Iron Mountain Incorporated (delaware) · NYSE:IRM
Iron Mountain Incorporated (delaware) — Iron Mountain — Q3 2019 Earnings Presentation
17 slides from Iron Mountain Incorporated (delaware)'s earnings presentation, Oct 31, 2019
Slide 1: Q3 2019 Earnings Call
Q3 2019 Earnings Call October 31, 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: Q3 Performance
Q3 Performance 3 Storage rental revenue growth accelerates • Total organic Storage rental revenue growth accelerated to 3.0%, attributable to revenue management • Organic Service revenue declined 3.0%, impacted by paper prices (organic Service up 0.2% ex. paper) • Volume continues to grow well, up 4
Slide 4: Project Summit – Key Messages
Project Summit – Key Messages 4 Simplifying Global Streamlining Managerial Enhancing Customer Structure Structure for the Future Experience • Uniting RIM operations under one leader • Consolidating the number of layers and • Aligning global and regional customer- reporting levels facing resources ac
Slide 5: Project Summit – Expected Financial Impact
Project Summit – Expected Financial Impact 5 Financial Impact Annual run-rate Adjusted EBITDA benefits of $200M by end of 2022 Total Cost to Implement Approximately $240M over next two years Q4’19 Restructuring Charge ~$60M, with expected benefit delivered beginning in 2020 Program to drive signific
Slide 6: Durable Global Storage Portfolio
Durable Global Storage Portfolio 6 710,000 705,000 700,000 695,000 690,000 685,000 680,000 Cubic Cubic Feet (000s) 675,000 670,000 665,000 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Records Management Data Protection Adjacent Businesses Consumer and other Businesses Note
Slide 7: Data Center Leasing on Track
Data Center Leasing on Track 7 Singapore (SIN-1) Data Center • 8MW of new and expansion leases signed in Q3; 15MW YTD through Q3 • ~ 75% of new and expansion leasing from new logos • ~40% of enterprise pipeline generated by core RIM sales team • Clear line of sight to achieving FY2019 leasing target
Slide 8: Q3 Financial Performance
Q3 Financial Performance 8 Constant Organic In millions, except per-share data Q3-19 Q3-18 Y/Y % Currency Y/Y% Growth Revenue $1,062 $1,061 0.1% 1.7% 0.7% Storage $673 $657 2.5% 4.0% 3.0% Service $389 $404 -3.7% -2.1% -3.0% Adjusted Gross Profit(1) $613 $616 -0.5% Adjusted Gross Profit Margin 57.7%
Slide 9: Organic Revenue Growth Trends
Organic Revenue Growth Trends 9 Q3 2019 Developed Other Total Markets(1) International(2) Organic Revenue Growth Storage 2.3% 4.5% 3.0% Service / Service excl. paper impact (3.1)% / 1.3% (5.7)% (3.0)% / 0.2% Total 0.2% 0.6% 0.7% (1) Represents North America Records and Information Management, North
Slide 10: Segment Adjusted EBITDA Margin
Segment Adjusted EBITDA Margin 10 Adjusted EBITDA Q3 2019 Q3 2018 Change in bps Margin North America RIM 45.5% 46.1% -60 North America DM 56.3% 54.9% 140 Western Europe 31.8% 32.3% -50 Other International 31.4% 30.0% 140 Global Data Center 50.1% 43.1% 700 Corporate and Other(1) (5.5%) (6.4%) -90 Tot
Slide 11: Balance Sheet Remains Well Positioned
Balance Sheet Remains Well Positioned 11 Balance Sheet Highlights as of 9/30/19 Net Lease Adjusted Leverage 5.8x 5.7x • 80% Fixed Rate Debt • 4.9% weighted average interest rate • 6.0 years weighted average maturity • No significant maturities until 2023 J.P. Morgan Iron Mountain Issued $1 billion o
Slide 12: Updated 2019 Guidance
Updated 2019 Guidance 12 Previous $ in MM 2019 Guidance 2019 Guidance Revenue $4,250 - $4,280 $4,250 - $4,325 Adj. EBITDA $1,430 - $1,450 $1,440 - $1,480 Adj. EPS $1.00 - $1.05 $1.00 - $1.10 AFFO $850 - $870 $870 - $900 • Expected organic storage rental revenue growth of ~2.5%; total organic revenue
Slide 13: Expected 2020 Adjusted EBITDA with Project Summit
Expected 2020 Adjusted EBITDA with Project 13 Summit ~ 5.5% growth $30 $1,540-$1,565 ($ in millions) $ 50 ~ 4% growth $60 $1,430-$1,450 $25-$30 $1,400-$1,425 2019 Adjusted Spot Paper & 2019 Normalized Organic Adjusted Benefit of Project Benefit of Project 2020 Adjusted EBITDA Guidance FX(1) Adjusted
Slide 14: Key Takeaways
Key Takeaways 14 Solid Q3 Performance – Adjusted EBITDA grew 5% year over year excluding FX Q3 total organic Storage revenue growth accelerated to 3.0% year over year Project Summit expected to yield significant free cash flow benefits starting in 2020 Data Center leasing on track to the high end of
Slide 15: Appendix
Appendix
Slide 16: Global RM Organic Volume
Global RM Organic Volume up 40 Bps 16 Developed Markets Other International 0.3% -0.5% -0.4% -0.5% -1.0% 9.0% 9.0% 0.3% -0.4% -0.9% -1.2% 0.1% 0.2% 0.2% 0.1% 0.1% 0.1% 0.1% 7.3% 2.0% 7.0% 1.7% 2.2% 2.2% 2.1% 6.5% 1.7% 1.6% 1.5% 6.0% 5.8% 5.2% 5.4% 5.2% 4.0% 1.8% 3.8% 3.1% 1.8% 1.7% 2.6% 2.4% 4.0% 3.
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 millions 2019E Adjusted EBITDA $1,430 $1,450 $335 Non-cash stock compensation/other (including non-cash Incremental 55 Data Center permanent withdrawal fees) Capital Needed $350 for Discretionary $375 Develop