Iron Mountain Reports Fourth Quarter and Full-Year 2019 Results

BOSTON, Feb. 13, 2020

"We delivered a solid fourth-quarter, with constant-currency revenue growth of almost 3% year over year, in line with our guidance. In addition, we delivered strong growth in Adjusted EBITDA, Adjusted EPS, and AFFO, whilst simultaneously increasing investments to support future growth," said William L. Meaney, president and CEO of Iron Mountain. "Our results reflect steady organic volume trends and positive contribution from revenue management in all geographies, resulting in healthy total Organic Storage rental revenue growth of 2.5% in 2019. We continue to be pleased with the progress we have made in shifting our mix to faster growing businesses, which have increased to 24% of our sales compared to just 9% six years ago."

Meaney continued, "In the fourth quarter, we also took critical steps in the implementation of Project Summit, our comprehensive transformation program, which we expect will significantly reduce our cost structure, enhance our customer service capabilities and improve the overall speed of execution. Ultimately, we believe the simplification of our management structure and a concerted increase in dynamism will lead to higher levels of revenue growth."

Financial Performance Highlights for the Fourth Quarter and Full-Year 2019

• Total reported Revenues for the fourth quarter were $1.08 billion, compared with $1.06 billion in the fourth quarter of 2018. Excluding the impact of foreign exchange (FX), reported total Revenues grew 2.7% compared to the prior year, reflecting the benefits from revenue management and steady organic global volume trends. For full-year 2019, total reported Revenues were $4.26 billion, compared with $4.23 billion in 2018, an increase of 3.0% excluding the impact of FX.
• Income from Continuing Operations for the fourth quarter was $37.1 million, compared with $158.5 million in the fourth quarter of 2018. Income from Continuing Operations in both Q4 and full-year 2019 included Restructuring Charges of $48.6 million associated with the implementation of the Company's transformation program - Project Summit - designed to accelerate execution of Iron Mountain's strategy. In addition, Income from Continuing Operations included $4.7 million of Significant Acquisition Costs in the fourth quarter of 2019, compared with $12.0 million in the fourth quarter of 2018. For full-year 2019, Income from Continuing Operations was $268.2 million, compared with $367.6 million in 2018, with Significant Acquisition Costs of $13.3 million in 2019 and $50.7 million in 2018.
• Adjusted EBITDA for the fourth quarter was $386.5 million, compared with $359.4 million in the fourth quarter of 2018. On a constant currency basis, Adjusted EBITDA increased by 8.4%, driven in part by the flow through from revenue management and lower overhead costs.  For full-year 2019, Adjusted EBITDA was $1.44 billion, compared with $1.42 billion in 2018, an increase of 2.7% excluding the impact of FX. Lower recycled paper prices impacted Adjusted EBITDA by approximately $28 million in 2019, which resulted in a drag of 2.0%.
• Reported EPS - Fully Diluted from Continuing Operations for the fourth quarter was $0.13, compared with $0.55 in the fourth quarter of 2018.  For full-year 2019, Reported EPS - Fully Diluted from Continuing Operations was $0.93 compared with $1.28 in 2018.
• Adjusted EPS for the fourth quarter was $0.31, compared with $0.25 in the fourth quarter of 2018, or growth of 24.0%. For full-year 2019, Adjusted EPS was $1.02, compared with $1.07 in 2018. Adjusted EPS reflects a structural tax rate of 18.2% in both 2019 and 2018.
• Net Income for the fourth quarter was $37.1 million compared with $158.6 million in the fourth quarter of 2018. For full-year 2019, Net Income was $268.3 million compared with $355.1 million in 2018. Net Income in the fourth quarter and full-year 2019 was negatively impacted by Restructuring Charges related to Project Summit as well as Foreign Currency Transaction Losses.
• FFO (Normalized) per share was $0.65 for the fourth quarter, compared with $0.56 in the fourth quarter of 2018, or an increase of 16.1%.  For full-year 2019, FFO (Normalized) per share was $2.29, compared with $2.26 in 2018.
• AFFO was $228.0 million for the fourth quarter compared with $193.8 million in the fourth quarter of 2018, an increase of 17.7%.  For full-year 2019, AFFO decreased 0.7% to $856.3 million, compared with $862.6 million in 2018.

Guidance

Iron Mountain issued full-year 2020 guidance; details are summarized in the table below. Additional guidance details and assumptions are available on Page 7 of the Q4 2019 supplemental financial information.

2020 Guidance ARIVA.DE Börsen-Geflüster Kurse Iron Mountain 77,26 $ -1,19%
($ in millions)
	2019 Results	2020 Guidance	Y/Y Change
Revenue	$4,263	$4,375 - $4,475	3% - 5%
Adjusted EBITDA	$1,438	$1,520 - $1,570	6% - 9%
Adjusted EPS	$1.02	$1.15 - $1.25	13% - 23%
AFFO	$856	$930 - $960	9% - 12%

Note: Guidance reflects FX rates as of January 3, 2020, and is subject to fluctuation.

Dividend

On February 12, 2020, Iron Mountain's board of directors declared a quarterly cash dividend of $0.6185 per share for the first quarter.  The first-quarter 2020 dividend is payable on April 6, 2020, for shareholders of record on March 16, 2020.

About Iron Mountain

Iron Mountain Incorporated (NYSE: IRM), founded in 1951, is the global leader for storage and information management services. Trusted by more than 225,000 organizations around the world, and with a real estate network of more than 90 million square feet across nearly 1,450 facilities in approximately 50 countries, Iron Mountain stores and protects billions of valued assets, including critical business information, highly sensitive data, and cultural and historical artifacts. Providing solutions that include secure records storage, information management, digital transformation, secure destruction, as well as data centers, cloud services and art storage and logistics, Iron Mountain helps customers lower cost and risk, comply with regulations, recover from disaster, and enable a more digital way of working. Visit www.ironmountain.com for more information.

Forward Looking Statements

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws and is subject to the safe-harbor created by such Act.  Forward-looking statements include, but are not, limited to, our financial performance outlook and statements concerning our operations, economic performance, financial condition, goals, beliefs, future growth strategies, investment objectives, plans and current expectations, such as 2020 guidance, expected benefits, costs and actions related to Project Summit, and statements about our investments, dividend policy, leverage, and other goals. These forward-looking statements are subject to various known and unknown risks, uncertainties and other factors. When we use words such as "believes," "expects," "anticipates," "estimates" or similar expressions, we are making forward-looking statements. Although we believe that our forward-looking statements are based on reasonable assumptions, our expected results may not be achieved, and actual results may differ materially from our expectations. In addition, important factors that could cause actual results to differ from expectations include, among others: (i) our ability to remain qualified for taxation as a real estate investment trust for U.S. federal income tax purposes; (ii) the adoption of alternative technologies and shifts by our customers to storage of data through non-paper based technologies; (iii) changes in customer preferences and demand for our storage and information management services; (iv) the cost and our ability to comply with laws, regulations and customer demands relating to data security and privacy issues, as well as fire and safety standards; (v) our ability or inability to execute our strategic growth plan, expand internationally, complete acquisitions on satisfactory terms, and to integrate acquired companies efficiently; (vi) changes in the amount of our growth and recurring capital expenditures and our ability to raise capital and invest according to plan; (vii) the impact of litigation or disputes that may arise in connection with incidents in which we fail to protect our customers' information or our internal records or IT systems and the impact of such incidents on our reputation and ability to compete;(viii) our ability to execute on Project Summit and the potential impacts of Project Summit on our ability to retain and recruit employees and execute on our strategy (ix) changes in the price for our storage and information management services relative to the cost of providing such storage and information management services; (x) changes in the political and economic environments in the countries in which our international subsidiaries operate and changes in the global political climate; (xi) the impact of executing on our growth strategy through joint ventures; (xii) our ability to comply with our existing debt obligations and restrictions in our debt instruments or to obtain additional financing to meet our working capital needs; (xiii) the impact of service interruptions or equipment damage and the cost of power on our data center operations; (xiv) changes in the cost of our debt; (xv) the impact of alternative, more attractive investments on dividends; (xvi) the cost or potential liabilities associated with real estate necessary for our business; (xvii) the performance of business partners upon whom we depend for technical assistance or management expertise; (xviii) other trends in competitive or economic conditions affecting our financial condition or results of operations not presently contemplated; and (xix) other risks described more fully in our filings with the Securities and Exchange Commission, including under the caption "Risk Factors" in our periodic reports or incorporated therein.  You should not rely upon forward-looking statements except as statements of our present intentions and of our present expectations, which may or may not occur. Except as required by law, we undertake no obligation to release publicly the result of any revision to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Consolidated Balance Sheets
(Unaudited; dollars in thousands)
		12/31/2019			12/31/2018
ASSETS
Current Assets:
Cash and Cash Equivalents		$193,555			$165,485
Accounts Receivable, Net		850,701			846,889
Other Current Assets		192,083			195,740
Total Current Assets		$1,236,339			$1,208,114
Property, Plant and Equipment:
Property, Plant and Equipment		$8,048,906			$7,600,949
Less: Accumulated Depreciation		(3,425,869)			(3,111,392)
Property, Plant and Equipment, Net		$4,623,037			$4,489,557
Other Assets, Net:
Goodwill		$4,485,209			$4,441,030
Customer Relationships, Customer Inducements and Data Center Lease-Based Intangibles		1,393,183			1,506,522
Operating Lease Right-of-use Assets		1,869,101			—
Other		209,947			211,995
Total Other Assets, Net		$7,957,440			$6,159,547
Total Assets		$13,816,816			$11,857,218
LIABILITIES AND EQUITY
Current Liabilities:
Current Portion of Long-term Debt		$389,013			$126,406 Werbung Mehr Nachrichten zur Iron Mountain Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 08:55 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Wincanton Plc 08:52 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Network International Holdings Plc 02:00 - PR Newswire Kasei Digital Assets Plc - Launch of New Interactive Investor Hub SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59