Iron Mountain Incorporated (Delaware) · NYSE:IRM
Iron Mountain Incorporated (Delaware) — Iron Mountain — Q1 2017 Earnings Presentation
44 slides from Iron Mountain Incorporated (Delaware)'s earnings presentation, Apr 27, 2017
Slide 1: Supplemental Financial Information First Quarter 2017
www.ironmountain.com Supplemental Financial Information First 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 over $3.8 billion. The company provides storage and infor
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) Q1 2106 AFFO has been revised to reflect the new AFFO definition introduced in the Q4 2016 Supplemental Financial Informa
Slide 6: 2017 Guidance Summary
www.ironmountain.com Selected metric definitions are available in the Appendix 2017 Guidance Summary(1) 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 required fo
Slide 7: Year-over-Year Revenue Growth
www.ironmountain.com Selected metric definitions are available in the Appendix Year-over-Year Revenue Growth 7 39.0% 61.0% Service Storage Rental 18.4% 81.6% Service Storage Rental Q1 2017 Revenue Q1 2017 Gross Profit 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
Slide 8: Records Management Volume Growth
www.ironmountain.com Selected metric definitions are available in the Appendix Records Management Volume Growth 8 ‐4.4% ‐4.5% ‐4.6% ‐4.8% ‐4.8% ‐4.9% ‐5.0% ‐5.0% ‐2.1% ‐2.1% ‐2.1% ‐2.0% ‐2.1% ‐2.2% ‐2.3% ‐2.4% 5.9% 5.7% 5.8% 5.8% 6.0% 6.2% 6.3% 6.4% 2.3% 2.4% 2.5% 2.6% 2.6% 2.7% 2.8% 3.0% 1.6% Q1‐17
Slide 9: Records Management Volume Growth
www.ironmountain.com Selected metric definitions are available in the Appendix Records Management Volume Growth 9 3.6% Q1‐17A 49.2% ‐2.6% ‐6.2% 6.9% 5.7% 45.5% 48.4% ‐2.7% Q4‐16A ‐5.8% 6.3% 4.9% 45.7% Q3‐16A 49.3% ‐2.7% ‐4.3% 5.8% 4.4% 46.1% Q2‐16A 37.8% ‐2.6% ‐3.9% 5.5% 4.8% 34.1% Q1‐16A 3.0% ‐2.3%
Slide 10: Quarterly Operating Performance
www.ironmountain.com Selected metric definitions are available in the Appendix Quarterly Operating Performance 10 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 X 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 I I S e c t i o n I Q1 R
Slide 11: Consolidated Balance Sheets
www.ironmountain.com Selected metric definitions are available in the Appendix Consolidated Balance Sheets 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 I I S e c t i o n X S e c t i o n I S e c t i o n I I S e c t i o n I V (1) Incl
Slide 12: Consolidated Statements of Operations
www.ironmountain.com Selected metric definitions are available in the Appendix Consolidated Statements of Operations 12 (1) Includes $7.9mm of Recall Costs in Q1 2017. (2) Includes $18.3mm and $12.7mm of Recall Costs in Q1 2016 and Q1 2017, respectively. S e c t i o n V I I I S e c t i o n I X S e c
Slide 13: Reconciliation of Income from Continuing Operations to Adjusted EBITDA
www.ironmountain.com Selected metric definitions are available in the Appendix 13 Reconciliation of Income (Loss) from Continuing Operations to Adjusted EBITDA (1) Includes realized and unrealized FX (gains) losses. S e c t i o n V I I I S e c t i o n I X S e c t i o n V I I S e c t i o n V I S e c
Slide 14: Reconciliation of Reported EPS to Adjusted EPS
www.ironmountain.com Selected metric definitions are available in the Appendix 14 Reconciliation of Reported Earnings per Share to Adjusted Earnings per Share (1) Reflects additional 50.2mm shares of common stock issued in connection with the Recall acquisition in Q2 2016. (2) The difference between
Slide 15: Reconciliation of Net Income to FFO & AFFO
www.ironmountain.com Selected metric definitions are available in the Appendix 15 Reconciliation of Net Income to FFO & AFFO (1) Includes realized and unrealized FX (gains) losses. (2) Calculated as actual cash taxes less current tax provision and other one-time cash tax items, to reflect actual cas
Slide 16: Reconciliation of Cash Flow from Operations to AFFO
www.ironmountain.com Selected metric definitions are available in the Appendix 16 Reconciliation of Cash Flow from Operations to AFFO (1) Calculated as actual cash taxes less current tax provision and other one-time cash tax items, to reflect actual cash tax (impact)/benefit to AFFO. (2) Working cap
Slide 17: Quarterly Revenue Growth Bridge
www.ironmountain.com Selected metric definitions are available in the Appendix 17 Quarterly Revenue Growth Bridge ($mm) 25% Reported R$ 25% C$ Normalized $190 Q1 2017 Revenue ‐ Reported $ $939 IRM and REC Revenue GrowthQ1 2016 Revenue at Q1 2017 FX Rates $749 FX Impact at Q1 2017 FX Rates $2 Q1 2016
Slide 18: Quarterly Normalized Adjusted EBITDA Bridge
www.ironmountain.com Selected metric definitions are available in the Appendix 18 Quarterly Normalized Adjusted EBITDA Bridge ($mm) 25% C$ Normalized $235 $234 $28 $31 $293 Q1 2017 Adjusted EBITDA ‐ Reported $ REC and IRM Adjusted EBITDA Growth Net of Divestitures Recall Synergies and Transformation
Slide 19: Quarterly Normalized Adjusted EPS Bridge
www.ironmountain.com Selected metric definitions are available in the Appendix 19 Quarterly Normalized Adjusted EPS Bridge (10)% Normalized Comparison $0.33 $0.07 $0.26 $0.08 $0.09 $0.06 $0.11 $0.03 $0.24 Q1 2017 Adjusted EPS ‐ Reported $ Tax Rate Increase Increase in D&A Increase in Interest Expens
Slide 20: Storage and Service Reconciliation
www.ironmountain.com Selected metric definitions are available in the Appendix 20 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 X S e c t i o n I I I S e c t i o n I I S e c t i o n I S e c t i o n V S e c t i o n I V Q
Slide 21: Storage Net Operating Income (NOI)
www.ironmountain.com Selected metric definitions are available in the Appendix 21 Storage Net Operating Income (NOI) (1) Includes Data Center, Fine Art Storage, Consumer Storage, Technology Escrow Services, Digital Storage, Fulfillment Services, Information Governance and Digital Solutions, Entertai
Slide 22: Service Business Detail
www.ironmountain.com Selected metric definitions are available in the Appendix Service Business Detail 22 (1) Includes Fulfillment Services, Information Governance and Digital Solutions, Technology Escrow Services, Data Center, Consulting, Entertainment Services, Fine Art Storage, Consumer Storage a
Slide 23: 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 23 (1) Includes warehouse equipment, vehicles, furniture, fixtures, computer hardware and software. To be updated 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
Slide 24: 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 extension
Slide 25: Global Real Estate Portfolio
www.ironmountain.com Selected metric definitions are available in the Appendix Global Real Estate Portfolio(1) 25 (1) Includes real estate held in joint ventures. (2) Includes South Africa. (3) Out of the 35 leased building additions and expansions, 25 were the result of acquiring leases in business
Slide 26: Revenue from Rental Activities 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 26 (1) Includes loading docks, unracked space, office space, common areas, as well as space in service-related facilities. (2) Excludes Revenue and NOI
Slide 27: Portfolio Utilization
www.ironmountain.com Selected metric definitions are available in the Appendix Portfolio Utilization Records Management Storage Portfolio (CuFt MM) As of 3/31/2017 2244 96 5564 134 700 600 500 400 100 0 +23.8% +10.2% +38.6% +151.3%+45.9% Total IRM 677 547 Latin America AsiaEuropeNorth America 424 38
Slide 28: Customer Data
www.ironmountain.com Selected metric definitions are available in the Appendix Customer Data 28 (1) No single vertical within ‘Other’ comprises greater than 1% of North America Revenue. (2) Q1 2017 reflects a benefit (reversal of previously provided expense) associated with bad debt expense as a res
Slide 29: Debt Schedule
www.ironmountain.com Selected metric definitions are available in the Appendix Debt Schedule 29 $250 $189 $1,270 $300 $1,000 $788 $650 $1,016 Thereafter20262025202420232022 $689 2021202020192018 29% 71% Fixed vs. Floating Rate Debt at 3/31/17(4) Debt Maturity Schedule ($MM) Floating Rate Debt Fixed
Slide 30: Capitalization
www.ironmountain.com Selected metric definitions are available in the Appendix Capitalization 30 (1) Total debt net of cash is calculated as current portion of long-term debt of $421mm plus long-term debt net of current portion of $5,923mm plus $65mm of deferred financing costs less cash and cash eq
Slide 31: Capital Expenditures and Investments
www.ironmountain.com Selected metric definitions are available in the Appendix Capital Expenditures and Investments 31 (1) Includes Recall CapEx of $0.3mm and $6.3 in Q1 2016 and Q1 2017, respectively. (2) Includes $16.0mm and $19.8mm for data centers in Q1 2016 and Q1 2017, respectively. (3) Includ
Slide 32: 2017 Business and Customer Acquisition and Disposition Activity Investments
www.ironmountain.com Selected metric definitions are available in the Appendix 2017 Business and Customer Acquisition and Disposition Activity Investments(1) 32 (1) Based on 2017 C$ Budgeted FX Rates. (2) Racking Installations exclude consolidation spend in Total Expected Investment, Investment in C
Slide 33: Components of Value
www.ironmountain.com Selected metric definitions are available in the Appendix Components of Value 33 (1) Includes South Africa. (2) Trailing four quarter prior to rental expense. (3) Annualization of four months of Recall Service EBITDAR. (4) Includes Cash, Cash Equivalents, Restricted Cash, Accoun
Slide 34: Q1-Q4 Reconciliation to AFFO
www.ironmountain.com Selected metric definitions are available in the Appendix 34 Appendix: Q1-Q4 Reconciliation to AFFO (1) Includes realized and unrealized FX (gains) losses. (2) Represents actual cash taxes less current tax provision and other one-time cash tax items. (3) Non-Real Estate Investme
Slide 35: Non-GAAP Measures
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 35 Non-GAAP Measures 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 when evaluating o
Slide 36: Non-GAAP Measures (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix Non-GAAP Measures (continued) Adjusted EBITDA and Adjusted EBITDA Margin Adjusted EBITDA is defined as income (loss) from continuing operations before interest expense, net, provision (benefit) for income taxes,
Slide 37: Non-GAAP Measures (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix Non-GAAP Measures (continued) FFO (Normalized) per share FFO (Normalized) divided by weighted average fully-diluted shares outstanding. Service Adjusted EBITDA Service Adjusted EBITDA is calculated by taking serv
Slide 38: Definitions
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 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. For bu
Slide 39: Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix Definitions (continued) Other International Business – Our Other International Business segment provides records and information management services throughout the remaining European countries in which we operate
Slide 40: Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 40 Definitions (continued) Capital Expenditures and Investments – Our business requires capital expenditures to support our expected storage rental revenue and service revenue growth and ongoing operations, new p
Slide 41: Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 41 Definitions (continued) Capital Expenditures and Investments (continued) Components of Overhead Allocated Overhead – Includes overhead expenses directly associated with storage and service business operations
Slide 42: Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 42 Definitions (continued) Internal Revenue Growth – Our internal revenue growth rate, which is a non-GAAP measure, represents the weighted average year-over-year growth rate of our revenues excluding the impact
Slide 43: Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 43 Definitions (continued) Service Profit and Margin – The Gross Profit and Margin attributable to the worldwide service business. Calculated as follows: Services Adj. EBITDA + Allocated Overhead Expenses + Termi
Slide 44: Definitions (continued)
www.ironmountain.com Selected metric definitions are available in the Appendix Appendix 44 Definitions (continued) Total Expected Investment – Is defined as follows: Total Expected Investment for Racking Installations – The sum of expected investments for all approved racking projects, reported on a