Iron Mountain Reports Third Quarter 2009 Financial Results

Posted on Oct 30, 2009 in Records Management News

http://www.reuters.com/article/pressRelease/idUS107209+29-Oct-2009+BW2009102 9

BOSTON–(Business Wire)– Iron Moun­tain Incor­po­rated (NYSE: IRM), the global leader in infor­ma­tion pro­tec­tion and stor­age ser­vices, today reported its finan­cial results for the third quar­ter ended Sep­tem­ber 30, 2009. The Com­pany announced reported oper­at­ing income and oper­at­ing income before depre­ci­a­tion and amor­ti­za­tion (OIBDA) growth of 5% and 6%, respec­tively, com­pared to the third quar­ter of 2008 (see Appen­dix B). OIBDA growth was 10% on a con­stant cur­rency basis. These results were dri­ven by con­tin­ued focus on sus­tain­able oper­at­ing improve­ments and sup­ported by stor­age rev­enue inter­nal growth of 7%, which more than off­set fore­casted weak­ness in ser­vice inter­nal rev­enue growth. Incor­po­rat­ing its solid oper­at­ing per­for­mance, the Com­pany raised its full year OIBDA and cash flow out­look and refined its rev­enue out­look to reflect year-to-date results. Backed by increased cash flows from oper­a­tions, con­trolled cap­i­tal expen­di­tures, and recent financ­ing activ­i­ties, Iron Moun­tain ended the quar­ter with greater liq­uid­ity com­prised of cash and avail­abil­ity under its revolv­ing credit facil­ity of more than $1 billion.

“Iron Moun­tain is a resilient, diver­si­fied busi­ness that con­tin­ues to post solid results,” said Bob Bren­nan, Pres­i­dent and CEO. “We have a strong foun­da­tion upon which we are build­ing long-term growth plat­forms. Our dis­ci­plined man­age­ment approach con­tin­ues to drive solid profit per­for­mance through improved exe­cu­tion and is serv­ing us par­tic­u­larly well in this chal­leng­ing econ­omy. We are on track to deliver solid full year results in 2009.”

Iron Moun­tain reported total inter­nal rev­enue growth of 2% in the third quar­ter com­pared to the prior year period sup­ported by stor­age rev­enue inter­nal growth of 7%. Solid stor­age rev­enue inter­nal growth in the North Amer­i­can Phys­i­cal and Inter­na­tional Phys­i­cal busi­ness seg­ments off­set eco­nomic pres­sures on dig­i­tal rev­enues and activity-based ser­vice rev­enues related to the han­dling and trans­porta­tion of items in stor­age and secure shred­ding. As expected, com­ple­men­tary ser­vice rev­enues decreased year-over-year, due pri­mar­ily to lower recy­cled paper prices and soft­ness in the more dis­cre­tionary rev­enues, such as project rev­enues and ful­fill­ment ser­vices. OIBDA of $224 mil­lion for the quar­ter was sup­ported by higher gross profit mar­gins. Included in OIBDA for the third quar­ter is a ben­e­fit of $5 mil­lion result­ing from cer­tain vehi­cle leases being clas­si­fied as cap­i­tal leases in 2009. These leases pre­vi­ously met the require­ments to be con­sid­ered oper­at­ing leases. The year-over-year weak­en­ing of major for­eign cur­ren­cies against the U.S. dol­lar reduced reported growth rates by approx­i­mately 4% com­pared to the third quar­ter of 2008. See the appen­dices at the end of this press release for Selected Finan­cial Data, a dis­cus­sion of non-GAAP mea­sures and addi­tional infor­ma­tion regard­ing the Company‘s results.

Net income attrib­ut­able to Iron Moun­tain Incor­po­rated (see Appen­dix A) for the quar­ter was $43 mil­lion, or $0.21 per diluted share, dri­ven by higher oper­at­ing income and reduced other expense, net com­pared to the same prior year period. The effec­tive tax rate for the third quar­ter was impacted by net for­eign cur­rency gains and the asso­ci­ated tax expense and sev­eral dis­crete tax items that decreased earn­ings by $0.03 per diluted share.

Read more here http://www.reuters.com/article/pressRelease/idUS107209+29-Oct-2009+BW2009102 9

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