid expenses
63,554
61,724
Other current assets
15,883
17,401
Fresh Vegetables current assets held for
sale
423,743
414,457
Other assets held for sale
1,654
1,832
Total current assets
1,959,873
1,920,689
Long-term investments
15,661
15,970
Investments in unconsolidated
affiliates
136,122
131,704
Actively marketed property
13,781
13,781
Property, plant and equipment, net of
accumulated depreciation of $506,521 and $444,775, respectively
1,125,511
1,102,234
Operating lease right-of-use assets
319,730
340,458
Goodwill
441,792
513,312
DOLE brand
306,280
306,280
Other intangible assets, net of
accumulated amortization of $124,349 and $134,420, respectively
27,216
41,232
Other assets
100,913
109,048
Deferred tax assets, net
69,475
66,485
Total assets
$
4,516,354
$
4,561,193
LIABILITIES AND EQUITY
Accounts payable
$
641,543
$
670,904
Income taxes payable
66,495
22,917
Accrued liabilities
388,157
357,427
Bank overdrafts
16,451
11,488
Current portion of long-term debt, net
87,023
222,940
Current maturities of operating leases
62,597
63,653
Payroll and other tax
22,094
27,791
Contingent consideration
1,037
1,788
Pension and other postretirement
benefits
15,466
16,570
Fresh Vegetables current liabilities held
for sale
269,879
291,342
Dividends payable and other current
liabilities
14,738
29,892
Total current liabilities
1,585,480
1,716,712
Long-term debt, net
878,785
845,013
Operating leases, less current
maturities
262,681
287,991
Deferred tax liabilities, net
79,956
92,653
Income taxes payable, less current
portion
—
16,664
Contingent consideration, less current
portion
7,725
7,327
Pension and other postretirement benefits,
less current portion
113,718
121,689
Other long-term liabilities
52,962
52,295
Total liabilities
2,981,307
3,140,344
Redeemable noncontrolling interests
34,790
34,185
Stockholders’ equity:
Common stock — $0.01 par value; 300,000
shares authorized; 95,012 and 94,929 shares outstanding as of
September 30, 2024 and December 31, 2023
950
949
Additional paid-in capital
801,919
796,800
Retained earnings
704,047
562,562
Accumulated other comprehensive loss
(117,000
)
(110,791
)
Total equity attributable to Dole plc
1,389,916
1,249,520
Equity attributable to noncontrolling
interests
110,341
137,144
Total equity
1,500,257
1,386,664
Total liabilities, redeemable
noncontrolling interests and equity
$
4,516,354
$
4,561,193
Reconciliation from Net Income to Adjusted EBITDA -
Unaudited
The following information is provided to give quantitative
information related to items impacting comparability. Refer to the
'Non-GAAP Financial Measures' section of this document for
additional detail on each item.
Three Months Ended
Nine Months Ended
September 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
(U.S. Dollars in thousands)
Net income (Reported GAAP)
$
21,515
$
53,985
$
175,016
$
126,775
(Income) loss from discontinued
operations, net of income taxes
(6,384
)
1,672
(32,351
)
27,616
Income from continuing operations
(Reported GAAP)
15,131
55,657
142,665
154,391
Income tax expense
15,524
13,017
75,385
40,604
Interest expense
17,473
20,899
54,209
62,359
Mark to market losses (gains)
6,301
(4,783
)
1,217
(2,926
)
Gain on asset sales
(66
)
(28,802
)
(35
)
(43,356
)
Gain on disposal of business
—
—
(75,945
)
—
Cyber-related incident
—
—
—
5,321
Impairment of goodwill
—
—
36,684
—
Other items4,5
(983
)
222
(2,709
)
1,085
Adjustments from equity method
investments
2,504
2,160
6,964
6,405
Adjusted EBIT (Non-GAAP)
55,884
58,370
238,435
223,883
Depreciation
22,616
21,737
66,852
69,182
Amortization of intangible assets
1,621
2,536
5,780
7,726
Depreciation and amortization adjustments
from equity method investments
1,951
2,550
6,525
7,470
Adjusted EBITDA (Non-GAAP)
$
82,072
$
85,193
$
317,592
$
308,261
________________
4
For the three months ended September 30,
2024, other items is primarily comprised of $1.0 million of
insurance proceeds, net of asset writedowns. For the three months
ended September 30, 2023, other items is primarily comprised of
$0.2 million of asset writedowns, net of insurance proceeds.
5
For the nine months ended September 30,
2024, other items is primarily comprised of $2.7 million of
insurance proceeds, net of asset writedowns. For the nine months
ended September 30, 2023, other items is primarily comprised of
$1.1 million of asset writedowns, net of insurance proceeds.
Reconciliation from Net Income attributable to Dole plc to
Adjusted Net Income - Unaudited
The following information is provided to give quantitative
information related to items impacting comparability. Refer to the
'Non-GAAP Financial Measures' section of this document for
additional detail on each item. Refer to the Appendix for
supplementary detail.
Three Months Ended
Nine Months Ended
September 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
(U.S. Dollars and shares in
thousands, except per share amounts)
Net income attributable to Dole plc
(Reported GAAP)
$
14,402
$
45,292
$
164,662
$
101,726
(Income) loss from discontinued
operations, net of income taxes
(6,384
)
1,672
(32,351
)
27,616
Income from continuing operations
attributable to Dole plc
8,018
46,964
132,311
129,342
Adjustments:
Amortization of intangible assets
1,621
2,536
5,780
7,726
Mark to market losses (gains)
6,301
(4,783
)
1,217
(2,926
)
Gain on asset sales
(66
)
(28,802
)
(35
)
(43,356
)
Gain on disposal of business
—
—
(75,945
)
—
Cyber-related incident
—
—
—
5,321
Impairment of goodwill
—
—
36,684
—
Other items6,7
(983
)
222
(2,709
)
1,085
Adjustments from equity method
investments
531
610
1,782
1,352
Income tax on items above and discrete tax
items
3,393
6,464
18,500
6,952
NCI impact of items above
(781
)
(645
)
(11,968
)
(2,274
)
Adjusted Net Income for Adjusted EPS
calculation (Non-GAAP)
$
18,034
$
22,566
$
105,617
$
103,222
Adjusted earnings per share – basic
(Non-GAAP)
$
0.19
$
0.24
$
1.11
$
1.09
Adjusted earnings per share – diluted
(Non-GAAP)
$
0.19
$
0.24
$
1.11
$
1.09
Weighted average shares outstanding –
basic
94,990
94,929
94,950
94,912
Weighted average shares outstanding –
diluted
95,614
95,148
95,395
95,094
__________________
6
For the three months ended September 30,
2024, other items is primarily comprised of $1.0 million of
insurance proceeds, net of asset writedowns. For the three months
ended September 30, 2023, other items is primarily comprised of
$0.2 million of asset writedowns, net of insurance proceeds.
7
For the nine months ended September 30,
2024, other items is primarily comprised of $2.7 million of
insurance proceeds, net of asset writedowns. For the nine months
ended September 30, 2023, other items is primarily comprised of
$1.1 million of asset writedowns, net of insurance proceeds.
Supplemental Reconciliation from Net Income attributable to
Dole plc to Adjusted Net Income - Unaudited
The following information is provided to give quantitative
information related to items impacting comparability. Refer to the
'Non-GAAP Financial Measures' section of this document for
additional detail on each item.
Three Months Ended September
30, 2024
(U.S. Dollars in thousands)
Revenues, net
Cost of sales
Gross profit
Gross Margin %
Selling, marketing, general
and administrative expenses
Other operating items8
Operating Income
Reported (GAAP)
$
2,062,414
(1,898,375
)
164,039
8.0
%
(115,829
)
(476
)
$
47,734
(Income) loss from discontinued
operations, net of income taxes
—
—
—
—
—
—
Amortization of intangible assets
—
—
—
1,621
—
1,621
Mark to market losses (gains)
—
270
270
—
—
270
Gain on asset sales
—
—
—
—
(66
)
(66
)
Gain on disposal of business
—
—
—
—
—
—
Impairment of goodwill
—
—
—
—
—
—
Other items
—
(986
)
(986
)
—
—
(986
)
Adjustments from equity method
investments
—
—
—
—
—
—
Income tax on items above and discrete tax
items
—
—
—
—
—
—
NCI impact of items above
—
—
—
—
—
—
Adjusted (Non-GAAP)
$
2,062,414
(1,899,091
)
163,323
7.9
%
(114,208
)
(542
)
$
48,573
_______________
8
Other operating items for the three months
ended September 30, 2024 is primarily comprised of impairment and
asset write-downs of property, plant and equipment of $2.0 million,
partially offset by a gain on asset sales of $1.6 million, as
reported on the Dole plc GAAP Condensed Consolidated Statements of
Operations.
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 items9
Operating Income
Reported (GAAP)
$
2,042,672
(1,876,292
)
166,380
8.1
%
(118,023
)
28,746
$
77,103
(Income) 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, 2024
(U.S. Dollars in thousands)
Other (expense) income,
net
Interest income
Interest expense
Income tax expense
Equity method earnings
Income from continuing
operations
Income (loss) from
discontinued operations, net of income taxes
Reported (GAAP)
$
(4,541
)
2,632
(17,473
)
(15,524
)
2,303
15,131
6,384
(Income) loss from discontinued
operations, net of income taxes
—
—
—
—
—
—
(6,384
)
Amortization of intangible assets
—
—
—
—
—
1,621
—
Mark to market losses (gains)
6,031
—
—
—
—
6,301
—
Gain on asset sales
—
—
—
—
—
(66
)
—
Gain on disposal of business
—
—
—
—
—
—
—
Impairment of goodwill
—
—
—
—
—
—
—
Other items
3
—
—
—
—
(983
)
—
Adjustments from equity method
investments
—
—
—
—
531
531
—
Income tax on items above and discrete tax
items
—
—
—
3,493
(100
)
3,393
—
NCI impact of items above
—
—
—
—
—
—
—
Adjusted (Non-GAAP)
$
1,493
2,632
(17,473
)
(12,031
)
2,734
25,928
$
—
_______________
9
Other operating items 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 Condensed
Consolidated Statements of Operations.
Three Months Ended September
30, 2023
(U.S. Dollars in thousands)
Other (expense) income,
net
Interest income
Interest expense
Income tax expense
Equity method earnings
Income from continuing
operations
Income (loss) from
discontinued operations, net of income taxes
Reported (GAAP)
$
4,817
2,311
(20,899
)
(13,017
)
5,342
55,657
(1,672
)
(Income) loss from discontinued
operations, net of income taxes
—
—
—
—
—
—
1,672
Amortization of intangible assets
—
—
—
—
—
2,536
—
Mark to market losses (gains)
(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 of items above
—
—
—
—
—
—
—
Adjusted (Non-GAAP)
$
1,147
2,311
(20,899
)
(6,414
)
5,813
31,904
$
—
Three Months Ended September
30, 2024
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)
$
21,515
$
(7,113
)
$
14,402
$
0.15
(Income) loss from discontinued
operations, net of income taxes
(6,384
)
—
(6,384
)
Amortization of intangible assets
1,621
—
1,621
Mark to market losses (gains)
6,301
—
6,301
Gain on asset sales
(66
)
—
(66
)
Gain on disposal of business
—
—
—
Impairment of goodwill
—
—
—
Other items
(983
)
—
(983
)
Adjustments from equity method
investments
531
—
531
Income tax on items above and discrete tax
items
3,393
—
3,393
NCI impact of items above
—
(781
)
(781
)
Adjusted (Non-GAAP)
$
25,928
$
(7,894
)
$
18,034
$
0.19
Weighted average shares outstanding –
diluted
95,614
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
(Income) loss from discontinued
operations, net of income taxes
1,672
—
1,672
Amortization of intangible assets
2,536
—
2,536
Mark to market losses (gains)
(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 of items above
—
(645
)
(645
)
Adjusted (Non-GAAP)
$
31,904
$
(9,338
)
$
22,566
$
0.24
Weighted average shares outstanding –
diluted
95,148
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, 2024
(U.S. Dollars in thousands)
Revenues, net
Cost of sales
Gross profit
Gross Margin %
Selling, marketing, general
and administrative expenses
Other operating
items10
Operating Income
Reported (GAAP)
$
6,307,879
(5,748,577
)
559,302
8.9
%
(351,383
)
37,836
$
245,755
(Income) loss from discontinued
operations, net of income taxes
—
—
—
—
—
—
Amortization of intangible assets
—
—
—
5,780
—
5,780
Mark to market losses (gains)
—
150
150
—
—
150
Gain on asset sales
—
—
—
—
(35
)
(35
)
Gain on disposal of business
—
—
—
—
(75,945
)
(75,945
)
Impairment of goodwill
—
—
—
—
36,684
36,684
Other items
—
(2,629
)
(2,629
)
—
—
(2,629
)
Adjustments from equity method
investments
—
—
—
—
—
—
Income tax on items above and discrete tax
items
—
—
—
—
—
—
NCI impact of items above
—
—
—
—
—
—
Adjusted (Non-GAAP)
$
6,307,879
(5,751,056
)
556,823
8.8
%
(345,603
)
(1,460
)
$
209,760
_______________
10
Other operating items for the six months
ended September 30, 2024 is primarily comprised of a gain on
disposal of business of $75.9 million and gain of asset sales of
$1.9 million, primarily offset by a goodwill impairment charge of
$36.7 million and impairment and asset write-downs of property,
plant and equipment of $3.3 million, as reported on the Dole plc
GAAP Condensed Consolidated Statements of Operations.
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
items11
Operating Income
Reported (GAAP)
$
6,173,013
(5,631,021
)
541,992
8.8
%
(354,569
)
43,442
$
230,865
(Income) loss from discontinued
operations, net of income taxes
—
—
—
—
—
—
Amortization of intangible assets
—
—
—
7,726
—
7,726
Mark to market losses (gains)
—
(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 of 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, 2024
(U.S. Dollars in thousands)
Other (expense) income,
net
Interest income
Interest expense
Income tax expense
Equity method earnings
Income from continuing
operations
Income (loss) from
discontinued operations, net of income taxes
Reported (GAAP)
$
9,458
8,335
(54,209
)
(75,385
)
8,711
142,665
32,351
(Income) loss from discontinued
operations, net of income taxes
—
—
—
—
—
—
(32,351
)
Amortization of intangible assets
—
—
—
—
—
5,780
—
Mark to market losses (gains)
1,067
—
—
—
—
1,217
—
Gain on asset sales
—
—
—
—
—
(35
)
—
Gain on disposal of business
—
—
—
—
—
(75,945
)
—
Impairment of goodwill
—
—
—
—
—
36,684
—
Other items
(80
)
—
—
—
—
(2,709
)
—
Adjustments from equity method
investments
—
—
—
—
1,782
1,782
—
Income tax on items above and discrete tax
items
—
—
—
18,800
(300
)
18,500
—
NCI impact of items above
—
—
—
—
—
—
—
Adjusted (Non-GAAP)
$
10,445
8,335
(54,209
)
(56,585
)
10,193
127,939
$
—
_______________
11
Other operating items 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 Condensed
Consolidated Statements of Operations.
Nine Months Ended September
30, 2023
(U.S. Dollars in thousands)
Other (expense) income,
net
Interest income
Interest expense
Income tax expense
Equity method earnings
Income from continuing
operations
Income (loss) from
discontinued operations, net of income taxes
Reported (GAAP)
$
7,721
7,260
(62,359
)
(40,604
)
11,508
154,391
(27,616
)
(Income) loss from discontinued
operations, net of income taxes
—
—
—
—
—
—
27,616
Amortization of intangible assets
—
—
—
—
—
7,726
—
Mark to market losses (gains)
(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 of items above
—
—
—
—
—
—
—
Adjusted (Non-GAAP)
$
7,244
7,260
(62,359
)
(33,351
)
12,559
130,545
$
—
Nine Months Ended September
30, 2024
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)
$
175,016
$
(10,354
)
$
164,662
$
1.73
(Income) loss from discontinued
operations, net of income taxes
(32,351
)
—
(32,351
)
Amortization of intangible assets
5,780
—
5,780
Mark to market losses (gains)
1,217
—
1,217
Gain on asset sales
(35
)
—
(35
)
Gain on disposal of business
(75,945
)
—
(75,945
)
Impairment of goodwill
36,684
—
36,684
Other items
(2,709
)
—
(2,709
)
Adjustments from equity method
investments
1,782
—
1,782
Income tax on items above and discrete tax
items
18,500
—
18,500
NCI impact of items above
—
(11,968
)
(11,968
)
Adjusted (Non-GAAP)
$
127,939
$
(22,322
)
$
105,617
$
1.11
Weighted average shares outstanding –
diluted
95,395
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
(Income) loss from discontinued
operations, net of income taxes
27,616
—
27,616
Amortization of intangible assets
7,726
—
7,726
Mark to market losses (gains)
(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 of items above
—
(2,274
)
(2,274
)
Adjusted (Non-GAAP)
$
130,545
$
(27,323
)
$
103,222
$
1.09
Weighted average shares outstanding –
diluted
95,094
Supplemental Reconciliation of Prior Year Segment Results to
Current Year Segment Results – Unaudited
Revenue for the Three Months
Ended
September 30, 2023
Impact of Foreign Currency
Translation
Impact of Acquisitions and
Divestitures
Like-for-like Increase
(Decrease)
September 30, 2024
(U.S. Dollars in thousands)
Fresh Fruit
$
749,210
$
—
$
—
$
49,571
$
798,781
Diversified Fresh Produce - EMEA
856,351
13,639
1,761
27,888
899,639
Diversified Fresh Produce - Americas &
ROW
470,011
(974
)
(112,618
)
33,638
390,057
Intersegment
(32,900
)
—
—
6,837
(26,063
)
Total
$
2,042,672
$
12,665
$
(110,857
)
$
117,934
$
2,062,414
Adjusted EBITDA for the Three
Months Ended
September 30, 2023
Impact of Foreign Currency
Translation
Impact of Acquisitions and
Divestitures
Like-for-like Increase
(Decrease)
September 30, 2024
(U.S. Dollars in thousands)
Fresh Fruit
$
45,111
$
(32
)
$
—
$
(2,175
)
$
42,904
Diversified Fresh Produce - EMEA
34,923
479
28
(5,067
)
30,363
Diversified Fresh Produce - Americas &
ROW
5,159
(29
)
(5,511
)
9,186
8,805
Total
$
85,193
$
418
$
(5,483
)
$
1,944
$
82,072
Revenue for the Nine Months
Ended
September 30, 2023
Impact of Foreign Currency
Translation
Impact of Acquisitions and
Divestitures
Like-for-like Increase
(Decrease)
September 30, 2024
(U.S. Dollars in thousands)
Fresh Fruit
$
2,387,163
$
—
$
—
$
87,298
$
2,474,461
Diversified Fresh Produce - EMEA
2,570,080
17,571
15,732
94,705
2,698,088
Diversified Fresh Produce - Americas &
ROW
1,310,407
(1,700
)
(240,119
)
154,408
1,222,996
Intersegment
(94,637
)
—
—
6,971
(87,666
)
Total
$
6,173,013
$
15,871
$
(224,387
)
$
343,382
$
6,307,879
Adjusted EBITDA for the Nine
Months Ended
September 30, 2023
Impact of Foreign Currency
Translation
Impact of Acquisitions and
Divestitures
Like-for-like Increase
(Decrease)
September 30, 2024
(U.S. Dollars in thousands)
Fresh Fruit
$
180,138
$
(33
)
$
—
$
2,853
$
182,958
Diversified Fresh Produce - EMEA
100,932
515
153
(2,583
)
99,017
Diversified Fresh Produce - Americas &
ROW
27,191
(48
)
(14,137
)
22,611
35,617
Total
$
308,261
$
434
$
(13,984
)
$
22,881
$
317,592
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, 2024 is
presented below. Net Debt as of September 30, 2024 was $732.0
million.
September 30, 2024
December 31, 2023
(U.S. Dollars in thousands)
Cash and cash equivalents (Reported
GAAP)
$
260,588
$
275,580
Debt (Reported GAAP):
Long-term debt, net
(878,785
)
(845,013
)
Current maturities
(87,023
)
(222,940
)
Bank overdrafts
(16,451
)
(11,488
)
Total debt, net
(982,259
)
(1,079,441
)
Add: Debt discounts and debt issuance
costs (Reported GAAP)
(10,312
)
(14,395
)
Total gross debt
(992,571
)
(1,093,836
)
Net Debt (Non-GAAP)
$
(731,983
)
$
(818,256
)
Free Cash Flow from Continuing Operations
Reconciliation
Nine Months Ended
September 30, 2024
September 30, 2023
(U.S. Dollars in thousands)
Net cash provided by operating activities
- continuing operations (Reported GAAP)
$
106,246
$
157,134
Less: Capital expenditures (Reported
GAAP)12
(56,788
)
(51,334
)
Free cash flow from continuing
operations (Non-GAAP)
$
49,458
$
105,800
__________________
12
Capital expenditures do not include
amounts attributable to discontinued operations.
Non-GAAP Financial Measures
Dole plc’s results are determined in accordance with U.S.
GAAP.
In addition to its results under U.S. GAAP, in this Press
Release, we also present Dole plc’s Adjusted EBIT, Adjusted EBITDA,
Adjusted Net Income, Adjusted EPS, Free Cash Flow from Continuing
Operations and Net Debt, which are supplemental measures of
financial performance that are not required by, or presented in
accordance with, U.S. GAAP (collectively, the "non-GAAP financial
measures"). We present these non-GAAP financial measures, because
we believe they assist investors and analysts in comparing our
operating performance across reporting periods on a consistent
basis by excluding items that we do not believe are indicative of
our core operating performance. These non-GAAP financial measures
have limitations as analytical tools, and you should not consider
them in isolation or as a substitute for analysis of our operating
results, cash flows or any other measure prescribed by U.S. GAAP.
Our presentation of non-GAAP financial measures should not be
construed as an inference that our future results will be
unaffected by any of the adjusted items or that any projections and
estimates will be realized in their entirety or at all. In
addition, adjustment items that are excluded from non-GAAP results
can have a material impact on equivalent GAAP earnings, financial
measures and cash flows.
Adjusted EBIT is calculated from GAAP net income by: (1)
subtracting the income or adding the loss from discontinued
operations, net of income taxes; (2) adding the income tax expense
or subtracting the income tax benefit; (3) adding interest expense;
(4) adding mark to market losses or subtracting mark to market
gains related to unrealized impacts from certain derivative
instruments and foreign currency denominated borrowings, realized
impacts on noncash settled foreign currency denominated borrowings,
net foreign currency impacts on liquidated entities and fair value
movements on contingent consideration; (5) other items which are
separately stated based on materiality, which during the three and
nine months ended September 30, 2024 and September 30, 2023,
included adding or subtracting asset write-downs from extraordinary
events, net of insurance proceeds, subtracting the gain or adding
the loss on the disposal of business interests, subtracting the
gain or adding the loss on asset sales for assets held for sale and
actively marketed property, adding impairment charges on goodwill
and adding costs incurred for the cyber-related incident; and (6)
the Company’s share of these items from equity method
investments.
Adjusted EBITDA is calculated from GAAP net income by: (1)
subtracting the income or adding the loss from discontinued
operations, net of income taxes; (2) adding the income tax expense
or subtracting the income tax benefit; (3) adding interest expense;
(4) adding depreciation charges; (5) adding amortization charges on
intangible assets; (6) adding mark to market losses or subtracting
mark to market gains related to unrealized impacts from certain
derivative instruments and foreign currency denominated borrowings,
realized impacts on noncash settled foreign currency denominated
borrowings, net foreign currency impacts on liquidated entities and
fair value movements on contingent consideration; (7) other items
which are separately stated based on materiality, which during the
three and nine months ended September 30, 2024 and September 30,
2023, included adding or subtracting asset write-downs from
extraordinary events, net of insurance proceeds, subtracting the
gain or adding the loss on the disposal of business interests,
subtracting the gain or adding the loss on asset sales for assets
held for sale and actively marketed property, adding impairment
charges on goodwill and adding costs incurred for the cyber-related
incident; and (8) the Company’s share of these items from equity
method investments.
Adjusted Net Income is calculated from GAAP net income
attributable to Dole plc by: (1) subtracting the income or adding
the loss from discontinued operations, net of income taxes; (2)
adding amortization charges on intangible assets; (3) adding mark
to market losses or subtracting mark to market gains related to
unrealized impacts from certain derivative instruments and foreign
currency denominated borrowings, realized impacts on noncash
settled foreign currency denominated borrowings, net foreign
currency impacts on liquidated entities and fair value movements on
contingent consideration; (4) other items which are separately
stated based on materiality, which during the three and nine months
ended September 30, 2024 and September 30, 2023, included adding or
subtracting asset write-downs from extraordinary events, net of
insurance proceeds, subtracting the gain or adding the loss on the
disposal of business interests, subtracting the gain or adding the
loss on asset sales for assets held for sale and actively marketed
property, adding impairment charges on goodwill and adding costs
incurred for the cyber-related incident; (5) the Company’s share of
these items from equity method investments; (6) excluding the tax
effect of these items and discrete tax adjustments; and (7)
excluding the effect of these items attributable to non-controlling
interests.
Adjusted Earnings per Share is calculated from Adjusted Net
Income divided by diluted weighted average number of shares in the
applicable period.
Net Debt is a non-GAAP financial measure, calculated as GAAP
cash and cash equivalents, less GAAP current and long-term debt. It
also excludes GAAP unamortized debt discounts and debt issuance
costs.
Free cash flow from continuing operations is calculated from
GAAP net cash used in or provided by operating activities for
continuing operations less GAAP capital expenditures.
Like-for-like basis refers to the U.S. GAAP measure or non-GAAP
financial measure excluding the impact of foreign currency
translation movements and acquisitions and divestitures.
Dole is not able to provide a reconciliation for projected FY'24
results without taking unreasonable efforts.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241113355212/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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