FRESH DEL MONTE PRODUCE INC. FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
First Quarter 2024
The Company's results are determined in accordance with U.S. generally accepted accounting principles (GAAP). Certain information presented reflects adjustments to GAAP measures that are referred to in this presentation as "non-GAAP measures." Management believes these non-GAAP measures provide a more comparable analysis of the underlying operating performance of the business.
These non-GAAP measures include the following: Adjusted gross profit, Adjusted gross margin, Adjusted operating income, Adjusted FDP net income, Adjusted diluted EPS, EBITDA, Adjusted EBITDA, EBITDA margin, Adjusted EBITDA margin and Adjusted Leverage Ratio. Adjusted gross profit, Adjusted gross margin, Adjusted operating income, Adjusted FDP net income and Adjusted diluted EPS each reflect adjustments relating to asset impairment and other charges, net, gain on disposal of property, plant and equipment, net, and other product-related (credits) charges. EBITDA is defined as net income attributable to Fresh Del Monte Produce Inc. excluding interest expense, net, provision for income taxes, depreciation and amortization, and share-based compensation expense. Adjusted EBITDA represents EBITDA with additional adjustments for asset impairment and other charges, net, gain on disposal of property, plant and equipment, net and subsidiary, and other product-related charges. EBITDA margin represents EBITDA as a percentage of net sales, and Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of net sales. Adjusted Leverage Ratio represents net debt (total short-term and long-term debt outstanding, including current portion of long-term debt and finance leases and letters of credit, less cash and cash equivalents) divided by Adjusted EBITDA for the trailing twelve-month period.
These non-GAAP measures provide the Company with an understanding of the results from the primary operations of its business. The Company uses these metrics because management believes they provide more comparable measures to evaluate period-over-period operating performance since they exclude special items that are not indicative of the Company's core business or operations. These measures may be useful to an investor in evaluating the underlying operating performance of the Company's business because these measures:
- Are used by investors to measure a company's comparable operating performance;
- Are financial measurements that are used by lenders and other parties to evaluate creditworthiness; and
- Are used by the Company's management for various purposes, including as measures of performance of its operating entities, as a basis of strategic planning and forecasting, and in certain cases as a basis for incentive compensation.
Because all companies do not use identical calculations, the Company's presentation of these non-GAAP financial measures may not be comparable to similarly titled measures used by other companies. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are provided in the financial tables herein.
FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
Trailing Twelve Months Leverage Ratio Q1 2024 | ||||||||||
(U.S. dollars in millions) - Unaudited | Trailing Twelve | |||||||||
Months | ||||||||||
Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | March 29, 2024 | ||||||
Net income attributable to Fresh Del Monte Produce Inc. | $ | 47.7 | $ | 8.4 | $ | (106.4) | $ | 26.1 | $ | (24.2) |
Interest expense, net | 6.1 | 5.4 | 3.4 | 5.0 | 19.9 | |||||
Income tax provision | 11.3 | 4.1 | (6.8) | 5.3 | 13.9 | |||||
Depreciation & amortization | 21.6 | 21.2 | 19.9 | 20.0 | 82.7 | |||||
Share-based compensation expense | 2.9 | 2.4 | 2.3 | 0.6 | 8.2 | |||||
EBITDA | $ | 89.6 | $ | 41.5 | $ | (87.6) | $ | 57.0 | $ | 100.5 |
Adjustments: | ||||||||||
Other product-related charges (1) | $ | - | $ | 8.4 | $ | (6.3) | $ | (1.0) | $ | 1.1 |
Asset impairment and other charges (credits), net (2) | 4.6 | 2.5 | 133.8 | 2.3 | 143.2 | |||||
(Gain) on disposal of property, plant and equipment, net and subsidiary (3) | (8.8) | (2.0) | (2.1) | (14.8) | (27.7) | |||||
Other adjustments (4) | - | - | - | - | - | |||||
Adjusted EBITDA | $ | 85.4 | $ | 50.4 | $ | 37.8 | $ | 43.5 | $ | 217.1 |
Long-term debt and finance leases | $ | 405.8 | ||||||||
Add: Current maturities of debt and finance leases | 1.4 | |||||||||
Add: Current portion of letters of credit | 18.3 | |||||||||
Less: Cash and cash equivalents | (42.2) | |||||||||
Net Debt | $ | 383.3 | ||||||||
Leverage ratio (a) | ||||||||||
3.81x | ||||||||||
(a) Calculated as net debt divided by EBITDA. | ||||||||||
Adjusted leverage ratio (b) | 1.77x |
(b) Calculated as net debt divided by Adjusted EBITDA.
FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
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Fresh Del Monte Produce Inc. published this content on 01 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 21:39:47 UTC.
