DOLE - Dole plc Reports First Quarter 2024 Financial Results

May, 15 2024 06:00 AM Dole plc

Dole plc (NYSE: DOLE) ("Dole" or the "Group" or the "Company") today released its financial results for the three months ended March 31, 2024.

Highlights for the three months ended March 31, 2024:

Strong first quarter Group results with growth across all segments
Revenue of $2.1 billion, an increase of 6.6%
Net Income of $65.4 million, an increase of 219.5%
Adjusted EBITDA ¹ of $110.1 million, an increase of 9.7%
Adjusted Net Income of $40.6 million and Adjusted Diluted EPS of $0.43
Completed the sale of 65% equity stake in Progressive Produce for gross proceeds of $120.3 million and gain of $74.0 million

Financial Highlights - Unaudited



Three Months Ended



March 31, 2024

March 31, 2023









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

Revenue

2,121

1,989

Income from continuing operations ²

71.5

35.0

Net Income

65.4

20.5

Net Income attributable to Dole plc

70.1

14.2

Diluted EPS from continuing operations

0.80

0.30

Diluted EPS

0.74

0.15

Adjusted EBITDA ¹

110.1

100.4

Adjusted Net Income ¹

40.6

32.3

Adjusted Diluted EPS ¹

0.43

0.34

_______________________

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 pleased to deliver a strong result for the first quarter of 2024, with revenue growth of 6.6% and Adjusted EBITDA increasing 9.7% to $110.1 million.

"We successfully completed the sale of our 65% equity stake in Progressive Produce in March and used the net proceeds to strengthen our financial position by reducing our long-term debt by $100 million. At the end of the quarter, our net debt was $776 million.

"Our strong start to the year positions us well to deliver another good result in 2024. For the full year, we are maintaining our target to deliver Adjusted EBITDA in line with 2023 on a like-for-like basis. Adjusting for the sale of Progressive Produce, this implies an Adjusted EBITDA target of at least $360 million.”

Group Results - First Quarter

Revenue increased 6.6%, or $132.2 million, due to strong operational performance across all segments and a $12.8 million favorable impact of foreign currency translation, partially offset by a net negative impact from acquisitions and divestitures of $13.3 million. On a like-for-like basis ³ , revenue was 6.7%, or $132.6 million, ahead of prior year.

Net Income increased 219.5% or $45.0 million, due to strong operational performance across the Group, as well as the gain on the sale of Progressive Produce of $74.0 million, offset partially by an impairment of goodwill of $36.7 million.

Adjusted EBITDA increased 9.7%, or $9.7 million, primarily driven by stronger performance in the Diversified Americas and Diversified EMEA segments. On a like-for-like basis, Adjusted EBITDA increased 10.8%, or $10.8 million.

Adjusted Net Income increased $8.3 million, predominantly due to increases in Adjusted EBITDA as noted above and lower depreciation and interest expense, partially offset by higher tax expense. Adjusted Diluted EPS for the three months ended March 31, 2024 was $0.43 compared to $0.34 in the prior year.

_______________

³ Like-for-like basis refers to the measure excluding the impact of foreign currency translation movements and acquisitions and divestitures.

Selected Segmental Financial Information (Unaudited)


Three Months Ended

March 31, 2024

March 31, 2023









(U.S. Dollars in thousands)

Revenue

Adjusted EBITDA

Revenue

Adjusted EBITDA
Fresh Fruit
$
824,229


$
69,435

$
798,910


$
69,211
Diversified Fresh Produce - EMEA

853,598



25,959


798,100



23,406
Diversified Fresh Produce - Americas & ROW

476,882



14,705


422,751



7,770
Intersegment

(33,335
)


—


(30,594
)


—
Total
$
2,121,374


$
110,099

$
1,989,167


$
100,387

Fresh Fruit

Revenue increased 3.2%, or $25.3 million, primarily due to higher worldwide volumes of bananas and pineapples sold and an increase in worldwide pricing of pineapples, offset in part by lower worldwide pricing for bananas.

Adjusted EBITDA increased 0.3%, or $0.2 million, driven by higher volumes and lower fruit sourcing costs, partially offset by lower pricing and decreases in commercial cargo.

Diversified Fresh Produce – EMEA

Revenue increased 7.0%, or $55.5 million, primarily due to strong performance in Ireland, the U.K. and Northern Europe, a favorable impact from foreign currency translation of $12.7 million and an incremental net positive impact of $6.2 million from acquisitions. On a like-for-like basis, revenue was 4.6%, or $36.7 million, ahead of prior year.

Adjusted EBITDA increased 10.9%, or $2.6 million, primarily driven by strong performance in Northern Europe and South Africa, as well as by a positive impact of $0.3 million from foreign currency translation. On a like-for-like basis, Adjusted EBITDA was 10.0%, or $2.3 million, ahead of prior year.

Diversified Fresh Produce – Americas & ROW

Revenue increased 12.8%, or $54.1 million, primarily driven by higher volumes of cherries sold, as a result of seasonal timing differences, improved pricing and volumes in avocados and generally strong volumes and better pricing across most commodities. These positive impacts were partially offset by decreases in berries and lower sales from the Progressive Produce business following its disposal in mid-March 2024. On a like-for-like basis, revenue was 17.4%, or $73.4 million, ahead of the prior year.

Adjusted EBITDA increased 89.3%, or $6.9 million, primarily driven by higher cherry revenue, improved performance in avocados in North America and generally stronger pricing and higher volumes across most commodities, partially offset by the impact of the disposal of the Progressive Produce business. On a like-for-like basis, Adjusted EBITDA was 106.0%, or $8.2 million, ahead of the prior year.

Capital Expenditures

Cash capital expenditures from continuing operations for the three months ended March 31, 2024 were $18.2 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 lease from continuing operations were $7.0 million for the three months ended March 31, 2024.

Sale of Progressive Produce

On March 13, 2024, the Company completed the sale of its 65.0% equity interest in the Progressive Produce business to PTF Holdings. As a result of the sale, Dole received gross proceeds of $120.3 million in cash and recognized a gain on the sale of $74.0 million. On April 25, 2024, Dole voluntarily prepaid $100.0 million of its Term Loan facilities with proceeds from the sale of Progressive Produce.

Free Cash Flow from Continuing Operations and Net Debt

Free cash flow from continuing operations was an outflow of $53.2 million for the three months ended March 31, 2024. Free cash flow was primarily driven by normal seasonal impacts. There were outflows from receivables based on higher sales and timing of collections, as well as higher inventories of finished goods, partially offset by the impact of higher accrued liabilities. Net Debt as of March 31, 2024 was $775.8 million.

Outlook for Fiscal Year 2024 (forward-looking statement)

We are very pleased with the strong start we have made to fiscal year 2024 and believe this puts us in a good position to deliver a strong overall result for the year.

While still early in the year and forecasting remains complex, we are maintaining our target to deliver full year Adjusted EBITDA in line with 2023 on a like-for-like basis. Adjusting for the disposal of Progressive Produce, this implies an Adjusted EBITDA target of at least $360 million for the full year.

For fiscal year 2024, we are maintaining our capital expenditure from continuing operations guidance to be in the range of $110 - $120 million and are reducing our interest expense guidance to be in the range of $75 - $80 million.

Dividend

On May 14, 2024, the Board of Directors of Dole plc declared a cash dividend for the first quarter of 2024 of $0.08 per share, payable on July 5, 2024 to shareholders of record on June 12, 2024. A cash dividend of $0.08 per share was paid on April 4, 2024 for the fourth 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 first quarter 2024 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 U.S. or +353 (1) 582 2023 in Ireland and +44 20 3481 4247 for U.K. and other international participants. The conference ID is 2520960.

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

March 31, 2024

March 31, 2023





(U.S. Dollars and shares in thousands, except per share amounts)
Revenues, net
$
2,121,374


$
1,989,167

Cost of sales

(1,926,697
)


(1,810,128
)
Gross profit

194,677



179,039

Selling, marketing, general and administrative expenses

(118,950
)


(120,879
)
Gain on disposal of business

73,950



—

Gain on asset sales

417



3,973

Impairment of goodwill

(36,684
)


—

Impairment of property, plant and equipment

(1,277
)


—

Operating income

112,133



62,133

Other income, net

7,622



1,775

Interest income

3,079



2,309

Interest expense

(17,948
)


(21,712
)
Income from continuing operations before income taxes and equity earnings

104,886



44,505

Income tax expense

(34,401
)


(10,994
)
Equity method earnings

1,002



1,478

Income from continuing operations

71,487



34,989

Loss from discontinued operations, net of income taxes

(6,051
)


(14,506
)
Net income

65,436



20,483

Net loss (income) attributable to noncontrolling interests

4,707



(6,324
)
Net income attributable to Dole plc
$
70,143


$
14,159





Income (loss) per share - basic:



Continuing operations
$
0.80


$
0.30

Discontinued operations

(0.06
)


(0.15
)
Net income per share attributable to Dole plc - basic
$
0.74


$
0.15





Income (loss) per share - diluted:



Continuing operations
$
0.80


$
0.30

Discontinued operations

(0.06
)


(0.15
)
Net income per share attributable to Dole plc - diluted
$
0.74


$
0.15





Weighted-average shares:



Basic

94,929



94,899

Diluted

95,229



95,024

Condensed Consolidated Statements of Cash Flows - Unaudited



Three Months Ended

March 31, 2024

March 31, 2023




Operating Activities
(U.S. Dollars in thousands)
Net income
$
65,436


$
20,483

Loss from discontinued operations, net of taxes

6,051



14,506

Income from continuing operations

71,487



34,989

Adjustments to reconcile income from continuing operations to net cash (used in) provided by operating activities - continuing operations:



Depreciation and amortization

24,121



26,919

Impairment of goodwill

36,684



—

Impairment of fixed assets

1,277



—

Net gain on sale of assets and asset write-offs

(417
)


(3,973
)
Net gain on sale of business

(73,950
)


—

Stock-based compensation expense

1,832



1,330

Equity method earnings

(1,002
)


(1,478
)
Amortization of debt discounts and debt issuance costs

1,591



1,589

Deferred tax (benefit) expense

(11,062
)


1,481

Pension and other postretirement benefit plan expense

992



1,970

Other

(4,658
)


(3,089
)
Changes in operating assets and liabilities:



Receivables, net of allowances

(123,162
)


(6,442
)
Inventories

(43,605
)


(9,836
)
Prepaids, other current assets and other assets

(1,443
)


(174
)
Accounts payable, accrued liabilities and other liabilities

86,359



(30,639
)
Net cash (used in) provided by operating activities - continuing operations

(34,956
)


12,647

Investing activities



Sales of assets

1,023



6,529

Capital expenditures

(18,238
)


(17,609
)
Proceeds from sale of business, net of transaction costs

115,845



—

Insurance proceeds

527



—

Purchases of investments

(187
)


(790
)
(Purchases) sales of unconsolidated affiliates

(374
)


1,507

Other

(2,097
)


(1,388
)
Net cash provided by (used in) investing activities - continuing operations

96,499



(11,751
)
Financing activities



Proceeds from borrowings and overdrafts

490,871



392,054

Repayments on borrowings and overdrafts

(573,994
)


(347,448
)
Dividends paid to shareholders

(7,594
)


(7,592
)
Dividends paid to noncontrolling interests

(7,173
)


(1,918
)
Other noncontrolling interest activity, net

—



(476
)
Payment of contingent consideration

(796
)


(1,151
)
Net cash (used in) provided by financing activities - continuing operations

(98,686
)


33,469

Effect of foreign exchange rate changes on cash

(5,630
)


2,697

Net cash provided by operating activities - discontinued operations

5,753



2,580

Net cash used in investing activities - discontinued operations

(382
)


(2,282
)
Cash provided by discontinued operations, net

5,371



298

(Decrease) increase in cash and cash equivalents

(37,402
)


37,360

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
$
239,603


$
266,200

Supplemental cash flow information:



Income tax payments, net of refunds
$
(10,498
)

$
(8,156
)
Interest payments on borrowings
$
(17,394
)

$
(19,417
)

Condensed Consolidated Balance Sheets - Unaudited





March 31, 2024

December 31, 2023




ASSETS
(U.S. Dollars and shares in thousands)
Cash and cash equivalents
$
239,397


$
275,580

Short-term investments

6,099



5,899

Trade receivables, net of allowances for credit losses of $19,354 and $18,360, respectively

621,282



538,177

Grower advance receivables, net of allowances for credit losses of $17,627 and $19,839, respectively

105,146



109,958

Other receivables, net of allowances for credit losses of $13,410 and $13,227, respectively

120,986



117,069

Inventories, net of allowances of $4,522 and $4,792, respectively

409,482



378,592

Prepaid expenses

59,773



61,724

Other current assets

17,149



17,401

Fresh Vegetables current assets held for sale

405,733



414,457

Other assets held for sale

1,827



1,832

Total current assets

1,986,874



1,920,689

Long-term investments

15,696



15,970

Investments in unconsolidated affiliates

130,992



131,704

Actively marketed property

13,781



13,781

Property, plant and equipment, net of accumulated depreciation of $447,605 and $444,775, respectively

1,086,843



1,102,234

Operating lease right-of-use assets

326,817



340,458

Goodwill

435,962



513,312

DOLE brand

306,280



306,280

Other intangible assets, net of accumulated amortization of $117,551 and $134,420, respectively

30,643



41,232

Other assets

104,667



109,048

Deferred tax assets, net

69,004



66,485

Total assets
$
4,507,559


$
4,561,193

LIABILITIES AND EQUITY



Accounts payable
$
599,445


$
670,904

Income taxes payable

63,396



22,917

Accrued liabilities

417,767



357,427

Bank overdrafts

12,054



11,488

Current portion of long-term debt, net

215,281



222,940

Current maturities of operating leases

62,910



63,653

Payroll and other tax

26,032



27,791

Contingent consideration

1,152



1,788

Pension and other postretirement benefits

16,038



16,570

Fresh Vegetables current liabilities held for sale

305,753



291,342

Dividends payable and other current liabilities

24,580



29,892

Total current liabilities

1,744,408



1,716,712

Long-term debt, net

774,361



845,013

Operating leases, less current maturities

269,735



287,991

Deferred tax liabilities, net

83,704



92,653

Income taxes payable, less current portion

16,664



16,664

Contingent consideration, less current portion

7,356



7,327

Pension and other postretirement benefits, less current portion

113,418



121,689

Other long-term liabilities

51,990



52,295

Total liabilities

3,061,636



3,140,344





Redeemable noncontrolling interests

33,766



34,185

Stockholders’ equity:



Common stock — $0.01 par value; 300,000 shares authorized and 94,929 shares outstanding as of March 31, 2024 and December 31, 2023

949



949

Additional paid-in capital

799,515



796,800

Retained earnings

624,983



562,562

Accumulated other comprehensive loss

(122,124
)


(110,791
)
Total equity attributable to Dole plc

1,303,323



1,249,520

Equity attributable to noncontrolling interests

108,834



137,144

Total equity

1,412,157



1,386,664

Total liabilities, redeemable noncontrolling interests and equity
$
4,507,559


$
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

March 31, 2024

March 31, 2023





(U.S. Dollars in thousands)
Net income (Reported GAAP)
$
65,436


$
20,483

Loss from discontinued operations, net of income taxes

6,051



14,506

Income from continuing operations (Reported GAAP)

71,487



34,989

Income tax expense

34,401



10,994

Interest expense

17,948



21,712

Mark to market (gains) losses

(2,870
)


822

Loss (gain) on asset sales

31



(4,167
)
Gain on disposal of business

(73,950
)


—

Cyber-related incident

—



4,750

Impairment of goodwill

36,684



—

Other items ⁴

(1,800
)


673

Adjustments from equity method investments

1,514



1,323

Adjusted EBIT (Non-GAAP)

83,445



71,096

Depreciation

21,848



24,303

Amortization of intangible assets

2,273



2,616

Depreciation and amortization adjustments from equity method investments

2,533



2,372

Adjusted EBITDA (Non-GAAP)
$
110,099


$
100,387

____________________

⁴ For the three months ended March 31, 2024, other items is primarily comprised of $1.8 million of insurance proceeds, net of asset writedowns. For the three months ended March 31, 2023, other items is primarily comprised of $0.7 million of asset writedowns, net of insurance proceeds.

Reconciliation from Net Income attributable to Dole plc to Adjusted Net Income - Unaudited


Three Months Ended

March 31, 2024

March 31, 2023





(U.S. Dollars and shares in thousands, except per share amounts)
Net income attributable to Dole plc (Reported GAAP)
$
70,143


$
14,159

Loss from discontinued operations, net of income taxes

6,051



14,506

Income from continuing operations attributable to Dole plc

76,194



28,665

Adjustments:



Amortization of intangible assets

2,273



2,616

Mark to market (gains) losses

(2,870
)


822

Loss (gain) on asset sales

31



(4,167
)
Gain on disposal of business

(73,950
)


—

Cyber-related incident

—



4,750

Impairment of goodwill

36,684



—

Other items ⁵

(1,800
)


673

Adjustments from equity method investments

531



119

Income tax on items above and discrete tax items

14,319



(309
)
NCI impact on items above

(10,861
)


(893
)
Adjusted Net Income for Adjusted EPS calculation (Non-GAAP)
$
40,551


$
32,276





Adjusted earnings per share – basic (Non-GAAP)
$
0.43


$
0.34

Adjusted earnings per share – diluted (Non-GAAP)
$
0.43


$
0.34

Weighted average shares outstanding – basic

94,929



94,899

Weighted average shares outstanding – diluted

95,229



95,024

______________

⁵ For the three months ended March 31, 2024, other items is primarily comprised of $1.8 million of insurance proceeds, net of asset writedowns. For the three months ended March 31, 2023, other items is primarily comprised of $0.7 million of asset writedowns, net of insurance proceeds.

Supplemental Reconciliation from Net Income attributable to Dole plc to Adjusted Net Income - Unaudited


Three Months Ended March 31, 2024 (U.S. Dollars in thousands)

Revenues, net
Cost of sales
Gross profit
Gross Margin %
Selling, marketing, general and administrative expenses
Other operating charges ⁶
Operating Income
Reported (GAAP)
$
2,121,374
(1,926,697
)
194,677

*9.2*
%
(118,950
)
36,406

$
112,133

Loss from discontinued operations, net of income taxes

—
—

—


—

—


—

Amortization of intangible assets

—
—

—

2,273

—


2,273

Mark to market (gains) losses

—
(120
)
(120
)
—

—


(120
)
Loss (gain) on asset sales

—
—

—

—

31


31

Gain on disposal of business

—
—

—

—

(73,950
)

(73,950
)
Impairment of goodwill

—
—

—

—

36,684


36,684

Other items

—
(1,800
)
(1,800
)
—

—


(1,800
)
Adjustments from equity method investments

—
—

—

—

—


—

Income tax on items above and discrete tax items

—
—

—

—

—


—

NCI impact on items above

—
—

—

—

—


—

Adjusted (Non-GAAP)
$
2,121,374
(1,928,617
)
192,757

*9.1*
%
(116,677
)
(829
)
$
75,251

____________________

⁶ Other operating charges for the three months ended March 31, 2024 is primarily comprised of a gain on disposal of business of $74.0 million, offset by a goodwill impairment charge of $36.7 million and a fixed asset impairment charge of $1.3 million, as reported on the Dole plc GAAP Condensed Consolidated Statements of Operations.


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

Revenues, net
Cost of sales
Gross profit
Gross Margin %
Selling, marketing, general and administrative expenses
Other operating charges ⁷
Operating Income
Reported (GAAP)
$
1,989,167
(1,810,128
)
179,039

*9.0*
%
(120,879
)
3,973

$
62,133

Loss from discontinued operations, net of income taxes

—
—

—


—

—


—

Amortization of intangible assets

—
—

—

2,616

—


2,616

Mark to market (gains) losses

—
(1,390
)
(1,390
)
—

—


(1,390
)
Loss (gain) on asset sales

—
—

—

—

(4,167
)

(4,167
)
Cyber-related incident

—
—

—

4,750

—


4,750

Other items

—
673

673

—

—


673

Adjustments from equity method investments

—
—

—

—

—


—

Income tax on items above and discrete tax items

—
—

—

—

—


—

NCI impact on items above

—
—

—

—

—


—

Adjusted (Non-GAAP)
$
1,989,167
(1,810,845
)
178,322

*9.0*
%
(113,513
)
(194
)
$
64,615

_____________________

⁷ Other operating charges for the three months ended March 31, 2023 is comprised of gains on asset sales of $4.0 million, as reported on the Dole plc GAAP Condensed Consolidated Statements of Operations.


Three Months Ended March 31, 2024 (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)
$
7,622

3,079
(17,948
)
(34,401
)
1,002

71,487

$
(6,051
)
Loss from discontinued operations, net of income taxes

—

—
—

—

—

—


6,051

Amortization of intangible assets

—

—
—

—

—

2,273


—

Mark to market (gains) losses

(2,750
)
—
—

—

—

(2,870
)

—

Loss (gain) on asset sales

—

—
—

—

—

31


—

Gain on disposal of business

—

—
—

—

—

(73,950
)

—

Impairment of goodwill

—

—
—

—

—

36,684


—

Other items

—

—
—

—

—

(1,800
)

—

Adjustments from equity method investments

—

—
—

—

531

531


—

Income tax on items above and discrete tax items

—

—
—

14,419

(100
)
14,319


—

NCI impact on items above

—

—
—

—

—

—


—

Adjusted (Non-GAAP)
$
4,872

3,079
(17,948
)
(19,982
)
1,433

46,705

$
—


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

Other income, net
Interest income
Interest expense
Income tax expense
Equity method earnings
Income from continuing operations
Loss from discontinued operations, net of income taxes
Reported (GAAP)
$
1,775
2,309
(21,712
)
(10,994
)
1,478

34,989

$
(14,506
)
Loss from discontinued operations, net of income taxes

—
—
—

—

—

—


14,506

Amortization of intangible assets

—
—
—

—

—

2,616


—

Mark to market (gains) losses

2,212
—
—

—

—

822


—

Loss (gain) on asset sales

—
—
—

—

—

(4,167
)

—

Cyber-related incident

—
—
—

—

—

4,750


—

Other items

—
—
—

—

—

673


—

Adjustments from equity method investments

—
—
—

—

119

119


—

Income tax on items above and discrete tax items

—
—
—

(228
)
(81
)
(309
)

—

NCI impact on items above

—
—
—

—

—

—


—

Adjusted (Non-GAAP)
$
3,987
2,309
(21,712
)
(11,222
)
1,516

39,493

$
—


Three Months Ended March 31, 2024 U.S. Dollars and shares in thousands, except per share amounts


Net income
Net loss (income) attributable to noncontrolling interests
Net income attributable to Dole plc
Diluted net income per share
Reported (GAAP)
$
65,436

4,707

$
70,143

$
0.74
Loss from discontinued operations, net of income taxes

6,051

—


6,051


Amortization of intangible assets

2,273

—


2,273

Mark to market (gains) losses

(2,870
)
—


(2,870
)
Loss (gain) on asset sales

31

—


31

Gain on disposal of business

(73,950
)
—


(73,950
)
Impairment of goodwill

36,684

—


36,684

Other items

(1,800
)
—


(1,800
)
Adjustments from equity method investments

531

—


531

Income tax on items above and discrete tax items

14,319

—


14,319

NCI impact on items above

—

(10,861
)

(10,861
)
Adjusted (Non-GAAP)
$
46,705

(6,154
)
$
40,551

$
0.43





Weighted average shares outstanding – diluted

95,229


Three Months Ended March 31, 2023 U.S. Dollars and shares in thousands, except per share amounts


Net income
Net income attributable to noncontrolling interests
Net income attributable to Dole plc
Diluted net income per share
Reported (GAAP)
$
20,483

(6,324
)
$
14,159

$
0.15
Loss from discontinued operations, net of income taxes

14,506

—


14,506


Amortization of intangible assets

2,616

—


2,616

Mark to market (gains) losses

822

—


822

Loss (gain) on asset sales

(4,167
)
—


(4,167
)
Cyber-related incident

4,750

—


4,750

Other items

673

—


673

Adjustments from equity method investments

119

—


119

Income tax on items above and discrete tax items

(309
)
—


(309
)
NCI impact on items above

—

(893
)

(893
)
Adjusted (Non-GAAP)
$
39,493

(7,217
)
$
32,276

$
0.34





Weighted average shares outstanding – diluted

95,024

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


Revenue for the Three Months Ended

March 31, 2023

Impact of Foreign Currency Translation

Impact of Acquisitions and Divestitures

Like-for-like Increase (Decrease)

March 31, 2024











(U.S. Dollars in thousands)
Fresh Fruit
$
798,910


$
—

$
—


$
25,319


$
824,229

Diversified Fresh Produce - EMEA

798,100



12,669


6,172



36,657



853,598

Diversified Fresh Produce - Americas & ROW

422,751



173


(19,441
)


73,399



476,882

Intersegment

(30,594
)


—


—



(2,741
)


(33,335
)
Total
$
1,989,167


$
12,842

$
(13,269
)

$
132,634


$
2,121,374


Adjusted EBITDA for the Three Months Ended

March 31, 2023

Impact of Foreign Currency Translation

Impact of Acquisitions and Divestitures

Like-for-like Increase (Decrease)

March 31, 2024











(U.S. Dollars in thousands)
Fresh Fruit
$
69,211

$
(46
)

$
—


$
270

$
69,435
Diversified Fresh Produce - EMEA

23,406


349



(132
)


2,336


25,959
Diversified Fresh Produce - Americas & ROW

7,770


(9
)


(1,289
)


8,233


14,705
Total
$
100,387

$
294


$
(1,421
)

$
10,839

$
110,099

Net Debt Reconciliation

Net Debt is the primary measure used by management to analyze the Company’s capital structure. Net Debt is a non-GAAP financial measure, calculated as cash and cash equivalents, less current and long-term debt. It also excludes debt discounts and debt issuance costs. The calculation of Net Debt as of March 31, 2024 is presented below. Net Debt as of March 31, 2024 was $775.8 million.


March 31, 2024

December 31, 2023





(U.S. Dollars in thousands)
Cash and cash equivalents (Reported GAAP)
$
239,397


$
275,580

Debt (Reported GAAP):



Long-term debt, net

(774,361
)


(845,013
)
Current maturities

(215,281
)


(222,940
)
Bank overdrafts

(12,054
)


(11,488
)
Total debt, net

(1,001,696
)


(1,079,441
)
Less: Debt discounts and debt issuance costs (Reported GAAP)

(13,518
)


(14,395
)
Total gross debt

(1,015,214
)


(1,093,836
)
Net Debt (Non-GAAP)
$
(775,817
)

$
(818,256
)

Free Cash Flow from Continuing Operations Reconciliation


Three Months Ended

March 31, 2024

March 31, 2023





(U.S. Dollars in thousands)
Net cash (used in) provided by operating activities - continuing operations (Reported GAAP)
$
(34,956
)

$
12,647

Less: Capital expenditures (Reported GAAP) ⁸

(18,238
)


(17,609
)
Free cash flow from continuing operations (Non-GAAP)
$
(53,194
)

$
(4,962
)

____________________

⁸ 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 months ended March 31, 2024 and March 31, 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 months ended March 31, 2024 and March 31, 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 months ended March 31, 2024 and March 31, 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/20240515539212/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

Company Name:	Dole plc
Stock Symbol:	DOLE
Market:	NYSE
Website:	doleplc.com

Twitter