Dole plc (NYSE:DOLE) ("Dole" or the "Group" or the "Company") today released its financial results for the three and nine months ended September 30, 2023.
Highlights for the three months ended September 30, 2023:
- Revenue of $2.0 billion, an increase of 4.2%
- Net Income of $54.0 million, an increase of 15.9%
- Adjusted EBITDA1 of $85.2 million, an increase of 7.6%
- Adjusted Net Income of $22.6 million and Adjusted Diluted EPS of $0.24
- Cash proceeds of $45.5 million related to asset sales
Financial Highlights - Unaudited
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
|
(U.S. Dollars in millions, except per share amounts) |
||||||
Revenue |
|
2,043 |
|
1,961 |
|
6,173 |
|
5,982 |
Income from continuing operations 2 |
|
55.7 |
|
58.3 |
|
154.4 |
|
146.5 |
Net Income |
|
54.0 |
|
46.6 |
|
126.8 |
|
98.4 |
Net Income attributable to Dole plc |
|
45.3 |
|
39.8 |
|
101.7 |
|
79.7 |
Diluted EPS from continuing operations |
|
0.50 |
|
0.54 |
|
1.36 |
|
1.35 |
Diluted EPS |
|
0.48 |
|
0.42 |
|
1.07 |
|
0.84 |
Adjusted EBITDA1 |
|
85.2 |
|
79.2 |
|
308.3 |
|
282.9 |
Adjusted Net Income1 |
|
22.6 |
|
26.2 |
|
103.2 |
|
119.1 |
Adjusted Diluted EPS1 |
|
0.24 |
|
0.28 |
|
1.09 |
|
1.25 |
____________________ |
1 Dole plc reports its financial results in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). See full GAAP financial results in the appendix. Adjusted EBIT, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings Per Share, Net Debt and Free Cash Flow from Continuing Operations are non-GAAP financial measures. Refer to the appendix of this release for an explanation and reconciliation of these and other non-GAAP financial measures used in this release to comparable GAAP financial measures. |
2 Fresh Vegetables results are reported separately as discontinued operations, net of income taxes, in our condensed consolidated statements of operations, its assets and liabilities are separately presented in our condensed consolidated balance sheets, and its cash flows are presented separately in our condensed consolidated statements of cash flows for all periods presented. Unless otherwise noted, our discussion of our results included herein, outlook and all supplementary tables, including non-GAAP financial measures, are presented on a continuing operations basis. |
Commenting on the results, Carl McCann, Executive Chairman, said:
"We are very pleased that our momentum from the first half of the year has continued into the third quarter. We delivered another strong set of results, with Revenue growth of 4.2% and Adjusted EBITDA growth of 7.6%.
As we move towards the end of the financial year, our strong result for the first nine months positions us to deliver a good result for the year and we are now targeting Adjusted EBITDA for 2023 of at least $365.0 million.
Once again, we would like to extend our appreciation to all of our people across the Group for their dedication and efforts in delivering these results."
Group Results - Third Quarter
Revenue increased 4.2%, or $82.0 million, primarily due to strong performance in the Diversified EMEA segment, offset partially by the Diversified Americas and Fresh Fruit segments. On a like-for-like basis3, revenue was 1.2%, or $23.6 million, ahead of prior year.
Adjusted EBITDA increased 7.6%, or $6.0 million, primarily driven by stronger performance in the Diversified Americas and Diversified EMEA segments. On a like-for-like basis, Adjusted EBITDA increased 4.2%, or $3.4 million.
Adjusted Net Income decreased $3.6 million, predominantly due to higher interest expense and tax expense, offset by the increases in Adjusted EBITDA as noted above and lower depreciation. Adjusted Diluted EPS for the three months ended September 30, 2023 was $0.24 compared to $0.28 in the prior year.
____________________ |
3 Like-for-like basis refers to the measure excluding the impact of foreign currency translation movements and acquisitions and divestitures. |
Selected Segmental Financial Information (Unaudited)
|
Three Months Ended |
||||||||||||||
|
September 30, 2023 |
|
September 30, 2022 |
||||||||||||
|
(U.S. Dollars in thousands) |
||||||||||||||
|
Revenue |
|
Adjusted EBITDA |
|
Revenue |
|
Adjusted EBITDA |
||||||||
Fresh Fruit |
$ |
749,210 |
|
|
$ |
45,111 |
|
$ |
751,348 |
|
|
$ |
49,382 |
|
|
Diversified Fresh Produce - EMEA |
|
856,351 |
|
|
|
34,923 |
|
|
|
759,964 |
|
|
|
30,686 |
|
Diversified Fresh Produce - Americas & ROW |
|
470,011 |
|
|
|
5,159 |
|
|
|
479,839 |
|
|
|
(870 |
) |
Intersegment |
|
(32,900 |
) |
|
|
— |
|
|
|
(30,456 |
) |
|
|
— |
|
Total |
$ |
2,042,672 |
|
|
$ |
85,193 |
|
|
$ |
1,960,695 |
|
|
$ |
79,198 |
|
|
Nine Months Ended |
||||||||||||||
|
September 30, 2023 |
|
September 30, 2022 |
||||||||||||
|
(U.S. Dollars in thousands) |
||||||||||||||
|
Revenue |
|
Adjusted EBITDA |
|
Revenue |
|
Adjusted EBITDA |
||||||||
Fresh Fruit |
$ |
2,387,163 |
|
|
$ |
180,138 |
|
$ |
2,306,982 |
|
|
$ |
166,087 |
||
Diversified Fresh Produce - EMEA |
|
2,570,080 |
|
|
|
100,932 |
|
|
|
2,400,967 |
|
|
|
88,397 |
|
Diversified Fresh Produce - Americas & ROW |
|
1,310,407 |
|
|
|
27,191 |
|
|
|
1,391,731 |
|
|
|
28,399 |
|
Intersegment |
|
(94,637 |
) |
|
|
— |
|
|
|
(117,845 |
) |
|
|
— |
|
Total |
$ |
6,173,013 |
|
|
$ |
308,261 |
|
|
$ |
5,981,835 |
|
|
$ |
282,883 |
|
Fresh Fruit
Revenue decreased 0.3%, or $2.1 million. Revenue was negatively impacted by lower banana prices in North America, partially offset by higher worldwide volumes of bananas sold, an increase in worldwide pricing of pineapples and stronger pricing of bananas in Europe.
Adjusted EBITDA decreased 8.6%, or $4.3 million. Adjusted EBITDA was primarily impacted by lower revenue, higher fruit sourcing costs and a decrease in commercial cargo activity, partially offset by lower shipping and logistics costs, as well as by strong pricing excluding the impact of fuel surcharges.
Diversified Fresh Produce – EMEA
Revenue increased 12.7%, or $96.4 million, primarily driven by a favorable impact from foreign currency translation of $54.4 million, inflation-justified price increases across the segment and a positive impact from acquisitions of $5.5 million. On a like-for-like basis, revenue was 4.8%, or $36.5 million, ahead of prior year.
Adjusted EBITDA increased 13.8%, or $4.2 million, primarily driven by a favorable impact from foreign currency translation of $2.0 million, an incremental positive impact from acquisitions of $0.2 million and strong performance in Ireland, the U.K., Spain and Holland. On a like-for-like basis, Adjusted EBITDA was 6.6%, or $2.0 million, ahead of prior year.
Diversified Fresh Produce – Americas & ROW
Revenue decreased 2.0%, or $9.8 million, primarily driven by lower revenue for berries in North America, as well as by lower volumes of most other commodities, partially offset by inflation-justified price increases.
Adjusted EBITDA increased 693.0%, or $6.0 million, primarily due to continued strong performance in most products that we market in North America, as well as by a favorable comparison to the three months ended September 2022, which had a challenging end to the Chilean grapes season due to abnormal supply chain disruption. These increases were partially offset by a challenging quarter for berries in North America.
Capital Expenditures
Capital expenditures for the nine months ended September 30, 2023 were $51.3 million, which included investments in farm renovations and ongoing investments in IT, logistics and efficiency projects in our warehouses and processing facilities. This amount only includes capital expenditures from continuing operations.
Sales of Assets
Sales of assets for the nine months ended September 30, 2023 were $64.1 million, compared to $27.8 million for the nine months ended September 30, 2022. These sales resulted in a gain on asset sales of $43.4 million for the nine months ended September 30, 2023, compared to $9.2 million for the nine months ended September 30, 2022. The increase was driven by $45.5 million of cash proceeds received during the three months ended September 30, 2023, resulting in a gain of $28.7 million. These proceeds were predominantly from the sale of idle land in Hawaii, which realized cash proceeds of $44.0 million.
Free Cash Flow from Continuing Operations and Net Debt
Free Cash Flow from Continuing Operations was $105.8 million for the nine months ended September 30, 2023. Free Cash Flow from Continuing Operations benefited from strong Adjusted EBITDA performance for the first nine months of the year and good working capital management across the Group. Net Debt as of September 30, 2023 was $0.9 billion.
Outlook for Fiscal Year 2023 (forward-looking statement)
We are very pleased with the Group's performance in the first nine months of the year, delivering $308.3 million of Adjusted EBITDA.
While the wider macro-environment continues to remain complex and impacts from weather events remain unpredictable, we remain confident in the strength of our diversified supply base and the experience and quality of our operating teams across the globe to deal with challenges as they arise.
Overall, our strong results for the first nine months position us well to deliver a good result for the year and we are now targeting Adjusted EBITDA for 2023 of at least $365.0 million.
Dividend
On November 15, 2023, the Board of Directors of Dole plc declared a cash dividend for the third quarter of 2023 of $0.08 per share, payable on January 4, 2024 to shareholders of record on December 14, 2023. A cash dividend of $0.08 per share was paid on October 5, 2023 for the second quarter of 2023.
About Dole plc
A global leader in fresh produce, Dole plc produces, markets, and distributes an extensive variety of fresh fruits and vegetables sourced locally and from around the world. Dedicated and passionate in exceeding our customers' requirements in over 75 countries, our goal is to make the world a healthier and a more sustainable place.
Webcast and Conference Call Information
Dole plc will host a conference call and simultaneous webcast at 08:00 a.m. Eastern Time today to discuss the third quarter 2023 financial results. The webcast can be accessed at www.doleplc.com/investor-relations
The conference call can be accessed live by dialing (646) 307-1963 in the US or +353 (1) 582 2023 in Ireland and +44 20 3481 4247 for UK and other international participants. The conference ID is 6406315.
Forward-looking information
Certain statements made in this press release that are not historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on management's beliefs, assumptions, and expectations of our future economic performance, considering the information currently available to management. These statements are not statements of historical fact. The words "believe," "may," "could," "will," "should," "would," "anticipate," "estimate," "expect," "intend," "objective," "seek," "strive," "target" or similar words, or the negative of these words, identify forward-looking statements. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates, or expectations contemplated by us will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial condition, business prospects, growth strategy and liquidity. Accordingly, there are, or will be, important factors that could cause our actual results to differ materially from those indicated in these statements. If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from what we may have expressed or implied by these forward-looking statements. We caution that you should not place undue reliance on any of our forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made except as required by the federal securities laws.
Appendix
Consolidated Statement of Operations - Unaudited
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||
|
(U.S. Dollars and shares in thousands, except per share amounts) |
||||||||||||||
Revenues, net |
$ |
2,042,672 |
|
|
$ |
1,960,695 |
|
|
$ |
6,173,013 |
|
|
$ |
5,981,835 |
|
Cost of sales |
|
(1,876,292 |
) |
|
|
(1,829,233 |
) |
|
|
(5,631,021 |
) |
|
|
(5,533,069 |
) |
Gross profit |
|
166,380 |
|
|
|
131,462 |
|
|
|
541,992 |
|
|
|
448,766 |
|
Selling, marketing, general and administrative expenses |
|
(118,023 |
) |
|
|
(103,349 |
) |
|
|
(354,569 |
) |
|
|
(323,258 |
) |
Gain on disposal of businesses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
242 |
|
Gain on asset sales |
|
28,746 |
|
|
|
767 |
|
|
|
43,442 |
|
|
|
9,188 |
|
Operating income |
|
77,103 |
|
|
|
28,880 |
|
|
|
230,865 |
|
|
|
134,938 |
|
Other income, net |
|
4,817 |
|
|
|
9,199 |
|
|
|
7,721 |
|
|
|
19,765 |
|
Interest income |
|
2,311 |
|
|
|
1,427 |
|
|
|
7,260 |
|
|
|
4,421 |
|
Interest expense |
|
(20,899 |
) |
|
|
(15,677 |
) |
|
|
(62,359 |
) |
|
|
(38,126 |
) |
Income from continuing operations before income taxes and equity earnings |
|
63,332 |
|
|
|
23,829 |
|
|
|
183,487 |
|
|
|
120,998 |
|
Income tax (expense) benefit |
|
(13,017 |
) |
|
|
34,155 |
|
|
|
(40,604 |
) |
|
|
21,497 |
|
Equity method earnings |
|
5,342 |
|
|
|
300 |
|
|
|
11,508 |
|
|
|
4,028 |
|
Income from continuing operations |
|
55,657 |
|
|
|
58,284 |
|
|
|
154,391 |
|
|
|
146,523 |
|
Loss from discontinued operations, net of income taxes |
|
(1,672 |
) |
|
|
(11,704 |
) |
|
|
(27,616 |
) |
|
|
(48,129 |
) |
Net income |
|
53,985 |
|
|
|
46,580 |
|
|
|
126,775 |
|
|
|
98,394 |
|
Less: Net income attributable to noncontrolling interests |
|
(8,693 |
) |
|
|
(6,743 |
) |
|
|
(25,049 |
) |
|
|
(18,679 |
) |
Net income attributable to Dole plc |
$ |
45,292 |
|
|
$ |
39,837 |
|
|
$ |
101,726 |
|
|
$ |
79,715 |
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) per share - basic: |
|
|
|
|
|
|
|
||||||||
Continuing operations |
$ |
0.50 |
|
|
$ |
0.54 |
|
|
$ |
1.36 |
|
|
$ |
1.35 |
|
Discontinued operations |
|
(0.02 |
) |
|
|
(0.12 |
) |
|
|
(0.29 |
) |
|
|
(0.51 |
) |
Net income per share attributable to Dole plc - basic |
$ |
0.48 |
|
|
$ |
0.42 |
|
|
$ |
1.07 |
|
|
$ |
0.84 |
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) per share - diluted: |
|
|
|
|
|
|
|
||||||||
Continuing operations |
$ |
0.50 |
|
|
$ |
0.54 |
|
|
$ |
1.36 |
|
|
$ |
1.35 |
|
Discontinued operations |
|
(0.02 |
) |
|
|
(0.12 |
) |
|
|
(0.29 |
) |
|
|
(0.51 |
) |
Net income per share attributable to Dole plc - diluted |
$ |
0.48 |
|
|
$ |
0.42 |
|
|
$ |
1.07 |
|
|
$ |
0.84 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares: |
|
|
|
|
|
|
|
||||||||
Basic |
|
94,929 |
|
|
|
94,891 |
|
|
|
94,912 |
|
|
|
94,882 |
|
Diluted |
|
95,148 |
|
|
|
94,908 |
|
|
|
95,094 |
|
|
|
94,910 |
|
Consolidated Balance Sheets - Unaudited
|
September 30, 2023 |
|
December 31, 2022 |
||||
ASSETS |
(U.S. Dollars and shares in thousands) |
||||||
Cash and cash equivalents |
$ |
217,523 |
|
|
$ |
228,840 |
|
Short-term investments |
|
5,735 |
|
|
|
5,367 |
|
Trade receivables, net of allowances for credit losses of $22,498 and $18,001, respectively |
|
575,205 |
|
|
|
610,384 |
|
Grower advance receivables, net of allowances for credit losses of $20,946 and $15,817, respectively |
|
124,981 |
|
|
|
106,864 |
|
Other receivables, net of allowances for credit losses of $13,733 and $14,538, respectively |
|
114,513 |
|
|
|
132,947 |
|
Inventories, net of allowances of $3,889 and $4,186, respectively |
|
366,718 |
|
|
|
394,150 |
|
Prepaid expenses |
|
59,709 |
|
|
|
48,995 |
|
Other current assets |
|
33,303 |
|
|
|
15,034 |
|
Fresh Vegetables current assets held for sale |
|
414,222 |
|
|
|
62,252 |
|
Other assets held for sale |
|
10,318 |
|
|
|
645 |
|
Total current assets |
|
1,922,227 |
|
|
|
1,605,478 |
|
Long-term investments |
|
15,468 |
|
|
|
16,498 |
|
Investments in unconsolidated affiliates |
|
127,429 |
|
|
|
124,234 |
|
Actively marketed property |
|
13,781 |
|
|
|
31,007 |
|
Property, plant and equipment, net of accumulated depreciation of $414,698 and $375,721, respectively |
|
1,085,778 |
|
|
|
1,116,124 |
|
Operating lease right-of-use assets |
|
312,608 |
|
|
|
293,658 |
|
Goodwill |
|
500,892 |
|
|
|
497,453 |
|
DOLE brand |
|
306,280 |
|
|
|
306,280 |
|
Other intangible assets, net of accumulated amortization of $127,462 and $120,315, respectively |
|
43,351 |
|
|
|
50,990 |
|
Fresh Vegetables non-current assets held for sale |
|
— |
|
|
|
343,828 |
|
Other assets |
|
139,598 |
|
|
|
142,180 |
|
Deferred tax assets, net |
|
70,263 |
|
|
|
64,112 |
|
Total assets |
$ |
4,537,675 |
|
|
$ |
4,591,842 |
|
LIABILITIES AND EQUITY |
|
|
|
||||
Accounts payable |
$ |
619,914 |
|
|
$ |
640,620 |
|
Income taxes payable |
|
33,773 |
|
|
|
11,558 |
|
Accrued liabilities |
|
380,196 |
|
|
|
381,688 |
|
Bank overdrafts |
|
13,772 |
|
|
|
8,623 |
|
Current portion of long-term debt, net |
|
255,953 |
|
|
|
97,435 |
|
Current maturities of operating leases |
|
59,702 |
|
|
|
57,372 |
|
Payroll and other tax |
|
23,811 |
|
|
|
27,187 |
|
Contingent consideration |
|
663 |
|
|
|
1,791 |
|
Pension and other postretirement benefits |
|
15,878 |
|
|
|
17,287 |
|
Fresh Vegetables current liabilities held for sale |
|
294,588 |
|
|
|
199,255 |
|
Dividends payable and other current liabilities |
|
21,994 |
|
|
|
17,698 |
|
Total current liabilities |
|
1,720,244 |
|
|
|
1,460,514 |
|
Long-term debt, net |
|
859,677 |
|
|
|
1,127,321 |
|
Operating leases, less current maturities |
|
262,160 |
|
|
|
246,723 |
|
Deferred tax liabilities, net |
|
112,333 |
|
|
|
118,403 |
|
Income taxes payable, less current portion |
|
16,921 |
|
|
|
30,458 |
|
Contingent consideration, less current portion |
|
7,542 |
|
|
|
5,022 |
|
Pension and other postretirement benefits, less current portion |
|
117,946 |
|
|
|
124,646 |
|
Fresh Vegetables non-current liabilities held for sale |
|
— |
|
|
|
116,380 |
|
Other long-term liabilities |
|
43,906 |
|
|
|
43,390 |
|
Total liabilities |
$ |
3,140,729 |
|
|
$ |
3,272,857 |
|
Redeemable noncontrolling interests |
|
34,182 |
|
|
|
32,311 |
|
Stockholders' equity: |
|
|
|
||||
Common stock — $0.01 par value; 300,000 shares authorized and 94,929 and 94,899 shares outstanding as of September 30, 2023 and December 31, 2022 |
|
949 |
|
|
|
949 |
|
Additional paid-in capital |
|
796,290 |
|
|
|
795,063 |
|
Retained earnings |
|
547,912 |
|
|
|
469,249 |
|
Accumulated other comprehensive loss |
|
(112,967 |
) |
|
|
(104,133 |
) |
Total equity attributable to Dole plc |
|
1,232,184 |
|
|
|
1,161,128 |
|
Equity attributable to noncontrolling interests |
|
130,580 |
|
|
|
125,546 |
|
Total equity |
|
1,362,764 |
|
|
|
1,286,674 |
|
Total liabilities, redeemable noncontrolling interests and equity |
$ |
4,537,675 |
|
|
$ |
4,591,842 |
|
Consolidated Statements of Cash Flows - Unaudited
|
Nine Months Ended |
||||||
|
September 30, 2023 |
|
September 30, 2022 |
||||
Operating Activities |
(U.S. Dollars in thousands) |
||||||
Net income |
$ |
126,775 |
|
|
$ |
98,394 |
|
Loss from discontinued operations, net of taxes |
|
27,616 |
|
|
|
48,129 |
|
Income from continuing operations |
|
154,391 |
|
|
|
146,523 |
|
Adjustments to reconcile income from continuing operations to net cash provided by operating activities - continuing operations: |
|
|
|
||||
Depreciation and amortization |
|
76,908 |
|
|
|
81,792 |
|
Incremental charges on biological assets related to the acquisition of Legacy Dole |
|
— |
|
|
|
40,464 |
|
Net (gain) on sale of assets and asset write-offs |
|
(43,506 |
) |
|
|
(9,188 |
) |
Stock-based compensation expense |
|
4,381 |
|
|
|
3,118 |
|
Equity method earnings |
|
(11,508 |
) |
|
|
(4,028 |
) |
Amortization of debt discounts and debt issuance costs |
|
4,788 |
|
|
|
4,546 |
|
Deferred tax (benefit) |
|
(11,747 |
) |
|
|
(12,537 |
) |
Pension and other postretirement benefit plan expense |
|
4,160 |
|
|
|
482 |
|
Dividends received from equity method investments |
|
6,350 |
|
|
|
7,632 |
|
Other |
|
(6,118 |
) |
|
|
(2,277 |
) |
Changes in operating assets and liabilities: |
|
|
|
||||
Receivables, net of allowances |
|
13,858 |
|
|
|
(9,494 |
) |
Inventories |
|
26,642 |
|
|
|
(52,022 |
) |
Prepaids, accrued and other current and long-term assets and liabilities |
|
(61,465 |
) |
|
|
(11,935 |
) |
Net cash provided by operating activities - continuing operations |
|
157,134 |
|
|
|
183,076 |
|
Investing activities |
|
|
|
||||
Sales of assets |
|
64,103 |
|
|
|
27,764 |
|
Capital expenditures |
|
(51,334 |
) |
|
|
(58,555 |
) |
Acquisitions, net of cash acquired |
|
(262 |
) |
|
|
(4,886 |
) |
Insurance proceeds |
|
1,850 |
|
|
|
2,278 |
|
Purchases of investments |
|
(1,153 |
) |
|
|
(414 |
) |
Sales (purchases) of unconsolidated affiliates |
|
1,498 |
|
|
|
(801 |
) |
Other |
|
(127 |
) |
|
|
25 |
|
Net cash provided by (used in) investing activities - continuing operations |
|
14,575 |
|
|
|
(34,589 |
) |
Financing activities |
|
|
|
||||
Proceeds from borrowings and overdrafts |
|
1,190,596 |
|
|
|
1,008,423 |
|
Repayments on borrowings and overdrafts |
|
(1,300,083 |
) |
|
|
(1,050,928 |
) |
Payment of debt issuance costs |
|
— |
|
|
|
(265 |
) |
Dividends paid to shareholders |
|
(22,873 |
) |
|
|
(22,770 |
) |
Dividends paid to noncontrolling interests |
|
(24,824 |
) |
|
|
(20,981 |
) |
Other noncontrolling interest activity, net |
|
(482 |
) |
|
|
— |
|
Payment of contingent consideration |
|
(1,169 |
) |
|
|
(2,451 |
) |
Net cash used in financing activities - continuing operations |
|
(158,835 |
) |
|
|
(88,972 |
) |
Effect of foreign exchange rate changes on cash |
|
(1,716 |
) |
|
|
(19,052 |
) |
Net cash used in operating activities - discontinued operations |
|
(15,772 |
) |
|
|
(61,521 |
) |
Net cash used in investing activities - discontinued operations |
|
(6,703 |
) |
|
|
(8,027 |
) |
Cash used in discontinued operations, net |
|
(22,475 |
) |
|
|
(69,548 |
) |
(Decrease) in cash and cash equivalents |
|
(11,317 |
) |
|
|
(29,085 |
) |
Cash and cash equivalents at beginning of period |
|
228,840 |
|
|
|
250,561 |
|
Cash and cash equivalents at end of period |
$ |
217,523 |
|
|
$ |
221,476 |
|
Supplemental cash flow information: |
|
|
|
||||
Income tax payments, net of refunds |
$ |
(49,142 |
) |
|
$ |
(39,628 |
) |
Interest payments on borrowings |
$ |
(62,771 |
) |
|
$ |
(39,703 |
) |
Reconciliation from Net Income to Adjusted EBITDA - Unaudited
The following information is provided to give quantitative information related to items impacting comparability. Refer to the 'Non-GAAP Financial Measures' section of this document for additional detail on each item.
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||
|
(U.S. Dollars in thousands) |
||||||||||||||
Net income (Reported GAAP) |
$ |
53,985 |
|
|
$ |
46,580 |
|
|
$ |
126,775 |
|
|
$ |
98,394 |
|
Loss from discontinued operations, net of income taxes |
|
1,672 |
|
|
|
11,704 |
|
|
|
27,616 |
|
|
|
48,129 |
|
Income from continuing operations (Reported GAAP) |
|
55,657 |
|
|
|
58,284 |
|
|
|
154,391 |
|
|
|
146,523 |
|
Income tax expense (benefit) |
|
13,017 |
|
|
|
(34,155 |
) |
|
|
40,604 |
|
|
|
(21,497 |
) |
Interest expense |
|
20,899 |
|
|
|
15,677 |
|
|
|
62,359 |
|
|
|
38,126 |
|
Mark to market (gains) losses |
|
(4,783 |
) |
|
|
2,310 |
|
|
|
(2,926 |
) |
|
|
(5,819 |
) |
(Gain) on asset sales |
|
(28,802 |
) |
|
|
(530 |
) |
|
|
(43,356 |
) |
|
|
(8,346 |
) |
Incremental charges on biological assets related to the acquisition of Legacy Dole |
|
— |
|
|
|
5,520 |
|
|
|
— |
|
|
|
40,464 |
|
Cyber-related incident |
|
— |
|
|
|
— |
|
|
|
5,321 |
|
|
|
— |
|
Other items 4 |
|
222 |
|
|
|
(532 |
) |
|
|
1,085 |
|
|
|
(1,284 |
) |
Adjustments from equity method investments |
|
2,160 |
|
|
|
1,603 |
|
|
|
6,405 |
|
|
|
4,926 |
|
Adjusted EBIT (Non-GAAP) |
|
58,370 |
|
|
|
48,177 |
|
|
|
223,883 |
|
|
|
193,093 |
|
Depreciation |
|
21,737 |
|
|
|
25,315 |
|
|
|
69,182 |
|
|
|
73,544 |
|
Amortization of intangible assets |
|
2,536 |
|
|
|
2,633 |
|
|
|
7,726 |
|
|
|
8,248 |
|
Depreciation and amortization adjustments from equity method investments |
|
2,550 |
|
|
|
3,073 |
|
|
|
7,470 |
|
|
|
7,998 |
|
Adjusted EBITDA (Non-GAAP) |
$ |
85,193 |
|
|
$ |
79,198 |
|
|
$ |
308,261 |
|
|
$ |
282,883 |
|
____________________ |
4 For the three months ended September 30, 2023, other items is primarily comprised of $0.2 million of asset writedowns, net of insurance proceeds. For the three months ended September 30, 2022, other items is primarily comprised of $1.0 million in legal cost adjustments, partially offset by $0.5 million of asset writedowns, net of insurance proceeds. For the nine months ended September 30, 2023, other items is primarily comprised of $1.1 million of asset writedowns, net of insurance proceeds. For the nine months ended September 30, 2022, other items is primarily comprised of $1.0 million in legal cost adjustments and $0.3 million in gains on disposal of a business. |
Reconciliation from Net Income attributable to Dole plc to Adjusted Net Income - Unaudited
The following information is provided to give quantitative information related to items impacting comparability. Refer to the 'Non-GAAP Financial Measures' section of this document for additional detail on each item. Refer to the Appendix for supplementary detail.
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||
|
(U.S. Dollars and shares in thousands, except per share amounts) |
||||||||||||||
Net income attributable to Dole plc (Reported GAAP) |
$ |
45,292 |
|
|
$ |
39,837 |
|
|
$ |
101,726 |
|
|
$ |
79,715 |
|
Loss from discontinued operations, net of income taxes |
|
1,672 |
|
|
|
11,704 |
|
|
|
27,616 |
|
|
|
48,129 |
|
Income from continuing operations attributable to Dole plc |
|
46,964 |
|
|
|
51,541 |
|
|
|
129,342 |
|
|
|
127,844 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Amortization of intangible assets |
|
2,536 |
|
|
|
2,633 |
|
|
|
7,726 |
|
|
|
8,248 |
|
Mark to market (gains) losses |
|
(4,783 |
) |
|
|
2,310 |
|
|
|
(2,926 |
) |
|
|
(5,819 |
) |
(Gain) on asset sales |
|
(28,802 |
) |
|
|
(530 |
) |
|
|
(43,356 |
) |
|
|
(8,346 |
) |
Incremental charges on biological assets related to the acquisition of Legacy Dole |
|
— |
|
|
|
5,520 |
|
|
|
— |
|
|
|
40,464 |
|
Cyber-related incident |
|
— |
|
|
|
— |
|
|
|
5,321 |
|
|
|
— |
|
Other items 5 |
|
222 |
|
|
|
(532 |
) |
|
|
1,085 |
|
|
|
(1,284 |
) |
Adjustments from equity method investments |
|
610 |
|
|
|
628 |
|
|
|
1,352 |
|
|
|
1,918 |
|
Income tax on items above and discrete tax items |
|
6,464 |
|
|
|
(34,501 |
) |
|
|
6,952 |
|
|
|
(41,628 |
) |
NCI impact on items above |
|
(645 |
) |
|
|
(878 |
) |
|
|
(2,274 |
) |
|
|
(2,289 |
) |
Adjusted Net Income for Adjusted EPS calculation (Non-GAAP) |
$ |
22,566 |
|
|
$ |
26,191 |
|
|
$ |
103,222 |
|
|
$ |
119,108 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted earnings per share – basic (Non-GAAP) |
$ |
0.24 |
|
|
$ |
0.28 |
|
|
$ |
1.09 |
|
|
$ |
1.26 |
|
Adjusted earnings per share – diluted (Non-GAAP) |
$ |
0.24 |
|
|
$ |
0.28 |
|
|
$ |
1.09 |
|
|
$ |
1.25 |
|
Weighted average shares outstanding – basic |
|
94,929 |
|
|
|
94,891 |
|
|
|
94,912 |
|
|
|
94,882 |
|
Weighted average shares outstanding – diluted |
|
95,148 |
|
|
|
94,908 |
|
|
|
95,094 |
|
|
|
94,910 |
|
____________________ |
5 For the three months ended September 30, 2023, other items is primarily comprised of $0.2 million of asset writedowns, net of insurance proceeds. For the three months ended September 30, 2022, other items is primarily comprised of $1.0 million in legal cost adjustments, partially offset by $0.5 million of asset writedowns, net of insurance proceeds. For the nine months ended September 30, 2023, other items is primarily comprised of $1.1 million of asset writedowns, net of insurance proceeds. For the nine months ended September 30, 2022, other items is primarily comprised of $1.0 million in legal cost adjustments and $0.3 million in gains on disposal of a business. |
Supplemental Reconciliation from Net Income attributable to Dole plc to Adjusted Net Income - Unaudited
The following information is provided to give quantitative information related to items impacting comparability. Refer to the 'Non-GAAP Financial Measures' section of this document for additional detail on each item.
|
Three Months Ended September 30, 2023 (U.S. Dollars in thousands) |
|||||||||||||||
|
Revenues, net |
Cost of sales |
Gross profit |
Gross
|
Selling,
|
Other
|
Operating
|
|||||||||
Reported (GAAP) |
$ |
2,042,672 |
(1,876,292 |
) |
166,380 |
|
8.1 |
% |
(118,023 |
) |
28,746 |
|
$ |
77,103 |
|
|
Loss from discontinued operations, net of income taxes |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
Amortization of intangible assets |
|
— |
|
— |
|
— |
|
2,536 |
|
— |
|
|
2,536 |
|
||
Mark to market (gains) losses |
|
— |
|
(1,113 |
) |
(1,113 |
) |
— |
|
— |
|
|
(1,113 |
) |
||
(Gain) on asset sales |
|
— |
|
— |
|
— |
|
— |
|
(28,802 |
) |
|
(28,802 |
) |
||
Cyber-related incident |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
||
Other items |
|
— |
|
222 |
|
222 |
|
— |
|
— |
|
|
222 |
|
||
Adjustments from equity method investments |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
||
Income tax on items above and discrete tax items |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
||
NCI impact on items above |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
||
Adjusted (Non-GAAP) |
$ |
2,042,672 |
|
(1,877,183 |
) |
165,489 |
|
8.1 |
% |
(115,487 |
) |
(56 |
) |
$ |
49,946 |
|
|
Three Months Ended September 30, 2022 (U.S. Dollars in thousands) |
|||||||||||||||
|
Revenues, net |
Cost of sales |
Gross profit |
Gross
|
Selling,
|
Other
|
Operating
|
|||||||||
Reported (GAAP) |
$ |
1,960,695 |
(1,829,233 |
) |
131,462 |
6.7 |
% |
(103,349 |
) |
767 |
|
$ |
28,880 |
|
||
Loss from discontinued operations, net of income taxes |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
Amortization of intangible assets |
|
— |
|
— |
|
— |
|
2,633 |
|
— |
|
|
2,633 |
|
||
Mark to market (gains) losses |
|
— |
|
7,729 |
|
7,729 |
|
— |
|
— |
|
|
7,729 |
|
||
(Gain) on asset sales |
|
— |
|
— |
|
— |
|
— |
|
(530 |
) |
|
(530 |
) |
||
Incremental charges on biological assets related to the acquisition of Legacy Dole |
|
— |
|
5,520 |
|
5,520 |
|
— |
|
— |
|
|
5,520 |
|
||
Other items |
|
— |
|
509 |
|
509 |
|
(1,041 |
) |
— |
|
|
(532 |
) |
||
Adjustments from equity method investments |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
||
Income tax on items above and discrete tax items |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
||
NCI impact on items above |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
||
Adjusted (Non-GAAP) |
$ |
1,960,695 |
|
(1,815,475 |
) |
145,220 |
|
7.4 |
% |
(101,757 |
) |
237 |
|
$ |
43,700 |
|
____________________ |
6 Other operating charges for the three months ended September 30, 2023 is comprised of gains on asset sales of $28.7 million, as reported on the Dole plc GAAP Consolidated Statements of Operations. |
7 Other operating charges for the three months ended September 30, 2022 is comprised of gains on asset sales of $0.8 million, as reported on the Dole plc the GAAP Consolidated Statements of Operations. |
Three Months Ended September 30, 2023 (U.S. Dollars in thousands) |
||||||||||||||||
|
Other
|
Interest
|
Interest
|
Income tax
|
Equity
|
Income from
|
Loss from
|
|||||||||
Reported (GAAP) |
$ |
4,817 |
|
2,311 |
(20,899 |
) |
(13,017 |
) |
5,342 |
|
55,657 |
|
$ |
(1,672 |
) |
|
Loss from discontinued operations, net of income taxes |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
1,672 |
|
Amortization of intangible assets |
|
— |
|
— |
|
— |
|
— |
|
— |
|
2,536 |
|
|
— |
|
Mark to market (gains) losses |
|
(3,670 |
) |
— |
|
— |
|
— |
|
— |
|
(4,783 |
) |
|
— |
|
(Gain) on asset sales |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(28,802 |
) |
|
— |
|
Cyber-related incident |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
Other items |
|
— |
|
— |
|
— |
|
— |
|
— |
|
222 |
|
|
— |
|
Adjustments from equity method investments |
|
— |
|
— |
|
— |
|
— |
|
610 |
|
610 |
|
|
— |
|
Income tax on items above and discrete tax items |
|
— |
|
— |
|
— |
|
6,603 |
|
(139 |
) |
6,464 |
|
|
— |
|
NCI impact on items above |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
Adjusted (Non-GAAP) |
$ |
1,147 |
|
2,311 |
|
(20,899 |
) |
(6,414 |
) |
5,813 |
|
31,904 |
|
$ |
— |
|
|
Three Months Ended September 30, 2022 (U.S. Dollars in thousands) |
|||||||||||||||
|
Other
|
Interest
|
Interest
|
Income tax
|
Equity
|
Income from
|
Loss from
|
|||||||||
Reported (GAAP) |
$ |
9,199 |
|
1,427 |
(15,677 |
) |
34,155 |
|
300 |
|
58,284 |
|
$ |
(11,704 |
) |
|
Loss from discontinued operations, net of income taxes |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
11,704 |
|
Amortization of intangible assets |
|
— |
|
— |
|
— |
|
— |
|
— |
|
2,633 |
|
|
— |
|
Mark to market (gains) losses |
|
(5,419 |
) |
— |
|
— |
|
— |
|
— |
|
2,310 |
|
|
— |
|
(Gain) on asset sales |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(530 |
) |
|
— |
|
Incremental charges on biological assets related to the acquisition of Legacy Dole |
|
— |
|
— |
|
— |
|
— |
|
— |
|
5,520 |
|
|
— |
|
Other items |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(532 |
) |
|
— |
|
Adjustments from equity method investments |
|
— |
|
— |
|
— |
|
— |
|
628 |
|
628 |
|
|
— |
|
Income tax on items above and discrete tax items |
|
— |
|
— |
|
— |
|
(34,400 |
) |
(101 |
) |
(34,501 |
) |
|
— |
|
NCI impact on items above |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
Adjusted (Non-GAAP) |
$ |
3,780 |
|
1,427 |
|
(15,677 |
) |
(245 |
) |
827 |
|
33,812 |
|
$ |
— |
|
|
Three Months Ended September 30, 2023 |
|||||||||||
|
(U.S. Dollars and shares in thousands, except per share amounts) |
|||||||||||
|
Net income |
Net income
|
Net income
|
Diluted net
|
||||||||
Reported (GAAP) |
$ |
53,985 |
|
$ |
(8,693 |
) |
$ |
45,292 |
|
$ |
0.48 |
|
Loss from discontinued operations, net of income taxes |
|
1,672 |
|
|
— |
|
|
1,672 |
|
|
||
Amortization of intangible assets |
|
2,536 |
|
|
— |
|
|
2,536 |
|
|||
Mark to market (gains) losses |
|
(4,783 |
) |
|
— |
|
|
(4,783 |
) |
|||
(Gain) on asset sales |
|
(28,802 |
) |
|
— |
|
|
(28,802 |
) |
|||
Cyber-related incident |
|
— |
|
|
— |
|
|
— |
|
|||
Other items |
|
222 |
|
|
— |
|
|
222 |
|
|||
Adjustments from equity method investments |
|
610 |
|
|
— |
|
|
610 |
|
|||
Income tax on items above and discrete tax items |
|
6,464 |
|
|
— |
|
|
6,464 |
|
|||
NCI impact on items above |
|
— |
|
|
(645 |
) |
|
(645 |
) |
|||
Adjusted (Non-GAAP) |
$ |
31,904 |
|
$ |
(9,338 |
) |
$ |
22,566 |
|
$ |
0.24 |
|
|
|
|
|
|
||||||||
Weighted average shares outstanding – diluted |
|
95,148 |
|
|
|
|
||||||
|
Three Months Ended September 30, 2022 |
|||||||||||
|
(U.S. Dollars and shares in thousands, except per share amounts) |
|||||||||||
|
Net income |
Net income
|
Net income
|
Diluted net income per share |
||||||||
Reported (GAAP) |
$ |
46,580 |
|
$ |
(6,743 |
) |
$ |
39,837 |
|
$ |
0.42 |
|
Loss from discontinued operations, net of income taxes |
|
11,704 |
|
|
— |
|
|
11,704 |
|
|
||
Amortization of intangible assets |
|
2,633 |
|
|
— |
|
|
2,633 |
|
|||
Mark to market (gains) losses |
|
2,310 |
|
|
— |
|
|
2,310 |
|
|||
(Gain) on asset sales |
|
(530 |
) |
|
— |
|
|
(530 |
) |
|||
Incremental charges on biological assets related to the acquisition of Legacy Dole |
|
5,520 |
|
|
— |
|
|
5,520 |
|
|||
Other items |
|
(532 |
) |
|
— |
|
|
(532 |
) |
|||
Adjustments from equity method investments |
|
628 |
|
|
— |
|
|
628 |
|
|||
Income tax on items above and discrete tax items |
|
(34,501 |
) |
|
— |
|
|
(34,501 |
) |
|||
NCI impact on items above |
|
— |
|
|
(878 |
) |
|
(878 |
) |
|||
Adjusted (Non-GAAP) |
$ |
33,812 |
|
$ |
(7,621 |
) |
$ |
26,191 |
|
$ |
0.28 |
|
|
|
|
|
|
||||||||
Weighted average shares outstanding – diluted |
|
94,908 |
|
|
|
|
||||||
Supplemental Reconciliation from Net Income attributable to Dole plc to Adjusted Net Income - Unaudited
The following information is provided to give quantitative information related to items impacting comparability. Refer to the 'Non-GAAP Financial Measures' section of this document for additional detail on each item.
|
Nine Months Ended September 30, 2023 (U.S. Dollars in thousands) |
|||||||||||||||
|
Revenues, net |
Cost of sales |
Gross profit |
Gross
|
Selling,
|
Other
|
Operating
|
|||||||||
Reported (GAAP) |
$ |
6,173,013 |
(5,631,021 |
) |
541,992 |
|
8.8 |
% |
(354,569 |
) |
43,442 |
|
$ |
230,865 |
|
|
Loss from discontinued operations, net of income taxes |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
Amortization of intangible assets |
|
— |
|
— |
|
— |
|
7,726 |
|
— |
|
|
7,726 |
|
||
Mark to market (gains) losses |
|
— |
|
(2,449 |
) |
(2,449 |
) |
— |
|
— |
|
|
(2,449 |
) |
||
(Gain) on asset sales |
|
— |
|
— |
|
— |
|
— |
|
(43,356 |
) |
|
(43,356 |
) |
||
Cyber-related incident |
|
— |
|
— |
|
— |
|
5,321 |
|
— |
|
|
5,321 |
|
||
Other items |
|
— |
|
1,085 |
|
1,085 |
|
— |
|
— |
|
|
1,085 |
|
||
Adjustments from equity method investments |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
||
Income tax on items above and discrete tax items |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
||
NCI impact on items above |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
||
Adjusted (Non-GAAP) |
$ |
6,173,013 |
|
(5,632,385 |
) |
540,628 |
|
8.8 |
% |
(341,522 |
) |
86 |
|
$ |
199,192 |
|
Nine Months Ended September 30, 2022 (U.S. Dollars in thousands) |
||||||||||||||||
|
Revenues, net |
Cost of sales |
Gross profit |
Gross
|
Selling,
|
Other
|
Operating
|
|||||||||
Reported (GAAP) |
$ |
5,981,835 |
(5,533,069 |
) |
448,766 |
7.5 |
% |
(323,258 |
) |
9,430 |
|
$ |
134,938 |
|
||
Loss from discontinued operations, net of income taxes |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
Amortization of intangible assets |
|
— |
|
— |
|
— |
|
|
8,248 |
|
— |
|
|
8,248 |
|
|
Mark to market (gains) losses |
|
— |
|
2,372 |
|
2,372 |
|
— |
|
— |
|
|
2,372 |
|
||
(Gain) on asset sales |
|
— |
|
— |
|
— |
|
— |
|
(8,346 |
) |
|
(8,346 |
) |
||
Incremental charges on biological assets related to the acquisition of Legacy Dole |
|
— |
|
40,464 |
|
40,464 |
|
— |
|
— |
|
|
40,464 |
|
||
Other items |
|
— |
|
— |
|
— |
|
(1,015 |
) |
(269 |
) |
|
(1,284 |
) |
||
Adjustments from equity method investments |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
||
Income tax on items above and discrete tax items |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
||
NCI impact on items above |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
||
Adjusted (Non-GAAP) |
$ |
5,981,835 |
|
(5,490,233 |
) |
491,602 |
|
8.2 |
% |
(316,025 |
) |
815 |
|
$ |
176,392 |
|
____________________ |
8 Other operating charges for the six months ended September 30, 2023 is comprised of gains on asset sales of $43.4 million, as reported on the Dole plc GAAP Consolidated Statements of Operations. |
9 Other operating charges for the nine months ended September 30, 2022 is comprised of gains on asset sales of $9.2 million and a gain on disposal of businesses of $0.2 million, as reported on the Dole plc GAAP Consolidated Statements of Operations. |
Nine Months Ended September 30, 2023 (U.S. Dollars in thousands) |
||||||||||||||||
|
Other
|
Interest
|
Interest
|
Income tax
|
Equity
|
Income from
|
Loss from
|
|||||||||
Reported (GAAP) |
$ |
7,721 |
|
7,260 |
(62,359 |
) |
(40,604 |
) |
11,508 |
|
154,391 |
|
$ |
(27,616 |
) |
|
Loss from discontinued operations, net of income taxes |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
27,616 |
|
Amortization of intangible assets |
|
— |
|
— |
|
— |
|
— |
|
— |
|
7,726 |
|
|
— |
|
Mark to market (gains) losses |
|
(477 |
) |
— |
|
— |
|
— |
|
— |
|
(2,926 |
) |
|
— |
|
(Gain) on asset sales |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(43,356 |
) |
|
— |
|
Cyber-related incident |
|
— |
|
— |
|
— |
|
— |
|
— |
|
5,321 |
|
|
— |
|
Other items |
|
— |
|
— |
|
— |
|
— |
|
— |
|
1,085 |
|
|
— |
|
Adjustments from equity method investments |
|
— |
|
— |
|
— |
|
— |
|
1,352 |
|
1,352 |
|
|
— |
|
Income tax on items above and discrete tax items |
|
— |
|
— |
|
— |
|
7,253 |
|
(301 |
) |
6,952 |
|
|
— |
|
NCI impact on items above |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
Adjusted (Non-GAAP) |
$ |
7,244 |
|
7,260 |
|
(62,359 |
) |
(33,351 |
) |
12,559 |
|
130,545 |
|
$ |
— |
|
|
Nine Months Ended September 30, 2022 (U.S. Dollars in thousands) |
|||||||||||||||
|
Other
|
Interest
|
Interest
|
Income tax
|
Equity
|
Income from
|
Loss from
|
|||||||||
Reported (GAAP) |
$ |
19,765 |
|
4,421 |
(38,126 |
) |
21,497 |
|
4,028 |
|
146,523 |
|
$ |
(48,129 |
) |
|
Loss from discontinued operations, net of income taxes |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
48,129 |
|
Amortization of intangible assets |
|
— |
|
— |
|
— |
|
— |
|
— |
|
8,248 |
|
|
— |
|
Mark to market (gains) losses |
|
(8,191 |
) |
— |
|
— |
|
— |
|
— |
|
(5,819 |
) |
|
— |
|
(Gain) on asset sales |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(8,346 |
) |
|
— |
|
Incremental charges on biological assets related to the acquisition of Legacy Dole |
|
— |
|
— |
|
— |
|
— |
|
— |
|
40,464 |
|
|
— |
|
Other items |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(1,284 |
) |
|
— |
|
Adjustments from equity method investments |
|
— |
|
— |
|
— |
|
— |
|
1,918 |
|
1,918 |
|
|
— |
|
Income tax on items above and discrete tax items |
|
— |
|
— |
|
— |
|
(41,320 |
) |
(308 |
) |
(41,628 |
) |
|
— |
|
NCI impact on items above |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
Adjusted (Non-GAAP) |
$ |
11,574 |
|
4,421 |
|
(38,126 |
) |
(19,823 |
) |
5,638 |
|
140,076 |
|
$ |
— |
|
|
Nine Months Ended September 30, 2023 |
|||||||||||
|
(U.S. Dollars and shares in thousands, except per share amounts) |
|||||||||||
|
Net income |
Net income
|
Net income
|
Diluted net
|
||||||||
Reported (GAAP) |
$ |
126,775 |
|
$ |
(25,049 |
) |
$ |
101,726 |
|
$ |
1.07 |
|
Loss from discontinued operations, net of income taxes |
|
27,616 |
|
|
— |
|
|
27,616 |
|
|
||
Amortization of intangible assets |
|
7,726 |
|
|
— |
|
|
7,726 |
|
|||
Mark to market (gains) losses |
|
(2,926 |
) |
|
— |
|
|
(2,926 |
) |
|||
(Gain) on asset sales |
|
(43,356 |
) |
|
— |
|
|
(43,356 |
) |
|||
Cyber-related incident |
|
5,321 |
|
|
— |
|
|
5,321 |
|
|||
Other items |
|
1,085 |
|
|
— |
|
|
1,085 |
|
|||
Adjustments from equity method investments |
|
1,352 |
|
|
— |
|
|
1,352 |
|
|||
Income tax on items above and discrete tax items |
|
6,952 |
|
|
— |
|
|
6,952 |
|
|||
NCI impact on items above |
|
— |
|
|
(2,274 |
) |
|
(2,274 |
) |
|||
Adjusted (Non-GAAP) |
$ |
130,545 |
|
$ |
(27,323 |
) |
$ |
103,222 |
|
$ |
1.09 |
|
|
|
|
|
|
||||||||
Weighted average shares outstanding – diluted |
|
95,094 |
|
|
|
|
||||||
|
Nine Months Ended September 30, 2022 |
|||||||||||
|
(U.S. Dollars and shares in thousands, except per share amounts) |
|||||||||||
|
Net income |
Net income
|
Net income
|
Diluted net
|
||||||||
Reported (GAAP) |
$ |
98,394 |
|
$ |
(18,679 |
) |
$ |
79,715 |
|
$ |
0.84 |
|
Loss from discontinued operations, net of income taxes |
|
48,129 |
|
|
— |
|
|
48,129 |
|
|
||
Amortization of intangible assets |
|
8,248 |
|
|
— |
|
|
8,248 |
|
|||
Mark to market (gains) losses |
|
(5,819 |
) |
|
— |
|
|
(5,819 |
) |
|||
(Gain) on asset sales |
|
(8,346 |
) |
|
— |
|
|
(8,346 |
) |
|||
Incremental charges on biological assets related to the acquisition of Legacy Dole |
|
40,464 |
|
|
— |
|
|
40,464 |
|
|||
Other items |
|
(1,284 |
) |
|
— |
|
|
(1,284 |
) |
|||
Adjustments from equity method investments |
|
1,918 |
|
|
— |
|
|
1,918 |
|
|||
Income tax on items above and discrete tax items |
|
(41,628 |
) |
|
— |
|
|
(41,628 |
) |
|||
NCI impact on items above |
|
— |
|
|
(2,289 |
) |
|
(2,289 |
) |
|||
Adjusted (Non-GAAP) |
$ |
140,076 |
|
$ |
(20,968 |
) |
$ |
119,108 |
|
$ |
1.25 |
|
|
|
|
|
|
||||||||
Weighted average shares outstanding – diluted |
|
94,910 |
|
|
|
|
||||||
Supplemental Reconciliation of Prior Year Segment Results to Current Year Segment Results – Unaudited
|
Revenue for the Three Months Ended |
||||||||||||||||||
|
September 30,
|
|
Impact of
|
|
Impact of
|
|
Like-for-like
|
|
September 30,
|
||||||||||
|
(U.S. Dollars in thousands) |
||||||||||||||||||
Fresh Fruit |
$ |
751,348 |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
(2,138 |
) |
|
$ |
749,210 |
|
|
Diversified Fresh Produce - EMEA |
|
759,964 |
|
|
|
54,373 |
|
|
|
5,540 |
|
|
|
36,474 |
|
|
|
856,351 |
|
Diversified Fresh Produce - Americas & ROW |
|
479,839 |
|
|
|
(1,491 |
) |
|
|
— |
|
|
|
(8,337 |
) |
|
|
470,011 |
|
Intersegment |
|
(30,456 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2,444 |
) |
|
|
(32,900 |
) |
Total |
$ |
1,960,695 |
|
|
$ |
52,882 |
|
|
$ |
5,540 |
|
|
$ |
23,555 |
|
|
$ |
2,042,672 |
|
|
Adjusted EBITDA for the Three Months Ended |
||||||||||||||||||
|
September 30,
|
|
Impact of
|
|
Impact of
|
|
Like-for-like
|
|
September 30,
|
||||||||||
|
(U.S. Dollars in thousands) |
||||||||||||||||||
Fresh Fruit |
$ |
49,382 |
|
|
$ |
(375 |
) |
|
$ |
— |
|
$ |
(3,896 |
) |
|
$ |
45,111 |
||
Diversified Fresh Produce - EMEA |
|
30,686 |
|
|
|
2,013 |
|
|
|
187 |
|
|
|
2,037 |
|
|
|
34,923 |
|
Diversified Fresh Produce - Americas & ROW |
|
(870 |
) |
|
|
(115 |
) |
|
|
932 |
|
|
|
5,212 |
|
|
|
5,159 |
|
Total |
$ |
79,198 |
|
|
$ |
1,523 |
|
|
$ |
1,119 |
|
|
$ |
3,353 |
|
|
$ |
85,193 |
|
|
Revenue for the Nine Months Ended |
||||||||||||||||||
|
September 30,
|
|
Impact of
|
|
Impact of
|
|
Like-for-like
|
|
September 30,
|
||||||||||
|
(U.S. Dollars in thousands) |
||||||||||||||||||
Fresh Fruit |
$ |
2,306,982 |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
80,181 |
|
|
$ |
2,387,163 |
|
|
Diversified Fresh Produce - EMEA |
|
2,400,967 |
|
|
|
(188 |
) |
|
|
23,642 |
|
|
|
145,659 |
|
|
|
2,570,080 |
|
Diversified Fresh Produce - Americas & ROW |
|
1,391,731 |
|
|
|
(6,524 |
) |
|
|
— |
|
|
|
(74,800 |
) |
|
|
1,310,407 |
|
Intersegment |
|
(117,845 |
) |
|
|
— |
|
|
|
— |
|
|
|
23,208 |
|
|
|
(94,637 |
) |
Total |
$ |
5,981,835 |
|
|
$ |
(6,712 |
) |
|
$ |
23,642 |
|
|
$ |
174,248 |
|
|
$ |
6,173,013 |
|
|
Adjusted EBITDA for the Nine Months Ended |
||||||||||||||||||
|
September 30,
|
|
Impact of
|
|
Impact of
|
|
Like-for-like
|
|
September 30,
|
||||||||||
|
(U.S. Dollars in thousands) |
||||||||||||||||||
Fresh Fruit |
$ |
166,087 |
|
$ |
(330 |
) |
|
$ |
— |
|
$ |
14,381 |
|
|
$ |
180,138 |
|||
Diversified Fresh Produce - EMEA |
|
88,397 |
|
|
|
212 |
|
|
|
1,458 |
|
|
|
10,865 |
|
|
|
100,932 |
|
Diversified Fresh Produce - Americas & ROW |
|
28,399 |
|
|
|
(245 |
) |
|
|
1,498 |
|
|
|
(2,461 |
) |
|
|
27,191 |
|
Total |
$ |
282,883 |
|
|
$ |
(363 |
) |
|
$ |
2,956 |
|
|
$ |
22,785 |
|
|
$ |
308,261 |
|
Net Debt Reconciliation
Net Debt is the primary measure used by management to analyze the Company's capital structure. Net Debt is a non-GAAP financial measure, calculated as cash and cash equivalents, less current and long-term debt. It also excludes debt discounts and debt issuance costs. The calculation of Net Debt as of September 30, 2023 is presented below. Net Debt as of September 30, 2023 was $0.9 billion.
|
September 30, 2023 |
|
December 31, 2022 |
||||
|
(U.S. Dollars in thousands) |
||||||
Cash and cash equivalents (Reported GAAP) |
|
217,523 |
|
|
|
228,840 |
|
Debt (Reported GAAP): |
|
|
|
||||
Long-term debt, net |
|
(859,677 |
) |
|
|
(1,127,321 |
) |
Current maturities |
|
(255,953 |
) |
|
|
(97,435 |
) |
Bank overdrafts |
|
(13,772 |
) |
|
|
(8,623 |
) |
Total debt, net |
|
(1,129,402 |
) |
|
|
(1,233,379 |
) |
Less: Debt discounts and debt issuance costs (Reported GAAP) |
|
(15,233 |
) |
|
|
(17,874 |
) |
Total gross debt |
|
(1,144,635 |
) |
|
|
(1,251,253 |
) |
Net Debt (Non-GAAP) |
$ |
(927,112 |
) |
|
$ |
(1,022,413 |
) |
Free Cash Flow from Continuing Operations Reconciliation
|
Nine Months Ended |
||||||
|
September 30,
|
|
September 30,
|
||||
|
(U.S. Dollars in thousands) |
||||||
Net cash provided by operating activities - continuing operations (Reported GAAP) |
|
157,134 |
|
|
|
183,076 |
|
Less: Capital expenditures (Reported GAAP)10 |
|
(51,334 |
) |
|
|
(58,555 |
) |
Free cash flow from continuing operations (Non-GAAP) |
$ |
105,800 |
|
|
$ |
124,521 |
|
____________________ |
10 Capital expenditures do not include amounts attributable to discontinued operations. |
Supplemental Consolidated Income Statement by Quarter - for the Year Ended December 31, 2022 - Unaudited
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
||||||||||
|
(U.S. Dollars and shares in thousands, except per share amounts) |
||||||||||||||||||
Revenues, net |
$ |
1,970,231 |
|
|
$ |
2,050,909 |
|
|
$ |
1,960,695 |
|
|
$ |
2,042,568 |
|
|
$ |
8,024,403 |
|
Cost of sales |
|
(1,818,436 |
) |
|
|
(1,885,400 |
) |
|
|
(1,829,233 |
) |
|
|
(1,891,456 |
) |
|
|
(7,424,525 |
) |
Gross profit |
|
151,795 |
|
|
|
165,509 |
|
|
|
131,462 |
|
|
|
151,112 |
|
|
|
599,878 |
|
Selling, marketing, general and administrative expenses |
|
(109,544 |
) |
|
|
(110,365 |
) |
|
|
(103,349 |
) |
|
|
(112,934 |
) |
|
|
(436,192 |
) |
Gain (loss) on disposal of businesses |
|
242 |
|
|
|
— |
|
|
|
— |
|
|
|
(50 |
) |
|
|
192 |
|
Impairment of property, plant and equipment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(397 |
) |
|
|
(397 |
) |
Gain on asset sales |
|
495 |
|
|
|
7,926 |
|
|
|
767 |
|
|
|
2,596 |
|
|
|
11,784 |
|
Operating income |
|
42,988 |
|
|
|
63,070 |
|
|
|
28,880 |
|
|
|
40,327 |
|
|
|
175,265 |
|
Other income (expense), net |
|
2,464 |
|
|
|
8,102 |
|
|
|
9,199 |
|
|
|
(9,165 |
) |
|
|
10,600 |
|
Interest income |
|
1,584 |
|
|
|
1,410 |
|
|
|
1,427 |
|
|
|
1,986 |
|
|
|
6,407 |
|
Interest expense |
|
(11,616 |
) |
|
|
(10,833 |
) |
|
|
(15,677 |
) |
|
|
(18,245 |
) |
|
|
(56,371 |
) |
Income from continuing operations before income taxes and equity earnings |
|
35,420 |
|
|
|
61,749 |
|
|
|
23,829 |
|
|
|
14,903 |
|
|
|
135,901 |
|
Income tax (expense) benefit |
|
(7,358 |
) |
|
|
(5,300 |
) |
|
|
34,155 |
|
|
|
4,106 |
|
|
|
25,603 |
|
Equity method earnings |
|
577 |
|
|
|
3,151 |
|
|
|
300 |
|
|
|
2,698 |
|
|
|
6,726 |
|
Income from continuing operations |
|
28,639 |
|
|
|
59,600 |
|
|
|
58,284 |
|
|
|
21,707 |
|
|
|
168,230 |
|
Loss from discontinued operations, net of income taxes |
|
(25,230 |
) |
|
|
(11,195 |
) |
|
|
(11,704 |
) |
|
|
(8,318 |
) |
|
|
(56,447 |
) |
Net income |
|
3,409 |
|
|
|
48,405 |
|
|
|
46,580 |
|
|
|
13,389 |
|
|
|
111,783 |
|
Less: Net income attributable to noncontrolling interests |
|
(4,803 |
) |
|
|
(7,133 |
) |
|
|
(6,743 |
) |
|
|
(6,608 |
) |
|
|
(25,287 |
) |
Net (loss) income attributable to Dole plc |
$ |
(1,394 |
) |
|
$ |
41,272 |
|
|
$ |
39,837 |
|
|
$ |
6,781 |
|
|
$ |
86,496 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) per share - basic: |
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations |
$ |
0.26 |
|
|
$ |
0.55 |
|
|
$ |
0.54 |
|
|
$ |
0.16 |
|
|
$ |
1.51 |
|
Discontinued operations |
|
(0.27 |
) |
|
|
(0.12 |
) |
|
|
(0.12 |
) |
|
|
(0.09 |
) |
|
|
(0.60 |
) |
Net income (loss) per share attributable to Dole plc - basic |
$ |
(0.01 |
) |
|
$ |
0.43 |
|
|
$ |
0.42 |
|
|
$ |
0.07 |
|
|
$ |
0.91 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) per share - diluted: |
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations |
$ |
0.26 |
|
|
$ |
0.55 |
|
|
$ |
0.54 |
|
|
$ |
0.16 |
|
|
$ |
1.51 |
|
Discontinued operations |
|
(0.27 |
) |
|
|
(0.12 |
) |
|
|
(0.12 |
) |
|
|
(0.09 |
) |
|
|
(0.60 |
) |
Net income (loss) per share attributable to Dole plc - diluted |
$ |
(0.01 |
) |
|
$ |
0.43 |
|
|
$ |
0.42 |
|
|
$ |
0.07 |
|
|
$ |
0.91 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average shares: |
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
94,878 |
|
|
|
94,878 |
|
|
|
94,891 |
|
|
|
94,899 |
|
|
|
94,886 |
|
Diluted |
|
94,909 |
|
|
|
94,913 |
|
|
|
94,908 |
|
|
|
94,928 |
|
|
|
94,914 |
|
Supplemental Reconciliation from Net Income to Adjusted EBITDA by Quarter - for the Year Ended December 31, 2022 - Unaudited
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
||||||||||
|
(U.S. Dollars in thousands) |
||||||||||||||||||
Net income (Reported GAAP) |
$ |
3,409 |
|
|
$ |
48,405 |
|
|
$ |
46,580 |
|
|
$ |
13,389 |
|
|
$ |
111,783 |
|
Loss from discontinued operations, net of income taxes |
|
25,230 |
|
|
|
11,195 |
|
|
|
11,704 |
|
|
|
8,318 |
|
|
|
56,447 |
|
Income from continuing operations (Reported GAAP) |
|
28,639 |
|
|
|
59,600 |
|
|
|
58,284 |
|
|
|
21,707 |
|
|
|
168,230 |
|
Income tax expense (benefit) |
|
7,358 |
|
|
|
5,300 |
|
|
|
(34,155 |
) |
|
|
(4,106 |
) |
|
|
(25,603 |
) |
Interest expense |
|
11,616 |
|
|
|
10,833 |
|
|
|
15,677 |
|
|
|
18,245 |
|
|
|
56,371 |
|
Mark to market losses (gains) |
|
(1,138 |
) |
|
|
(6,991 |
) |
|
|
2,310 |
|
|
|
8,868 |
|
|
|
3,049 |
|
(Gain) on asset sales |
|
— |
|
|
|
(7,816 |
) |
|
|
(530 |
) |
|
|
(1,970 |
) |
|
|
(10,316 |
) |
Impairment on property, plant and equipment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
397 |
|
|
|
397 |
|
Incremental charges on biological assets from the Acquisition |
|
17,513 |
|
|
|
17,431 |
|
|
|
5,520 |
|
|
|
681 |
|
|
|
41,145 |
|
Other items |
|
(868 |
) |
|
|
116 |
|
|
|
(532 |
) |
|
|
656 |
|
|
|
(628 |
) |
Adjustments from equity method investments |
|
1,128 |
|
|
|
2,195 |
|
|
|
1,603 |
|
|
|
2,614 |
|
|
|
7,540 |
|
Adjusted EBIT (Non-GAAP) |
|
64,248 |
|
|
|
80,668 |
|
|
|
48,177 |
|
|
|
47,092 |
|
|
|
240,185 |
|
Depreciation |
|
22,533 |
|
|
|
25,696 |
|
|
|
25,315 |
|
|
|
25,159 |
|
|
|
98,703 |
|
Amortization of intangible assets |
|
2,842 |
|
|
|
2,773 |
|
|
|
2,633 |
|
|
|
2,645 |
|
|
|
10,893 |
|
Depreciation and amortization adjustments from equity method investments |
|
2,260 |
|
|
|
2,666 |
|
|
|
3,073 |
|
|
|
2,616 |
|
|
|
10,615 |
|
Adjusted EBITDA (Non-GAAP) |
$ |
91,883 |
|
|
$ |
111,803 |
|
|
$ |
79,198 |
|
|
$ |
77,512 |
|
|
$ |
360,396 |
|
Supplemental Reconciliation from Net Income attributable to Dole plc to Adjusted Net Income by Quarter - for the Year Ended December 31, 2022 - Unaudited
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
||||||||||
|
(U.S. Dollars and shares in thousands, except per share amounts) |
||||||||||||||||||
Net income (loss) attributable to Dole plc (Reported GAAP) |
$ |
(1,394 |
) |
|
$ |
41,272 |
|
|
$ |
39,837 |
|
|
$ |
6,781 |
|
|
$ |
86,496 |
|
Loss from discontinued operations, net of income taxes |
|
25,230 |
|
|
|
11,195 |
|
|
|
11,704 |
|
|
|
8,318 |
|
|
|
56,447 |
|
Income from continuing operations attributable to Dole plc |
|
23,836 |
|
|
|
52,467 |
|
|
|
51,541 |
|
|
|
15,099 |
|
|
|
142,943 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
Amortization of intangible assets |
|
2,842 |
|
|
|
2,773 |
|
|
|
2,633 |
|
|
|
2,645 |
|
|
|
10,893 |
|
Mark to market (gains) losses |
|
(1,138 |
) |
|
|
(6,991 |
) |
|
|
2,310 |
|
|
|
8,868 |
|
|
|
3,049 |
|
(Gain) on asset sales |
|
— |
|
|
|
(7,816 |
) |
|
|
(530 |
) |
|
|
(1,970 |
) |
|
|
(10,316 |
) |
Incremental charges on biological assets from the Acquisition |
|
17,513 |
|
|
|
17,431 |
|
|
|
5,520 |
|
|
|
681 |
|
|
|
41,145 |
|
Other items |
|
(868 |
) |
|
|
116 |
|
|
|
(532 |
) |
|
|
1,053 |
|
|
|
(231 |
) |
Adjustments from equity method investments |
|
678 |
|
|
|
612 |
|
|
|
628 |
|
|
|
662 |
|
|
|
2,580 |
|
Income tax on items above and discrete tax items |
|
(1,931 |
) |
|
|
(5,196 |
) |
|
|
(34,501 |
) |
|
|
(8,876 |
) |
|
|
(50,504 |
) |
NCI impact on items above |
|
(458 |
) |
|
|
(953 |
) |
|
|
(878 |
) |
|
|
(898 |
) |
|
|
(3,187 |
) |
Adjusted Net Income for Adjusted EPS calculation (Non-GAAP) |
$ |
40,474 |
|
|
$ |
52,443 |
|
|
$ |
26,191 |
|
|
$ |
17,264 |
|
|
$ |
136,372 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted earnings per share – basic (Non-GAAP) |
$ |
0.43 |
|
|
$ |
0.55 |
|
|
$ |
0.28 |
|
|
$ |
0.18 |
|
|
$ |
1.44 |
|
Adjusted earnings per share – diluted (Non-GAAP) |
$ |
0.43 |
|
|
$ |
0.55 |
|
|
$ |
0.28 |
|
|
$ |
0.18 |
|
|
$ |
1.44 |
|
Weighted average shares outstanding – basic |
|
94,878 |
|
|
|
94,878 |
|
|
|
94,891 |
|
|
|
94,899 |
|
|
|
94,886 |
|
Weighted average shares outstanding – diluted |
|
94,909 |
|
|
|
94,913 |
|
|
|
94,908 |
|
|
|
94,928 |
|
|
|
94,914 |
|
Supplemental Selected Segmental Financial Information by Quarter - for the Year Ended December 31, 2022 - Unaudited
Revenue by Segment:
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
||||||||||
|
(U.S. Dollars in thousands) |
||||||||||||||||||
Fresh Fruit |
$ |
749,803 |
|
|
$ |
805,831 |
|
|
$ |
751,348 |
|
|
$ |
740,167 |
|
|
$ |
3,047,149 |
|
Diversified Fresh Produce - EMEA |
|
791,155 |
|
|
|
849,848 |
|
|
|
759,964 |
|
|
|
751,594 |
|
|
|
3,152,561 |
|
Diversified Fresh Produce - Americas & ROW |
|
463,692 |
|
|
|
448,200 |
|
|
|
479,839 |
|
|
|
573,936 |
|
|
|
1,965,667 |
|
Intersegment |
|
(34,419 |
) |
|
|
(52,970 |
) |
|
|
(30,456 |
) |
|
|
(23,129 |
) |
|
|
(140,974 |
) |
Total |
$ |
1,970,231 |
|
|
$ |
2,050,909 |
|
|
$ |
1,960,695 |
|
|
$ |
2,042,568 |
|
|
$ |
8,024,403 |
|
Adjusted EBITDA by Segment:
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
||||||||||
|
(U.S. Dollars in thousands) |
||||||||||||||||||
Fresh Fruit |
$ |
60,397 |
|
$ |
56,308 |
|
$ |
49,382 |
|
|
$ |
39,460 |
|
$ |
205,547 |
||||
Diversified Fresh Produce - EMEA |
|
19,277 |
|
|
|
38,434 |
|
|
|
30,686 |
|
|
|
22,656 |
|
|
|
111,053 |
|
Diversified Fresh Produce - Americas & ROW |
|
12,209 |
|
|
|
17,061 |
|
|
|
(870 |
) |
|
|
15,396 |
|
|
|
43,796 |
|
Total |
$ |
91,883 |
|
|
$ |
111,803 |
|
|
$ |
79,198 |
|
|
$ |
77,512 |
|
|
$ |
360,396 |
|
Non-GAAP Financial Measures
Dole plc's results are determined in accordance with U.S. GAAP.
In addition to its results under U.S. GAAP, in this Press Release, we also present Dole plc's Adjusted EBIT, Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, Free Cash Flow from Continuing Operations and Net Debt, which are supplemental measures of financial performance that are not required by, or presented in accordance with, U.S. GAAP (collectively, the "non-GAAP financial measures"). We present these non-GAAP financial measures, because we believe they assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. These non-GAAP financial measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our operating results, cash flows or any other measure prescribed by U.S. GAAP. Our presentation of non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by any of the adjusted items or that any projections and estimates will be realized in their entirety or at all. In addition, adjustment items that are excluded from non-GAAP results can have a material impact on equivalent GAAP earnings, financial measures and cash flows.
Adjusted EBIT is calculated from GAAP net income by: (1) adding the loss from discontinued operations, net of income taxes; (2) adding the income tax expense or subtracting the income tax benefit; (3) adding interest expense; (4) adding mark to market losses or subtracting mark to market gains related to unrealized impacts from derivative instruments and foreign currency denominated borrowings, realized impacts on noncash settled foreign currency denominated borrowings, net foreign currency impacts on liquidated entities and fair value movements on contingent consideration; (5) other items which are separately stated based on materiality, which during the three and nine months ended September 30, 2023 and September 30, 2022, included adding or subtracting asset write-downs from extraordinary events, net of insurance proceeds, subtracting the gain or adding the loss on the disposal of business interests, adding the incremental costs from the fair value uplift for biological assets related to the acquisition of Legacy Dole, subtracting the gain or adding the loss on the sale of investments accounted for under the equity method, subtracting the gain or adding the loss on asset sales for assets held for sale and actively marketed property, adding restructuring charges and costs for legal matters not in the ordinary course of business and adding costs incurred for the cyber-related incident; and (6) the Company's share of these items from equity method investments.
Adjusted EBITDA is calculated from GAAP net income by: (1) adding the loss from discontinued operations, net of income taxes; (2) adding the income tax expense or subtracting the income tax benefit; (3) adding interest expense; (4) adding depreciation charges; (5) adding amortization charges on intangible assets; (6) adding mark to market losses or subtracting mark to market gains related to unrealized impacts from derivative instruments and foreign currency denominated borrowings, realized impacts on noncash settled foreign currency denominated borrowings, net foreign currency impacts on liquidated entities and fair value movements on contingent consideration; (7) other items which are separately stated based on materiality, which during the three and nine months ended September 30, 2023 and September 30, 2022, included adding or subtracting asset write-downs from extraordinary events, net of insurance proceeds, subtracting the gain or adding the loss on the disposal of business interests, adding the incremental costs from the fair value uplift for biological assets related to the acquisition of Legacy Dole, subtracting the gain or adding the loss on the sale of investments accounted for under the equity method, subtracting the gain or adding the loss on asset sales for assets held for sale and actively marketed property, adding restructuring charges and costs for legal matters not in the ordinary course of business and adding costs incurred for the cyber-related incident; and (8) the Company's share of these items from equity method investments.
Adjusted Net Income is calculated from GAAP net income attributable to Dole plc by: (1) adding the loss from discontinued operations, net of income taxes; (2) adding amortization charges on intangible assets; (3) adding mark to market losses or subtracting mark to market gains related to unrealized impacts from derivative instruments and foreign currency denominated borrowings, realized impacts on noncash settled foreign currency denominated borrowings, net foreign currency impacts on liquidated entities and fair value movements on contingent consideration; (4) other items which are separately stated based on materiality, which during the three and nine months ended September 30, 2023 and September 30, 2022, included adding or subtracting asset write-downs from extraordinary events, net of insurance proceeds, subtracting the gain or adding the loss on the disposal of business interests, adding the incremental costs from the fair value uplift for biological assets related to the acquisition of Legacy Dole, subtracting the gain or adding the loss on the sale of investments accounted for under the equity method, subtracting the gain or adding the loss on asset sales for assets held for sale and actively marketed property, adding restructuring charges and costs for legal matters not in the ordinary course of business and adding costs incurred for the cyber-related incident; (5) the Company's share of these items from equity method investments; (6) excluding the tax effect of these items and discrete tax adjustments; and (7) excluding the effect of these items attributable to non-controlling interests.
Adjusted Earnings per Share is calculated from Adjusted Net Income divided by diluted weighted average number of shares in the applicable period.
Net Debt is a non-GAAP financial measure, calculated as GAAP cash and cash equivalents, less GAAP current and long-term debt. It also excludes GAAP unamortized debt discounts and debt issuance costs.
Free cash flow from continuing operations is calculated from GAAP net cash provided by operating activities for continuing operations less GAAP capital expenditures.
Like-for-like basis refers to the U.S. GAAP measure or non-GAAP financial measure excluding the impact of foreign currency translation movements and acquisitions and divestitures.
Dole is not able to provide a reconciliation for projected FY'23 results without taking unreasonable efforts.
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