Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Dole plc Reports Fourth Quarter and Full Year 2023 Financial Results By: Dole plc via Business Wire February 29, 2024 at 06:00 AM EST Dole plc (NYSE: DOLE) ("Dole" or the "Group" or the "Company") today released its financial results for the three months and year ended December 31, 2023. Highlights for the year ended December 31, 2023: Very strong full year results achieved following a year of good momentum for the Group Revenue of $8.2 billion, an increase of 2.8% Net income of $155.7 million, an increase of 39.3%, and Diluted EPS of $1.30 Adjusted EBITDA1 of $385.1 million, an increase of $24.7 million, or 6.9% Adjusted Net Income of $118.1 million and Adjusted Diluted EPS of $1.24 Free Cash Flow from Continuing Operations of $220.6 million Net Debt of $818.3 million, a reduction of $204.2 million Financial Highlights - Unaudited Three Months Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 (U.S. Dollars in millions, except per share amounts) Revenue 2,072 2,043 8,245 8,024 Income from Continuing Operations2 23.1 21.7 177.5 168.2 Net Income 28.9 13.4 155.7 111.8 Net Income attributable to Dole plc 22.3 6.8 124.1 86.5 Diluted EPS from Continuing Operations 0.17 0.16 1.53 1.51 Diluted EPS 0.23 0.07 1.30 0.91 Adjusted EBITDA1 76.9 77.5 385.1 360.4 Adjusted Net Income1 14.8 17.3 118.1 136.4 Adjusted Diluted EPS1 0.16 0.18 1.24 1.44 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, 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. 2 Fresh Vegetables results are reported separately as discontinued operations, net of income taxes, in our consolidated statements of operations, its assets and liabilities are separately presented in our consolidated balance sheets, and its cash flows are presented separately in our 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: “2023 was a year of positive development for the Group. We are very pleased with our strong full year results, delivering Adjusted EBITDA growth of 6.9% and reducing our net debt by over $200 million. Earlier this week, we announced an agreement to sell our 65% equity stake in Progressive Produce to Arable Capital Partners. The proceeds from this sale will be used to further strengthen our financial position and increase our focus on our core activities. We believe our business is well positioned to deliver another good result in 2024, and at this early stage of the year, our target is to deliver full year Adjusted EBITDA in line with 2023 on a like-for-like basis. Our results in 2023 would not be possible without the efforts of our people, and we extend thanks to everyone for their continued dedication and contributions during this past year.” Group Results - Fourth Quarter Revenue increased 1.5%, or $29.7 million, primarily due to a positive impact from foreign currency translation of $33.4 million, a net positive impact from acquisitions and divestitures of $12.2 million and an increase in revenue in the Diversified EMEA segment on a like-for-like basis3. Excluding the impact of foreign currency translation and acquisitions and divestitures, on a like-for-like basis, Group revenue decreased 0.8%, or $15.9 million, driven partially by lower revenue in the Diversified Americas segment. Adjusted EBITDA decreased 0.8%, or $0.7 million, primarily driven by a decrease for the Fresh Fruit segment against a very strong prior year comparative, partially offset by a strong performance in the Diversified EMEA segment. On a like-for-like basis, Adjusted EBITDA decreased 2.0%, or $1.5 million. Adjusted Net Income decreased $2.4 million, predominantly due to the decreases in Adjusted EBITDA and higher interest expense. Adjusted Diluted EPS was $0.16 compared to $0.18 in the prior year. Group Results - Full Year Revenue increased 2.8%, or $220.9 million, and, on a like-for-like basis, revenue increased 2.0%, or $158.3 million. The increase was driven by increases in the Diversified EMEA and Fresh Fruit segments primarily as a result of inflation-justified price increases, a positive impact from foreign currency translation of $26.7 million and a net positive impact from acquisitions and divestitures of $35.8 million. These positive impacts were partially offset by lower revenue in the Diversified Americas segment. Adjusted EBITDA increased 6.9%, or $24.7 million, primarily due to stronger performance in the Diversified EMEA and Fresh Fruit segments, partially offset by a lower result in the Diversified Americas segment due to seasonal timing differences in the Chilean cherry season. On a like-for-like basis, Adjusted EBITDA increased 5.9%, or $21.2 million. Adjusted Net Income decreased by $18.3 million, predominantly due to higher interest expense and tax expense, partially offset by the increases in Adjusted EBITDA as noted above and lower depreciation expense. Adjusted Diluted EPS for the year ended December 31, 2023 was $1.24 compared to $1.44 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 December 31, 2023 December 31, 2022 (U.S. Dollars in thousands) Revenue Adjusted EBITDA Revenue Adjusted EBITDA Fresh Fruit $ 748,703 $ 28,792 $ 740,167 $ 39,460 Diversified Fresh Produce - EMEA 862,865 32,638 751,594 22,656 Diversified Fresh Produce - Americas & ROW 489,761 15,427 573,936 15,396 Intersegment (29,074 ) — (23,129 ) — Total $ 2,072,255 $ 76,857 $ 2,042,568 $ 77,512 Year Ended December 31, 2023 December 31, 2022 (U.S. Dollars in thousands) Revenue Adjusted EBITDA Revenue Adjusted EBITDA Fresh Fruit $ 3,135,866 $ 208,930 $ 3,047,149 $ 205,547 Diversified Fresh Produce - EMEA 3,432,945 133,570 3,152,561 111,053 Diversified Fresh Produce - Americas & ROW 1,800,168 42,618 1,965,667 43,796 Intersegment (123,711 ) — (140,974 ) — Total $ 8,245,268 $ 385,118 $ 8,024,403 $ 360,396 Fourth Quarter Commentary Fresh Fruit Revenue increased 1.2%, or $8.5 million, compared to the prior year quarter. The increase was primarily due to higher worldwide volumes of bananas sold, an increase in banana pricing in Europe and an increase in worldwide pricing of pineapples. These increases were offset in part by lower banana prices in North America and less worldwide volumes of pineapples sold. Adjusted EBITDA decreased by 27.0%, or $10.7 million. The decrease was primarily due to higher fruit sourcing costs in bananas, as well as weaker performance in our commercial cargo business and other diversified products. Diversified Fresh Produce – EMEA Revenue increased 14.8%, or $111.3 million, primarily driven by inflation-justified price increases across the segment, a positive impact from foreign currency translation of $33.4 million due to the strengthening of the Euro and British pound sterling against the U.S. Dollar and a net positive impact from acquisitions and divestitures of $12.2 million. On a like-for-like basis, revenue increased 8.7%, or $65.7 million. Adjusted EBITDA increased 44.1%, or $10.0 million. The increase in Adjusted EBITDA was as a result of strong performance across the segment, particularly within the Dutch, Swedish and South African businesses, as well as a net favorable impact from acquisition and divestitures of $0.4 million and a positive impact from foreign currency translation of $1.1 million. On a like-for-like basis, Adjusted EBITDA increased 37.4%, or $8.5 million. Diversified Fresh Produce – Americas & ROW Revenue decreased 14.7%, or $84.2 million, primarily due to lower volumes of cherries due to seasonal timing differences, as well as continued challenging performance for the berry category in North America, partially offset by inflation-justified price increases and continued strong performance for potatoes and onions in North America. Adjusted EBITDA increased marginally by 0.2%, driven primarily by significant recoveries in profitability for apples and, to a lesser extent, kiwis, after a challenging 2022, mostly offset by the impact of seasonal timing differences in the Chilean cherry season, as well as by a challenging performance for the berry category in North America. Full Year Commentary Fresh Fruit Revenue increased 2.9%, or $88.7 million, predominantly driven by higher worldwide pricing of bananas and pineapples and an increase in worldwide volumes of bananas sold, partially offset by lower worldwide volumes of pineapples sold. Adjusted EBITDA increased 1.6%, or $3.4 million. Adjusted EBITDA was positively impacted by strong revenue performance, partially offset by higher fruit sourcing costs, an increase in materials and handling costs and lower profit from the commercial cargo business. Diversified Fresh Produce – EMEA Revenue increased 8.9%, or $280.4 million, primarily driven by inflation-justified price increases across the segment, a net positive impact from acquisitions and divestitures of $35.8 million and a positive impact from foreign currency translation of $33.2 million, as a result of the strengthening of the Euro and British pound sterling against the U.S. Dollar, partly offset by the weakening of the Swedish krona against the U.S. Dollar. On a like-for-like basis, revenue increased 6.7%, or $211.4 million. Adjusted EBITDA increased 20.3%, or $22.5 million. The increase was primarily due to strong performance across the segment, particularly within the Spanish, Dutch, Czech and South African businesses, as well as a net favorable impact from acquisitions and divestitures of $1.8 million. Excluding the impact of foreign currency translation and acquisition and divestitures, Adjusted EBITDA was 17.4%, or $19.3 million, ahead of the prior year. Diversified Fresh Produce – Americas & ROW Revenue decreased 8.4%, or $165.5 million, primarily due to lower volumes of most commodities sold, particularly in cherries, as well as in berries, grapes and apples, partially offset by inflation-justified price increases, a strong recovery in pricing of grapes and apples after a challenging 2022 and continued strong performance for potatoes and onions in North America. Adjusted EBITDA decreased 2.7%, or $1.2 million, primarily due to a weak performance for the North American berry business and lower profits in the Chilean cherry business due to seasonal timing differences, partially offset by strong recovery in Chilean apples and grapes after challenging seasons in 2022 and by strong trading activity for most other products that we market in North America, particularly for potatoes and onions. Capital Expenditures Capital expenditures for the year ended December 31, 2023 were $78.0 million and included investments in farm renovations and ongoing investments in IT, logistics and efficiency projects in our warehouses and processing facilities. This amount only includes capital expenditures from continuing operations and also excludes non-cash finance lease additions of $8.9 million for the year ended December 31, 2023. Sales of Assets Sales of assets for the year ended December 31, 2023 were $83.6 million, compared to $36.7 million for the year ended December 31, 2022. These sales resulted in a gain on asset sales of $54.1 million for the year ended December 31, 2023, compared to $11.8 million for the year ended December 31, 2022. The increase was driven by $44.0 million of cash proceeds received from the sale of idle land in Hawaii during the third quarter of 2023, as well as $14.0 million of cash proceeds received from the sale of a cooler in California during the fourth quarter of 2023. Free Cash Flow from Continuing Operations and Net Debt Free Cash Flow from Continuing Operations was $220.6 million for the year ended December 31, 2023. Free Cash Flow from Continuing Operations benefited from strong Adjusted EBITDA performance and good working capital management across the Group over the course of the year. In particular, in the fourth quarter, we benefited from a strong seasonal working capital inflow. At the end of the year, Net Debt was $0.8 billion, a reduction from $1.0 billion as of December 31, 2022. Progressive Produce Transaction On February 27, 2024, we entered into a stock purchase agreement with PTF Holdings, LLC, the parent company of Pacific Trellis Fruit, LLC, to sell our 65% equity stake in Progressive Produce LLC for gross cash consideration of $120.2 million. PTF Holdings, LLC is a portfolio company of Arable Capital Partners, LLC. This transaction is expected to close in March 2024, subject to the satisfaction of customary closing conditions. Outlook for Fiscal Year 2024 (forward-looking statement) We are pleased with the Group's exceptional performance in 2023, delivering $385.1 million of Adjusted EBITDA from continuing operations. The result gives the Group a strong starting point from which to build further momentum in the 2024 financial year. As we move through 2024, the operating environment continues to present new challenges as well as opportunities. On the macro-economic side, we have been pleased that inflation has continued to moderate across our key operating regions. We are also pleased by the relative stability being seen in some key foreign exchange rates, energy prices and, more recently, in interest rates. While forecasting in this environment remains complex, overall, we believe our business is well positioned to deliver another good result in 2024. Given our strong 2023 overperformance, our target at this early stage of the year is to deliver full year Adjusted EBITDA in line with 2023 on a like-for-like basis. For fiscal year 2024, we are guiding capital expenditure from continuing operations to be in the range of $110 - $120 million. Dividend On February 28, 2024, the Board of Directors of Dole plc declared a cash dividend for the fourth quarter of 2023 of $0.08 per share, payable on April 4, 2024 to shareholders of record on March 21, 2024. A cash dividend of $0.08 per share was paid on January 4, 2024 for the third 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 fourth quarter and full year 2023 financial results. The webcast can be accessed at www.doleplc.com/investors. 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 2525779. 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 Consolidated Statements of Operations - Unaudited Three Months Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 (U.S. Dollars and shares in thousands, except per share amounts) Revenues, net $ 2,072,255 $ 2,042,568 $ 8,245,268 $ 8,024,403 Cost of sales (1,920,077 ) (1,891,456 ) (7,551,098 ) (7,424,525 ) Gross profit 152,178 151,112 694,170 599,878 Selling, marketing, general and administrative expenses (119,334 ) (112,934 ) (473,903 ) (436,192 ) Gain on disposal of businesses — (50 ) — 192 Impairment and asset write-downs of property, plant and equipment (2,217 ) (397 ) (2,217 ) (397 ) Gain on asset sales 10,666 2,596 54,108 11,784 Operating income 41,293 40,327 272,158 175,265 Other (expense) income, net (2,922 ) (9,165 ) 4,799 10,600 Interest income 2,823 1,986 10,083 6,407 Interest expense (18,754 ) (18,245 ) (81,113 ) (56,371 ) Income from continuing operations before income taxes and equity earnings 22,440 14,903 205,927 135,901 Income tax (expense) benefit (2,987 ) 4,106 (43,591 ) 25,603 Equity method earnings 3,683 2,698 15,191 6,726 Income from continuing operations 23,136 21,707 177,527 168,230 Income (loss) from discontinued operations, net of income taxes 5,798 (8,318 ) (21,818 ) (56,447 ) Net income 28,934 13,389 155,709 111,783 Less: Net income attributable to noncontrolling interests (6,597 ) (6,608 ) (31,646 ) (25,287 ) Net income attributable to Dole plc $ 22,337 $ 6,781 $ 124,063 $ 86,496 Income (loss) per share - basic: Continuing operations $ 0.18 $ 0.16 $ 1.54 $ 1.51 Discontinued operations 0.06 (0.09 ) (0.23 ) (0.60 ) Net income per share attributable to Dole plc - basic $ 0.24 $ 0.07 $ 1.31 $ 0.91 Income (loss) per share - diluted: Continuing operations $ 0.17 $ 0.16 $ 1.53 $ 1.51 Discontinued operations 0.06 (0.09 ) (0.23 ) (0.60 ) Net income per share attributable to Dole plc - diluted $ 0.23 $ 0.07 $ 1.30 $ 0.91 Weighted-average shares: Basic 94,929 94,899 94,917 94,886 Diluted 95,187 94,928 95,118 94,914 Consolidated Balance Sheets - Unaudited December 31, 2023 December 31, 2022 ASSETS (U.S. Dollars in thousands) Cash and cash equivalents $ 275,580 $ 228,840 Short-term investments 5,899 5,367 Trade receivables, net of allowances for credit losses of $18,360 and $18,001, respectively 538,177 610,384 Grower advance receivables, net of allowances of $19,839 and $15,817, respectively 109,958 106,864 Other receivables, net of allowances of $13,227 and $14,538, respectively 117,069 132,947 Inventories, net of allowances of $4,792 and $4,186, respectively 378,592 394,150 Prepaid expenses 61,724 48,995 Other current assets 17,401 15,034 Fresh Vegetables current assets held for sale 414,457 62,252 Other assets held-for-sale 1,832 645 Total current assets 1,920,689 1,605,478 Long-term investments 15,970 16,498 Investments in unconsolidated affiliates 131,704 124,234 Actively marketed property 13,781 31,007 Property, plant and equipment, net of accumulated depreciation of $444,775 and $375,721, respectively 1,102,234 1,116,124 Operating lease right-of-use assets 340,458 293,658 Goodwill 513,312 497,453 DOLE brand 306,280 306,280 Other intangible assets, net of accumulated amortization of $134,420 and $120,315, respectively 41,232 50,990 Fresh Vegetables non-current assets held for sale — 343,828 Other assets 109,048 142,180 Deferred tax assets, net 66,485 64,112 Total assets $ 4,561,193 $ 4,591,842 LIABILITIES AND EQUITY Accounts payable $ 670,904 $ 640,620 Income taxes payable 22,917 11,558 Accrued liabilities 357,427 381,688 Bank overdrafts 11,488 8,623 Current portion of long-term debt, net 222,940 97,435 Current maturities of operating leases 63,653 57,372 Payroll and other tax 27,791 27,187 Contingent consideration 1,788 1,791 Pension and postretirement benefits 16,570 17,287 Fresh Vegetables current liabilities held for sale 291,342 199,255 Dividends payable and other current liabilities 29,892 17,698 Total current liabilities 1,716,712 1,460,514 Long-term debt, net 845,013 1,127,321 Operating leases, less current maturities 287,991 246,723 Deferred tax liabilities, net 92,653 118,403 Income taxes payable, less current portion 16,664 30,458 Contingent consideration, less current portion 7,327 5,022 Pension and postretirement benefits, less current portion 121,689 124,646 Fresh Vegetables non-current liabilities held for sale — 116,380 Other long-term liabilities 52,295 43,390 Total liabilities $ 3,140,344 $ 3,272,857 Redeemable noncontrolling interests 34,185 32,311 Stockholders’ equity: Common stock — $0.01 par value; 300,000 shares authorized and 94,929 and 94,899 shares outstanding as of December 31, 2023 and December 31, 2022, respectively 949 949 Additional paid-in capital 796,800 795,063 Retained earnings 562,562 469,249 Accumulated other comprehensive loss (110,791 ) (104,133 ) Total equity attributable to Dole plc 1,249,520 1,161,128 Equity attributable to noncontrolling interests 137,144 125,546 Total equity 1,386,664 1,286,674 Total liabilities, redeemable noncontrolling interests and equity $ 4,561,193 $ 4,591,842 Consolidated Statements of Cash Flows - Unaudited Year Ended December 31, 2023 December 31, 2022 Operating Activities (U.S. Dollars in thousands) Net income $ 155,709 $ 111,783 Loss from discontinued operations, net of income taxes 21,818 56,447 Income from continuing operations 177,527 168,230 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 104,168 109,596 Incremental charges on purchase accounting valuation of biological assets and inventory — 41,145 Net gain on sale of assets (54,108 ) (11,784 ) Stock-based compensation expense 6,045 4,500 Equity method earnings (15,191 ) (6,726 ) Amortization of debt discounts and debt issuance costs 6,390 6,213 Deferred tax benefit (12,600 ) (31,061 ) Pension and other postretirement benefit plan expense 7,735 3,151 Dividends received from equity method investees 9,388 9,817 Other 4,268 7,164 Changes in operating assets and liabilities: Receivables, net of allowances 58,794 55,150 Inventories 20,688 (31,685 ) Prepaids, other current assets and other assets (27,521 ) (11,073 ) Accounts payable, accrued liabilities and other liabilities 13,022 10,975 Net cash provided by operating activities - continuing operations 298,605 323,612 Investing Activities Sales of assets 83,557 36,676 Capital expenditures (78,041 ) (85,564 ) Acquisitions, net of cash acquired (1,263 ) (4,886 ) Insurance proceeds 1,054 2,278 Purchases of investments (1,153 ) (458 ) Net sales (purchases) of investments in unconsolidated affiliates 1,013 (3,029 ) Other 57 912 Net cash provided by (used in) investing activities - continuing operations 5,224 (54,071 ) Financing Activities Proceeds from borrowings and overdrafts 1,407,970 1,293,280 Repayments on borrowings and overdrafts (1,576,067 ) (1,411,467 ) Payment of debt issuance costs (44 ) (304 ) Dividends paid to shareholders (30,373 ) (30,364 ) Dividends paid to noncontrolling interests (28,522 ) (21,632 ) Other noncontrolling interest activity, net (1,300 ) — Payments of contingent consideration (1,662 ) (2,909 ) Net cash used in financing activities - continuing operations (229,998 ) (173,396 ) Effect of foreign currency exchange rate changes on cash 5,448 (20,712 ) Net cash used in operating activities - discontinued operations (22,622 ) (84,720 ) Net cash used in investing activities - discontinued operations (8,492 ) (12,434 ) Cash used in discontinued operations, net (31,114 ) (97,154 ) Increase (decrease) in cash and cash equivalents 48,165 (21,721 ) Cash and cash equivalents at beginning of period, including discontinued operations 228,840 250,561 Cash and cash equivalents at end of period, including discontinued operations $ 277,005 $ 228,840 Supplemental cash flow information: Income tax payments, net of refunds $ (63,969 ) $ (50,469 ) Interest payments on borrowings $ (82,367 ) $ (53,404 ) Non-cash Investing and Financing Activities: Accrued property, plant and equipment $ (1,465 ) $ (488 ) 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 Year Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 (U.S. Dollars in thousands) Net income (Reported GAAP) $ 28,934 $ 13,389 $ 155,709 $ 111,783 (Income) loss from discontinued operations, net of income taxes (5,798 ) 8,318 21,818 56,447 Income from continuing operations (Reported GAAP) 23,136 21,707 177,527 168,230 Income tax expense (benefit) 2,987 (4,106 ) 43,591 (25,603 ) Interest expense 18,754 18,245 81,113 56,371 Mark to market losses 5,450 8,868 2,524 3,049 Gain on asset sales (9,139 ) (1,970 ) (52,495 ) (10,316 ) Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole — 681 — 41,145 Cyber-related incident — — 5,321 — Other items4,5 1,833 1,053 2,918 (231 ) Adjustments from equity method investments 4,309 2,614 10,714 7,540 Adjusted EBIT (Non-GAAP) 47,330 47,092 271,213 240,185 Depreciation 24,788 25,159 93,970 98,703 Amortization of intangible assets 2,472 2,645 10,198 10,893 Depreciation and amortization adjustments from equity method investments 2,267 2,616 9,737 10,615 Adjusted EBITDA (Non-GAAP) $ 76,857 $ 77,512 $ 385,118 $ 360,396 4 For the three months ended December 31, 2023, other items is primarily comprised of $1.9 million asset write-downs, net of insurance proceeds and $0.2 million of impairment charges on property, plant and equipment, partially offset by other immaterial items. For the three months ended December 31, 2022, other items is primarily comprised of $0.5 million of net losses on equity method disposals, $0.4 million of impairment charges on property, plant and equipment and other immaterial items. 5 For the year ended December 31, 2023, other items is primarily comprised of $3.0 million of asset write-downs, net of insurance proceeds, $0.2 million of impairment charges on property, plant and equipment, partially offset by other immaterial items. For the year ended December 31, 2022, other items is primarily comprised of $0.9 million of net legal and restructuring adjustments and $0.5 million of insurance proceeds, net of asset write-downs, partially offset by $0.5 million of net losses on equity method acquisitions and disposals, $0.4 million of impairment charges on property, plant and equipment and other immaterial items. 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 Year Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 (U.S. Dollars and shares in thousands, except per share amounts) Net income attributable to Dole plc (Reported GAAP) $ 22,337 $ 6,781 $ 124,063 $ 86,496 (Income) loss from discontinued operations, net of income taxes (5,798 ) 8,318 21,818 56,447 Income from continuing operations attributable to Dole plc 16,539 15,099 145,881 142,943 Amortization of intangible assets 2,472 2,645 10,198 10,893 Mark to market losses 5,450 8,868 2,524 3,049 Gain on asset sales (9,139 ) (1,970 ) (52,495 ) (10,316 ) Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole — 681 — 41,145 Cyber-related incident — — 5,321 — Other items6,7 1,833 1,053 2,918 (231 ) Adjustments from equity method investments 604 662 1,956 2,580 Income tax on items above and discrete tax items (1,709 ) (8,876 ) 5,243 (50,504 ) NCI impact on items above (1,220 ) (898 ) (3,494 ) (3,187 ) Adjusted Net Income for Adjusted EPS calculation (Non-GAAP) $ 14,830 $ 17,264 $ 118,052 $ 136,372 Adjusted earnings per share – basic (Non-GAAP) $ 0.16 $ 0.18 $ 1.24 $ 1.44 Adjusted earnings per share – diluted (Non-GAAP) $ 0.16 $ 0.18 $ 1.24 $ 1.44 Weighted average shares outstanding – basic 94,929 94,899 94,917 94,886 Weighted average shares outstanding – diluted 95,187 94,928 95,118 94,914 6 For the three months ended December 31, 2023, other items is primarily comprised of $1.9 million asset write-downs, net of insurance proceeds and $0.2 million of impairment charges on property, plant and equipment, partially offset by other immaterial items. For the three months ended December 31, 2022, other items is primarily comprised of $0.5 million of net losses on equity method disposals, $0.4 million of impairment charges on property, plant and equipment and other immaterial items. 7 For the year ended December 31, 2023, other items is primarily comprised of $3.0 million of asset write-downs, net of insurance proceeds, $0.2 million of impairment charges on property, plant and equipment, partially offset by other immaterial items. For the year ended December 31, 2022, other items is primarily comprised of $0.9 million of net legal and restructuring adjustments and $0.5 million of insurance proceeds, net of asset write-downs, partially offset by $0.5 million of net losses on equity method acquisitions and disposals, $0.4 million of impairment charges on property, plant and equipment and other immaterial items. 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 December 31, 2023 (U.S. Dollars in thousands) Revenues, net Cost of sales Gross profit Gross Margin % Selling, marketing, general and administration expenses Other operating charges8 Operating Income Reported (GAAP) $ 2,072,255 (1,920,077 ) 152,178 7.3 % (119,334 ) 8,449 $ 41,293 (Income) loss from discontinued operations, net of income taxes — — — — — — Amortization of intangible assets — — — 2,472 — 2,472 Mark to market losses — (189 ) (189 ) — — (189 ) Gain on asset sales — — — — (9,139 ) (9,139 ) Cyber-related incident — — — — — — Other items — 2,120 2,120 (34 ) — 2,086 Adjustments from equity method investments — — — — — — Income tax on items above and discrete tax items — — — — — — NCI impact on items above — — — — — — Adjusted (Non-GAAP) $ 2,072,255 (1,918,146 ) 154,109 7.4 % (116,896 ) (690 ) $ 36,523 8 Other operating charges for the three months ended December 31, 2023 is primarily comprised of a $10.7 million gain on asset sales, partially offset by $2.2 million of impairment charges and asset write-downs of property, plant and equipment, as reported in the consolidated statements of operations. Three Months Ended December 31, 2022 (U.S. Dollars in thousands) Revenues, net Cost of sales Gross profit Gross Margin % Selling, marketing, general and administration expenses Other operating charges9 Operating Income Reported (GAAP) $ 2,042,568 (1,891,456 ) 151,112 7.4 % (112,934 ) 2,149 $ 40,327 (Income) loss from discontinued operations, net of income taxes — — — — — — Amortization of intangible assets — — — 2,645 — 2,645 Mark to market losses — 476 476 — — 476 Gain on asset sales — — — — (1,970 ) (1,970 ) Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole — 681 681 — — 681 Other items — (452 ) (452 ) — 961 509 Adjustments from equity method investments — — — — — — Income tax on items above and discrete tax items — — — — — — NCI impact on items above — — — — — — Adjusted (Non-GAAP) $ 2,042,568 (1,890,751 ) 151,817 7.4 % (110,289 ) 1,140 $ 42,668 9 Other operating charges for the three months ended December 31, 2022 is primarily comprised of a $2.6 million gain on asset sales, partially offset by $0.4 million of impairment charges and asset write-downs of property, plant and equipment, as reported in the consolidated statements of operations. Three Months Ended December 31, 2023 (U.S. Dollars in thousands) Other (expense) income, net Interest income Interest expense Income tax (expense) Equity earnings Income from continuing operations Income from discontinued operations, net of income taxes Reported (GAAP) $ (2,922 ) 2,823 (18,754 ) (2,987 ) 3,683 23,136 $ 5,798 (Income) loss from discontinued operations, net of income taxes — — — — — — (5,798 ) Amortization of intangible assets — — — — — 2,472 — Mark to market losses 5,639 — — — — 5,450 — Gain on asset sales — — — — — (9,139 ) — Cyber-related incident — — — — — — — Other items (253 ) — — — — 1,833 — Adjustments from equity method investments — — — — 604 604 — Income tax on items above and discrete tax items — — — (1,610 ) (99 ) (1,709 ) — NCI impact on items above — — — — — — — Adjusted (Non-GAAP) $ 2,464 2,823 (18,754 ) (4,597 ) 4,188 22,647 $ — Three Months Ended December 31, 2022 (U.S. Dollars in thousands) Other expense, net Interest income Interest expense Income tax benefit (expense) Equity earnings Income from continuing operations Loss from discontinued operations, net of income taxes Reported (GAAP) $ (9,165 ) 1,986 (18,245 ) 4,106 2,698 21,707 $ (8,318 ) (Income) loss from discontinued operations, net of income taxes — — — — — — 8,318 Amortization of intangible assets — — — — — 2,645 — Mark to market losses 8,392 — — — — 8,868 — Gain on asset sales — — — — — (1,970 ) — Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole — — — — — 681 — Other items — — — — 544 1,053 — Adjustments from equity method investments — — — — 662 662 — Income tax on items above and discrete tax items — — — (8,777 ) (99 ) (8,876 ) — NCI impact on items above — — — — — — — Adjusted (Non-GAAP) $ (773 ) 1,986 (18,245 ) (4,671 ) 3,805 24,770 $ — Three Months Ended December 31, 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) $ 28,934 (6,597 ) $ 22,337 $ 0.23 (Income) loss from discontinued operations, net of income taxes (5,798 ) — (5,798 ) Amortization of intangible assets 2,472 — 2,472 Mark to market losses 5,450 — 5,450 Gain on asset sales (9,139 ) — (9,139 ) Cyber-related incident — — — Other items 1,833 — 1,833 Adjustments from equity method investments 604 — 604 Income tax on items above and discrete tax items (1,709 ) — (1,709 ) NCI impact on items above — (1,220 ) (1,220 ) Adjusted (Non-GAAP) $ 22,647 (7,817 ) $ 14,830 $ 0.16 Weighted average shares outstanding – diluted 95,187 Three Months Ended December 31, 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) $ 13,389 (6,608 ) $ 6,781 $ 0.07 (Income) loss from discontinued operations, net of income taxes 8,318 — 8,318 Amortization of intangible assets 2,645 — 2,645 Mark to market losses 8,868 — 8,868 Gain on asset sales (1,970 ) — (1,970 ) Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole 681 — 681 Other items 1,053 — 1,053 Adjustments from equity method investments 662 — 662 Income tax on items above and discrete tax items (8,876 ) — (8,876 ) NCI impact on items above — (898 ) (898 ) Adjusted (Non-GAAP) $ 24,770 (7,506 ) $ 17,264 $ 0.18 Weighted average shares outstanding – diluted 94,928 Year Ended December 31, 2023 (U.S. Dollars in thousands) Revenues, net Cost of sales Gross profit Gross Margin % Selling, marketing, general and administration expenses Other operating charges10 Operating Income Reported (GAAP) $ 8,245,268 (7,551,098 ) 694,170 8.4 % (473,903 ) 51,891 $ 272,158 (Income) loss from discontinued operations, net of income taxes — — — — — — Amortization of intangible assets — — — 10,198 — 10,198 Mark to market losses — (2,638 ) (2,638 ) — — (2,638 ) Gain on asset sales — — — — (52,495 ) (52,495 ) Cyber-related incident — — — 5,321 — 5,321 Other items — 3,205 3,205 (34 ) — 3,171 Adjustments from equity method investments — — — — — — Income tax on items above and discrete tax items — — — — — — NCI impact on items above — — — — — — Adjusted (Non-GAAP) $ 8,245,268 (7,550,531 ) 694,737 8.4 % (458,418 ) (604 ) $ 235,715 10 Other operating charges for the year ended December 31, 2023 is primarily comprised of a $54.1 million gain on asset sales, partially offset by $2.2 million of impairment charges and asset write-downs of property, plant and equipment, as reported in the consolidated statements of operations. Year Ended December 31, 2022 (U.S. Dollars in thousands) Revenues, net Cost of sales Gross profit Gross Margin % Selling, marketing, general and administration expenses Other operating charges11 Operating Income Reported (GAAP) $ 8,024,403 (7,424,525 ) 599,878 7.5 % (436,192 ) 11,579 $ 175,265 (Income) loss from discontinued operations, net of income taxes — — — — — — Amortization of intangible assets — — — 10,893 — 10,893 Mark to market losses — 2,848 2,848 — — 2,848 Gain on asset sales — — — — (10,316 ) (10,316 ) Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole — 41,145 41,145 — — 41,145 Other items — (452 ) (452 ) (910 ) 587 (775 ) Adjustments from equity method investments — — — — — — Income tax on items above and discrete tax items — — — — — — NCI impact on items above — — — — — — Adjusted (Non-GAAP) $ 8,024,403 (7,380,984 ) 643,419 8.0 % (426,209 ) 1,850 $ 219,060 11 Other operating charges for the year ended December 31, 2022 is primarily comprised of a $11.8 million gain on asset sales, partially offset by $0.4 million of impairment charges and asset write-downs of property, plant and equipment, as reported in the consolidated statements of operations. Year Ended December 31, 2023 (U.S. Dollars in thousands) Other income, net Interest income Interest expense Income tax (expense) Equity earnings Income from continuing operations Loss from discontinued operations, net of income taxes Reported (GAAP) $ 4,799 10,083 (81,113 ) (43,591 ) 15,191 177,527 $ (21,818 ) (Income) loss from discontinued operations, net of income taxes — — — — — — 21,818 Amortization of intangible assets — — — — — 10,198 — Mark to market losses 5,162 — — — — 2,524 — Gain on asset sales — — — — — (52,495 ) — Cyber-related incident — — — — — 5,321 — Other items (253 ) — — — — 2,918 — Adjustments from equity method investments — — — — 1,956 1,956 — Income tax on items above and discrete tax items — — — 5,643 (400 ) 5,243 — NCI impact on items above — — — — — — — Adjusted (Non-GAAP) $ 9,708 10,083 (81,113 ) (37,948 ) 16,747 153,192 $ — Year Ended December 31, 2022 (U.S. Dollars in thousands) Other income, net Interest income Interest expense Income tax expense Equity earnings Income from continuing operations Loss from discontinued operations, net of income taxes Reported (GAAP) $ 10,600 6,407 (56,371 ) 25,603 6,726 168,230 $ (56,447 ) (Income) loss from discontinued operations, net of income taxes — — — — — — 56,447 Amortization of intangible assets — — — — — 10,893 — Mark to market losses 201 — — — — 3,049 — Gain on asset sales — — — — — (10,316 ) — Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole — — — — — 41,145 — Other items — — — — 544 (231 ) — Adjustments from equity method investments — — — — 2,580 2,580 — Income tax on items above and discrete tax items — — — (50,097 ) (407 ) (50,504 ) — NCI impact on items above — — — — — — — Adjusted (Non-GAAP) $ 10,801 6,407 (56,371 ) (24,494 ) 9,443 164,846 $ — Year Ended December 31, 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) $ 155,709 (31,646 ) $ 124,063 $ 1.30 (Income) loss from discontinued operations, net of income taxes 21,818 — 21,818 Amortization of intangible assets 10,198 — 10,198 Mark to market losses 2,524 — 2,524 Gain on asset sales (52,495 ) — (52,495 ) Cyber-related incident 5,321 — 5,321 Other items 2,918 — 2,918 Adjustments from equity method investments 1,956 — 1,956 Income tax on items above and discrete tax items 5,243 — 5,243 NCI impact on items above — (3,494 ) (3,494 ) Adjusted (Non-GAAP) $ 153,192 (35,140 ) $ 118,052 $ 1.24 Weighted average shares outstanding – diluted 95,118 Year Ended December 31, 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) $ 111,783 (25,287 ) $ 86,496 $ 0.91 (Income) loss from discontinued operations, net of income taxes 56,447 — 56,447 Amortization of intangible assets 10,893 — 10,893 Mark to market losses 3,049 — 3,049 Gain on asset sales (10,316 ) — (10,316 ) Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole 41,145 — 41,145 Other items (231 ) — (231 ) Adjustments from equity method investments 2,580 — 2,580 Income tax on items above and discrete tax items (50,504 ) — (50,504 ) NCI impact on items above — (3,187 ) (3,187 ) Adjusted (Non-GAAP) $ 164,846 (28,474 ) $ 136,372 $ 1.44 Weighted average shares outstanding – diluted 94,914 Supplemental Reconciliation of Prior Year Segment Results to Current Year Segment Results – Unaudited Revenue for the Three Months Ended December 31, 2022 Impact of Foreign Currency Translation Impact of Acquisitions and Divestitures Like-for-like Increase (Decrease) December 31, 2023 (U.S. Dollars in thousands) Fresh Fruit $ 740,167 $ — $ — $ 8,536 $ 748,703 Diversified Fresh Produce - EMEA 751,594 33,388 12,170 65,713 862,865 Diversified Fresh Produce - Americas & ROW 573,936 55 — (84,230 ) 489,761 Intersegment (23,129 ) — — (5,945 ) (29,074 ) Total $ 2,042,568 $ 33,443 $ 12,170 $ (15,926 ) $ 2,072,255 Adjusted EBITDA for the Three Months Ended December 31, 2022 Impact of Foreign Currency Translation Impact of Acquisitions and Divestitures Like-for-like Increase (Decrease) December 31, 2023 (U.S. Dollars in thousands) Fresh Fruit $ 39,460 $ (82 ) $ — $ (10,586 ) $ 28,792 Diversified Fresh Produce - EMEA 22,656 1,132 376 8,474 32,638 Diversified Fresh Produce - Americas & ROW 15,396 (15 ) (529 ) 575 15,427 Total $ 77,512 $ 1,035 $ (153 ) $ (1,537 ) $ 76,857 Revenue for the Year Ended December 31, 2022 Impact of Foreign Currency Translation Impact of Acquisitions and Divestitures Like-for-like Increase (Decrease) December 31, 2023 (U.S. Dollars in thousands) Fresh Fruit $ 3,047,149 $ — $ — $ 88,717 $ 3,135,866 Diversified Fresh Produce - EMEA 3,152,561 33,200 35,812 211,372 3,432,945 Diversified Fresh Produce - Americas & ROW 1,965,667 (6,469 ) — (159,030 ) 1,800,168 Intersegment (140,974 ) — 17,263 (123,711 ) Total $ 8,024,403 $ 26,731 $ 35,812 $ 158,322 $ 8,245,268 Adjusted EBITDA for the Year Ended December 31, 2022 Impact of Foreign Currency Translation Impact of Acquisitions and Divestitures Like-for-like Increase (Decrease) December 31, 2023 (U.S. Dollars in thousands) Fresh Fruit $ 205,547 $ (412 ) $ — $ 3,795 $ 208,930 Diversified Fresh Produce - EMEA 111,053 1,345 1,834 19,338 133,570 Diversified Fresh Produce - Americas & ROW 43,796 (260 ) 969 (1,887 ) 42,618 Total $ 360,396 $ 673 $ 2,803 $ 21,246 $ 385,118 Net Debt Reconciliation – Unaudited 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 December 31, 2023 is presented below. Net Debt as of December 31, 2023 was $0.8 billion. December 31, 2023 December 31, 2022 (U.S. Dollars in thousands) Cash and cash equivalents (Reported GAAP) $ 275,580 $ 228,840 Debt (Reported GAAP): Long-term debt, net (845,013 ) (1,127,321 ) Current maturities (222,940 ) (97,435 ) Bank overdrafts (11,488 ) (8,623 ) Total debt, net (1,079,441 ) (1,233,379 ) Less: Debt discounts and debt issuance costs (Reported GAAP) (14,395 ) (17,874 ) Total gross debt (1,093,836 ) (1,251,253 ) Net Debt (Non-GAAP) $ (818,256 ) $ (1,022,413 ) Free Cash Flow from Continuing Operations Reconciliation – Unaudited Year Ended December 31, 2023 December 31, 2022 (U.S. Dollars in thousands) Net cash provided by operating activities - continuing operations (Reported GAAP) $ 298,605 $ 323,612 Less: Capital expenditures (Reported GAAP)12 (78,041 ) (85,564 ) Free cash flow from continuing operations (Non-GAAP) $ 220,564 $ 238,048 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) adding the loss or subtracting the income 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 years ended December 31, 2023 and December 31, 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 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, adding impairment charges on property, plant and equipment, adding restructuring charges and costs for legal matters not in the ordinary course of business 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 years ended December 31, 2023 and December 31, 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 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, adding impairment charges on property, plant and equipment, adding restructuring charges and costs for legal matters not in the ordinary course of business 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 years ended December 31, 2023 and December 31, 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 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, adding impairment charges on property, plant and equipment, adding restructuring charges and costs for legal matters not in the ordinary course of business 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 provided by operating activities for continuing operations less GAAP capital expenditures. Like-for-like basis refers to the U.S. GAAP measure or non-GAAP financial measure excluding the impact of foreign currency translation movements and acquisitions and divestitures. Dole is not able to provide a reconciliation for projected FY'24 results without taking unreasonable efforts. View source version on businesswire.com: https://www.businesswire.com/news/home/20240229620633/en/Contacts Investor Contact: James O'Regan, Head of Investor Relations, Dole plc joregan@totalproduce.com +353 1 887 2794 Media Contact: Brian Bell, Ogilvy brian.bell@ogilvy.com +353 87 2436 130 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Dole plc Reports Fourth Quarter and Full Year 2023 Financial Results By: Dole plc via Business Wire February 29, 2024 at 06:00 AM EST Dole plc (NYSE: DOLE) ("Dole" or the "Group" or the "Company") today released its financial results for the three months and year ended December 31, 2023. Highlights for the year ended December 31, 2023: Very strong full year results achieved following a year of good momentum for the Group Revenue of $8.2 billion, an increase of 2.8% Net income of $155.7 million, an increase of 39.3%, and Diluted EPS of $1.30 Adjusted EBITDA1 of $385.1 million, an increase of $24.7 million, or 6.9% Adjusted Net Income of $118.1 million and Adjusted Diluted EPS of $1.24 Free Cash Flow from Continuing Operations of $220.6 million Net Debt of $818.3 million, a reduction of $204.2 million Financial Highlights - Unaudited Three Months Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 (U.S. Dollars in millions, except per share amounts) Revenue 2,072 2,043 8,245 8,024 Income from Continuing Operations2 23.1 21.7 177.5 168.2 Net Income 28.9 13.4 155.7 111.8 Net Income attributable to Dole plc 22.3 6.8 124.1 86.5 Diluted EPS from Continuing Operations 0.17 0.16 1.53 1.51 Diluted EPS 0.23 0.07 1.30 0.91 Adjusted EBITDA1 76.9 77.5 385.1 360.4 Adjusted Net Income1 14.8 17.3 118.1 136.4 Adjusted Diluted EPS1 0.16 0.18 1.24 1.44 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, 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. 2 Fresh Vegetables results are reported separately as discontinued operations, net of income taxes, in our consolidated statements of operations, its assets and liabilities are separately presented in our consolidated balance sheets, and its cash flows are presented separately in our 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: “2023 was a year of positive development for the Group. We are very pleased with our strong full year results, delivering Adjusted EBITDA growth of 6.9% and reducing our net debt by over $200 million. Earlier this week, we announced an agreement to sell our 65% equity stake in Progressive Produce to Arable Capital Partners. The proceeds from this sale will be used to further strengthen our financial position and increase our focus on our core activities. We believe our business is well positioned to deliver another good result in 2024, and at this early stage of the year, our target is to deliver full year Adjusted EBITDA in line with 2023 on a like-for-like basis. Our results in 2023 would not be possible without the efforts of our people, and we extend thanks to everyone for their continued dedication and contributions during this past year.” Group Results - Fourth Quarter Revenue increased 1.5%, or $29.7 million, primarily due to a positive impact from foreign currency translation of $33.4 million, a net positive impact from acquisitions and divestitures of $12.2 million and an increase in revenue in the Diversified EMEA segment on a like-for-like basis3. Excluding the impact of foreign currency translation and acquisitions and divestitures, on a like-for-like basis, Group revenue decreased 0.8%, or $15.9 million, driven partially by lower revenue in the Diversified Americas segment. Adjusted EBITDA decreased 0.8%, or $0.7 million, primarily driven by a decrease for the Fresh Fruit segment against a very strong prior year comparative, partially offset by a strong performance in the Diversified EMEA segment. On a like-for-like basis, Adjusted EBITDA decreased 2.0%, or $1.5 million. Adjusted Net Income decreased $2.4 million, predominantly due to the decreases in Adjusted EBITDA and higher interest expense. Adjusted Diluted EPS was $0.16 compared to $0.18 in the prior year. Group Results - Full Year Revenue increased 2.8%, or $220.9 million, and, on a like-for-like basis, revenue increased 2.0%, or $158.3 million. The increase was driven by increases in the Diversified EMEA and Fresh Fruit segments primarily as a result of inflation-justified price increases, a positive impact from foreign currency translation of $26.7 million and a net positive impact from acquisitions and divestitures of $35.8 million. These positive impacts were partially offset by lower revenue in the Diversified Americas segment. Adjusted EBITDA increased 6.9%, or $24.7 million, primarily due to stronger performance in the Diversified EMEA and Fresh Fruit segments, partially offset by a lower result in the Diversified Americas segment due to seasonal timing differences in the Chilean cherry season. On a like-for-like basis, Adjusted EBITDA increased 5.9%, or $21.2 million. Adjusted Net Income decreased by $18.3 million, predominantly due to higher interest expense and tax expense, partially offset by the increases in Adjusted EBITDA as noted above and lower depreciation expense. Adjusted Diluted EPS for the year ended December 31, 2023 was $1.24 compared to $1.44 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 December 31, 2023 December 31, 2022 (U.S. Dollars in thousands) Revenue Adjusted EBITDA Revenue Adjusted EBITDA Fresh Fruit $ 748,703 $ 28,792 $ 740,167 $ 39,460 Diversified Fresh Produce - EMEA 862,865 32,638 751,594 22,656 Diversified Fresh Produce - Americas & ROW 489,761 15,427 573,936 15,396 Intersegment (29,074 ) — (23,129 ) — Total $ 2,072,255 $ 76,857 $ 2,042,568 $ 77,512 Year Ended December 31, 2023 December 31, 2022 (U.S. Dollars in thousands) Revenue Adjusted EBITDA Revenue Adjusted EBITDA Fresh Fruit $ 3,135,866 $ 208,930 $ 3,047,149 $ 205,547 Diversified Fresh Produce - EMEA 3,432,945 133,570 3,152,561 111,053 Diversified Fresh Produce - Americas & ROW 1,800,168 42,618 1,965,667 43,796 Intersegment (123,711 ) — (140,974 ) — Total $ 8,245,268 $ 385,118 $ 8,024,403 $ 360,396 Fourth Quarter Commentary Fresh Fruit Revenue increased 1.2%, or $8.5 million, compared to the prior year quarter. The increase was primarily due to higher worldwide volumes of bananas sold, an increase in banana pricing in Europe and an increase in worldwide pricing of pineapples. These increases were offset in part by lower banana prices in North America and less worldwide volumes of pineapples sold. Adjusted EBITDA decreased by 27.0%, or $10.7 million. The decrease was primarily due to higher fruit sourcing costs in bananas, as well as weaker performance in our commercial cargo business and other diversified products. Diversified Fresh Produce – EMEA Revenue increased 14.8%, or $111.3 million, primarily driven by inflation-justified price increases across the segment, a positive impact from foreign currency translation of $33.4 million due to the strengthening of the Euro and British pound sterling against the U.S. Dollar and a net positive impact from acquisitions and divestitures of $12.2 million. On a like-for-like basis, revenue increased 8.7%, or $65.7 million. Adjusted EBITDA increased 44.1%, or $10.0 million. The increase in Adjusted EBITDA was as a result of strong performance across the segment, particularly within the Dutch, Swedish and South African businesses, as well as a net favorable impact from acquisition and divestitures of $0.4 million and a positive impact from foreign currency translation of $1.1 million. On a like-for-like basis, Adjusted EBITDA increased 37.4%, or $8.5 million. Diversified Fresh Produce – Americas & ROW Revenue decreased 14.7%, or $84.2 million, primarily due to lower volumes of cherries due to seasonal timing differences, as well as continued challenging performance for the berry category in North America, partially offset by inflation-justified price increases and continued strong performance for potatoes and onions in North America. Adjusted EBITDA increased marginally by 0.2%, driven primarily by significant recoveries in profitability for apples and, to a lesser extent, kiwis, after a challenging 2022, mostly offset by the impact of seasonal timing differences in the Chilean cherry season, as well as by a challenging performance for the berry category in North America. Full Year Commentary Fresh Fruit Revenue increased 2.9%, or $88.7 million, predominantly driven by higher worldwide pricing of bananas and pineapples and an increase in worldwide volumes of bananas sold, partially offset by lower worldwide volumes of pineapples sold. Adjusted EBITDA increased 1.6%, or $3.4 million. Adjusted EBITDA was positively impacted by strong revenue performance, partially offset by higher fruit sourcing costs, an increase in materials and handling costs and lower profit from the commercial cargo business. Diversified Fresh Produce – EMEA Revenue increased 8.9%, or $280.4 million, primarily driven by inflation-justified price increases across the segment, a net positive impact from acquisitions and divestitures of $35.8 million and a positive impact from foreign currency translation of $33.2 million, as a result of the strengthening of the Euro and British pound sterling against the U.S. Dollar, partly offset by the weakening of the Swedish krona against the U.S. Dollar. On a like-for-like basis, revenue increased 6.7%, or $211.4 million. Adjusted EBITDA increased 20.3%, or $22.5 million. The increase was primarily due to strong performance across the segment, particularly within the Spanish, Dutch, Czech and South African businesses, as well as a net favorable impact from acquisitions and divestitures of $1.8 million. Excluding the impact of foreign currency translation and acquisition and divestitures, Adjusted EBITDA was 17.4%, or $19.3 million, ahead of the prior year. Diversified Fresh Produce – Americas & ROW Revenue decreased 8.4%, or $165.5 million, primarily due to lower volumes of most commodities sold, particularly in cherries, as well as in berries, grapes and apples, partially offset by inflation-justified price increases, a strong recovery in pricing of grapes and apples after a challenging 2022 and continued strong performance for potatoes and onions in North America. Adjusted EBITDA decreased 2.7%, or $1.2 million, primarily due to a weak performance for the North American berry business and lower profits in the Chilean cherry business due to seasonal timing differences, partially offset by strong recovery in Chilean apples and grapes after challenging seasons in 2022 and by strong trading activity for most other products that we market in North America, particularly for potatoes and onions. Capital Expenditures Capital expenditures for the year ended December 31, 2023 were $78.0 million and included investments in farm renovations and ongoing investments in IT, logistics and efficiency projects in our warehouses and processing facilities. This amount only includes capital expenditures from continuing operations and also excludes non-cash finance lease additions of $8.9 million for the year ended December 31, 2023. Sales of Assets Sales of assets for the year ended December 31, 2023 were $83.6 million, compared to $36.7 million for the year ended December 31, 2022. These sales resulted in a gain on asset sales of $54.1 million for the year ended December 31, 2023, compared to $11.8 million for the year ended December 31, 2022. The increase was driven by $44.0 million of cash proceeds received from the sale of idle land in Hawaii during the third quarter of 2023, as well as $14.0 million of cash proceeds received from the sale of a cooler in California during the fourth quarter of 2023. Free Cash Flow from Continuing Operations and Net Debt Free Cash Flow from Continuing Operations was $220.6 million for the year ended December 31, 2023. Free Cash Flow from Continuing Operations benefited from strong Adjusted EBITDA performance and good working capital management across the Group over the course of the year. In particular, in the fourth quarter, we benefited from a strong seasonal working capital inflow. At the end of the year, Net Debt was $0.8 billion, a reduction from $1.0 billion as of December 31, 2022. Progressive Produce Transaction On February 27, 2024, we entered into a stock purchase agreement with PTF Holdings, LLC, the parent company of Pacific Trellis Fruit, LLC, to sell our 65% equity stake in Progressive Produce LLC for gross cash consideration of $120.2 million. PTF Holdings, LLC is a portfolio company of Arable Capital Partners, LLC. This transaction is expected to close in March 2024, subject to the satisfaction of customary closing conditions. Outlook for Fiscal Year 2024 (forward-looking statement) We are pleased with the Group's exceptional performance in 2023, delivering $385.1 million of Adjusted EBITDA from continuing operations. The result gives the Group a strong starting point from which to build further momentum in the 2024 financial year. As we move through 2024, the operating environment continues to present new challenges as well as opportunities. On the macro-economic side, we have been pleased that inflation has continued to moderate across our key operating regions. We are also pleased by the relative stability being seen in some key foreign exchange rates, energy prices and, more recently, in interest rates. While forecasting in this environment remains complex, overall, we believe our business is well positioned to deliver another good result in 2024. Given our strong 2023 overperformance, our target at this early stage of the year is to deliver full year Adjusted EBITDA in line with 2023 on a like-for-like basis. For fiscal year 2024, we are guiding capital expenditure from continuing operations to be in the range of $110 - $120 million. Dividend On February 28, 2024, the Board of Directors of Dole plc declared a cash dividend for the fourth quarter of 2023 of $0.08 per share, payable on April 4, 2024 to shareholders of record on March 21, 2024. A cash dividend of $0.08 per share was paid on January 4, 2024 for the third 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 fourth quarter and full year 2023 financial results. The webcast can be accessed at www.doleplc.com/investors. 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 2525779. 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 Consolidated Statements of Operations - Unaudited Three Months Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 (U.S. Dollars and shares in thousands, except per share amounts) Revenues, net $ 2,072,255 $ 2,042,568 $ 8,245,268 $ 8,024,403 Cost of sales (1,920,077 ) (1,891,456 ) (7,551,098 ) (7,424,525 ) Gross profit 152,178 151,112 694,170 599,878 Selling, marketing, general and administrative expenses (119,334 ) (112,934 ) (473,903 ) (436,192 ) Gain on disposal of businesses — (50 ) — 192 Impairment and asset write-downs of property, plant and equipment (2,217 ) (397 ) (2,217 ) (397 ) Gain on asset sales 10,666 2,596 54,108 11,784 Operating income 41,293 40,327 272,158 175,265 Other (expense) income, net (2,922 ) (9,165 ) 4,799 10,600 Interest income 2,823 1,986 10,083 6,407 Interest expense (18,754 ) (18,245 ) (81,113 ) (56,371 ) Income from continuing operations before income taxes and equity earnings 22,440 14,903 205,927 135,901 Income tax (expense) benefit (2,987 ) 4,106 (43,591 ) 25,603 Equity method earnings 3,683 2,698 15,191 6,726 Income from continuing operations 23,136 21,707 177,527 168,230 Income (loss) from discontinued operations, net of income taxes 5,798 (8,318 ) (21,818 ) (56,447 ) Net income 28,934 13,389 155,709 111,783 Less: Net income attributable to noncontrolling interests (6,597 ) (6,608 ) (31,646 ) (25,287 ) Net income attributable to Dole plc $ 22,337 $ 6,781 $ 124,063 $ 86,496 Income (loss) per share - basic: Continuing operations $ 0.18 $ 0.16 $ 1.54 $ 1.51 Discontinued operations 0.06 (0.09 ) (0.23 ) (0.60 ) Net income per share attributable to Dole plc - basic $ 0.24 $ 0.07 $ 1.31 $ 0.91 Income (loss) per share - diluted: Continuing operations $ 0.17 $ 0.16 $ 1.53 $ 1.51 Discontinued operations 0.06 (0.09 ) (0.23 ) (0.60 ) Net income per share attributable to Dole plc - diluted $ 0.23 $ 0.07 $ 1.30 $ 0.91 Weighted-average shares: Basic 94,929 94,899 94,917 94,886 Diluted 95,187 94,928 95,118 94,914 Consolidated Balance Sheets - Unaudited December 31, 2023 December 31, 2022 ASSETS (U.S. Dollars in thousands) Cash and cash equivalents $ 275,580 $ 228,840 Short-term investments 5,899 5,367 Trade receivables, net of allowances for credit losses of $18,360 and $18,001, respectively 538,177 610,384 Grower advance receivables, net of allowances of $19,839 and $15,817, respectively 109,958 106,864 Other receivables, net of allowances of $13,227 and $14,538, respectively 117,069 132,947 Inventories, net of allowances of $4,792 and $4,186, respectively 378,592 394,150 Prepaid expenses 61,724 48,995 Other current assets 17,401 15,034 Fresh Vegetables current assets held for sale 414,457 62,252 Other assets held-for-sale 1,832 645 Total current assets 1,920,689 1,605,478 Long-term investments 15,970 16,498 Investments in unconsolidated affiliates 131,704 124,234 Actively marketed property 13,781 31,007 Property, plant and equipment, net of accumulated depreciation of $444,775 and $375,721, respectively 1,102,234 1,116,124 Operating lease right-of-use assets 340,458 293,658 Goodwill 513,312 497,453 DOLE brand 306,280 306,280 Other intangible assets, net of accumulated amortization of $134,420 and $120,315, respectively 41,232 50,990 Fresh Vegetables non-current assets held for sale — 343,828 Other assets 109,048 142,180 Deferred tax assets, net 66,485 64,112 Total assets $ 4,561,193 $ 4,591,842 LIABILITIES AND EQUITY Accounts payable $ 670,904 $ 640,620 Income taxes payable 22,917 11,558 Accrued liabilities 357,427 381,688 Bank overdrafts 11,488 8,623 Current portion of long-term debt, net 222,940 97,435 Current maturities of operating leases 63,653 57,372 Payroll and other tax 27,791 27,187 Contingent consideration 1,788 1,791 Pension and postretirement benefits 16,570 17,287 Fresh Vegetables current liabilities held for sale 291,342 199,255 Dividends payable and other current liabilities 29,892 17,698 Total current liabilities 1,716,712 1,460,514 Long-term debt, net 845,013 1,127,321 Operating leases, less current maturities 287,991 246,723 Deferred tax liabilities, net 92,653 118,403 Income taxes payable, less current portion 16,664 30,458 Contingent consideration, less current portion 7,327 5,022 Pension and postretirement benefits, less current portion 121,689 124,646 Fresh Vegetables non-current liabilities held for sale — 116,380 Other long-term liabilities 52,295 43,390 Total liabilities $ 3,140,344 $ 3,272,857 Redeemable noncontrolling interests 34,185 32,311 Stockholders’ equity: Common stock — $0.01 par value; 300,000 shares authorized and 94,929 and 94,899 shares outstanding as of December 31, 2023 and December 31, 2022, respectively 949 949 Additional paid-in capital 796,800 795,063 Retained earnings 562,562 469,249 Accumulated other comprehensive loss (110,791 ) (104,133 ) Total equity attributable to Dole plc 1,249,520 1,161,128 Equity attributable to noncontrolling interests 137,144 125,546 Total equity 1,386,664 1,286,674 Total liabilities, redeemable noncontrolling interests and equity $ 4,561,193 $ 4,591,842 Consolidated Statements of Cash Flows - Unaudited Year Ended December 31, 2023 December 31, 2022 Operating Activities (U.S. Dollars in thousands) Net income $ 155,709 $ 111,783 Loss from discontinued operations, net of income taxes 21,818 56,447 Income from continuing operations 177,527 168,230 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 104,168 109,596 Incremental charges on purchase accounting valuation of biological assets and inventory — 41,145 Net gain on sale of assets (54,108 ) (11,784 ) Stock-based compensation expense 6,045 4,500 Equity method earnings (15,191 ) (6,726 ) Amortization of debt discounts and debt issuance costs 6,390 6,213 Deferred tax benefit (12,600 ) (31,061 ) Pension and other postretirement benefit plan expense 7,735 3,151 Dividends received from equity method investees 9,388 9,817 Other 4,268 7,164 Changes in operating assets and liabilities: Receivables, net of allowances 58,794 55,150 Inventories 20,688 (31,685 ) Prepaids, other current assets and other assets (27,521 ) (11,073 ) Accounts payable, accrued liabilities and other liabilities 13,022 10,975 Net cash provided by operating activities - continuing operations 298,605 323,612 Investing Activities Sales of assets 83,557 36,676 Capital expenditures (78,041 ) (85,564 ) Acquisitions, net of cash acquired (1,263 ) (4,886 ) Insurance proceeds 1,054 2,278 Purchases of investments (1,153 ) (458 ) Net sales (purchases) of investments in unconsolidated affiliates 1,013 (3,029 ) Other 57 912 Net cash provided by (used in) investing activities - continuing operations 5,224 (54,071 ) Financing Activities Proceeds from borrowings and overdrafts 1,407,970 1,293,280 Repayments on borrowings and overdrafts (1,576,067 ) (1,411,467 ) Payment of debt issuance costs (44 ) (304 ) Dividends paid to shareholders (30,373 ) (30,364 ) Dividends paid to noncontrolling interests (28,522 ) (21,632 ) Other noncontrolling interest activity, net (1,300 ) — Payments of contingent consideration (1,662 ) (2,909 ) Net cash used in financing activities - continuing operations (229,998 ) (173,396 ) Effect of foreign currency exchange rate changes on cash 5,448 (20,712 ) Net cash used in operating activities - discontinued operations (22,622 ) (84,720 ) Net cash used in investing activities - discontinued operations (8,492 ) (12,434 ) Cash used in discontinued operations, net (31,114 ) (97,154 ) Increase (decrease) in cash and cash equivalents 48,165 (21,721 ) Cash and cash equivalents at beginning of period, including discontinued operations 228,840 250,561 Cash and cash equivalents at end of period, including discontinued operations $ 277,005 $ 228,840 Supplemental cash flow information: Income tax payments, net of refunds $ (63,969 ) $ (50,469 ) Interest payments on borrowings $ (82,367 ) $ (53,404 ) Non-cash Investing and Financing Activities: Accrued property, plant and equipment $ (1,465 ) $ (488 ) 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 Year Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 (U.S. Dollars in thousands) Net income (Reported GAAP) $ 28,934 $ 13,389 $ 155,709 $ 111,783 (Income) loss from discontinued operations, net of income taxes (5,798 ) 8,318 21,818 56,447 Income from continuing operations (Reported GAAP) 23,136 21,707 177,527 168,230 Income tax expense (benefit) 2,987 (4,106 ) 43,591 (25,603 ) Interest expense 18,754 18,245 81,113 56,371 Mark to market losses 5,450 8,868 2,524 3,049 Gain on asset sales (9,139 ) (1,970 ) (52,495 ) (10,316 ) Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole — 681 — 41,145 Cyber-related incident — — 5,321 — Other items4,5 1,833 1,053 2,918 (231 ) Adjustments from equity method investments 4,309 2,614 10,714 7,540 Adjusted EBIT (Non-GAAP) 47,330 47,092 271,213 240,185 Depreciation 24,788 25,159 93,970 98,703 Amortization of intangible assets 2,472 2,645 10,198 10,893 Depreciation and amortization adjustments from equity method investments 2,267 2,616 9,737 10,615 Adjusted EBITDA (Non-GAAP) $ 76,857 $ 77,512 $ 385,118 $ 360,396 4 For the three months ended December 31, 2023, other items is primarily comprised of $1.9 million asset write-downs, net of insurance proceeds and $0.2 million of impairment charges on property, plant and equipment, partially offset by other immaterial items. For the three months ended December 31, 2022, other items is primarily comprised of $0.5 million of net losses on equity method disposals, $0.4 million of impairment charges on property, plant and equipment and other immaterial items. 5 For the year ended December 31, 2023, other items is primarily comprised of $3.0 million of asset write-downs, net of insurance proceeds, $0.2 million of impairment charges on property, plant and equipment, partially offset by other immaterial items. For the year ended December 31, 2022, other items is primarily comprised of $0.9 million of net legal and restructuring adjustments and $0.5 million of insurance proceeds, net of asset write-downs, partially offset by $0.5 million of net losses on equity method acquisitions and disposals, $0.4 million of impairment charges on property, plant and equipment and other immaterial items. 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 Year Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 (U.S. Dollars and shares in thousands, except per share amounts) Net income attributable to Dole plc (Reported GAAP) $ 22,337 $ 6,781 $ 124,063 $ 86,496 (Income) loss from discontinued operations, net of income taxes (5,798 ) 8,318 21,818 56,447 Income from continuing operations attributable to Dole plc 16,539 15,099 145,881 142,943 Amortization of intangible assets 2,472 2,645 10,198 10,893 Mark to market losses 5,450 8,868 2,524 3,049 Gain on asset sales (9,139 ) (1,970 ) (52,495 ) (10,316 ) Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole — 681 — 41,145 Cyber-related incident — — 5,321 — Other items6,7 1,833 1,053 2,918 (231 ) Adjustments from equity method investments 604 662 1,956 2,580 Income tax on items above and discrete tax items (1,709 ) (8,876 ) 5,243 (50,504 ) NCI impact on items above (1,220 ) (898 ) (3,494 ) (3,187 ) Adjusted Net Income for Adjusted EPS calculation (Non-GAAP) $ 14,830 $ 17,264 $ 118,052 $ 136,372 Adjusted earnings per share – basic (Non-GAAP) $ 0.16 $ 0.18 $ 1.24 $ 1.44 Adjusted earnings per share – diluted (Non-GAAP) $ 0.16 $ 0.18 $ 1.24 $ 1.44 Weighted average shares outstanding – basic 94,929 94,899 94,917 94,886 Weighted average shares outstanding – diluted 95,187 94,928 95,118 94,914 6 For the three months ended December 31, 2023, other items is primarily comprised of $1.9 million asset write-downs, net of insurance proceeds and $0.2 million of impairment charges on property, plant and equipment, partially offset by other immaterial items. For the three months ended December 31, 2022, other items is primarily comprised of $0.5 million of net losses on equity method disposals, $0.4 million of impairment charges on property, plant and equipment and other immaterial items. 7 For the year ended December 31, 2023, other items is primarily comprised of $3.0 million of asset write-downs, net of insurance proceeds, $0.2 million of impairment charges on property, plant and equipment, partially offset by other immaterial items. For the year ended December 31, 2022, other items is primarily comprised of $0.9 million of net legal and restructuring adjustments and $0.5 million of insurance proceeds, net of asset write-downs, partially offset by $0.5 million of net losses on equity method acquisitions and disposals, $0.4 million of impairment charges on property, plant and equipment and other immaterial items. 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 December 31, 2023 (U.S. Dollars in thousands) Revenues, net Cost of sales Gross profit Gross Margin % Selling, marketing, general and administration expenses Other operating charges8 Operating Income Reported (GAAP) $ 2,072,255 (1,920,077 ) 152,178 7.3 % (119,334 ) 8,449 $ 41,293 (Income) loss from discontinued operations, net of income taxes — — — — — — Amortization of intangible assets — — — 2,472 — 2,472 Mark to market losses — (189 ) (189 ) — — (189 ) Gain on asset sales — — — — (9,139 ) (9,139 ) Cyber-related incident — — — — — — Other items — 2,120 2,120 (34 ) — 2,086 Adjustments from equity method investments — — — — — — Income tax on items above and discrete tax items — — — — — — NCI impact on items above — — — — — — Adjusted (Non-GAAP) $ 2,072,255 (1,918,146 ) 154,109 7.4 % (116,896 ) (690 ) $ 36,523 8 Other operating charges for the three months ended December 31, 2023 is primarily comprised of a $10.7 million gain on asset sales, partially offset by $2.2 million of impairment charges and asset write-downs of property, plant and equipment, as reported in the consolidated statements of operations. Three Months Ended December 31, 2022 (U.S. Dollars in thousands) Revenues, net Cost of sales Gross profit Gross Margin % Selling, marketing, general and administration expenses Other operating charges9 Operating Income Reported (GAAP) $ 2,042,568 (1,891,456 ) 151,112 7.4 % (112,934 ) 2,149 $ 40,327 (Income) loss from discontinued operations, net of income taxes — — — — — — Amortization of intangible assets — — — 2,645 — 2,645 Mark to market losses — 476 476 — — 476 Gain on asset sales — — — — (1,970 ) (1,970 ) Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole — 681 681 — — 681 Other items — (452 ) (452 ) — 961 509 Adjustments from equity method investments — — — — — — Income tax on items above and discrete tax items — — — — — — NCI impact on items above — — — — — — Adjusted (Non-GAAP) $ 2,042,568 (1,890,751 ) 151,817 7.4 % (110,289 ) 1,140 $ 42,668 9 Other operating charges for the three months ended December 31, 2022 is primarily comprised of a $2.6 million gain on asset sales, partially offset by $0.4 million of impairment charges and asset write-downs of property, plant and equipment, as reported in the consolidated statements of operations. Three Months Ended December 31, 2023 (U.S. Dollars in thousands) Other (expense) income, net Interest income Interest expense Income tax (expense) Equity earnings Income from continuing operations Income from discontinued operations, net of income taxes Reported (GAAP) $ (2,922 ) 2,823 (18,754 ) (2,987 ) 3,683 23,136 $ 5,798 (Income) loss from discontinued operations, net of income taxes — — — — — — (5,798 ) Amortization of intangible assets — — — — — 2,472 — Mark to market losses 5,639 — — — — 5,450 — Gain on asset sales — — — — — (9,139 ) — Cyber-related incident — — — — — — — Other items (253 ) — — — — 1,833 — Adjustments from equity method investments — — — — 604 604 — Income tax on items above and discrete tax items — — — (1,610 ) (99 ) (1,709 ) — NCI impact on items above — — — — — — — Adjusted (Non-GAAP) $ 2,464 2,823 (18,754 ) (4,597 ) 4,188 22,647 $ — Three Months Ended December 31, 2022 (U.S. Dollars in thousands) Other expense, net Interest income Interest expense Income tax benefit (expense) Equity earnings Income from continuing operations Loss from discontinued operations, net of income taxes Reported (GAAP) $ (9,165 ) 1,986 (18,245 ) 4,106 2,698 21,707 $ (8,318 ) (Income) loss from discontinued operations, net of income taxes — — — — — — 8,318 Amortization of intangible assets — — — — — 2,645 — Mark to market losses 8,392 — — — — 8,868 — Gain on asset sales — — — — — (1,970 ) — Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole — — — — — 681 — Other items — — — — 544 1,053 — Adjustments from equity method investments — — — — 662 662 — Income tax on items above and discrete tax items — — — (8,777 ) (99 ) (8,876 ) — NCI impact on items above — — — — — — — Adjusted (Non-GAAP) $ (773 ) 1,986 (18,245 ) (4,671 ) 3,805 24,770 $ — Three Months Ended December 31, 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) $ 28,934 (6,597 ) $ 22,337 $ 0.23 (Income) loss from discontinued operations, net of income taxes (5,798 ) — (5,798 ) Amortization of intangible assets 2,472 — 2,472 Mark to market losses 5,450 — 5,450 Gain on asset sales (9,139 ) — (9,139 ) Cyber-related incident — — — Other items 1,833 — 1,833 Adjustments from equity method investments 604 — 604 Income tax on items above and discrete tax items (1,709 ) — (1,709 ) NCI impact on items above — (1,220 ) (1,220 ) Adjusted (Non-GAAP) $ 22,647 (7,817 ) $ 14,830 $ 0.16 Weighted average shares outstanding – diluted 95,187 Three Months Ended December 31, 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) $ 13,389 (6,608 ) $ 6,781 $ 0.07 (Income) loss from discontinued operations, net of income taxes 8,318 — 8,318 Amortization of intangible assets 2,645 — 2,645 Mark to market losses 8,868 — 8,868 Gain on asset sales (1,970 ) — (1,970 ) Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole 681 — 681 Other items 1,053 — 1,053 Adjustments from equity method investments 662 — 662 Income tax on items above and discrete tax items (8,876 ) — (8,876 ) NCI impact on items above — (898 ) (898 ) Adjusted (Non-GAAP) $ 24,770 (7,506 ) $ 17,264 $ 0.18 Weighted average shares outstanding – diluted 94,928 Year Ended December 31, 2023 (U.S. Dollars in thousands) Revenues, net Cost of sales Gross profit Gross Margin % Selling, marketing, general and administration expenses Other operating charges10 Operating Income Reported (GAAP) $ 8,245,268 (7,551,098 ) 694,170 8.4 % (473,903 ) 51,891 $ 272,158 (Income) loss from discontinued operations, net of income taxes — — — — — — Amortization of intangible assets — — — 10,198 — 10,198 Mark to market losses — (2,638 ) (2,638 ) — — (2,638 ) Gain on asset sales — — — — (52,495 ) (52,495 ) Cyber-related incident — — — 5,321 — 5,321 Other items — 3,205 3,205 (34 ) — 3,171 Adjustments from equity method investments — — — — — — Income tax on items above and discrete tax items — — — — — — NCI impact on items above — — — — — — Adjusted (Non-GAAP) $ 8,245,268 (7,550,531 ) 694,737 8.4 % (458,418 ) (604 ) $ 235,715 10 Other operating charges for the year ended December 31, 2023 is primarily comprised of a $54.1 million gain on asset sales, partially offset by $2.2 million of impairment charges and asset write-downs of property, plant and equipment, as reported in the consolidated statements of operations. Year Ended December 31, 2022 (U.S. Dollars in thousands) Revenues, net Cost of sales Gross profit Gross Margin % Selling, marketing, general and administration expenses Other operating charges11 Operating Income Reported (GAAP) $ 8,024,403 (7,424,525 ) 599,878 7.5 % (436,192 ) 11,579 $ 175,265 (Income) loss from discontinued operations, net of income taxes — — — — — — Amortization of intangible assets — — — 10,893 — 10,893 Mark to market losses — 2,848 2,848 — — 2,848 Gain on asset sales — — — — (10,316 ) (10,316 ) Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole — 41,145 41,145 — — 41,145 Other items — (452 ) (452 ) (910 ) 587 (775 ) Adjustments from equity method investments — — — — — — Income tax on items above and discrete tax items — — — — — — NCI impact on items above — — — — — — Adjusted (Non-GAAP) $ 8,024,403 (7,380,984 ) 643,419 8.0 % (426,209 ) 1,850 $ 219,060 11 Other operating charges for the year ended December 31, 2022 is primarily comprised of a $11.8 million gain on asset sales, partially offset by $0.4 million of impairment charges and asset write-downs of property, plant and equipment, as reported in the consolidated statements of operations. Year Ended December 31, 2023 (U.S. Dollars in thousands) Other income, net Interest income Interest expense Income tax (expense) Equity earnings Income from continuing operations Loss from discontinued operations, net of income taxes Reported (GAAP) $ 4,799 10,083 (81,113 ) (43,591 ) 15,191 177,527 $ (21,818 ) (Income) loss from discontinued operations, net of income taxes — — — — — — 21,818 Amortization of intangible assets — — — — — 10,198 — Mark to market losses 5,162 — — — — 2,524 — Gain on asset sales — — — — — (52,495 ) — Cyber-related incident — — — — — 5,321 — Other items (253 ) — — — — 2,918 — Adjustments from equity method investments — — — — 1,956 1,956 — Income tax on items above and discrete tax items — — — 5,643 (400 ) 5,243 — NCI impact on items above — — — — — — — Adjusted (Non-GAAP) $ 9,708 10,083 (81,113 ) (37,948 ) 16,747 153,192 $ — Year Ended December 31, 2022 (U.S. Dollars in thousands) Other income, net Interest income Interest expense Income tax expense Equity earnings Income from continuing operations Loss from discontinued operations, net of income taxes Reported (GAAP) $ 10,600 6,407 (56,371 ) 25,603 6,726 168,230 $ (56,447 ) (Income) loss from discontinued operations, net of income taxes — — — — — — 56,447 Amortization of intangible assets — — — — — 10,893 — Mark to market losses 201 — — — — 3,049 — Gain on asset sales — — — — — (10,316 ) — Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole — — — — — 41,145 — Other items — — — — 544 (231 ) — Adjustments from equity method investments — — — — 2,580 2,580 — Income tax on items above and discrete tax items — — — (50,097 ) (407 ) (50,504 ) — NCI impact on items above — — — — — — — Adjusted (Non-GAAP) $ 10,801 6,407 (56,371 ) (24,494 ) 9,443 164,846 $ — Year Ended December 31, 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) $ 155,709 (31,646 ) $ 124,063 $ 1.30 (Income) loss from discontinued operations, net of income taxes 21,818 — 21,818 Amortization of intangible assets 10,198 — 10,198 Mark to market losses 2,524 — 2,524 Gain on asset sales (52,495 ) — (52,495 ) Cyber-related incident 5,321 — 5,321 Other items 2,918 — 2,918 Adjustments from equity method investments 1,956 — 1,956 Income tax on items above and discrete tax items 5,243 — 5,243 NCI impact on items above — (3,494 ) (3,494 ) Adjusted (Non-GAAP) $ 153,192 (35,140 ) $ 118,052 $ 1.24 Weighted average shares outstanding – diluted 95,118 Year Ended December 31, 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) $ 111,783 (25,287 ) $ 86,496 $ 0.91 (Income) loss from discontinued operations, net of income taxes 56,447 — 56,447 Amortization of intangible assets 10,893 — 10,893 Mark to market losses 3,049 — 3,049 Gain on asset sales (10,316 ) — (10,316 ) Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole 41,145 — 41,145 Other items (231 ) — (231 ) Adjustments from equity method investments 2,580 — 2,580 Income tax on items above and discrete tax items (50,504 ) — (50,504 ) NCI impact on items above — (3,187 ) (3,187 ) Adjusted (Non-GAAP) $ 164,846 (28,474 ) $ 136,372 $ 1.44 Weighted average shares outstanding – diluted 94,914 Supplemental Reconciliation of Prior Year Segment Results to Current Year Segment Results – Unaudited Revenue for the Three Months Ended December 31, 2022 Impact of Foreign Currency Translation Impact of Acquisitions and Divestitures Like-for-like Increase (Decrease) December 31, 2023 (U.S. Dollars in thousands) Fresh Fruit $ 740,167 $ — $ — $ 8,536 $ 748,703 Diversified Fresh Produce - EMEA 751,594 33,388 12,170 65,713 862,865 Diversified Fresh Produce - Americas & ROW 573,936 55 — (84,230 ) 489,761 Intersegment (23,129 ) — — (5,945 ) (29,074 ) Total $ 2,042,568 $ 33,443 $ 12,170 $ (15,926 ) $ 2,072,255 Adjusted EBITDA for the Three Months Ended December 31, 2022 Impact of Foreign Currency Translation Impact of Acquisitions and Divestitures Like-for-like Increase (Decrease) December 31, 2023 (U.S. Dollars in thousands) Fresh Fruit $ 39,460 $ (82 ) $ — $ (10,586 ) $ 28,792 Diversified Fresh Produce - EMEA 22,656 1,132 376 8,474 32,638 Diversified Fresh Produce - Americas & ROW 15,396 (15 ) (529 ) 575 15,427 Total $ 77,512 $ 1,035 $ (153 ) $ (1,537 ) $ 76,857 Revenue for the Year Ended December 31, 2022 Impact of Foreign Currency Translation Impact of Acquisitions and Divestitures Like-for-like Increase (Decrease) December 31, 2023 (U.S. Dollars in thousands) Fresh Fruit $ 3,047,149 $ — $ — $ 88,717 $ 3,135,866 Diversified Fresh Produce - EMEA 3,152,561 33,200 35,812 211,372 3,432,945 Diversified Fresh Produce - Americas & ROW 1,965,667 (6,469 ) — (159,030 ) 1,800,168 Intersegment (140,974 ) — 17,263 (123,711 ) Total $ 8,024,403 $ 26,731 $ 35,812 $ 158,322 $ 8,245,268 Adjusted EBITDA for the Year Ended December 31, 2022 Impact of Foreign Currency Translation Impact of Acquisitions and Divestitures Like-for-like Increase (Decrease) December 31, 2023 (U.S. Dollars in thousands) Fresh Fruit $ 205,547 $ (412 ) $ — $ 3,795 $ 208,930 Diversified Fresh Produce - EMEA 111,053 1,345 1,834 19,338 133,570 Diversified Fresh Produce - Americas & ROW 43,796 (260 ) 969 (1,887 ) 42,618 Total $ 360,396 $ 673 $ 2,803 $ 21,246 $ 385,118 Net Debt Reconciliation – Unaudited 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 December 31, 2023 is presented below. Net Debt as of December 31, 2023 was $0.8 billion. December 31, 2023 December 31, 2022 (U.S. Dollars in thousands) Cash and cash equivalents (Reported GAAP) $ 275,580 $ 228,840 Debt (Reported GAAP): Long-term debt, net (845,013 ) (1,127,321 ) Current maturities (222,940 ) (97,435 ) Bank overdrafts (11,488 ) (8,623 ) Total debt, net (1,079,441 ) (1,233,379 ) Less: Debt discounts and debt issuance costs (Reported GAAP) (14,395 ) (17,874 ) Total gross debt (1,093,836 ) (1,251,253 ) Net Debt (Non-GAAP) $ (818,256 ) $ (1,022,413 ) Free Cash Flow from Continuing Operations Reconciliation – Unaudited Year Ended December 31, 2023 December 31, 2022 (U.S. Dollars in thousands) Net cash provided by operating activities - continuing operations (Reported GAAP) $ 298,605 $ 323,612 Less: Capital expenditures (Reported GAAP)12 (78,041 ) (85,564 ) Free cash flow from continuing operations (Non-GAAP) $ 220,564 $ 238,048 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) adding the loss or subtracting the income 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 years ended December 31, 2023 and December 31, 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 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, adding impairment charges on property, plant and equipment, adding restructuring charges and costs for legal matters not in the ordinary course of business 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 years ended December 31, 2023 and December 31, 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 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, adding impairment charges on property, plant and equipment, adding restructuring charges and costs for legal matters not in the ordinary course of business 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 years ended December 31, 2023 and December 31, 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 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, adding impairment charges on property, plant and equipment, adding restructuring charges and costs for legal matters not in the ordinary course of business 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 provided by operating activities for continuing operations less GAAP capital expenditures. Like-for-like basis refers to the U.S. GAAP measure or non-GAAP financial measure excluding the impact of foreign currency translation movements and acquisitions and divestitures. Dole is not able to provide a reconciliation for projected FY'24 results without taking unreasonable efforts. View source version on businesswire.com: https://www.businesswire.com/news/home/20240229620633/en/Contacts Investor Contact: James O'Regan, Head of Investor Relations, Dole plc joregan@totalproduce.com +353 1 887 2794 Media Contact: Brian Bell, Ogilvy brian.bell@ogilvy.com +353 87 2436 130
Dole plc (NYSE: DOLE) ("Dole" or the "Group" or the "Company") today released its financial results for the three months and year ended December 31, 2023. Highlights for the year ended December 31, 2023: Very strong full year results achieved following a year of good momentum for the Group Revenue of $8.2 billion, an increase of 2.8% Net income of $155.7 million, an increase of 39.3%, and Diluted EPS of $1.30 Adjusted EBITDA1 of $385.1 million, an increase of $24.7 million, or 6.9% Adjusted Net Income of $118.1 million and Adjusted Diluted EPS of $1.24 Free Cash Flow from Continuing Operations of $220.6 million Net Debt of $818.3 million, a reduction of $204.2 million Financial Highlights - Unaudited Three Months Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 (U.S. Dollars in millions, except per share amounts) Revenue 2,072 2,043 8,245 8,024 Income from Continuing Operations2 23.1 21.7 177.5 168.2 Net Income 28.9 13.4 155.7 111.8 Net Income attributable to Dole plc 22.3 6.8 124.1 86.5 Diluted EPS from Continuing Operations 0.17 0.16 1.53 1.51 Diluted EPS 0.23 0.07 1.30 0.91 Adjusted EBITDA1 76.9 77.5 385.1 360.4 Adjusted Net Income1 14.8 17.3 118.1 136.4 Adjusted Diluted EPS1 0.16 0.18 1.24 1.44 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, 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. 2 Fresh Vegetables results are reported separately as discontinued operations, net of income taxes, in our consolidated statements of operations, its assets and liabilities are separately presented in our consolidated balance sheets, and its cash flows are presented separately in our 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: “2023 was a year of positive development for the Group. We are very pleased with our strong full year results, delivering Adjusted EBITDA growth of 6.9% and reducing our net debt by over $200 million. Earlier this week, we announced an agreement to sell our 65% equity stake in Progressive Produce to Arable Capital Partners. The proceeds from this sale will be used to further strengthen our financial position and increase our focus on our core activities. We believe our business is well positioned to deliver another good result in 2024, and at this early stage of the year, our target is to deliver full year Adjusted EBITDA in line with 2023 on a like-for-like basis. Our results in 2023 would not be possible without the efforts of our people, and we extend thanks to everyone for their continued dedication and contributions during this past year.” Group Results - Fourth Quarter Revenue increased 1.5%, or $29.7 million, primarily due to a positive impact from foreign currency translation of $33.4 million, a net positive impact from acquisitions and divestitures of $12.2 million and an increase in revenue in the Diversified EMEA segment on a like-for-like basis3. Excluding the impact of foreign currency translation and acquisitions and divestitures, on a like-for-like basis, Group revenue decreased 0.8%, or $15.9 million, driven partially by lower revenue in the Diversified Americas segment. Adjusted EBITDA decreased 0.8%, or $0.7 million, primarily driven by a decrease for the Fresh Fruit segment against a very strong prior year comparative, partially offset by a strong performance in the Diversified EMEA segment. On a like-for-like basis, Adjusted EBITDA decreased 2.0%, or $1.5 million. Adjusted Net Income decreased $2.4 million, predominantly due to the decreases in Adjusted EBITDA and higher interest expense. Adjusted Diluted EPS was $0.16 compared to $0.18 in the prior year. Group Results - Full Year Revenue increased 2.8%, or $220.9 million, and, on a like-for-like basis, revenue increased 2.0%, or $158.3 million. The increase was driven by increases in the Diversified EMEA and Fresh Fruit segments primarily as a result of inflation-justified price increases, a positive impact from foreign currency translation of $26.7 million and a net positive impact from acquisitions and divestitures of $35.8 million. These positive impacts were partially offset by lower revenue in the Diversified Americas segment. Adjusted EBITDA increased 6.9%, or $24.7 million, primarily due to stronger performance in the Diversified EMEA and Fresh Fruit segments, partially offset by a lower result in the Diversified Americas segment due to seasonal timing differences in the Chilean cherry season. On a like-for-like basis, Adjusted EBITDA increased 5.9%, or $21.2 million. Adjusted Net Income decreased by $18.3 million, predominantly due to higher interest expense and tax expense, partially offset by the increases in Adjusted EBITDA as noted above and lower depreciation expense. Adjusted Diluted EPS for the year ended December 31, 2023 was $1.24 compared to $1.44 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 December 31, 2023 December 31, 2022 (U.S. Dollars in thousands) Revenue Adjusted EBITDA Revenue Adjusted EBITDA Fresh Fruit $ 748,703 $ 28,792 $ 740,167 $ 39,460 Diversified Fresh Produce - EMEA 862,865 32,638 751,594 22,656 Diversified Fresh Produce - Americas & ROW 489,761 15,427 573,936 15,396 Intersegment (29,074 ) — (23,129 ) — Total $ 2,072,255 $ 76,857 $ 2,042,568 $ 77,512 Year Ended December 31, 2023 December 31, 2022 (U.S. Dollars in thousands) Revenue Adjusted EBITDA Revenue Adjusted EBITDA Fresh Fruit $ 3,135,866 $ 208,930 $ 3,047,149 $ 205,547 Diversified Fresh Produce - EMEA 3,432,945 133,570 3,152,561 111,053 Diversified Fresh Produce - Americas & ROW 1,800,168 42,618 1,965,667 43,796 Intersegment (123,711 ) — (140,974 ) — Total $ 8,245,268 $ 385,118 $ 8,024,403 $ 360,396 Fourth Quarter Commentary Fresh Fruit Revenue increased 1.2%, or $8.5 million, compared to the prior year quarter. The increase was primarily due to higher worldwide volumes of bananas sold, an increase in banana pricing in Europe and an increase in worldwide pricing of pineapples. These increases were offset in part by lower banana prices in North America and less worldwide volumes of pineapples sold. Adjusted EBITDA decreased by 27.0%, or $10.7 million. The decrease was primarily due to higher fruit sourcing costs in bananas, as well as weaker performance in our commercial cargo business and other diversified products. Diversified Fresh Produce – EMEA Revenue increased 14.8%, or $111.3 million, primarily driven by inflation-justified price increases across the segment, a positive impact from foreign currency translation of $33.4 million due to the strengthening of the Euro and British pound sterling against the U.S. Dollar and a net positive impact from acquisitions and divestitures of $12.2 million. On a like-for-like basis, revenue increased 8.7%, or $65.7 million. Adjusted EBITDA increased 44.1%, or $10.0 million. The increase in Adjusted EBITDA was as a result of strong performance across the segment, particularly within the Dutch, Swedish and South African businesses, as well as a net favorable impact from acquisition and divestitures of $0.4 million and a positive impact from foreign currency translation of $1.1 million. On a like-for-like basis, Adjusted EBITDA increased 37.4%, or $8.5 million. Diversified Fresh Produce – Americas & ROW Revenue decreased 14.7%, or $84.2 million, primarily due to lower volumes of cherries due to seasonal timing differences, as well as continued challenging performance for the berry category in North America, partially offset by inflation-justified price increases and continued strong performance for potatoes and onions in North America. Adjusted EBITDA increased marginally by 0.2%, driven primarily by significant recoveries in profitability for apples and, to a lesser extent, kiwis, after a challenging 2022, mostly offset by the impact of seasonal timing differences in the Chilean cherry season, as well as by a challenging performance for the berry category in North America. Full Year Commentary Fresh Fruit Revenue increased 2.9%, or $88.7 million, predominantly driven by higher worldwide pricing of bananas and pineapples and an increase in worldwide volumes of bananas sold, partially offset by lower worldwide volumes of pineapples sold. Adjusted EBITDA increased 1.6%, or $3.4 million. Adjusted EBITDA was positively impacted by strong revenue performance, partially offset by higher fruit sourcing costs, an increase in materials and handling costs and lower profit from the commercial cargo business. Diversified Fresh Produce – EMEA Revenue increased 8.9%, or $280.4 million, primarily driven by inflation-justified price increases across the segment, a net positive impact from acquisitions and divestitures of $35.8 million and a positive impact from foreign currency translation of $33.2 million, as a result of the strengthening of the Euro and British pound sterling against the U.S. Dollar, partly offset by the weakening of the Swedish krona against the U.S. Dollar. On a like-for-like basis, revenue increased 6.7%, or $211.4 million. Adjusted EBITDA increased 20.3%, or $22.5 million. The increase was primarily due to strong performance across the segment, particularly within the Spanish, Dutch, Czech and South African businesses, as well as a net favorable impact from acquisitions and divestitures of $1.8 million. Excluding the impact of foreign currency translation and acquisition and divestitures, Adjusted EBITDA was 17.4%, or $19.3 million, ahead of the prior year. Diversified Fresh Produce – Americas & ROW Revenue decreased 8.4%, or $165.5 million, primarily due to lower volumes of most commodities sold, particularly in cherries, as well as in berries, grapes and apples, partially offset by inflation-justified price increases, a strong recovery in pricing of grapes and apples after a challenging 2022 and continued strong performance for potatoes and onions in North America. Adjusted EBITDA decreased 2.7%, or $1.2 million, primarily due to a weak performance for the North American berry business and lower profits in the Chilean cherry business due to seasonal timing differences, partially offset by strong recovery in Chilean apples and grapes after challenging seasons in 2022 and by strong trading activity for most other products that we market in North America, particularly for potatoes and onions. Capital Expenditures Capital expenditures for the year ended December 31, 2023 were $78.0 million and included investments in farm renovations and ongoing investments in IT, logistics and efficiency projects in our warehouses and processing facilities. This amount only includes capital expenditures from continuing operations and also excludes non-cash finance lease additions of $8.9 million for the year ended December 31, 2023. Sales of Assets Sales of assets for the year ended December 31, 2023 were $83.6 million, compared to $36.7 million for the year ended December 31, 2022. These sales resulted in a gain on asset sales of $54.1 million for the year ended December 31, 2023, compared to $11.8 million for the year ended December 31, 2022. The increase was driven by $44.0 million of cash proceeds received from the sale of idle land in Hawaii during the third quarter of 2023, as well as $14.0 million of cash proceeds received from the sale of a cooler in California during the fourth quarter of 2023. Free Cash Flow from Continuing Operations and Net Debt Free Cash Flow from Continuing Operations was $220.6 million for the year ended December 31, 2023. Free Cash Flow from Continuing Operations benefited from strong Adjusted EBITDA performance and good working capital management across the Group over the course of the year. In particular, in the fourth quarter, we benefited from a strong seasonal working capital inflow. At the end of the year, Net Debt was $0.8 billion, a reduction from $1.0 billion as of December 31, 2022. Progressive Produce Transaction On February 27, 2024, we entered into a stock purchase agreement with PTF Holdings, LLC, the parent company of Pacific Trellis Fruit, LLC, to sell our 65% equity stake in Progressive Produce LLC for gross cash consideration of $120.2 million. PTF Holdings, LLC is a portfolio company of Arable Capital Partners, LLC. This transaction is expected to close in March 2024, subject to the satisfaction of customary closing conditions. Outlook for Fiscal Year 2024 (forward-looking statement) We are pleased with the Group's exceptional performance in 2023, delivering $385.1 million of Adjusted EBITDA from continuing operations. The result gives the Group a strong starting point from which to build further momentum in the 2024 financial year. As we move through 2024, the operating environment continues to present new challenges as well as opportunities. On the macro-economic side, we have been pleased that inflation has continued to moderate across our key operating regions. We are also pleased by the relative stability being seen in some key foreign exchange rates, energy prices and, more recently, in interest rates. While forecasting in this environment remains complex, overall, we believe our business is well positioned to deliver another good result in 2024. Given our strong 2023 overperformance, our target at this early stage of the year is to deliver full year Adjusted EBITDA in line with 2023 on a like-for-like basis. For fiscal year 2024, we are guiding capital expenditure from continuing operations to be in the range of $110 - $120 million. Dividend On February 28, 2024, the Board of Directors of Dole plc declared a cash dividend for the fourth quarter of 2023 of $0.08 per share, payable on April 4, 2024 to shareholders of record on March 21, 2024. A cash dividend of $0.08 per share was paid on January 4, 2024 for the third 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 fourth quarter and full year 2023 financial results. The webcast can be accessed at www.doleplc.com/investors. 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 2525779. 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 Consolidated Statements of Operations - Unaudited Three Months Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 (U.S. Dollars and shares in thousands, except per share amounts) Revenues, net $ 2,072,255 $ 2,042,568 $ 8,245,268 $ 8,024,403 Cost of sales (1,920,077 ) (1,891,456 ) (7,551,098 ) (7,424,525 ) Gross profit 152,178 151,112 694,170 599,878 Selling, marketing, general and administrative expenses (119,334 ) (112,934 ) (473,903 ) (436,192 ) Gain on disposal of businesses — (50 ) — 192 Impairment and asset write-downs of property, plant and equipment (2,217 ) (397 ) (2,217 ) (397 ) Gain on asset sales 10,666 2,596 54,108 11,784 Operating income 41,293 40,327 272,158 175,265 Other (expense) income, net (2,922 ) (9,165 ) 4,799 10,600 Interest income 2,823 1,986 10,083 6,407 Interest expense (18,754 ) (18,245 ) (81,113 ) (56,371 ) Income from continuing operations before income taxes and equity earnings 22,440 14,903 205,927 135,901 Income tax (expense) benefit (2,987 ) 4,106 (43,591 ) 25,603 Equity method earnings 3,683 2,698 15,191 6,726 Income from continuing operations 23,136 21,707 177,527 168,230 Income (loss) from discontinued operations, net of income taxes 5,798 (8,318 ) (21,818 ) (56,447 ) Net income 28,934 13,389 155,709 111,783 Less: Net income attributable to noncontrolling interests (6,597 ) (6,608 ) (31,646 ) (25,287 ) Net income attributable to Dole plc $ 22,337 $ 6,781 $ 124,063 $ 86,496 Income (loss) per share - basic: Continuing operations $ 0.18 $ 0.16 $ 1.54 $ 1.51 Discontinued operations 0.06 (0.09 ) (0.23 ) (0.60 ) Net income per share attributable to Dole plc - basic $ 0.24 $ 0.07 $ 1.31 $ 0.91 Income (loss) per share - diluted: Continuing operations $ 0.17 $ 0.16 $ 1.53 $ 1.51 Discontinued operations 0.06 (0.09 ) (0.23 ) (0.60 ) Net income per share attributable to Dole plc - diluted $ 0.23 $ 0.07 $ 1.30 $ 0.91 Weighted-average shares: Basic 94,929 94,899 94,917 94,886 Diluted 95,187 94,928 95,118 94,914 Consolidated Balance Sheets - Unaudited December 31, 2023 December 31, 2022 ASSETS (U.S. Dollars in thousands) Cash and cash equivalents $ 275,580 $ 228,840 Short-term investments 5,899 5,367 Trade receivables, net of allowances for credit losses of $18,360 and $18,001, respectively 538,177 610,384 Grower advance receivables, net of allowances of $19,839 and $15,817, respectively 109,958 106,864 Other receivables, net of allowances of $13,227 and $14,538, respectively 117,069 132,947 Inventories, net of allowances of $4,792 and $4,186, respectively 378,592 394,150 Prepaid expenses 61,724 48,995 Other current assets 17,401 15,034 Fresh Vegetables current assets held for sale 414,457 62,252 Other assets held-for-sale 1,832 645 Total current assets 1,920,689 1,605,478 Long-term investments 15,970 16,498 Investments in unconsolidated affiliates 131,704 124,234 Actively marketed property 13,781 31,007 Property, plant and equipment, net of accumulated depreciation of $444,775 and $375,721, respectively 1,102,234 1,116,124 Operating lease right-of-use assets 340,458 293,658 Goodwill 513,312 497,453 DOLE brand 306,280 306,280 Other intangible assets, net of accumulated amortization of $134,420 and $120,315, respectively 41,232 50,990 Fresh Vegetables non-current assets held for sale — 343,828 Other assets 109,048 142,180 Deferred tax assets, net 66,485 64,112 Total assets $ 4,561,193 $ 4,591,842 LIABILITIES AND EQUITY Accounts payable $ 670,904 $ 640,620 Income taxes payable 22,917 11,558 Accrued liabilities 357,427 381,688 Bank overdrafts 11,488 8,623 Current portion of long-term debt, net 222,940 97,435 Current maturities of operating leases 63,653 57,372 Payroll and other tax 27,791 27,187 Contingent consideration 1,788 1,791 Pension and postretirement benefits 16,570 17,287 Fresh Vegetables current liabilities held for sale 291,342 199,255 Dividends payable and other current liabilities 29,892 17,698 Total current liabilities 1,716,712 1,460,514 Long-term debt, net 845,013 1,127,321 Operating leases, less current maturities 287,991 246,723 Deferred tax liabilities, net 92,653 118,403 Income taxes payable, less current portion 16,664 30,458 Contingent consideration, less current portion 7,327 5,022 Pension and postretirement benefits, less current portion 121,689 124,646 Fresh Vegetables non-current liabilities held for sale — 116,380 Other long-term liabilities 52,295 43,390 Total liabilities $ 3,140,344 $ 3,272,857 Redeemable noncontrolling interests 34,185 32,311 Stockholders’ equity: Common stock — $0.01 par value; 300,000 shares authorized and 94,929 and 94,899 shares outstanding as of December 31, 2023 and December 31, 2022, respectively 949 949 Additional paid-in capital 796,800 795,063 Retained earnings 562,562 469,249 Accumulated other comprehensive loss (110,791 ) (104,133 ) Total equity attributable to Dole plc 1,249,520 1,161,128 Equity attributable to noncontrolling interests 137,144 125,546 Total equity 1,386,664 1,286,674 Total liabilities, redeemable noncontrolling interests and equity $ 4,561,193 $ 4,591,842 Consolidated Statements of Cash Flows - Unaudited Year Ended December 31, 2023 December 31, 2022 Operating Activities (U.S. Dollars in thousands) Net income $ 155,709 $ 111,783 Loss from discontinued operations, net of income taxes 21,818 56,447 Income from continuing operations 177,527 168,230 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 104,168 109,596 Incremental charges on purchase accounting valuation of biological assets and inventory — 41,145 Net gain on sale of assets (54,108 ) (11,784 ) Stock-based compensation expense 6,045 4,500 Equity method earnings (15,191 ) (6,726 ) Amortization of debt discounts and debt issuance costs 6,390 6,213 Deferred tax benefit (12,600 ) (31,061 ) Pension and other postretirement benefit plan expense 7,735 3,151 Dividends received from equity method investees 9,388 9,817 Other 4,268 7,164 Changes in operating assets and liabilities: Receivables, net of allowances 58,794 55,150 Inventories 20,688 (31,685 ) Prepaids, other current assets and other assets (27,521 ) (11,073 ) Accounts payable, accrued liabilities and other liabilities 13,022 10,975 Net cash provided by operating activities - continuing operations 298,605 323,612 Investing Activities Sales of assets 83,557 36,676 Capital expenditures (78,041 ) (85,564 ) Acquisitions, net of cash acquired (1,263 ) (4,886 ) Insurance proceeds 1,054 2,278 Purchases of investments (1,153 ) (458 ) Net sales (purchases) of investments in unconsolidated affiliates 1,013 (3,029 ) Other 57 912 Net cash provided by (used in) investing activities - continuing operations 5,224 (54,071 ) Financing Activities Proceeds from borrowings and overdrafts 1,407,970 1,293,280 Repayments on borrowings and overdrafts (1,576,067 ) (1,411,467 ) Payment of debt issuance costs (44 ) (304 ) Dividends paid to shareholders (30,373 ) (30,364 ) Dividends paid to noncontrolling interests (28,522 ) (21,632 ) Other noncontrolling interest activity, net (1,300 ) — Payments of contingent consideration (1,662 ) (2,909 ) Net cash used in financing activities - continuing operations (229,998 ) (173,396 ) Effect of foreign currency exchange rate changes on cash 5,448 (20,712 ) Net cash used in operating activities - discontinued operations (22,622 ) (84,720 ) Net cash used in investing activities - discontinued operations (8,492 ) (12,434 ) Cash used in discontinued operations, net (31,114 ) (97,154 ) Increase (decrease) in cash and cash equivalents 48,165 (21,721 ) Cash and cash equivalents at beginning of period, including discontinued operations 228,840 250,561 Cash and cash equivalents at end of period, including discontinued operations $ 277,005 $ 228,840 Supplemental cash flow information: Income tax payments, net of refunds $ (63,969 ) $ (50,469 ) Interest payments on borrowings $ (82,367 ) $ (53,404 ) Non-cash Investing and Financing Activities: Accrued property, plant and equipment $ (1,465 ) $ (488 ) 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 Year Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 (U.S. Dollars in thousands) Net income (Reported GAAP) $ 28,934 $ 13,389 $ 155,709 $ 111,783 (Income) loss from discontinued operations, net of income taxes (5,798 ) 8,318 21,818 56,447 Income from continuing operations (Reported GAAP) 23,136 21,707 177,527 168,230 Income tax expense (benefit) 2,987 (4,106 ) 43,591 (25,603 ) Interest expense 18,754 18,245 81,113 56,371 Mark to market losses 5,450 8,868 2,524 3,049 Gain on asset sales (9,139 ) (1,970 ) (52,495 ) (10,316 ) Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole — 681 — 41,145 Cyber-related incident — — 5,321 — Other items4,5 1,833 1,053 2,918 (231 ) Adjustments from equity method investments 4,309 2,614 10,714 7,540 Adjusted EBIT (Non-GAAP) 47,330 47,092 271,213 240,185 Depreciation 24,788 25,159 93,970 98,703 Amortization of intangible assets 2,472 2,645 10,198 10,893 Depreciation and amortization adjustments from equity method investments 2,267 2,616 9,737 10,615 Adjusted EBITDA (Non-GAAP) $ 76,857 $ 77,512 $ 385,118 $ 360,396 4 For the three months ended December 31, 2023, other items is primarily comprised of $1.9 million asset write-downs, net of insurance proceeds and $0.2 million of impairment charges on property, plant and equipment, partially offset by other immaterial items. For the three months ended December 31, 2022, other items is primarily comprised of $0.5 million of net losses on equity method disposals, $0.4 million of impairment charges on property, plant and equipment and other immaterial items. 5 For the year ended December 31, 2023, other items is primarily comprised of $3.0 million of asset write-downs, net of insurance proceeds, $0.2 million of impairment charges on property, plant and equipment, partially offset by other immaterial items. For the year ended December 31, 2022, other items is primarily comprised of $0.9 million of net legal and restructuring adjustments and $0.5 million of insurance proceeds, net of asset write-downs, partially offset by $0.5 million of net losses on equity method acquisitions and disposals, $0.4 million of impairment charges on property, plant and equipment and other immaterial items. 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 Year Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 (U.S. Dollars and shares in thousands, except per share amounts) Net income attributable to Dole plc (Reported GAAP) $ 22,337 $ 6,781 $ 124,063 $ 86,496 (Income) loss from discontinued operations, net of income taxes (5,798 ) 8,318 21,818 56,447 Income from continuing operations attributable to Dole plc 16,539 15,099 145,881 142,943 Amortization of intangible assets 2,472 2,645 10,198 10,893 Mark to market losses 5,450 8,868 2,524 3,049 Gain on asset sales (9,139 ) (1,970 ) (52,495 ) (10,316 ) Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole — 681 — 41,145 Cyber-related incident — — 5,321 — Other items6,7 1,833 1,053 2,918 (231 ) Adjustments from equity method investments 604 662 1,956 2,580 Income tax on items above and discrete tax items (1,709 ) (8,876 ) 5,243 (50,504 ) NCI impact on items above (1,220 ) (898 ) (3,494 ) (3,187 ) Adjusted Net Income for Adjusted EPS calculation (Non-GAAP) $ 14,830 $ 17,264 $ 118,052 $ 136,372 Adjusted earnings per share – basic (Non-GAAP) $ 0.16 $ 0.18 $ 1.24 $ 1.44 Adjusted earnings per share – diluted (Non-GAAP) $ 0.16 $ 0.18 $ 1.24 $ 1.44 Weighted average shares outstanding – basic 94,929 94,899 94,917 94,886 Weighted average shares outstanding – diluted 95,187 94,928 95,118 94,914 6 For the three months ended December 31, 2023, other items is primarily comprised of $1.9 million asset write-downs, net of insurance proceeds and $0.2 million of impairment charges on property, plant and equipment, partially offset by other immaterial items. For the three months ended December 31, 2022, other items is primarily comprised of $0.5 million of net losses on equity method disposals, $0.4 million of impairment charges on property, plant and equipment and other immaterial items. 7 For the year ended December 31, 2023, other items is primarily comprised of $3.0 million of asset write-downs, net of insurance proceeds, $0.2 million of impairment charges on property, plant and equipment, partially offset by other immaterial items. For the year ended December 31, 2022, other items is primarily comprised of $0.9 million of net legal and restructuring adjustments and $0.5 million of insurance proceeds, net of asset write-downs, partially offset by $0.5 million of net losses on equity method acquisitions and disposals, $0.4 million of impairment charges on property, plant and equipment and other immaterial items. 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 December 31, 2023 (U.S. Dollars in thousands) Revenues, net Cost of sales Gross profit Gross Margin % Selling, marketing, general and administration expenses Other operating charges8 Operating Income Reported (GAAP) $ 2,072,255 (1,920,077 ) 152,178 7.3 % (119,334 ) 8,449 $ 41,293 (Income) loss from discontinued operations, net of income taxes — — — — — — Amortization of intangible assets — — — 2,472 — 2,472 Mark to market losses — (189 ) (189 ) — — (189 ) Gain on asset sales — — — — (9,139 ) (9,139 ) Cyber-related incident — — — — — — Other items — 2,120 2,120 (34 ) — 2,086 Adjustments from equity method investments — — — — — — Income tax on items above and discrete tax items — — — — — — NCI impact on items above — — — — — — Adjusted (Non-GAAP) $ 2,072,255 (1,918,146 ) 154,109 7.4 % (116,896 ) (690 ) $ 36,523 8 Other operating charges for the three months ended December 31, 2023 is primarily comprised of a $10.7 million gain on asset sales, partially offset by $2.2 million of impairment charges and asset write-downs of property, plant and equipment, as reported in the consolidated statements of operations. Three Months Ended December 31, 2022 (U.S. Dollars in thousands) Revenues, net Cost of sales Gross profit Gross Margin % Selling, marketing, general and administration expenses Other operating charges9 Operating Income Reported (GAAP) $ 2,042,568 (1,891,456 ) 151,112 7.4 % (112,934 ) 2,149 $ 40,327 (Income) loss from discontinued operations, net of income taxes — — — — — — Amortization of intangible assets — — — 2,645 — 2,645 Mark to market losses — 476 476 — — 476 Gain on asset sales — — — — (1,970 ) (1,970 ) Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole — 681 681 — — 681 Other items — (452 ) (452 ) — 961 509 Adjustments from equity method investments — — — — — — Income tax on items above and discrete tax items — — — — — — NCI impact on items above — — — — — — Adjusted (Non-GAAP) $ 2,042,568 (1,890,751 ) 151,817 7.4 % (110,289 ) 1,140 $ 42,668 9 Other operating charges for the three months ended December 31, 2022 is primarily comprised of a $2.6 million gain on asset sales, partially offset by $0.4 million of impairment charges and asset write-downs of property, plant and equipment, as reported in the consolidated statements of operations. Three Months Ended December 31, 2023 (U.S. Dollars in thousands) Other (expense) income, net Interest income Interest expense Income tax (expense) Equity earnings Income from continuing operations Income from discontinued operations, net of income taxes Reported (GAAP) $ (2,922 ) 2,823 (18,754 ) (2,987 ) 3,683 23,136 $ 5,798 (Income) loss from discontinued operations, net of income taxes — — — — — — (5,798 ) Amortization of intangible assets — — — — — 2,472 — Mark to market losses 5,639 — — — — 5,450 — Gain on asset sales — — — — — (9,139 ) — Cyber-related incident — — — — — — — Other items (253 ) — — — — 1,833 — Adjustments from equity method investments — — — — 604 604 — Income tax on items above and discrete tax items — — — (1,610 ) (99 ) (1,709 ) — NCI impact on items above — — — — — — — Adjusted (Non-GAAP) $ 2,464 2,823 (18,754 ) (4,597 ) 4,188 22,647 $ — Three Months Ended December 31, 2022 (U.S. Dollars in thousands) Other expense, net Interest income Interest expense Income tax benefit (expense) Equity earnings Income from continuing operations Loss from discontinued operations, net of income taxes Reported (GAAP) $ (9,165 ) 1,986 (18,245 ) 4,106 2,698 21,707 $ (8,318 ) (Income) loss from discontinued operations, net of income taxes — — — — — — 8,318 Amortization of intangible assets — — — — — 2,645 — Mark to market losses 8,392 — — — — 8,868 — Gain on asset sales — — — — — (1,970 ) — Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole — — — — — 681 — Other items — — — — 544 1,053 — Adjustments from equity method investments — — — — 662 662 — Income tax on items above and discrete tax items — — — (8,777 ) (99 ) (8,876 ) — NCI impact on items above — — — — — — — Adjusted (Non-GAAP) $ (773 ) 1,986 (18,245 ) (4,671 ) 3,805 24,770 $ — Three Months Ended December 31, 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) $ 28,934 (6,597 ) $ 22,337 $ 0.23 (Income) loss from discontinued operations, net of income taxes (5,798 ) — (5,798 ) Amortization of intangible assets 2,472 — 2,472 Mark to market losses 5,450 — 5,450 Gain on asset sales (9,139 ) — (9,139 ) Cyber-related incident — — — Other items 1,833 — 1,833 Adjustments from equity method investments 604 — 604 Income tax on items above and discrete tax items (1,709 ) — (1,709 ) NCI impact on items above — (1,220 ) (1,220 ) Adjusted (Non-GAAP) $ 22,647 (7,817 ) $ 14,830 $ 0.16 Weighted average shares outstanding – diluted 95,187 Three Months Ended December 31, 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) $ 13,389 (6,608 ) $ 6,781 $ 0.07 (Income) loss from discontinued operations, net of income taxes 8,318 — 8,318 Amortization of intangible assets 2,645 — 2,645 Mark to market losses 8,868 — 8,868 Gain on asset sales (1,970 ) — (1,970 ) Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole 681 — 681 Other items 1,053 — 1,053 Adjustments from equity method investments 662 — 662 Income tax on items above and discrete tax items (8,876 ) — (8,876 ) NCI impact on items above — (898 ) (898 ) Adjusted (Non-GAAP) $ 24,770 (7,506 ) $ 17,264 $ 0.18 Weighted average shares outstanding – diluted 94,928 Year Ended December 31, 2023 (U.S. Dollars in thousands) Revenues, net Cost of sales Gross profit Gross Margin % Selling, marketing, general and administration expenses Other operating charges10 Operating Income Reported (GAAP) $ 8,245,268 (7,551,098 ) 694,170 8.4 % (473,903 ) 51,891 $ 272,158 (Income) loss from discontinued operations, net of income taxes — — — — — — Amortization of intangible assets — — — 10,198 — 10,198 Mark to market losses — (2,638 ) (2,638 ) — — (2,638 ) Gain on asset sales — — — — (52,495 ) (52,495 ) Cyber-related incident — — — 5,321 — 5,321 Other items — 3,205 3,205 (34 ) — 3,171 Adjustments from equity method investments — — — — — — Income tax on items above and discrete tax items — — — — — — NCI impact on items above — — — — — — Adjusted (Non-GAAP) $ 8,245,268 (7,550,531 ) 694,737 8.4 % (458,418 ) (604 ) $ 235,715 10 Other operating charges for the year ended December 31, 2023 is primarily comprised of a $54.1 million gain on asset sales, partially offset by $2.2 million of impairment charges and asset write-downs of property, plant and equipment, as reported in the consolidated statements of operations. Year Ended December 31, 2022 (U.S. Dollars in thousands) Revenues, net Cost of sales Gross profit Gross Margin % Selling, marketing, general and administration expenses Other operating charges11 Operating Income Reported (GAAP) $ 8,024,403 (7,424,525 ) 599,878 7.5 % (436,192 ) 11,579 $ 175,265 (Income) loss from discontinued operations, net of income taxes — — — — — — Amortization of intangible assets — — — 10,893 — 10,893 Mark to market losses — 2,848 2,848 — — 2,848 Gain on asset sales — — — — (10,316 ) (10,316 ) Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole — 41,145 41,145 — — 41,145 Other items — (452 ) (452 ) (910 ) 587 (775 ) Adjustments from equity method investments — — — — — — Income tax on items above and discrete tax items — — — — — — NCI impact on items above — — — — — — Adjusted (Non-GAAP) $ 8,024,403 (7,380,984 ) 643,419 8.0 % (426,209 ) 1,850 $ 219,060 11 Other operating charges for the year ended December 31, 2022 is primarily comprised of a $11.8 million gain on asset sales, partially offset by $0.4 million of impairment charges and asset write-downs of property, plant and equipment, as reported in the consolidated statements of operations. Year Ended December 31, 2023 (U.S. Dollars in thousands) Other income, net Interest income Interest expense Income tax (expense) Equity earnings Income from continuing operations Loss from discontinued operations, net of income taxes Reported (GAAP) $ 4,799 10,083 (81,113 ) (43,591 ) 15,191 177,527 $ (21,818 ) (Income) loss from discontinued operations, net of income taxes — — — — — — 21,818 Amortization of intangible assets — — — — — 10,198 — Mark to market losses 5,162 — — — — 2,524 — Gain on asset sales — — — — — (52,495 ) — Cyber-related incident — — — — — 5,321 — Other items (253 ) — — — — 2,918 — Adjustments from equity method investments — — — — 1,956 1,956 — Income tax on items above and discrete tax items — — — 5,643 (400 ) 5,243 — NCI impact on items above — — — — — — — Adjusted (Non-GAAP) $ 9,708 10,083 (81,113 ) (37,948 ) 16,747 153,192 $ — Year Ended December 31, 2022 (U.S. Dollars in thousands) Other income, net Interest income Interest expense Income tax expense Equity earnings Income from continuing operations Loss from discontinued operations, net of income taxes Reported (GAAP) $ 10,600 6,407 (56,371 ) 25,603 6,726 168,230 $ (56,447 ) (Income) loss from discontinued operations, net of income taxes — — — — — — 56,447 Amortization of intangible assets — — — — — 10,893 — Mark to market losses 201 — — — — 3,049 — Gain on asset sales — — — — — (10,316 ) — Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole — — — — — 41,145 — Other items — — — — 544 (231 ) — Adjustments from equity method investments — — — — 2,580 2,580 — Income tax on items above and discrete tax items — — — (50,097 ) (407 ) (50,504 ) — NCI impact on items above — — — — — — — Adjusted (Non-GAAP) $ 10,801 6,407 (56,371 ) (24,494 ) 9,443 164,846 $ — Year Ended December 31, 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) $ 155,709 (31,646 ) $ 124,063 $ 1.30 (Income) loss from discontinued operations, net of income taxes 21,818 — 21,818 Amortization of intangible assets 10,198 — 10,198 Mark to market losses 2,524 — 2,524 Gain on asset sales (52,495 ) — (52,495 ) Cyber-related incident 5,321 — 5,321 Other items 2,918 — 2,918 Adjustments from equity method investments 1,956 — 1,956 Income tax on items above and discrete tax items 5,243 — 5,243 NCI impact on items above — (3,494 ) (3,494 ) Adjusted (Non-GAAP) $ 153,192 (35,140 ) $ 118,052 $ 1.24 Weighted average shares outstanding – diluted 95,118 Year Ended December 31, 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) $ 111,783 (25,287 ) $ 86,496 $ 0.91 (Income) loss from discontinued operations, net of income taxes 56,447 — 56,447 Amortization of intangible assets 10,893 — 10,893 Mark to market losses 3,049 — 3,049 Gain on asset sales (10,316 ) — (10,316 ) Incremental charges on biological assets and inventory related costs due to acquisition of Legacy Dole 41,145 — 41,145 Other items (231 ) — (231 ) Adjustments from equity method investments 2,580 — 2,580 Income tax on items above and discrete tax items (50,504 ) — (50,504 ) NCI impact on items above — (3,187 ) (3,187 ) Adjusted (Non-GAAP) $ 164,846 (28,474 ) $ 136,372 $ 1.44 Weighted average shares outstanding – diluted 94,914 Supplemental Reconciliation of Prior Year Segment Results to Current Year Segment Results – Unaudited Revenue for the Three Months Ended December 31, 2022 Impact of Foreign Currency Translation Impact of Acquisitions and Divestitures Like-for-like Increase (Decrease) December 31, 2023 (U.S. Dollars in thousands) Fresh Fruit $ 740,167 $ — $ — $ 8,536 $ 748,703 Diversified Fresh Produce - EMEA 751,594 33,388 12,170 65,713 862,865 Diversified Fresh Produce - Americas & ROW 573,936 55 — (84,230 ) 489,761 Intersegment (23,129 ) — — (5,945 ) (29,074 ) Total $ 2,042,568 $ 33,443 $ 12,170 $ (15,926 ) $ 2,072,255 Adjusted EBITDA for the Three Months Ended December 31, 2022 Impact of Foreign Currency Translation Impact of Acquisitions and Divestitures Like-for-like Increase (Decrease) December 31, 2023 (U.S. Dollars in thousands) Fresh Fruit $ 39,460 $ (82 ) $ — $ (10,586 ) $ 28,792 Diversified Fresh Produce - EMEA 22,656 1,132 376 8,474 32,638 Diversified Fresh Produce - Americas & ROW 15,396 (15 ) (529 ) 575 15,427 Total $ 77,512 $ 1,035 $ (153 ) $ (1,537 ) $ 76,857 Revenue for the Year Ended December 31, 2022 Impact of Foreign Currency Translation Impact of Acquisitions and Divestitures Like-for-like Increase (Decrease) December 31, 2023 (U.S. Dollars in thousands) Fresh Fruit $ 3,047,149 $ — $ — $ 88,717 $ 3,135,866 Diversified Fresh Produce - EMEA 3,152,561 33,200 35,812 211,372 3,432,945 Diversified Fresh Produce - Americas & ROW 1,965,667 (6,469 ) — (159,030 ) 1,800,168 Intersegment (140,974 ) — 17,263 (123,711 ) Total $ 8,024,403 $ 26,731 $ 35,812 $ 158,322 $ 8,245,268 Adjusted EBITDA for the Year Ended December 31, 2022 Impact of Foreign Currency Translation Impact of Acquisitions and Divestitures Like-for-like Increase (Decrease) December 31, 2023 (U.S. Dollars in thousands) Fresh Fruit $ 205,547 $ (412 ) $ — $ 3,795 $ 208,930 Diversified Fresh Produce - EMEA 111,053 1,345 1,834 19,338 133,570 Diversified Fresh Produce - Americas & ROW 43,796 (260 ) 969 (1,887 ) 42,618 Total $ 360,396 $ 673 $ 2,803 $ 21,246 $ 385,118 Net Debt Reconciliation – Unaudited 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 December 31, 2023 is presented below. Net Debt as of December 31, 2023 was $0.8 billion. December 31, 2023 December 31, 2022 (U.S. Dollars in thousands) Cash and cash equivalents (Reported GAAP) $ 275,580 $ 228,840 Debt (Reported GAAP): Long-term debt, net (845,013 ) (1,127,321 ) Current maturities (222,940 ) (97,435 ) Bank overdrafts (11,488 ) (8,623 ) Total debt, net (1,079,441 ) (1,233,379 ) Less: Debt discounts and debt issuance costs (Reported GAAP) (14,395 ) (17,874 ) Total gross debt (1,093,836 ) (1,251,253 ) Net Debt (Non-GAAP) $ (818,256 ) $ (1,022,413 ) Free Cash Flow from Continuing Operations Reconciliation – Unaudited Year Ended December 31, 2023 December 31, 2022 (U.S. Dollars in thousands) Net cash provided by operating activities - continuing operations (Reported GAAP) $ 298,605 $ 323,612 Less: Capital expenditures (Reported GAAP)12 (78,041 ) (85,564 ) Free cash flow from continuing operations (Non-GAAP) $ 220,564 $ 238,048 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) adding the loss or subtracting the income 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 years ended December 31, 2023 and December 31, 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 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, adding impairment charges on property, plant and equipment, adding restructuring charges and costs for legal matters not in the ordinary course of business 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 years ended December 31, 2023 and December 31, 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 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, adding impairment charges on property, plant and equipment, adding restructuring charges and costs for legal matters not in the ordinary course of business 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 years ended December 31, 2023 and December 31, 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 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, adding impairment charges on property, plant and equipment, adding restructuring charges and costs for legal matters not in the ordinary course of business 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 provided by operating activities for continuing operations less GAAP capital expenditures. Like-for-like basis refers to the U.S. GAAP measure or non-GAAP financial measure excluding the impact of foreign currency translation movements and acquisitions and divestitures. Dole is not able to provide a reconciliation for projected FY'24 results without taking unreasonable efforts. View source version on businesswire.com: https://www.businesswire.com/news/home/20240229620633/en/
Investor Contact: James O'Regan, Head of Investor Relations, Dole plc joregan@totalproduce.com +353 1 887 2794 Media Contact: Brian Bell, Ogilvy brian.bell@ogilvy.com +353 87 2436 130
