Iron Mountain Incorporated (delaware) · NYSE:IRM
Iron Mountain Incorporated (delaware) — Iron Mountain — FY2018 Earnings Presentation
20 slides from Iron Mountain Incorporated (delaware)'s earnings presentation, Feb 14, 2019
Slide 1: Q4 and Full Year 2018 Financial Results
Q4 and Full Year 2018 Financial Results February 14, 2019
Slide 2: Safe Harbor Language and Reconciliation of Non-GAAP Measures
Safe Harbor Language and Reconciliation of 2 Non-GAAP Measures
Slide 3: 2018 – A Year of Continued Growth and Evolution
3 2018 – A Year of Continued Growth and Evolution Strong organic total revenue growth and margin expansion in FY18 • Revenue up 10% and Adjusted EBITDA up 14%, both on a constant currency basis • 100 bps and 120 bps expansion in Adjusted EBITDA margin for Q4 and FY18, respectively • AFFO growth of 1
Slide 4: Strong Wins in Storage and Digital Solutions
4 Strong Wins in Storage and Digital Solutions Records Management • 5-year CitiMortgage contract resulting in 550K cubic feet of records plus 820K+ files • The Hoover Institution selected IRM to help manage collections during renovation • Federal vertical saw net cube growth of 4% in 2018 Informatio
Slide 5: Data Center Momentum Highlighted by Solid Leasing and New Customer Wins
Data Center Momentum Highlighted by Solid 5 Leasing and New Customer Wins Data Center Performance in FY18 • $229 million in revenue, $100 million in Adj. EBITDA • 9.6MW of new and expansion leasing; 3.3MW of new and expansion leasing in Q4 • Ended 2018 with a development pipeline of 11MW in key mark
Slide 6: Strong Development Pipeline Supports Future Growth
Strong Development Pipeline Supports Future 6 Growth • High differentiation around Public sector and Highly Regulated industries Phoenix Campus Expansion – AZP-2 • Data Management relationships foster deal generation and cross-selling • Reputation, brand identity strongly resonates with customers •
Slide 7: Mix Shift Accelerates Adjusted EBITDA Growth
7 Mix Shift Accelerates Adjusted EBITDA Growth Q4’18 Revenue Mix 2020 Revenue Mix Target 75% 25% 70% 30% Developed Portfolio Growth Portfolio Developed Portfolio Growth Portfolio North America Emerging Markets, Data North America Emerging Markets, Data Center and Western Europe Center and Adj. Busin
Slide 8: Strong Q4 Growth and Margin Expansion
8 Strong Q4 Growth and Margin Expansion Growth $ and shares in mm Q4-17 Q4-18 Y/Y % Constant Currency Y/Y% Organic Growth Revenue $991 $1,061 7.1% 9.9% 3.5% Storage $614 $659 7.3% 9.9% 1.9% Service $377 $402 6.7% 9.8% 6.1% Adjusted Gross Profit(1) $570 $611 7.2% Adjusted Gross Profit Margin(1) 57.5%
Slide 9: Double-Digit Top and Bottom-Line Growth
9 Double-Digit Top and Bottom-Line Growth Growth $ and shares in mm FY-17 FY-18 Y/Y % Constant Currency Y/Y % Organic Growth Revenue $3,846 $4,226 9.9% 10.2% 3.6% Storage $2,378 $2,622 10.3% 10.6% 2.4% Service $1,468 $1,603 9.2% 9.7% 5.4% Adjusted Gross Profit(1) $2,181 $2,432 11.5% Adjusted Gross P
Slide 10: Organic Revenue Growth Supported by Strength in International and Revenue Management
Organic Revenue Growth Supported by Strength 10 in International and Revenue Management Q4 FY Developed Other Developed Other Total Total Markets(1) International(2) Markets(1) International(2) Organic Revenue Growth Storage 0.9% 4.1% 1.9% 1.4% 5.4% 2.4% Service 5.1% 6.1% 6.1% 5.2% 5.0% 5.4% Total 2
Slide 11: Continued Adjusted EBITDA Margin Expansion
11 Continued Adjusted EBITDA Margin Expansion Adjusted EBITDA Q4 2017 Q4 2018 Change in bps FY 2017 FY 2018 Change in bps Margin North America RIM 44.1% 44.7% 60 43.1% 44.8% 170 North America DM 56.2% 53.1% -310 55.6% 54.3% -130 Western Europe 35.8% 38.2% 240 32.4% 34.5% 210 Other International 27.0
Slide 12: Well-Positioned Balance Sheet
12 Well-Positioned Balance Sheet Balance Sheet Highlights as of 12/31/18 Net Lease Adjusted Leverage • 73% Fixed Rate Debt • 4.9% weighted average interest rate • 6.2 years weight average maturity • No significant maturities until 2023 Source: J.P. Morgan REIT Weekly U.S. Real Estate report February
Slide 13: 2019 Guidance Supports Continued Growth and Investments in Strategic Initiatives
2019 Guidance Supports Continued Growth and 13 Investments in Strategic Initiatives 2019 2018 2018 Results at Y/Y Change Constant Currency $ in MM 2019 Guidance Guidance Results 2019 FX(1) (vs. midpoint) Y/Y Change (midpoint) Revenue $4,226 $4,162 $4,200 - $4,400 $4,300 1.8% 3.3% Adj. EBITDA $1,436
Slide 14: Key Takeaways
14 Key Takeaways Strong 2018 performance highlighted by 10% revenue growth and 14% Adjusted EBITDA growth Driving continued improvement in Adjusted EBITDA margins – up 120 bps year over year Delivered on ‘18 data center revenue & Adjusted EBITDA commitments; leasing momentum strong entering ‘19 Conf
Slide 15: Appendix
Appendix
Slide 16: Storage and Service Mix by Geography
16 Storage and Service Mix by Geography 7.3% Service 38% of Revenue 30.6% 49.9% 12.1% Storage 62% of Revenue Developed Markets Other International
Slide 17: Revenue Mix by Product Line
17 Revenue Mix by Product Line 4.0% 1.8% 4.3% 0.3% Q4’18 Q4’18 Service Revenue 17.5% Storage Revenue 38% of total revenues 62% of total revenues 31% gross profit margin 74% gross profit margin 45.2% 20% 10.1% 80% of adjusted of adjusted gross profit 1.8% gross profit 8.7% 5.8% 0.6% Adjacent Business
Slide 18: Developed and Other International RM Volume
18 Developed and Other International RM Volume Developed Markets Other International 16.5% 61.7% 54.6% 2.2% 15.7% 9.0% 9.0% -0.4% -1.2% -1.0% 1.8% 0.5% -0.9% 0.3% 5.4% 7.0% 2.4% 0.3% 0.3% 6.0% 5.8% 5.2% 5.4% 2.1% 0.1% 0.1% 0.1% 3.0% 4.3% 2.0% 2.0% 0.1% 1.8% 3.8% 1.7% 1.6% 1.5% 1.7% 1.8% 3.3% 3.0% 2.
Slide 19: Cash Available for Dividends and Discretionary Investments in 2019
Cash Available for Dividends and Discretionary 19 Investments in 2019 in $MM $ in MM 2019E $335 Adjusted EBITDA $1,420 $1,530 Incremental Non-cash stock compensation / 54 54 Capital Needed $250 other (including non-cash permanent withdrawal fees) for Data Center Development Adjusted EBITDA and non-c
Slide 20: Cash Available for Dividends and Discretionary Investments in 2018
Cash Available for Dividends and Discretionary 20 Investments in 2018 in $MM $ in MM 2018A $335 Adjusted EBITDA $1,436 Non-cash stock compensation / Credit Suisse and 46 EvoSwitch Data other (including non-cash permanent withdrawal fees) $335 Center Incremental Adjusted EBITDA and non-cash expenses