 1 1 Dole Food Company, Inc. Earnings Call and Webcast Third Quarter 2011 November 17, 2011 Exhibit 99.2 |
 2 2 Beth Potillo Treasurer |
 3 3 Forward-Looking Statements The information presented here contains "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Forward-looking statements, which are based on management's current expectations, are generally identifiable by the use of terms such as "may," "will," "expects," "believes," "intends," "anticipates" and similar expressions. The potential risks and uncertainties that could cause actual results to differ materially from those expressed or implied herein include weather-related phenomena; market responses to industry volume pressures; product and raw materials supplies and pricing; energy supply and pricing; changes in interest and currency exchange rates; economic crises and security risks in developing countries; international conflict; and quotas, tariffs and other governmental actions. Further information on the factors that could affect Dole's financial results is included in its SEC filings, including its Annual Report on Form 10-K. |
 4 Non-GAAP Financial Measures EBIT before discontinued operations, Adjusted EBITDA, Adjusted EBITDA Excluding Significant Items, and Comparable Income (loss) from continuing operations (total and per share) are measures commonly used by financial analysts in evaluating the performance of companies. EBIT before discontinued operations is calculated from net income by adding interest expense and income tax expense, and subtracting income from discontinued operations, net of income taxes, and gain on disposal of discontinued operations, net of income taxes. Adjusted EBITDA is calculated from EBIT before discontinued operations by: (1) adding depreciation and amortization; (2) adding the net unrealized loss or subtracting the net unrealized gain on foreign currency and bunker fuel hedges and the cross currency swap which do not have a more than insignificant financing element present at contract inception; (3) adding the net loss or subtracting the net gain on the long-term Japanese yen hedges; (4) adding the foreign currency loss or subtracting the foreign currency gain on the vessel obligations; (5) adding the net unrealized loss or subtracting the net unrealized gain on foreign denominated instruments; and (6) subtracting the gain on asset sales. Due to the fact that the long-term Japanese yen hedges had more than an insignificant financing element at inception, the liability is treated similar to a debt instrument and the associated cash flows are classified as a financing activity. As a result, both the realized and unrealized gains and losses related to these hedges are subtracted from or added back to EBIT before discontinued operations when calculating Adjusted EBITDA. Adjusted EBITDA Excluding Significant Items is calculated from Adjusted EBITDA by: (1) adding the refinancing charges and loss on early retirement of 2014 notes: and (2) subtracting the gain on container arbitration settlement. Comparable Income (loss) from continuing operations is calculated from income (loss) from continuing operations by: (1) adding charges for restructuring and long- term receivables, net of income taxes; (2) adding the net unrealized loss or subtracting the net unrealized gain on foreign currency and bunker fuel hedges and the cross currency swap, net of income taxes; (3) adding the net loss or subtracting the net gain on the long-term Japanese yen hedges, net of income taxes; (4) adding the foreign currency loss or subtracting the foreign currency gain on the vessel obligations, net of income taxes; (5) adding the net unrealized loss or subtracting the net unrealized gain on foreign denominated instruments, net of income taxes; (6) adding the refinancing charges and loss on early retirement of 2014 notes, net of income taxes; (7) subtracting the gain on container arbitration settlement, net of income taxes; and (8) subtracting gain on asset sales, net of income taxes. These items have been adjusted because management excludes these amounts when evaluating the performance of Dole. Net debt is calculated as total debt less cash. EBIT before discontinued operations, Adjusted EBITDA and Comparable Income (loss) from continuing operations (total and per share) are not calculated or presented in accordance with U.S. GAAP and are not a substitute for net income attributable to Dole Food Company, Inc., net income, income from continuing operations, cash flows from operating activities or any other measure prescribed by U.S. GAAP. Further, EBIT before discontinued operations, Adjusted EBITDA and Comparable Income (loss) from continuing operations (total and per share) as used herein are not necessarily comparable to similarly titled measures of other companies. However, Dole has included these three measures herein because management believes that they are useful performance measures for Dole and for securities analysts, investors and others in the evaluation of Dole. |
 5 5 David A. DeLorenzo Chief Executive Officer |
  6 Adjusted EBITDA Excluding Significant Items ($ millions) October 8, 2011 October 9, 2010 October 8, 2011 October 9, 2010 Adjusted EBITDA 19 $ 101 $ 278 $ 299 $ Significant items included in Adjusted EBITDA: Charges for restructuring and long-term receivables 13 24 22 25 Gain on arbitration settlement, net - (27) - (27) Refinancing charges and loss on early retirement of 2014 notes 26 - 26 - Adjusted EBITDA Excl. Significant Items 58 $ 98 $ 326 $ 297 $ See Page 18 for reconciliation of Net Income to Adjusted EBITDA Quarter Ended Three Quarters Ended |
 7 Adjusted EBITDA Excluding Significant Items By Segment ($ millions) October 8, 2011 October 9, 2010 October 8, 2011 October 9, 2010 Fresh fruit 35 $ 58 $ 250 $ 195 $ Fresh vegetables 9 12 34 39 Packaged foods 32 30 82 94 Corporate/other (18) (2) (40) (31) Adjusted EBITDA Excl. Significant Items 58 $ 98 $ 326 $ 297 $ See Pages 19 & 20 for Adjusted EBITDA by segment |
 8 Fresh Fruit: 3Q11 Review Revenues increased 5% Restructuring on track: Q3 cost savings of $14 million Additional restructuring initiatives to benefit 2012 – Banana industry exports to Europe up 9% as a result of good growing conditions – Additional restructuring initiatives in production and shipping operations to benefit 2012 – Reduced 2011 banana volumes ( 19% year-to-date) – Higher shipping costs primarily resulting from higher fuel prices – Volumes and prices up year-to-date – Higher fruit, packaging and shipping costs – Growth in China and Middle East markets – YTD volumes up ~10%, prices up ~4% Latin America Europe North America Asia |
 Fresh Vegetables: 3Q11 Review Packaged salads - Improved performance continues - Higher prices, better mix, increased retail volumes - Lower marketing costs Fresh-packed vegetables - Weaker performance more than offsets packaged salad improvements in the quarter - Lower iceberg lettuce pricing Acquisition of SunnyRidge Farm - Premium blueberry and blackberry operations to complement our existing fresh and frozen strawberry program. 9 • Packaged Salad improvement continues • Completed acquisition of SunnyRidge Farm |
 Packaged Foods: 3Q11 Review 10 Dole Fruit Smoothie Shakers ® Frozen Fruit Single-serve Cups Revenue increased 9% Adjusted EBITDA increased $2 million to $32 million U.S. Dollar Market Shares Product 2011* 2010* Canned pineapple 56.8% #1 57.3% Canned pineapple juice 57.7% #1 56.8% Fruit Bowls 48.1% #1 46.7% *Source: IRI Syndicated Data Total US for the third quarter ended October 8, 2011 and October 9, 2010 Successful new product introductions Higher volume and pricing offset increased product costs |
 11 Summary As anticipated, a challenging market in Europe during the third quarter Year-to-date performance well ahead of 2010 Implementing additional restructuring initiatives focused on further improving profitability in Europe Strategic investments in SunnyRidge Farm and Healthy Foods, LLC Continued progress on asset sale program |
 12 12 Joseph S. Tesoriero Chief Financial Officer |
 13 Segment Revenues Packaged foods Fresh vegetables Fresh fruit ($ millions) 3,932 3,674 852 825 903 836 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 2011 2010 $5,688 $5,336 First Three Quarters First Three Quarters First Three Quarters 3rd Quarter 3rd Quarter 3rd Quarter 1,393 1,327 327 326 366 335 $0 $500 $1,000 $1,500 $2,000 $2,500 2011 2010 $2,086 $1,989 Revenue in all segments increased Fresh fruit up 5% - Higher banana volumes in North America and Asia; improved banana pricing in North America, offset by planned lower volumes in Europe - Higher volumes and pricing of Chilean deciduous fruit - Higher pricing of pineapples and other fresh fruit in Asia Vegetables - Packaged salads had higher prices and better mix, higher retail volumes - Fresh-packed vegetables had lower prices and volumes in iceberg lettuce, partially offset by higher volumes and pricing in strawberries Packaged foods up 9% - Higher sales across all major product lines Note: Numbers may not foot due to rounding. |
 14 Adjusted EBITDA Excluding Significant Items By Segment ($ millions) October 8, 2011 October 9, 2010 October 8, 2011 October 9, 2010 Fresh fruit 35 $ 58 $ 250 $ 195 $ Fresh vegetables 9 12 34 39 Packaged foods 32 30 82 94 Corporate/other (18) (2) (40) (31) Adjusted EBITDA Excl. Significant Items 58 $ 98 $ 326 $ 297 $ See Pages 19 & 20 for Adjusted EBITDA by segment |
 Comparable Income from Continuing Ops. 15 ($ millions, except per share data) See Page 4 for definition of non-GAAP measures The line items presented here have been adjusted consistent with the purpose of calculating Comparable Income from continuing operations, and thus are non-GAAP measures. Q3 2011 Q3 2010 2011 2010 Revenues, net 2,086.0 $ 1,988.6 $ 5,687.9 $ 5,336.0 $ Cost of products sold (1,902.4) (1,791.1) (5,037.2) (4,764.2) Gross Margin 183.6 197.5 650.7 571.8 SMG&A expenses (160.3) (139.0) (416.0) (372.5) Operating Income 23.3 58.5 234.7 199.3 Other, net 3.3 1.3 12.3 9.5 EBIT before disc. ops. 26.6 59.8 247.0 208.8 Interest expense (41.4) (49.2) (111.7) (127.4) Earnings before taxes (14.8) 10.6 135.3 81.4 Income taxes (0.3) (7.5) (19.2) (19.5) Comparable Income from cont. ops. $ (15.1) $ 3.1 $ 116.1 $ 61.9 $ (0.17) $ 0.04 $ 1.32 $ 0.71 Quarter Ended Three Quarters Ended Comp. Income from cont. ops. per share |
 16 16 Q&A |
 17 17 Appendix |
  18 Reconciliation of Net Income to EBIT before Discontinued Operations, Adjusted EBITDA and Adjusted EBITDA Excl. Significant Items ($ millions) October 8, 2011 October 9, 2010 October 8, 2011 October 9, 2010 Net income (loss) (47) $ (49) $ 38 $ 7 $ Discontinued operations, net - (5) (1) (5) Interest expense 41 49 112 127 Income taxes - 8 19 20 EBIT before discontinued operations (6) 3 168 149 Depreciation and amortization 32 38 79 88 Net unrealized (gain) loss - derivatives 2 43 35 59 Net gain on long-term Japanese yen hedges (3) - (7) - Foreign currency (gain) loss - vessel obligations (2) 4 - (1) Net unrealized (gain) loss - foreign instruments (1) 13 6 7 Gain on asset sales (3) - (3) (3) Adjusted EBITDA 19 $ 101 $ 278 $ 299 $ Significant items included in Adjusted EBITDA: Charges for restructuring and long-term receivables 13 24 22 25 Gain on arbitration settlement, net - (27) - (27) Write-off of debt issuance costs, refinancing fees and loss on early retirement of 2014 notes 26 - 26 - Adjusted EBITDA Excl. Significant Items 58 $ 98 $ 326 $ 297 $ Quarter Ended Three Quarters Ended |
  19 Adjusted Q3 QTD EBITDA by Segment ($ millions) Fresh Fresh Packaged Corporate/ Fruit Vegetables Foods Other Total Quarter Ended October 8, 2011 EBIT before disc. ops. 7 $ 3 $ 24 $ (40) $ (6) $ Net unrealized (gain) loss - derivatives 1 - 1 - 2 Net gain on long-term Japanese yen hedges - - - (3) (3) Foreign currency (gain) loss - vessel obligations (2) - - - (2) Net unrealized (gain) loss - foreign instruments 1 - - (2) (1) Gain on asset sales (3) - - - (3) Sub total 4 3 25 (45) (13) Depreciation and amortization 18 6 7 1 32 Adjusted EBITDA 22 $ 9 $ 32 $ (44) $ 19 $ Significant items 13 - - 26 39 Adjusted EBITDA Excluding Significant Items 35 $ 9 $ 32 $ (18) $ 58 $ Fresh Packaged Corporate/ Fresh Fruit Vegetables Foods Other Total Quarter Ended October 9, 2010 EBIT before disc. ops. 36 $ 5 $ 24 $ (62) $ 3 $ Net unrealized (gain) loss - derivatives (2) - (1) 46 43 Foreign currency (gain) loss - vessel obligations 4 - - - 4 Net unrealized (gain) loss - foreign instruments - - - 13 13 Sub total 38 5 23 (3) 63 Depreciation and amortization 23 7 7 1 38 Adjusted EBITDA 61 $ 12 $ 30 $ (2) $ 101 $ Significant items (3) - - (3) Adjusted EBITDA Excluding Significant Items 58 $ 12 $ 30 $ (2) $ 98 $ |
  20 Adjusted Q3 YTD EBITDA by Segment ($ millions) Fresh Fresh Packaged Corporate/ Fruit Vegetables Foods Other Total Three Quarters Ended October 8, 2011 EBIT before disc. ops. 184 $ 18 $ 62 $ (96) $ 168 $ Net unrealized (gain) loss - derivatives 2 - 2 31 35 Net gain on long-term Japanese yen hedges - - - (7) (7) Foreign currency (gain) loss - vessel obligations - - - - - Net unrealized (gain) loss - foreign instruments - - 1 5 6 Gain on asset sales (3) - - - (3) Sub total 183 18 65 (67) 199 Depreciation and amortization 45 16 17 1 79 Adjusted EBITDA 228 $ 34 $ 82 $ (66) $ 278 $ Significant items 22 - - 26 48 Adjusted EBITDA Excluding Significant Items 250 $ 34 $ 82 $ (40) $ 326 $ Fresh Fresh Packaged Corporate/ Fruit Vegetables Foods Other Total Three Quarters Ended October 9, 2010 EBIT before disc. ops. 147 $ 23 $ 78 $ (99) $ 149 $ Net unrealized (gain) loss - derivatives - - (1) 60 59 Foreign currency (gain) loss - vessel obligations (1) - - - (1) Net unrealized (gain) loss - foreign instruments 1 - - 6 7 Gain on asset sales (3) - - - (3) Sub total 144 23 77 (33) 211 Depreciation and amortization 53 16 17 2 88 Adjusted EBITDA 197 $ 39 $ 94 $ (31) $ 299 $ Significant items (2) - - - (2) Adjusted EBITDA Excluding Significant Items 195 $ 39 $ 94 $ (31) $ 297 $ |
  21 Non-GAAP Financial Measures ($ thousands, except per share data) Quarter Ended Three Quarters Ended October 8, 2011 October 9, 2010 October 8, 2011 October 9, 2010 Net Income (loss) (47,004) $ (48,829) $ 38,074 $ 7,405 $ Income (loss) from discontinued operations, net of income taxes 43 (202) (188) (876) Gain on disposal of discontinued operations, net of income taxes - (4,143) (339) (4,143) Interest expense 41,402 49,187 111,709 127,375 Income taxes 123 7,522 18,781 19,764 EBIT 168,037 149,525 Depreciation & amortization 79,064 87,620 Net unrealized (gain)/loss on derivative instruments 2,487 43,527 35,104 59,164 Net (gain) loss on Japanese yen hedges (2,298) (6,582) Foreign currency exchange (gain)/loss on vessel obligations (2,590) 3,946 (51) (1,147) Gain on asset sales (3,326) - (3,337) (2,921) Debt retirement costs in connection with initial public offering Net unrealized FX (gain)/loss on foreign denominated borrowings (1,645) 12,579 5,802 6,581 Sub Total (7,372) 60,052 30,936 61,677 Adjusted EBITDA 18,858 $ 101,185 $ 278,037 $ 298,822 $ Significant items included in Adjusted EBITDA: Charges for restructuring and long-term receivables 13,171 23,518 21,873 24,888 Gain on arbitration settlement, net - (27,271) - (27,271) Write-off of debt issuance costs, refinancing fees and loss on early retirement of 2014 notes 26,192 - 26,192 - Adjusted EBITDA excluding significant items 58,221 $ 97,432 $ 326,102 $ 296,439 $ After tax adjustments Net unrealized (gain)/loss on derivative instruments 2,609 $ 43,575 $ 34,855 $ 59,183 $ Net (gain) loss on Japanese yen hedges (2,298) - (6,582) - Foreign currency exchange (gain)/loss on vessel obligations (2,590) 3,946 (51) (1,147) Gain on asset sales (3,326) - (3,337) (2,710) Debt retirement costs in connection with initial public offering - - - - Net unrealized FX (gain)/loss on foreign denominated borrowings (1,851) 12,580 5,588 6,590 Charges for restructuring and long-term receivables 13,171 23,518 21,873 24,888 Gain on arbitration settlement, net - (27,271) - (27,271) Refinancing charges and loss on early retirement of 2014 notes 26,192 - 26,192 - Sub Total 31,907 $ 56,348 $ 78,538 $ 59,533 $ Comparable income (loss) from continuing operations ($15,054) $3,125 $116,085 $61,908 Comparable net income attributable to Dole Food Company, Inc. ($16,731) $5,923 $112,706 $63,620 Earnings per share - Diluted: Comparable income from continuing operations ($0.17) $0.04 $1.32 $0.71 Comparable net income attributable to Dole Food Company, Inc. ($0.19) $0.07 $1.28 $0.73 3,535 31,666 37,598 (5,436) |
  22 Statements of Operations Quarter Ended Three Quarters Ended October 8, 2011 October 9, 2010 October 8, 2011 October 9, 2010 Revenues, net 2,086,032 $ 1,988,571 $ 5,687,861 $ 5,335,967 $ Cost of products sold (1,910,314) (1,789,085) (5,047,176) (4,763,474) Gross margin 175,718 199,486 640,685 572,493 Selling, marketing and general and administrative expenses (160,902) (137,712) (415,865) (372,792) Charges for restructuring and long-term receivables (7,877) (23,518) (16,579) (24,888) Gain on arbitration settlement, net - 27,271 - 27,271 Gain on asset sales 3,326 - 3,337 2,921 Operating income 10,265 65,527 211,578 205,005 Other income (expense), net (18,956) (61,994) (53,970) (62,883) Interest income 1,318 1,606 3,802 4,724 Interest expense (41,402) (49,187) (111,709) (127,375) Income (loss) from continuing operations before income taxes and equity earnings (48,775) (44,048) 49,701 19,471 Income taxes (123) (7,522) (18,781) (19,764) Earnings (losses from equity method investments 1,937 (1,604) 6,627 2,679 Income (loss) from continuing operations (46,961) (53,174) 37,547 2,386 Income (loss) from discontinued operations, net of income taxes (43) 202 188 876 Gain on disposal of discontinued operations, net of income taxes - 4,143 339 4,143 Net income (loss) (47,004) (48,829) 38,074 7,405 Less: Net income attributable to noncontrolling interests (1,634) (1,547) (3,906) (3,307) Net income (loss) attributable to Dole Food Company, Inc. (48,638) $ (50,376) $ 34,168 $ 4,098 $ ($ thousands) |
  Balance Sheets 23 October 8, 2011 January 1, 2011 (in thousands) ASSETS Cash and cash equivalents 190,586 $ 170,147 $ Restricted cash and deposits 5,683 51,108 Receivables, net 700,420 751,265 Inventories 805,872 734,966 Prepaid expenses and other assets 67,816 67,909 Deferred income tax assets 43,835 36,810 Assets Held for Sale 120,845 86,050 Total current assets 1,935,057 1,898,255 Investments 97,170 87,914 Property, plant and equipment, net 894,078 943,030 Goodwill 407,247 407,247 Intangible assets, net 698,106 701,081 Other assets, net 217,048 219,463 Total Assets 4,248,706 4,256,990 LIABILITIES AND EQUITY Accounts payable 486,561 521,330 Liabilities related to assets-held-for-sale 19,951 0 Accrued liabilities 533,771 642,481 Current portion of long-term debt, net 9,411 7,348 Notes payable 28,040 31,922 Total current liabilities 1,077,734 1,203,081 Long-term debt, net 1,575,559 1,564,325 Deferred income tax liabilities 248,838 244,324 Other long-term liabilities 515,640 428,476 Shareholders' equity Common stock 89 89 Additional paid-in capital 784,121 776,918 Retained earnings 105,251 71,083 Accumulated other comprehensive income (loss ) (84,246) (55,921) Equity attributatble to shareholders of Dole Food Company, Inc. 805,215 792,169 Equity attributatble to noncontrolling interests 25,720 24,615 Total equity 830,935 816,784 Total liabilities and equity 4,248,706 $ 4,256,990 $ |