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Dole Food Company, Inc. Announces First Quarter 2012 Results And Strategic Business Review

Revenues

Revenues decreased 4% to $1.6 billion during the quarter ended March 24, 2012. Excluding revenues of Dole Spain, which was sold during the fourth quarter of 2011, sales decreased 1%. Fresh fruit revenues decreased primarily as a result of lower sales in the European ripening and distribution business and lower pricing for bananas sold in North America. These factors were partially offset by improved pricing for bananas in Asia, improved volumes of other fresh fruit sold in Asia, higher volumes of fresh pineapples sold worldwide and higher sales of Chilean deciduous fruit. Fresh vegetables revenues increased 2%, primarily due to higher sales of fresh berries and packaged salads partially offset by lower pricing for fresh-packed vegetables. Packaged foods revenues increased 1%, primarily due to higher sales of frozen fruit and healthy snacks in North America and improved pricing worldwide, partially offset by lower worldwide volumes of packaged fruit.

Adjusted EBITDA

Adjusted EBITDA decreased to $71 million in the first quarter of 2012 from $111 million in the prior year. Fresh fruit Adjusted EBITDA decreased due to lower pricing in North America and Europe as well as higher fruit costs from Latin America, partially offset by higher earnings in Asia banana operations. Fresh vegetables Adjusted EBITDA decreased as a result of lower pricing in the fresh-packed vegetables business, partially offset by higher earnings of packaged salads and fresh berries due primarily to lower product costs. Packaged foods Adjusted EBITDA increased as a result of lower marketing expenditures and higher global pricing, partially offset by higher product costs worldwide.

   

Segment Information (Unaudited)

 
Quarter Ended

March 24,

 

March 26,

2012

2011

Revenues from external customers (In millions)
Fresh fruit $ 1,123.7 $ 1,191.0
Fresh vegetables 235.9 230.2
Packaged foods   266.9     264.8  
$ 1,626.5   $ 1,686.0  
 

March 24,

March 26,

2012

2011

EBIT (In millions)
Fresh fruit EBIT $ 37.5 $ 65.8
Fresh vegetables EBIT 7.0 12.3
Packaged foods EBIT   16.3     12.2  
Total operating segments 60.8 90.3
Corporate:
Unrealized loss on cross currency swap - (3.8 )
Unrealized gain (loss) on long-term Japanese yen hedges 1.0 (27.4 )
Unrealized gain (loss) on foreign denominated instruments 3.6 (5.9 )
Share-based compensation (1.7 ) (1.2 )
Operating and other expenses, net   (11.8 )   (9.5 )
Total Corporate   (8.9 )   (47.8 )
Total EBIT before discontinued operations $ 51.9   $ 42.5  
 
 
   

Cash and Debt (Unaudited)

 

 

March 24,

December 31,

2012

2011

Cash: (In millions)
Cash and cash equivalents* $ 111.9 $ 128.6
Total Debt:
Revolving credit facility $ 50.0 $ 69.3
Term loan facilities 895.5 895.5
Senior Notes and Debentures 644.9 644.9
Other debt, net of debt discount   102.4   70.1
Total Debt $ 1,692.8 $ 1,679.8
Net Debt $ 1,580.9 $ 1,551.2
 

* includes $6.2 million of restricted cash at March 24, 2012 and December 31, 2011.

 

See Exhibit 2 for further detailed information on the fresh fruit and packaged foods segments.

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