Iron Mountain Incorporated (delaware) · NYSE:IRM
Iron Mountain Incorporated (delaware) — Iron Mountain — Q1 2019 Earnings Presentation
17 slides from Iron Mountain Incorporated (delaware)'s earnings presentation, Apr 25, 2019
Slide 1: Q1 2019 Financial Results
Q1 2019 Financial Results April 25, 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: Q1 Performance
Q1 Performance 3 Continued progress against our strategic plan • Solid global volume performance from our traditional records business • Progress in increasing our exposure to new storage areas • Continued expansion of our data center business Revenue performance ahead of expectations • Total organi
Slide 4: Mix Shift Accelerates Adjusted EBITDA Growth
4 Mix Shift Accelerates Adjusted EBITDA Growth 2019 Est. Revenue Mix 2020 Revenue Mix Target 74% 26% 70% 30% Developed Portfolio Growth Portfolio Developed Portfolio Growth Portfolio North America Emerging Markets, Data North America Emerging Markets, Data and Western Europe Center and Adj. Business
Slide 5: Robust Global Portfolio of Physical Storage
5 Robust Global Portfolio of Physical Storage Note: Business acquisitions volume acquired during the quarter included in Total Volume
Slide 6: Data Center Momentum Continues into Q1
6 Data Center Momentum Continues into Q1 • 4MW of new and expansion leases signed in the quarter Rendering of Frankfurt Greenfield Development • 1.4% churn in the quarter after adjusting for Q1 Phoenix move-outs (5.1% including) • 21MW Frankfurt data land purchase closed; seeking JV partner • IRM’s
Slide 7: Q1 Financial Results
Q1 Financial Results 7 Growth $ and shares in mm Q1-19 Q1-18 Y/Y % Constant Currency Y/Y% Organic Growth Revenue $1,054 $1,042 1.1% 4.5% 1.9% Storage $663 $651 1.8% 5.1% 2.0% Service $391 $391 -0.1% 3.5% 1.8% Adjusted Gross Profit(1) $593 $594 -0.1% Adjusted Gross Profit Margin 56.3% 57.0% -70bps Ad
Slide 8: Stable Storage Trends Globally
8 Stable Storage Trends Globally Q1 Other Developed Total Markets(1) International(2) Organic Revenue Growth Storage 1.1% 4.6% 2.0% Service 1.8% (0.6%) 1.8% Total 1.4% 2.7% 1.9% (1) Represents North America Records and Information Management, North America Data Management and Western Europe reportin
Slide 9: Adjusted EBITDA Margin Reflects Higher Costs
9 Adjusted EBITDA Margin Reflects Higher Costs Adjusted EBITDA Q1 2019 Q1 2018 Change in bps Margin North America RIM 42.4% 42.8% -40 North America DM 52.3% 53.9% -160 Western Europe 30.5% 32.8% -230 Other International 28.9% 28.8% 10 Global Data Center 42.3% 44.6% -230 Corporate and Other(1) (6.9%)
Slide 10: Balance Sheet Remains Well Positioned
10 Balance Sheet Remains Well Positioned Balance Sheet Highlights as of 3/31/19 Net Lease Adjusted Leverage 5.8x 5.5x • 69% Fixed Rate Debt • 4.9% weighted average interest rate • 5.8 years weight average maturity • No significant maturities until 2023 J.P. Morgan Iron Mountain REIT Composite Source
Slide 11: Key Takeaways
11 Key Takeaways Q1 revenue growth slightly above internal expectations, driven by revenue management and increased volumes Global volumes grew 30bps reflecting lower destructions and higher incoming volume 4MW of new and expansion leasing in Q1 for Data Center business; on track for full year targe
Slide 12: Appendix
Appendix
Slide 13: Storage and Service Mix by Geography
13 Storage and Service Mix by Geography As of 3/31/19 5.2% Service 37% of Revenue 31.9% 52.8% Storage 10.2% 63% of Revenue Developed Markets Other International
Slide 14: Revenue Mix by Product Line
14 Revenue Mix by Product Line As of 3/31/19 4.2% 1.9% 4.0% 0.2% Q1’19 Q1’19 16.6% Service Revenue Storage Revenue 37% of total revenues 63% of total revenues 27% gross profit margin 73% gross profit margin 46.1% 10.3% 18% of 82% of adjusted gross 1.8% adjusted gross profit profit 8.7% 5.7% 0.5% Adj
Slide 15: Global RM Organic Volume
15 Global RM Organic Volume up 30 Bps Developed Markets Other International 2.2% 9.0% 9.0% 7.3% 1.8% 7.0% 0.5% 0.3% -0.4% -0.9% -1.0% -0.5% 6.0% 5.2% 5.4% 0.3% -1.2% 5.8% 0.3% 0.1% 3.0% 4.3% 3.8% 4.0% 0.1% 0.1% 1.8% 2.1% 0.1% 0.1% 1.8% 2.0% 2.0% 2.2% 1.7% 1.6% 1.7% 1.5% 3.3% 3.0% 2.6% 2.4% 2.4% 2.5%
Slide 16: 2019 Guidance Maintained
16 2019 Guidance Maintained 2019 Guidance Y/Y Change Constant Currency $ in MM 2019 Guidance (midpoint) (vs. midpoint) Y/Y Change (1) Revenue $4,200 - $4,400 $4,300 1.8% 3.3% Adj. EBITDA $1,420 - $1,530 $1,475 2.7% 4.1% EPS $1.08 - $1.18 $1.13 2.7% 3.7% AFFO $870 - $930 $900 3.0% 4.5% • Expected org
Slide 17: Estimated Cash Available for Dividends and Discretionary Investments in 2019
Estimated Cash Available for Dividends and 17 Discretionary Investments in 2019 in $MM $ in MM 2019E $335 Adjusted EBITDA $1,420 $1,530 Incremental Data Center Non-cash stock compensation / $250 Development 54 54 Capital Needed other (including non-cash permanent withdrawal fees) for $380 Capex Adju