Dole plc Reports Third Quarter 2024 Financial Results

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Nov 13, 2024

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

Highlights for the three months ended September 30, 2024:

  • Positive third quarter performance, positioning the Company to deliver a strong full year result for 2024
  • Revenue of $2.1 billion, an increase of 1.0%. On a like-for-like basis1, revenue increased 5.8%
  • Net Income decreased to $21.5 million, primarily due to the benefit of an exceptional $28.8 million gain on sale of a non-core asset recorded in the prior period
  • Adjusted EBITDA2 of $82.1 million, a decrease of 3.7%. On a like-for-like basis, Adjusted EBITDA increased 2.3%
  • Adjusted Net Income of $18.0 million and Adjusted Diluted EPS of $0.19
  • Increasing full year Adjusted EBITDA guidance by $10.0 million. Targeting Adjusted EBITDA of at least $380.0 million for the full year

Financial Highlights - Unaudited

Three Months Ended

Nine Months Ended

September 30, 2024

September 30, 2023

September 30, 2024

September 30, 2023

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

Revenue

2,062

2,043

6,308

6,173

Income from continuing operations3

15.1

55.7

142.7

154.4

Net Income

21.5

54.0

175.0

126.8

Net Income attributable to Dole plc

14.4

45.3

164.7

101.7

Diluted EPS from continuing operations

0.08

0.50

1.39

1.36

Diluted EPS

0.15

0.48

1.73

1.07

Adjusted EBITDA2

82.1

85.2

317.6

308.3

Adjusted Net Income2

18.0

22.6

105.6

103.2

Adjusted Diluted EPS2

0.19

0.24

1.11

1.09

______________

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 deliver another positive result for the third quarter of 2024, continuing the good momentum we have built over the course of this year, with Adjusted EBITDA increasing 2.3% to $82.1 million on a like-for-like basis.

Our performance over the first nine months positions us well to deliver a strong result for the full year. Today, we are pleased to raise our full year Adjusted EBITDA target by $10.0 million to at least $380.0 million.”

Group Results - Third Quarter

Revenue increased 1.0%, or $19.7 million primarily due to positive operational performance across all segments and a $12.7 million net favorable impact of foreign currency translation, offset partially due to a net negative impact from acquisitions and divestitures of $110.9 million. On a like-for-like basis, revenue was 5.8%, or $117.9 million, ahead of prior year.

Net Income decreased 60.1%, or $32.5 million, primarily due to the benefit of an exceptional $28.8 million gain on sale of a non-core asset recorded in the prior period. There was also a decrease of other income of $9.3 million, primarily related to fair value adjustments of financial instruments.

Adjusted EBITDA decreased 3.7%, or $3.1 million, primarily driven by decreases in the Fresh Fruit and Diversified Fresh Produce - EMEA segments, partially offset by strong performance in the Diversified Fresh Produce - Americas & ROW segment. On a like-for-like basis, Adjusted EBITDA increased 2.3%, or $1.9 million.

Adjusted Net Income decreased $4.5 million, predominantly due to the decreases in Adjusted EBITDA noted above as well as higher income tax expense, offset partially by lower interest expense. Adjusted Diluted EPS for the three months ended September 30, 2024 was $0.19 compared to $0.24 in the prior year.

Selected Segmental Financial Information (Unaudited)

Three Months Ended

September 30, 2024

September 30, 2023

(U.S. Dollars in thousands)

Revenue

Adjusted EBITDA

Revenue

Adjusted EBITDA

Fresh Fruit

$

798,781

$

42,904

$

749,210

$

45,111

Diversified Fresh Produce - EMEA

899,639

30,363

856,351

34,923

Diversified Fresh Produce - Americas & ROW

390,057

8,805

470,011

5,159

Intersegment

(26,063

)

—

(32,900

)

—

Total

$

2,062,414

$

82,072

$

2,042,672

$

85,193

Nine Months Ended

September 30, 2024

September 30, 2023

(U.S. Dollars in thousands)

Revenue

Adjusted EBITDA

Revenue

Adjusted EBITDA

Fresh Fruit

$

2,474,461

$

182,958

$

2,387,163

$

180,138

Diversified Fresh Produce - EMEA

2,698,088

99,017

2,570,080

100,932

Diversified Fresh Produce - Americas & ROW

1,222,996

35,617

1,310,407

27,191

Intersegment

(87,666

)

—

(94,637

)

—

Total

$

6,307,879

$

317,592

$

6,173,013

$

308,261

Fresh Fruit

Revenue increased 6.6%, or $49.6 million, primarily due to higher worldwide volumes of bananas sold, as well as higher worldwide pricing of bananas and pineapples, partially offset by lower worldwide volumes for pineapples and lower pricing and volume for plantains.

Adjusted EBITDA decreased 4.9%, or $2.2 million, primarily driven by higher shipping costs in the North American market due to scheduled dry dockings as well as lower volumes of pineapples sold and lower commercial cargo profitability, partially offset by higher volumes of bananas sold and higher pricing for bananas and pineapples.

Diversified Fresh Produce – EMEA

Revenue increased 5.1%, or $43.3 million, primarily due to strong performance in Ireland, the U.K. and the Netherlands There was also a favorable impact from foreign currency translation of $13.6 million and an incremental positive impact from acquisitions of $1.8 million. On a like-for-like basis, revenue was 3.3%, or $27.9 million, ahead of prior year.

Adjusted EBITDA decreased 13.1%, or $4.6 million, primarily due to a decrease in the U.K. due to higher one-off IT charges and the impact of lower supply of certain categories and seasonal timing differences in Spain and South Africa. On a like-for-like basis, Adjusted EBITDA was 14.5%, or $5.1 million, behind the prior year.

Diversified Fresh Produce – Americas & ROW

Revenue decreased 17.0%, or $80.0 million, primarily due to the disposal of the Progressive Produce business in mid-March 2024. On a like-for-like basis, revenue was 7.2%, or $33.6 million, ahead of the prior year, primarily due to volume and pricing growth in most commodities in North America.

Adjusted EBITDA increased 70.7%, or $3.6 million, primarily driven by improved performance in our North America berries business and positive margin development in avocados, as well as revenue growth across most commodities in North America. These positive impacts were primarily offset by the disposal of the Progressive Produce business. On a like-for-like basis, Adjusted EBITDA was 178.1%, or $9.2 million, ahead of the prior year.

Capital Expenditures

Cash capital expenditures from continuing operations for the nine months ended September 30, 2024 were $56.8 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 $48.7 million for the nine months ended September 30, 2024. These additions were primarily related to $41.1 million of investments in two vessels during the three months ended September 30, 2024 that we had previously chartered and now have committed to purchase.

Free Cash Flow from Continuing Operations and Net Debt

Free cash flow from continuing operations was $49.5 million for the nine months ended September 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 September 30, 2024 was $732.0 million.

Outlook for Fiscal Year 2024 (forward-looking statement)

We are pleased to have delivered another robust performance in the third quarter putting us in an excellent position to deliver a strong result for the full year.

As we move towards the end of the year, we are raising our full year adjusted EBITDA target by $10.0 million to at least $380.0 million for 2024.

Following our strategic decision to bring two additional vessels into our shipping fleet, we now expect total capital expenditure from continuing operations, including additions by finance lease, to be in the range of $130.0 million to $140.0 million for financial year 2024.

Additionally, as our debt levels and market interest rates have reduced, we now expect our full year interest expense, including discontinued operations, to be approximately $75.0 million for financial year 2024.

Dividend

On November 12, 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 January 3, 2025 to shareholders of record on December 11, 2024. A cash dividend of $0.08 per share was paid on October 3, 2024 for the first second 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 third 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/Q4I37635213. The conference ID is 37635.

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

Nine Months Ended

September 30, 2024

September 30, 2023

September 30, 2024

September 30, 2023

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

Revenues, net

$

2,062,414

$

2,042,672

$

6,307,879

$

6,173,013

Cost of sales

(1,898,375

)

(1,876,292

)

(5,748,577

)

(5,631,021

)

Gross profit

164,039

166,380

559,302

541,992

Selling, marketing, general and administrative expenses

(115,829

)

(118,023

)

(351,383

)

(354,569

)

Gain on disposal of business

—

—

75,945

—

Gain on asset sales

1,573

28,746

1,901

43,442

Impairment of goodwill

—

—

(36,684

)

—

Impairment and asset write-downs of property, plant and equipment

(2,049

)

—

(3,326

)

—

Operating income

47,734

77,103

245,755

230,865

Other (expense) income, net

(4,541

)

4,817

9,458

7,721

Interest income

2,632

2,311

8,335

7,260

Interest expense

(17,473

)

(20,899

)

(54,209

)

(62,359

)

Income from continuing operations before income taxes and equity earnings

28,352

63,332

209,339

183,487

Income tax expense

(15,524

)

(13,017

)

(75,385

)

(40,604

)

Equity method earnings

2,303

5,342

8,711

11,508

Income from continuing operations

15,131

55,657

142,665

154,391

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

6,384

(1,672

)

32,351

(27,616

)

Net income

21,515

53,985

175,016

126,775

Net income attributable to noncontrolling interests

(7,113

)

(8,693

)

(10,354

)

(25,049

)

Net income attributable to Dole plc

$

14,402

$

45,292

$

164,662

$

101,726

Income (loss) per share - basic:

Continuing operations

$

0.08

$

0.50

$

1.39

$

1.36

Discontinued operations

0.07

(0.02

)

0.34

(0.29

)

Net income per share attributable to Dole plc - basic

$

0.15

$

0.48

$

1.73

$

1.07

Income (loss) per share - diluted:

Continuing operations

$

0.08

$

0.50

$

1.39

$

1.36

Discontinued operations

0.07

(0.02

)

0.34

(0.29

)

Net income per share attributable to Dole plc - diluted

$

0.15

$

0.48

$

1.73

$

1.07

Weighted-average shares:

Basic

94,990

94,929

94,950

94,912

Diluted

95,614

95,148

95,395

95,094

Condensed Consolidated Statements of Cash Flows - Unaudited

Nine Months Ended

September 30, 2024

September 30, 2023

Operating Activities

(U.S. Dollars in thousands)

Net income

$

175,016

$

126,775

(Income) loss from discontinued operations, net of taxes

(32,351

)

27,616

Income from continuing operations

142,665

154,391

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

Depreciation and amortization

72,632

76,908

Impairment of goodwill

36,684

—

Impairment and asset write-downs of property, plant and equipment

3,326

—

Net gain on sale of assets and asset write-offs

(1,901

)

(43,506

)

Net gain on sale of business

(75,945

)

—

Net gain on financial instruments

(723

)

(2,043

)

Stock-based compensation expense

6,090

4,381

Equity method earnings

(8,711

)

(11,508

)

Amortization of debt discounts and debt issuance costs

6,255

4,788

Deferred tax benefit

(12,353

)

(11,747

)

Pension and other postretirement benefit plan expense

1,982

4,160

Dividends received from equity method investments

4,994

6,350

Other

178

(4,075

)

Changes in operating assets and liabilities:

Receivables, net of allowances

(89,014

)

13,858

Inventories

(9,136

)

26,642

Prepaids, other current assets and other assets

(4,032

)

(25

)

Accounts payable, accrued liabilities and other liabilities

33,255

(61,440

)

Net cash provided by operating activities - continuing operations

106,246

157,134

Investing activities

Sales of assets

2,825

64,103

Capital expenditures

(56,788

)

(51,334

)

Proceeds from sale of business, net of transaction costs

117,735

—

Insurance proceeds

527

1,850

Purchases of investments

(262

)

(1,153

)

(Purchases) sales of unconsolidated affiliates

(504

)

1,498

Acquisitions, net of cash acquired

(930

)

(262

)

Other

(1,908

)

(127

)

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

60,695

14,575

Financing activities

Proceeds from borrowings and overdrafts

1,273,561

1,190,596

Repayments on borrowings and overdrafts

(1,425,422

)

(1,300,083

)

Dividends paid to shareholders

(22,899

)

(22,873

)

Dividends paid to noncontrolling interests

(23,157

)

(24,824

)

Other noncontrolling interest activity, net

78

(482

)

Payment of contingent consideration

(996

)

(1,169

)

Net cash (used in) financing activities - continuing operations

(198,835

)

(158,835

)

Effect of foreign exchange rate changes on cash

1,613

(1,716

)

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

23,397

(15,772

)

Net cash used in investing activities - discontinued operations

(6,139

)

(6,703

)

Cash provided by discontinued operations, net

17,258

(22,475

)

Decrease in cash and cash equivalents

(13,023

)

(11,317

)

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

$

263,982

$

217,523

Supplemental cash flow information:

Income tax payments, net of refunds

$

(62,743

)

$

(49,142

)

Interest payments on borrowings

$

(50,376

)

$

(62,771

)

Condensed Consolidated Balance Sheets - Unaudited

September 30, 2024

December 31, 2023

ASSETS

(U.S. Dollars and shares in thousands)

Cash and cash equivalents

$

260,588

$

275,580

Short-term investments

5,794

5,899

Trade receivables, net of allowances for credit losses of $21,619 and $18,360, respectively

561,737

538,177

Grower advance receivables, net of allowances for credit losses of $21,025 and $19,839, respectively

131,708

109,958

Other receivables, net of allowances for credit losses of $12,944 and $13,227, respectively

117,223

117,069

Inventories, net of allowances of $4,786 and $4,792, respectively

377,989

378,592

Prepaid expenses

63,554

61,724

Other current assets

15,883

17,401

Fresh Vegetables current assets held for sale

423,743

414,457

Other assets held for sale

1,654

1,832

Total current assets

1,959,873

1,920,689

Long-term investments

15,661

15,970

Investments in unconsolidated affiliates

136,122

131,704

Actively marketed property

13,781

13,781

Property, plant and equipment, net of accumulated depreciation of $506,521 and $444,775, respectively

1,125,511

1,102,234

Operating lease right-of-use assets

319,730

340,458

Goodwill

441,792

513,312

DOLE brand

306,280

306,280

Other intangible assets, net of accumulated amortization of $124,349 and $134,420, respectively

27,216

41,232

Other assets

100,913

109,048

Deferred tax assets, net

69,475

66,485

Total assets

$

4,516,354

$

4,561,193

LIABILITIES AND EQUITY

Accounts payable

$

641,543

$

670,904

Income taxes payable

66,495

22,917

Accrued liabilities

388,157

357,427

Bank overdrafts

16,451

11,488

Current portion of long-term debt, net

87,023

222,940

Current maturities of operating leases

62,597

63,653

Payroll and other tax

22,094

27,791

Contingent consideration

1,037

1,788

Pension and other postretirement benefits

15,466

16,570

Fresh Vegetables current liabilities held for sale

269,879

291,342

Dividends payable and other current liabilities

14,738

29,892

Total current liabilities

1,585,480

1,716,712

Long-term debt, net

878,785

845,013

Operating leases, less current maturities

262,681

287,991

Deferred tax liabilities, net

79,956

92,653

Income taxes payable, less current portion

—

16,664

Contingent consideration, less current portion

7,725

7,327

Pension and other postretirement benefits, less current portion

113,718

121,689

Other long-term liabilities

52,962

52,295

Total liabilities

2,981,307

3,140,344

Redeemable noncontrolling interests

34,790

34,185

Stockholders’ equity:

Common stock — $0.01 par value; 300,000 shares authorized; 95,012 and 94,929 shares outstanding as of September 30, 2024 and December 31, 2023

950

949

Additional paid-in capital

801,919

796,800

Retained earnings

704,047

562,562

Accumulated other comprehensive loss

(117,000

)

(110,791

)

Total equity attributable to Dole plc

1,389,916

1,249,520

Equity attributable to noncontrolling interests

110,341

137,144

Total equity

1,500,257

1,386,664

Total liabilities, redeemable noncontrolling interests and equity

$

4,516,354

$

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

Nine Months Ended

September 30, 2024

September 30, 2023

September 30, 2024

September 30, 2023

(U.S. Dollars in thousands)

Net income (Reported GAAP)

$

21,515

$

53,985

$

175,016

$

126,775

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

(6,384

)

1,672

(32,351

)

27,616

Income from continuing operations (Reported GAAP)

15,131

55,657

142,665

154,391

Income tax expense

15,524

13,017

75,385

40,604

Interest expense

17,473

20,899

54,209

62,359

Mark to market losses (gains)

6,301

(4,783

)

1,217

(2,926

)

Gain on asset sales

(66

)

(28,802

)

(35

)

(43,356

)

Gain on disposal of business

—

—

(75,945

)

—

Cyber-related incident

—

—

—

5,321

Impairment of goodwill

—

—

36,684

—

Other items4,5

(983

)

222

(2,709

)

1,085

Adjustments from equity method investments

2,504

2,160

6,964

6,405

Adjusted EBIT (Non-GAAP)

55,884

58,370

238,435

223,883

Depreciation

22,616

21,737

66,852

69,182

Amortization of intangible assets

1,621

2,536

5,780

7,726

Depreciation and amortization adjustments from equity method investments

1,951

2,550

6,525

7,470

Adjusted EBITDA (Non-GAAP)

$

82,072

$

85,193

$

317,592

$

308,261

________________

4

For the three months ended September 30, 2024, other items is primarily comprised of $1.0 million of insurance proceeds, net of asset writedowns. For the three months ended September 30, 2023, other items is primarily comprised of $0.2 million of asset writedowns, net of insurance proceeds.

5

For the nine months ended September 30, 2024, other items is primarily comprised of $2.7 million of insurance proceeds, net of asset writedowns. For the nine months ended September 30, 2023, other items is primarily comprised of $1.1 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

Nine Months Ended

September 30, 2024

September 30, 2023

September 30, 2024

September 30, 2023

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

Net income attributable to Dole plc (Reported GAAP)

$

14,402

$

45,292

$

164,662

$

101,726

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

(6,384

)

1,672

(32,351

)

27,616

Income from continuing operations attributable to Dole plc

8,018

46,964

132,311

129,342

Adjustments:

Amortization of intangible assets

1,621

2,536

5,780

7,726

Mark to market losses (gains)

6,301

(4,783

)

1,217

(2,926

)

Gain on asset sales

(66

)

(28,802

)

(35

)

(43,356

)

Gain on disposal of business

—

—

(75,945

)

—

Cyber-related incident

—

—

—

5,321

Impairment of goodwill

—

—

36,684

—

Other items6,7

(983

)

222

(2,709

)

1,085

Adjustments from equity method investments

531

610

1,782

1,352

Income tax on items above and discrete tax items

3,393

6,464

18,500

6,952

NCI impact of items above

(781

)

(645

)

(11,968

)

(2,274

)

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

$

18,034

$

22,566

$

105,617

$

103,222

Adjusted earnings per share – basic (Non-GAAP)

$

0.19

$

0.24

$

1.11

$

1.09

Adjusted earnings per share – diluted (Non-GAAP)

$

0.19

$

0.24

$

1.11

$

1.09

Weighted average shares outstanding – basic

94,990

94,929

94,950

94,912

Weighted average shares outstanding – diluted

95,614

95,148

95,395

95,094

__________________

6

For the three months ended September 30, 2024, other items is primarily comprised of $1.0 million of insurance proceeds, net of asset writedowns. For the three months ended September 30, 2023, other items is primarily comprised of $0.2 million of asset writedowns, net of insurance proceeds.

7

For the nine months ended September 30, 2024, other items is primarily comprised of $2.7 million of insurance proceeds, net of asset writedowns. For the nine months ended September 30, 2023, other items is primarily comprised of $1.1 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 September 30, 2024

(U.S. Dollars in thousands)

Revenues, net

Cost of sales

Gross profit

Gross Margin %

Selling, marketing, general and administrative expenses

Other operating items8

Operating Income

Reported (GAAP)

$

2,062,414

(1,898,375

)

164,039

8.0

%

(115,829

)

(476

)

$

47,734

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

—

—

—

—

—

—

Amortization of intangible assets

—

—

—

1,621

—

1,621

Mark to market losses (gains)

—

270

270

—

—

270

Gain on asset sales

—

—

—

—

(66

)

(66

)

Gain on disposal of business

—

—

—

—

—

—

Impairment of goodwill

—

—

—

—

—

—

Other items

—

(986

)

(986

)

—

—

(986

)

Adjustments from equity method investments

—

—

—

—

—

—

Income tax on items above and discrete tax items

—

—

—

—

—

—

NCI impact of items above

—

—

—

—

—

—

Adjusted (Non-GAAP)

$

2,062,414

(1,899,091

)

163,323

7.9

%

(114,208

)

(542

)

$

48,573

_______________

8

Other operating items for the three months ended September 30, 2024 is primarily comprised of impairment and asset write-downs of property, plant and equipment of $2.0 million, partially offset by a gain on asset sales of $1.6 million, as reported on the Dole plc GAAP Condensed Consolidated Statements of Operations.

Three Months Ended September 30, 2023

(U.S. Dollars in thousands)

Revenues, net

Cost of sales

Gross profit

Gross Margin %

Selling, marketing, general and administrative expenses

Other operating items9

Operating Income

Reported (GAAP)

$

2,042,672

(1,876,292

)

166,380

8.1

%

(118,023

)

28,746

$

77,103

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

—

—

—

—

—

—

Amortization of intangible assets

—

—

—

2,536

—

2,536

Mark to market (gains) losses

—

(1,113

)

(1,113

)

—

—

(1,113

)

Gain on asset sales

—

—

—

—

(28,802

)

(28,802

)

Cyber-related incident

—

—

—

—

—

—

Other items

—

222

222

—

—

222

Adjustments from equity method investments

—

—

—

—

—

—

Income tax on items above and discrete tax items

—

—

—

—

—

—

NCI impact on items above

—

—

—

—

—

—

Adjusted (Non-GAAP)

$

2,042,672

(1,877,183

)

165,489

8.1

%

(115,487

)

(56

)

$

49,946

Three Months Ended September 30, 2024

(U.S. Dollars in thousands)

Other (expense) 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)

$

(4,541

)

2,632

(17,473

)

(15,524

)

2,303

15,131

6,384

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

—

—

—

—

—

—

(6,384

)

Amortization of intangible assets

—

—

—

—

—

1,621

—

Mark to market losses (gains)

6,031

—

—

—

—

6,301

—

Gain on asset sales

—

—

—

—

—

(66

)

—

Gain on disposal of business

—

—

—

—

—

—

—

Impairment of goodwill

—

—

—

—

—

—

—

Other items

3

—

—

—

—

(983

)

—

Adjustments from equity method investments

—

—

—

—

531

531

—

Income tax on items above and discrete tax items

—

—

—

3,493

(100

)

3,393

—

NCI impact of items above

—

—

—

—

—

—

—

Adjusted (Non-GAAP)

$

1,493

2,632

(17,473

)

(12,031

)

2,734

25,928

$

—

_______________

9

Other operating items for the three months ended September 30, 2023 is comprised of gains on asset sales of $28.7 million, as reported on the Dole plc GAAP Condensed Consolidated Statements of Operations.

Three Months Ended September 30, 2023

(U.S. Dollars in thousands)

Other (expense) 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)

$

4,817

2,311

(20,899

)

(13,017

)

5,342

55,657

(1,672

)

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

—

—

—

—

—

—

1,672

Amortization of intangible assets

—

—

—

—

—

2,536

—

Mark to market losses (gains)

(3,670

)

—

—

—

—

(4,783

)

—

Gain on asset sales

—

—

—

—

—

(28,802

)

—

Cyber-related incident

—

—

—

—

—

—

—

Other items

—

—

—

—

—

222

—

Adjustments from equity method investments

—

—

—

—

610

610

—

Income tax on items above and discrete tax items

—

—

—

6,603

(139

)

6,464

—

NCI impact of items above

—

—

—

—

—

—

—

Adjusted (Non-GAAP)

$

1,147

2,311

(20,899

)

(6,414

)

5,813

31,904

$

—

Three Months Ended September 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)

$

21,515

$

(7,113

)

$

14,402

$

0.15

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

(6,384

)

—

(6,384

)

Amortization of intangible assets

1,621

—

1,621

Mark to market losses (gains)

6,301

—

6,301

Gain on asset sales

(66

)

—

(66

)

Gain on disposal of business

—

—

—

Impairment of goodwill

—

—

—

Other items

(983

)

—

(983

)

Adjustments from equity method investments

531

—

531

Income tax on items above and discrete tax items

3,393

—

3,393

NCI impact of items above

—

(781

)

(781

)

Adjusted (Non-GAAP)

$

25,928

$

(7,894

)

$

18,034

$

0.19

Weighted average shares outstanding – diluted

95,614

Three Months Ended September 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)

$

53,985

$

(8,693

)

$

45,292

$

0.48

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

1,672

—

1,672

Amortization of intangible assets

2,536

—

2,536

Mark to market losses (gains)

(4,783

)

—

(4,783

)

Gain on asset sales

(28,802

)

—

(28,802

)

Cyber-related incident

—

—

—

Other items

222

—

222

Adjustments from equity method investments

610

—

610

Income tax on items above and discrete tax items

6,464

—

6,464

NCI impact of items above

—

(645

)

(645

)

Adjusted (Non-GAAP)

$

31,904

$

(9,338

)

$

22,566

$

0.24

Weighted average shares outstanding – diluted

95,148

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

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

Nine Months Ended September 30, 2024

(U.S. Dollars in thousands)

Revenues, net

Cost of sales

Gross profit

Gross Margin %

Selling, marketing, general and administrative expenses

Other operating items10

Operating Income

Reported (GAAP)

$

6,307,879

(5,748,577

)

559,302

8.9

%

(351,383

)

37,836

$

245,755

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

—

—

—

—

—

—

Amortization of intangible assets

—

—

—

5,780

—

5,780

Mark to market losses (gains)

—

150

150

—

—

150

Gain on asset sales

—

—

—

—

(35

)

(35

)

Gain on disposal of business

—

—

—

—

(75,945

)

(75,945

)

Impairment of goodwill

—

—

—

—

36,684

36,684

Other items

—

(2,629

)

(2,629

)

—

—

(2,629

)

Adjustments from equity method investments

—

—

—

—

—

—

Income tax on items above and discrete tax items

—

—

—

—

—

—

NCI impact of items above

—

—

—

—

—

—

Adjusted (Non-GAAP)

$

6,307,879

(5,751,056

)

556,823

8.8

%

(345,603

)

(1,460

)

$

209,760

_______________

10

Other operating items for the six months ended September 30, 2024 is primarily comprised of a gain on disposal of business of $75.9 million and gain of asset sales of $1.9 million, primarily offset by a goodwill impairment charge of $36.7 million and impairment and asset write-downs of property, plant and equipment of $3.3 million, as reported on the Dole plc GAAP Condensed Consolidated Statements of Operations.

Nine Months Ended September 30, 2023

(U.S. Dollars in thousands)

Revenues, net

Cost of sales

Gross profit

Gross Margin %

Selling, marketing, general and administrative expenses

Other operating items11

Operating Income

Reported (GAAP)

$

6,173,013

(5,631,021

)

541,992

8.8

%

(354,569

)

43,442

$

230,865

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

—

—

—

—

—

—

Amortization of intangible assets

—

—

—

7,726

—

7,726

Mark to market losses (gains)

—

(2,449

)

(2,449

)

—

—

(2,449

)

Gain on asset sales

—

—

—

—

(43,356

)

(43,356

)

Cyber-related incident

—

—

—

5,321

—

5,321

Other items

—

1,085

1,085

—

—

1,085

Adjustments from equity method investments

—

—

—

—

—

—

Income tax on items above and discrete tax items

—

—

—

—

—

—

NCI impact of items above

—

—

—

—

—

—

Adjusted (Non-GAAP)

$

6,173,013

(5,632,385

)

540,628

8.8

%

(341,522

)

86

$

199,192

Nine Months Ended September 30, 2024

(U.S. Dollars in thousands)

Other (expense) 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)

$

9,458

8,335

(54,209

)

(75,385

)

8,711

142,665

32,351

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

—

—

—

—

—

—

(32,351

)

Amortization of intangible assets

—

—

—

—

—

5,780

—

Mark to market losses (gains)

1,067

—

—

—

—

1,217

—

Gain on asset sales

—

—

—

—

—

(35

)

—

Gain on disposal of business

—

—

—

—

—

(75,945

)

—

Impairment of goodwill

—

—

—

—

—

36,684

—

Other items

(80

)

—

—

—

—

(2,709

)

—

Adjustments from equity method investments

—

—

—

—

1,782

1,782

—

Income tax on items above and discrete tax items

—

—

—

18,800

(300

)

18,500

—

NCI impact of items above

—

—

—

—

—

—

—

Adjusted (Non-GAAP)

$

10,445

8,335

(54,209

)

(56,585

)

10,193

127,939

$

—

_______________

11

Other operating items for the six months ended September 30, 2023, is comprised of gains on asset sales of $43.4 million, as reported on the Dole plc GAAP Condensed Consolidated Statements of Operations.

Nine Months Ended September 30, 2023

(U.S. Dollars in thousands)

Other (expense) 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)

$

7,721

7,260

(62,359

)

(40,604

)

11,508

154,391

(27,616

)

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

—

—

—

—

—

—

27,616

Amortization of intangible assets

—

—

—

—

—

7,726

—

Mark to market losses (gains)

(477

)

—

—

—

—

(2,926

)

—

Gain on asset sales

—

—

—

—

—

(43,356

)

—

Cyber-related incident

—

—

—

—

—

5,321

—

Other items

—

—

—

—

—

1,085

—

Adjustments from equity method investments

—

—

—

—

1,352

1,352

—

Income tax on items above and discrete tax items

—

—

—

7,253

(301

)

6,952

—

NCI impact of items above

—

—

—

—

—

—

—

Adjusted (Non-GAAP)

$

7,244

7,260

(62,359

)

(33,351

)

12,559

130,545

$

—

Nine Months Ended September 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)

$

175,016

$

(10,354

)

$

164,662

$

1.73

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

(32,351

)

—

(32,351

)

Amortization of intangible assets

5,780

—

5,780

Mark to market losses (gains)

1,217

—

1,217

Gain on asset sales

(35

)

—

(35

)

Gain on disposal of business

(75,945

)

—

(75,945

)

Impairment of goodwill

36,684

—

36,684

Other items

(2,709

)

—

(2,709

)

Adjustments from equity method investments

1,782

—

1,782

Income tax on items above and discrete tax items

18,500

—

18,500

NCI impact of items above

—

(11,968

)

(11,968

)

Adjusted (Non-GAAP)

$

127,939

$

(22,322

)

$

105,617

$

1.11

Weighted average shares outstanding – diluted

95,395

Nine Months Ended September 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)

$

126,775

$

(25,049

)

$

101,726

$

1.07

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

27,616

—

27,616

Amortization of intangible assets

7,726

—

7,726

Mark to market losses (gains)

(2,926

)

—

(2,926

)

Gain on asset sales

(43,356

)

—

(43,356

)

Cyber-related incident

5,321

—

5,321

Other items

1,085

—

1,085

Adjustments from equity method investments

1,352

—

1,352

Income tax on items above and discrete tax items

6,952

—

6,952

NCI impact of items above

—

(2,274

)

(2,274

)

Adjusted (Non-GAAP)

$

130,545

$

(27,323

)

$

103,222

$

1.09

Weighted average shares outstanding – diluted

95,094

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

Revenue for the Three Months Ended

September 30, 2023

Impact of Foreign Currency Translation

Impact of Acquisitions and Divestitures

Like-for-like Increase (Decrease)

September 30, 2024

(U.S. Dollars in thousands)

Fresh Fruit

$

749,210

$

—

$

—

$

49,571

$

798,781

Diversified Fresh Produce - EMEA

856,351

13,639

1,761

27,888

899,639

Diversified Fresh Produce - Americas & ROW

470,011

(974

)

(112,618

)

33,638

390,057

Intersegment

(32,900

)

—

—

6,837

(26,063

)

Total

$

2,042,672

$

12,665

$

(110,857

)

$

117,934

$

2,062,414

Adjusted EBITDA for the Three Months Ended

September 30, 2023

Impact of Foreign Currency Translation

Impact of Acquisitions and Divestitures

Like-for-like Increase (Decrease)

September 30, 2024

(U.S. Dollars in thousands)

Fresh Fruit

$

45,111

$

(32

)

$

—

$

(2,175

)

$

42,904

Diversified Fresh Produce - EMEA

34,923

479

28

(5,067

)

30,363

Diversified Fresh Produce - Americas & ROW

5,159

(29

)

(5,511

)

9,186

8,805

Total

$

85,193

$

418

$

(5,483

)

$

1,944

$

82,072

Revenue for the Nine Months Ended

September 30, 2023

Impact of Foreign Currency Translation

Impact of Acquisitions and Divestitures

Like-for-like Increase (Decrease)

September 30, 2024

(U.S. Dollars in thousands)

Fresh Fruit

$

2,387,163

$

—

$

—

$

87,298

$

2,474,461

Diversified Fresh Produce - EMEA

2,570,080

17,571

15,732

94,705

2,698,088

Diversified Fresh Produce - Americas & ROW

1,310,407

(1,700

)

(240,119

)

154,408

1,222,996

Intersegment

(94,637

)

—

—

6,971

(87,666

)

Total

$

6,173,013

$

15,871

$

(224,387

)

$

343,382

$

6,307,879

Adjusted EBITDA for the Nine Months Ended

September 30, 2023

Impact of Foreign Currency Translation

Impact of Acquisitions and Divestitures

Like-for-like Increase (Decrease)

September 30, 2024

(U.S. Dollars in thousands)

Fresh Fruit

$

180,138

$

(33

)

$

—

$

2,853

$

182,958

Diversified Fresh Produce - EMEA

100,932

515

153

(2,583

)

99,017

Diversified Fresh Produce - Americas & ROW

27,191

(48

)

(14,137

)

22,611

35,617

Total

$

308,261

$

434

$

(13,984

)

$

22,881

$

317,592

Net Debt Reconciliation

Net Debt is the primary measure used by management to analyze the Company’s capital structure. Net Debt is a non-GAAP financial measure, calculated as cash and cash equivalents, less current and long-term debt. It also excludes debt discounts and debt issuance costs. The calculation of Net Debt as of September 30, 2024 is presented below. Net Debt as of September 30, 2024 was $732.0 million.

September 30, 2024

December 31, 2023

(U.S. Dollars in thousands)

Cash and cash equivalents (Reported GAAP)

$

260,588

$

275,580

Debt (Reported GAAP):

Long-term debt, net

(878,785

)

(845,013

)

Current maturities

(87,023

)

(222,940

)

Bank overdrafts

(16,451

)

(11,488

)

Total debt, net

(982,259

)

(1,079,441

)

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

(10,312

)

(14,395

)

Total gross debt

(992,571

)

(1,093,836

)

Net Debt (Non-GAAP)

$

(731,983

)

$

(818,256

)

Free Cash Flow from Continuing Operations Reconciliation

Nine Months Ended

September 30, 2024

September 30, 2023

(U.S. Dollars in thousands)

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

$

106,246

$

157,134

Less: Capital expenditures (Reported GAAP)12

(56,788

)

(51,334

)

Free cash flow from continuing operations (Non-GAAP)

$

49,458

$

105,800

__________________

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 nine months ended September 30, 2024 and September 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 nine months ended September 30, 2024 and September 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 nine months ended September 30, 2024 and September 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.

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