Dole Food Company, Inc. DOLE -0.36% announced its financial and operating results for the first quarter ended March 26, 2011. Dole reported first quarter 2011 Adjusted EBITDA of $106 million compared to $85 million in the first quarter of 2010. GAAP income from continuing operations for the first quarter of 2011 was $2 million, or $0.02 per share, compared to $22 million, or $0.26 in the first quarter of 2010. Excluding unrealized losses from the refinancing of the Company's yen cross currency swap and certain other items, Comparable Income from continuing operations for the first quarter of 2011 was $45 million, or $0.51 per share, compared to $15 million, or $0.17 per share in the first quarter of 2010 (see Exhibit 2).
David A. DeLorenzo, Dole's President and CEO, said, "We are very pleased with the improvement in our first quarter financial results as each of our operating segments reported higher revenues and we generated a 25% increase in Adjusted EBITDA compared to last year. Our fresh fruit segment realized a turnaround on two fronts--better market conditions in Europe and Asia, and an improved cost position in our European operations due to our restructuring plan. Our packaged foods and fresh vegetable operations continued to have strong performances, with some of the packaged foods earnings growth offset with investment in our new product introductions. In line with our expectations, the packaged foods segment results were softer than in 2010 due to increased marketing spending to support the launch of our FRUIT BOWLS(R) in 100% juice in the first quarter as well as a shift of Easter sales to the second quarter this year. The successful launch of this new product illustrates our leadership position in meeting the consumers' desire for healthier products with no sugar added. Looking forward, we remain optimistic about achieving significantly improved results in 2011 over 2010."
Revenues increased 5% to $1.7 billion during the quarter ended March 26, 2011. Revenues grew in all of Dole's three operating segments primarily as a result of higher pricing. Fresh fruit revenues benefited from higher sales of bananas in North America and Asia and higher volumes sold of Chilean deciduous fruit partially offset by planned lower volumes of bananas sold in Europe. Fresh vegetables revenues increased from improved pricing across all major product lines as well as higher volumes sold of packaged salads. Packaged foods revenues increased primarily due to higher volumes sold in Asia and Europe and improved pricing in North America partially offset by lower volumes sold in North America due to the timing of Easter in 2011.
Adjusted EBITDA increased 25% or $21 million to $106 million in the first quarter of 2011. First quarter Adjusted EBITDA included $2.8 million of charges related to restructuring and $3 million of non-cash asset write-downs in the Company's operations in Australia as a result of Cyclone Yasi. Fresh fruit Adjusted EBITDA increased due to improved performance in the Company's banana operations primarily due to improved pricing worldwide as well as lower shipping and distribution costs in Europe resulting from the 2010 restructuring initiatives. These improvements were partially offset by higher fruit and packaging costs. Fresh vegetables Adjusted EBITDA increased slightly as higher pricing was offset by higher product costs due to product shortages associated with challenging weather conditions in January and February. Packaged foods Adjusted EBITDA decreased primarily due to higher marketing expenditures in North America related to our introduction of FRUIT BOWLS in 100% juice and fruit in jars in 100% juice and higher product costs worldwide.
A replay of the webcast will be available online at www.dole.com as soon as possible.
EBIT, Adjusted EBITDA 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 is calculated by subtracting income from discontinued operations, net of incomes taxes, from net income, by adding interest expense and by adding income tax expense to net income. Adjusted EBITDA is calculated by adding depreciation and amortization to EBIT, by adding the net unrealized loss or subtracting the net unrealized gain on certain derivative instruments (foreign currency and bunker fuel hedges and the cross currency swap), to or from EBIT, respectively, by adding the foreign currency loss or subtracting the foreign currency gain on the vessel obligations to or from EBIT, respectively, by adding the net unrealized loss or subtracting the net unrealized gain on foreign denominated instruments to or from EBIT, respectively, and by subtracting the gain on asset sales from EBIT. Comparable Income (loss) from continuing operations is calculated from income (loss) from continuing operations by adding charges for restructuring and long-term receivables, net of income taxes, adding the net unrealized loss or subtracting the net unrealized gain on certain derivative instruments (foreign currency and bunker fuel hedges and the cross currency swap), net of income taxes, adding the foreign currency loss or subtracting the foreign currency gain on the vessel obligations, net of income taxes, adding the net unrealized loss or subtracting the net unrealized gain on foreign denominated instruments, net of income taxes, and 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 and cash equivalents.
EBIT, Adjusted EBITDA and Comparable Income (loss) from continuing operations (total and per share) are not calculated or presented in accordance with U.S. GAAP. EBIT and Adjusted EBITDA 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, 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 EBIT, Adjusted EBITDA and Comparable Income (loss) from continuing operations (total and per share) herein because management believes that EBIT and Adjusted EBITDA are useful performance measures for Dole. In addition, EBIT, Adjusted EBITDA and Comparable Income (loss) from continuing operations (total and per share) are presented because Dole's management believes that these measures are frequently used by securities analysts, investors and others in the evaluation of Dole.
Dole, with 2010 net revenues of $6.9 billion, is the world's largest producer and marketer of high-quality fresh fruit and fresh vegetables, and is the leading producer of organic bananas. Dole markets a growing line of packaged and frozen fruit and is a produce industry leader in nutrition education and research.