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Iron Mountain Annual Report, Year Ended Dec 31, 2002

Filing Date
Filed March 21, 2003
Period End
December 31, 2002
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, 2003. Cited figures are marked; the original filing is the authoritative source.

Iron Mountain Incorporated's 10-K for fiscal 2002 describes the company as the leader in records and information management services (RIMS), serving more than half of the Fortune 500 with over 150,000 customer accounts across 81 U.S. markets and 47 markets outside the United States.

Total revenues were $1,318.5 milliona in 2002, up 11.2% from $1,185.7 million in 2001, driven by internal revenue growth of 9.5%. Net income rose to $58.3 million from a net loss of $44.1 million in 2001, and Adjusted EBITDA increased 20.4% to $363.9 million, or 27.6% of revenues. Storage revenues were $759.5 million, and the company reports that storage and core services represented approximately 85% of total revenues.

Cash flow from operations increased to $254.9 millionb in 2002 from $160.9 million in 2001. Capital expenditures were $197.0 million, and the company expects to invest between $190.0 million and $215.0 million in capital expenditures in 2003, excluding acquisitions. Long-term debt was $1,732.1 million at December 31, 2002, and the company describes itself as highly leveraged, with a bond leverage ratio of 4.8 (down from 5.2).

The company completed the integration of Pierce Leahy ahead of schedule in 2002 and is refinancing its debt, including a $100.0 millionc offering of 7 3/4% senior subordinated notes in December 2002 and an exchange of notes in March 2003. The filing also discloses ongoing litigation: claims related to the March 1997 South Brunswick, New Jersey fires, and proceedings involving former director J. Peter Pierce and competitor Sequedex.

Management does not believe these matters will have a material adverse effect on financial condition or results of operations, although outcomes cannot be predicted with certainty. The company also states it will no longer present Adjusted EBITDA in public filings after March 28, 2003.

02—Key points

Key Highlights

  1. Total revenues of $1,318.5 million in 2002, up 11.2% from $1,185.7 million in 2001, with internal revenue growth of 9.5%.
  2. Net income of $58.3 million in 2002 compared with a net loss of $44.1 million in 2001; diluted EPS of $0.68.
  3. Adjusted EBITDA of $363.9 million, or 27.6% of revenues, up 20.4% from $302.2 million in 2001.
  4. Operating cash flow rose to $254.9 million from $160.9 million; capex was $197.0 million, with 2003 capex guidance of $190.0 million to $215.0 million.
  5. Total debt of $1,732.1 million at year-end 2002; the company is highly leveraged with a bond leverage ratio of 4.8, versus a target range of 4.5 to 5.5.
  6. Storage revenues of $759.5 million (up 9.4%) and storage and core services about 85% of total revenues, supporting recurring revenue visibility.
  7. Ongoing litigation over the 1997 South Brunswick fires and Sequedex/Pierce proceedings, which management does not expect to have a material adverse effect.

03—Questions

Frequently Asked Questions

  1. How did Iron Mountain perform financially in 2002?

    Total revenues rose 11.2% to $1,318.5 million, and net income was $58.3 million, compared with a net loss of $44.1 million in 2001. Adjusted EBITDA increased 20.4% to $363.9 million, or 27.6% of revenues.

  2. How much debt does Iron Mountain carry and how leveraged is it?

    Long-term debt was $1,732.1 million at December 31, 2002. The company describes itself as highly leveraged, with a bond leverage ratio of 4.8 at year-end 2002, down from 5.2 in 2001, and a target range of 4.5 to 5.5.

  3. What are the company's capital spending plans?

    Capital expenditures were $197.0 million in 2002, and the company expects to invest between $190.0 million and $215.0 million in 2003, excluding potential acquisitions.

  4. Does Iron Mountain pay dividends?

    No. The Board intends to retain future earnings for business development and does not anticipate paying cash dividends in the foreseeable future. Some credit agreements and indentures limit dividends and stock repurchases.

  5. What legal risks does the company face?

    The company is defending claims from the March 1997 South Brunswick, New Jersey fires and proceedings involving former director J. Peter Pierce and competitor Sequedex. Management believes these will not have a material adverse effect on financial condition or results of operations, though outcomes cannot be predicted with certainty.

04—Continue

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