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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240814410146/en/
Investor Contact: James O'Regan, Head of Investor
Relations, Dole plc joregan@totalproduce.com +353 1 887 2794
Media Contact: Brian Bell, Ogilvy brian.bell@ogilvy.com
+353 87 2436 130
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