01—Abstract
Summary
Summary of the 8-K filed August 1, 2024. Cited figures are marked; the original filing is the authoritative source.
Iron Mountain Incorporated (NYSE: IRM) reported second quarter 2024 results on August 1, 2024, with total revenues of $1,534.4 milliona, up 13.0% from $1,357.9 million in the second quarter of 2023, and a record Adjusted EBITDA of $544.4 million, up 14.4%.
Net income attributable to Iron Mountain was $35.8 millionb, or $0.12 per diluted share, compared with $0.1 million in the prior-year quarter. AFFO rose 11.8% to $320.9 million, and AFFO per share was $1.08 versus $0.98. Adjusted EPS was $0.42, compared with $0.40 a year earlier.
The company leased 66 megawatts of data center capacity in the quarter and raised its full-year 2024 leasing projection to 130 megawatts. Management affirmed full-year 2024 guidance and now expects results toward the upper end of its ranges: total revenue of $6.00 to $6.15 billionc, Adjusted EBITDA of $2.175 to $2.225 billion, AFFO of $1.300 to $1.335 billion, and AFFO per share of $4.39 to $4.51. The board declared a third-quarter dividend of $0.715 per share, a 10% increase, payable October 3, 2024, to holders of record on September 16, 2024.
As of June 30, 2024, the balance sheet showed total long-term debt of $12.81 billiond, cash of $144.3 million, and total (deficit) equity of ($132.7) million. The company cited $2.3 billion of liquidity, 80% fixed-rate debt, a 5.7% weighted average interest rate, and quarter-end net lease-adjusted leverage of 5.0x, the lowest level since before its 2014 REIT conversion.
02—Key points
Key Highlights
- Total revenues of $1,534.4 million rose 13.0% year over year, with storage rental revenue up 10.7% and service revenue up 16.6%.
- Adjusted EBITDA reached a record $544.4 million, up 14.4%, with Adjusted EBITDA margin of 35.5% versus 35.0% a year earlier.
- Net income attributable to Iron Mountain was $35.8 million, or $0.12 per diluted share, versus $0.1 million in Q2 2023; adjusted EPS was $0.42.
- AFFO increased 11.8% to $320.9 million, and AFFO per share rose to $1.08 from $0.98.
- Data center leasing totaled 66 megawatts in the quarter, and the full-year 2024 leasing projection was raised to 130 megawatts.
- Full-year 2024 guidance was affirmed, and results are now expected toward the upper end of the ranges for all metrics.
- The quarterly dividend was raised 10% to $0.715 per share, payable October 3, 2024.
03—Questions
Frequently Asked Questions
How did Iron Mountain perform in the second quarter of 2024?
Total revenues were $1,534.4 million, up 13.0% from the prior year. Adjusted EBITDA was a record $544.4 million, up 14.4%, and AFFO was $320.9 million, up 11.8%. Net income attributable to Iron Mountain was $35.8 million, or $0.12 per diluted share.
What is the company's updated outlook for 2024?
Iron Mountain affirmed its full-year 2024 guidance of $6.00 to $6.15 billion in total revenue, $2.175 to $2.225 billion in Adjusted EBITDA, $1.300 to $1.335 billion in AFFO, and $4.39 to $4.51 in AFFO per share. It now expects results toward the upper end of these ranges.
What is happening with the dividend?
The board declared a quarterly cash dividend of $0.715 per share for the third quarter, an increase of 10%. It is payable October 3, 2024, to shareholders of record on September 16, 2024.
How is the data center business progressing?
The company leased 66 megawatts in the second quarter and 97 megawatts in the first half of 2024. It raised its full-year leasing projection to 130 megawatts, and the filing reports 265.7 megawatts of leasable capacity at quarter-end.
What does the balance sheet look like?
As of June 30, 2024, long-term debt net of current portion was $12.81 billion and cash was $144.3 million. Total (deficit) equity was ($132.7) million. The company cited $2.3 billion of liquidity, 80% fixed-rate debt, and net lease-adjusted leverage of 5.0x.
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