Iron Mountain Incorporated (delaware) · NYSE:IRM
Iron Mountain Incorporated (delaware) — Iron Mountain — Q3 2018 Earnings Presentation
17 slides from Iron Mountain Incorporated (delaware)'s earnings presentation, Oct 25, 2018
Slide 1: Q3 2018 Quarterly Results Conference Call
Q3 2018 Quarterly Results Conference Call October 25, 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 Actof 1995 and other securities laws and is subject to the safe- harbor created by such Act. Forward-looking sta
Slide 3: Strong Q3 & YTD Financial Performance
3 Strong Q3 & YTD Financial Performance Strong Q3 financial performance supported by internal storage rental revenue and margin expansion • Revenue up 12% and Adjusted EBITDA up 15%, both on a constant dollar basis; AFFO up 9% • 80 bps expansion in Adjusted EBITDA margin to 34.3% • Declared 4% divid
Slide 4: Maximizing Yield from Storage
Maximizing Yield from Storage 4 (1) (1) Annualized Q3 Storage NOI ($M) Annualized Q3 Storage NOI / Avg Sq Ft $2,184 $25 Physical Storage NOI CAGR: 3.1% Total NOI CAGR: 5.2% $24.48 $2,015 $232 $107 $24 $23.63 $23.93 $1,898 $23.41 $84 $1,908 $1,953 $23 $1,813 $22.53 $22.11 $22 2016 2017 2018 2016 2017
Slide 5: On Track for Accelerated EBITDA Growth
On Track for Accelerated EBITDA 5 Growth Q3 ’18 YTD Revenue Mix 2020 Revenue Mix 81% 19% 70% 30% Developed Portfolio Growth Portfolio Developed Portfolio Growth Portfolio North America Emerging Markets, Data North America Emerging Markets, Data Center and Western Europe Center and Adj. Businesses An
Slide 6: 2020 Plan: Profitable, Sustainable Growth Worldwide
6 2020 Plan(1): Profitable, Sustainable Growth Worldwide Revenue ($ 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 Lease Adjusted
Slide 7: Solid Worldwide Financial Performance (Q3)
7 Solid Worldwide Financial Performance Growth $ and shares in mm Q3-17 Q3-18 R$ C$ Internal Growth Revenue $966 $1,061 9.9% 12.4% 4.1% Storage $601 $657 9.3% 11.7% 2.3% Service $365 $404 10.8% 13.6% 7.1% Adjusted Gross Profit(1) $550 $616 11.9% Adjusted Gross Profit Margin(1) 57.0% 58.0% 100 bps In
Slide 8: Solid Worldwide Financial Performance (YTD)
8 Solid Worldwide Financial Performance Growth $ and shares in mm YTD-17 YTD-18 R$ C$ Internal Growth Revenue $2,854 $3,164 10.9% 10.4% 3.6% Storage $1,764 $1,964 11.3% 10.8% 2.6% Service $1,091 $1,201 10.1% 9.6% 5.2% Adjusted Gross Profit(1) $1,611 $1,821 13.0% Adjusted Gross Profit Margin(1) 56.4%
Slide 9: Strong Internal Revenue Growth in Q3 and YTD
Strong Internal Revenue Growth in Q3 9 and YTD Q3 YTD Developed Other Developed Other Total Total Markets(1) International(2) Markets(1) International(2) Internal Revenue Growth Storage 0.7% 5.9% 2.3% 1.6% 5.8% 2.6% Service 7.1% 6.6% 7.1% 5.2% 4.8% 5.2% Total 3.2% 6.2% 4.1% 3.0% 5.5% 3.6% (1) Repres
Slide 10: Solid Adjusted EBITDA Margin Performance
Solid Adjusted EBITDA Margin 10 Performance Adjusted EBITDA Q3 2017 Q3 2018 Change in bps YTD 2017 YTD 2018 Change in bps North America RIM 43.8% 46.1% 230 42.8% 44.8% 200 North America DM 55.7% 54.9% -80 55.4% 54.7% -70 Western Europe 33.9% 31.7% -220 30.8% 32.7% 190 Other International 29.6% 30.3%
Slide 11: Competitive Capital Structure
Competitive Capital Structure 11 Net Leverage Across REIT Sectors IRM vs. REIT Composite Source: J.P. Morgan REIT Weekly U.S. Real Estate report October 22, 2018 and company reports, using simple averages of leverage across composite
Slide 12: Cash Available for Dividends and Discretionary Investments
Cash Available for Dividends and 12 Discretionary Investments in $MM $ in MM 2018E $335 Adjusted EBITDA $1,445 $1,475 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 expens
Slide 13: Key Takeaways
13 Key Takeaways Quarter punctuated by strong YTD internal total revenue growth of 3.6% Driving continued improvement in Adjusted EBITDA margins – up 80 bps year over year Accelerating expansion in Data Center supports 2020 plan and creates long-term growth platform Shift in revenue mix already cont
Slide 14: fas
fas 22, S oy Si, ror <x
Slide 15: Storage and Service by Geography
15 Storage and Service by Geography 7.1% Service 38% of Revenue 30.9% 50.1% 11.9% Storage 62% of Revenue Developed Markets Other International
Slide 16: Revenue by Product Line
16 Revenue by Product Line 1.7% 4.0% 4.1% Q3’18 0.3% Q3’18 Service Revenue Storage Revenue 38% of total revenues 62% of total revenues 31% gross profit margin 18.0% 75% gross profit margin 45.4% 20% 10.1% 80% of adjusted of adjusted gross profit 1.5% gross profit 8.7% 5.7% 0.5% Adjacent Business Dig
Slide 17: Developed and Other International RM Volume
Developed and Other International 17 RM Volume 75.1% 16.5% 16.0% Developed Markets Other International 2.2% 15.6% 15.7% 1.8% 67.5% 0.5% 0.3% 2.4% -0.4% 2.1% 0.3% 0.3% -0.9% -1.2% 61.7% 2.1% 0.1% 0.1% 2.0% 2.0% 0.1% 1.7% 1.6% 1.5% 54.6% 9.0% 9.0% 5.2% 5.2% 5.9% 4.4% 4.1% 4.0% 3.8% 3.8% 3.7% 5.4% 6.0%