Iron Mountain Incorporated (delaware) · NYSE:IRM
Iron Mountain Incorporated (delaware) — Iron Mountain — Q1 2018 Earnings Presentation
17 slides from Iron Mountain Incorporated (delaware)'s earnings presentation, Apr 26, 2018
Slide 1: Q1 2018 Quarterly Results Conference Call
Q1 2018 Quarterly Results Conference Call April 26, 2018
Slide 2: Safe Harbor Language and Reconciliation of Non-GAAP Measures
Safe Harbor Language and Reconciliation of Non-GAAP Measures 2 This presentation 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 st
Slide 3: 2018 Off to a Solid Start
2018 Off to a Solid Start 3 Strong Q1 ‘18 performance supported by storage rental durability and margin expansion • Revenue up 11%, Adjusted EBITDA up 17% and AFFO up 30% with 170 bps expansion of Adjusted EBITDA margin • AFFO growth of 20% including increase in share count, supports targeted divide
Slide 4: Data Center Growth Enhances 2020 Plan and Accelerates Long-term Growth
Data Center Growth Enhances 2020 Plan and Accelerates Long-term Growth 4 80% Developed Portfolio North America and Western Europe Q1’18: ~2% Internal Revenue Growth 20% Growth Portfolio Emerging Markets, Data Center and Adj. Businesses Q1’18: 8% Internal Revenue Growth 2% 10% 3.5%+ Average Internal
Slide 5: Continued Execution of Strategic Plan Driving Growth and Margins in Developed Markets
5 Continued Execution of Strategic Plan Driving Growth and Margins in Developed Markets • Achieved 2.9% internal storage revenue growth despite net internal volume decrease of (0.5%), consistent with annual guidance provided on Q4’17 call • Making further inroads in U.S. Federal business Invested in
Slide 6: Disciplined Capital Allocation Designed to Maximize Returns
2018 Guidance Disciplined Capital Allocation Designed to Maximize Returns Lease Adjusted Net Debt to EBITDAR(1) 6 Dividend as % of AFFO(3) 6.0X 4.0X 4.5X 5.0X 85% 65% 70% 75% Optimal Range(2) Sources of capital: • Growth in operating cash flow • Secured and unsecured borrowings • Real estate capit
Slide 7: Solid Worldwide Financial Performance Growth
Solid Worldwide Financial Performance 7 Growth (1) Reflects adjusted gross profit, excluding Significant Transaction Costs; reconciliation can be found in the Supplemental Financial Information on Page 5 (2) Reconciliation for Adjusted EBITDA and AFFO to their respective GAAP measures can be found i
Slide 8: Strong Internal Revenue Growth in Q1
Strong Internal Revenue Growth in Q1 Developed Markets(1) Other International(2) Total Internal Revenue Growth Storage 2.9% 5.6% 3.7% Service 1.0% 4.4% 1.4% Total 2.1% 5.1% 2.8% % of Total Revenue by Segment Storage 43.9% 12.6% 62.5% Service 29.3% 7.3% 37.5% 8 (1) Represents North America Records an
Slide 9: Solid Adjusted EBITDA Margin Performance Across Segments
Solid Adjusted EBITDA Margin Performance Across Segments 9 Adjusted EBITDA Q1 2017 Q1 2018 Change in bps North America RIM 41.3% 42.8% 150 North America DM 54.8% 53.9% (90) Western Europe 28.4% 32.2% 380 Other International 29.2% 29.2% 0 Global Data Center 24.2% 44.6% 2040 Total 31.2% 32.9% 170 Reco
Slide 10: Competitive Capital Structure
Competitive Capital Structure 10 Source: J.P. Morgan REIT Weekly U.S. Real Estate report April 9, 2018 and company reports Net Leverage Across REIT Sectors IRM vs. Industry
Slide 11: 2020 Plan: Profitable, Sustainable Growth
2020 Plan(1): Profitable, Sustainable Growth 11 (1) Updated to reflect 2017 actuals and 2018 Guidance, including adoption of revenue recognition standards and expansion of data center business. 2020 ranges at 2018 C$ rates. (2) Assumes Real Estate and Non-Real Estate Maintenance CapEx and Non-Real E
Slide 12: Key Takeaways
Key Takeaways 12 Quarter punctuated by strong total revenue growth and 3.7% internal storage rental revenue growth Driving continued improvement in Adjusted EBITDA margins Continuing to execute against our strategic plan to shift revenue mix to faster growing businesses On track with deleveraging an
Slide 13: a Oo Cc © eS or <x A roy Mountain’
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Slide 14: 2018 Guidance
2018 Guidance 14 • Expected internal storage rental revenue growth of 3% - 3.5% and total internal revenue growth of 2% - 3% • Revenue recognition standards: expect to benefit Revenue by $7 mm and Adjusted EBITDA by $25 mm to $30 mm. No benefit is expected for Adjusted EPS or AFFO. • D&A is expected
Slide 15: Increasing Cash Available for Dividends and Discretionary Investments
Increasing Cash Available for Dividends and Discretionary Investments 15 $155 $185 $100 $100 $490 $150 Real Estate Investment and Innovation(2) Data Center Growth Credit Suisse Incremental Capital for Discretionary Investments from borrowing, ATM and capital recycling Growth Investments(3) Sources(3
Slide 16: Storage Continues to Drive Growth
Storage Continues to Drive Growth 16 10.5% 49.1% 18.7% Records Management Secure Shredding Adjacent Businesses Data Management Data Center Digital Solutions Q1’18 Service Revenue 38% of total revenues 28% gross profit margin Q1’18 Storage Revenue 62% of total revenues 74% gross profit margin 19% of
Slide 17: Developed and Other International RM Volume
Developed and Other International RM Volume Developed Markets 17 Other International (1) Q2-17 cube growth has been adjusted to reflect required regulatory divestments in IRM’s legacy Australian business. (2) Represents CuFt acquired at close. CuFt activity post close flows through new sales, new vo