Iron Mountain Incorporated (delaware) · NYSE:IRM
Iron Mountain Incorporated (delaware) — Iron Mountain — Q3 2017 Earnings Presentation
44 slides from Iron Mountain Incorporated (delaware)'s earnings presentation, Oct 24, 2017
Slide 1: Supplemental Financial Information Third Quarter 2017
www.ironmountain.com Supplemental Financial Information Third 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 $3.9 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 21 for Storage Net Operating Income reconciliation. (2) Q3 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 Service Storage Rental 18.1% 81.9% Service Storage Rental YTD 2017 Revenue YTD 2017 Gross Profit Se ct io n V III Se ct io n IX Se ct io n V II Se ct io n V I Se ct io n V Se ct io n IV Se
Slide 8: Records Management Volume Growth
www.ironmountain.com Selected metric definitions are available in the Appendix Records Management Volume Growth 8 -4.6% -4.8% -4.8% -4.9% -5.0% -5.0% -4.1% -3.9% -2.1% -2.0% -2.1% -2.2% -2.3% -2.4% -2.1% -2.1% 5.8% 5.8% 6.0% 6.2% 6.3% 6.4% 5.2% 5.0% 2.5% 2.6% 2.6% 2.7% 2.8% 3.0% 2.4% 2.3% 0.1% 1.6%
Slide 9: Records Management Volume Growth
www.ironmountain.com Selected metric definitions are available in the Appendix Records Management Volume Growth 9 3.6% 4.3% 9.2% Q1-17 49.2% -2.6% -6.2% 6.9% 5.7% 45.5% 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%
Slide 10: Quarterly Operating Performance
www.ironmountain.com Selected metric definitions are available in the Appendix Quarterly Operating Performance 10 Se ct io n V III Se ct io n IX Se ct io n V II Se ct io n V I Se ct io n V Se ct io n X Se ct io n IV Se ct io n III Se ct io n II Se ct io n I Q3 Results % Growth By Reporting Segment Q
Slide 11: Year-to-Date Operating Performance
www.ironmountain.com Selected metric definitions are available in the Appendix Year-to-Date Operating Performance 11 Se ct io n V III Se ct io n IX Se ct io n V II Se ct io n V I Se ct io n V Se ct io n X Se ct io n IV Se ct io n III Se ct io n II Se ct io n I Year-to-Date Results % Growth By Report
Slide 12: Consolidated Balance Sheets
www.ironmountain.com Selected metric definitions are available in the Appendix Consolidated Balance Sheets 12 Se ct io n V III Se ct io n IX Se ct io n V II Se ct io n V I Se ct io n V Se ct io n III Se ct io n X Se ct io n I Se ct io n II Se ct io n IV (1) Includes redeemable noncontrolling interes
Slide 13: Consolidated Statements of Operations
www.ironmountain.com Selected metric definitions are available in the Appendix Consolidated Statements of Operations 13 (1) Includes $4.5mm and $3.1mm of Recall Costs in Q3 2016 and Q3 2017, respectively. Also, includes $4.8mm and $16.0mm 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) Net of tax provision of $0.6mm in Q3 2017 and YTD 2017. (2) Includes realized and unrealized FX (gains) losses. (3) Other Expense (Incom
Slide 15: Reconciliation of Reported EPS to Adjusted EPS
www.ironmountain.com Selected metric definitions are available in the Appendix 15 Reconciliation of Reported Earnings per Share to Adjusted Earnings per Share (1) The difference between our effective tax rate and our structural tax rate (or adjusted effective tax rate) for the three and nine months
Slide 16: Reconciliation of Net Income to FFO & AFFO
www.ironmountain.com Selected metric definitions are available in the Appendix 16 Reconciliation of Net Income to FFO & AFFO (1) Includes realized and unrealized FX (gains) losses. (2) Calculated as actual cash taxes less current tax provision and other one-time cash tax items, to reflect actual cas
Slide 17: Reconciliation of Cash Flow from Operations to AFFO
www.ironmountain.com Selected metric definitions are available in the Appendix 17 Reconciliation of Cash Flow from Operations to AFFO (1) Calculated as actual cash taxes less current tax provision and other one-time cash tax items, to reflect actual cash tax (impact)/benefit to AFFO. (2) Working cap
Slide 18: Quarterly Revenue Growth Bridge
www.ironmountain.com Selected metric definitions are available in the Appendix 18 Quarterly Revenue Growth Bridge ($mm) 2% Reported R$ 1% C$ $11 $12 Q3 2016 Revenue - Reported $ $943 Q3 2017 Revenue - Reported $ $966 Revenue Growth Excluding FX Benefit Q3 2016 Revenue at Q3 2017 FX Rates $954 FX Imp
Slide 19: Quarterly Adjusted EBITDA Bridge
www.ironmountain.com Selected metric definitions are available in the Appendix 19 Quarterly Adjusted EBITDA Bridge ($mm) 8% C$ $25 $4 Q3 2017 Adjusted EBITDA - Reported $ $323 Growth Excluding FX Benefit Q3 2016 Adjusted EBITDA at Q3 2017 FX Rates $298 FX Impact at Q3 2017 FX Rates Q3 2016 Adjusted
Slide 20: Storage and Service Reconciliation
www.ironmountain.com Selected metric definitions are available in the Appendix 20 Storage and Service Reconciliation Se ct io n V III Se ct io n IX Se ct io n V II Se ct io n V I Se ct io n X Se ct io n III Se ct io n II Se ct io n I Se ct io n V Se ct io n IV Q3 2016 Q3 2017 % Change YTD 2016 YTD 2
Slide 21: Storage Net Operating Income (NOI)
www.ironmountain.com Selected metric definitions are available in the Appendix 21 Storage Net Operating Income (NOI) (1) Includes Data Center, Fine Art Storage, Consumer Storage, Technology Escrow Services, Digital Storage, Fulfillment Services, Information Governance and Digital Solutions, Entertai
Slide 22: Service Business Detail
www.ironmountain.com Selected metric definitions are available in the Appendix Service Business Detail 22 (1) Includes Fulfillment Services, Information Governance and Digital Solutions, Technology Escrow Services, Data Center, Consulting, Entertainment Services, Fine Art Storage, Consumer Storage a
Slide 23: 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 23 (1) Includes warehouse equipment, vehicles, furniture, fixtures, computer hardware and software. Se ct io n V III Se ct io n IX Se ct io n V II Se ct io n X Se ct io n V I Se ct i
Slide 24: 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 25: Global Real Estate Portfolio
www.ironmountain.com Selected metric definitions are available in the Appendix Global Real Estate Portfolio(1) 25 (1) Includes real estate held in joint ventures. (2) Includes South Africa and United Arab Emirates. (3) Out of the 51 leased building additions and expansions, 41 were the result of acq
Slide 26: Revenue from Rental Activities 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 26 (1) Includes South Africa and United Arab Emirates. (2) Includes loading docks, unracked space, office space, common areas, as well as space in serv
Slide 27: Portfolio Utilization
www.ironmountain.com Selected metric definitions are available in the Appendix Portfolio Utilization Records Management Storage Portfolio (CuFt MM) As of 9/30/2017 6864 132 5767 130 700 600 500 100 0 -2.2% -0.9% -1.6% -17.2% +3.6% Total IRM 677 693 Asia Latin America Europe North America 425 429 800
Slide 28: Customer Data
www.ironmountain.com Selected metric definitions are available in the Appendix Customer Data 28 (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. Federal
Slide 29: Debt Schedule
www.ironmountain.com Selected metric definitions are available in the Appendix Debt Schedule 29 $254 $1,000 2024 $300 2025 $354 2026 2027 2023 $1,000 $800 2022 $2,191 $1,655 2021 $500 2020 $270 Thereafter 30% 70% Fixed vs. Floating Rate Debt at 9/30/17(4) Debt Maturity Schedule ($MM) Floating Rate D
Slide 30: Capitalization
www.ironmountain.com Selected metric definitions are available in the Appendix Capitalization 30 (1) Total debt net of cash is calculated as current portion of long-term debt of $180mm plus long-term debt net of current portion of $6,700mm plus $75mm of deferred financing costs less cash and cash eq
Slide 31: Capital Expenditures and Investments
www.ironmountain.com Selected metric definitions are available in the Appendix Capital Expenditures and Investments 31 (1) Includes Recall Integration CapEx of $4.9mm and $6.3mm in Q3 2016 and Q3 2017, respectively. Also, includes Recall CapEx of $6.9mm and $23.9mm in YTD 2016 and YTD 2017, respecti
Slide 32: Real Estate Investments
www.ironmountain.com Selected metric definitions are available in the Appendix Real Estate Investments(1) 32 (1) Based on 2017 C$ Budgeted FX Rates. (2) Racking Installations exclude consolidation spend in Total Expected Investment, Investment in Current Period and Cumulative Investment to Date of $
Slide 33: 2017 Business and Customer Acquisition and Disposition Activity
www.ironmountain.com Selected metric definitions are available in the Appendix 2017 Business and Customer Acquisition and Disposition Activity Acquisitions and Disposals(1) 33 Se ct io n V III Se ct io n IX Se ct io n V II Se ct io n V I Se ct io n V Se ct io n IV Se ct io n III Se ct io n II Se ct
Slide 34: Components of Value
www.ironmountain.com Selected metric definitions are available in the Appendix Components of Value 34 (1) Excludes one month of FORTRUST. (2) Includes South Africa and United Arab Emirates. (3) Trailing four quarter prior to rental expense. (4) Includes Cash, Cash Equivalents, Restricted Cash, Accou
Slide 35: Non-GAAP Measures and Definitions
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 35 Non-GAAP Measures and Definitions 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 w
Slide 36: Non-GAAP Measures and Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix Non-GAAP Measures and Definitions (continued) Adjusted EBITDA and Adjusted EBITDA Margin Adjusted EBITDA is defined as income (loss) from continuing operations before interest expense, net, provision (benefit) fo
Slide 37: Non-GAAP Measures and Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix Non-GAAP Measures and Definitions (continued) FFO (Normalized) per share FFO (Normalized) divided by weighted average fully-diluted shares outstanding. Service Adjusted EBITDA Service Adjusted EBITDA is calculate
Slide 38: Other Definitions
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix Other 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.
Slide 39: Other Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix Other Definitions (continued) Other International Business – Our Other International Business segment provides records and information management services throughout the remaining European countries in which we o
Slide 40: Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 40 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 41: Other Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 41 Other Definitions (continued) Capital Expenditures and Investments (continued) Components of Overhead Allocated Overhead – Includes overhead expenses directly associated with storage and service business opera
Slide 42: Other Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 42 Other Definitions (continued) Destruction Rate – Calculated by dividing the total number of cubic feet of records removed from inventory due to destructions in a one-year period divided by the total number of
Slide 43: Other Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 43 Other Definitions (continued) Permanent Withdrawal Rate – Calculated by dividing the total number of cubic feet of records removed from inventory due to permanent withdrawals in a one-year period divided by th
Slide 44: Other Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 44 Other Definitions (continued) Tax Rates Effective Tax Rate – GAAP tax rate for the period calculated as tax expense or benefit for the quarter (total of current and deferred tax provisions), including discrete