Why was the GAAP net result negative this quarter?

The filing shows Other Expense (Income), Net of $86,362 thousand, compared with $(16,271) thousand in the prior-year quarter. Management states that unfavorable changes in foreign currency exchange rates resulted in an approximate $76.0 million year-over-year impact to this line. Interest expense, net also rose to $186,067 thousand from $152,801 thousand, and restructuring and other transformation costs were $37,282 thousand.

What is the company's full-year 2024 outlook?

Iron Mountain affirmed its 2024 guidance: 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. The company said it is now on track to achieve the high end of these ranges, and its fourth-quarter outlook includes approximately $1,600 million of revenue, approximately $595 million of Adjusted EBITDA, approximately $358 million of AFFO, and approximately $1.21 of AFFO per share.

What dividend did the company declare?

The Board of Directors declared a quarterly cash dividend of $0.715 per share for the fourth quarter of 2024. It is payable January 7, 2025, to shareholders of record on December 16, 2024.

How is the data center business progressing?

The supplemental materials show leasable capacity of 364.7 MW at September 30, 2024, up from 225.2 MW a year earlier, with 98.7% of stabilized capacity leased and 96.8% of total capacity leased. Management noted leasing of 106 megawatts year to date and a projection of 130 megawatts for the full year.

IRM 8-K: Earnings & Results

Q: How did Iron Mountain perform financially in the third quarter of 2024?

Total revenue was $1,557,358 thousand, up 12.2% from $1,388,175 thousand a year earlier, and Adjusted EBITDA was $568,113 thousand, up 13.6%. The company reported a GAAP net loss attributable to Iron Mountain Incorporated of $(33,620) thousand, compared with net income of $91,043 thousand in the prior-year quarter, reflecting higher Other Expense (Income), Net of $86,362 thousand.

01—Abstract

Summary

Summary of the 8-K filed November 6, 2024. Cited figures are marked; the original filing is the authoritative source.

Iron Mountain Incorporated (NYSE: IRM) reported third quarter 2024 results on November 6, 2024, with total revenue of $1,557,358 thousand^a, up 12.2% from $1,388,175 thousand in the third quarter of 2023, and Adjusted EBITDA of $568,113 thousand, up 13.6%.

Storage rental revenue rose 9.0% to $935,701 thousand^b and service revenue rose 17.4% to $621,657 thousand. The company reported a net loss attributable to Iron Mountain Incorporated of $(33,620) thousand, or $(0.11) per diluted share, compared with net income of $91,043 thousand in the prior-year quarter. The filing states that Other Expense (Income), Net was $86,362 thousand, and management attributes an approximate $76.0 million year-over-year unfavorable impact to Other Expense (Income), Net from changes in foreign currency exchange rates.

On a non-GAAP basis, AFFO was $332,000 thousand^c, or $1.13 per share, compared with $301,201 thousand, or $1.02 per share, a year earlier. Adjusted EPS was $0.44 versus $0.45. Year-to-date, total revenue was $4,568,630 thousand, up 12.5%, and AFFO per share was $3.30, up 9.6%.

Iron Mountain affirmed its full-year 2024 guidance and now expects to be on track to reach the high end of its ranges, which include total revenue of $6,000 to $6,150 million^d, Adjusted EBITDA of $2,175 to $2,225 million, and AFFO of $1,300 to $1,335 million. The company also declared a quarterly cash dividend of $0.715 per share, payable January 7, 2025, to shareholders of record on December 16, 2024. The supplemental materials report 364.7 leasable megawatts in the data center business, 98.7% leased on a stabilized basis, and a net lease-adjusted leverage ratio of 5.0x.

02—Key points

Key Highlights

Total revenue of $1,557,358 thousand in Q3 2024, up 12.2% year over year; storage rental up 9.0% and service revenue up 17.4%.
Adjusted EBITDA of $568,113 thousand, up 13.6%, with Adjusted EBITDA margin of 36.5% versus 36.0% a year earlier.
Net loss attributable to Iron Mountain Incorporated of $(33,620) thousand, or $(0.11) per diluted share, versus net income of $91,043 thousand a year earlier; Other Expense (Income), Net was $86,362 thousand.
AFFO of $332,000 thousand, or $1.13 per share, up 10.2% in total; year-to-date AFFO per share of $3.30, up 9.6%.
Full-year 2024 guidance affirmed, with the company now expecting to be on track to achieve the high end of its ranges (Total Revenue $6,000 to $6,150 million; Adjusted EBITDA $2,175 to $2,225 million; AFFO $1,300 to $1,335 million).
Quarterly dividend of $0.715 per share declared, payable January 7, 2025, to holders of record on December 16, 2024.
Data center leasable capacity rose to 364.7 MW from 225.2 MW a year earlier, with 98.7% of stabilized capacity leased; net lease-adjusted leverage of 5.0x.

03—Questions

Frequently Asked Questions

How did Iron Mountain perform financially in the third quarter of 2024?
Total revenue was $1,557,358 thousand, up 12.2% from $1,388,175 thousand a year earlier, and Adjusted EBITDA was $568,113 thousand, up 13.6%. The company reported a GAAP net loss attributable to Iron Mountain Incorporated of $(33,620) thousand, compared with net income of $91,043 thousand in the prior-year quarter, reflecting higher Other Expense (Income), Net of $86,362 thousand.
Why was the GAAP net result negative this quarter?
The filing shows Other Expense (Income), Net of $86,362 thousand, compared with $(16,271) thousand in the prior-year quarter. Management states that unfavorable changes in foreign currency exchange rates resulted in an approximate $76.0 million year-over-year impact to this line. Interest expense, net also rose to $186,067 thousand from $152,801 thousand, and restructuring and other transformation costs were $37,282 thousand.
What is the company's full-year 2024 outlook?
Iron Mountain affirmed its 2024 guidance: 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. The company said it is now on track to achieve the high end of these ranges, and its fourth-quarter outlook includes approximately $1,600 million of revenue, approximately $595 million of Adjusted EBITDA, approximately $358 million of AFFO, and approximately $1.21 of AFFO per share.
What dividend did the company declare?
The Board of Directors declared a quarterly cash dividend of $0.715 per share for the fourth quarter of 2024. It is payable January 7, 2025, to shareholders of record on December 16, 2024.
How is the data center business progressing?
The supplemental materials show leasable capacity of 364.7 MW at September 30, 2024, up from 225.2 MW a year earlier, with 98.7% of stabilized capacity leased and 96.8% of total capacity leased. Management noted leasing of 106 megawatts year to date and a projection of 130 megawatts for the full year.

04—Continue

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