DUBLIN--(BUSINESS WIRE)--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
|
Selling,
|
Other
|
Operating
|
|||||||||
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
|
Selling,
|
Other
|
Operating
|
|||||||||
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
|
Interest
|
Interest
|
Income tax
|
Equity
|
Income from
|
Income (loss)
|
|||||||||
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
|
Interest
|
Interest
|
Income tax
|
Equity
|
Income from
|
Income (loss)
|
|||||||||
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
|
Net income
|
Diluted net
|
||||||||
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
|
Net income
|
Diluted net
|
||||||||
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
|
Selling,
|
Other
|
Operating
|
|||||||||
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
|
Selling,
|
Other
|
Operating
|
|||||||||
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
|
Interest
|
Interest
|
Income tax
|
Equity
|
Income from
|
Income (loss)
|
|||||||||
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
|
Interest
|
Interest
|
Income tax
|
Equity
|
Income from
|
Income (loss)
|
|||||||||
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
|
Net income
|
Diluted net
|
||||||||
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
|
Net income
|
Diluted net
|
||||||||
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
|
|
Impact of
|
|
Like-for-like
|
|
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
|
|
Impact of
|
|
Like-for-like
|
|
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
|
|
Impact of
|
|
Like-for-like
|
|
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
|
|
Impact of
|
|
Like-for-like
|
|
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.
