Iron Mountain Incorporated (delaware) · NYSE:IRM
Iron Mountain Incorporated (delaware) — Iron Mountain — Q1 2017 Earnings Presentation
15 slides from Iron Mountain Incorporated (delaware)'s earnings presentation, Apr 27, 2017
Slide 1: Q1 2017 Financial Results
Q1 2017 Financial Results April 27, 2017
Slide 2: Safe Harbor Language and Reconciliation of Non-GAAP Measures
Safe Harbor Language and Reconciliation of Non-GAAP Measures 2 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- harbor created by such Act. Forward-looking st
Slide 3: Q1 on Track with Short and Long-Term Financial Objectives
Q1 on Track with Short and Long-Term Financial Objectives 3 Q1 key financial results in line with expectations • Supported by durability of storage rental business Maintaining 2017 C$ guidance (based on January 2017 FX rates) • Business fundamentals remain strong Strong internal storage rental growt
Slide 4: Q1 Plan Highlights
4 Q1 Plan Highlights Developed Markets – North America and Western Europe • +3.2 million cubic feet of net(1) new volume before business acquisitions • Maintained strong customer retention and generated durable storage rental growth Emerging Markets(2) • ~18% of total revenue; expanded presence thro
Slide 5: Shifting Revenue Mix to Higher Growth Portfolio
Shifting Revenue Mix to Higher Growth Portfolio 5 80.7% 17.7% 1.6% Q1 2017 84.3% 14.6% 1.1% Q4 2015(1) Revenue Mix 75% 20% 5% 2020 Goal (1) Q4-15 represents period when revenue mix shift goal was established
Slide 6: Performance Supports Dividend Growth
Performance Supports Dividend Growth 6 $ in MM (R$) except Dividend/Share Q1-16 Q1-17 R$ C$ Revenue $751 $939 25.1% 25.2% Adjusted EBITDA(1) $235 $293 24.4% 25.1% AFFO(1) $168 $171 2.0% Fully Diluted Shares Outstanding 212 265 24.6% Q1 Annualized Dividend/Share $1.94 $2.20 13.4% (1) Reconciliation f
Slide 7: Rising Interest Rates and Inflation Create Potential Benefit
Rising Interest Rates and Inflation Create Potential Benefit • Historically benefited from inflation, which supports higher pricing • High flow-through of pricing given ~75% storage gross margins • Relative insensitivity to higher interest rates compared with other REITs • Customers’ storage needs u
Slide 8: Solid Worldwide Financial Performance
Solid Worldwide Financial Performance 8 $ in MM (R$) Q1-16 Q1-17 R$ C$ Internal Growth Revenue $751 $939 25.1% 25.2% 2.0% Storage $461 $572 24.1% 24.4% 3.0% Service $289 $367 26.6% 26.6% 0.6% Gross Profit(1) $425 $520 22.5% Gross Profit Margin 56.6% 55.4% (120) bps Income from Continuing Operations
Slide 9: Steady Internal Growth
Steady Internal Growth Q1-17 Internal Growth NA Records & Information Management NA Data Management Western Europe Other International Corporate & Other Total Storage 1.9% 2.7% 1.7% 8.3% 9.0% 3.0% Service 1.1% (6.7)% 4.4% 2.8% (18.3)% 0.6% Total 1.6% (0.3)% 2.7% 6.1% 1.4% 2.0% 9 Quarterly segment op
Slide 10: Storage Revenues Continue to Drive Growth – By Reported Segment
Storage Revenues Continue to Drive Growth – By Reported Segment 10 Storage is 82% of Total Gross Profits Quarterly segment operating performance can be found on Page 10 of the Supplemental Financial Information Q1’17 Service Revenue 39% of total revenues 26% gross profit margin Q1’17 Storage Revenue
Slide 11: Storage Revenues Continue to Drive Growth – By Product Line
Storage Revenues Continue to Drive Growth – By Product Line 11 1.3% 9.3% 50.4% 0.3% 10.1% 4.4% 24.2% Adjacent Businesses Shred Data Management Records Management Storage is 82% of Total Gross Profits Q1’17 Service Revenue 39% of total revenues 26% gross profit margin Q1’17 Storage Revenue 61% of tot
Slide 12: Profitability Mix and Foreign Debt Mitigate FX Headwinds
Profitability Mix and Foreign Debt Mitigate FX Headwinds 12 61% 39% Revenue 77% 23% Debt 71% 29% Adjusted EBITDA(1) Based on Q1 2017 reported dollar results (1) Excludes Adjusted EBITDA from Corporate & Other. Segment first quarter performance details can be found on Page 10 of the Supplemental Fina
Slide 13: 2017 Guidance
2017 Guidance 13 • Business fundamentals remain strong; expected internal storage rental revenue growth of 2.0% - 2.5% • Plan to invest $20 mm in operating expenditures related to back-office centralization and innovation initiatives • Evaluating several storage and service line innovations, if they
Slide 14: Increasing Cash Available for Dividends and Discretionary Investments
Increasing Cash Available for Dividends and Discretionary Investments 14 (1) Customer inducements and acquisitions of customer relationships are not deducted from AFFO as they represent discretionary growth investment (2) Includes core growth racking and excludes Northern Virginia Data Center develo
Slide 15: Summary
Summary 15 Q1 key financial results in line with expectations • Supported by durability of storage rental business Maintaining 2017 C$ guidance (based on January 2017 FX rates) • Business fundamentals remain strong Strong internal storage rental growth of 3.0% in Q1 • Volume growth in all segments N