Exhibit 99.1
IRON MOUNTAIN INCORPORATED REPORTS FIRST QUARTER 2005 FINANCIAL RESULTS
-- Total Revenues are $501 Million, Up 16%
-- Operating Income is $91 Million
-- Net Income is $0.17 per Diluted Share
BOSTON, April 28 /PRNewswire-FirstCall/ -- Iron Mountain Incorporated
(NYSE: IRM), the leader in records management and data protection services,
today announced its financial results for the quarter ended March 31, 2005,
reporting higher revenues, operating income and OIBDA. Net income for the
quarter was $0.17 per diluted share.
Iron Mountain's total consolidated revenues for the quarter ended March
31, 2005 grew to $501 million, an increase of 16% compared to the quarter
ended March 31, 2004. For the quarter, storage revenues grew 15% and service
revenues grew 17% compared to the same period in 2004. Storage revenues,
which are considered a key performance indicator for the records management
and data protection services industry, are largely recurring since customers
typically retain their records for many years. This marks the 65th
consecutive quarter for which the Company has reported increased storage
revenues.
For the first quarter of 2005, the storage and service revenue internal
growth rates were 8% and 3%, respectively, yielding a total internal revenue
growth rate of 6%. The total core storage and services revenue internal growth
rate was 8% for the quarter.
Richard Reese, the Company's Chairman and CEO, stated, "Our business
performed well in the first quarter. We exceeded several of our financial
targets and the internal growth and margin dynamics played out as we indicated
they would. Storage internal growth remained solidly within the 8% to 9%
range we have operated in for the past three years and the inclusion of the
Hays IMS and Connected acquisitions into our internal growth calculus dampened
our internal growth rates, particularly complementary services, as expected."
Reese went on to say, "Our margins were as we projected and the business
continues to perform as expected."
Operating income before depreciation and amortization ("OIBDA") was $136
million, or 27.1% of revenues, for the quarter ended March 31, 2005 compared
to $123 million, or 28.4% of revenues, for the quarter ended March 31, 2004.
See Appendix A at the end of this press release for a discussion of OIBDA and
the required reconciliation to the appropriate GAAP measures.
Operating income for the first quarter of 2005 was $91 million, or 18% of
revenues, compared to $86 million, or 20% of revenues, for the same period in
2004. Net income for the quarter was $23 million, or $0.17 per diluted share,
flat compared to $23 million, or $0.18 per diluted share, for the same period
in 2004. All per share amounts have been adjusted to reflect the three-for-
two stock split, effected in the form of a dividend, paid on June 30, 2004.
Included in net income for the first quarter of 2005 is $5 million, or
$0.02 per diluted share, of other expense, net comprised primarily of foreign
currency related net losses due to the weakening of the British Pound
Sterling, the Canadian Dollar and the Euro. The comparable number for the
first quarter of 2004 is $2 million, or $0.01 per diluted share, of other
expense, net comprised almost entirely of charges for the early extinguishment
of debt related to the Company's first quarter 2004 refinancing activities.
In line with its strategy, Iron Mountain made selected acquisitions,
opportunistically buying attractive businesses that provide a strong platform
for future growth by expanding the Company's geographic footprint and
information management product offerings and enhancing its existing
operations. Since the end of 2004, the Company has completed five secure
shredding acquisitions for approximately $14 million in cash and the purchase
of minority interests in two of our Latin American subsidiaries for total
consideration of approximately $19 million in cash.
Financial Performance Outlook
The following statements are based on current expectations and do not
include the potential impact of any future acquisitions. These statements are
forward-looking, and actual results may differ materially. Please refer to
the cautionary language included in this press release when considering this
information. The Company undertakes no obligation to update this information
(dollars in millions):
Full Year Ending December 31, 2005
Quarter Ending -----------------------------------------
June 30, 2005 Previous Current
------------------- ------------------- -------------------
Low High Low High Low High
-------- -------- -------- -------- -------- --------
Revenues $ 497 $ 507 $ 1,970 $ 2,030 $ 1,980 $ 2,030
Operating Income 86 91 345 360 350 360
Depreciation &
Amortization ~46 180 185 180 185
Capital Expenditures 220 250 220 250
Iron Mountain's conference call to discuss the first quarter 2005 financial
results will be held today at 11:00 a.m. Eastern Time. In order to further
enhance the overall quality of its investor communications, the Company will
simulcast the conference call on its website at http://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 website and available for
real-time viewing. The slide presentation and replays of the conference call
will be available on the website for future reference.
About Iron Mountain
Iron Mountain Incorporated is the world's trusted partner for outsourced
records management and data protection services. Founded in 1951, the Company
has grown to service more than 235,000 customer accounts throughout the United
States, Canada, Europe and Latin America. Iron Mountain offers records
management services for both physical and digital media, disaster recovery
support services, and consulting - services that help businesses save money
and manage risks associated with legal and regulatory compliance, protection
of vital information, and business continuity challenges. For more
information, visit http://www.ironmountain.com.
Certain Important Factors
This press release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 and federal
securities laws, and is subject to the safe-harbor created by such Act.
Forward-looking statements include our second quarter and full year 2005
financial performance outlook and statements regarding our goals, beliefs,
future growth strategies, objectives, plans or current expectations. These
statements involve known and unknown risks, uncertainties and other factors
that may cause the actual results to be materially different from those
contemplated in the forward-looking statements. Such factors include, but are
not limited to: (i) changes in customer preferences and demand for the
Company's services; (ii) changes in the price for the Company's services
relative to the cost of providing such services; (iii) in the various digital
businesses in which the Company is engaged, capital and technical requirements
will be beyond the Company's means, markets for the Company's services will be
less robust than anticipated, or competition will be more intense than
anticipated; (iv) the Company's ability or inability to complete acquisitions
on satisfactory terms and to integrate acquired companies efficiently; (v) the
cost and availability of financing for contemplated growth; (vi) business
partners upon which the Company depends for technical assistance or management
and acquisition expertise outside the United States will not perform as
anticipated; (vii) changes in the political and economic environments in the
countries in which the Company's international subsidiaries operate; and
(viii) other trends in competitive or economic conditions affecting Iron
Mountain's financial condition or results of operations not presently
contemplated. Iron Mountain undertakes no obligation to release publicly the
result of any revision to these forward-looking statements that may be made to
reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.
NOTE: Condensed Consolidated Financial Statements of Iron Mountain
Incorporated follow.
Iron Mountain Incorporated
Condensed Consolidated Statements of Operations
(Amounts in Thousands except Per Share Data)
(Unaudited)
Three Months Ended
March 31,
---------------------------
2004 2005
------------ ------------
Revenues:
Storage $ 248,595 $ 285,355
Service and Storage Material Sales 185,327 216,051
Total Revenues 433,922 501,406
Operating Expenses:
Cost of Sales (Excluding Depreciation) 198,310 230,628
Selling, General and Administrative 112,460 135,340
Depreciation and Amortization 37,280 44,546
Loss (Gain) on Disposal / Writedown
of Property, Plant and Equipment, Net 120 (218)
Total Operating Expenses 348,170 410,296
Operating Income 85,752 91,110
Interest Expense, Net 43,459 45,806
Other Expense, Net 2,270 4,663
Income Before Provision for Income
Taxes and Minority Interest 40,023 40,641
Provision for Income Taxes 16,550 17,236
Minority Interest in Earnings of Subsidiaries, Net 476 456
Net Income $ 22,997 $ 22,949
Net Income Per Share -- Basic $ 0.18 $ 0.18
Net Income Per Share -- Diluted $ 0.18 $ 0.17
Weighted Average Common Shares Outstanding
- -- Basic 128,558 129,981
Weighted Average Common Shares Outstanding
- -- Diluted 130,766 131,517
Operating Income before Depreciation
and Amortization $ 123,032 $ 135,656
Iron Mountain Incorporated
Condensed Consolidated Balance Sheets
(Amounts in Thousands)
(Unaudited)
December 31, March 31,
2004 2005
------------ ------------
ASSETS
Current Assets:
Cash and Cash Equivalents $ 31,942 $ 28,776
Accounts Receivable (less allowances
of $13,886 and
$14,680, respectively) 354,434 376,866
Other Current Assets 114,778 106,682
Total Current Assets 501,154 512,324
Property, Plant and Equipment:
Property, Plant and Equipment at Cost 2,266,839 2,329,697
Less: Accumulated Depreciation (617,043) (655,731)
Property, Plant and Equipment, net 1,649,796 1,673,966
Other Assets:
Goodwill, net 2,040,217 2,062,167
Other Non-current Assets, net 251,220 259,473
Total Other Assets 2,291,437 2,321,640
Total Assets $ 4,442,387 $ 4,507,930
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current Portion of Long-term Debt $ 39,435 $ 50,887
Other Current Liabilities 476,028 482,196
Total Current Liabilities 515,463 533,083
Long-term Debt, Net of Current Portion 2,438,587 2,448,526
Other Long-term Liabilities 256,724 265,980
Minority Interests 13,045 4,873
Shareholders' Equity 1,218,568 1,255,468
Total Liabilities and Shareholders' Equity $ 4,442,387 $ 4,507,930
APPENDIX A
Operating Income Before Depreciation and Amortization
The Company uses Operating Income Before Depreciation and Amortization
("OIBDA"), an integral part of its planning and reporting systems, to evaluate
the operating performance of the consolidated business. As such, the Company
believes OIBDA provides current and potential investors with relevant and
useful information regarding its ability to grow revenues faster than
operating expenses. Additionally, the Company uses multiples of current and
projected OIBDA in conjunction with its discounted cash flow models to
determine its overall enterprise valuation and to evaluate acquisition
targets. OIBDA is not a measurement of financial performance under accounting
principles generally accepted in the United States, or GAAP, and should not be
considered as a substitute for operating or net income or cash flows from
operating activities (as determined in accordance with GAAP).
Following is a reconciliation of operating income before depreciation and
amortization to operating income and net income (in millions):
Three Months Ended
March 31,
---------------------------
2004 2005
------------ ------------
OIBDA (Operating Income Before Depreciation
and Amortization) $ 123 $ 136
Less: Depreciation and Amortization 37 45
Operating Income $ 86 $ 91
Less: Interest Expense, net 43 46
Other Expense, net 2 5
Provision for Income Taxes 17 17
Minority Interest -- --
Net Income (1) $ 23 $ 23
Major Components of Other Expense, net:
Foreign Exchange Effects $ -- $ 5
Debt Extinguishment Charges $ 2 $ --
(1) Columns may not foot due to rounding.
Contact:
Stephen P. Golden
Director of Investor Relations
617-535-4799
SOURCE Iron Mountain Incorporated
-0- 04/28/2005
/CONTACT: Stephen P. Golden, Director of Investor Relations of Iron
Mountain, +1-617-535-4799/
/Web site: http://www.ironmountain.com/