Dole plc Reports Second Quarter 2024 Financial Results

DUBLIN--()--Dole plc (NYSE: DOLE) ("Dole" or the "Group" or the "Company") today released its financial results for the three and six months ended June 30, 2024.

Highlights for the three months ended June 30, 2024:

  • Strong second quarter Group results with growth across all segments on a like-for-like basis1
  • Revenue of $2.1 billion, a decrease of 0.8%. On a like-for-like basis, revenue increased 4.3%
  • Net Income of $88.1 million, an increase of 68.4%
  • Adjusted EBITDA2 of $125.4 million, an increase of 2.2%. On a like-for-like basis, Adjusted EBITDA increased 8.2%
  • Adjusted Net Income of $47.0 million and Adjusted Diluted EPS of $0.49

Financial Highlights - Unaudited

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30, 2024

 

June 30, 2023

 

June 30, 2024

 

June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

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

Revenue

 

2,124

 

2,141

 

4,245

 

4,130

Income from continuing operations3

 

56.0

 

63.7

 

127.5

 

98.7

Net Income

 

88.1

 

52.3

 

153.5

 

72.8

Net Income attributable to Dole plc

 

80.1

 

42.3

 

150.3

 

56.4

Diluted EPS from continuing operations

 

0.50

 

0.56

 

1.30

 

0.86

Diluted EPS

 

0.84

 

0.44

 

1.57

 

0.59

Adjusted EBITDA2

 

125.4

 

122.7

 

235.5

 

223.1

Adjusted Net Income2

 

47.0

 

48.4

 

87.6

 

80.7

Adjusted Diluted EPS2

 

0.49

 

0.51

 

0.92

 

0.85

_______________________

1

 

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

2

 

Dole plc reports its financial results in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). See full GAAP financial results in the appendix. Adjusted EBIT, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings Per Share, Net Debt and Free Cash Flow from Continuing Operations are non-GAAP financial measures. Refer to the appendix of this release for an explanation and reconciliation of these and other non-GAAP financial measures used in this release to comparable GAAP financial measures.

3

 

Fresh Vegetables results are reported separately as discontinued operations, net of income taxes, in our condensed consolidated statements of operations, its assets and liabilities are separately presented in our condensed consolidated balance sheets, and its cash flows are presented separately in our condensed consolidated statements of cash flows for all periods presented. Unless otherwise noted, our discussion of our results included herein, outlook and all supplementary tables, including non-GAAP financial measures, are presented on a continuing operations basis.

Commenting on the results, Carl McCann, Executive Chairman, said:

"We are pleased to report another strong result for the second quarter of 2024, with Adjusted EBITDA increasing 2.2% to $125.4 million and 8.2% on a like-for-like basis.

Following the completion of our sale of Progressive Produce, we repaid $100 million of our Term Loan facilities in April, and at the end of the quarter, our Net Debt was $767.5 million.

Our strong first half of the year, and positive momentum within the business, positions us well to deliver a good result for the 2024 financial year. Today, we are pleased to raise our full year Adjusted EBITDA target to at least $370.0 million."

Group Results - Second Quarter

Revenue decreased 0.8%, or $17.1 million, primarily due to a net negative impact from acquisitions and divestitures of $100.3 million and a $9.6 million net unfavorable impact of foreign currency translation. On a like-for-like basis, revenue was 4.3%, or $92.8 million, ahead of prior year, due to strong operational performance across all segments.

Net Income increased 68.4% or $35.8 million, due to strong trading results across the Group.

Adjusted EBITDA increased 2.2%, or $2.7 million, primarily driven by strong performance in the Fresh Fruit segment. On a like-for-like basis, Adjusted EBITDA increased 8.2%, or $10.1 million.

Adjusted Net Income decreased $1.3 million, predominantly due to higher tax expense, partially offset by the increases in Adjusted EBITDA noted above. Adjusted Diluted EPS for the three months ended June 30, 2024 was $0.49 compared to $0.51 in the prior year.

Selected Segmental Financial Information (Unaudited)

 

Three Months Ended

 

June 30, 2024

 

June 30, 2023

 

 

 

 

 

 

 

 

 

(U.S. Dollars in thousands)

 

Revenue

 

Adjusted EBITDA

 

Revenue

 

Adjusted EBITDA

Fresh Fruit

$

851,451

 

 

$

70,619

 

$

839,043

 

 

$

65,816

Diversified Fresh Produce - EMEA

 

944,851

 

 

 

42,695

 

 

 

915,629

 

 

 

42,603

 

Diversified Fresh Produce - Americas & ROW

 

356,057

 

 

 

12,107

 

 

 

417,645

 

 

 

14,262

 

Intersegment

 

(28,268

)

 

 

 

 

 

(31,143

)

 

 

 

Total

$

2,124,091

 

 

$

125,421

 

 

$

2,141,174

 

 

$

122,681

 

 
 

 

Six Months Ended

 

June 30, 2024

 

June 30, 2023

 

 

 

 

 

 

 

 

 

(U.S. Dollars in thousands)

 

Revenue

 

Adjusted EBITDA

 

Revenue

 

Adjusted EBITDA

Fresh Fruit

$

1,675,680

 

 

$

140,054

 

 

$

1,637,953

 

 

$

135,027

 

Diversified Fresh Produce - EMEA

 

1,798,449

 

 

 

68,654

 

 

 

1,713,729

 

 

 

66,009

 

Diversified Fresh Produce - Americas & ROW

 

832,939

 

 

 

26,812

 

 

 

840,396

 

 

 

22,032

 

Intersegment

 

(61,603

)

 

 

 

 

 

(61,737

)

 

 

 

Total

$

4,245,465

 

 

$

235,520

 

 

$

4,130,341

 

 

$

223,068

 

Fresh Fruit

Revenue increased 1.5%, or $12.4 million, primarily due to higher volumes of bananas in Europe and North America, higher worldwide pricing of bananas and higher volume of plantains sold, partially offset by lower volumes and pricing for pineapples.

Adjusted EBITDA increased 7.3%, or $4.8 million, driven by higher revenue and lower fruit sourcing costs, partially offset by higher shipping costs.

Diversified Fresh Produce – EMEA

Revenue increased 3.2%, or $29.2 million, primarily due to strong performance in Ireland, the U.K. and Spain, as well as an incremental positive impact from acquisitions of $7.8 million, partially offset by a $8.7 million unfavorable impact from foreign currency translation. On a like-for-like basis, revenue was 3.3%, or $30.2 million, ahead of prior year.

Adjusted EBITDA increased 0.2%, or $0.1 million, primarily driven by strong performance in the Nordics, Spain and South Africa, as well as a positive impact of $0.3 million from acquisitions, offset primarily by a $0.3 million unfavorable impact from foreign currency translation. On a like-for-like basis, Adjusted EBITDA was 0.3%, or $0.1 million, ahead of prior year.

Diversified Fresh Produce – Americas & ROW

Revenue decreased 14.7%, or $61.6 million, primarily due to the disposal of the Progressive Produce business in mid-March 2024. On a like-for-like basis, revenue was 11.3%, or $47.4 million, ahead of the prior year, primarily due to seasonal timing benefits as well as positive underlying revenue growth in most commodities in North America.

Adjusted EBITDA decreased 15.1%, or $2.2 million, primarily driven by the disposal of the Progressive Produce business. On a like-for-like basis, Adjusted EBITDA was 36.4%, or $5.2 million, ahead of the prior year, primarily due to improved performance in our North American diversified business and the benefit of continued seasonal timing differences in South America.

Capital Expenditures

Cash capital expenditures from continuing operations for the six months ended June 30, 2024 were $35.7 million, which included investments in shipping containers, farming investments, efficiency projects in our warehouses and ongoing investments in IT and logistics assets. Additions through finance leases from continuing operations were $7.0 million for the six months ended June 30, 2024.

Sale of Progressive Produce

On March 13, 2024, the Company completed the sale of its 65.0% equity interest in the Progressive Produce business to PTF Holdings. As a result of the sale, Dole received gross proceeds of $120.3 million in cash and recognized a gain on the sale of $75.9 million. On April 25, 2024, Dole voluntarily prepaid $100.0 million of its Term Loan facilities with proceeds from the sale of Progressive Produce.

Free Cash Flow from Continuing Operations and Net Debt

Free cash flow from continuing operations was an outflow of $30.4 million for the six months ended June 30, 2024. Free cash flow was primarily driven by normal seasonal impacts. There were higher outflows from receivables based on higher revenues (excluding the impact of divestitures) and timing of collections and lower inflows from inventories, partly offset by inflows from accounts payables, accrued liabilities and other liabilities. Net Debt as of June 30, 2024 was $767.5 million.

Outlook for Fiscal Year 2024 (forward-looking statement)

We are very pleased that we have consolidated our strong start to the year with another very good performance in the second quarter, putting us in an excellent position to deliver a strong result for the full year.

While forecasting remains complex, our first half result gives us confidence to raise our full year Adjusted EBITDA target to at least $370.0 million for 2024.

For financial year 2024, we are maintaining our previously issued guidance for both capital expenditure from continuing operations and interest expense.

Dividend

On August 13, 2024, the Board of Directors of Dole plc declared a cash dividend for the second quarter of 2024 of $0.08 per share, payable on October 3, 2024 to shareholders of record on September 11, 2024. A cash dividend of $0.08 per share was paid on July 5, 2024 for the first quarter of 2024.

About Dole plc

A global leader in fresh produce, Dole plc produces, markets, and distributes an extensive variety of fresh fruits and vegetables sourced locally and from around the world. Dedicated and passionate in exceeding our customers’ requirements in over 75 countries, our goal is to make the world a healthier and a more sustainable place.

Webcast and Conference Call Information

Dole plc will host a conference call and simultaneous webcast at 08:00 a.m. Eastern Time today to discuss the second quarter 2024 financial results. The webcast can be accessed at www.doleplc.com/investor-relations. The conference call can be accessed by registering at https://registrations.events/direct/Q4I2332517. The conference ID is 23325.

Forward-looking information

Certain statements made in this press release that are not historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on management’s beliefs, assumptions, and expectations of our future economic performance, considering the information currently available to management. These statements are not statements of historical fact. The words “believe,” “may,” “could,” “will,” “should,” “would,” “anticipate,” “estimate,” “expect,” “intend,” “objective,” “seek,” “strive,” “target” or similar words, or the negative of these words, identify forward-looking statements. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates, or expectations contemplated by us will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial condition, business prospects, growth strategy and liquidity. Accordingly, there are, or will be, important factors that could cause our actual results to differ materially from those indicated in these statements. If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from what we may have expressed or implied by these forward-looking statements. We caution that you should not place undue reliance on any of our forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made except as required by the federal securities laws.

 

Appendix

Condensed Consolidated Statements of Operations - Unaudited

 

 

Three Months Ended

 

Six Months Ended

 

June 30, 2024

 

June 30, 2023

 

June 30, 2024

 

June 30, 2023

 

 

 

 

 

 

 

 

 

(U.S. Dollars and shares in thousands, except per share amounts)

Revenues, net

$

2,124,091

 

 

$

2,141,174

 

 

$

4,245,465

 

 

$

4,130,341

 

Cost of sales

 

(1,923,505

)

 

 

(1,944,601

)

 

 

(3,850,202

)

 

 

(3,754,729

)

Gross profit

 

200,586

 

 

 

196,573

 

 

 

395,263

 

 

 

375,612

 

Selling, marketing, general and administrative expenses

 

(116,604

)

 

 

(115,667

)

 

 

(235,554

)

 

 

(236,546

)

Gain on disposal of business

 

1,995

 

 

 

 

 

 

75,945

 

 

 

 

(Loss) gain on asset sales

 

(89

)

 

 

10,723

 

 

 

328

 

 

 

14,696

 

Impairment of goodwill

 

 

 

 

 

 

 

(36,684

)

 

 

 

Impairment of property, plant and equipment

 

 

 

 

 

 

 

(1,277

)

 

 

 

Operating income

 

85,888

 

 

 

91,629

 

 

 

198,021

 

 

 

153,762

 

Other income, net

 

6,377

 

 

 

1,129

 

 

 

13,999

 

 

 

2,904

 

Interest income

 

2,624

 

 

 

2,640

 

 

 

5,703

 

 

 

4,949

 

Interest expense

 

(18,788

)

 

 

(19,748

)

 

 

(36,736

)

 

 

(41,460

)

Income from continuing operations before income taxes and equity earnings

 

76,101

 

 

 

75,650

 

 

 

180,987

 

 

 

120,155

 

Income tax expense

 

(25,460

)

 

 

(16,593

)

 

 

(59,861

)

 

 

(27,587

)

Equity method earnings

 

5,406

 

 

 

4,688

 

 

 

6,408

 

 

 

6,166

 

Income from continuing operations

 

56,047

 

 

 

63,745

 

 

 

127,534

 

 

 

98,734

 

Income (loss) from discontinued operations, net of income taxes

 

32,018

 

 

 

(11,438

)

 

 

25,967

 

 

 

(25,944

)

Net income

 

88,065

 

 

 

52,307

 

 

 

153,501

 

 

 

72,790

 

Net income attributable to noncontrolling interests

 

(7,948

)

 

 

(10,032

)

 

 

(3,241

)

 

 

(16,356

)

Net income attributable to Dole plc

$

80,117

 

 

$

42,275

 

 

$

150,260

 

 

$

56,434

 

 

 

 

 

 

 

 

 

Income (loss) per share - basic:

 

 

 

 

 

 

 

Continuing operations

$

0.51

 

 

$

0.57

 

 

$

1.31

 

 

$

0.86

 

Discontinued operations

 

0.34

 

 

 

(0.12

)

 

 

0.27

 

 

 

(0.27

)

Net income per share attributable to Dole plc - basic

$

0.85

 

 

$

0.45

 

 

$

1.58

 

 

$

0.59

 

 

 

 

 

 

 

 

 

Income (loss) per share - diluted:

 

 

 

 

 

 

 

Continuing operations

$

0.50

 

 

$

0.56

 

 

$

1.30

 

 

$

0.86

 

Discontinued operations

 

0.34

 

 

 

(0.12

)

 

 

0.27

 

 

 

(0.27

)

Net income per share attributable to Dole plc - diluted

$

0.84

 

 

$

0.44

 

 

$

1.57

 

 

$

0.59

 

 

 

 

 

 

 

 

 

Weighted-average shares:

 

 

 

 

 

 

 

Basic

 

94,930

 

 

 

94,909

 

 

 

94,930

 

 

 

94,904

 

Diluted

 

95,340

 

 

 

95,112

 

 

 

95,285

 

 

 

95,068

 

 

Condensed Consolidated Statements of Cash Flows - Unaudited

 

 

Six Months Ended

 

June 30, 2024

 

June 30, 2023

 

 

 

 

Operating Activities

(U.S. Dollars in thousands)

Net income

$

153,501

 

 

$

72,790

 

(Income) loss from discontinued operations, net of taxes

 

(25,967

)

 

 

25,944

 

Income from continuing operations

 

127,534

 

 

 

98,734

 

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

 

 

 

Depreciation and amortization

 

48,395

 

 

 

52,635

 

Impairment of goodwill

 

36,684

 

 

 

 

Impairment of fixed assets

 

1,277

 

 

 

 

Net gain on sale of assets and asset write-offs

 

(328

)

 

 

(14,696

)

Net gain on sale of business

 

(75,945

)

 

 

 

Net (gain) loss on financial instruments

 

(7,096

)

 

 

1,015

 

Stock-based compensation expense

 

4,133

 

 

 

2,768

 

Equity method earnings

 

(6,408

)

 

 

(6,166

)

Amortization of debt discounts and debt issuance costs

 

4,780

 

 

 

3,186

 

Deferred tax (benefit) expense

 

(12,704

)

 

 

48

 

Pension and other postretirement benefit plan expense

 

1,088

 

 

 

3,091

 

Dividends received from equity method investments

 

4,193

 

 

 

5,105

 

Other

 

(110

)

 

 

(1,179

)

Changes in operating assets and liabilities:

 

 

 

Receivables, net of allowances

 

(127,190

)

 

 

(36,994

)

Inventories

 

(3,772

)

 

 

44,282

 

Prepaids, other current assets and other assets

 

(7,282

)

 

 

(13,790

)

Accounts payable, accrued liabilities and other liabilities

 

18,009

 

 

 

(61,295

)

Net cash provided by operating activities - continuing operations

 

5,258

 

 

 

76,744

 

Investing activities

 

 

 

Sales of assets

 

1,898

 

 

 

18,562

 

Capital expenditures

 

(35,693

)

 

 

(35,595

)

Proceeds from sale of business, net of transaction costs

 

115,845

 

 

 

 

Insurance proceeds

 

527

 

 

 

1,850

 

Purchases of investments

 

(260

)

 

 

(1,150

)

(Purchases) sales of unconsolidated affiliates

 

(388

)

 

 

1,498

 

Other

 

(2,579

)

 

 

(1,677

)

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

 

79,350

 

 

 

(16,512

)

Financing activities

 

 

 

Proceeds from borrowings and overdrafts

 

908,034

 

 

 

869,701

 

Repayments on borrowings and overdrafts

 

(1,021,795

)

 

 

(889,593

)

Dividends paid to shareholders

 

(15,189

)

 

 

(15,184

)

Dividends paid to noncontrolling interests

 

(19,445

)

 

 

(16,174

)

Other noncontrolling interest activity, net

 

 

 

 

(480

)

Payment of contingent consideration

 

(996

)

 

 

(1,169

)

Net cash (used in) financing activities - continuing operations

 

(149,391

)

 

 

(52,899

)

Effect of foreign exchange rate changes on cash

 

(8,079

)

 

 

3,210

 

Net cash provided by (used in) operating activities - discontinued operations

 

18,464

 

 

 

(2,898

)

Net cash used in investing activities - discontinued operations

 

(1,720

)

 

 

(5,410

)

Cash provided by discontinued operations, net

 

16,744

 

 

 

(8,308

)

(Decrease) increase in cash and cash equivalents

 

(56,118

)

 

 

2,235

 

Cash and cash equivalents at beginning of period, including discontinued operations

 

277,005

 

 

 

228,840

 

Cash and cash equivalents at end of period, including discontinued operations

$

220,887

 

 

$

231,075

 

Supplemental cash flow information:

 

 

 

Income tax payments, net of refunds

$

(56,096

)

 

$

(39,323

)

Interest payments on borrowings

$

(33,832

)

 

$

(41,159

)

 

Condensed Consolidated Balance Sheets - Unaudited

 

 

June 30, 2024

 

December 31, 2023

 

 

 

 

ASSETS

(U.S. Dollars and shares in thousands)

Cash and cash equivalents

$

219,649

 

 

$

275,580

 

Short-term investments

 

6,182

 

 

 

5,899

 

Trade receivables, net of allowances for credit losses of $20,324 and $18,360, respectively

 

549,352

 

 

 

538,177

 

Grower advance receivables, net of allowances for credit losses of $19,673 and $19,839, respectively

 

99,423

 

 

 

109,958

 

Other receivables, net of allowances for credit losses of $13,309 and $13,227, respectively

 

120,603

 

 

 

117,069

 

Inventories, net of allowances of $5,056 and $4,792, respectively

 

368,309

 

 

 

378,592

 

Prepaid expenses

 

64,597

 

 

 

61,724

 

Other current assets

 

20,239

 

 

 

17,401

 

Fresh Vegetables current assets held for sale

 

484,416

 

 

 

414,457

 

Other assets held for sale

 

1,825

 

 

 

1,832

 

Total current assets

 

1,934,595

 

 

 

1,920,689

 

Long-term investments

 

15,302

 

 

 

15,970

 

Investments in unconsolidated affiliates

 

131,470

 

 

 

131,704

 

Actively marketed property

 

13,781

 

 

 

13,781

 

Property, plant and equipment, net of accumulated depreciation of $467,197 and $444,775, respectively

 

1,077,675

 

 

 

1,102,234

 

Operating lease right-of-use assets

 

315,801

 

 

 

340,458

 

Goodwill

 

434,797

 

 

 

513,312

 

DOLE brand

 

306,280

 

 

 

306,280

 

Other intangible assets, net of accumulated amortization of $118,505 and $134,420, respectively

 

28,578

 

 

 

41,232

 

Other assets

 

110,707

 

 

 

109,048

 

Deferred tax assets, net

 

69,630

 

 

 

66,485

 

Total assets

$

4,438,616

 

 

$

4,561,193

 

LIABILITIES AND EQUITY

 

 

 

Accounts payable

$

592,724

 

 

$

670,904

 

Income taxes payable

 

68,131

 

 

 

22,917

 

Accrued liabilities

 

360,269

 

 

 

357,427

 

Bank overdrafts

 

38,613

 

 

 

11,488

 

Current portion of long-term debt, net

 

55,201

 

 

 

222,940

 

Current maturities of operating leases

 

61,651

 

 

 

63,653

 

Payroll and other tax

 

25,704

 

 

 

27,791

 

Contingent consideration

 

1,099

 

 

 

1,788

 

Pension and other postretirement benefits

 

15,725

 

 

 

16,570

 

Fresh Vegetables current liabilities held for sale

 

275,626

 

 

 

291,342

 

Dividends payable and other current liabilities

 

39,723

 

 

 

29,892

 

Total current liabilities

 

1,534,466

 

 

 

1,716,712

 

Long-term debt, net

 

882,287

 

 

 

845,013

 

Operating leases, less current maturities

 

258,229

 

 

 

287,991

 

Deferred tax liabilities, net

 

83,892

 

 

 

92,653

 

Income taxes payable, less current portion

 

 

 

 

16,664

 

Contingent consideration, less current portion

 

7,252

 

 

 

7,327

 

Pension and other postretirement benefits, less current portion

 

116,640

 

 

 

121,689

 

Other long-term liabilities

 

48,461

 

 

 

52,295

 

Total liabilities

 

2,931,227

 

 

 

3,140,344

 

 

 

 

 

Redeemable noncontrolling interests

 

33,817

 

 

 

34,185

 

Stockholders’ equity:

 

 

 

Common stock — $0.01 par value; 300,000 shares authorized; 94,952 and 94,929 shares outstanding as of June 30, 2024 and December 31, 2023

 

950

 

 

 

949

 

Additional paid-in capital

 

801,774

 

 

 

796,800

 

Retained earnings

 

697,504

 

 

 

562,562

 

Accumulated other comprehensive loss

 

(129,373

)

 

 

(110,791

)

Total equity attributable to Dole plc

 

1,370,855

 

 

 

1,249,520

 

Equity attributable to noncontrolling interests

 

102,717

 

 

 

137,144

 

Total equity

 

1,473,572

 

 

 

1,386,664

 

Total liabilities, redeemable noncontrolling interests and equity

$

4,438,616

 

 

$

4,561,193

 

Reconciliation from Net Income to Adjusted EBITDA - Unaudited

The following information is provided to give quantitative information related to items impacting comparability. Refer to the 'Non-GAAP Financial Measures' section of this document for additional detail on each item.

 

Three Months Ended

 

Six Months Ended

 

June 30, 2024

 

June 30, 2023

 

June 30, 2024

 

June 30, 2023

 

 

 

 

 

 

 

 

 

(U.S. Dollars in thousands)

Net income (Reported GAAP)

$

88,065

 

 

$

52,307

 

 

$

153,501

 

 

$

72,790

 

(Income) loss from discontinued operations, net of income taxes

 

(32,018

)

 

 

11,438

 

 

 

(25,967

)

 

 

25,944

 

Income from continuing operations (Reported GAAP)

 

56,047

 

 

 

63,745

 

 

 

127,534

 

 

 

98,734

 

Income tax expense

 

25,460

 

 

 

16,593

 

 

 

59,861

 

 

 

27,587

 

Interest expense

 

18,788

 

 

 

19,748

 

 

 

36,736

 

 

 

41,460

 

Mark to market (gains) losses

 

(2,214

)

 

 

1,035

 

 

 

(5,084

)

 

 

1,857

 

(Gain) loss on asset sales

 

 

 

 

(10,387

)

 

 

31

 

 

 

(14,554

)

Gain on disposal of business

 

(1,995

)

 

 

 

 

 

(75,945

)

 

 

 

Cyber-related incident

 

 

 

 

571

 

 

 

 

 

 

5,321

 

Impairment of goodwill

 

 

 

 

 

 

 

36,684

 

 

 

 

Other items 45

 

74

 

 

 

190

 

 

 

(1,726

)

 

 

863

 

Adjustments from equity method investments

 

2,946

 

 

 

2,922

 

 

 

4,460

 

 

 

4,245

 

Adjusted EBIT (Non-GAAP)

 

99,106

 

 

 

94,417

 

 

 

182,551

 

 

 

165,513

 

Depreciation

 

22,388

 

 

 

23,142

 

 

 

44,236

 

 

 

47,445

 

Amortization of intangible assets

 

1,886

 

 

 

2,574

 

 

 

4,159

 

 

 

5,190

 

Depreciation and amortization adjustments from equity method investments

 

2,041

 

 

 

2,548

 

 

 

4,574

 

 

 

4,920

 

Adjusted EBITDA (Non-GAAP)

$

125,421

 

 

$

122,681

 

 

$

235,520

 

 

$

223,068

 

_______________________

4

 

For the three months ended June 30, 2024, other items is primarily comprised of $0.1 million of asset writedowns, net of insurance proceeds. For the three months ended June 30, 2023, other items is primarily comprised of $0.2 million of asset writedowns, net of insurance proceeds.

5

 

For the six months ended June 30, 2024, other items is primarily comprised of $1.6 million of insurance proceeds, net of asset writedowns. For the three months ended June 30, 2023, other items is primarily comprised of $0.9 million of asset writedowns, net of insurance proceeds.

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

The following information is provided to give quantitative information related to items impacting comparability. Refer to the 'Non-GAAP Financial Measures' section of this document for additional detail on each item. Refer to the Appendix for supplementary detail.

 

Three Months Ended

 

Six Months Ended

 

June 30, 2024

 

June 30, 2023

 

June 30, 2024

 

June 30, 2023

 

 

 

 

 

 

 

 

 

(U.S. Dollars and shares in thousands, except per share amounts)

Net income attributable to Dole plc (Reported GAAP)

$

80,117

 

 

$

42,275

 

 

$

150,260

 

 

$

56,434

 

(Income) loss from discontinued operations, net of income taxes

 

(32,018

)

 

 

11,438

 

 

 

(25,967

)

 

 

25,944

 

Income from continuing operations attributable to Dole plc

 

48,099

 

 

 

53,713

 

 

 

124,293

 

 

 

82,378

 

Adjustments:

 

 

 

 

 

 

 

Amortization of intangible assets

 

1,886

 

 

 

2,574

 

 

 

4,159

 

 

 

5,190

 

Mark to market (gains) losses

 

(2,214

)

 

 

1,035

 

 

 

(5,084

)

 

 

1,857

 

(Gain) loss on asset sales

 

 

 

 

(10,387

)

 

 

31

 

 

 

(14,554

)

Gain on disposal of business

 

(1,995

)

 

 

 

 

 

(75,945

)

 

 

 

Cyber-related incident

 

 

 

 

571

 

 

 

 

 

 

5,321

 

Impairment of goodwill

 

 

 

 

 

 

 

36,684

 

 

 

 

Other items 67

 

74

 

 

 

190

 

 

 

(1,726

)

 

 

863

 

Adjustments from equity method investments

 

720

 

 

 

623

 

 

 

1,251

 

 

 

742

 

Income tax on items above and discrete tax items

 

788

 

 

 

797

 

 

 

15,107

 

 

 

488

 

NCI impact of items above

 

(326

)

 

 

(736

)

 

 

(11,187

)

 

 

(1,629

)

Adjusted Net Income for Adjusted EPS calculation (Non-GAAP)

$

47,032

 

 

$

48,380

 

 

$

87,583

 

 

$

80,656

 

 

 

 

 

 

 

 

 

Adjusted earnings per share – basic (Non-GAAP)

$

0.50

 

 

$

0.51

 

 

$

0.92

 

 

$

0.85

 

Adjusted earnings per share – diluted (Non-GAAP)

$

0.49

 

 

$

0.51

 

 

$

0.92

 

 

$

0.85

 

Weighted average shares outstanding – basic

 

94,930

 

 

 

94,909

 

 

 

94,930

 

 

 

94,904

 

Weighted average shares outstanding – diluted

 

95,340

 

 

 

95,112

 

 

 

95,285

 

 

 

95,068

 

_______________________

6

 

For the three months ended June 30, 2024, other items is primarily comprised of $0.1 million of asset writedowns, net of insurance proceeds. For the three months ended June 30, 2023, other items is primarily comprised of $0.2 million of asset writedowns, net of insurance proceeds.

7

 

For the six months ended June 30, 2024, other items is primarily comprised of $1.6 million of insurance proceeds, net of asset writedowns. For the six months ended June 30, 2023, other items is primarily comprised of $0.9 million of asset writedowns, net of insurance proceeds.

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

The following information is provided to give quantitative information related to items impacting comparability. Refer to the 'Non-GAAP Financial Measures' section of this document for additional detail on each item.

 

Three Months Ended June 30, 2024

(U.S. Dollars in thousands)

 

Revenues, net

Cost of sales

Gross profit

Gross
Margin %

Selling,
marketing,
general and
administrative
expenses

Other
operating
charges8

Operating
Income

Reported (GAAP)

$

2,124,091

(1,923,505

)

200,586

9.4

%

(116,604

)

1,906

 

$

85,888

 

(Income) loss from discontinued operations, net of income taxes

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

 

 

 

1,886

 

 

 

1,886

 

Mark to market (gains) losses

 

 

 

 

 

 

 

 

 

(Gain) loss on asset sales

 

 

 

 

 

 

 

 

 

Gain on disposal of business

 

 

 

 

 

 

(1,995

)

 

(1,995

)

Impairment of goodwill

 

 

 

 

 

 

 

 

 

Other items

 

 

157

 

157

 

 

 

 

 

157

 

Adjustments from equity method investments

 

 

 

 

 

 

 

 

 

Income tax on items above and discrete tax items

 

 

 

 

 

 

 

 

 

NCI impact of items above

 

 

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

2,124,091

 

(1,923,348

)

200,743

 

9.5

%

(114,718

)

(89

)

$

85,936

 

_______________________

8

Other operating charges for the three months ended June 30, 2024 is primarily comprised of a gain on disposal of business of $2.0 million as reported on the Dole plc GAAP Condensed Consolidated Statements of Operations.

Three Months Ended June 30, 2023

(U.S. Dollars in thousands)

 

Revenues, net

Cost of sales

Gross profit

Gross
Margin %

Selling,
marketing,
general and
administrative
expenses

Other
operating
charges9

Operating
Income

Reported (GAAP)

$

2,141,174

(1,944,601

)

196,573

9.2

%

(115,667

)

10,723

 

$

91,629

 

(Income) loss from discontinued operations, net of income taxes

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

 

 

 

2,574

 

 

 

2,574

 

Mark to market (gains) losses

 

 

54

 

54

 

 

 

 

 

54

 

(Gain) loss on asset sales

 

 

 

 

 

 

(10,387

)

 

(10,387

)

Cyber-related incident

 

 

 

 

 

571

 

 

 

571

 

Other items

 

 

190

 

190

 

 

 

 

 

190

 

Adjustments from equity method investments

 

 

 

 

 

 

 

 

 

Income tax on items above and discrete tax items

 

 

 

 

 

 

 

 

 

NCI impact on items above

 

 

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

2,141,174

 

(1,944,357

)

196,817

 

9.2

%

(112,522

)

336

 

$

84,631

 

_______________________

9

Other operating charges for the three months ended June 30, 2023 is comprised of gains on asset sales of $10.7 million, as reported on the Dole plc GAAP Condensed Consolidated Statements of Operations.

Three Months Ended June 30, 2024

(U.S. Dollars in thousands)

 

Other
income, net

Interest
income

Interest
expense

Income tax
expense

Equity
method
earnings

Income from
continuing
operations

Income (loss)
from
discontinued
operations, net
of income
taxes

Reported (GAAP)

$

6,377

 

2,624

(18,788

)

(25,460

)

5,406

 

56,047

 

 

32,018

 

(Income) loss from discontinued operations, net of income taxes

 

 

 

 

 

 

 

 

(32,018

)

Amortization of intangible assets

 

 

 

 

 

 

1,886

 

 

 

Mark to market (gains) losses

 

(2,214

)

 

 

 

 

(2,214

)

 

 

(Gain) loss on asset sales

 

 

 

 

 

 

 

 

 

Gain on disposal of business

 

 

 

 

 

 

(1,995

)

 

 

Impairment of goodwill

 

 

 

 

 

 

 

 

 

Other items

 

(83

)

 

 

 

 

74

 

 

 

Adjustments from equity method investments

 

 

 

 

 

720

 

720

 

 

 

Income tax on items above and discrete tax items

 

 

 

 

888

 

(100

)

788

 

 

 

NCI impact of items above

 

 

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

4,080

 

2,624

 

(18,788

)

(24,572

)

6,026

 

55,306

 

$

 

 

Three Months Ended June 30, 2023

(U.S. Dollars in thousands)

 

Other
income, net

Interest
income

Interest
expense

Income tax
expense

Equity
method
earnings

Income from
continuing
operations

Income (loss)
from
discontinued
operations, net
of income
taxes

Reported (GAAP)

$

1,129

2,640

(19,748

)

(16,593

)

4,688

 

63,745

 

 

(11,438

)

(Income) loss from discontinued operations, net of income taxes

 

 

 

 

 

 

 

 

11,438

 

Amortization of intangible assets

 

 

 

 

 

 

2,574

 

 

 

Mark to market (gains) losses

 

981

 

 

 

 

 

1,035

 

 

 

(Gain) loss on asset sales

 

 

 

 

 

 

(10,387

)

 

 

Cyber-related incident

 

 

 

 

 

 

571

 

 

 

Other items

 

 

 

 

 

 

190

 

 

 

Adjustments from equity method investments

 

 

 

 

 

623

 

623

 

 

 

Income tax on items above and discrete tax items

 

 

 

 

878

 

(81

)

797

 

 

 

NCI impact of items above

 

 

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

2,110

 

2,640

 

(19,748

)

(15,715

)

5,230

 

59,148

 

$

 

 

Three Months Ended June 30, 2024

U.S. Dollars and shares in thousands, except per share amounts

 

 

Net income

Net income
attributable to
noncontrolling
interests

Net income
attributable to
Dole plc

Diluted net
income per share

Reported (GAAP)

$

88,065

 

$

(7,948

)

$

80,117

 

$

0.84

(Income) loss from discontinued operations, net of income taxes

 

(32,018

)

 

 

 

(32,018

)

 

Amortization of intangible assets

 

1,886

 

 

 

 

1,886

 

Mark to market (gains) losses

 

(2,214

)

 

 

 

(2,214

)

(Gain) loss on asset sales

 

 

 

 

 

 

Gain on disposal of business

 

(1,995

)

 

 

 

(1,995

)

Impairment of goodwill

 

 

 

 

 

 

Other items

 

74

 

 

 

 

74

 

Adjustments from equity method investments

 

720

 

 

 

 

720

 

Income tax on items above and discrete tax items

 

788

 

 

 

 

788

 

NCI impact of items above

 

 

 

(326

)

 

(326

)

Adjusted (Non-GAAP)

$

55,306

 

$

(8,274

)

$

47,032

 

$

0.49

 

 

 

 

 

 

Weighted average shares outstanding – diluted

 

95,340

 

 

 

 

 

Three Months Ended June 30, 2023

U.S. Dollars and shares in thousands, except per share amounts

 

 

Net income

Net income
attributable to
noncontrolling
interests

Net income
attributable to
Dole plc

Diluted net
income per share

Reported (GAAP)

$

52,307

 

$

(10,032

)

$

42,275

 

$

0.44

(Income) loss from discontinued operations, net of income taxes

 

11,438

 

 

 

 

11,438

 

 

Amortization of intangible assets

 

2,574

 

 

 

 

2,574

 

Mark to market (gains) losses

 

1,035

 

 

 

 

1,035

 

(Gain) loss on asset sales

 

(10,387

)

 

 

 

(10,387

)

Cyber-related incident

 

571

 

 

 

 

571

 

Other items

 

190

 

 

 

 

190

 

Adjustments from equity method investments

 

623

 

 

 

 

623

 

Income tax on items above and discrete tax items

 

797

 

 

 

 

797

 

NCI impact of items above

 

 

 

(736

)

 

(736

)

Adjusted (Non-GAAP)

$

59,148

 

$

(10,768

)

$

48,380

 

$

0.51

 

 

 

 

 

 

Weighted average shares outstanding – diluted

 

95,112

 

 

 

 

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.

 

Six Months Ended June 30, 2024

(U.S. Dollars in thousands)

 

Revenues, net

Cost of sales

Gross profit

Gross
Margin %

Selling,
marketing,
general and
administrative
expenses

Other
operating
charges10

Operating
Income

Reported (GAAP)

$

4,245,465

(3,850,202

)

395,263

 

9.3

%

(235,554

)

38,312

 

$

198,021

 

(Income) loss from discontinued operations, net of income taxes

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

 

 

 

4,159

 

 

 

4,159

 

Mark to market (gains) losses

 

 

(120

)

(120

)

 

 

 

 

(120

)

(Gain) loss on asset sales

 

 

 

 

 

 

31

 

 

31

 

Gain on disposal of business

 

 

 

 

 

 

(75,945

)

 

(75,945

)

Impairment of goodwill

 

 

 

 

 

 

36,684

 

 

36,684

 

Other items

 

 

(1,643

)

(1,643

)

 

 

 

 

(1,643

)

Adjustments from equity method investments

 

 

 

 

 

 

 

 

 

Income tax on items above and discrete tax items

 

 

 

 

 

 

 

 

 

NCI impact of items above

 

 

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

4,245,465

 

(3,851,965

)

393,500

 

9.3

%

(231,395

)

(918

)

$

161,187

 

_______________________

10

 

Other operating charges for the six months ended June 30, 2024 is primarily comprised of a gain on disposal of business of $75.9 million, offset by a goodwill impairment charge of $36.7 million and a fixed asset impairment charge of $1.3 million, as reported on the Dole plc GAAP Condensed Consolidated Statements of Operations.

Six Months Ended June 30, 2023

(U.S. Dollars in thousands)

 

Revenues, net

Cost of sales

Gross profit

Gross
Margin %

Selling,
marketing,
general and
administrative
expenses

Other
operating
charges11

Operating
Income

Reported (GAAP)

$

4,130,341

(3,754,729

)

375,612

 

9.1

%

(236,546

)

14,696

 

$

153,762

 

(Income) loss from discontinued operations, net of income taxes

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

 

 

 

5,190

 

 

 

5,190

 

Mark to market (gains) losses

 

 

(1,336

)

(1,336

)

 

 

 

 

(1,336

)

(Gain) loss on asset sales

 

 

 

 

 

 

(14,554

)

 

(14,554

)

Cyber-related incident

 

 

 

 

 

5,321

 

 

 

5,321

 

Other items

 

 

863

 

863

 

 

 

 

 

863

 

Adjustments from equity method investments

 

 

 

 

 

 

 

 

 

Income tax on items above and discrete tax items

 

 

 

 

 

 

 

 

 

NCI impact of items above

 

 

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

4,130,341

 

(3,755,202

)

375,139

 

9.1

%

(226,035

)

142

 

$

149,246

 

_______________________

11

 

Other operating charges for the six months ended June 30, 2023 is comprised of gains on asset sales of $14.7 million, as reported on the Dole plc GAAP Condensed Consolidated Statements of Operations.

Six Months Ended June 30, 2024

(U.S. Dollars in thousands)

 

Other
income, net

Interest
income

Interest
expense

Income tax
expense

Equity
method
earnings

Income from
continuing
operations

Income (loss)
from
discontinued
operations, net
of income
taxes

Reported (GAAP)

$

13,999

 

5,703

(36,736

)

(59,861

)

6,408

 

127,534

 

 

25,967

 

(Income) loss from discontinued operations, net of income taxes

 

 

 

 

 

 

 

 

(25,967

)

Amortization of intangible assets

 

 

 

 

 

 

4,159

 

 

 

Mark to market (gains) losses

 

(4,964

)

 

 

 

 

(5,084

)

 

 

(Gain) loss on asset sales

 

 

 

 

 

 

31

 

 

 

Gain on disposal of business

 

 

 

 

 

 

(75,945

)

 

 

Impairment of goodwill

 

 

 

 

 

 

36,684

 

 

 

Other items

 

(83

)

 

 

 

 

(1,726

)

 

 

Adjustments from equity method investments

 

 

 

 

 

1,251

 

1,251

 

 

 

Income tax on items above and discrete tax items

 

 

 

 

15,307

 

(200

)

15,107

 

 

 

NCI impact of items above

 

 

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

8,952

 

5,703

 

(36,736

)

(44,554

)

7,459

 

102,011

 

$

 

 

Six Months Ended June 30, 2023

(U.S. Dollars in thousands)

 

Other
income, net

Interest
income

Interest
expense

Income tax
expense

Equity
method
earnings

Income from
continuing
operations

Income (loss)
from
discontinued
operations, net
of income
taxes

Reported (GAAP)

$

2,904

4,949

(41,460

)

(27,587

)

6,166

 

98,734

 

 

(25,944

)

(Income) loss from discontinued operations, net of income taxes

 

 

 

 

 

 

 

 

25,944

 

Amortization of intangible assets

 

 

 

 

 

 

5,190

 

 

 

Mark to market (gains) losses

 

3,193

 

 

 

 

 

1,857

 

 

 

(Gain) loss on asset sales

 

 

 

 

 

 

(14,554

)

 

 

Cyber-related incident

 

 

 

 

 

 

5,321

 

 

 

Other items

 

 

 

 

 

 

863

 

 

 

Adjustments from equity method investments

 

 

 

 

 

742

 

742

 

 

 

Income tax on items above and discrete tax items

 

 

 

 

650

 

(162

)

488

 

 

 

NCI impact of items above

 

 

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

6,097

 

4,949

 

(41,460

)

(26,937

)

6,746

 

98,641

 

$

 

 

Six Months Ended June 30, 2024

U.S. Dollars and shares in thousands, except per share amounts

 

 

Net income

Net income
attributable to
noncontrolling
interests

Net income
attributable to
Dole plc

Diluted net
income per share

Reported (GAAP)

$

153,501

 

$

(3,241

)

$

150,260

 

$

1.57

(Income) loss from discontinued operations, net of income taxes

 

(25,967

)

 

 

 

(25,967

)

 

Amortization of intangible assets

 

4,159

 

 

 

 

4,159

 

Mark to market (gains) losses

 

(5,084

)

 

 

 

(5,084

)

(Gain) loss on asset sales

 

31

 

 

 

 

31

 

Gain on disposal of business

 

(75,945

)

 

 

 

(75,945

)

Impairment of goodwill

 

36,684

 

 

 

 

36,684

 

Other items

 

(1,726

)

 

 

 

(1,726

)

Adjustments from equity method investments

 

1,251

 

 

 

 

1,251

 

Income tax on items above and discrete tax items

 

15,107

 

 

 

 

15,107

 

NCI impact of items above

 

 

 

(11,187

)

 

(11,187

)

Adjusted (Non-GAAP)

$

102,011

 

$

(14,428

)

$

87,583

 

$

0.92

 

 

 

 

 

 

Weighted average shares outstanding – diluted

 

95,285

 

 

 

 

 

Six Months Ended June 30, 2023

U.S. Dollars and shares in thousands, except per share amounts

 

 

Net income

Net income
attributable to
noncontrolling
interests

Net income
attributable to
Dole plc

Diluted net
income per share

Reported (GAAP)

$

72,790

 

$

(16,356

)

$

56,434

 

$

0.59

(Income) loss from discontinued operations, net of income taxes

 

25,944

 

 

 

 

25,944

 

 

Amortization of intangible assets

 

5,190

 

 

 

 

5,190

 

Mark to market (gains) losses

 

1,857

 

 

 

 

1,857

 

(Gain) loss on asset sales

 

(14,554

)

 

 

 

(14,554

)

Cyber-related incident

 

5,321

 

 

 

 

5,321

 

Other items

 

863

 

 

 

 

863

 

Adjustments from equity method investments

 

742

 

 

 

 

742

 

Income tax on items above and discrete tax items

 

488

 

 

 

 

488

 

NCI impact of items above

 

 

 

(1,629

)

 

(1,629

)

Adjusted (Non-GAAP)

$

98,641

 

$

(17,985

)

$

80,656

 

$

0.85

 

 

 

 

 

 

Weighted average shares outstanding – diluted

 

95,068

 

 

 

 

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

 

Revenue for the Three Months Ended

 

June 30, 2023

 

Impact of
Foreign
Currency
Translation

 

Impact of
Acquisitions
and Divestitures

 

Like-for-like
Increase
(Decrease)

 

June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

(U.S. Dollars in thousands)

Fresh Fruit

$

839,043

 

 

$

 

 

$

 

 

$

12,408

 

$

851,451

 

Diversified Fresh Produce - EMEA

 

915,629

 

 

 

(8,737

)

 

 

7,799

 

 

 

30,160

 

 

 

944,851

 

Diversified Fresh Produce - Americas & ROW

 

417,645

 

 

 

(899

)

 

 

(108,061

)

 

 

47,372

 

 

 

356,057

 

Intersegment

 

(31,143

)

 

 

 

 

 

 

 

 

2,875

 

 

 

(28,268

)

Total

$

2,141,174

 

 

$

(9,636

)

 

$

(100,262

)

 

$

92,815

 

 

$

2,124,091

 

 

 

 

Adjusted EBITDA for the Three Months Ended

 

June 30, 2023

 

Impact of
Foreign
Currency
Translation

 

Impact of
Acquisitions
and Divestitures

 

Like-for-like
Increase
(Decrease)

 

June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

(U.S. Dollars in thousands)

Fresh Fruit

$

65,816

 

 

$

45

 

 

$

 

 

$

4,758

 

 

$

70,619

 

Diversified Fresh Produce - EMEA

 

42,603

 

 

 

(311

)

 

 

257

 

 

 

146

 

 

 

42,695

 

Diversified Fresh Produce - Americas & ROW

 

14,262

 

 

 

(10

)

 

 

(7,337

)

 

 

5,192

 

 

 

12,107

 

Total

$

122,681

 

 

$

(276

)

 

$

(7,080

)

 

$

10,096

 

 

$

125,421

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue for the Six Months Ended

 

June 30, 2023

 

Impact of
Foreign
Currency
Translation

 

Impact of
Acquisitions
and Divestitures

 

Like-for-like
Increase
(Decrease)

 

June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

(U.S. Dollars in thousands)

Fresh Fruit

$

1,637,953

 

 

$

 

 

$

 

 

$

37,727

 

 

$

1,675,680

 

Diversified Fresh Produce - EMEA

 

1,713,729

 

 

 

3,932

 

 

 

13,971

 

 

 

66,817

 

 

 

1,798,449

 

Diversified Fresh Produce - Americas & ROW

 

840,396

 

 

 

(726

)

 

 

(127,501

)

 

 

120,770

 

 

 

832,939

 

Intersegment

 

(61,737

)

 

 

 

 

 

 

 

134

 

 

 

(61,603

)

Total

$

4,130,341

 

 

$

3,206

 

 

$

(113,530

)

 

$

225,448

 

 

$

4,245,465

 

 

 

 

Adjusted EBITDA for the Six Months Ended

 

June 30, 2023

 

Impact of
Foreign
Currency
Translation

 

Impact of
Acquisitions
and Divestitures

 

Like-for-like
Increase
(Decrease)

 

June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

(U.S. Dollars in thousands)

Fresh Fruit

$

135,027

 

 

$

(1

)

 

$

 

 

$

5,028

 

 

$

140,054

 

Diversified Fresh Produce - EMEA

 

66,009

 

 

 

37

 

 

 

125

 

 

 

2,483

 

 

 

68,654

 

Diversified Fresh Produce - Americas & ROW

 

22,032

 

 

 

(19

)

 

 

(8,626

)

 

 

13,425

 

 

 

26,812

 

Total

$

223,068

 

 

$

17

 

 

$

(8,501

)

 

$

20,936

 

 

$

235,520

 

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 June 30, 2024 is presented below. Net Debt as of June 30, 2024 was $767.5 million.

 

June 30, 2024

 

December 31, 2023

 

 

 

 

 

(U.S. Dollars in thousands)

Cash and cash equivalents (Reported GAAP)

$

219,649

 

 

$

275,580

 

Debt (Reported GAAP):

 

 

 

Long-term debt, net

 

(882,287

)

 

 

(845,013

)

Current maturities

 

(55,201

)

 

 

(222,940

)

Bank overdrafts

 

(38,613

)

 

 

(11,488

)

Total debt, net

 

(976,101

)

 

 

(1,079,441

)

Less: Debt discounts and debt issuance costs (Reported GAAP)

 

(11,064

)

 

 

(14,395

)

Total gross debt

 

(987,165

)

 

 

(1,093,836

)

Net Debt (Non-GAAP)

$

(767,516

)

 

$

(818,256

)

Free Cash Flow from Continuing Operations Reconciliation

 

Six Months Ended

 

June 30, 2024

 

June 30, 2023

 

 

 

 

 

(U.S. Dollars in thousands)

Net cash (used in) provided by operating activities - continuing operations (Reported GAAP)

$

5,259

 

 

$

76,744

 

Less: Capital expenditures (Reported GAAP)12

 

(35,693

)

 

 

(35,595

)

Free cash flow from continuing operations (Non-GAAP)

$

(30,434

)

 

$

41,149

 

_______________________

12

 

Capital expenditures do not include amounts attributable to discontinued operations.

Non-GAAP Financial Measures

Dole plc’s results are determined in accordance with U.S. GAAP.

In addition to its results under U.S. GAAP, in this Press Release, we also present Dole plc’s Adjusted EBIT, Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, Free Cash Flow from Continuing Operations and Net Debt, which are supplemental measures of financial performance that are not required by, or presented in accordance with, U.S. GAAP (collectively, the "non-GAAP financial measures"). We present these non-GAAP financial measures, because we believe they assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. These non-GAAP financial measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our operating results, cash flows or any other measure prescribed by U.S. GAAP. Our presentation of non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by any of the adjusted items or that any projections and estimates will be realized in their entirety or at all. In addition, adjustment items that are excluded from non-GAAP results can have a material impact on equivalent GAAP earnings, financial measures and cash flows.

Adjusted EBIT is calculated from GAAP net income by: (1) subtracting the income or adding the loss from discontinued operations, net of income taxes; (2) adding the income tax expense or subtracting the income tax benefit; (3) adding interest expense; (4) adding mark to market losses or subtracting mark to market gains related to unrealized impacts from certain derivative instruments and foreign currency denominated borrowings, realized impacts on noncash settled foreign currency denominated borrowings, net foreign currency impacts on liquidated entities and fair value movements on contingent consideration; (5) other items which are separately stated based on materiality, which during the three and six months ended June 30, 2024 and June 30, 2023, included adding or subtracting asset write-downs from extraordinary events, net of insurance proceeds, subtracting the gain or adding the loss on the disposal of business interests, subtracting the gain or adding the loss on asset sales for assets held for sale and actively marketed property, adding impairment charges on goodwill and adding costs incurred for the cyber-related incident; and (6) the Company’s share of these items from equity method investments.

Adjusted EBITDA is calculated from GAAP net income by: (1) subtracting the income or adding the loss from discontinued operations, net of income taxes; (2) adding the income tax expense or subtracting the income tax benefit; (3) adding interest expense; (4) adding depreciation charges; (5) adding amortization charges on intangible assets; (6) adding mark to market losses or subtracting mark to market gains related to unrealized impacts from certain derivative instruments and foreign currency denominated borrowings, realized impacts on noncash settled foreign currency denominated borrowings, net foreign currency impacts on liquidated entities and fair value movements on contingent consideration; (7) other items which are separately stated based on materiality, which during the three and six months ended June 30, 2024 and June 30, 2023, included adding or subtracting asset write-downs from extraordinary events, net of insurance proceeds, subtracting the gain or adding the loss on the disposal of business interests, subtracting the gain or adding the loss on asset sales for assets held for sale and actively marketed property, adding impairment charges on goodwill and adding costs incurred for the cyber-related incident; and (8) the Company’s share of these items from equity method investments.

Adjusted Net Income is calculated from GAAP net income attributable to Dole plc by: (1) subtracting the income or adding the loss from discontinued operations, net of income taxes; (2) adding amortization charges on intangible assets; (3) adding mark to market losses or subtracting mark to market gains related to unrealized impacts from certain derivative instruments and foreign currency denominated borrowings, realized impacts on noncash settled foreign currency denominated borrowings, net foreign currency impacts on liquidated entities and fair value movements on contingent consideration; (4) other items which are separately stated based on materiality, which during the three and six months ended June 30, 2024 and June 30, 2023, included adding or subtracting asset write-downs from extraordinary events, net of insurance proceeds, subtracting the gain or adding the loss on the disposal of business interests, subtracting the gain or adding the loss on asset sales for assets held for sale and actively marketed property, adding impairment charges on goodwill and adding costs incurred for the cyber-related incident; (5) the Company’s share of these items from equity method investments; (6) excluding the tax effect of these items and discrete tax adjustments; and (7) excluding the effect of these items attributable to non-controlling interests.

Adjusted Earnings per Share is calculated from Adjusted Net Income divided by diluted weighted average number of shares in the applicable period.

Net Debt is a non-GAAP financial measure, calculated as GAAP cash and cash equivalents, less GAAP current and long-term debt. It also excludes GAAP unamortized debt discounts and debt issuance costs.

Free cash flow from continuing operations is calculated from GAAP net cash used in or provided by operating activities for continuing operations less GAAP capital expenditures.

Like-for-like basis refers to the U.S. GAAP measure or non-GAAP financial measure excluding the impact of foreign currency translation movements and acquisitions and divestitures.

Dole is not able to provide a reconciliation for projected FY'24 results without taking unreasonable efforts.

Contacts

Investor Contact:
James O'Regan, Head of Investor Relations, Dole plc
joregan@totalproduce.com
+353 1 887 2794

Media Contact:
Brian Bell, Ogilvy
brian.bell@ogilvy.com
+353 87 2436 130

Contacts

Investor Contact:
James O'Regan, Head of Investor Relations, Dole plc
joregan@totalproduce.com
+353 1 887 2794

Media Contact:
Brian Bell, Ogilvy
brian.bell@ogilvy.com
+353 87 2436 130