Iron Mountain Incorporated (delaware) · NYSE:IRM
Iron Mountain Incorporated (delaware) — Iron Mountain — Q2 2018 Earnings Presentation
17 slides from Iron Mountain Incorporated (delaware)'s earnings presentation, Jul 27, 2018
Slide 1: Q2 2018 Quarterly Results Conference Call
Q2 2018 Quarterly Results Conference Call July 27, 2018
Slide 2: Safe Harbor Language and Reconciliation of Non-GAAP Measures
Safe Harbor Language and 2 Reconciliation of Non-GAAP Measures 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: Strong Q2 and First Half Performance
3 Strong Q2 and First Half Performance Strong Q2 ‘18 performance supported by durable storage rental revenue and margin expansion • Revenue up 11% and Adjusted EBITDA up 15%, both on a constant dollar basis; AFFO up 5.8% • 130 bps expansion in Adjusted EBITDA margin • EvoSwitch acquisition adds Amst
Slide 4: Continued Execution of Strategic Plan
Continued Execution of Strategic Plan 4 Driving Growth and Margins in Developed Markets • Achieved 2.1%(1) YTD internal storage revenue growth in 1H despite ~1% net internal volume decrease, consistent with expectations • Continuing to manage Developed Markets to maximize yield • Strong internal ser
Slide 5: Maximizing Yield from Storage
Maximizing Yield from Storage 5 (1) (1) Annualized Q2 Storage NOI ($M) Annualized Q2 Storage NOI / Avg Sq Ft ($M) $2,160 $25 $24.35 $1,997 $226 $90 $24 $23.54 $23.87 $1,773 $23.21 $72 $1,906 $1,934 $23 $23.25 $22.76 $1,701 Physical Storage NOI CAGR: 1.4% Total NOI CAGR: 3.4% $22 2016 2017 2018 2016
Slide 6: On Track for Accelerated EBITDA Growth
On Track for Accelerated EBITDA 6 Growth 1H ’18 Revenue Mix 2020 Revenue Mix 82% 18% 70% 30% Developed Portfolio Growth Portfolio Developed Portfolio Growth Portfolio North America Emerging Markets, Data North America Emerging Markets, Data Center and Western Europe Center and Adj. Businesses And We
Slide 7: 2020 Plan: Profitable, Sustainable Growth Worldwide
7 2020 Plan(1): Profitable, Sustainable Growth Worldwide Revenue ($ in MM) AFFO Growth(2) ($ in MM) $1,000 - $752 $1,070 $4,600 – $4,750 2017 Actual 2020E $3,846 Projected Minimum Dividend per Share(3) 2017 Actual 2020E Adjusted EBITDA ($ in MM) $2.35 $2.54 2018E 2020E $1,680 – $1,760 $1,260 Lease A
Slide 8: Solid Worldwide Financial Performance (Q2)
8 Solid Worldwide Financial Performance Growth $ and shares in mm Q2-17 Q2-18 R$ C$ Internal Growth Revenue $950 $1,061 11.7% 10.8% 4.1% / 4.6% excl. term fee(1) Storage $590 $655 11.0% 10.1% 1.9% / 2.7% excl. term fee(1) Service $360 $405 12.7% 11.8% 7.6% Adjusted Gross Profit(2) $541 $611 13.1% Ad
Slide 9: Solid Worldwide Financial Performance (YTD)
9 Solid Worldwide Financial Performance Growth $ and shares in mm YTD-17 YTD-18 R$ C$ Internal Growth Revenue $1,889 $2,103 11.4% 9.4% 3.3% / 3.6% excl. term fee(1) Storage $1,163 $1,307 12.4% 10.4% 2.8% / 3.2% excl. term fee(1) Service $726 $797 9.7% 7.7% 4.2% Adjusted Gross Profit(2) $1,061 $1,205
Slide 10: Strong Internal Growth in Q2 and YTD
Strong Internal Growth in Q2 and YTD 10 Q2 YTD Other Other Developed Developed (1) Total (1) Total Markets International(2) Markets International(2) Internal Revenue Growth Storage 1.3% 5.9% 2.7%(3) 2.1% 5.8% 3.2%(3) Service 7.6% 6.0% 7.6% 4.2% 3.9% 4.2% (3) (3) Total 3.8% 5.9% 4.6% 2.9% 5.1% 3.6% %
Slide 11: Solid Adjusted EBITDA Margin Performance Across Segments
Solid Adjusted EBITDA Margin 11 Performance Across Segments Adjusted EBITDA Q2 2017 Q2 2018 Change in bps YTD 2017 YTD 2018 Change in bps North America RIM 43.3% 45.4% 210 42.3% 44.1% 180 North America DM 55.6% 55.3% -30 55.2% 54.6% -60 Western Europe 30.0% 34.1% 410 29.2% 33.1% 390 Other Internatio
Slide 12: Competitive Capital Structure
Competitive Capital Structure 12 Net Leverage Across REIT Sectors IRM vs. REIT Composite Source: J.P. Morgan REIT Weekly U.S. Real Estate report July 23, 2018 and company reports, using simple averages of leverage across composite
Slide 13: Cash Available for Dividends and Discretionary Investments
Cash Available for Dividends and 13 Discretionary Investments in $MM $ in MM 2018E $335 Adjusted EBITDA $ 1,435 $ 1,485 Credit Suisse and Non-cash stock compensation / EvoSwitch Data 45 45 $335 other (including non-cash permanent withdrawal fees) Center Acquisitions Adjusted EBITDA and non-cash expe
Slide 14: Key Takeaways
14 Key Takeaways Quarter punctuated by strong total revenue growth and 3.2% 1H internal storage rental revenue growth Driving continued improvement in Adjusted EBITDA margins Continuing to execute against strategic plan to shift revenue mix to faster growing businesses On track with deleveraging and
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Slide 16: Storage Revenues Continue to Drive Growth – by Product
Storage Revenues Continue to Drive 16 Growth – by Product Q2’18 0.3% Q2’18 1.5% Service Revenue 4.2% Storage Revenue 38% of total revenues 4.4% 62% of total revenues 30% gross profit margin 75% gross profit margin 18.4% 45.9% 20% 10.1% 80% of adjusted of adjusted 0.9% gross profit 8.9% 4.9% gross pr
Slide 17: Developed and Other International RM Volume
Developed and Other International 17 RM Volume 86.9% 17.1% Developed Markets Other International 16.5% 16.0% 16.3% 75.1% 2.2% 15.6% 15.7% 1.8% 0.5% 0.3% 80.4% 2.4% 2.2% 2.1% 0.3% 0.3% -0.4% -0.9% 2.1% 0.1% 0.1% 67.5% 2.0% 2.0% 61.7% 1.7% 1.6% 5.3% 5.2% 5.2% 54.6% 4.4% 4.1% 4.0% 3.8% 3.8% 9.0% 5.9% 5