Iron Mountain Incorporated (delaware) · NYSE:IRM
Iron Mountain Incorporated (delaware) — Iron Mountain — Q2 2014 Earnings Presentation
33 slides from Iron Mountain Incorporated (delaware)'s earnings presentation, Jul 31, 2014
Slide 1: Earnings Commentary and Supplemental Information, Second Quarter 2014
www.ironmountain.com logo_Iron_MountainEarnings Commentary and Supplemental Information logo_Iron_MountainSecond Quarter 2014 Unaudited
Slide 2: Safe Harbor Statement
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix Safe Harbor Statement 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
Slide 3: Table of Contents
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix All figures except per share and facility counts in 000s unless noted All figures in R$ unless noted Figures may not foot due to rounding Table of Contents 3 Investor Relations Contacts: Faten Freiha, 61
Slide 4: Earnings Commentary
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix Earnings Commentary 4 Reconciliation of Non-GAAP Measures: Throughout this document, Iron Mountain will discuss Adjusted Operating Income Before Depreciation, Amortization and Intangible Impairments and
Slide 5: Earnings Commentary
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix Earnings Commentary 5 Additionally, we continued to demonstrate the resilience of our storage rental business and our ability to preserve and extend that durability with strong financial and operating re
Slide 6: Company Profile
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix Company Profile Iron Mountain is a global leader in enterprise storage with a high- return, real estate-based, business model, yielding revenues over $3 billion per annum. The company provides storage an
Slide 7: Financial Highlights
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix Financial Highlights 7 (1) Excludes CapEx related to the company’s REIT conversion (2) Includes CapEx related to service-related businesses, as well as corporate overhead support and office outfitting (3
Slide 8: Components of Year-over-Year Revenue Growth
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix Components of Year-over-Year Revenue Growth 8 Net Volume Growth Rate Year-over-Year Net Volume Growth Rates (Records Management Only) -4.6% 6.3% 2.1% 4.4% Q3-13 -4.7% 6.6% 1.9% 1.5% Q4-12 2.7% -4.7% 6.8%
Slide 9: Guidance Summary
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix Guidance Summary 9 Financial Performance Outlook (1) Adjusted to reflect company’s conversion to a REIT (2) Includes 0% - 2% internal growth revenue (3) Excludes ~$6 million of charges related to the com
Slide 10: Quarterly Operating Performance
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix Quarterly Operating Performance 10 (1) Includes ~$2 million for the relocation of the Boston headquarters (2) Includes ~$8 million for data center construction (3) Excludes certain costs and expenditures
Slide 11: Year-to-Date Operating Performance
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix Year-to-Date Operating Performance 11 (1) Includes ~$7 million for the relocation of the Boston headquarters (2) Includes ~$15 million for data center construction (3) Excludes certain costs and expendit
Slide 12: Consolidated Balance Sheets
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix Consolidated Balance Sheets 12 ASSETS 12/31/2013 6/30/2014 Current Assets: Cash and Cash Equivalents $120,526 $145,343 Restricted Cash 33,860 33,860 Accounts Receivable, Net 616,797 636,978 Other Current
Slide 13: Consolidated Statements of Operations
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix Consolidated Statements of Operations 13 Q2 2013 Q2 2014 % Change YTD 2013 YTD 2014 % Change Revenues: Storage Rental $441,571 $466,889 5.7% $884,040 $925,778 4.7% Services 312,825 320,003 2.3% 617,062 6
Slide 14: Reconciliation of Operating Income to Adjusted OIBDA
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix 14 Reconciliation of Operating Income to Adjusted OIBDA Q2 2013 Q2 2014 % Change YTD 2013 YTD 2014 % Change Operating Income $131,544 $147,290 12.0% $254,061 $289,365 13.9% Depreciation and Amortization
Slide 15: Reconciliation of Reported EPS to Adjusted EPS
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix 15 Reconciliation of Reported Earnings per Share to Adjusted Earnings per Share1 Q2 2013 Q2 2014 % Change YTD 2013 YTD 2014 % Change Reported EPS - FD from Continuing Operations $0.14 $1.41 n/a $0.24 $1.
Slide 16: Reconciliation of Free Cash Flows to Operating Cash Flow
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix 16 Reconciliation of Free Cash Flows Before Acquisitions and Discretionary Items to Operating Cash Flow Q2 2013 Q2 2014 % Change YTD 2013 YTD 2014 % Change Cash Flows from Operating Activities from Conti
Slide 17: Reconciliation of Net Income to FFO & AFFO
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix 17 Reconciliation of Net Income Attributable to IRM to FFO & AFFO (1) Includes realized and unrealized FX (gains) losses (2) Excludes realized and unrealized FX (gains) losses (3) Includes deferred finan
Slide 18: Storage Net Operating Income (NOI)
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix 18 Storage Net Operating Income (NOI) (1) Includes Fulfillment Services, Document Management Services, Intellectual Property Management, Data Center and Entertainment Services (2) Includes Building Maint
Slide 19: Global Real Estate Portfolio
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix Global Real Estate Portfolio1 19 (1) Includes all real estate held in joint ventures (2) Adjustments to previous quarter close based on refinements to real estate basis, reclass of multiple adjoining fac
Slide 20: Revenue from Rental Activities and Storage NOI per Racked Square Foot
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix Revenue from Rental Activities and Storage NOI per Racked Square Foot 20 (1) Includes loading docks, unracked space, office space, common areas, as well as space in service-related facilities (2) Exclude
Slide 21: Gross Book Value of Real Estate Assets
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix Gross Book Value of Real Estate Assets 22 Storage Operations Real Estate Assets Land $213,718 Buildings & Improvements 1,851,974 Racking 1,503,554 Total Storage Gross Book Value $3,569,245 Service Operat
Slide 22: Service Business Detail
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix Service Business Detail 23 (1) Includes Document Management Services, Consulting, Intellectual Property Management, Fulfillment Services, Data Center Services and Entertainment Services Our service reven
Slide 23: Customer Data
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix Customer Data 24 (1) No single vertical within ‘Other’ comprises greater than 1% of North America Revenue Federal Legal Financial 3% 37% 3% Insurance 3% Other1 8% Healthcare 16% Business Services 9% Ener
Slide 24: Debt Schedule
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix Debt Schedule 25 (1) Excludes mortgages 2024 2022 $600 Thereafter 2023 $1,000 2021 $600 2020 2019 $400 2018 $348 2017 2016 $1,103 2015 2014 Floating Rate Debt Fixed Rate Debt 27% 73% Senior & Subordinate
Slide 25: Capitalization
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix Capitalization 26 6.0 5.0 4.0 0.0 2012 Q2 2014 5.1x 2013 5.0x 4.7x Net Lease Adjusted Leverage Ratio Total Market Capitalization # of Shares Outstanding @ 6/30/14 192,993 Share Price @ 6/30/14 $35.45 Tot
Slide 26: Lease Obligations
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix Lease Obligations1 (1) Includes capital and operating lease obligations Weighted Average Remaining Lease Obligations (no exercise of extension options): 5.6 years Weighted Average Remaining Lease Obligat
Slide 27: Components of Value
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix Components of Value 28 (1) Trailing four quarter prior to rental expense (2) Includes Cash, Cash Equivalents, Restricted Cash, Accounts Receivable, Other Tangible Current Assets, Deferred Income Taxes an
Slide 28: Appendix: Non-GAAP Measures
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix Appendix 29 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
Slide 29: Appendix: Non-GAAP Measures (continued)
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix Appendix Non-GAAP Measures (continued) Adjusted Funds From Operations, or AFFO AFFO is defined as FFO (Normalized) excluding non-cash rent expense or income, plus depreciation on non-real estate assets,
Slide 30: Appendix: Definitions
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix Appendix Definitions Building Development Projects – The construction of new facilities, or three-wall additions, including all initial and future racking installations. Business Segments North American
Slide 31: Appendix: Definitions (continued)
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix Appendix 32 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 Utilizatio
Slide 32: Appendix: Definitions (continued)
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix Appendix 33 Definitions (continued) Components of Overhead Allocated Overhead – Includes overhead expenses directly associated with storage and service business operations allocated as follows: Field Ope
Slide 33: Appendix: Definitions (continued)
www.ironmountain.com logo_Iron_MountainSelected metric definitions are available in the appendix Appendix 34 Definitions (continued) Lease Adjusted Leverage Ratio – The calculation for this ratio is EBITDA + Rent Expense divided by net debt including the capitalized value of lease obligations. Net V