01—Abstract
Summary
Summary of the 10-K filed February 24, 2022. Cited figures are marked; the original filing is the authoritative source.
Iron Mountain Incorporated, a Delaware corporation and REIT, reported total revenues of $4,491,531 thousanda ($4.49 billion) for 2021, up from $4,147,270 thousand in 2020, and Adjusted EBITDA of $1,634,699 thousand, up 10.8% from $1,475,721 thousand, with Adjusted EBITDA Margin rising to 36.4% from 35.6%.
Income from continuing operations was $452,725 thousandb, compared with $343,096 thousand in 2020. The company states that all Project Summit activities were completed in 2021, with approximately $375.0 million in annual Adjusted EBITDA benefits exiting 2021 and roughly $450.0 million of cumulative Restructuring Charges since the program began. The Global RIM Business remains the largest segment, with 2021 segment revenue of $3,976,163 thousand and segment Adjusted EBITDA of $1,734,227 thousand.
The Global Data Center Business grew segment revenue to $326,898 thousandc, and management reported approximately 89% of data center capacity leased as of December 31, 2021, with 177 MW of leasable capacity and an additional 427 MW under construction or held for development. Cash flow from operating activities declined to $758,902 thousand from $987,657 thousand, mainly due to working capital changes, while capital expenditures were $611,082 thousand. Total long-term debt was approximately $9.3 billion against stockholders' equity of $855,952 thousand attributable to Iron Mountain.
Looking ahead, the company expects revenue and Adjusted EBITDA growth to accelerate in 2022 and projects total capital expenditures of approximately $850.0 milliond for 2022. In January 2022 it acquired an approximately 80% interest in ITRenew for approximately $725.0 million, funded in part by $750.0 million of 5% Notes due 2032 issued in December 2021. The filing also discloses an ongoing OFAC voluntary disclosure matter related to limited dealings with designated entities, and management states that no material legal proceedings are pending.
02—Key points
Key Highlights
- Total revenues of $4.49 billion in 2021, up from $4.15 billion in 2020, with storage rental revenue of $2.87 billion and service revenue of $1.62 billion.
- Adjusted EBITDA of $1.63 billion, up 10.8%, with Adjusted EBITDA Margin of 36.4% versus 35.6% in 2020.
- Project Summit completed, with approximately $375.0 million in annual Adjusted EBITDA benefits exiting 2021 and about $450.0 million of Restructuring Charges incurred since inception.
- Global Data Center Business revenue of $326.9 million, with approximately 89% of data center capacity leased and 604 MW total potential capacity.
- Net income from continuing operations of $452.7 million, compared with $343.1 million in 2020, helped by $179.0 million gain on the IPM Divestment.
- Operating cash flow fell to $758.9 million from $987.7 million, driven primarily by a $266.0 million decrease in working capital cash.
- Expected 2022 capital expenditures of approximately $850.0 million and completion of the ITRenew acquisition for approximately $725.0 million in January 2022.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 24, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $4.49B$4.15B | +8.3% |
| SG&A Expenses | $1.02B$949.22M | +7.7% |
| Operating Expenses | $3.64B$3.21B | +13.2% |
| Operating Income | $854.17M$934.78M | −8.6% |
| Net Income | $450.22M$342.69M | +31.4% |
| EPS (Basic) | $1.56$1.19 | +31.1% |
| EPS (Diluted) | $1.55$1.19 | +30.3% |
| Shares Outstanding (Basic) | 289.46M288.18M | +0.4% |
| Shares Outstanding (Diluted) | 290.98M288.64M | +0.8% |
05—Questions
Frequently Asked Questions
How did Iron Mountain perform financially in 2021?
Revenues rose 8.3% to $4,491,531 thousand, Adjusted EBITDA rose 10.8% to $1,634,699 thousand, and income from continuing operations rose 32.0% to $452,725 thousand. Revenue growth was driven by storage rental revenue of $2,870,119 thousand and service revenue of $1,621,412 thousand.
What is the status of Project Summit?
The company states that all Project Summit activities were completed in 2021. It reports approximately $375.0 million in annual Adjusted EBITDA benefits, of which $165.0 million was delivered in 2020 and $160.0 million in 2021, with the remainder to come in 2022. Project Summit charges totaled approximately $450.0 million since inception.
What major transactions did the company complete or announce?
The company sold its Intellectual Property Management business for gross consideration of approximately $215.4 million, recording a gain of approximately $179.0 million. It acquired Information Fort for about $90.3 million and a Frankfurt data center for about $91.3 million. On January 25, 2022 it acquired an approximately 80% interest in ITRenew for approximately $725.0 million.
What is the company's debt and liquidity position?
Total long-term debt was approximately $9.3 billion at December 31, 2021, with about 90% of total debt fixed-rate. Cash and cash equivalents, including restricted cash, were $255.8 million. The Revolving Credit Facility had $1,747.0 million of maximum availability with no outstanding borrowings, and the company states it is in compliance with its financial covenants.
Are there any notable legal or regulatory matters?
The company reports an ongoing matter with the U.S. Treasury's Office of Foreign Assets Control involving limited storage services provided by a non-U.S. subsidiary to entities designated under Executive Order 13382 and a Government of Iran entity. The company submitted a Final Notice of Voluntary Disclosure in January 2021 and an Initial Notice regarding the destruction of an Entity's property in August 2021, and it continues to cooperate with OFAC. Management states that no material legal proceedings are pending.
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