Iron Mountain Incorporated (delaware) · NYSE:IRM
Iron Mountain Incorporated (delaware) — Iron Mountain — Q1 2020 Earnings Presentation
16 slides from Iron Mountain Incorporated (delaware)'s earnings presentation, May 7, 2020
Slide 1: Q1 2020 Earnings Call May 7, 2020
Q1 2020 Earnings Call May 7, 2020
Slide 2: Forward Looking Statements
Forward Looking Statements 2 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 1995 and other securities laws and is subject to the safe-harb
Slide 3: Thank you to our Mountaineers!
Thank you to our Mountaineers! 3
Slide 4: Iron Mountain Response to COVID-19
Iron Mountain Response to COVID-19 4 ■ Focused on the SAFETY and SECURITY of our Mountaineers, their families and our customers ○ Facility shutdowns or limited operations where necessary; corporate employees working from home ○ Following CDC, WHO and local government guidelines to protect employee h
Slide 5: COVID-19 Pandemic Impact Varies by Business and Product Line
COVID-19 Pandemic Impact Varies by Business 5 and Product Line Product Commentary on Recent Trends Records Management ■ More than 96% of facilities globally have remained open at varying levels of operations ■ Over 97% of annual storage rental revenue normally driven by volume that was inbounded in
Slide 6: How We Are Serving Our Customers Today
How We Are Serving Our Customers Today 6 Iron Mountain Image on Demand Secure Business Storage & Logistics InSight Essentials Digital Service supporting the needs of remote Store and quickly deploy the protective Capture, store and access your content in a workforces and enabling access to important
Slide 7: Q1 Performance
Q1 Performance 7 Strong financial execution • Revenue grew 3.2% Y/Y, ex FX, driven by Global Data Center, Global RIM, and revenue management • Adjusted EBITDA, ex FX, increased almost 14% Y/Y; margin expanded 320 bps • AFFO and Adjusted EPS grew 20% and 59% Y/Y, respectively Core storage business re
Slide 8: Durable Global Storage Portfolio
Durable Global Storage Portfolio 8 Note: Business acquisitions volume acquired during the quarter included in total volume; Q1 2020 includes ~18 million cubic feet from the acquisition of OSG Records Management.
Slide 9: Data Center Leasing Accelerated
Data Center Leasing Accelerated 9 • 6MW of new and expansion leases signed in Q1 Rendering of Frankfurt Data Center (FRA-1) • Signed 14 new logos, including a leading hyperscale enterprise software provider • Continue to maintain good momentum with our enterprise customers. • Current commercial acti
Slide 10: Project Summit – Expected Financial Impact
Project Summit – Expected Financial Impact 10 Previous Outlook Current Outlook - Total Program: Annual Adjusted EBITDA - Total Program: Annual Adjusted EBITDA benefits of $200M exiting 2021 benefits of $375M exiting 2021 Financial - 2020: Adjusted EBITDA benefit of $80M - 2020: Adjusted EBITDA benef
Slide 11: Q1 Financial Performance
Q1 Financial Performance 11 Constant Organic In millions, except per-share data Q1-20 Q1-19 Y/Y % Currency Y/Y% Growth(1) Revenue $1,069 $1,054 1.4% 3.2% 1.0% Storage $684 $663 3.1% 4.9% 3.0% Service $385 $391 -1.5% 0.3% -2.3% Gross Profit $602 $593 1.4% 3.0% Gross Profit Margin 56.3% 56.3% -- SG&A
Slide 12: Q1 Segment Revenue and Margin Trends
12 Q1 Segment Revenue and Margin Trends Revenue ($M) / Adj. EBITDA Adj. EBITDA ($M) / Segment Organic Margin % / Commentary Growth Y/Y % Growth Y/Y % +/- Y/Y ■ Organic growth driven by volume in faster $956 $392 41.0% growing markets and revenue management Global RIM ■ Margin expansion driven by rev
Slide 13: Balance Sheet Remains Well Positioned
Balance Sheet Remains Well Positioned 13 Balance Sheet Highlights as of Strong Liquidity and Cash Position Net Lease Adjusted Leverage 3/31/20 • $150 million cash • ~78% Fixed Rate Debt balance as of 4/30/20 • 4.5% weighted average • ~$1 billion remaining interest rate capacity on revolving • 5.6 ye
Slide 14: Framework for 2020 Outlook
Framework for 2020 Outlook 14 Revenue Costs Cash Storage Volume Cost base CapEx • Expect negative net cube growth y/y • Temporary reductions of labor • Eliminating non-essential investment driven by constraints on inbounding expense and SG&A in-line with • Reduced investment by $110M (~20%) new volu
Slide 15: Capital Allocation Strategy Has Not Changed
Capital Allocation Strategy Has Not Changed | 15 Adjusting 2020 for Current Environment Long-Term Priorities 2020 Focus on Capital Preservation • Sustainable dividend • Dividend maintenance • Long-term target leverage ratio of 4.5x – 5.5x • Manage leverage ratio with headroom from most restrictive •
Slide 16: Key Takeaways
Key Takeaways 16 Strong Q1 financial performance; core storage business remains durable Our recent transformation has positioned us to respond swiftly and maintain operations Cash generative business model with track record of balance sheet management Positioning Iron Mountain to emerge as a stronge