Cary McGovern Opinion of RIM Industry On RIMproReport Podcast

Posted on Jul 31, 2010 in Records Management News

Tom Adams New Show fea­tures Larry Juliano, Pres­i­dent and Founder of EMR in the Cloud talk­ing about the reseller oppor­tu­nity he has for RIM ser­vice providers.

http://rimproreport.com/

Then we talk to Cary McGov­ern about his per­spec­tive on the indus­try in 2010 and beyond. A great inter­view. Def­i­nitely worth your time.
You can lis­ten to the show on the show web­site or you can down­load the show and trans­fer it to your MP3 player or smart-phone to lis­ten at a later time.

Just point your browser to http://RIMproReport.com/

Option­ally you can search for the RIM­proRe­port in the iTunes store pod­cast area and sub­scribe so you can auto­mat­i­cally update your iDe­vices with the lat­est shows.
Finally, if you are doing me cool things in your records, destruc­tion, media vault or imag­ing busi­ness, I want to hear about it.

You can call me on the show hot-line at (858) 523‑8436 or just send me an email.
Next week we chat with Michael Ball of Data­S­tore in Mil­wau­kee about the inte­gra­tion of Share­point into their busi­ness. And as always, some other cool things too.
All for now. Enjoy the show and the week­end. We’ll be in touch next week.
Cheers!
Tom Adams

Com­pli­ments of Cary McGov­ern and Tom Adams
Pro­ducer & Host, RIMproReport

http://RIMproReport.com

How Paperless Are You?

Posted on Jul 31, 2010 in Records Management News

As I printed out an indus­try arti­cle on busi­ness records stor­age to read, I real­ized that I’m not doing my part in help­ing the com­pany go paper­less. Sure, we offer paper­less solu­tions, but it didn’t hit home how much paper I waste until read­ing AIIM’s report 8 Rea­sons You Need a Strat­egy for Man­ag­ing Infor­ma­tion – Before It’s Too Late (www. AIIM.org/8 things):

There are over 4 tril­lion paper doc­u­ments in the U.S., grow­ing at a rate of 22% per year

For 56% of orga­ni­za­tions, the vol­ume of paper records is increasing

The aver­age office worker uses 10,000 sheets of copy paper each year and wastes about 1,410 of these pages

With the aver­age cost of each wasted page being about six cents, a com­pany with 500 employ­ees could be spend­ing $42,000 per year on wasted prints
Then I looked around on my desk to see just exactly how much paper I use. From print­ing out arti­cles and proofs to Web pages and specs, I con­tribute to the waste. I guess I’m still so used to hav­ing impor­tant infor­ma­tion in my hands that I never stopped hit­ting the print but­ton. Now I have to get used to hav­ing that infor­ma­tion just on my desktop.

So as my com­pany helps tran­si­tion other orga­ni­za­tions to the paper­less future, I also have to do my part. I’ve already switched to paper­less state­ments and bills at home, but it’s time to do the same at work. Feel free to share your ideas for going paper­less as well.

For More Infor­ma­tion: http://blog.archivesystems.com/records-management-services/?&tag=business%20records%20storage

Craig Abram­son
Online Mar­ket­ing Man­ager
Archive Sys­tems, Inc.
Chang­ing the Way the World Man­ages Documents

Com­pli­ments of File­Man Research

Iron Mountain Reports Second Quarter 2010 Financial Results

Posted on Jul 29, 2010 in Records Management News

July 29, 2010, 6:00 a.m. EDT

Com­pany deliv­ers strong finan­cial per­for­mance high­lighted by an 8% increase in Adjusted OIBDA; Reported rev­enue growth is 5% for the quarter

BOSTON, Jul 29, 2010 (BUSINESS WIRE) — –Sec­ond quar­ter Adjusted EPS increases 13% to $0.28 per diluted share com­pared to Q2/2009; reported earn­ings are $0.20 per diluted share

–Com­pany main­tains full year 2010 profit growth out­look; adjusts rev­enue out­look to reflect for­eign cur­rency rate changes and con­sis­tent inter­nal growth trends

Iron Moun­tain Incor­po­rated (IRM 24.06, –1.39, –5.46%) , an infor­ma­tion man­age­ment com­pany, today reported its finan­cial results for the sec­ond quar­ter ended June 30, 2010. The Com­pany announced rev­enue, Adjusted OIBDA (defined below) and oper­at­ing income growth of 5%, 8% and 9%, respec­tively, com­pared to the sec­ond quar­ter of 2009 (see Appen­dix B). These results were sup­ported by con­tin­ued ben­e­fits from oper­a­tional improve­ment ini­tia­tives that drove sub­stan­tial gross mar­gin gains. Solid oper­at­ing profit gains and con­trolled cap­i­tal expen­di­tures drove $141 mil­lion of free cash flow before acqui­si­tions and dis­cre­tionary invest­ments (FCF) on a year-to-date basis (See Appen­dix B). The Com­pany main­tained its full-year 2010 out­look for profit growth and adjusted its rev­enue out­look to reflect the impacts of recent for­eign cur­rency exchange rate fluc­tu­a­tions and con­sis­tent inter­nal growth trends.

“Iron Moun­tain con­tin­ued to demon­strate the attrac­tive­ness of its busi­ness model by deliv­er­ing strong profit and cash flow per­for­mance despite macro­eco­nomic fac­tors that are con­strain­ing top line growth,” said Bob Bren­nan, pres­i­dent and CEO. “Oper­a­tionally, the busi­ness is run­ning very well, gen­er­at­ing the nec­es­sary resources to invest in our growth agenda and posi­tion­ing the Com­pany well to deliver con­sid­er­able incre­men­tal value when the econ­omy improves.”

Key Finan­cial High­lights — Q2 2010

Iron Moun­tain reported total con­sol­i­dated rev­enues of $780 mil­lion for the sec­ond quar­ter, a 5% increase over the prior year period, sup­ported by 2% total inter­nal rev­enue growth. Stor­age rev­enue inter­nal growth was con­sis­tent at 3%, with gains mod­er­ated by eco­nomic fac­tors, which have con­strained stor­age vol­ume growth in recent quar­ters. Total ser­vice rev­enues grew 1%, reflect­ing solid growth in com­ple­men­tary ser­vice rev­enues sup­ported by recent increases in recy­cled paper prices. Core ser­vice rev­enue growth was (1)% as a result of lower activ­ity lev­els caused by the weak econ­omy. The year-over-year strength­en­ing of major for­eign cur­ren­cies against the U.S. dol­lar increased the rev­enue growth rates by approx­i­mately 2% com­pared to the sec­ond quar­ter of 2009. This increase was less than orig­i­nally fore­casted due to the recent strength­en­ing of the U.S. dollar.

The Com­pany reported gross prof­its (exclud­ing depre­ci­a­tion and amor­ti­za­tion) of $471 mil­lion with its gross profit mar­gin improv­ing from 58.1% in the sec­ond quar­ter of 2009 to 60.4% in the sec­ond quar­ter of 2010. Sus­tain­able ben­e­fits from pro­duc­tiv­ity improve­ments and pric­ing gains, par­tic­u­larly in the Company’s North Amer­i­can and Inter­na­tional Phys­i­cal Busi­ness seg­ments drove higher stor­age and ser­vice gross margins.

Adjusted oper­at­ing income before depre­ci­a­tion and amor­ti­za­tion (Adjusted OIBDA) for the quar­ter was $236 mil­lion, up 8% on a reported basis com­pared to the sec­ond quar­ter of 2009. Exclud­ing the impacts of for­eign cur­rency rate changes, sec­ond quar­ter Adjusted OIBDA grew 7%. Sell­ing, gen­eral and admin­is­tra­tive costs in the sec­ond quar­ter were up 9% com­pared to the prior year period. Exclud­ing the impacts of the for­eign cur­rency rate changes, these over­head costs increased 8%, dri­ven by busi­ness growth, the acqui­si­tion of Mimosa Sys­tems, Inc. in Feb­ru­ary 2010 and invest­ments against growth ini­tia­tives. These increases were par­tially off­set by lower incen­tive com­pen­sa­tion expense.

Oper­at­ing income for the sec­ond quar­ter of 2010 was $150 mil­lion, up 9% on a reported basis com­pared to the same period in 2009 reflect­ing the Adjusted OIBDA gains described above.

Net income attrib­ut­able to Iron Moun­tain Incor­po­rated for the quar­ter was $41 mil­lion, or $0.20 per diluted share, com­pared to $88 mil­lion, or $0.43 per diluted share, for the sec­ond quar­ter of 2009. The decreased reported earn­ings were impacted by a higher effec­tive tax rate, reflect­ing the impact of dis­crete tax items and a $22 mil­lion decrease in Other Income due to for­eign cur­rency rate changes within the quar­ter, which more than off­set the higher oper­at­ing income in the sec­ond quar­ter of 2010 com­pared to the same prior year period. The struc­tural tax rate for the sec­ond quar­ter was 39%. The impact of dis­crete tax items, pri­mar­ily related to for­eign cur­rency rate changes, added another 15 per­cent­age points to the effec­tive tax rate in the quar­ter. Adjusted EPS for the quar­ter was $0.28 per diluted share, an increase of 13% com­pared to the same prior year period. (See Appen­dix B)

Net income for the sec­ond quar­ter of 2010 included $4 mil­lion of Other Expense com­pared to $18 mil­lion of Other Income included in net income for the sec­ond quar­ter of 2009. Both the $4 mil­lion of Other Expense and $18 mil­lion of Other Income reported in the sec­ond quar­ter of 2010 and 2009, respec­tively, were related to for­eign cur­rency rate changes.

Cap­i­tal expen­di­tures exclud­ing real estate incurred in the first six-months of 2010 totaled $103 mil­lion, or 6.6% of rev­enues. The Com­pany is sus­tain­ing cap­i­tal effi­ciency gains reflect­ing ongo­ing con­trol over spend­ing lev­els and ben­e­fits from mod­er­at­ing growth rates.

The Company’s FCF for the six months ended June 30, 2010 was $141 mil­lion com­pared to $121 mil­lion for the six months ended June 30, 2009. Higher oper­at­ing income in the first half of 2010 com­pared to the same prior year period drove the year-over-year increase in FCF. The Company’s liq­uid­ity posi­tion remains strong. As of June 30, 2010, the Com­pany had nearly $1.1 bil­lion of liq­uid­ity, includ­ing cash of $340 mil­lion and avail­abil­ity under its revolv­ing credit facil­ity of $750 mil­lion. The Company’s con­sol­i­dated lever­age ratio of net debt to EBITDA (as defined by its senior credit facil­ity) was 3.1 times at June 30, 2010. This ratio is well below the covenant lim­i­ta­tion of 5.5 times included in its senior credit facility.

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.

Div­i­dends and Share Repurchases

On June 4, 2010, the Com­pany announced that its board of direc­tors declared a quar­terly div­i­dend of $0.0625 per share for share­hold­ers of record as of June 25, 2010, which was paid on July 15, 2010. For the period April 1, 2010 to June 30, 2010, the Com­pany repur­chased 1.8 mil­lion shares of its com­mon stock for a total aggre­gate pur­chase price of approx­i­mately $44 mil­lion under its $150 mil­lion share repur­chase pro­gram. As of June 30, 2010, the Com­pany has repur­chased an aggre­gate of 2.2 mil­lion shares for a total cost of approx­i­mately $54 mil­lion leav­ing approx­i­mately $96 mil­lion in aggre­gate pur­chase price avail­able under the share repur­chase program.

Acqui­si­tions

Dur­ing the sec­ond quar­ter, as part of Iron Mountain’s efforts to expand its Euro­pean pres­ence, the Com­pany acquired full own­er­ship of its exist­ing minority-owned busi­ness in Greece. Iron Mountain’s acqui­si­tion strat­egy focuses on acquir­ing attrac­tive busi­nesses that pro­vide a solid plat­form for future growth, expand the Company’s geo­graphic foot­print and ser­vice offer­ings and enhance its exist­ing operations.

Finan­cial Per­for­mance Outlook

For 2010, the Com­pany is main­tain­ing its 2010 profit growth out­look. Expec­ta­tions for full year reported Adjusted OIBDA growth of 7% to 11% remain unchanged as do the expec­ta­tions for double-digit Adjusted EPS growth. With respect to rev­enues, the Com­pany adjusted its full year guid­ance to reflect for­eign cur­rency rate changes and con­sis­tent inter­nal growth trends. The recent year-over-year strength­en­ing of the U.S. dol­lar against the major cur­ren­cies is expected to decrease reported results by approx­i­mately 1% in the sec­ond half of 2010. Macro­eco­nomic trends have con­strained top line growth dur­ing the first half of 2010. It is expected that these trends will con­tinue for the bal­ance of the year con­strain­ing inter­nal rev­enue growth below the improved inter­nal growth range of 4% to 6% orig­i­nally tar­geted for 2010. The Com­pany now expects reported rev­enue growth to be in the range of 4% to 5% sup­ported by inter­nal growth of approx­i­mately 3%, con­sis­tent with recent trends, with acqui­si­tion rev­enues and the impact of year-over-year for­eign cur­rency rate changes adding between 1% and 2% to growth based on recent exchange rates. The Com­pany is low­er­ing its expected cap­i­tal expen­di­tures for the year to approx­i­mately $280 mil­lion reflect­ing refine­ments to its cap­i­tal spend­ing plans. The cal­cu­la­tion of Adjusted EPS assumes a 39% struc­tural tax rate and 204 mil­lion shares out­stand­ing. This guid­ance is based on cur­rent expec­ta­tions and does not include the poten­tial impact of any future acqui­si­tions (dol­lars in millions):

Quar­ter End­ing Year End­ing Full Year Out­look
Sep­tem­ber 30, 2010 Decem­ber 31, 2010 % Growth vs. 2009
—————— —————- ———————
Low High Low High As Reported FX Neu­tral
——— ——— ——– ——– ———– ———-
Rev­enues $ 780 $ 800 $3,120 $3,160 4% — 5% 3% — 4%
Oper­at­ing Income 149 159 583 613 6% — 12% 5% — 11%
Depre­ci­a­tion & Amor­ti­za­tion 87 347
Adjusted OIBDA 236 246 930 960 7% — 11% 6% — 10%
Adjusted EPS $1.07 $1.16 10% — 20%
Cap­i­tal Expen­di­tures 280

Iron Mountain’s con­fer­ence call to dis­cuss its sec­ond quar­ter 2010 finan­cial results and third quar­ter and full year 2010 out­look will be held today at 8:30 a.m. East­ern Time. The Com­pany will simul­cast the con­fer­ence call on its Web site at www.ironmountain.com, the con­tent of which is not part of this earn­ings release. A slide pre­sen­ta­tion pro­vid­ing sum­mary finan­cial and sta­tis­ti­cal infor­ma­tion that will be dis­cussed on the con­fer­ence call will also be posted to the Web site and avail­able for real-time view­ing. The slide pre­sen­ta­tion and replays of the con­fer­ence call will be avail­able on the Web site for future reference.

Read more: http://www.marketwatch.com/story/iron-mountain-reports-second-quarter-2010-financial-results-2010–07-29?reflink=MW_news_stmp

Com­pli­ments of File­Man Research

Miami Records Storage Bill Filed Under Past Due

Posted on Jul 27, 2010 in Records Management News

Yet another rea­son to go paper­less
By TODD WRIGHT
Updated 5:51 PM EDT, Mon, Jul 26, 2010
BUZZ UP!

It’s no secret the city of Miami is in pretty dire straits when it comes to cash, but when you are forced to fill out pub­lic records requests for your own records, it might be time to look at Chap­ter 11.

Accord­ing to the Miami Her­ald, thou­sands of boxes of records that belong to the city are being held hostage by a stor­age facil­ity in Broward County that claims it is owed over $340,000 in past due rent and other fees.

The records include every­thing from per­son­nel files to city meet­ing min­utes and agen­das in the 40,000 or so boxes col­lect­ing dust in Broward.

The city says it only owes $22,000 to Iron Moun­tain Infor­ma­tion Man­age­ment, which is cur­rently keep­ing a pad­lock on the records until Miami shows them the money.
The two sides had been doing busi­ness for about two years, but when the city decided to go with another com­pany, things got a bit messy. Think of all the stor­age fees that you have no clue what they mean and mul­ti­ply that by a city bud­get. It almost seems like the city is being charged per piece of paper at the facility.

The city attor­ney wants to take legal action against the stor­age com­pany, which could be an even taller moun­tain to climb as fees con­tinue to rise.

This dis­pute should speed up the process of going paper­less. More than likely the city won’t have a choice.

Read more here:   http://www.nbcmiami.com/news/local-beat/Dead-Beat-Storage-Miami-Records-Locked-Up–99252709.html

Com­pli­ments of File­Man Research

Will RIM Become Obsolte? a question from ARMAite Mark Mandel at Fri, 07/23/2010

Posted on Jul 25, 2010 in Records Management News

Records and Infor­ma­tion Man­age­ment (RIM), ERM, EDMS, ERMS, AIIM, ARMA … so many acronyms so much to do.

OK, so the ques­tion is, “Will the RIM Pro­fes­sion Become Obsolete?”.

Quick answer … NO!

Why because it sim­ply will morph just as it has over the centuries.

I once wrote an arti­cle about “The Tablet-less Palace”. It was a story about Abdul and his doc­u­ment repos­i­tory for the Pharaoh’s busi­ness records. Mostly trade car­a­vans with things from the east. He was metic­u­lous in his record keep­ing. He kept the clay tablets in alpha­bet­i­cal order by Camel Name.

One of assis­tants came in and said, “Abdul no longer will we need tablets” We have dis­cov­ered Papyrus, it can be rolled and stored more eas­ily and aren’t quite so heavy.

Abdul,said, “Not in my Tablet Room, I will never have such a thing”. Tablets are sturdy and will last forever.

And so as Abdul passed away and the future turned to parch­ment, paper, papyrus and other forms of scrolls. Later good ole Guten­berg was the big prob­lem … now the stuff came off the presses like never before.

Some­time back I think it was 1972 or so an arti­cle pre­dicted that we would be Paper­less soon.

It is nearly 2011 and there are 2 bil­lion boxes in stor­age and grow­ing at 10–13% a year. Yeah dig­i­tal is alive and the “Cloud” will be good if any­one can fig­ure out how to make it secure.

But then what’s next … sand, stone, papyrus, paper, print­ing press, dig­i­tal .. what’s next, eh … I sug­gest Holo­graphic Vapor.

So my answer is NO it will sim­ply MORPH and the keep­ers of it will moan and make noises through the change.

My opin­ion!

Cary McGov­ern
FileMan

Read more: http://www.linkedin.com/news?viewArticle=&articleID=157505112&gid=40713&type=member&item=25515535&articleURL=http://aiimcommunities.org/erm/blog/will-rim-profession-become-obsolete&urlhash=swP0&goback=.gde_40713_member_25515535