Dole plc Reports Fourth Quarter and Full Year 2023 Financial Results
Dole plc (NYSE:DOLE) ("Dole" or the "Group" or the "Company") today released its financial results for the three months and year ended December 31, 2023.
Highlights for the year ended December 31, 2023:
- Very strong full year results achieved following a year of good momentum for the Group
- Revenue of $8.2 billion, an increase of 2.8%
- Net income of $155.7 million, an increase of 39.3%, and Diluted EPS of $1.30
- Adjusted EBITDA1 of $385.1 million, an increase of $24.7 million, or 6.9%
- Adjusted Net Income of $118.1 million and Adjusted Diluted EPS of $1.24
- Free Cash Flow from Continuing Operations of $220.6 million
- Net Debt of $818.3 million, a reduction of $204.2 million
Financial Highlights - Unaudited
|
Three Months Ended |
|
Year Ended |
|||||
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
|
(U.S. Dollars in millions, except per share amounts) |
|||||||
Revenue |
2,072 |
|
2,043 |
|
8,245 |
|
8,024 |
|
Income from Continuing Operations2 |
23.1 |
|
21.7 |
|
177.5 |
|
168.2 |
|
Net Income |
28.9 |
|
13.4 |
|
155.7 |
|
111.8 |
|
Net Income attributable to Dole plc |
22.3 |
|
6.8 |
|
124.1 |
|
86.5 |
|
Diluted EPS from Continuing Operations |
0.17 |
|
0.16 |
|
1.53 |
|
1.51 |
|
Diluted EPS |
0.23 |
|
0.07 |
|
1.30 |
|
0.91 |
|
Adjusted EBITDA1 |
76.9 |
|
77.5 |
|
385.1 |
|
360.4 |
|
Adjusted Net Income1 |
14.8 |
|
17.3 |
|
118.1 |
|
136.4 |
|
Adjusted Diluted EPS1 |
0.16 |
|
0.18 |
|
1.24 |
|
1.44 |
|
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 consolidated statements of operations, its assets and liabilities are separately presented in our consolidated balance sheets, and its cash flows are presented separately in our 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:
"2023 was a year of positive development for the Group. We are very pleased with our strong full year results, delivering Adjusted EBITDA growth of 6.9% and reducing our net debt by over $200 million.
Earlier this week, we announced an agreement to sell our 65% equity stake in Progressive Produce to Arable Capital Partners. The proceeds from this sale will be used to further strengthen our financial position and increase our focus on our core activities.
We believe our business is well positioned to deliver another good result in 2024, and at this early stage of the year, our target is to deliver full year Adjusted EBITDA in line with 2023 on a like-for-like basis.
Our results in 2023 would not be possible without the efforts of our people, and we extend thanks to everyone for their continued dedication and contributions during this past year."
Group Results - Fourth Quarter
Revenue increased 1.5%, or $29.7 million, primarily due to a positive impact from foreign currency translation of $33.4 million, a net positive impact from acquisitions and divestitures of $12.2 million and an increase in revenue in the Diversified EMEA segment on a like-for-like basis3. Excluding the impact of foreign currency translation and acquisitions and divestitures, on a like-for-like basis, Group revenue decreased 0.8%, or $15.9 million, driven partially by lower revenue in the Diversified Americas segment.
Adjusted EBITDA decreased 0.8%, or $0.7 million, primarily driven by a decrease for the Fresh Fruit segment against a very strong prior year comparative, partially offset by a strong performance in the Diversified EMEA segment. On a like-for-like basis, Adjusted EBITDA decreased 2.0%, or $1.5 million.
Adjusted Net Income decreased $2.4 million, predominantly due to the decreases in Adjusted EBITDA and higher interest expense. Adjusted Diluted EPS was $0.16 compared to $0.18 in the prior year.
Group Results - Full Year
Revenue increased 2.8%, or $220.9 million, and, on a like-for-like basis, revenue increased 2.0%, or $158.3 million. The increase was driven by increases in the Diversified EMEA and Fresh Fruit segments primarily as a result of inflation-justified price increases, a positive impact from foreign currency translation of $26.7 million and a net positive impact from acquisitions and divestitures of $35.8 million. These positive impacts were partially offset by lower revenue in the Diversified Americas segment.
Adjusted EBITDA increased 6.9%, or $24.7 million, primarily due to stronger performance in the Diversified EMEA and Fresh Fruit segments, partially offset by a lower result in the Diversified Americas segment due to seasonal timing differences in the Chilean cherry season. On a like-for-like basis, Adjusted EBITDA increased 5.9%, or $21.2 million.
Adjusted Net Income decreased by $18.3 million, predominantly due to higher interest expense and tax expense, partially offset by the increases in Adjusted EBITDA as noted above and lower depreciation expense. Adjusted Diluted EPS for the year ended December 31, 2023 was $1.24 compared to $1.44 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 |
|||||||||||||
|
December 31, 2023 |
|
December 31, 2022 |
|||||||||||
|
(U.S. Dollars in thousands) |
|||||||||||||
|
Revenue |
|
Adjusted EBITDA |
|
Revenue |
|
Adjusted EBITDA |
|||||||
Fresh Fruit |
$ |
748,703 |
|
|
$ |
28,792 |
|
$ |
740,167 |
|
|
$ |
39,460 |
|
Diversified Fresh Produce - EMEA |
|
862,865 |
|
|
|
32,638 |
|
|
751,594 |
|
|
|
22,656 |
|
Diversified Fresh Produce - Americas & ROW |
|
489,761 |
|
|
|
15,427 |
|
|
573,936 |
|
|
|
15,396 |
|
Intersegment |
|
(29,074 |
) |
|
|
— |
|
|
(23,129 |
) |
|
|
— |
|
Total |
$ |
2,072,255 |
|
|
$ |
76,857 |
|
$ |
2,042,568 |
|
|
$ |
77,512 |
|
|
Year Ended |
|||||||||||||
|
December 31, 2023 |
|
December 31, 2022 |
|||||||||||
|
(U.S. Dollars in thousands) |
|||||||||||||
|
Revenue |
|
Adjusted EBITDA |
|
Revenue |
|
Adjusted EBITDA |
|||||||
Fresh Fruit |
$ |
3,135,866 |
|
|
$ |
208,930 |
|
$ |
3,047,149 |
|
|
$ |
205,547 |
|
Diversified Fresh Produce - EMEA |
|
3,432,945 |
|
|
|
133,570 |
|
|
3,152,561 |
|
|
|
111,053 |
|
Diversified Fresh Produce - Americas & ROW |
|
1,800,168 |
|
|
|
42,618 |
|
|
1,965,667 |
|
|
|
43,796 |
|
Intersegment |
|
(123,711 |
) |
|
|
— |
|
|
(140,974 |
) |
|
|
— |
|
Total |
$ |
8,245,268 |
|
|
$ |
385,118 |
|
$ |
8,024,403 |
|
|
$ |
360,396 |
|
Fourth Quarter Commentary
Fresh Fruit
Revenue increased 1.2%, or $8.5 million, compared to the prior year quarter. The increase was primarily due to higher worldwide volumes of bananas sold, an increase in banana pricing in Europe and an increase in worldwide pricing of pineapples. These increases were offset in part by lower banana prices in North America and less worldwide volumes of pineapples sold.
Adjusted EBITDA decreased by 27.0%, or $10.7 million. The decrease was primarily due to higher fruit sourcing costs in bananas, as well as weaker performance in our commercial cargo business and other diversified products.
Diversified Fresh Produce – EMEA
Revenue increased 14.8%, or $111.3 million, primarily driven by inflation-justified price increases across the segment, a positive impact from foreign currency translation of $33.4 million due to the strengthening of the Euro and British pound sterling against the U.S. Dollar and a net positive impact from acquisitions and divestitures of $12.2 million. On a like-for-like basis, revenue increased 8.7%, or $65.7 million.
Adjusted EBITDA increased 44.1%, or $10.0 million. The increase in Adjusted EBITDA was as a result of strong performance across the segment, particularly within the Dutch, Swedish and South African businesses, as well as a net favorable impact from acquisition and divestitures of $0.4 million and a positive impact from foreign currency translation of $1.1 million. On a like-for-like basis, Adjusted EBITDA increased 37.4%, or $8.5 million.
Diversified Fresh Produce – Americas & ROW
Revenue decreased 14.7%, or $84.2 million, primarily due to lower volumes of cherries due to seasonal timing differences, as well as continued challenging performance for the berry category in North America, partially offset by inflation-justified price increases and continued strong performance for potatoes and onions in North America.
Adjusted EBITDA increased marginally by 0.2%, driven primarily by significant recoveries in profitability for apples and, to a lesser extent, kiwis, after a challenging 2022, mostly offset by the impact of seasonal timing differences in the Chilean cherry season, as well as by a challenging performance for the berry category in North America.
Full Year Commentary
Fresh Fruit
Revenue increased 2.9%, or $88.7 million, predominantly driven by higher worldwide pricing of bananas and pineapples and an increase in worldwide volumes of bananas sold, partially offset by lower worldwide volumes of pineapples sold.
Adjusted EBITDA increased 1.6%, or $3.4 million. Adjusted EBITDA was positively impacted by strong revenue performance, partially offset by higher fruit sourcing costs, an increase in materials and handling costs and lower profit from the commercial cargo business.
Diversified Fresh Produce – EMEA
Revenue increased 8.9%, or $280.4 million, primarily driven by inflation-justified price increases across the segment, a net positive impact from acquisitions and divestitures of $35.8 million and a positive impact from foreign currency translation of $33.2 million, as a result of the strengthening of the Euro and British pound sterling against the U.S. Dollar, partly offset by the weakening of the Swedish krona against the U.S. Dollar. On a like-for-like basis, revenue increased 6.7%, or $211.4 million.
Adjusted EBITDA increased 20.3%, or $22.5 million. The increase was primarily due to strong performance across the segment, particularly within the Spanish, Dutch, Czech and South African businesses, as well as a net favorable impact from acquisitions and divestitures of $1.8 million. Excluding the impact of foreign currency translation and acquisition and divestitures, Adjusted EBITDA was 17.4%, or $19.3 million, ahead of the prior year.
Diversified Fresh Produce – Americas & ROW
Revenue decreased 8.4%, or $165.5 million, primarily due to lower volumes of most commodities sold, particularly in cherries, as well as in berries, grapes and apples, partially offset by inflation-justified price increases, a strong recovery in pricing of grapes and apples after a challenging 2022 and continued strong performance for potatoes and onions in North America.
Adjusted EBITDA decreased 2.7%, or $1.2 million, primarily due to a weak performance for the North American berry business and lower profits in the Chilean cherry business due to seasonal timing differences, partially offset by strong recovery in Chilean apples and grapes after challenging seasons in 2022 and by strong trading activity for most other products that we market in North America, particularly for potatoes and onions.
Capital Expenditures
Capital expenditures for the year ended December 31, 2023 were $78.0 million and 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 and also excludes non-cash finance lease additions of $8.9 million for the year ended December 31, 2023.
Sales of Assets
Sales of assets for the year ended December 31, 2023 were $83.6 million, compared to $36.7 million for the year ended December 31, 2022. These sales resulted in a gain on asset sales of $54.1 million for the year ended December 31, 2023, compared to $11.8 million for the year ended December 31, 2022. The increase was driven by $44.0 million of cash proceeds received from the sale of idle land in Hawaii during the third quarter of 2023, as well as $14.0 million of cash proceeds received from the sale of a cooler in California during the fourth quarter of 2023.
Free Cash Flow from Continuing Operations and Net Debt
Free Cash Flow from Continuing Operations was $220.6 million for the year ended December 31, 2023. Free Cash Flow from Continuing Operations benefited from strong Adjusted EBITDA performance and good working capital management across the Group over the course of the year. In particular, in the fourth quarter, we benefited from a strong seasonal working capital inflow. At the end of the year, Net Debt was $0.8 billion, a reduction from $1.0 billion as of December 31, 2022.
Progressive Produce Transaction
On February 27, 2024, we entered into a stock purchase agreement with PTF Holdings, LLC, the parent company of Pacific Trellis Fruit, LLC, to sell our 65% equity stake in Progressive Produce LLC for gross cash consideration of $120.2 million. PTF Holdings, LLC is a portfolio company of Arable Capital Partners, LLC. This transaction is expected to close in March 2024, subject to the satisfaction of customary closing conditions.
Outlook for Fiscal Year 2024 (forward-looking statement)
We are pleased with the Group's exceptional performance in 2023, delivering $385.1 million of Adjusted EBITDA from continuing operations. The result gives the Group a strong starting point from which to build further momentum in the 2024 financial year.
As we move through 2024, the operating environment continues to present new challenges as well as opportunities. On the macro-economic side, we have been pleased that inflation has continued to moderate across our key operating regions. We are also pleased by the relative stability being seen in some key foreign exchange rates, energy prices and, more recently, in interest rates.
While forecasting in this environment remains complex, overall, we believe our business is well positioned to deliver another good result in 2024. Given our strong 2023 overperformance, our target at this early stage of the year is to deliver full year Adjusted EBITDA in line with 2023 on a like-for-like basis.
For fiscal year 2024, we are guiding capital expenditure from continuing operations to be in the range of $110 - $120 million.
Dividend
On February 28, 2024, the Board of Directors of Dole plc declared a cash dividend for the fourth quarter of 2023 of $0.08 per share, payable on April 4, 2024 to shareholders of record on March 21, 2024. A cash dividend of $0.08 per share was paid on January 4, 2024 for the third 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 fourth quarter and full year 2023 financial results. The webcast can be accessed at www.doleplc.com/investors.
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 2525779.
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 Statements of Operations - Unaudited
|
Three Months Ended |
|
Year Ended |
|||||||||||||
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|||||||||
|
(U.S. Dollars and shares in thousands, except per share amounts) |
|||||||||||||||
Revenues, net |
$ |
2,072,255 |
|
|
$ |
2,042,568 |
|
|
$ |
8,245,268 |
|
|
$ |
8,024,403 |
|
|
Cost of sales |
|
(1,920,077 |
) |
|
|
(1,891,456 |
) |
|
|
(7,551,098 |
) |
|
|
(7,424,525 |
) |
|
Gross profit |
|
152,178 |
|
|
|
151,112 |
|
|
|
694,170 |
|
|
|
599,878 |
|
|
Selling, marketing, general and administrative expenses |
|
(119,334 |
) |
|
|
(112,934 |
) |
|
|
(473,903 |
) |
|
|
(436,192 |
) |
|
Gain on disposal of businesses |
|
— |
|
|
|
(50 |
) |
|
|
— |
|
|
|
192 |
|
|
Impairment and asset write-downs of property, plant and equipment |
|
(2,217 |
) |
|
|
(397 |
) |
|
|
(2,217 |
) |
|
|
(397 |
) |
|
Gain on asset sales |
|
10,666 |
|
|
|
2,596 |
|
|
|
54,108 |
|
|
|
11,784 |
|
|
Operating income |
|
41,293 |
|
|
|
40,327 |
|
|
|
272,158 |
|
|
|
175,265 |
|
|
Other (expense) income, net |
|
(2,922 |
) |
|
|
(9,165 |
) |
|
|
4,799 |
|
|
|
10,600 |
|
|
Interest income |
|
2,823 |
|
|
|
1,986 |
|
|
|
10,083 |
|
|
|
6,407 |
|
|
Interest expense |
|
(18,754 |
) |
|
|
(18,245 |
) |
|
|
(81,113 |
) |
|
|
(56,371 |
) |
|
Income from continuing operations before income taxes and equity earnings |
|
22,440 |
|
|
|
14,903 |
|
|
|
205,927 |
|
|
|
135,901 |
|
|
Income tax (expense) benefit |
|
(2,987 |
) |
|
|
4,106 |
|
|
|
(43,591 |
) |
|
|
25,603 |
|
|
Equity method earnings |
|
3,683 |
|
|
|
2,698 |
|
|
|
15,191 |
|
|
|
6,726 |
|
|
Income from continuing operations |
|
23,136 |
|
|
|
21,707 |
|
|
|
177,527 |
|
|
|
168,230 |
|
|
Income (loss) from discontinued operations, net of income taxes |
|
5,798 |
|
|
|
(8,318 |
) |
|
|
(21,818 |
) |
|
|
(56,447 |
) |
|
Net income |
|
28,934 |
|
|
|
13,389 |
|
|
|
155,709 |
|
|
|
111,783 |
|
|
Less: Net income attributable to noncontrolling interests |
|
(6,597 |
) |
|
|
(6,608 |
) |
|
|
(31,646 |
) |
|
|
(25,287 |
) |
|
Net income attributable to Dole plc |
$ |
22,337 |
|
|
$ |
6,781 |
|
|
$ |
124,063 |
|
|
$ |
86,496 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Income (loss) per share - basic: |
|
|
|
|
|
|
|
|||||||||
Continuing operations |
$ |
0.18 |
|
|
$ |
0.16 |
|
|
$ |
1.54 |
|
|
$ |
1.51 |
|
|
Discontinued operations |
|
0.06 |
|
|
|
(0.09 |
) |
|
|
(0.23 |
) |
|
|
(0.60 |
) |
|
Net income per share attributable to Dole plc - basic |
$ |
0.24 |
|
|
$ |
0.07 |
|
|
$ |
1.31 |
|
|
$ |
0.91 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Income (loss) per share - diluted: |
|
|
|
|
|
|
|
|||||||||
Continuing operations |
$ |
0.17 |
|
|
$ |
0.16 |
|
|
$ |
1.53 |
|
|
$ |
1.51 |
|
|
Discontinued operations |
|
0.06 |
|
|
|
(0.09 |
) |
|
|
(0.23 |
) |
|
|
(0.60 |
) |
|
Net income per share attributable to Dole plc - diluted |
$ |
0.23 |
|
|
$ |
0.07 |
|
|
$ |
1.30 |
|
|
$ |
0.91 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted-average shares: |
|
|
|
|
|
|
|
|||||||||
Basic |
|
94,929 |
|
|
|
94,899 |
|
|
|
94,917 |
|
|
|
94,886 |
|
|
Diluted |
|
95,187 |
|
|
|
94,928 |
|
|
|
95,118 |
|
|
|
94,914 |
|
|
Consolidated Balance Sheets - Unaudited
|
December 31,
|
|
December 31,
|
|||||
ASSETS |
(U.S. Dollars in thousands) |
|||||||
Cash and cash equivalents |
$ |
275,580 |
|
|
$ |
228,840 |
|
|
Short-term investments |
|
5,899 |
|
|
|
5,367 |
|
|
Trade receivables, net of allowances for credit losses of $18,360 and $18,001, respectively |
|
538,177 |
|
|
|
610,384 |
|
|
Grower advance receivables, net of allowances of $19,839 and $15,817, respectively |
|
109,958 |
|
|
|
106,864 |
|
|
Other receivables, net of allowances of $13,227 and $14,538, respectively |
|
117,069 |
|
|
|
132,947 |
|
|
Inventories, net of allowances of $4,792 and $4,186, respectively |
|
378,592 |
|
|
|
394,150 |
|
|
Prepaid expenses |
|
61,724 |
|
|
|
48,995 |
|
|
Other current assets |
|
17,401 |
|
|
|
15,034 |
|
|
Fresh Vegetables current assets held for sale |
|
414,457 |
|
|
|
62,252 |
|
|
Other assets held-for-sale |
|
1,832 |
|
|
|
645 |
|
|
Total current assets |
|
1,920,689 |
|
|
|
1,605,478 |
|
|
Long-term investments |
|
15,970 |
|
|
|
16,498 |
|
|
Investments in unconsolidated affiliates |
|
131,704 |
|
|
|
124,234 |
|
|
Actively marketed property |
|
13,781 |
|
|
|
31,007 |
|
|
Property, plant and equipment, net of accumulated depreciation of $444,775 and $375,721, respectively |
|
1,102,234 |
|
|
|
1,116,124 |
|
|
Operating lease right-of-use assets |
|
340,458 |
|
|
|
293,658 |
|
|
Goodwill |
|
513,312 |
|
|
|
497,453 |
|
|
DOLE brand |
|
306,280 |
|
|
|
306,280 |
|
|
Other intangible assets, net of accumulated amortization of $134,420 and $120,315, respectively |
|
41,232 |
|
|
|
50,990 |
|
|
Fresh Vegetables non-current assets held for sale |
|
— |
|
|
|
343,828 |
|
|
Other assets |
|
109,048 |
|
|
|
142,180 |
|
|
Deferred tax assets, net |
|
66,485 |
|
|
|
64,112 |
|
|
Total assets |
$ |
4,561,193 |
|
|
$ |
4,591,842 |
|
|
LIABILITIES AND EQUITY |
|
|
|
|||||
Accounts payable |
$ |
670,904 |
|
|
$ |
640,620 |
|
|
Income taxes payable |
|
22,917 |
|
|
|
11,558 |
|
|
Accrued liabilities |
|
357,427 |
|
|
|
381,688 |
|
|
Bank overdrafts |
|
11,488 |
|
|
|
8,623 |
|
|
Current portion of long-term debt, net |
|
222,940 |
|
|
|
97,435 |
|
|
Current maturities of operating leases |
|
63,653 |
|
|
|
57,372 |
|
|
Payroll and other tax |
|
27,791 |
|
|
|
27,187 |
|
|
Contingent consideration |
|
1,788 |
|
|
|
1,791 |
|
|
Pension and postretirement benefits |
|
16,570 |
|
|
|
17,287 |
|
|
Fresh Vegetables current liabilities held for sale |
|
291,342 |
|
|
|
199,255 |
|
|
Dividends payable and other current liabilities |
|
29,892 |
|
|
|
17,698 |
|
|
Total current liabilities |
|
1,716,712 |
|
|
|
1,460,514 |
|
|
Long-term debt, net |
|
845,013 |
|
|
|
1,127,321 |
|
|
Operating leases, less current maturities |
|
287,991 |
|
|
|
246,723 |
|
|
Deferred tax liabilities, net |
|
92,653 |
|
|
|
118,403 |
|
|
Income taxes payable, less current portion |
|
16,664 |
|
|
|
30,458 |
|
|
Contingent consideration, less current portion |
|
7,327 |
|
|
|
5,022 |
|
|
Pension and postretirement benefits, less current portion |
|
121,689 |
|
|
|
124,646 |
|
|
Fresh Vegetables non-current liabilities held for sale |
|
— |
|
|
|
116,380 |
|
|
Other long-term liabilities |
|
52,295 |
|
|
|
43,390 |
|
|
Total liabilities |
$ |
3,140,344 |
|
|
$ |
3,272,857 |
|
|
Redeemable noncontrolling interests |
|
34,185 |
|
|
|
32,311 |
|
|
Stockholders' equity: |
|
|
|
|||||
Common stock — $0.01 par value; 300,000 shares authorized and 94,929 and 94,899 shares outstanding as of December 31, 2023 and December 31, 2022, respectively |
|
949 |
|
|
|
949 |
|
|
Additional paid-in capital |
|
796,800 |
|
|
|
795,063 |
|
|
Retained earnings |
|
562,562 |
|
|
|
469,249 |
|
|
Accumulated other comprehensive loss |
|
(110,791 |
) |
|
|
(104,133 |
) |
|
Total equity attributable to Dole plc |
|
1,249,520 |
|
|
|
1,161,128 |
|
|
Equity attributable to noncontrolling interests |
|
137,144 |
|
|
|
125,546 |
|
|
Total equity |
|
1,386,664 |
|
|
|
1,286,674 |
|
|
Total liabilities, redeemable noncontrolling interests and equity |
$ |
4,561,193 |
|
|
$ |
4,591,842 |
|
|
Consolidated Statements of Cash Flows - Unaudited
|
Year Ended |
|||||||
|
December 31,
|
|
December 31,
|
|||||
Operating Activities |
(U.S. Dollars in thousands) |
|||||||
Net income |
$ |
155,709 |
|
|
$ |
111,783 |
|
|
Loss from discontinued operations, net of income taxes |
|
21,818 |
|
|
|
56,447 |
|
|
Income from continuing operations |
|
177,527 |
|
|
|
168,230 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|||||
Depreciation and amortization |
|
104,168 |
|
|
|
109,596 |
|
|
Incremental charges on purchase accounting valuation of biological assets and inventory |
|
— |
|
|
|
41,145 |
|
|
Net gain on sale of assets |
|
(54,108 |
) |
|
|
(11,784 |
) |
|
Stock-based compensation expense |
|
6,045 |
|
|
|
4,500 |
|
|
Equity method earnings |
|
(15,191 |
) |
|
|
(6,726 |
) |
|
Amortization of debt discounts and debt issuance costs |
|
6,390 |
|
|
|
6,213 |
|
|
Deferred tax benefit |
|
(12,600 |
) |
|
|
(31,061 |
) |
|
Pension and other postretirement benefit plan expense |
|
7,735 |
|
|
|
3,151 |
|
|
Dividends received from equity method investees |
|
9,388 |
|
|
|
9,817 |
|
|
Other |
|
4,268 |
|
|
|
7,164 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|||||
Receivables, net of allowances |
|
58,794 |
|
|
|
55,150 |
|
|
Inventories |
|
20,688 |
|
|
|
(31,685 |
) |
|
Prepaids, other current assets and other assets |
|
(27,521 |
) |
|
|
(11,073 |
) |
|
Accounts payable, accrued liabilities and other liabilities |
|
13,022 |
|
|
|
10,975 |
|
|
Net cash provided by operating activities - continuing operations |
|
298,605 |
|
|
|
323,612 |
|
|
Investing Activities |
|
|
|
|||||
Sales of assets |
|
83,557 |
|
|
|
36,676 |
|
|
Capital expenditures |
|
(78,041 |
) |
|
|
(85,564 |
) |
|
Acquisitions, net of cash acquired |
|
(1,263 |
) |
|
|
(4,886 |
) |
|
Insurance proceeds |
|
1,054 |
|
|
|
2,278 |
|
|
Purchases of investments |
|
(1,153 |
) |
|
|
(458 |
) |
|
Net sales (purchases) of investments in unconsolidated affiliates |
|
1,013 |
|
|
|
(3,029 |
) |
|
Other |
|
57 |
|
|
|
912 |
|
|
Net cash provided by (used in) investing activities - continuing operations |
|
5,224 |
|
|
|
(54,071 |
) |
|
Financing Activities |
|
|
|
|||||
Proceeds from borrowings and overdrafts |
|
1,407,970 |
|
|
|
1,293,280 |
|
|
Repayments on borrowings and overdrafts |
|
(1,576,067 |
) |
|
|
(1,411,467 |
) |
|
Payment of debt issuance costs |
|
(44 |
) |
|
|
(304 |
) |
|
Dividends paid to shareholders |
|
(30,373 |
) |
|
|
(30,364 |
) |
|
Dividends paid to noncontrolling interests |
|
(28,522 |
) |
|
|
(21,632 |
) |
|
Other noncontrolling interest activity, net |
|
(1,300 |
) |
|
|
— |
|
|
Payments of contingent consideration |
|
(1,662 |
) |
|
|
(2,909 |
) |
|
Net cash used in financing activities - continuing operations |
|
(229,998 |
) |
|
|
(173,396 |
) |
|
Effect of foreign currency exchange rate changes on cash |
|
5,448 |
|
|
|
(20,712 |
) |
|
Net cash used in operating activities - discontinued operations |
|
(22,622 |
) |
|
|
(84,720 |
) |
|
Net cash used in investing activities - discontinued operations |
|
(8,492 |
) |
|
|
(12,434 |
) |
|
Cash used in discontinued operations, net |
|
(31,114 |
) |
|
|
(97,154 |
) |
|
Increase (decrease) in cash and cash equivalents |
|
48,165 |
|
|
|
(21,721 |
) |
|
Cash and cash equivalents at beginning of period, including discontinued operations |
|
228,840 |
|
|
|
250,561 |
|
|
Cash and cash equivalents at end of period, including discontinued operations |
$ |
277,005 |
|
|
$ |
228,840 |
|
|
|
|
|
||||||
Supplemental cash flow information: |
|
|
|
|||||
Income tax payments, net of refunds |
$ |
(63,969 |
) |
|
$ |
(50,469 |
) |
|
Interest payments on borrowings |
$ |
(82,367 |
) |
|
$ |
(53,404 |
) |
|
Non-cash Investing and Financing Activities: |
|
|
|
|||||
Accrued property, plant and equipment |
$ |
(1,465 |
) |
|
$ |
(488 |
) |
|
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 |
|
Year Ended |
|||||||||||||
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|||||||||
|
(U.S. Dollars in thousands) |
|||||||||||||||
Net income (Reported GAAP) |
$ |
28,934 |
|
|
$ |
13,389 |
|
|
$ |
155,709 |
|
|
$ |
111,783 |
|
|
(Income) loss from discontinued operations, net of income taxes |
|
(5,798 |
) |
|
|
8,318 |
|
|
|
21,818 |
|
|
|
56,447 |
|
|
Income from continuing operations (Reported GAAP) |
|
23,136 |
|
|
|
21,707 |
|
|
|
177,527 |
|
|
|
168,230 |
|
|
Income tax expense (benefit) |
|
2,987 |
|
|
|
(4,106 |
) |
|
|
43,591 |
|
|
|
(25,603 |
) |
|
Interest expense |
|
18,754 |
|
|
|
18,245 |
|
|
|
81,113 |
|
|
|
56,371 |
|
|
Mark to market losses |
|
5,450 |
|
|
|
8,868 |
|
|
|
2,524 |
|
|
|
3,049 |
|
|
Gain on asset sales |
|
(9,139 |
) |
|
|
(1,970 |
) |
|
|
(52,495 |
) |
|
|
(10,316 |
) |
|
Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole |
|
— |
|
|
|
681 |
|
|
|
— |
|
|
|
41,145 |
|
|
Cyber-related incident |
|
— |
|
|
|
— |
|
|
|
5,321 |
|
|
|
— |
|
|
Other items4,5 |
|
1,833 |
|
|
|
1,053 |
|
|
|
2,918 |
|
|
|
(231 |
) |
|
Adjustments from equity method investments |
|
4,309 |
|
|
|
2,614 |
|
|
|
10,714 |
|
|
|
7,540 |
|
|
Adjusted EBIT (Non-GAAP) |
|
47,330 |
|
|
|
47,092 |
|
|
|
271,213 |
|
|
|
240,185 |
|
|
Depreciation |
|
24,788 |
|
|
|
25,159 |
|
|
|
93,970 |
|
|
|
98,703 |
|
|
Amortization of intangible assets |
|
2,472 |
|
|
|
2,645 |
|
|
|
10,198 |
|
|
|
10,893 |
|
|
Depreciation and amortization adjustments from equity method investments |
|
2,267 |
|
|
|
2,616 |
|
|
|
9,737 |
|
|
|
10,615 |
|
|
Adjusted EBITDA (Non-GAAP) |
$ |
76,857 |
|
|
$ |
77,512 |
|
|
$ |
385,118 |
|
|
$ |
360,396 |
|
|
4 For the three months ended December 31, 2023, other items is primarily comprised of $1.9 million asset write-downs, net of insurance proceeds and $0.2 million of impairment charges on property, plant and equipment, partially offset by other immaterial items. For the three months ended December 31, 2022, other items is primarily comprised of $0.5 million of net losses on equity method disposals, $0.4 million of impairment charges on property, plant and equipment and other immaterial items. |
||||||||||||||||
5 For the year ended December 31, 2023, other items is primarily comprised of $3.0 million of asset write-downs, net of insurance proceeds, $0.2 million of impairment charges on property, plant and equipment, partially offset by other immaterial items. For the year ended December 31, 2022, other items is primarily comprised of $0.9 million of net legal and restructuring adjustments and $0.5 million of insurance proceeds, net of asset write-downs, partially offset by $0.5 million of net losses on equity method acquisitions and disposals, $0.4 million of impairment charges on property, plant and equipment and other immaterial items. |
||||||||||||||||
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 |
|
Year Ended |
|||||||||||||
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|||||||||
|
(U.S. Dollars and shares in thousands, except per share amounts) |
|||||||||||||||
Net income attributable to Dole plc (Reported GAAP) |
$ |
22,337 |
|
|
$ |
6,781 |
|
|
$ |
124,063 |
|
|
$ |
86,496 |
|
|
(Income) loss from discontinued operations, net of income taxes |
|
(5,798 |
) |
|
|
8,318 |
|
|
|
21,818 |
|
|
|
56,447 |
|
|
Income from continuing operations attributable to Dole plc |
|
16,539 |
|
|
|
15,099 |
|
|
|
145,881 |
|
|
|
142,943 |
|
|
Amortization of intangible assets |
|
2,472 |
|
|
|
2,645 |
|
|
|
10,198 |
|
|
|
10,893 |
|
|
Mark to market losses |
|
5,450 |
|
|
|
8,868 |
|
|
|
2,524 |
|
|
|
3,049 |
|
|
Gain on asset sales |
|
(9,139 |
) |
|
|
(1,970 |
) |
|
|
(52,495 |
) |
|
|
(10,316 |
) |
|
Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole |
|
— |
|
|
|
681 |
|
|
|
— |
|
|
|
41,145 |
|
|
Cyber-related incident |
|
— |
|
|
|
— |
|
|
|
5,321 |
|
|
|
— |
|
|
Other items6,7 |
|
1,833 |
|
|
|
1,053 |
|
|
|
2,918 |
|
|
|
(231 |
) |
|
Adjustments from equity method investments |
|
604 |
|
|
|
662 |
|
|
|
1,956 |
|
|
|
2,580 |
|
|
Income tax on items above and discrete tax items |
|
(1,709 |
) |
|
|
(8,876 |
) |
|
|
5,243 |
|
|
|
(50,504 |
) |
|
NCI impact on items above |
|
(1,220 |
) |
|
|
(898 |
) |
|
|
(3,494 |
) |
|
|
(3,187 |
) |
|
Adjusted Net Income for Adjusted EPS calculation (Non-GAAP) |
$ |
14,830 |
|
|
$ |
17,264 |
|
|
$ |
118,052 |
|
|
$ |
136,372 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjusted earnings per share – basic (Non-GAAP) |
$ |
0.16 |
|
|
$ |
0.18 |
|
|
$ |
1.24 |
|
|
$ |
1.44 |
|
|
Adjusted earnings per share – diluted (Non-GAAP) |
$ |
0.16 |
|
|
$ |
0.18 |
|
|
$ |
1.24 |
|
|
$ |
1.44 |
|
|
Weighted average shares outstanding – basic |
|
94,929 |
|
|
|
94,899 |
|
|
|
94,917 |
|
|
|
94,886 |
|
|
Weighted average shares outstanding – diluted |
|
95,187 |
|
|
|
94,928 |
|
|
|
95,118 |
|
|
|
94,914 |
|
|
6 For the three months ended December 31, 2023, other items is primarily comprised of $1.9 million asset write-downs, net of insurance proceeds and $0.2 million of impairment charges on property, plant and equipment, partially offset by other immaterial items. For the three months ended December 31, 2022, other items is primarily comprised of $0.5 million of net losses on equity method disposals, $0.4 million of impairment charges on property, plant and equipment and other immaterial items. |
||||||||||||||||
7 For the year ended December 31, 2023, other items is primarily comprised of $3.0 million of asset write-downs, net of insurance proceeds, $0.2 million of impairment charges on property, plant and equipment, partially offset by other immaterial items. For the year ended December 31, 2022, other items is primarily comprised of $0.9 million of net legal and restructuring adjustments and $0.5 million of insurance proceeds, net of asset write-downs, partially offset by $0.5 million of net losses on equity method acquisitions and disposals, $0.4 million of impairment charges on property, plant and equipment and other immaterial items. |
||||||||||||||||
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 December 31, 2023
|
|||||||||||||
|
Revenues, net |
Cost of sales |
Gross profit |
Gross
|
Selling, marketing, general and administration expenses |
Other
|
Operating
|
|||||||
Reported (GAAP) |
$ |
2,072,255 |
(1,920,077 |
) |
152,178 |
|
7.3 % |
(119,334 |
) |
8,449 |
|
$ |
41,293 |
|
(Income) loss from discontinued operations, net of income taxes |
|
— |
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
Amortization of intangible assets |
|
— |
— |
|
— |
|
2,472 |
|
— |
|
|
2,472 |
|
|
Mark to market losses |
|
— |
(189 |
) |
(189 |
) |
— |
|
— |
|
|
(189 |
) |
|
Gain on asset sales |
|
— |
— |
|
— |
|
— |
|
(9,139 |
) |
|
(9,139 |
) |
|
Cyber-related incident |
|
— |
— |
|
— |
|
— |
|
— |
|
|
— |
|
|
Other items |
|
— |
2,120 |
|
2,120 |
|
(34 |
) |
— |
|
|
2,086 |
|
|
Adjustments from equity method investments |
|
— |
— |
|
— |
|
— |
|
— |
|
|
— |
|
|
Income tax on items above and discrete tax items |
|
— |
— |
|
— |
|
— |
|
— |
|
|
— |
|
|
NCI impact on items above |
|
— |
— |
|
— |
|
— |
|
— |
|
|
— |
|
|
Adjusted (Non-GAAP) |
$ |
2,072,255 |
(1,918,146 |
) |
154,109 |
|
7.4 % |
(116,896 |
) |
(690 |
) |
$ |
36,523 |
|
8 Other operating charges for the three months ended December 31, 2023 is primarily comprised of a $10.7 million gain on asset sales, partially offset by $2.2 million of impairment charges and asset write-downs of property, plant and equipment, as reported in the consolidated statements of operations. |
||||||||||||||
|
Three Months Ended December 31, 2022
|
|||||||||||||
|
Revenues, net |
Cost of sales |
Gross profit |
Gross
|
Selling, marketing, general and administration expenses |
Other operating charges9 |
Operating Income |
|||||||
Reported (GAAP) |
$ |
2,042,568 |
(1,891,456 |
) |
151,112 |
|
7.4 % |
(112,934 |
) |
2,149 |
|
$ |
40,327 |
|
(Income) loss from discontinued operations, net of income taxes |
|
— |
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
Amortization of intangible assets |
|
— |
— |
|
— |
|
2,645 |
|
— |
|
|
2,645 |
|
|
Mark to market losses |
|
— |
476 |
|
476 |
|
— |
|
— |
|
|
476 |
|
|
Gain on asset sales |
|
— |
— |
|
— |
|
— |
|
(1,970 |
) |
|
(1,970 |
) |
|
Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole |
|
— |
681 |
|
681 |
|
— |
|
— |
|
|
681 |
|
|
Other items |
|
— |
(452 |
) |
(452 |
) |
— |
|
961 |
|
|
509 |
|
|
Adjustments from equity method investments |
|
— |
— |
|
— |
|
— |
|
— |
|
|
— |
|
|
Income tax on items above and discrete tax items |
|
— |
— |
|
— |
|
— |
|
— |
|
|
— |
|
|
NCI impact on items above |
|
— |
— |
|
— |
|
— |
|
— |
|
|
— |
|
|
Adjusted (Non-GAAP) |
$ |
2,042,568 |
(1,890,751 |
) |
151,817 |
|
7.4 % |
(110,289 |
) |
1,140 |
|
$ |
42,668 |
|
9 Other operating charges for the three months ended December 31, 2022 is primarily comprised of a $2.6 million gain on asset sales, partially offset by $0.4 million of impairment charges and asset write-downs of property, plant and equipment, as reported in the consolidated statements of operations. |
||||||||||||||
|
Three Months Ended December 31, 2023
|
||||||||||||||
|
Other (expense) income, net |
Interest income |
Interest expense |
Income tax (expense) |
Equity earnings |
Income from continuing operations |
Income from discontinued operations, net of income taxes |
||||||||
Reported (GAAP) |
$ |
(2,922 |
) |
2,823 |
(18,754 |
) |
(2,987 |
) |
3,683 |
|
23,136 |
|
$ |
5,798 |
|
(Income) loss from discontinued operations, net of income taxes |
|
— |
|
— |
— |
|
— |
|
— |
|
— |
|
|
(5,798 |
) |
Amortization of intangible assets |
|
— |
|
— |
— |
|
— |
|
— |
|
2,472 |
|
|
— |
|
Mark to market losses |
|
5,639 |
|
— |
— |
|
— |
|
— |
|
5,450 |
|
|
— |
|
Gain on asset sales |
|
— |
|
— |
— |
|
— |
|
— |
|
(9,139 |
) |
|
— |
|
Cyber-related incident |
|
— |
|
— |
— |
|
— |
|
— |
|
— |
|
|
— |
|
Other items |
|
(253 |
) |
— |
— |
|
— |
|
— |
|
1,833 |
|
|
— |
|
Adjustments from equity method investments |
|
— |
|
— |
— |
|
— |
|
604 |
|
604 |
|
|
— |
|
Income tax on items above and discrete tax items |
|
— |
|
— |
— |
|
(1,610 |
) |
(99 |
) |
(1,709 |
) |
|
— |
|
NCI impact on items above |
|
— |
|
— |
— |
|
— |
|
— |
|
— |
|
|
— |
|
Adjusted (Non-GAAP) |
$ |
2,464 |
|
2,823 |
(18,754 |
) |
(4,597 |
) |
4,188 |
|
22,647 |
|
$ |
— |
|
|
Three Months Ended December 31, 2022
|
||||||||||||||
|
Other expense, net |
Interest income |
Interest expense |
Income tax benefit (expense) |
Equity earnings |
Income from continuing operations |
Loss from discontinued operations, net of income taxes |
||||||||
Reported (GAAP) |
$ |
(9,165 |
) |
1,986 |
(18,245 |
) |
4,106 |
|
2,698 |
|
21,707 |
|
$ |
(8,318 |
) |
(Income) loss from discontinued operations, net of income taxes |
|
— |
|
— |
— |
|
— |
|
— |
|
— |
|
|
8,318 |
|
Amortization of intangible assets |
|
— |
|
— |
— |
|
— |
|
— |
|
2,645 |
|
|
— |
|
Mark to market losses |
|
8,392 |
|
— |
— |
|
— |
|
— |
|
8,868 |
|
|
— |
|
Gain on asset sales |
|
— |
|
— |
— |
|
— |
|
— |
|
(1,970 |
) |
|
— |
|
Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole |
|
— |
|
— |
— |
|
— |
|
— |
|
681 |
|
|
— |
|
Other items |
|
— |
|
— |
— |
|
— |
|
544 |
|
1,053 |
|
|
— |
|
Adjustments from equity method investments |
|
— |
|
— |
— |
|
— |
|
662 |
|
662 |
|
|
— |
|
Income tax on items above and discrete tax items |
|
— |
|
— |
— |
|
(8,777 |
) |
(99 |
) |
(8,876 |
) |
|
— |
|
NCI impact on items above |
|
— |
|
— |
— |
|
— |
|
— |
|
— |
|
|
— |
|
Adjusted (Non-GAAP) |
$ |
(773 |
) |
1,986 |
(18,245 |
) |
(4,671 |
) |
3,805 |
|
24,770 |
|
$ |
— |
|
|
Three Months Ended December 31, 2023
|
|||||||||
|
Net income |
Net income attributable to noncontrolling interests |
Net income attributable to Dole plc |
Diluted net income per share |
||||||
Reported (GAAP) |
$ |
28,934 |
|
(6,597 |
) |
$ |
22,337 |
|
$ |
0.23 |
(Income) loss from discontinued operations, net of income taxes |
|
(5,798 |
) |
— |
|
|
(5,798 |
) |
|
|
Amortization of intangible assets |
|
2,472 |
|
— |
|
|
2,472 |
|
||
Mark to market losses |
|
5,450 |
|
— |
|
|
5,450 |
|
||
Gain on asset sales |
|
(9,139 |
) |
— |
|
|
(9,139 |
) |
||
Cyber-related incident |
|
— |
|
— |
|
|
— |
|
||
Other items |
|
1,833 |
|
— |
|
|
1,833 |
|
||
Adjustments from equity method investments |
|
604 |
|
— |
|
|
604 |
|
||
Income tax on items above and discrete tax items |
|
(1,709 |
) |
— |
|
|
(1,709 |
) |
||
NCI impact on items above |
|
— |
|
(1,220 |
) |
|
(1,220 |
) |
||
Adjusted (Non-GAAP) |
$ |
22,647 |
|
(7,817 |
) |
$ |
14,830 |
|
$ |
0.16 |
|
|
|
|
|
||||||
Weighted average shares outstanding – diluted |
|
|
|
95,187 |
|
|
||||
|
Three Months Ended December 31, 2022
|
|||||||||
|
Net income |
Net income attributable to noncontrolling interests |
Net income attributable to Dole plc |
Diluted net income per share |
||||||
Reported (GAAP) |
$ |
13,389 |
|
(6,608 |
) |
$ |
6,781 |
|
$ |
0.07 |
(Income) loss from discontinued operations, net of income taxes |
|
8,318 |
|
— |
|
|
8,318 |
|
|
|
Amortization of intangible assets |
|
2,645 |
|
— |
|
|
2,645 |
|
||
Mark to market losses |
|
8,868 |
|
— |
|
|
8,868 |
|
||
Gain on asset sales |
|
(1,970 |
) |
— |
|
|
(1,970 |
) |
||
Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole |
|
681 |
|
— |
|
|
681 |
|
||
Other items |
|
1,053 |
|
— |
|
|
1,053 |
|
||
Adjustments from equity method investments |
|
662 |
|
— |
|
|
662 |
|
||
Income tax on items above and discrete tax items |
|
(8,876 |
) |
— |
|
|
(8,876 |
) |
||
NCI impact on items above |
|
— |
|
(898 |
) |
|
(898 |
) |
||
Adjusted (Non-GAAP) |
$ |
24,770 |
|
(7,506 |
) |
$ |
17,264 |
|
$ |
0.18 |
|
|
|
|
|
||||||
Weighted average shares outstanding – diluted |
|
|
|
94,928 |
|
|
||||
|
Year Ended December 31, 2023
|
|||||||||||||
|
Revenues, net |
Cost of sales |
Gross profit |
Gross Margin % |
Selling, marketing, general and administration expenses |
Other operating charges10 |
Operating Income |
|||||||
Reported (GAAP) |
$ |
8,245,268 |
(7,551,098 |
) |
694,170 |
|
8.4 % |
(473,903 |
) |
51,891 |
|
$ |
272,158 |
|
(Income) loss from discontinued operations, net of income taxes |
|
— |
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
Amortization of intangible assets |
|
— |
— |
|
— |
|
10,198 |
|
— |
|
|
10,198 |
|
|
Mark to market losses |
|
— |
(2,638 |
) |
(2,638 |
) |
— |
|
— |
|
|
(2,638 |
) |
|
Gain on asset sales |
|
— |
— |
|
— |
|
— |
|
(52,495 |
) |
|
(52,495 |
) |
|
Cyber-related incident |
|
— |
— |
|
— |
|
5,321 |
|
— |
|
|
5,321 |
|
|
Other items |
|
— |
3,205 |
|
3,205 |
|
(34 |
) |
— |
|
|
3,171 |
|
|
Adjustments from equity method investments |
|
— |
— |
|
— |
|
— |
|
— |
|
|
— |
|
|
Income tax on items above and discrete tax items |
|
— |
— |
|
— |
|
— |
|
— |
|
|
— |
|
|
NCI impact on items above |
|
— |
— |
|
— |
|
— |
|
— |
|
|
— |
|
|
Adjusted (Non-GAAP) |
$ |
8,245,268 |
(7,550,531 |
) |
694,737 |
|
8.4 % |
(458,418 |
) |
(604 |
) |
$ |
235,715 |
|
10 Other operating charges for the year ended December 31, 2023 is primarily comprised of a $54.1 million gain on asset sales, partially offset by $2.2 million of impairment charges and asset write-downs of property, plant and equipment, as reported in the consolidated statements of operations. |
||||||||||||||
|
Year Ended December 31, 2022
|
|||||||||||||
|
Revenues, net |
Cost of sales |
Gross profit |
Gross Margin % |
Selling, marketing, general and administration expenses |
Other operating charges11 |
Operating Income |
|||||||
Reported (GAAP) |
$ |
8,024,403 |
(7,424,525 |
) |
599,878 |
|
7.5 % |
(436,192 |
) |
11,579 |
|
$ |
175,265 |
|
(Income) loss from discontinued operations, net of income taxes |
|
— |
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
Amortization of intangible assets |
|
— |
— |
|
— |
|
10,893 |
|
— |
|
|
10,893 |
|
|
Mark to market losses |
|
— |
2,848 |
|
2,848 |
|
— |
|
— |
|
|
2,848 |
|
|
Gain on asset sales |
|
— |
— |
|
— |
|
— |
|
(10,316 |
) |
|
(10,316 |
) |
|
Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole |
|
— |
41,145 |
|
41,145 |
|
— |
|
— |
|
|
41,145 |
|
|
Other items |
|
— |
(452 |
) |
(452 |
) |
(910 |
) |
587 |
|
|
(775 |
) |
|
Adjustments from equity method investments |
|
— |
— |
|
— |
|
— |
|
— |
|
|
— |
|
|
Income tax on items above and discrete tax items |
|
— |
— |
|
— |
|
— |
|
— |
|
|
— |
|
|
NCI impact on items above |
|
— |
— |
|
— |
|
— |
|
— |
|
|
— |
|
|
Adjusted (Non-GAAP) |
$ |
8,024,403 |
(7,380,984 |
) |
643,419 |
|
8.0 % |
(426,209 |
) |
1,850 |
|
$ |
219,060 |
|
11 Other operating charges for the year ended December 31, 2022 is primarily comprised of a $11.8 million gain on asset sales, partially offset by $0.4 million of impairment charges and asset write-downs of property, plant and equipment, as reported in the consolidated statements of operations. |
||||||||||||||
|
Year Ended December 31, 2023
|
||||||||||||||
|
Other income, net |
Interest income |
Interest expense |
Income tax (expense) |
Equity earnings |
Income from continuing operations |
Loss from discontinued operations, net of income taxes |
||||||||
Reported (GAAP) |
$ |
4,799 |
|
10,083 |
(81,113 |
) |
(43,591 |
) |
15,191 |
|
177,527 |
|
$ |
(21,818 |
) |
(Income) loss from discontinued operations, net of income taxes |
|
— |
|
— |
— |
|
— |
|
— |
|
— |
|
|
21,818 |
|
Amortization of intangible assets |
|
— |
|
— |
— |
|
— |
|
— |
|
10,198 |
|
|
— |
|
Mark to market losses |
|
5,162 |
|
— |
— |
|
— |
|
— |
|
2,524 |
|
|
— |
|
Gain on asset sales |
|
— |
|
— |
— |
|
— |
|
— |
|
(52,495 |
) |
|
— |
|
Cyber-related incident |
|
— |
|
— |
— |
|
— |
|
— |
|
5,321 |
|
|
— |
|
Other items |
|
(253 |
) |
— |
— |
|
— |
|
— |
|
2,918 |
|
|
— |
|
Adjustments from equity method investments |
|
— |
|
— |
— |
|
— |
|
1,956 |
|
1,956 |
|
|
— |
|
Income tax on items above and discrete tax items |
|
— |
|
— |
— |
|
5,643 |
|
(400 |
) |
5,243 |
|
|
— |
|
NCI impact on items above |
|
— |
|
— |
— |
|
— |
|
— |
|
— |
|
|
— |
|
Adjusted (Non-GAAP) |
$ |
9,708 |
|
10,083 |
(81,113 |
) |
(37,948 |
) |
16,747 |
|
153,192 |
|
$ |
— |
|
|
Year Ended December 31, 2022
|
|||||||||||||
|
Other income, net |
Interest income |
Interest expense |
Income tax expense |
Equity earnings |
Income from continuing operations |
Loss from discontinued operations, net of income taxes |
|||||||
Reported (GAAP) |
$ |
10,600 |
6,407 |
(56,371 |
) |
25,603 |
|
6,726 |
|
168,230 |
|
$ |
(56,447 |
) |
(Income) loss from discontinued operations, net of income taxes |
|
— |
— |
— |
|
— |
|
— |
|
— |
|
|
56,447 |
|
Amortization of intangible assets |
|
— |
— |
— |
|
— |
|
— |
|
10,893 |
|
|
— |
|
Mark to market losses |
|
201 |
— |
— |
|
— |
|
— |
|
3,049 |
|
|
— |
|
Gain on asset sales |
|
— |
— |
— |
|
— |
|
— |
|
(10,316 |
) |
|
— |
|
Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole |
|
— |
— |
— |
|
— |
|
— |
|
41,145 |
|
|
— |
|
Other items |
|
— |
— |
— |
|
— |
|
544 |
|
(231 |
) |
|
— |
|
Adjustments from equity method investments |
|
— |
— |
— |
|
— |
|
2,580 |
|
2,580 |
|
|
— |
|
Income tax on items above and discrete tax items |
|
— |
— |
— |
|
(50,097 |
) |
(407 |
) |
(50,504 |
) |
|
— |
|
NCI impact on items above |
|
— |
— |
— |
|
— |
|
— |
|
— |
|
|
— |
|
Adjusted (Non-GAAP) |
$ |
10,801 |
6,407 |
(56,371 |
) |
(24,494 |
) |
9,443 |
|
164,846 |
|
$ |
— |
|
|
Year Ended December 31, 2023
|
|||||||||
|
||||||||||
|
Net income |
Net income attributable to noncontrolling interests |
Net income attributable to Dole plc |
Diluted net income per share |
||||||
Reported (GAAP) |
$ |
155,709 |
|
(31,646 |
) |
$ |
124,063 |
|
$ |
1.30 |
(Income) loss from discontinued operations, net of income taxes |
|
21,818 |
|
— |
|
|
21,818 |
|
|
|
Amortization of intangible assets |
|
10,198 |
|
— |
|
|
10,198 |
|
||
Mark to market losses |
|
2,524 |
|
— |
|
|
2,524 |
|
||
Gain on asset sales |
|
(52,495 |
) |
— |
|
|
(52,495 |
) |
||
Cyber-related incident |
|
5,321 |
|
— |
|
|
5,321 |
|
||
Other items |
|
2,918 |
|
— |
|
|
2,918 |
|
||
Adjustments from equity method investments |
|
1,956 |
|
— |
|
|
1,956 |
|
||
Income tax on items above and discrete tax items |
|
5,243 |
|
— |
|
|
5,243 |
|
||
NCI impact on items above |
|
— |
|
(3,494 |
) |
|
(3,494 |
) |
||
Adjusted (Non-GAAP) |
$ |
153,192 |
|
(35,140 |
) |
$ |
118,052 |
|
$ |
1.24 |
|
|
|
|
|
||||||
Weighted average shares outstanding – diluted |
|
|
|
95,118 |
|
|
||||
|
Year Ended December 31, 2022
|
|||||||||
|
||||||||||
|
Net income |
Net income attributable to noncontrolling interests |
Net income attributable to Dole plc |
Diluted net income per share |
||||||
Reported (GAAP) |
$ |
111,783 |
|
(25,287 |
) |
$ |
86,496 |
|
$ |
0.91 |
(Income) loss from discontinued operations, net of income taxes |
|
56,447 |
|
— |
|
|
56,447 |
|
|
|
Amortization of intangible assets |
|
10,893 |
|
— |
|
|
10,893 |
|
||
Mark to market losses |
|
3,049 |
|
— |
|
|
3,049 |
|
||
Gain on asset sales |
|
(10,316 |
) |
— |
|
|
(10,316 |
) |
||
Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole |
|
41,145 |
|
— |
|
|
41,145 |
|
||
Other items |
|
(231 |
) |
— |
|
|
(231 |
) |
||
Adjustments from equity method investments |
|
2,580 |
|
— |
|
|
2,580 |
|
||
Income tax on items above and discrete tax items |
|
(50,504 |
) |
— |
|
|
(50,504 |
) |
||
NCI impact on items above |
|
— |
|
(3,187 |
) |
|
(3,187 |
) |
||
Adjusted (Non-GAAP) |
$ |
164,846 |
|
(28,474 |
) |
$ |
136,372 |
|
$ |
1.44 |
|
|
|
|
|
||||||
Weighted average shares outstanding – diluted |
|
|
|
94,914 |
|
|
||||
Supplemental Reconciliation of Prior Year Segment Results to Current Year Segment Results – Unaudited
|
Revenue for the Three Months Ended |
|||||||||||||||||
|
December 31,
|
|
Impact of
|
|
Impact of
|
|
Like-for-like
|
|
December 31,
|
|||||||||
|
(U.S. Dollars in thousands) |
|||||||||||||||||
Fresh Fruit |
$ |
740,167 |
|
|
$ |
— |
|
$ |
— |
|
$ |
8,536 |
|
|
$ |
748,703 |
|
|
Diversified Fresh Produce - EMEA |
|
751,594 |
|
|
|
33,388 |
|
|
12,170 |
|
|
65,713 |
|
|
|
862,865 |
|
|
Diversified Fresh Produce - Americas & ROW |
|
573,936 |
|
|
|
55 |
|
|
— |
|
|
(84,230 |
) |
|
|
489,761 |
|
|
Intersegment |
|
(23,129 |
) |
|
|
— |
|
|
— |
|
|
(5,945 |
) |
|
|
(29,074 |
) |
|
Total |
$ |
2,042,568 |
|
|
$ |
33,443 |
|
$ |
12,170 |
|
$ |
(15,926 |
) |
|
$ |
2,072,255 |
|
|
|
Adjusted EBITDA for the Three Months Ended |
|||||||||||||||||
|
December 31,
|
|
Impact of
|
|
Impact of
|
|
Like-for-like
|
|
December 31,
|
|||||||||
|
(U.S. Dollars in thousands) |
|||||||||||||||||
Fresh Fruit |
$ |
39,460 |
|
$ |
(82 |
) |
|
$ |
— |
|
|
$ |
(10,586 |
) |
|
$ |
28,792 |
|
Diversified Fresh Produce - EMEA |
|
22,656 |
|
|
1,132 |
|
|
|
376 |
|
|
|
8,474 |
|
|
|
32,638 |
|
Diversified Fresh Produce - Americas & ROW |
|
15,396 |
|
|
(15 |
) |
|
|
(529 |
) |
|
|
575 |
|
|
|
15,427 |
|
Total |
$ |
77,512 |
|
$ |
1,035 |
|
|
$ |
(153 |
) |
|
$ |
(1,537 |
) |
|
$ |
76,857 |
|
|
Revenue for the Year Ended |
||||||||||||||||||
|
December 31,
|
|
Impact of
|
|
Impact of
|
|
Like-for-like
|
|
December 31,
|
||||||||||
|
(U.S. Dollars in thousands) |
||||||||||||||||||
Fresh Fruit |
$ |
3,047,149 |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
88,717 |
|
|
$ |
3,135,866 |
|
|
Diversified Fresh Produce - EMEA |
|
3,152,561 |
|
|
|
33,200 |
|
|
|
35,812 |
|
|
211,372 |
|
|
|
3,432,945 |
|
|
Diversified Fresh Produce - Americas & ROW |
|
1,965,667 |
|
|
|
(6,469 |
) |
|
|
— |
|
|
(159,030 |
) |
|
|
1,800,168 |
|
|
Intersegment |
|
(140,974 |
) |
|
|
— |
|
|
|
|
|
17,263 |
|
|
|
(123,711 |
) |
||
Total |
$ |
8,024,403 |
|
|
$ |
26,731 |
|
|
$ |
35,812 |
|
$ |
158,322 |
|
|
$ |
8,245,268 |
|
|
|
Adjusted EBITDA for the Year Ended |
||||||||||||||||
|
December 31,
|
|
Impact of
|
|
Impact of
|
|
Like-for-like
|
|
December 31,
|
||||||||
|
(U.S. Dollars in thousands) |
||||||||||||||||
Fresh Fruit |
$ |
205,547 |
|
$ |
(412 |
) |
|
$ |
— |
|
$ |
3,795 |
|
|
$ |
208,930 |
|
Diversified Fresh Produce - EMEA |
|
111,053 |
|
|
1,345 |
|
|
|
1,834 |
|
|
19,338 |
|
|
|
133,570 |
|
Diversified Fresh Produce - Americas & ROW |
|
43,796 |
|
|
(260 |
) |
|
|
969 |
|
|
(1,887 |
) |
|
|
42,618 |
|
Total |
$ |
360,396 |
|
$ |
673 |
|
|
$ |
2,803 |
|
$ |
21,246 |
|
|
$ |
385,118 |
|
Net Debt Reconciliation – Unaudited
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 December 31, 2023 is presented below. Net Debt as of December 31, 2023 was $0.8 billion.
|
December 31, 2023 |
|
December 31, 2022 |
|||||
|
(U.S. Dollars in thousands) |
|||||||
Cash and cash equivalents (Reported GAAP) |
$ |
275,580 |
|
|
$ |
228,840 |
|
|
Debt (Reported GAAP): |
|
|
|
|||||
Long-term debt, net |
|
(845,013 |
) |
|
|
(1,127,321 |
) |
|
Current maturities |
|
(222,940 |
) |
|
|
(97,435 |
) |
|
Bank overdrafts |
|
(11,488 |
) |
|
|
(8,623 |
) |
|
Total debt, net |
|
(1,079,441 |
) |
|
|
(1,233,379 |
) |
|
Less: Debt discounts and debt issuance costs (Reported GAAP) |
|
(14,395 |
) |
|
|
(17,874 |
) |
|
Total gross debt |
|
(1,093,836 |
) |
|
|
(1,251,253 |
) |
|
Net Debt (Non-GAAP) |
$ |
(818,256 |
) |
|
$ |
(1,022,413 |
) |
|
Free Cash Flow from Continuing Operations Reconciliation – Unaudited
|
Year Ended |
|||||||
|
December 31, 2023 |
|
December 31, 2022 |
|||||
|
|
|
|
|||||
|
(U.S. Dollars in thousands) |
|||||||
Net cash provided by operating activities - continuing operations (Reported GAAP) |
$ |
298,605 |
|
|
$ |
323,612 |
|
|
Less: Capital expenditures (Reported GAAP)12 |
|
(78,041 |
) |
|
|
(85,564 |
) |
|
Free cash flow from continuing operations (Non-GAAP) |
$ |
220,564 |
|
|
$ |
238,048 |
|
|
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) adding the loss or subtracting the income from discontinued operations, net of income taxes; (2) adding the income tax expense or subtracting the income tax benefit; (3) adding interest expense; (4) adding mark to market losses or subtracting mark to market gains related to unrealized impacts from derivative instruments and foreign currency denominated borrowings, realized impacts on noncash settled foreign currency denominated borrowings, net foreign currency impacts on liquidated entities and fair value movements on contingent consideration; (5) other items which are separately stated based on materiality, which during the years ended December 31, 2023 and December 31, 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 impairment charges on property, plant and equipment, 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 years ended December 31, 2023 and December 31, 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 impairment charges on property, plant and equipment, 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 years ended December 31, 2023 and December 31, 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 impairment charges on property, plant and equipment, 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'24 results without taking unreasonable efforts.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240229620633/en/