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Dole plc Reports Second Quarter 2023 Financial Results

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, 2023.

Highlights for the three months ended June 30, 2023:

  • Second quarter Revenue of $2.1 billion, an increase of 4.4%
  • Second quarter Net Income of $52.3 million, an increase of 8.1%
  • Second quarter Adjusted EBITDA1 of $122.7 million, an increase of 9.7%
  • Second quarter Adjusted Net Income of $48.4 million and Adjusted Diluted EPS of $0.51

Financial Highlights - Unaudited

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30, 2023

 

June 30, 2022

 

June 30, 2023

 

June 30, 2022

 

 

 

 

 

 

 

 

 

 

 

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

Revenue

 

2,141

 

2,051

 

4,130

 

4,021

Income from continuing operations2

 

63.7

 

59.6

 

98.7

 

88.2

Net Income

 

52.3

 

48.4

 

72.8

 

51.8

Net Income attributable to Dole plc

 

42.3

 

41.3

 

56.4

 

39.9

Diluted EPS from continuing operations

 

0.56

 

0.55

 

0.86

 

0.80

Diluted EPS

 

0.44

 

0.43

 

0.59

 

0.42

Adjusted EBITDA1

 

122.7

 

111.8

 

223.1

 

203.7

Adjusted Net Income1

 

48.4

 

52.4

 

80.7

 

92.9

Adjusted Diluted EPS1

0.51

 

0.55

0.85

 

0.98

______________________

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

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

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

"We are very pleased with the strong result for the second quarter, delivering Adjusted EBITDA growth of 9.7%. This result is due to the dedication and efforts of all our people across the Group.

As we progress through the second half of the year, our performance for the first six months gives us confidence in achieving our targeted Adjusted EBITDA for the full year of at least $350.0 million.”

Group Results - Second Quarter

Revenue increased 4.4%, or $90.3 million, primarily due to strong performance in the Fresh Fruit and Diversified EMEA segments, offset partially by the Diversified Americas segment. On a like-for-like basis3, revenue was 3.8%, or $77.9 million, ahead of prior year.

Adjusted EBITDA increased 9.7%, or $10.9 million, primarily driven by strong Fresh Fruit performance, offset partially by headwinds in the Diversified Americas segment. On a like-for-like basis, Adjusted EBITDA increased 9.2%, or $10.3 million.

Adjusted Net Income decreased $4.1 million, predominantly due to higher interest expense, offset by the increases in Adjusted EBITDA noted above. Adjusted Diluted EPS for the three months ended June 30, 2023 was $0.51 compared to $0.55 in the prior year.

_____________

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

Selected Segmental Financial Information (Unaudited)

 

Three Months Ended

 

June 30, 2023

 

June 30, 2022

 

(U.S. Dollars in thousands)

 

Revenue

 

Adjusted EBITDA

 

Revenue

 

Adjusted EBITDA

Fresh Fruit

$

839,043

 

 

$

65,816

 

$

805,831

 

 

$

56,308

Diversified Fresh Produce - EMEA

 

915,629

 

 

 

42,603

 

 

849,848

 

 

 

38,434

Diversified Fresh Produce - Americas & ROW

 

417,645

 

 

 

14,262

 

 

448,200

 

 

 

17,061

Intersegment

 

(31,143

)

 

 

 

 

(52,970

)

 

 

Total

$

2,141,174

 

 

$

122,681

 

$

2,050,909

 

 

$

111,803

 

Six Months Ended

 

June 30, 2023

 

June 30, 2022

 

(U.S. Dollars in thousands)

 

Revenue

 

Adjusted EBITDA

 

Revenue

 

Adjusted EBITDA

Fresh Fruit

$

1,637,953

 

 

$

135,027

 

$

1,555,634

 

 

$

116,705

Diversified Fresh Produce - EMEA

 

1,713,729

 

 

 

66,009

 

 

1,641,003

 

 

 

57,711

Diversified Fresh Produce - Americas & ROW

 

840,396

 

 

 

22,032

 

 

911,892

 

 

 

29,269

Intersegment

 

(61,737

)

 

 

 

 

(87,389

)

 

 

Total

$

4,130,341

 

 

$

223,068

 

$

4,021,140

 

 

$

203,685

Fresh Fruit

Revenue increased 4.1%, or $33.2 million. Revenue was positively impacted by higher worldwide pricing of bananas and pineapples and worldwide increases in volumes of bananas sold, partially offset by lower volumes of pineapples sold.

Adjusted EBITDA increased 16.9%, or $9.5 million. Adjusted EBITDA was positively impacted by strong revenue performance, partially offset by higher fruit sourcing costs and higher costs of shipping, packaging and handling, as well as by lower commercial cargo activity.

Diversified Fresh Produce – EMEA

Revenue increased 7.7%, or $65.8 million, primarily driven by inflation-justified price increases across the segment and a positive impact from acquisitions of $15.9 million. The impact of foreign currency translation was not material in the quarter. On a like-for-like basis, revenue was 6.0%, or $51.1 million, ahead of prior year.

Adjusted EBITDA increased 10.8%, or $4.2 million, primarily driven by strong performance across the segment, particularly within the Spanish, Dutch, Irish and Czech businesses, as well as by a favorable impact from acquisitions of $0.5 million, partially offset by weaker trading results in the South African business. On a like-for-like basis, Adjusted EBITDA was 10.0%, or $3.8 million, ahead of prior year.

Diversified Fresh Produce – Americas & ROW

Revenue decreased 6.8%, or $30.6 million, primarily driven by lower volumes across the segment, partially offset by continued strong performance for potatoes and onions in North America and inflation-justified price increases across the segment.

Adjusted EBITDA decreased 16.4%, or $2.8 million, primarily due to a challenging quarter for berries, partially offset by strong performance for potatoes and onions, as well as by strong trading results within other commodities.

Capital Expenditures

Capital expenditures for the six months ended June 30, 2023 were $41.0 million, which included investments in farm renovations and ongoing investments in IT, logistics and efficiency projects in our warehouses and processing facilities. This amount also includes $5.4 million of capital expenditures related to discontinued operations.

Net Debt

Net Debt as of June 30, 2023 was $1.0 billion.

Outlook for Fiscal Year 2023 (forward-looking statement)

We are very pleased with the Group’s performance in the first half of the year, delivering $223.0 million of Adjusted EBITDA.

In the first half of 2023, we have seen the benefit of improved logistical efficiencies in several areas, which is helping to bring more stability to our core fruit business. Partially offsetting this benefit has been the anticipated reduction in commercial cargo activity.

As we look out into the second half of the year and towards 2024, there is the potential for disruption in many of the key growing regions in Central and South America due to the onset of El Niño climatic conditions. However, we are monitoring the changing weather patterns closely and believe we are well placed to deal with potential challenges using our diverse sourcing network and due to our advanced farming practices.

While the macro-economic environment remains difficult to predict, in our business we have seen positives such as the strengthening Euro relative to the U.S. Dollar, more open supply chains, and moderation of inflation for certain input costs. However, we do continue to be impacted by higher interest rates and other foreign currency movements.

Overall, taking the above factors into account, we believe our strong first half has put us in an excellent position to deliver a good result for the year and we are now targeting an Adjusted EBITDA for 2023 of at least $350.0 million.

The above outlook includes non-GAAP financial measures. Please refer to the appendix of this release for an explanation and reconciliation of our historical non-GAAP financial measures used in this release to comparable GAAP financial measures.

Dividend

On August 16, 2023, the Board of Directors of Dole plc declared a cash dividend for the second quarter of 2023 of $0.08 per share, payable on October 5, 2023 to shareholders of record on September 14, 2023. A cash dividend of $0.08 per share was paid on July 6, 2023 for the first quarter of 2023.

About Dole plc

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

Webcast and Conference Call Information

Dole plc will host a conference call and simultaneous webcast at 08:00 a.m. Eastern Time today to discuss the second quarter 2023 financial results. The webcast can be accessed at www.doleplc.com/investor-relations.

The conference call can be accessed live by dialing (646) 307-1963 in the US or +353 (1) 582 2023 in Ireland and +44 20 3481 4247 for UK and other international participants. The conference ID is 4317462.

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.

Category: Financial

Appendix

Consolidated Statement of Operations - Unaudited

 

Three Months Ended

 

Six Months Ended

 

June 30, 2023

 

June 30, 2022

 

June 30, 2023

 

June 30, 2022

 

 

 

 

 

 

 

 

 

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

Revenues, net

$

2,141,174

 

 

$

2,050,909

 

 

$

4,130,341

 

 

$

4,021,140

 

Cost of sales

 

(1,944,601

)

 

 

(1,885,400

)

 

 

(3,754,729

)

 

 

(3,703,836

)

Gross profit

 

196,573

 

 

 

165,509

 

 

 

375,612

 

 

 

317,304

 

Selling, marketing, general and administrative expenses

 

(115,667

)

 

 

(110,365

)

 

 

(236,546

)

 

 

(219,909

)

Gain on disposal of businesses

 

 

 

 

 

 

 

 

 

 

242

 

Gain on asset sales

 

10,723

 

 

 

7,926

 

 

 

14,696

 

 

 

8,421

 

Operating income

 

91,629

 

 

 

63,070

 

 

 

153,762

 

 

 

106,058

 

Other income, net

 

1,129

 

 

 

8,102

 

 

 

2,904

 

 

 

10,566

 

Interest income

 

2,640

 

 

 

1,410

 

 

 

4,949

 

 

 

2,994

 

Interest expense

 

(19,748

)

 

 

(10,833

)

 

 

(41,460

)

 

 

(22,449

)

Income from continuing operations before income taxes and equity earnings

 

75,650

 

 

 

61,749

 

 

 

120,155

 

 

 

97,169

 

Income tax expense

 

(16,593

)

 

 

(5,300

)

 

 

(27,587

)

 

 

(12,658

)

Equity method earnings

 

4,688

 

 

 

3,151

 

 

 

6,166

 

 

 

3,728

 

Income from continuing operations

 

63,745

 

 

 

59,600

 

 

 

98,734

 

 

 

88,239

 

Loss from discontinued operations, net of income taxes

 

(11,438

)

 

 

(11,195

)

 

 

(25,944

)

 

 

(36,425

)

Net income

 

52,307

 

 

 

48,405

 

 

 

72,790

 

 

 

51,814

 

Less: Net income attributable to noncontrolling interests

 

(10,032

)

 

 

(7,133

)

 

 

(16,356

)

 

 

(11,936

)

Net income attributable to Dole plc

$

42,275

 

 

$

41,272

 

 

$

56,434

 

 

$

39,878

 

 

 

 

 

 

 

 

 

Income (loss) per share - basic:

 

 

 

 

 

 

 

Continuing operations

$

0.57

 

 

$

0.55

 

 

$

0.86

 

 

$

0.80

 

Discontinued operations

 

(0.12

)

 

 

(0.12

)

 

 

(0.27

)

 

 

(0.38

)

Net income per share attributable to Dole plc - basic

$

0.45

 

 

$

0.43

 

 

$

0.59

 

 

$

0.42

 

 

 

 

 

 

 

 

 

Income (loss) per share - diluted:

 

 

 

 

 

 

 

Continuing operations

$

0.56

 

 

$

0.55

 

 

$

0.86

 

 

$

0.80

 

Discontinued operations

 

(0.12

)

 

 

(0.12

)

 

 

(0.27

)

 

 

(0.38

)

Net income per share attributable to Dole plc - diluted

$

0.44

 

 

$

0.43

 

 

$

0.59

 

 

$

0.42

 

 

 

 

 

 

 

 

 

Weighted-average shares:

 

 

 

 

 

 

 

Basic

 

94,909

 

 

 

94,878

 

 

 

94,904

 

 

 

94,878

 

Diluted

 

95,112

 

 

 

94,913

 

 

 

95,068

 

 

 

94,911

 

 

Consolidated Balance Sheets - Unaudited

 

June 30, 2023

 

December 31, 2022

 

 

 

 

ASSETS

(U.S. Dollars and shares in thousands)

Cash and cash equivalents

$

231,075

 

 

$

228,840

 

Short-term investments

 

5,676

 

 

 

5,367

 

Trade receivables, net of allowances for credit losses of $21,460 and $18,001, respectively

 

627,778

 

 

 

610,384

 

Grower advance receivables, net of allowances for credit losses of $17,018 and $15,817, respectively

 

112,517

 

 

 

106,864

 

Other receivables, net of allowances for credit losses of $13,869 and $14,538, respectively

 

142,167

 

 

 

132,947

 

Inventories, net of allowances of $3,322 and $4,186, respectively

 

352,052

 

 

 

394,150

 

Prepaid expenses

 

53,656

 

 

 

48,995

 

Other current assets

 

33,495

 

 

 

15,034

 

Fresh Vegetables current assets held for sale

 

390,697

 

 

 

62,252

 

Other assets held for sale

 

10,488

 

 

 

645

 

Total current assets

 

1,959,601

 

 

 

1,605,478

 

Long-term investments

 

16,572

 

 

 

16,498

 

Investments in unconsolidated affiliates

 

125,828

 

 

 

124,234

 

Actively marketed property

 

29,393

 

 

 

31,007

 

Property, plant and equipment, net of accumulated depreciation of $401,416 and $375,721, respectively

 

1,100,599

 

 

 

1,116,124

 

Operating lease right-of-use assets

 

322,461

 

 

 

293,658

 

Goodwill

 

502,309

 

 

 

497,453

 

DOLE brand

 

306,280

 

 

 

306,280

 

Other intangible assets, net of accumulated amortization of $127,373 and $120,315, respectively

 

46,226

 

 

 

50,990

 

Fresh Vegetables non-current assets held for sale

 

 

 

 

343,828

 

Other assets

 

139,580

 

 

 

142,180

 

Deferred tax assets, net

 

69,640

 

 

 

64,112

 

Total assets

$

4,618,489

 

 

$

4,591,842

 

LIABILITIES AND EQUITY

 

 

 

Accounts payable

$

650,967

 

 

$

640,620

 

Income taxes payable

 

30,041

 

 

 

11,558

 

Accrued liabilities

 

329,608

 

 

 

381,688

 

Bank overdrafts

 

20,285

 

 

 

8,623

 

Current portion of long-term debt, net

 

268,203

 

 

 

97,435

 

Current maturities of operating leases

 

61,458

 

 

 

57,372

 

Payroll and other tax

 

30,329

 

 

 

27,187

 

Contingent consideration

 

644

 

 

 

1,791

 

Pension and other postretirement benefits

 

16,456

 

 

 

17,287

 

Fresh Vegetables current liabilities held for sale

 

302,129

 

 

 

199,255

 

Dividends payable and other current liabilities

 

32,198

 

 

 

17,698

 

Total current liabilities

 

1,742,318

 

 

 

1,460,514

 

Long-term debt, net

 

930,421

 

 

 

1,127,321

 

Operating leases, less current maturities

 

269,274

 

 

 

246,723

 

Deferred tax liabilities, net

 

119,148

 

 

 

118,403

 

Income taxes payable, less current portion

 

16,921

 

 

 

30,458

 

Contingent consideration, less current portion

 

6,254

 

 

 

5,022

 

Pension and other postretirement benefits, less current portion

 

119,663

 

 

 

124,646

 

Fresh Vegetables non-current liabilities held for sale

 

 

 

 

116,380

 

Other long-term liabilities

 

43,871

 

 

 

43,390

 

Total liabilities

$

3,247,870

 

 

$

3,272,857

 

 

 

 

 

Redeemable noncontrolling interests

 

34,391

 

 

 

32,311

 

Stockholders’ equity:

 

 

 

Common stock — $0.01 par value; 300,000 shares authorized and 94,929 and 94,899 shares outstanding as of June 30, 2023 and December 31, 2022

 

949

 

 

 

949

 

Additional paid-in capital

 

795,059

 

 

 

795,063

 

Retained earnings

 

510,306

 

 

 

469,249

 

Accumulated other comprehensive loss

 

(97,613

)

 

 

(104,133

)

Total equity attributable to Dole plc

 

1,208,701

 

 

 

1,161,128

 

Equity attributable to noncontrolling interests

 

127,527

 

 

 

125,546

 

Total equity

 

1,336,228

 

 

 

1,286,674

 

Total liabilities, redeemable noncontrolling interests and equity

$

4,618,489

 

 

$

4,591,842

 

 

Consolidated Statements of Cash Flows - Unaudited

 

Six Months Ended

 

June 30, 2023

 

June 30, 2022

 

 

 

 

Operating Activities

(U.S. Dollars in thousands)

Net income

$

72,790

 

 

$

51,814

 

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

Depreciation and amortization

 

58,007

 

 

 

64,770

 

Incremental charges on biological assets related to the acquisition of Legacy Dole

 

 

 

 

34,944

 

Net (gain) on sale of assets and asset write-offs

 

(14,696

)

 

 

(8,421

)

Stock-based compensation expense

 

2,768

 

 

 

1,981

 

Equity method earnings

 

(6,166

)

 

 

(3,728

)

Amortization of debt discounts and debt issuance costs

 

3,186

 

 

 

2,953

 

Deferred tax (benefit)

 

(1,057

)

 

 

(9,212

)

Pension and other postretirement benefit plan expense (benefit)

 

3,091

 

 

 

(89

)

Dividends received from equity method investments

 

5,105

 

 

 

4,484

 

Other

 

(2,150

)

 

 

(5,310

)

Changes in operating assets and liabilities:

 

 

 

Receivables, net of allowances

 

(22,828

)

 

 

9,031

 

Inventories

 

55,755

 

 

 

(9,375

)

Accrued and other current and long-term liabilities

 

(79,959

)

 

 

(11,903

)

Net cash provided by operating activities

 

73,846

 

 

 

121,939

 

Investing activities

 

 

 

Sales of assets

 

18,562

 

 

 

26,544

 

Capital expenditures

 

(41,005

)

 

 

(39,418

)

Acquisitions, net of cash acquired

 

(1,685

)

 

 

(4,923

)

Insurance proceeds

 

1,850

 

 

 

2,278

 

Purchases of investments

 

(1,150

)

 

 

(414

)

Sales (purchases) of unconsolidated affiliates

 

1,498

 

 

 

(348

)

Other

 

8

 

 

 

4

 

Net cash used in investing activities

 

(21,922

)

 

 

(16,277

)

Financing activities

 

 

 

Proceeds from borrowings and overdrafts

 

869,701

 

 

 

683,340

 

Repayments on borrowings and overdrafts

 

(889,593

)

 

 

(754,133

)

Payment of debt issuance costs

 

 

 

 

(270

)

Dividends paid to shareholders

 

(15,184

)

 

 

(15,180

)

Dividends paid to noncontrolling interests

 

(16,174

)

 

 

(14,588

)

Other noncontrolling interest activity, net

 

(480

)

 

 

 

Payment of contingent consideration

 

(1,169

)

 

 

(696

)

Net cash used in financing activities

 

(52,899

)

 

 

(101,527

)

Effect of foreign exchange rate changes on cash

 

3,210

 

 

 

(15,906

)

Increase (decrease) in cash and cash equivalents

 

2,235

 

 

 

(11,771

)

Cash and cash equivalents at beginning of period

 

228,840

 

 

 

250,561

 

Cash and cash equivalents at end of period

$

231,075

 

 

$

238,790

 

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, 2023

 

June 30, 2022

 

June 30, 2023

 

June 30, 2022

 

 

 

 

 

 

 

 

 

(U.S. Dollars in thousands)

Net income (Reported GAAP)

$

52,307

 

 

$

48,405

 

 

$

72,790

 

 

$

51,814

 

Loss from discontinued operations, net of income taxes

 

11,438

 

 

 

11,195

 

 

 

25,944

 

 

 

36,425

 

Income from continuing operations (Reported GAAP)

 

63,745

 

 

 

59,600

 

 

 

98,734

 

 

 

88,239

 

Income tax expense

 

16,593

 

 

 

5,300

 

 

 

27,587

 

 

 

12,658

 

Interest expense

 

19,748

 

 

 

10,833

 

 

 

41,460

 

 

 

22,449

 

Mark to market losses (gains)

 

1,035

 

 

 

(6,991

)

 

 

1,857

 

 

 

(8,129

)

(Gain) on asset sales

 

(10,387

)

 

 

(7,816

)

 

 

(14,554

)

 

 

(7,816

)

Incremental charges on biological assets and inventory from the Acquisition

 

 

 

 

17,431

 

 

 

 

 

 

34,944

 

Cyber-related incident

 

571

 

 

 

 

 

 

5,321

 

 

 

 

Other items 4

 

190

 

 

 

116

 

 

 

863

 

 

 

(752

)

Adjustments from equity method investments

 

2,922

 

 

 

2,195

 

 

 

4,245

 

 

 

3,323

 

Adjusted EBIT (Non-GAAP)

 

94,417

 

 

 

80,668

 

 

 

165,513

 

 

 

144,916

 

Depreciation

 

23,142

 

 

 

25,696

 

 

 

47,445

 

 

 

48,229

 

Amortization of intangible assets

 

2,574

 

 

 

2,773

 

 

 

5,190

 

 

 

5,615

 

Depreciation and amortization adjustments from equity method investments

 

2,548

 

 

 

2,666

 

 

 

4,920

 

 

 

4,925

 

Adjusted EBITDA (Non-GAAP)

$

122,681

 

 

$

111,803

 

 

$

223,068

 

 

$

203,685

 

__________________

4 For the three months ended June 30, 2023, other items is comprised of $0.2 million of asset writedowns, net of insurance proceeds. For the three months ended June 30, 2022, other items is comprised of $0.1 million in asset writedowns, net of insurance proceeds. For the six months ended June 30, 2023, other items is comprised of $0.9 million of asset writedowns, net of insurance proceeds. For the six months ended June 30, 2022, other items is comprised of $0.5 million in insurance proceeds, net of asset writedowns and $0.3 million in gains on disposal of a business.

Reconciliation from Net Income attributable to Dole plc shareholders 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, 2023

 

June 30, 2022

 

June 30, 2023

 

June 30, 2022

 

 

 

 

 

 

 

 

 

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

Net income attributable to Dole plc (Reported GAAP)

$

42,275

 

 

$

41,272

 

 

$

56,434

 

 

$

39,878

 

Loss from discontinued operations, net of income taxes

 

11,438

 

 

 

11,195

 

 

 

25,944

 

 

 

36,425

 

Income from continuing operations attributable to Dole plc

 

53,713

 

 

 

52,467

 

 

 

82,378

 

 

 

76,303

 

Adjustments:

 

 

 

 

 

 

 

Amortization of intangible assets

 

2,574

 

 

 

2,773

 

 

 

5,190

 

 

 

5,615

 

Mark to market losses (gains)

 

1,035

 

 

 

(6,991

)

 

 

1,857

 

 

 

(8,129

)

(Gain) on asset sales

 

(10,387

)

 

 

(7,816

)

 

 

(14,554

)

 

 

(7,816

)

Incremental charges on biological assets and inventory from the Acquisition

 

 

 

 

17,431

 

 

 

 

 

 

34,944

 

Cyber-related incident

 

571

 

 

 

 

 

 

5,321

 

 

 

 

Other items 5

 

190

 

 

 

116

 

 

 

863

 

 

 

(752

)

Adjustments from equity method investments

 

623

 

 

 

612

 

 

 

742

 

 

 

1,290

 

Income tax on items above and discrete tax items

 

797

 

 

 

(5,196

)

 

 

488

 

 

 

(7,127

)

NCI impact on items above

 

(736

)

 

 

(953

)

 

 

(1,629

)

 

 

(1,411

)

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

$

48,380

 

 

$

52,443

 

 

$

80,656

 

 

$

92,917

 

 

 

 

 

 

 

 

 

Adjusted earnings per share – basic (Non-GAAP)

$

0.51

 

 

$

0.55

 

 

$

0.85

 

 

$

0.98

 

Adjusted earnings per share – diluted (Non-GAAP)

$

0.51

 

 

$

0.55

 

 

$

0.85

 

 

$

0.98

 

Weighted average shares outstanding – basic

 

94,909

 

 

 

94,878

 

 

 

94,904

 

 

 

94,878

 

Weighted average shares outstanding – diluted

 

95,112

 

 

 

94,913

 

 

 

95,068

 

 

 

94,911

 

_____________________________

5 For the three months ended June 30, 2023, other items is comprised of $0.2 million of asset writedowns, net of insurance proceeds. For the three months ended June 30, 2022, other items is comprised of $0.1 million in asset writedowns, net of insurance proceeds. For the six months ended June 30, 2023, other items is comprised of $0.9 million of asset writedowns, net of insurance proceeds. For the six months ended June 30, 2022, other items is comprised of $0.5 million in insurance proceeds, net of asset writedowns and $0.3 million in gains on disposal of a business.

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

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

 

Three Months Ended 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

charges6

Operating Income

Reported (GAAP)

$

2,141,174

(1,944,601

)

196,573

9.2

%

(115,667

)

10,723

 

$

91,629

 

Loss from discontinued operations, net of income taxes

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

2,574

 

 

 

2,574

 

Mark to market losses (gains)

 

54

 

54

 

 

 

54

 

(Gain) 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

 

 

 

Three Months Ended June 30, 2022

(U.S. Dollars in thousands)

 

Revenues, net

Cost of sales

Gross profit

Gross Margin %

Selling, marketing,

general and

administrative expenses

Other

operating charges7

Operating Income

Reported (GAAP)

$

2,050,909

(1,885,400

)

165,509

 

8.1

%

(110,365

)

7,926

 

$

63,070

 

Loss from discontinued operations, net of income taxes

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

 

2,773

 

 

 

2,773

 

Mark to market losses (gains)

 

(1,269

)

(1,269

)

 

 

 

(1,269

)

(Gain) on asset sales

 

 

 

 

(7,816

)

 

(7,816

)

Incremental charges on biological assets and inventory from the Acquisition

 

17,431

 

17,431

 

 

 

 

17,431

 

Other items

 

116

 

116

 

 

 

 

116

 

Adjustments from equity method investments

 

 

 

 

 

 

 

Income tax on items above and discrete tax items

 

 

 

 

 

 

 

NCI impact on items above

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

2,050,909

(1,869,122

)

181,787

 

8.9

%

(107,592

)

110

 

$

74,305

 

_____________________

6 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 Consolidated Statements of Operations.

7 Other operating charges for the three months ended June 30, 2022 is comprised of gains on asset sales of $7.9 million, as reported on the Dole plc the GAAP Consolidated Statements of Operations.

 

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

Loss from

discontinued operations,

net of income taxes

Reported (GAAP)

$

1,129

2,640

(19,748

)

(16,593

)

4,688

 

63,745

 

$

(11,438

)

Loss from discontinued operations, net of income taxes

 

 

 

 

 

 

11,438

 

Amortization of intangible assets

 

 

 

 

2,574

 

 

 

Mark to market losses (gains)

 

981

 

 

 

1,035

 

 

 

(Gain) 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 on items above

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

2,110

2,640

(19,748

)

(15,715

)

5,230

 

59,148

 

$

 

 

 

Three Months Ended June 30, 2022

(U.S. Dollars in thousands)

 

Other income, net

Interest income

Interest expense

Income tax

expense

Equity method

earnings

Income from

continuing operations

Loss from

discontinued operations,

net of income taxes

Reported (GAAP)

$

8,102

 

1,410

(10,833

)

(5,300

)

3,151

 

59,600

 

$

(11,195

)

Loss from discontinued operations, net of income taxes

 

 

 

 

 

 

 

11,195

 

Amortization of intangible assets

 

 

 

 

 

2,773

 

 

 

Mark to market losses (gains)

 

(5,722

)

 

 

 

(6,991

)

 

 

(Gain) on asset sales

 

 

 

 

 

(7,816

)

 

 

Incremental charges on biological assets and inventory from the Acquisition

 

 

 

 

 

17,431

 

 

 

Other items

 

 

 

 

 

116

 

 

 

Adjustments from equity method investments

 

 

 

 

612

 

612

 

 

 

Income tax on items above and discrete tax items

 

 

 

(5,092

)

(104

)

(5,196

)

 

 

NCI impact on items above

 

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

2,380

 

1,410

(10,833

)

(10,392

)

3,659

 

60,529

 

$

 

 

 

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

Loss from discontinued operations, net of income taxes

 

11,438

 

 

 

 

11,438

 

 

Amortization of intangible assets

 

2,574

 

 

 

 

2,574

 

Mark to market losses (gains)

 

1,035

 

 

 

 

1,035

 

(Gain) 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 on items above

 

 

 

(736

)

 

(736

)

Adjusted (Non-GAAP)

$

59,148

 

$

(10,768

)

$

48,380

 

$

0.51

 

 

 

 

 

Weighted average shares outstanding – diluted

 

95,112

 

 

 

 

 

 

Three Months Ended June 30, 2022

 

(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)

$

48,405

 

$

(7,133

)

$

41,272

 

$

0.43

Loss from discontinued operations, net of income taxes

 

11,195

 

 

 

 

11,195

 

 

Amortization of intangible assets

 

2,773

 

 

 

 

2,773

 

Mark to market losses (gains)

 

(6,991

)

 

 

 

(6,991

)

(Gain) on asset sales

 

(7,816

)

 

 

 

(7,816

)

Incremental charges on biological assets and inventory from the Acquisition

 

17,431

 

 

 

 

17,431

 

Other items

 

116

 

 

 

 

116

 

Adjustments from equity method investments

 

612

 

 

 

 

612

 

Income tax on items above and discrete tax items

 

(5,196

)

 

 

 

(5,196

)

NCI impact on items above

 

 

 

(953

)

 

(953

)

Adjusted (Non-GAAP)

$

60,529

 

$

(8,086

)

$

52,443

 

$

0.55

 

 

 

 

 

Weighted average shares outstanding – diluted

 

94,913

 

 

 

 

 

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, 2023

(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)

$

4,130,341

(3,754,729

)

375,612

 

9.1

%

(236,546

)

14,696

 

$

153,762

 

Loss from discontinued operations, net of income taxes

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

 

5,190

 

 

 

5,190

 

Mark to market losses (gains)

 

(1,336

)

(1,336

)

 

 

 

(1,336

)

(Gain) 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 on items above

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

4,130,341

(3,755,202

)

375,139

 

9.1

%

(226,035

)

142

 

$

149,246

 

 

 

Six Months Ended June 30, 2022

(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)

$

4,021,140

(3,703,836

)

317,304

 

7.9

%

(219,909

)

8,663

 

$

106,058

 

Loss from discontinued operations, net of income taxes

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

 

 

5,615

 

 

 

5,615

 

Mark to market losses (gains)

 

(5,357

)

(5,357

)

 

 

 

(5,357

)

(Gain) on asset sales

 

 

 

 

(7,816

)

 

(7,816

)

Incremental charges on biological assets and inventory from the Acquisition

 

34,944

 

34,944

 

 

 

 

34,944

 

Other items

 

(510

)

(510

)

 

(242

)

 

(752

)

Adjustments from equity method investments

 

 

 

 

 

 

 

Income tax on items above and discrete tax items

 

 

 

 

 

 

 

NCI impact on items above

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

4,021,140

(3,674,759

)

346,381

 

8.6

%

(214,294

)

605

 

$

132,692

 

__________________

8 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 Consolidated Statements of Operations.

9 Other operating charges for the six months ended June 30, 2022 is comprised of gains on asset sales of $8.4 million and a gain on disposal of businesses of $0.2 million, as reported on the Dole plc GAAP Consolidated Statements of Operations.

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

Loss from

discontinued operations,

net of income taxes

Reported (GAAP)

$

2,904

4,949

(41,460

)

(27,587

)

6,166

 

98,734

 

$

(25,944

)

Loss from discontinued operations, net of income taxes

 

 

 

 

 

 

25,944

 

Amortization of intangible assets

 

 

 

 

5,190

 

 

 

Mark to market losses (gains)

 

3,193

 

 

 

1,857

 

 

 

(Gain) 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 on items above

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

6,097

4,949

(41,460

)

(26,937

)

6,746

 

98,641

 

$

 

 

 

Six Months Ended June 30, 2022

(U.S. Dollars in thousands)

 

Other income, net

Interest income

Interest expense

Income tax

expense

Equity method

earnings

Income from

continuing operations

Loss from

discontinued operations,

net of income taxes

Reported (GAAP)

$

10,566

 

2,994

(22,449

)

(12,658

)

3,728

 

88,239

 

$

(36,425

)

Loss from discontinued operations, net of income taxes

 

 

 

 

 

 

 

36,425

 

Amortization of intangible assets

 

 

 

 

 

5,615

 

 

 

Mark to market losses (gains)

 

(2,772

)

 

 

 

(8,129

)

 

 

(Gain) on asset sales

 

 

 

 

 

(7,816

)

 

 

Incremental charges on biological assets and inventory from the Acquisition

 

 

 

 

 

34,944

 

 

 

Other items

 

 

 

 

 

(752

)

 

 

Adjustments from equity method investments

 

 

 

 

1,290

 

1,290

 

 

 

Income tax on items above and discrete tax items

 

 

 

(6,920

)

(207

)

(7,127

)

 

 

NCI impact on items above

 

 

 

 

 

 

 

 

Adjusted (Non-GAAP)

$

7,794

 

2,994

(22,449

)

(19,578

)

4,811

 

106,264

 

$

 

 

 

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

Loss from discontinued operations, net of income taxes

 

25,944

 

 

 

 

25,944

 

 

Amortization of intangible assets

 

5,190

 

 

 

 

5,190

 

Mark to market losses (gains)

 

1,857

 

 

 

 

1,857

 

(Gain) 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 on items above

 

 

 

(1,629

)

 

(1,629

)

Adjusted (Non-GAAP)

$

98,641

 

$

(17,985

)

$

80,656

 

$

0.85

 

 

 

 

 

Weighted average shares outstanding – diluted

 

95,068

 

 

 

 

 

 

Six Months Ended June 30, 2022

 

(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)

$

51,814

 

$

(11,936

)

$

39,878

 

$

0.42

Loss from discontinued operations, net of income taxes

 

36,425

 

 

 

 

36,425

 

 

Amortization of intangible assets

 

5,615

 

 

 

 

5,615

 

Mark to market losses (gains)

 

(8,129

)

 

 

 

(8,129

)

(Gain) on asset sales

 

(7,816

)

 

 

 

(7,816

)

Incremental charges on biological assets and inventory from the Acquisition

 

34,944

 

 

 

 

34,944

 

Other items

 

(752

)

 

 

 

(752

)

Adjustments from equity method investments

 

1,290

 

 

 

 

1,290

 

Income tax on items above and discrete tax items

 

(7,127

)

 

 

 

(7,127

)

NCI impact on items above

 

 

 

(1,411

)

 

(1,411

)

Adjusted (Non-GAAP)

$

106,264

 

$

(13,347

)

$

92,917

 

$

0.98

 

 

 

 

 

Weighted average shares outstanding – diluted

 

94,911

 

 

 

 

 

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

 

Revenue for the Three Months Ended

 

June 30, 2022

 

Impact of Foreign

Currency Translation

 

Impact of Acquisitions

and Divestitures

 

Like-for-like

Increase (Decrease)

 

June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

(U.S. Dollars in thousands)

Fresh Fruit

$

805,831

 

 

$

 

 

$

 

$

33,212

 

 

$

839,043

 

Diversified Fresh Produce - EMEA

 

849,848

 

 

 

(1,201

)

 

 

15,850

 

 

51,132

 

 

 

915,629

 

Diversified Fresh Produce - Americas & ROW

 

448,200

 

 

 

(2,247

)

 

 

 

 

(28,308

)

 

 

417,645

 

Intersegment

 

(52,970

)

 

 

 

 

 

 

 

21,827

 

 

 

(31,143

)

Total

$

2,050,909

 

 

$

(3,448

)

 

$

15,850

 

$

77,863

 

 

$

2,141,174

 

 

 

Adjusted EBITDA for the Three Months Ended

 

June 30, 2022

 

Impact of Foreign

Currency Translation

 

Impact of Acquisitions

and Divestitures

 

Like-for-like

Increase (Decrease)

 

June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

(U.S. Dollars in thousands)

Fresh Fruit

$

56,308

 

$

(100

)

 

$

 

$

9,608

 

 

$

65,816

Diversified Fresh Produce - EMEA

 

38,434

 

 

(173

)

 

 

513

 

 

3,829

 

 

 

42,603

Diversified Fresh Produce - Americas & ROW

 

17,061

 

 

(99

)

 

 

438

 

 

(3,138

)

 

 

14,262

Total

$

111,803

 

$

(372

)

 

$

951

 

$

10,299

 

 

$

122,681

 

Revenue for the Six Months Ended

 

June 30, 2022

 

Impact of Foreign

Currency Translation

 

Impact of Acquisitions

and Divestitures

 

Like-for-like

Increase (Decrease)

 

June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

(U.S. Dollars in thousands)

Fresh Fruit

$

1,555,634

 

 

$

 

 

$

 

$

82,319

 

 

$

1,637,953

 

Diversified Fresh Produce - EMEA

 

1,641,003

 

 

 

(54,561

)

 

 

18,102

 

 

109,185

 

 

 

1,713,729

 

Diversified Fresh Produce - Americas & ROW

 

911,892

 

 

 

(5,033

)

 

 

 

 

(66,463

)

 

 

840,396

 

Intersegment

 

(87,389

)

 

 

 

 

 

 

 

25,652

 

 

 

(61,737

)

Total

$

4,021,140

 

 

$

(59,594

)

 

$

18,102

 

$

150,693

 

 

$

4,130,341

 

 

 

Adjusted EBITDA for the Six Months Ended

 

June 30, 2022

 

Impact of Foreign

Currency Translation

 

Impact of Acquisitions

and Divestitures

 

Like-for-like

Increase (Decrease)

 

June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

(U.S. Dollars in thousands)

Fresh Fruit

$

116,705

 

$

45

 

 

$

 

$

18,277

 

 

$

135,027

Diversified Fresh Produce - EMEA

 

57,711

 

 

(1,801

)

 

 

1,271

 

 

8,828

 

 

 

66,009

Diversified Fresh Produce - Americas & ROW

 

29,269

 

 

(130

)

 

 

566

 

 

(7,673

)

 

 

22,032

Total

$

203,685

 

$

(1,886

)

 

$

1,837

 

$

19,432

 

 

$

223,068

 

 

 

 

 

 

 

 

 

 

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, 2023 is presented below. Net Debt as of June 30, 2023 was $1.0 billion.

 

June 30, 2023

 

December 31, 2022

 

 

 

 

 

(U.S. Dollars in thousands)

Cash and cash equivalents (Reported GAAP)

 

231,075

 

 

 

228,840

 

Debt (Reported GAAP):

 

 

 

Long-term debt, net

 

(930,421

)

 

 

(1,127,321

)

Current maturities

 

(268,203

)

 

 

(97,435

)

Bank overdrafts

 

(20,285

)

 

 

(8,623

)

Total debt, net

 

(1,218,909

)

 

 

(1,233,379

)

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

 

(16,125

)

 

 

(17,874

)

Total gross debt

 

(1,235,034

)

 

 

(1,251,253

)

Net Debt (Non-GAAP)

$

(1,003,959

)

 

$

(1,022,413

)

Supplemental Consolidated Income Statement by Quarter - for the Year Ended December 31, 2022 - Unaudited

 

Three Months Ended

 

Year Ended

 

March 31,

2022

 

June 30,

2022

 

September 30,

2022

 

December 31,

2022

 

December 31,

2022

 

 

 

 

 

 

 

 

 

 

 

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

Revenues, net

$

1,970,231

 

 

$

2,050,909

 

 

$

1,960,695

 

 

$

2,042,568

 

 

$

8,024,403

 

Cost of sales

 

(1,818,436

)

 

 

(1,885,400

)

 

 

(1,829,233

)

 

 

(1,891,456

)

 

 

(7,424,525

)

Gross profit

 

151,795

 

 

 

165,509

 

 

 

131,462

 

 

 

151,112

 

 

 

599,878

 

Selling, marketing, general and administrative expenses

 

(109,544

)

 

 

(110,365

)

 

 

(103,349

)

 

 

(112,934

)

 

 

(436,192

)

Gain (loss) on disposal of businesses

 

242

 

 

 

 

 

 

 

 

 

(50

)

 

 

192

 

Impairment of property, plant and equipment

 

 

 

 

 

 

 

 

 

 

(397

)

 

 

(397

)

Gain on asset sales

 

495

 

 

 

7,926

 

 

 

767

 

 

 

2,596

 

 

 

11,784

 

Operating income

 

42,988

 

 

 

63,070

 

 

 

28,880

 

 

 

40,327

 

 

 

175,265

 

Other income (expense), net

 

2,464

 

 

 

8,102

 

 

 

9,199

 

 

 

(9,165

)

 

 

10,600

 

Interest income

 

1,584

 

 

 

1,410

 

 

 

1,427

 

 

 

1,986

 

 

 

6,407

 

Interest expense

 

(11,616

)

 

 

(10,833

)

 

 

(15,677

)

 

 

(18,245

)

 

 

(56,371

)

Income from continuing operations before income taxes and equity earnings

 

35,420

 

 

 

61,749

 

 

 

23,829

 

 

 

14,903

 

 

 

135,901

 

Income tax (expense) benefit

 

(7,358

)

 

 

(5,300

)

 

 

34,155

 

 

 

4,106

 

 

 

25,603

 

Equity method earnings

 

577

 

 

 

3,151

 

 

 

300

 

 

 

2,698

 

 

 

6,726

 

Income from continuing operations

 

28,639

 

 

 

59,600

 

 

 

58,284

 

 

 

21,707

 

 

 

168,230

 

Loss from discontinued operations, net of income taxes

 

(25,230

)

 

 

(11,195

)

 

 

(11,704

)

 

 

(8,318

)

 

 

(56,447

)

Net income

 

3,409

 

 

 

48,405

 

 

 

46,580

 

 

 

13,389

 

 

 

111,783

 

Less: Net income attributable to noncontrolling interests

 

(4,803

)

 

 

(7,133

)

 

 

(6,743

)

 

 

(6,608

)

 

 

(25,287

)

Net (loss) income attributable to Dole plc

$

(1,394

)

 

$

41,272

 

 

$

39,837

 

 

$

6,781

 

 

$

86,496

 

 

 

 

 

 

 

 

 

 

 

Income (loss) per share - basic:

 

 

 

 

 

 

 

 

 

Continuing operations

$

0.26

 

 

$

0.55

 

 

$

0.54

 

 

$

0.16

 

 

$

1.51

 

Discontinued operations

 

(0.27

)

 

 

(0.12

)

 

 

(0.12

)

 

 

(0.09

)

 

 

(0.60

)

Net income (loss) per share attributable to Dole plc - basic

$

(0.01

)

 

$

0.43

 

 

$

0.42

 

 

$

0.07

 

 

$

0.91

 

 

 

 

 

 

 

 

 

 

 

Income (loss) per share - diluted:

 

 

 

 

 

 

 

 

 

Continuing operations

$

0.26

 

 

$

0.55

 

 

$

0.54

 

 

$

0.16

 

 

$

1.51

 

Discontinued operations

 

(0.27

)

 

 

(0.12

)

 

 

(0.12

)

 

 

(0.09

)

 

 

(0.60

)

Net income (loss) per share attributable to Dole plc - diluted

$

(0.01

)

 

$

0.43

 

 

$

0.42

 

 

$

0.07

 

 

$

0.91

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares:

 

 

 

 

 

 

 

 

 

Basic

 

94,878

 

 

 

94,878

 

 

 

94,891

 

 

 

94,899

 

 

 

94,886

 

Diluted

 

94,909

 

 

 

94,913

 

 

 

94,908

 

 

 

94,928

 

 

 

94,914

 

 

Supplemental Reconciliation from Net Income to Adjusted EBITDA by Quarter - for the Year Ended December 31, 2022 - Unaudited

 

Three Months Ended

 

Year Ended

 

March 31,

2022

 

June 30,

2022

 

September 30,

2022

 

December 31,

2022

 

December 31,

2022

 

 

 

 

 

 

 

 

 

 

 

(U.S. Dollars in thousands)

Net income (Reported GAAP)

$

3,409

 

 

$

48,405

 

 

$

46,580

 

 

$

13,389

 

 

$

111,783

 

Loss from discontinued operations, net of income taxes

 

25,230

 

 

 

11,195

 

 

 

11,704

 

 

 

8,318

 

 

 

56,447

 

Income from continuing operations (Reported GAAP)

 

28,639

 

 

 

59,600

 

 

 

58,284

 

 

 

21,707

 

 

 

168,230

 

Income tax expense (benefit)

 

7,358

 

 

 

5,300

 

 

 

(34,155

)

 

 

(4,106

)

 

 

(25,603

)

Interest expense

 

11,616

 

 

 

10,833

 

 

 

15,677

 

 

 

18,245

 

 

 

56,371

 

Mark to market losses (gains)

 

(1,138

)

 

 

(6,991

)

 

 

2,310

 

 

 

8,868

 

 

 

3,049

 

(Gain) on asset sales

 

 

 

 

(7,816

)

 

 

(530

)

 

 

(1,970

)

 

 

(10,316

)

Impairment on property, plant and equipment

 

 

 

 

 

 

 

 

 

 

397

 

 

 

397

 

Incremental charges on biological assets and inventory from the Acquisition

 

17,513

 

 

 

17,431

 

 

 

5,520

 

 

 

681

 

 

 

41,145

 

Other items

 

(868

)

 

 

116

 

 

 

(532

)

 

 

656

 

 

 

(628

)

Adjustments from equity method investments

 

1,128

 

 

 

2,195

 

 

 

1,603

 

 

 

2,614

 

 

 

7,540

 

Adjusted EBIT (Non-GAAP)

 

64,248

 

 

 

80,668

 

 

 

48,177

 

 

 

47,092

 

 

 

240,185

 

Depreciation

 

22,533

 

 

 

25,696

 

 

 

25,315

 

 

 

25,159

 

 

 

98,703

 

Amortization of intangible assets

 

2,842

 

 

 

2,773

 

 

 

2,633

 

 

 

2,645

 

 

 

10,893

 

Depreciation and amortization adjustments from equity method investments

 

2,260

 

 

 

2,666

 

 

 

3,073

 

 

 

2,616

 

 

 

10,615

 

Adjusted EBITDA (Non-GAAP)

$

91,883

 

 

$

111,803

 

 

$

79,198

 

 

$

77,512

 

 

$

360,396

 

 

Supplemental Reconciliation from Net Income attributable to Dole plc shareholders to Adjusted Net Income by Quarter - for the Year Ended December 31, 2022 - Unaudited

 

Three Months Ended

 

Year Ended

 

March 31,

2022

 

June 30,

2022

 

September 30,

2022

 

December 31,

2022

 

December 31,

2022

 

 

 

 

 

 

 

 

 

 

 

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

Net income (loss) attributable to Dole plc (Reported GAAP)

$

(1,394

)

 

$

41,272

 

 

$

39,837

 

 

$

6,781

 

 

$

86,496

 

Loss from discontinued operations, net of income taxes

 

25,230

 

 

 

11,195

 

 

 

11,704

 

 

 

8,318

 

 

 

56,447

 

Income from continuing operations attributable to Dole plc

 

23,836

 

 

 

52,467

 

 

 

51,541

 

 

 

15,099

 

 

 

142,943

 

Adjustments:

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

2,842

 

 

 

2,773

 

 

 

2,633

 

 

 

2,645

 

 

 

10,893

 

Mark to market (gains) losses

 

(1,138

)

 

 

(6,991

)

 

 

2,310

 

 

 

8,868

 

 

 

3,049

 

(Gain) on asset sales

 

 

 

 

(7,816

)

 

 

(530

)

 

 

(1,970

)

 

 

(10,316

)

Incremental charges on biological assets and inventory from the Acquisition

 

17,513

 

 

 

17,431

 

 

 

5,520

 

 

 

681

 

 

 

41,145

 

Other items

 

(868

)

 

 

116

 

 

 

(532

)

 

 

1,053

 

 

 

(231

)

Adjustments from equity method investments

 

678

 

 

 

612

 

 

 

628

 

 

 

662

 

 

 

2,580

 

Income tax on items above and discrete tax items

 

(1,931

)

 

 

(5,196

)

 

 

(34,501

)

 

 

(8,876

)

 

 

(50,504

)

NCI impact on items above

 

(458

)

 

 

(953

)

 

 

(878

)

 

 

(898

)

 

 

(3,187

)

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

$

40,474

 

 

$

52,443

 

 

$

26,191

 

 

$

17,264

 

 

$

136,372

 

 

 

 

 

 

 

 

 

 

 

Adjusted earnings per share – basic (Non-GAAP)

$

0.43

 

 

$

0.55

 

 

$

0.28

 

 

$

0.18

 

 

$

1.44

 

Adjusted earnings per share – diluted (Non-GAAP)

$

0.43

 

 

$

0.55

 

 

$

0.28

 

 

$

0.18

 

 

$

1.44

 

Weighted average shares outstanding – basic

 

94,878

 

 

 

94,878

 

 

 

94,891

 

 

 

94,899

 

 

 

94,886

 

Weighted average shares outstanding – diluted

 

94,909

 

 

 

94,913

 

 

 

94,908

 

 

 

94,928

 

 

 

94,914

 

 

Supplemental Selected Segmental Financial Information by Quarter - for the Year Ended December 31, 2022 - Unaudited

Revenue by Segment:

 

Three Months Ended

 

Year Ended

 

March 31,

2022

 

June 30,

2022

 

September 30,

2022

 

December 31,

2022

 

December 31,

2022

 

 

 

 

 

 

 

 

 

 

 

(U.S. Dollars in thousands)

Fresh Fruit

$

749,803

 

 

$

805,831

 

 

$

751,348

 

 

$

740,167

 

 

$

3,047,149

 

Diversified Fresh Produce - EMEA

 

791,155

 

 

 

849,848

 

 

 

759,964

 

 

 

751,594

 

 

 

3,152,561

 

Diversified Fresh Produce - Americas & ROW

 

463,692

 

 

 

448,200

 

 

 

479,839

 

 

 

573,936

 

 

 

1,965,667

 

Intersegment

 

(34,419

)

 

 

(52,970

)

 

 

(30,456

)

 

 

(23,129

)

 

 

(140,974

)

Total

$

1,970,231

 

 

$

2,050,909

 

 

$

1,960,695

 

 

$

2,042,568

 

 

$

8,024,403

 

 

Adjusted EBITDA by Segment:

 

Three Months Ended

 

Year Ended

 

March 31,

2022

 

June 30,

2022

 

September 30,

2022

 

December 31,

2022

 

December 31,

2022

 

 

 

 

 

 

 

 

 

 

 

(U.S. Dollars in thousands)

Fresh Fruit

$

60,397

 

$

56,308

 

$

49,382

 

 

$

39,460

 

$

205,547

Diversified Fresh Produce - EMEA

 

19,277

 

 

38,434

 

 

30,686

 

 

 

22,656

 

 

111,053

Diversified Fresh Produce - Americas & ROW

 

12,209

 

 

17,061

 

 

(870

)

 

 

15,396

 

 

43,796

Total

$

91,883

 

$

111,803

 

$

79,198

 

 

$

77,512

 

$

360,396

Non-GAAP Financial Measures

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

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

Adjusted EBIT is calculated from GAAP net income by: (1) adding the loss from discontinued operations, net of income taxes; (2) adding the income tax expense or subtracting the income tax benefit; (3) adding interest expense; (4) adding mark to market losses or subtracting mark to market gains related to unrealized impacts from derivative instruments and foreign currency denominated borrowings, realized impacts on noncash settled foreign currency denominated borrowings, net foreign currency impacts on liquidated entities and fair value movements on contingent consideration; (5) other items which are separately stated based on materiality, which during the three and six months ended June 30, 2023 and June 30, 2022, included adding or subtracting asset write-downs from extraordinary events, net of insurance proceeds, subtracting the gain or adding the loss on the disposal of business interests, adding the incremental costs from the fair value uplift for biological assets and inventory related to the acquisition of Legacy Dole, subtracting the gain or adding the loss on the sale of investments accounted for under the equity method, subtracting the gain or adding the loss on asset sales for assets held for sale and actively marketed property and adding costs incurred for the cyber-related incident; and (6) the Company’s share of these items from equity method investments.

Adjusted EBITDA is calculated from GAAP net income by: (1) adding the loss from discontinued operations, net of income taxes; (2) adding the income tax expense or subtracting the income tax benefit; (3) adding interest expense; (4) adding depreciation charges; (5) adding amortization charges on intangible assets; (6) adding mark to market losses or subtracting mark to market gains related to unrealized impacts from derivative instruments and foreign currency denominated borrowings, realized impacts on noncash settled foreign currency denominated borrowings, net foreign currency impacts on liquidated entities and fair value movements on contingent consideration; (7) other items which are separately stated based on materiality, which during the three and six months ended June 30, 2023 and June 30, 2022, included adding or subtracting asset write-downs from extraordinary events, net of insurance proceeds, subtracting the gain or adding the loss on the disposal of business interests, adding the incremental costs from the fair value uplift for biological assets and inventory related to the acquisition of Legacy Dole, subtracting the gain or adding the loss on the sale of investments accounted for under the equity method, subtracting the gain or adding the loss on asset sales for assets held for sale and actively marketed property and adding costs incurred for the cyber-related incident; and (8) the Company’s share of these items from equity method investments.

Adjusted Net Income is calculated from GAAP net income attributable to Dole plc by: (1) adding the loss from discontinued operations, net of income taxes; (2) adding amortization charges on intangible assets; (3) adding mark to market losses or subtracting mark to market gains related to unrealized impacts from derivative instruments and foreign currency denominated borrowings, realized impacts on noncash settled foreign currency denominated borrowings, net foreign currency impacts on liquidated entities and fair value movements on contingent consideration; (4) other items which are separately stated based on materiality, which during the three and six months ended June 30, 2023 and June 30, 2022, included adding or subtracting asset write-downs from extraordinary events, net of insurance proceeds, subtracting the gain or adding the loss on the disposal of business interests, adding the incremental costs from the fair value uplift for biological assets and inventory related to the acquisition of Legacy Dole, subtracting the gain or adding the loss on the sale of investments accounted for under the equity method, subtracting the gain or adding the loss on asset sales for assets held for sale and actively marketed property 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 debt discounts and debt issuance costs.

Dole is not able to provide a reconciliation for projected FY'23 results without taking unreasonable efforts.

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