Iron Mountain Incorporated (delaware) · NYSE:IRM
Iron Mountain Incorporated (delaware) — Iron Mountain — Q3 2017 Earnings Presentation
17 slides from Iron Mountain Incorporated (delaware)'s earnings presentation, Oct 24, 2017
Slide 1: Q3 2017 Financial Results
Q3 2017 Financial Results October 25, 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: Q3-17 on Track with Financial Objectives
Q3-17 on Track with Financial Objectives 3 Q3 performance supported by storage rental durability, Recall synergies and Transformation • 8% C$ Adjusted EBITDA growth and 19% AFFO growth • 230 basis point YoY improvement in Adjusted EBITDA margins • Leverage ratio improved to 5.5x, following amendment
Slide 4: Continued Execution of Strategic Plan
4 Continued Execution of Strategic Plan Developed Markets – North America and Western Europe • Achieved 3.2% internal storage rental growth in Q3 • 1 million CuFt of net volume(1) before business acquisitions/Recall dispositions • Enhanced revenue management efforts yielding higher margin Emerging M
Slide 5: Solid Progress in Adjacent Businesses
Solid Progress in Adjacent Businesses Data Center(1) • Northern Virginia expansion on-time and on budget - completed building 1, first data hall of 3 MW 50% leased • Closed acquisition of FORTRUST in Denver, 75% of existing capacity leased • Announced acquisition of two Credit Suisse data centers in
Slide 6: Recently Launched Innovations
Recently Launched Innovations Iron Cloud • Supports hybrid data storage strategy with predictable cost, scalability and enhanced cybersecurity • Cloud Storage, Disaster Recovery and Data Archiving global market expected to grow 25% to 30%(1) Policy Center • Expands Cloud-Based Records Retention Mana
Slide 7: Solid Worldwide Financial Performance
Solid Worldwide Financial Performance 7 $ and shares in mm Q3-16 Q3-17 R$ C$ Internal Growth Revenue $943 $966 2.4% 1.4% 2.0% Storage $577 $601 4.3% 3.2% 3.5% Service $366 $365 (0.5)% (1.6)% (0.2)% Adjusted Gross Profit(1) $518 $550 6.4% Gross Profit Margin(1) 54.9% 57.0% 210 bps Income from Continu
Slide 8: Storage Continues to Drive Growth
Storage Continues to Drive Growth 8 10.3% 0.5% 49.6% 1.4%4.9% 18.5% 9.8% 0.4% 4.6% Digital Solutions Records and Information Management Shredding Adjacent Businesses Data Management Q3’17 Service Revenue 38% of total revenues 28% gross profit margin Q3’17 Storage Revenue 62% of total revenues 75% gr
Slide 9: Steady Internal Growth in Q3
Steady Internal Growth in Q3 Developed Markets(1) Other International(2) Corporate & Other Total Internal Growth Storage 3.2% 5.0% 1.5% 3.5% Service (0.1)% (0.1)% (16.0)% (0.2)% Total 1.9% 3.0% (3.1)% 2.0% % of Revenue by Segment Storage 47.8% 13.0% 1.4% 62.2% Service 29.8% 7.6% 0.4% 37.8% 9 (1) Rep
Slide 10: Recent Refinancing Activity
Recent Refinancing Activity • Leverage ratio 5.5x with most restrictive covenant at 6.5x • 71% fixed rate debt and 29% floating 10 Action Amount USD Rate Interest Savings p.a. Tenor / ExtensionPre Post Amended and extended senior credit facility $2B 2.25% 2.0% $2mm - $4mm 5 years / +3.1 years Called
Slide 11: 2017 Guidance
2017 Guidance 11 • Expected internal storage rental revenue growth of 3.0% - 3.5% • C$ and R$ expectations within the same range • Expect structural tax rate in the range of 21% to 22% • Maintenance CapEx and non-real estate investments expected to be ~$150 mm • Optimizing real estate portfolio thro
Slide 12: Key Takeaways
Key Takeaways 12 Quarter punctuated by strong total revenue growth and 3.5% internal storage revenue growth On track with integration of Recall, driving continued improvement in Adjusted EBITDA margin Strong performance supports early declaration of 6.8% quarterly dividend per share increase and imp
Slide 13: Appendix
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Slide 14: Worldwide Consistent Inbound/Outbound Volume
14 (34.9) (35.6) (36.3) (37.9) (39.2) (40.3) (40.7) (40.4) 43.0 43.0 45.4 47.4 48.2 50.8 49.8 48.6 Q1 ’17 9.0 10.5 Q4 ’16 9.5 Q3 ’16 Q2 ’17 9.1 Q3 ’17Q1 ’16 7.4 Q4 ’15 8.1 8.2 Q2 ’16 9.1 Worldwide Consistent Inbound/Outbound Volume CuFt in mm Net Volume before Acquisitions/Dispositions (1) (1) Net v
Slide 15: Developed and Other International RM Volume
Developed and Other International RM Volume Developed Markets 15 Other International (1) Q2-17 cube growth has been adjusted to reflect required regulatory divestments in IRM’s legacy Australian business. (2) Represents CuFt acquired at close. CuFt activity post close flows through new sales, new vo
Slide 16: Data Center Portfolio
Data Center Portfolio 16 IRM Data Center Capacity in MW (1) Planned expansion indicates shell/infrastructure in place (2) Future expansion indicates ground breaking/new construction required (3) To be acquired from Credit Suisse, acquisition expected to close Q1 2018 Metropolitan Area Total Availabl
Slide 17: Increasing Cash Available for Dividends and Discretionary Investments
Increasing Cash Available for Dividends and Discretionary Investments 17 (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