Iron Mountain Incorporated (delaware) · NYSE:IRM
Iron Mountain Incorporated (delaware) — Iron Mountain — Q2 2020 Earnings Presentation
11 slides from Iron Mountain Incorporated (delaware)'s earnings presentation, Aug 6, 2020
Slide 1: Q2 2020 Earnings Call
Q2 2020 Earnings Call August 6, 2020
Slide 2: Forward Looking Statements
Forward Looking Statements 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 Litigation Reform Act of 1995 and other securities laws and is subject to the safe
Slide 3: COVID-19 Update
3 COVID-19 Update Community ● Committed to the health, safety and well-being of employees, customers, vendors, and communities ○ Heightened hygiene and sanitation practices; social distancing and safety protocols ● Maximizing flexible and remote work arrangements ● Bringing Mountaineers back from fu
Slide 4: Q2 Performance
Q2 Performance 4 Solid performance in a challenging environment • Delivered constant-currency Adjusted EBITDA in line with last year, despite $58 million revenue decline • Adjusted EBITDA margin expanded 200 bps Y/Y - benefits from Project Summit, revenue management, and mix • Drove cash cycle impro
Slide 5: Durable Global Storage Portfolio
Durable Global Storage Portfolio 5 Worldwide Storage Volume 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 6: Data Center Momentum Accelerated
Data Center Momentum Accelerated 6 ● 32+ MW of new and expansion leases signed in Q2 Rendering of Frankfurt Data Center (FRA-1) ○ Pre-leased 100% of new FRA-1 data center ● Expect to lease an additional 10+ MW in 2H; leading to 45-50 megawatts for the full year ● Current commercial activity supports
Slide 7: Project Summit – Transformation Program on Track
Project Summit – Transformation Program on 7 Track - Total Program: Annual Adjusted EBITDA benefits of $375M exiting 2021 Expected Financial - 2020: Adjusted EBITDA benefit of $150M Benefit - $40M benefit realized in Q2; $65M benefit realized YTD - Total Program: ~$450M by end of 2021 Total Estimate
Slide 8: Q2 Financial Performance
Q2 Financial Performance 8 Constant Currency Organic In millions, except per-share data Q2-20 Q2-19 Y/Y % Y/Y% Growth(1) Revenue $982 $1,067 -7.9% -5.6% -7.2% Storage $677 $669 1.1% 3.7% 2.3% Service $305 $398 -23.2% -21.3% -23.1% Gross Profit(2) $576 $603 -4.6% -2.5% Gross Profit Margin(2) 58.6% 56
Slide 9: Balance Sheet Remains Well Positioned
Balance Sheet Remains Well Positioned 9 Balance Sheet Highlights as of Successful Bond Offering Net Lease Adjusted Leverage 6/30/20 • Completed a • ~85% Fixed Rate Debt leverage-neutral • 4.6% weighted average $2.4 billion bond offering interest rate in June • 7.0 years • Extended maturity profile w
Slide 10: Capital Allocation Strategy Has Not Changed
Capital Allocation Strategy Has Not Changed 10 • Sustain the dividend at current level • Long-term target leverage ratio of 4.5x – 5.5x • Reinvest in the business through growth Capital Expenditures • Invest in accretive M&A • Capital recycling + alternative sources of funding
Slide 11: Key Takeaways
Key Takeaways 11 Strong Q2 financial performance; core storage business remains durable Service activity levels improved in June compared to April/May Strong balance sheet and liquidity position as we execute on our strategic initiatives in a challenging economic environment Extensive portfolio of n