Iron Mountain Incorporated (delaware) · NYSE:IRM
Iron Mountain Incorporated (delaware) — Iron Mountain — Q1 2018 Earnings Presentation
47 slides from Iron Mountain Incorporated (delaware)'s earnings presentation, Apr 26, 2018
Slide 1: Supplemental Financial Information First Quarter 2018
www.ironmountain.com Supplemental Financial Information First Quarter 2018 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: Anjaneya Singh, 617-
Slide 4: Company Profile
www.ironmountain.com Selected metric definitions are available in the Appendix 66% 19% 7% 7% 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 $4.2 billion. The company pro
Slide 5: Financial Highlights
www.ironmountain.com Selected metric definitions are available in the Appendix Financial Highlights 5 (1) Please see slide 19 for Storage Net Operating Income reconciliation. Se ct ion V II I 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 II I Se ct io n X Se ct i
Slide 6: 2018 Guidance Summary
www.ironmountain.com Selected metric definitions are available in the Appendix 2018 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 81.3% 18.7% Storage Rental Service Q1 2018 Revenue Q1 2018 Gross Profit 62.5% 37.5% Se ct ion V II I Se ct io n IX Se ct io n V II Se ct io n V I Se ct io n V Se ct i
Slide 8: Records Management Volume Growth
www.ironmountain.com Selected metric definitions are available in the Appendix Records Management Volume Growth 8 6.0% 6.2% 6.3% 6.4% 5.2% 5.0% 4.9% 4.7% 2.6% 2.7% 2.8% 3.0% 2.4% 2.3% 2.2% 1.9% 0.1% 0.5% -4.8% -4.9% -5.0% -5.0% -4.1% -4.0% -3.9% -4.0% -2.1% -2.2% -2.3% -2.4% -2.1% -2.1% -2.1% -2.0%
Slide 9: Records Management Volume Growth
www.ironmountain.com Selected metric definitions are available in the Appendix Records Management Volume Growth 9 3.6% 4.4% -2.3% -4.4% 5.8% -2.7% 45.5% Q4-17 Q3-16 45.7% 5.1% 4.9% 6.3% -5.8% -2.7% Q4-16 6.9% Q2-17 -6.2% -2.6% Q1-17 34.1% 4.4% 4.0% 4.3% -4.8% 4.7% 11.7% Q3-17 4.6% 49.3% -4.0% -2.7%
Slide 10: Quarterly Operating Performance
www.ironmountain.com Selected metric definitions are available in the Appendix Quarterly Operating Performance 10 Se ct ion V II I 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 II I Se ct io n X Se ct io n II Se ctio n I Se ct io n X I (1) Includes adjustments fo
Slide 11: Consolidated Balance Sheets
www.ironmountain.com Selected metric definitions are available in the Appendix Consolidated Balance Sheets 11 (1) Includes redeemable noncontrolling interests of $91mm and $93mm as of December 31, 2017 and March 31, 2018, respectively. Se ct ion V II I Se ct io n IX Se ct io n V II Se ct io n V I Se
Slide 12: Consolidated Statements of Operations
www.ironmountain.com Selected metric definitions are available in the Appendix Consolidated Statements of Operations 12 (1) Includes $7.9mm and $0.3mm of Significant Acquisition Costs in Q1 2017 and Q1 2018, respectively. (2) Includes $12.7mm and $18.7mm of Significant Acquisition Costs in Q1 2017 a
Slide 13: Reconciliation of Income from Continuing Operations to Adjusted EBITDA
www.ironmountain.com Selected metric definitions are available in the Appendix 13 Reconciliation of Income (Loss) from Continuing Operations to Adjusted EBITDA (1) Includes realized and unrealized FX (gains) losses. Se ct ion V II I Se ct io n IX Se ct io n V II Se ct io n V I Se ct io n V Se ct io
Slide 14: Reconciliation of Reported EPS to Adjusted EPS
www.ironmountain.com Selected metric definitions are available in the Appendix 14 Reconciliation of Reported Earnings per Share to Adjusted Earnings per Share (1) The difference between our effective tax rate and our structural tax rate (or adjusted effective tax rate) for the three months ended Mar
Slide 15: Reconciliation of Net Income to FFO & AFFO
www.ironmountain.com Selected metric definitions are available in the Appendix 15 Reconciliation of Net Income to FFO & AFFO (1) Includes realized and unrealized FX (gains) losses. (2) Calculated as actual cash taxes less current tax provision and other one-time cash tax items, to reflect actual cas
Slide 16: Reconciliation of Cash Flow from Operations to AFFO
www.ironmountain.com Selected metric definitions are available in the Appendix 16 Reconciliation of Cash Flow from Operations to AFFO (1) Calculated as actual cash taxes less current tax provision and other one-time cash tax items, to reflect actual cash tax (impact)/benefit to AFFO. (2) Working cap
Slide 17: Quarterly Revenue Growth Bridge
www.ironmountain.com Selected metric definitions are available in the Appendix 17 Quarterly Revenue Growth Bridge ($mm) 11% Reported R$ 8% C$ $27 $32 $50 FX Impact at Q1 2018 FX Rates Revenue Growth Excluding FX Benefit Impact of IO Data Centers Q1 2017 Revenue at Q1 2018 FX Rates $939 Q1 2017 Reven
Slide 18: Quarterly Adjusted EBITDA Bridge
www.ironmountain.com Selected metric definitions are available in the Appendix 18 Quarterly Adjusted EBITDA Bridge ($mm) 14% C$ $9 $18 $21 $4 FX Impact at Q1 2018 FX Rates $293 Q1 2017 Adjusted EBITDA - Reported $ $301 Q1 2017 Adjusted EBITDA at Q1 2018 FX Rates $2 Impact of Russia & Ukraine Divesti
Slide 19: Storage and Service Reconciliation
www.ironmountain.com Selected metric definitions are available in the Appendix 19 Storage and Service Reconciliation(1) Se ct ion V II I 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 II I Se ct io n X Se ct io n II Se ctio n I Se ct io n X I (1) Our storage and s
Slide 20: Storage Net Operating Income (NOI)
www.ironmountain.com Selected metric definitions are available in the Appendix 20 Storage Net Operating Income (NOI)(1) (1) Our storage and service revenues and Adjusted Storage and Service EBITDA margins for Q1 2018 reflect a net reclassification of $6.3mm of storage rental revenues and Storage Adj
Slide 21: Service Business Detail
www.ironmountain.com Selected metric definitions are available in the Appendix Service Business Detail(1) 21 (1) Our storage and service revenues and Adjusted Storage and Service EBITDA margins for Q1 2018 reflect a net reclassification of $6.3mm of storage rental revenues and Storage Adjusted EBITD
Slide 22: 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 22 (1) Includes warehouse equipment, vehicles, furniture, fixtures, computer hardware and software. Se ct ion V II I Se ct io n IX Se ct io n V II Se ct io n V I Se ct io n V Se ct i
Slide 23: 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 (assuming exercise of al
Slide 24: Global Real Estate Portfolio
www.ironmountain.com Selected metric definitions are available in the Appendix Global Real Estate Portfolio(1) 24 (1) Includes real estate held in consolidated joint ventures. (2) Includes South Africa and United Arab Emirates. (3) Reflects adjustments to previous periods due to refinements to real
Slide 25: 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 25 (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 26: Portfolio Utilization
www.ironmountain.com Selected metric definitions are available in the Appendix Portfolio Utilization Records Management Storage Portfolio (CuFt MM) As of 3/31/2018 134 64 55 134 68 70 600 700 500 0 100 Latin America Asia 424 North America Europe Total IRM 422 677 693 -0.5% +0.5% +5.0% +26.1% +2.4% 1
Slide 27: Customer Quality Metrics
www.ironmountain.com Selected metric definitions are available in the Appendix Q1 2018 Full Year 2017 Full Year 2016 Full Year 2015 Customer Quality Metrics Volu e Retention Rate (RM Global) 94.0% 94.0% 92.6% 93.3% Bad Debt Expense as a % of Consolidated Revenues 0.6 0.4 0.2 0.5 Turnover Expenditure
Slide 28: Data Center Customer and Portfolio Metrics
www.ironmountain.com Selected metric definitions are available in the Appendix Capacity and Investment Activity Data Center Customer and Portfolio Metrics(1) 28 Se ct ion V II I Se ct io n IX Se ct io n V II Se ct io n V I Se ct io n IV Se ct io n II I Se ct io n X Se ct io n II Se ctio n I Se ct io
Slide 29: Debt Schedule
www.ironmountain.com Selected metric definitions are available in the Appendix $79 $40 $360 $547 $1,246 $820 $1,007 $937 $951 $1,000 $825 2023 2022 2027 2025 2020 2021 2024 2026 Thereafter 2018 2019 Debt Schedule 29 73% 27% Fixed vs. Floating Rate Debt at 3/31/18(4) Total Borrowings Maturity Schedul
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 $137mm plus long-term debt net of current portion of $8,021mm plus $93mm 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 Significant Acquisition Integration CapEx of $6.3mm and $1.9mm in Q1 2017 and Q1 2018, respectively. (2) Includes Land, Buildings, Improvements, and Racking Structures.
Slide 32: Business and Customer Acquisitions
www.ironmountain.com Selected metric definitions are available in the Appendix Business and Customer Acquisitions 32 Se ct ion V II I Se ct io n IX Se ct io n V II Se ct io n V I Se ct io n V Se ct io n IV Se ct io n II I Se ct io n X Se ct io n II Se ctio n I Se ct io n X I Q1 2017 Q1 2018 % Change
Slide 33: Real Estate Investments
www.ironmountain.com Selected metric definitions are available in the Appendix Real Estate Investments(1) 33 (1) Based on 2018 C$ Budgeted FX Rates. (2) Racking Installations exclude consolidation spend in Total Expected Investment, Investment in Current Period and Cumulative Investment to Date of $
Slide 34: Acquisitions and Disposals
www.ironmountain.com Selected metric definitions are available in the Appendix Acquisitions and Disposals(1) 34 (1) Based on 2018 C$ Budgeted FX Rates. Se ct ion V II I 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 II I Se ct io n X Se ct io n II Se ctio n I Se c
Slide 35: Components of Value
www.ironmountain.com Selected metric definitions are available in the Appendix Components of Value 35 (1) Includes South Africa and United Arab Emirates. (2) Proforma includes full quarterization of IO Data Centers and Credit Suisse data centers. (3) Q1 2018 annualized. (4) Includes Cash, Cash Equiv
Slide 36: 2017 Quarterly Results Based on New Reporting Segments
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 36 Se ct ion V II I 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 II I Se ct io n X Se ct io n II Se ctio n I Se ct io n X I 2017 Quarterly Results Based on New Reporting Segm
Slide 37: Non-GAAP Measures and Definitions
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 37 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 38: 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 39: 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 40: 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 41: 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 42: Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 42 Definitions (continued) Capacity Measures Building Capacity – The maximum number of cubic feet of records or standard DPUs that can be stored in a given facility. Building Capacity Utilization – The number of
Slide 43: Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 43 Definitions (continued) Capital Expenditures and Investments (continued) Non-Real Estate: Investment – Non-real estate assets that either (i) support the growth of our business, and/or increase our profitabili
Slide 44: Other Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 44 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 45: Other Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 45 Other Definitions (continued) Data Center Business Definitions (continued) TCV – “Total Contract Value” represents total revenue contracted for active contracts through the contract term, not including renewal
Slide 46: Other Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 46 Other Definitions (continued) Non-Cash Rent Expense – Calculated as rent expense less cash paid for rent. Permanent Withdrawal Rate – Calculated by dividing the total number of cubic feet of records removed fr
Slide 47: Other Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 47 Other Definitions (continued) Tangible Assets – Includes PP&E, cash and cash equivalents, restricted cash, accounts receivable, deferred income taxes, and prepaid expenses. Tax Rates Effective Tax Rate – GAAP