Iron Mountain Incorporated (delaware) · NYSE:IRM
Iron Mountain Incorporated (delaware) — Iron Mountain — Q4 2017 Earnings Presentation
49 slides from Iron Mountain Incorporated (delaware)'s earnings presentation, Feb 16, 2018
Slide 1: Supplemental Financial Information Fourth Quarter 2017
www.ironmountain.com Supplemental Financial Information Fourth Quarter 2017 Unaudited
Slide 2: Safe Harbor Statement
www.ironmountain.com Selected metric definitions are available in the Appendix Safe Harbor Statement 2 Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigati
Slide 3: Table of Contents
www.ironmountain.com Selected metric definitions are available in the Appendix All figures except per share and facility counts in 000s unless noted All figures in reported dollars unless noted Figures may not foot due to rounding Table of Contents 3 Investor Relations Contacts: Faten Freiha, 617-53
Slide 4: Company Profile
www.ironmountain.com Selected metric definitions are available in the Appendix Product Company Profile Iron Mountain is a global leader in enterprise storage with a high-return, real estate-based business model, yielding annualized revenue of approximately $4.0 billion. The company provides storage
Slide 5: Financial Highlights
www.ironmountain.com Selected metric definitions are available in the Appendix Financial Highlights 5 (1) Please see slide 21 for Storage Net Operating Income reconciliation. (2) Q4 2016 AFFO has been revised to reflect the new AFFO definition introduced in the Q4 2016 Supplemental Financial Informa
Slide 6: 2017 Performance vs. Guidance
www.ironmountain.com Selected metric definitions are available in the Appendix 2017 Performance vs. Guidance 6 (1) Iron Mountain does not provide a reconciliation of non-GAAP measures that it discusses as part of its annual guidance or long term outlook because certain significant information requir
Slide 7: 2018 Guidance Summary
www.ironmountain.com Selected metric definitions are available in the Appendix 2018 Guidance Summary(1) 7 (1) Iron Mountain does not provide a reconciliation of non-GAAP measures that it discusses as part of its annual guidance or long term outlook because certain significant information required fo
Slide 8: Year-over-Year Revenue Growth
www.ironmountain.com Selected metric definitions are available in the Appendix Year-over-Year Revenue Growth 8 Service Storage Rental 18.2% 81.8% Service Storage Rental Full Year 2017 Revenue Full Year 2017 Gross Profit 61.8% 38.2% Revenue Growth Rates Reported 8.4% 2.6% 6.1% 11.0% 7.3% 9.5% Less: I
Slide 9: Records Management Volume Growth
www.ironmountain.com Selected metric definitions are available in the Appendix Records Management Volume Growth 9 ‐4.8% ‐4.8% ‐4.9% ‐5.0% ‐5.0% ‐4.1% ‐4.0% ‐3.9% ‐2.0% ‐2.1% ‐2.2% ‐2.3% ‐2.4% ‐2.1% ‐2.1% ‐2.1% 5.8% 6.0% 6.2% 6.3% 6.4% 5.2% 5.0% 4.9% 2.6% 2.6% 2.7% 2.8% 3.0% 2.4% 2.3% 2.2% 0.1% 1.6%
Slide 10: Records Management Volume Growth
www.ironmountain.com Selected metric definitions are available in the Appendix Records Management Volume Growth 10 3.6% 49.3% ‐2.7% ‐4.3% 5.8% 46.1% Q2‐16 37.8% ‐2.6% ‐3.9% 5.5% 4.8% 34.1% Q1‐16 3.0% ‐2.3% ‐4.1% 5.0% 4.4% Q4‐17 1.7% 4.4% ‐4.0% 4.6% 3.9% Q3‐17 2.0% ‐2.3% 45.7% ‐2.7% Q3‐16 ‐4.4% 4.7%
Slide 11: Quarterly Operating Performance
www.ironmountain.com Selected metric definitions are available in the Appendix Quarterly Operating Performance 11 S e c t i o n V I I I S e c t i o n I X S e c t i o n V I I S e c t i o n V I S e c t i o n V S e c t i o n I V S e c t i o n I I I S e c t i o n X S e c t i o n I I S e c t i o n I S e
Slide 12: Full Year Operating Performance
www.ironmountain.com Selected metric definitions are available in the Appendix Full Year Operating Performance 12 S e c t i o n V I I I S e c t i o n I X S e c t i o n V I I S e c t i o n V I S e c t i o n V S e c t i o n I V S e c t i o n I I I S e c t i o n X S e c t i o n I I S e c t i o n I S e
Slide 13: Consolidated Balance Sheets
www.ironmountain.com Selected metric definitions are available in the Appendix Consolidated Balance Sheets 13 (1) Includes redeemable noncontrolling interests of $55mm and $91mm as of December 31, 2016 and December 31, 2017, respectively. S e c t i o n V I I I S e c t i o n I X S e c t i o n V I I S
Slide 14: Consolidated Statements of Operations
www.ironmountain.com Selected metric definitions are available in the Appendix Consolidated Statements of Operations 14 (1) Includes $7.2mm and $4.5mm of Recall Costs in Q4 2016 and Q4 2017, respectively, and $12.0mm and $20.5mm of Recall Costs in full year 2016 and full year 2017, respectively. (2)
Slide 15: Reconciliation of Income from Continuing Operations to Adjusted EBITDA
www.ironmountain.com Selected metric definitions are available in the Appendix 15 Reconciliation of Income (Loss) from Continuing Operations to Adjusted EBITDA (1) Net of tax provision of $0.1mm and $(0.6)mm in Q4 2016 and Q4 2017, and includes $0.1mm and $0.0mm in full year 2016 and full year 2017,
Slide 16: Reconciliation of Reported EPS to Adjusted EPS
www.ironmountain.com Selected metric definitions are available in the Appendix 16 Reconciliation of Reported Earnings per Share to Adjusted Earnings per Share (1) The difference between our effective tax rate and our structural tax rate (or adjusted effective tax rate) for the three and twelve month
Slide 17: Reconciliation of Net Income to FFO & AFFO
www.ironmountain.com Selected metric definitions are available in the Appendix 17 Reconciliation of Net Income to FFO & AFFO (1) Includes realized and unrealized FX (gains) losses. (2) Calculated as actual cash taxes less current tax provision and other one-time cash tax items, to reflect actual cas
Slide 18: Reconciliation of Cash Flow from Operations to AFFO
www.ironmountain.com Selected metric definitions are available in the Appendix 18 Reconciliation of Cash Flow from Operations to AFFO (1) Calculated as actual cash taxes less current tax provision and other one-time cash tax items, to reflect actual cash tax (impact)/benefit to AFFO. (2) Working cap
Slide 19: Quarterly and Full Year Revenue Growth Bridge
www.ironmountain.com Selected metric definitions are available in the Appendix 19 Quarterly and Full Year Revenue Growth Bridge ($mm) Fourth Quarter 6% Reported R$ 4% C$ $39 $18 $991 Q4 2016 Revenue at Q4 2017 FX Rates $934 Q4 2016 Revenue ‐ Reported $ Revenue Growth Excluding FX Benefit $952 FX Imp
Slide 20: Quarterly and Full Year Adjusted EBITDA Bridge
www.ironmountain.com Selected metric definitions are available in the Appendix 20 Quarterly and Full Year Adjusted EBITDA Bridge ($mm) 8% C$ $24 $6 Q4 2017 Adjusted EBITDA ‐ Reported $ Growth Excluding FX Benefit $327 Q4 2016 Adjusted EBITDA at Q4 2017 FX Rates $303 FX Impact at Q4 2017 FX Rates Q4
Slide 21: Storage and Service Reconciliation
www.ironmountain.com Selected metric definitions are available in the Appendix 21 Storage and Service Reconciliation S e c t i o n V I I I S e c t i o n I X S e c t i o n V I I S e c t i o n V I S e c t i o n V S e c t i o n I V S e c t i o n I I I S e c t i o n X S e c t i o n I I S e c t i o n I S
Slide 22: Storage Net Operating Income (NOI)
www.ironmountain.com Selected metric definitions are available in the Appendix 22 Storage Net Operating Income (NOI) (1) Includes Fine Art Storage, Consumer Storage, Technology Escrow Services, Digital Storage, Fulfillment Services, Information Governance and Digital Solutions, Entertainment Service
Slide 23: Service Business Detail
www.ironmountain.com Selected metric definitions are available in the Appendix Service Business Detail 23 (1) Includes Fine Art Storage, Consumer Storage, Technology Escrow Services, Consulting, Fulfillment Services, Information Governance and Digital Solutions, Entertainment Services and other anci
Slide 24: Gross Book Value of Real Estate Assets
www.ironmountain.com Selected metric definitions are available in the Appendix Gross Book Value of Real Estate Assets 24 (1) Includes warehouse equipment, vehicles, furniture, fixtures, computer hardware and software. Real Estate Assets Storage Operations Land $305,794 Buildings & Building Improveme
Slide 25: Lease Obligations
www.ironmountain.com Selected metric definitions are available in the Appendix Lease Obligations(1) (1) Includes capital and operating lease obligations. (2) Reflects month to month leases and predominantly short term occupancies. Weighted Average Remaining Lease Obligations (exercise of all extensi
Slide 26: Global Real Estate Portfolio
www.ironmountain.com Selected metric definitions are available in the Appendix Global Real Estate Portfolio(1) 26 (1) Includes real estate held in joint ventures. (2) Includes South Africa and United Arab Emirates. (3) Reflects adjustments to previous periods due to refinements to real estate basis.
Slide 27: Revenue and Storage NOI per Racked Square Foot
www.ironmountain.com Selected metric definitions are available in the Appendix Revenue from Rental Activities and Storage NOI per Racked Square Foot 27 (1) Includes South Africa and United Arab Emirates. (2) Includes loading docks, unracked space, office space, common areas, as well as space in serv
Slide 28: Portfolio Utilization
www.ironmountain.com Selected metric definitions are available in the Appendix Portfolio Utilization Records Management Storage Portfolio (CuFt MM) As of 12/31/2017 5466 131 6467 133 700 100 0 600 500 Asia -0.4% 687 Total IRM +2.1% +1.4% +1.7% +18.8% 423 North America 425 Latin America 676 Europe 60
Slide 29: Customer Data
www.ironmountain.com Selected metric definitions are available in the Appendix Customer Data 29 (1) No single vertical within ‘Other’ comprises greater than 1% of North America Revenue. (2) Customer acquisition costs include the acquisition of customer relationships and customer inducements. Other45
Slide 30: Data Center Customer and Portfolio Metrics
www.ironmountain.com Selected metric definitions are available in the Appendix Data Center Customer and Portfolio Metrics(1) 30 S e c t i o n V I I I S e c t i o n I X S e c t i o n V I I S e c t i o n V I S e c t i o n V S e c t i o n I V S e c t i o n I I I S e c t i o n X S e c t i o n I I S e c
Slide 31: Debt Schedule
www.ironmountain.com Selected metric definitions are available in the Appendix Debt Schedule 31 $259 $825 $1,000 Thereafter20272026 $300 2025 $899 2024 $1,000 2023 $799 2022 $898 2021 $500 2020 18% 82% Fixed vs. Floating Rate Debt at 12/31/17(4) Debt Maturity Schedule ($MM) Floating Rate Debt Fixed
Slide 32: Capitalization
www.ironmountain.com Selected metric definitions are available in the Appendix Capitalization 32 (1) Total debt net of cash is calculated as current portion of long-term debt of $146mm plus long-term debt net of current portion of $6,897mm plus $86mm of deferred financing costs less cash and cash eq
Slide 33: Capital Expenditures and Investments
www.ironmountain.com Selected metric definitions are available in the Appendix Capital Expenditures and Investments 33 (1) Includes Recall Integration CapEx of $10.0mm and $7.5mm in Q4 2016 and Q4 2017, respectively, and $18.3mm and $31.4mm in full year 2016 and full year 2017, respectively. (2) Inc
Slide 34: Business and Customer Acquisitions
www.ironmountain.com Selected metric definitions are available in the Appendix Business and Customer Acquisitions 34 (1) Includes Fortrust non-cash consideration of $83.0mm in full year 2017. (2) Excludes accrual adjustments and customer inducements. S e c t i o n V I I I S e c t i o n I X S e c t i
Slide 35: Real Estate Investments
www.ironmountain.com Selected metric definitions are available in the Appendix Real Estate Investments(1) 35 (1) Based on 2017 C$ Budgeted FX Rates. (2) Racking Installations exclude consolidation spend in Total Expected Investment, Investment in Current Period and Cumulative Investment to Date of $
Slide 36: Acquisitions and Disposals
www.ironmountain.com Selected metric definitions are available in the Appendix Acquisitions and Disposals(1) 36 (1) Based on 2017 C$ Budgeted FX Rates. (2) Includes South Africa and United Arab Emirates. Purchase Expected Price IRRs 2017 Building Acquisitions North America $33,710 384 9% Europe(2) -
Slide 37: Components of Value
www.ironmountain.com Selected metric definitions are available in the Appendix Components Q4 2017 Annualized NOI North America Records Management $998,248 Data Protection 234,801 Other 56,146 Europe(1) 389,410 Latin America 170,412 Asia 156,158 Global Data Center 20,511 Total Portfolio Storage NOI 2
Slide 38: 2017 Quarterly Results Based on New Reporting Segments
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 38 S e c t i o n V I I I S e c t i o n I X S e c t i o n V I I S e c t i o n V I S e c t i o n V S e c t i o n I V S e c t i o n I I I S e c t i o n X S e c t i o n I I S e c t i o n I S e c t i o n X I 2017 Quar
Slide 39: Non-GAAP Measures and Definitions
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 39 Non-GAAP Measures and Definitions Non-GAAP measures are supplemental metrics designed to enhance our disclosure and to provide additional information that we believe to be important for investors to consider w
Slide 40: Non-GAAP Measures and Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix Non-GAAP Measures and Definitions (continued) Adjusted EBITDA and Adjusted EBITDA Margin Adjusted EBITDA is defined as income (loss) from continuing operations before interest expense, net, provision (benefit) fo
Slide 41: Non-GAAP Measures and Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix Non-GAAP Measures and Definitions (continued) FFO (Normalized) per share FFO (Normalized) divided by weighted average fully-diluted shares outstanding. Service Adjusted EBITDA Service Adjusted EBITDA is calculate
Slide 42: Other Definitions
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix Other Definitions Average Stabilization Period – For racking projects, the stabilization period is 8 to 12 months. For new buildings it is 24 to 36 months, assuming phased racking installations over three years.
Slide 43: Other Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix Other Definitions (continued) Other International Business – Our Other International Business segment provides records and information management services throughout the remaining European countries in which we o
Slide 44: Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 44 Definitions (continued) Capacity Measures Building Capacity – The maximum number of cubic feet of records or standard DPUs that can be stored in a given facility. Building Capacity Utilization – The number of
Slide 45: Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 45 Definitions (continued) Capital Expenditures and Investments (continued) Non-Real Estate: Investment – Non-real estate assets that either (i) support the growth of our business, and/or increase our profitabili
Slide 46: Other Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 46 Other Definitions (continued) Capital Expenditures and Investments (continued) Components of Overhead Allocated Overhead – Includes overhead expenses directly associated with storage and service business opera
Slide 47: Other Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 47 Other Definitions (continued) Data Center Business Definitions (continued) TCV – “Total Contract Value” represents total revenue contracted for active contracts through the contract term, not including renewal
Slide 48: Other Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 48 Other Definitions (continued) Non-Cash Rent Expense – Calculated as rent expense less cash paid for rent. Permanent Withdrawal Rate – Calculated by dividing the total number of cubic feet of records removed fr
Slide 49: Other Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 49 Other Definitions (continued) Tangible Assets – Includes PP&E, cash and cash equivalents, restricted cash, accounts receivable, deferred income taxes, and prepaid expenses. Tax Rates Effective Tax Rate – GAAP