Iron Mountain Incorporated (delaware) · NYSE:IRM
Iron Mountain Incorporated (delaware) — Iron Mountain — Q2 2017 Earnings Presentation
13 slides from Iron Mountain Incorporated (delaware)'s earnings presentation, Jul 28, 2017
Slide 1: Q2 2017 Financial Results
Q2 2017 Financial Results July 28, 2017
Slide 2: Safe Harbor Language and Reconciliation of Non-GAAP Measures
Safe Harbor Language and Reconciliation of Non-GAAP Measures 2 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: Q2 on Track with Short and Long-Term Financial Objectives
Q2 on Track with Short and Long-Term Financial Objectives 3 Q2 key financial results in line with expectations • Strong Adjusted EBITDA and AFFO growth supported by durability of storage rental business, achievement of Recall acquisition synergies and Transformation initiative; additional benefit fr
Slide 4: Consistent Inbound/Outbound Volume
4 (35.0) (35.6) (36.3) (37.9) (39.2) (40.3) (40.9) 43.0 44.0 45.4 47.4 48.2 50.8 49.8 (33.9) 42.1 Q2 ’17 8.9 Q1 ’17 10.5 Q4 ’16 9.0 Q3 ’16 9.5 Q2 ’16 9.1 Q1 ’16 7.4 Q4 ’15 8.1 Q3 ’15 8.2 Consistent Inbound/Outbound Volume CuFt in mm Net Volume before Acquisitions/Dispositions
Slide 5: Strategic Plan Highlights for Q2'17
5 Strategic Plan Highlights for Q2’17 Developed Markets – North America and Western Europe • Achieved 3.4% internal storage rental growth • 1.8 million CuFt of net volume(1) before business acquisitions/Recall dispositions • Enhanced revenue management efforts yielding higher margin Emerging Markets
Slide 6: Data Center Acquisition Supports Growth and Solid Returns
Data Center Acquisition Supports Growth and Solid Returns • Signed agreement to acquire Denver-based data center business for ~$128 million • New capacity significantly expands existing business • FORTRUST: • Top 10 US market; 30%+ local share, 250 customers and 15-year operating history • Tier 3 Go
Slide 7: Solid Worldwide Financial Performance
Solid Worldwide Financial Performance 7 $ and shares in mm Q2-16 Q2-17 R$ C$ Internal Growth Revenue $884 $950 7.5% 8.4% 2.5% Storage $539 $590 9.6% 10.6% 4.8% / 4.0% (excl. term fee) Service $345 $360 4.2% 5.1% (1.1)% Adjusted Gross Profit(1) $488 $541 10.7% Gross Profit Margin(1) 55.3% 56.9% 160 b
Slide 8: Steady Internal Growth in Q2
Steady Internal Growth in Q2 NA Records & Information Management NA Data Management Western Europe Other International Corporate & Other Total Internal Growth Storage 3.7% 2.9% 2.5% 7.1% 41.3% 4.8% Service 1.3% (7.4)% (1.7)% (4.7)% (5.4)% (1.1)% Total 2.7% (0.5)% 0.8% 2.4% 28.5% 2.5% % of Revenue by
Slide 9: Storage Revenues Continue to Drive Growth – by Product
Storage Revenues Continue to Drive Growth – by Product 9 10.2% 0.5% 49.8% 1.6% 18.3% 4.4% 4.9% 9.8% 0.4% Records Management Digital Solutions Data Management Shredding Adjacent Businesses Storage is 83% of Adjusted Gross Profit Q2’17 Service Revenue 38% of total revenues 26% gross profit margin Q2’1
Slide 10: No Changes to Core 2017 Guidance
No Changes to Core 2017 Guidance 10 • Business fundamentals remain strong; expected internal storage rental revenue growth of 2.5% - 3.0% • Plan to invest $20 mm in operating expenditures related to back-office centralization and innovation initiatives • Expect structural tax rate near 20% • Mainten
Slide 11: Increasing Cash Available for Dividends and Discretionary Investments
Increasing Cash Available for Dividends and Discretionary Investments 11 (1) Customer inducements and acquisitions of customer relationships are not deducted from AFFO as they represent discretionary growth investment (2) Includes core growth racking and excludes Northern Virginia Data Center develo
Slide 12: 2017 Estimated AFFO Supports Growing Dividend; Discretionary Investment Funded with Debt/Equity
2017 Estimated AFFO Supports Growing Dividend; Discretionary Investment Funded with Debt/Equity $120 $35 Cash Available for Discretionary Investment Customer Relationships and Inducements Anticipated Dividends $585 Adjusted Funds From Operations ~$740 $185 $150 $120 $270 ~$75 ~$130 Growth Real Estat
Slide 13: Q2 on Track with Short and Long-Term Financial Objectives
Q2 on Track with Short and Long-Term Financial Objectives 13 Q2 key financial results in line with expectations Expect delivery of continued solid performance and progress against strategic plan Continued strong, durable business fundamentals