Iron Mountain Incorporated (delaware) · NYSE:IRM
Iron Mountain Incorporated (delaware) — Iron Mountain — Q2 2017 Earnings Presentation
45 slides from Iron Mountain Incorporated (delaware)'s earnings presentation, Jul 28, 2017
Slide 1: Supplemental Financial Information Second Quarter 2017
www.ironmountain.com Supplemental Financial Information Second Quarter 2017 Unaudited
Slide 2: Safe Harbor Statement
www.ironmountain.com Selected metric definitions are available in the Appendix Safe Harbor Statement 2 Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigati
Slide 3: Table of Contents
www.ironmountain.com Selected metric definitions are available in the Appendix All figures except per share and facility counts in 000s unless noted All figures in reported dollars unless noted Figures may not foot due to rounding Table of Contents 3 Investor Relations Contacts: Faten Freiha, 617-53
Slide 4: Company Profile
www.ironmountain.com Selected metric definitions are available in the Appendix Product Company Profile Iron Mountain is a global leader in enterprise storage with a high-return, real estate-based business model, yielding annualized revenue of approximately $3.8 billion. The company provides storage
Slide 5: Financial Highlights
www.ironmountain.com Selected metric definitions are available in the Appendix Financial Highlights 5 (1) Please see slide 22 for Storage Net Operating Income reconciliation. (2) Q2 2016 AFFO has been revised to reflect the new AFFO definition introduced in the Q4 2016 Supplemental Financial Informa
Slide 6: 2017 Guidance Summary
www.ironmountain.com Selected metric definitions are available in the Appendix 2017 Guidance Summary(1) 6 (1) Iron Mountain does not provide a reconciliation of non-GAAP measures that it discusses as part of its annual guidance or long term outlook because certain significant information required fo
Slide 7: Year-over-Year Revenue Growth
www.ironmountain.com Selected metric definitions are available in the Appendix Year-over-Year Revenue Growth 7 38.4% 61.6% Service Storage Rental 17.8% 82.2% Service Storage Rental YTD 2017 Revenue YTD 2017 Gross Profit S e c t i o n V I I I S e c t i o n I X S e c t i o n V I I S e c t i o n V I S
Slide 8: Records Management Volume Growth
www.ironmountain.com Selected metric definitions are available in the Appendix Records Management Volume Growth 8 ‐4.5% ‐4.6% ‐4.8% ‐4.8% ‐4.9% ‐5.0% ‐5.0% ‐4.0% ‐2.1% ‐2.1% ‐2.0% ‐2.1% ‐2.2% ‐2.3% ‐2.4% ‐2.0% 5.7% 5.8% 5.8% 6.0% 6.2% 6.3% 6.4% 5.0% 2.4% 2.5% 2.6% 2.6% 2.7% 2.8% 3.0% 2.3% 1.6% Q2‐17
Slide 9: Records Management Volume Growth
www.ironmountain.com Selected metric definitions are available in the Appendix Records Management Volume Growth 9 3.6% Q4‐16 48.4% ‐2.7% ‐5.8% 6.3% 4.9% 45.7% Q3‐16 49.3% ‐2.7% ‐4.3% 5.8% 4.4% 46.1% Q2‐16 37.8% ‐2.6% ‐3.9% 5.5% 4.8% 34.1% Q1‐16 3.0% ‐2.3% ‐4.1% 5.0% 4.4% Q4‐15 3.1% ‐2.1% ‐4.4% 5.1%
Slide 10: Quarterly Operating Performance
www.ironmountain.com Selected metric definitions are available in the Appendix Quarterly Operating Performance 10 S e c t i o n V I I I S e c t i o n I X S e c t i o n V I I S e c t i o n V I S e c t i o n V S e c t i o n X S e c t i o n I V S e c t i o n I I I S e c t i o n I I S e c t i o n I Q2 R
Slide 11: Year-to-Date Operating Performance
www.ironmountain.com Selected metric definitions are available in the Appendix Year-to-Date Operating Performance 11 S e c t i o n V I I I S e c t i o n I X S e c t i o n V I I S e c t i o n V I S e c t i o n V S e c t i o n X S e c t i o n I V S e c t i o n I I I S e c t i o n I I S e c t i o n I Y
Slide 12: Consolidated Balance Sheets
www.ironmountain.com Selected metric definitions are available in the Appendix Consolidated Balance Sheets 12 S e c t i o n V I I I S e c t i o n I X S e c t i o n V I I S e c t i o n V I S e c t i o n V S e c t i o n I I I S e c t i o n X S e c t i o n I S e c t i o n I I S e c t i o n I V (1) Incl
Slide 13: Consolidated Statements of Operations
www.ironmountain.com Selected metric definitions are available in the Appendix Consolidated Statements of Operations 13 (1) Includes $0.3mm and $5.1mm of Recall Costs in Q2 2016 and Q2 2017, respectively. Also, includes $0.3mm and $13.0mm of Recall Costs in YTD 2016 and YTD 2017, respectively. (2) I
Slide 14: Reconciliation of Income from Continuing Operations to Adjusted EBITDA
www.ironmountain.com Selected metric definitions are available in the Appendix 14 Reconciliation of Income (Loss) from Continuing Operations to Adjusted EBITDA (1) Includes realized and unrealized FX (gains) losses. S e c t i o n V I I I S e c t i o n I X S e c t i o n V I I S e c t i o n V I S e c
Slide 15: Reconciliation of Reported EPS to Adjusted EPS
www.ironmountain.com Selected metric definitions are available in the Appendix 15 Reconciliation of Reported Earnings per Share to Adjusted Earnings per Share (1) The difference between our effective tax rate and our structural tax rate (or adjusted effective tax rate) for the three and six months e
Slide 16: Reconciliation of Net Income to FFO & AFFO
www.ironmountain.com Selected metric definitions are available in the Appendix 16 Reconciliation of Net Income to FFO & AFFO (1) Includes realized and unrealized FX (gains) losses. (2) Calculated as actual cash taxes less current tax provision and other one-time cash tax items, to reflect actual cas
Slide 17: Reconciliation of Cash Flow from Operations to AFFO
www.ironmountain.com Selected metric definitions are available in the Appendix 17 Reconciliation of Cash Flow from Operations to AFFO (1) Calculated as actual cash taxes less current tax provision and other one-time cash tax items, to reflect actual cash tax (impact)/benefit to AFFO. (2) Working cap
Slide 18: Quarterly Revenue Growth Bridge
www.ironmountain.com Selected metric definitions are available in the Appendix 18 Quarterly Revenue Growth Bridge ($mm) 7% Reported R$ 8% C$ Normalized $17 $57 $884 Q2 2017 Revenue ‐ Reported $ $950 IRM and Recall Combined Organic Revenue Growth Benefit from Extra Month of Recall Q2 2016 Revenue at
Slide 19: Quarterly Normalized Adjusted EBITDA Bridge
www.ironmountain.com Selected metric definitions are available in the Appendix 19 Quarterly Normalized Adjusted EBITDA Bridge ($mm) 23% C$ Normalized $22 $12 $25 Q2 2017 Adjusted EBITDA ‐ Reported $ $318 IRM and Recall Adjusted EBITDA Growth Benefit from Extra Month of Recall Net of Divestitures Rec
Slide 20: Quarterly Normalized Adjusted EPS Bridge
www.ironmountain.com Selected metric definitions are available in the Appendix 20 Quarterly Normalized Adjusted EPS Bridge 36% Normalized Comparison $0.24 $0.02 $0.22 $0.07 $0.04 $0.07 $0.04 $0.04 $0.30 $0.01 Q2 2017 Adjusted EPS ‐ Reported $ Tax Rate Increase Increase in D&A Increase in Interest Ex
Slide 21: Storage and Service Reconciliation
www.ironmountain.com Selected metric definitions are available in the Appendix 21 Storage and Service Reconciliation S e c t i o n V I I I S e c t i o n I X S e c t i o n V I I S e c t i o n V I S e c t i o n X S e c t i o n I I I S e c t i o n I I S e c t i o n I S e c t i o n V S e c t i o n I V Q
Slide 22: Storage Rental Activities and Storage NOI
www.ironmountain.com Selected metric definitions are available in the Appendix Q2 2016 Q2 2017 % Change YTD 2016 YTD 2017 % Change Revenue from Storage Rental Activities Records Management $425,107 $462,873 8.9% $782,584 $913,345 16.7% Data Protection 83,399 88,252 5.8% 157,895 175,711 11.3% Other(1
Slide 23: Service Business Detail
www.ironmountain.com Selected metric definitions are available in the Appendix Service Business Detail 23 (1) Includes Fulfillment Services, Information Governance and Digital Solutions, Technology Escrow Services, Data Center, Consulting, Entertainment Services, Fine Art Storage, Consumer Storage a
Slide 24: Gross Book Value of Real Estate Assets
www.ironmountain.com Selected metric definitions are available in the Appendix Gross Book Value of Real Estate Assets 24 (1) Includes warehouse equipment, vehicles, furniture, fixtures, computer hardware and software. To be updated S e c t i o n V I I I S e c t i o n I X S e c t i o n V I I S e c t
Slide 25: Lease Obligations
www.ironmountain.com Selected metric definitions are available in the Appendix Lease Obligations(1) (1) Includes capital and operating lease obligations. (2) Reflects month to month leases and predominantly short term occupancies. Weighted Average Remaining Lease Obligations (exercise of all extensi
Slide 26: Global Real Estate Portfolio
www.ironmountain.com Selected metric definitions are available in the Appendix Global Real Estate Portfolio(1) 26 (1) Includes real estate held in joint ventures. (2) Includes South Africa. (3) Out of the 24 leased building additions and expansions, 12 were the result of acquiring leases in business
Slide 27: Revenue and Storage NOI per Racked Square Foot
www.ironmountain.com Selected metric definitions are available in the Appendix Revenue from Rental Activities and Storage NOI per Racked Square Foot 27 (1) Includes loading docks, unracked space, office space, common areas, as well as space in service-related facilities. (2) Excludes Revenue and NOI
Slide 28: Portfolio Utilization
www.ironmountain.com Selected metric definitions are available in the Appendix Portfolio Utilization Records Management Storage Portfolio (CuFt MM) As of 6/30/2017 6464 130 5665 129 0 500 100 600 700 North America 430 -2.1% Total IRM 674 Asia -0.9% -1.4% +1.4% -12.6% 688 Latin America 424 Europe 100
Slide 29: Customer Data
www.ironmountain.com Selected metric definitions are available in the Appendix Customer Data 29 (1) No single vertical within ‘Other’ comprises greater than 1% of North America Revenue. (2) Customer acquisition costs include the acquisition of customer relationships and customer inducements such as
Slide 30: Debt Schedule
www.ironmountain.com Selected metric definitions are available in the Appendix Debt Schedule 30 $189 $992 $250 $300 $1,000 $793 $654 $1,016 $343 Thereafter20262025202420232022 $709 2021202020192018 24% 76% Fixed vs. Floating Rate Debt at 6/30/17(4) Debt Maturity Schedule ($MM) Floating Rate Debt Fix
Slide 31: Capitalization
www.ironmountain.com Selected metric definitions are available in the Appendix Capitalization 31 (1) Total debt net of cash is calculated as current portion of long-term debt of $6,029mm plus long-term debt net of current portion of $423mm plus $66mm of deferred financing costs less cash and cash eq
Slide 32: Capital Expenditures and Investments
www.ironmountain.com Selected metric definitions are available in the Appendix Capital Expenditures and Investments 32 (1) Includes Recall CapEx of $1.6mm and $11.3mm in Q2 2016 and Q2 2017, respectively. Also, includes Recall CapEx of $1.93mm and $17.6mm in YTD 2016 and YTD 2017, respectively. (2)
Slide 33: 2017 Business and Customer Acquisition and Disposition Activity Investments
www.ironmountain.com Selected metric definitions are available in the Appendix 2017 Business and Customer Acquisition and Disposition Activity Investments(1) 33 (1) Based on 2017 C$ Budgeted FX Rates. (2) Racking Installations exclude consolidation spend in Total Expected Investment, Investment in C
Slide 34: Components of Value
www.ironmountain.com Selected metric definitions are available in the Appendix Components of Value 34 (1) Includes South Africa. (2) Trailing four quarter prior to rental expense. (3) Estimated adjustment to annualize for Recall Service EBITDAR. (4) Includes Cash, Cash Equivalents, Restricted Cash,
Slide 35: Q1-Q4 Reconciliation to AFFO
www.ironmountain.com Selected metric definitions are available in the Appendix 35 Appendix: Q1-Q4 Reconciliation to AFFO (1) Includes realized and unrealized FX (gains) losses. (2) The Tax Impact of Reconciling Items and Discrete Tax Items is calculated using the current quarter’s estimate structura
Slide 36: Non-GAAP Measures
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 36 Non-GAAP Measures Non-GAAP measures are supplemental metrics designed to enhance our disclosure and to provide additional information that we believe to be important for investors to consider when evaluating o
Slide 37: Non-GAAP Measures (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix Non-GAAP Measures (continued) Adjusted EBITDA and Adjusted EBITDA Margin Adjusted EBITDA is defined as (loss) income from continuing operations before interest expense, net, provision (benefit) for income taxes,
Slide 38: Non-GAAP Measures (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix Non-GAAP Measures (continued) FFO (Normalized) per share FFO (Normalized) divided by weighted average fully-diluted shares outstanding. Service Adjusted EBITDA Service Adjusted EBITDA is calculated by taking serv
Slide 39: Definitions
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix Definitions Average Stabilization Period – For racking projects, the stabilization period is 8 to 12 months. For new buildings it is 24 to 36 months, assuming phased racking installations over three years. For bu
Slide 40: Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix Definitions (continued) Other International Business – Our Other International Business segment provides records and information management services throughout the remaining European countries in which we operate
Slide 41: Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 41 Definitions (continued) Capital Expenditures and Investments – Our business requires capital expenditures to support our expected storage rental revenue and service revenue growth and ongoing operations, new p
Slide 42: Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 42 Definitions (continued) Capital Expenditures and Investments (continued) Components of Overhead Allocated Overhead – Includes overhead expenses directly associated with storage and service business operations
Slide 43: Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 43 Definitions (continued) Internal Revenue Growth – Our internal revenue growth rate, which is a non-GAAP measure, represents the weighted average year-over-year growth rate of our revenues excluding the impact
Slide 44: Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 44 Definitions (continued) Service Profit and Margin – The Gross Profit and Margin attributable to the worldwide service business. Calculated as follows: Services Adj. EBITDA + Allocated Overhead Expenses + Termi
Slide 45: Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 45 Definitions (continued) Total Expected Investment – Is defined as follows: Total Expected Investment for Racking Installations – The sum of expected investments for all approved racking projects, reported on a