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Iron Mountain 8-K Report, Financial Results (May 2, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed May 2, 2024
Period End
May 2, 2024
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 · Mar ’20Mar ’20
  3. Material agreement8-K · Mar ’22Mar ’22
  4. Material agreement8-K · Jun ’26Jun ’26

01—Abstract

Summary

Summary of the 8-K filed May 2, 2024. Cited figures are marked; the original filing is the authoritative source.

Iron Mountain Incorporated reported first-quarter 2024 results that its CEO, William L.

Meaney, described as producing all-time record Revenue and a record first-quarter Adjusted EBITDA. Total revenues were $1.48 billiona ($1,476,863 thousand), up 12.4% from $1.31 billion a year earlier, with storage rental revenue up 9.2% and service revenue up 17.4%. Net income was $77.0 million, and net income attributable to Iron Mountain was $74.1 million, or $0.25 per diluted share, compared with $0.22 a year earlier.

Adjusted EBITDA was $518.9 millionb, up 12.6%, with an Adjusted EBITDA margin of 35.1%. AFFO was $323.7 million, up 9.6%, and AFFO per share was $1.10 versus $1.01. The company reaffirmed its full-year 2024 guidance, calling for total revenue of $6,000 to $6,150 million, Adjusted EBITDA of $2,175 to $2,225 million, AFFO of $1,300 to $1,335 million, and AFFO per share of $4.39 to $4.51.

Management noted an incremental foreign exchange headwind of about $50 millionc to revenue and about $20 million to Adjusted EBITDA for the full year at current rates, which it absorbed while maintaining guidance. For the second quarter, the company expects revenue of about $1.5 billion, Adjusted EBITDA of about $535 million, AFFO of about $310 million, and AFFO per share of about $1.05. The board declared a quarterly cash dividend of $0.65 per share, payable July 5, 2024.

The balance sheet and data center business were also highlighted. Quarter-end net lease-adjusted leverage was 5.1x, which the company described as the lowest level in a decade, with about $2.0 billiond of liquidity and about 76% of debt at fixed rates.

Iron Mountain leased 30 megawatts of data center capacity in the quarter, bringing leasable megawatts to 261.4 and total leased percentage to 94.0%. Long-term debt, net of current portion, rose to $12.59 billion from $11.81 billion at year-end 2023.

02—Key points

Key Highlights

  1. Record quarterly revenue of $1,476.9 million, up 12.4% year over year; storage rental revenue rose 9.2% and service revenue rose 17.4%.
  2. Adjusted EBITDA of $518.9 million, up 12.6%, with an Adjusted EBITDA margin of 35.1%.
  3. AFFO of $323.7 million, up 9.6%, and AFFO per share of $1.10 versus $1.01 a year earlier.
  4. Net income attributable to Iron Mountain of $74.1 million, or $0.25 per diluted share, versus $0.22 a year earlier; Adjusted EPS was $0.43 versus $0.42.
  5. Full-year 2024 guidance reaffirmed: revenue of $6,000 to $6,150 million, Adjusted EBITDA of $2,175 to $2,225 million, AFFO of $1,300 to $1,335 million, and AFFO per share of $4.39 to $4.51.
  6. Second-quarter outlook: revenue of about $1.5 billion, Adjusted EBITDA of about $535 million, AFFO of about $310 million, and AFFO per share of about $1.05.
  7. Quarterly dividend of $0.65 per share declared, payable July 5, 2024 to holders of record on June 17, 2024; net lease-adjusted leverage of 5.1x and about $2.0 billion of liquidity.

03—Questions

Frequently Asked Questions

  1. Did Iron Mountain change its full-year 2024 outlook?

    No. The company affirmed its full-year 2024 guidance, with total revenue of $6,000 to $6,150 million, Adjusted EBITDA of $2,175 to $2,225 million, AFFO of $1,300 to $1,335 million, and AFFO per share of $4.39 to $4.51. It noted an incremental foreign exchange headwind at current rates of about $25 million to revenue and about $10 million to Adjusted EBITDA for the remainder of the year, or about $50 million and $20 million for the full year, which it said it reaffirmed guidance despite.

  2. How did revenue and profitability trend in the first quarter?

    Total revenues were $1,476.9 million, up 12.4% from $1,314.3 million a year earlier. Net income was $77.0 million, compared with $65.5 million, and net income attributable to Iron Mountain was $74.1 million, compared with $64.6 million. Adjusted EBITDA was $518.9 million, up 12.6%.

  3. What does the filing say about the data center business?

    The company leased 30 megawatts of data center capacity in the first quarter, with 261.4 leasable megawatts and a total leased percentage of 94.0%. The filing also lists data center growth capital expenditures of $276.6 million in the quarter.

  4. What is the company's balance sheet and dividend position?

    Net lease-adjusted leverage was 5.1x at quarter end, which the company described as remaining at the lowest level in a decade, and it had about $2.0 billion of liquidity. About 76% of debt was fixed rate, with a 5.7% weighted average interest rate and a 5.7-year weighted average maturity. The board declared a quarterly dividend of $0.65 per share.

04—Continue

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