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Iron Mountain Annual Report, Year Ended Dec 31, 2001

Filing Date
Filed March 21, 2002
Period End
December 31, 2001
Security
IRM
In the record · 2016–202610-K1110-Q328-K133

IRM filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 133 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Mar ’18Mar ’18
  2. Leadership change8-K · Dec ’19Dec ’19
  3. Material agreement8-K · Dec ’21Dec ’21
  4. Leadership change8-K · Oct ’25Oct ’25

01—Abstract

Summary

Summary of the 10-K filed March 21, 2002. Cited figures are marked; the original filing is the authoritative source.

Iron Mountain Incorporated's 10-K for fiscal 2001 describes the company as the leader in outsourced records and information management services, serving more than half of the Fortune 500 across 124 markets, with total 2001 revenues of $1,171.1 milliona, up from $986.4 million in 2000.

Storage revenues were $694.5 millionb and service and storage material sales were $476.6 million. Internal revenue growth was 10.5%, and Adjusted EBITDA rose to $302.2 million (25.8% of revenues) from $257.0 million. Storage and core services represented approximately 86% of 2001 revenues, and storage revenues have been about 60% of total revenues in each of the last five years.

Profitability remained weak at the net income line. The company reported a 2001 net loss of $44.1 millionc, driven by $134.7 million of interest expense, $153.6 million of depreciation and amortization, an $18.4 million other expense (including a $6.9 million investment impairment and a $10.4 million foreign currency loss), and an $11.8 million extraordinary charge from early debt retirement. Total debt was $1,496.1 million at year-end 2001, and shareholders' equity was $885.96 million.

Management attributes the losses in part to growth-related depreciation, goodwill amortization, and interest costs. Goodwill amortization is set to cease on January 1, 2002 under SFAS 142, which management expects to increase 2002 operating income by approximately $59 milliond, subject to possible impairment write-downs. Liquidity was supported in 2001 by $427.9 million of net proceeds from 8 5/8% senior subordinated notes, used to retire the 11 1/8% and 10 1/8% notes.

On March 15, 2002, the company entered into an amended and restated credit agreement of $650.0 million, including a $400.0 million revolver and a $250.0 million term loan. Management estimates 2002 capital expenditures of $175 to $200 million and expects cash flow from operations and borrowings to fund them. The company does not pay cash dividends and has a pending legal matter from 1997 arson fires at its South Brunswick, New Jersey facilities, which management does not believe will have a material adverse effect.

02—Key points

Key Highlights

  1. Total revenues rose 18.7% to $1,171.1 million in 2001, with internal revenue growth of 10.5%.
  2. Adjusted EBITDA increased to $302.2 million, or 25.8% of revenues, versus $257.0 million (26.1% of revenues) in 2000.
  3. Net loss widened to $44.1 million in 2001 from $27.8 million in 2000, reflecting interest expense of $134.7 million and depreciation and amortization of $153.6 million.
  4. Storage revenues, described as stable and recurring, were $694.5 million and have been about 60% of total revenues in each of the last five years.
  5. Total debt was $1,496.1 million at December 31, 2001, with 87.3% at fixed rates as of February 28, 2002.
  6. A new $650.0 million amended and restated credit agreement was entered into on March 15, 2002, replacing the prior facility.
  7. Goodwill amortization ends January 1, 2002 under SFAS 142, which management expects to increase 2002 operating income by about $59 million, subject to possible impairment charges.

03—Questions

Frequently Asked Questions

  1. How did Iron Mountain perform financially in 2001?

    Revenues grew 18.7% to $1,171.1 million and Adjusted EBITDA grew 17.6% to $302.2 million. However, the company posted a net loss of $44.1 million, compared with a $27.8 million loss in 2000, largely due to interest, depreciation, amortization, other expense and an extraordinary debt-retirement charge.

  2. Why does the company report net losses despite growing EBITDA?

    Management attributes the losses in part to growth-related charges: depreciation from storage capacity and systems, goodwill amortization from acquisitions before July 1, 2001, interest on acquisition borrowings, merger-related expenses, foreign currency losses, and extraordinary charges from early extinguishment of debt in 2001.

  3. What changes in accounting could affect 2002 results?

    Under SFAS 142, goodwill is no longer amortized beginning January 1, 2002, which the company expects to increase 2002 operating income by approximately $59 million. Goodwill will be tested for impairment, and any impairment could be recorded as a cumulative effect of an accounting change.

  4. How is the company funding its operations and growth?

    Cash flow from operations ($160.9 million in 2001) and borrowings are the main sources. The company issued $435 million of 8 5/8% notes in 2001 and entered a $650.0 million credit agreement in March 2002. Estimated 2002 capital expenditures are $175 to $200 million, excluding acquisitions and digital services.

  5. What legal risks does the filing disclose?

    Customers and their insurers have sued over records destroyed or damaged in March 1997 arson fires at the South Brunswick Township, New Jersey facilities. The company denies liability and management does not believe the outcome will have a material adverse effect on its financial condition or results of operations, though this cannot be assured.

04—Continue

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