Iron Mountain Incorporated (delaware) · NYSE:IRM
Iron Mountain Incorporated (delaware) — Iron Mountain — Q2 2019 Earnings Presentation
15 slides from Iron Mountain Incorporated (delaware)'s earnings presentation, Aug 1, 2019
Slide 1: Q2 2019 Earnings Call
Q2 2019 Earnings Call August 1, 2019
Slide 2: Safe Harbor Language and Reconciliation of Non-GAAP Measures
Safe Harbor Language and Reconciliation of 2 Non-GAAP Measures Forward Looking Statements Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1
Slide 3: Q2 Performance
Q2 Performance 3 Improved operational execution • Adjusted EBITDA margin expanded 210 basis points sequentially to 32.9% • Q1 cost issues fully corrected; driving improved efficiencies across organization • Remain focused on successfully executing in 2H, despite external headwinds Healthy revenue gr
Slide 4: Durable Global Storage Portfolio
Durable Global Storage Portfolio 4 710,000 705,000 700,000 695,000 690,000 685,000 680,000 Cubic Cubic (000s) Feet 675,000 670,000 665,000 660,000 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Records Management Data Protection Adjacent Businesses Consumer and other Busines
Slide 5: Data Center Wins & Pipeline Show Encouraging Progress
Data Center Wins & Pipeline Show 5 Encouraging Progress • 3MW of new and expansion leases signed in Q2; 7MW YTD through Q2 AZP-2 Grand Opening – August 15th • ~ 40% of new and expansion leasing from new logos • Continued strong cross-sell momentum: ~ 40% of Q2 pipeline generated by core RIM sales te
Slide 6: Continued Global Storage Growth
Continued Global Storage Growth 6 Q2 2019 Developed Other Total Markets(1) International(2) Organic Revenue Growth Storage 1.3% 3.7% 2.4% Service -2.1% -2.0% -2.0% Total -0.1% 1.6% 0.7% (1) Represents North America Records and Information Management, North America Data Management and Western Europe
Slide 7: Q2 Financial Performance
Q2 Financial Performance 7 Constant Organic In millions, except per-share data Q2-19 Q2-18 Y/Y % Currency Y/Y% Growth Revenue $1,067 $1,061 0.6% 3.1% 0.7% Storage $669 $655 2.1% 4.6% 2.4% Service $398 $405 -1.9% 0.7% -2.0% Adjusted Gross Profit(1) $603 $611 -1.3% Adjusted Gross Profit Margin 56.5% 5
Slide 8: Segment Adjusted EBITDA Margin
Segment Adjusted EBITDA Margin 8 Adjusted EBITDA Q2 2019 Q2 2018 Change in bps Margin North America RIM 45.5% 45.4% 10 North America DM 55.0% 55.3% -30 Western Europe 34.7% 34.9% -20 Other International 29.4% 29.1% 30 Global Data Center 44.4% 45.4% -100 Corporate and Other(1) (7.3%) (6.1%) -120 Tota
Slide 9: Balance Sheet Remains Well Positioned
Balance Sheet Remains Well Positioned 9 Balance Sheet Highlights as of 6/30/19 Net Lease Adjusted Leverage 5.8x • 69% Fixed Rate Debt 5.6x • 4.8% weighted average interest rate • 5.6 years weighted average maturity • No significant maturities until 2023 “Iron Mountain leverage and coverage metrics a
Slide 10: Healthy Revenue Performance & Consistent Business Model
Healthy Revenue Performance & Consistent 10 Business Model Durable storage revenue growth Q1 cost issues fully corrected Adjusted EBITDA margins expanded 210 bps Q/Q Expect Adjusted EBITDA to ramp in 2H Strong Data Center leasing
Slide 11: Durable, Long-Term Business Model
Durable, Long-Term Business Model 11 Deep and long-lasting Durable Records Management customer relationships with business drives 950 of Fortune 1000 cash generation Drive significant cross-selling synergies across businesses Consistently deliver strong organic cash flow; fund future growth Continue
Slide 12: Appendix
Appendix
Slide 13: Global RM Organic Volume
Global RM Organic Volume up 40 Bps 13 Developed Markets Other International 0.5% 9.0% 0.3% -0.5% -0.4% 9.0% 0.3% 0.3% -0.4% -0.9% -1.0% 0.1% 0.2% 7.3% 0.1% -1.2% 0.1% 7.0% 0.1% 0.1% 6.5% 2.0% 2.0% 2.2% 6.0% 1.7% 1.7% 2.2% 5.8% 5.2% 5.4% 1.6% 1.5% 4.0% 4.3% 1.8% 3.8% 3.1% 1.8% 3.0% 2.6% 2.4% 2.4% 2.5
Slide 14: Updated 2019 Guidance
Updated 2019 Guidance 14 Previous $ in MM 2019 Guidance 2019 Guidance Revenue $4,250 - $4,325 $4,200 - $4,400 Adj. EBITDA $1,440 - $1,480 $1,420 - $1,530 Adj. EPS $1.00 - $1.10 $1.08 - $1.18 AFFO $870 - $900 $870 - $930 • Expected organic storage rental revenue growth of 2.2% - 2.8%; total organic r
Slide 15: Estimated Cash Available for Dividends and Discretionary Investments in 2019
Estimated Cash Available for Dividends and 15 Discretionary Investments in 2019 in $MM $ in millions 2019E Adjusted EBITDA $1,440 $1,480 $335 Non-cash stock compensation/other (including non-cash Incremental 55 55 $300 Data Center permanent withdrawal fees) Capital Needed for Discretionary $395 Deve