Exhibit 99.1
IRON MOUNTAIN INCORPORATED REPORTS FIRST QUARTER 2006 FINANCIAL RESULTS
- Total Revenues are $564 Million, Up 12%
- Operating Income is $92 Million
- OIBDA is $142 Million; 25.2% of Revenues
- Net Income is $0.20 per Diluted Share
BOSTON, May 2 /PRNewswire-FirstCall/ -- Iron Mountain Incorporated (NYSE:
IRM), the global leader in information protection and storage services, today
announced its financial results for the first quarter ended March 31, 2006,
reporting higher revenues, strong internal revenue growth and net income for the
quarter of $0.20 per diluted share.
Iron Mountain's total consolidated revenues for the quarter ended March 31,
2006 grew to $564 million, an increase of 12% compared to the quarter ended
March 31, 2005. For the quarter, storage revenues grew 12% and service revenues
grew 13% compared to the same period in 2005. 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 69th consecutive quarter for
which the Company has reported increased storage revenues.
For the first quarter of 2006, the storage and service revenue internal
growth rates were 10% and 8%, respectively, yielding a total internal revenue
growth rate of 10%. The total core storage and services revenue internal growth
rate was also 10% for the quarter.
Richard Reese, the Company's Chairman and CEO, stated, "Our business is
performing well led by strong revenue growth across all segments of our
business. We have accelerated our investment in overhead spending to expand our
position in the market for information protection and storage services, which is
impacting our near-term margins. The investments we are making today will
further enhance our ability to capture the tremendous market opportunity we see
before us."
Operating income before depreciation and amortization ("OIBDA") was $142
million, or 25.2% of revenues, for the quarter ended March 31, 2006 compared to
$136 million, or 27.1% of revenues, for the quarter ended March 31, 2005. 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 2006 was $92 million, or 16% of
revenues, compared to $91 million, or 18% of revenues, for the same period in
2005. Net income for the quarter was $27 million, or $0.20 per diluted share,
compared to $23 million, or $0.17 per diluted share, for the same period in
2005.
Included in net income for the quarter is $3 million, or $0.01 per diluted
share, of other income, net comprised of foreign currency related and other
non-operating net gains. The foreign currency related gains were due primarily
to the strengthening of the British Pound Sterling and the Euro partially offset
by a weakening of the Australian Dollar compared to December 31, 2005. Included
in net income for the quarter ended March 31, 2005, is $5 million, or $0.02 per
diluted share, of other expense, net comprised primarily of foreign currency
related net losses, due primarily to the weakening of the British Pound
Sterling, the Canadian Dollar and the Euro.
In line with its strategy, Iron Mountain acquires attractive businesses that
provide a strong platform for future growth by expanding the Company's
geographic footprint and information protection and storage service offerings
while enhancing its existing operations. Since year end, the Company has
completed three acquisitions, the buyout of minority interests in France and
Mexico and the acquisition of a minority position in an information protection
and storage business in Poland.
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, 2006
Quarter Ending --------------------------------------------
June 30, 2006 Previous Current
--------------------------- -------------------- --------------------
Low High Low High Low High
-------- -------- -------- -------- -------- --------
Revenues $ 565 $ 578 $ 2,240 $ 2,310 $ 2,270 $ 2,320
Operating Income 92 99 404 420 382 403
Depreciation &
Amortization ~52 206 210 208 212
Capital
Expenditures 300 355 320 360
Internal revenue
Growth 6% 9% 7% 9%
Iron Mountain's conference call to discuss the first quarter of 2006
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 (NYSE: IRM) helps organizations around the world
reduce the costs and risks associated with information protection and storage.
The Company offers comprehensive records management and data protection
solutions, along with the expertise and experience to address complex
information challenges such as rising storage costs, litigation, regulatory
compliance and disaster recovery. Founded in 1951, Iron Mountain is a trusted
partner to more than 90,000 corporate clients throughout North America, Europe,
Latin America and the Pacific Rim. For more information, visit the Company's Web
site at 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 2006 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 cost to comply with current and future
legislation or regulation relating to privacy issues; (v) the impact of
litigation that may arise in connection with incidents of inadvertent
disclosures of customers' confidential information; (vi) the Company's ability
or inability to complete acquisitions on satisfactory terms and to integrate
acquired companies efficiently; (vii) the cost and availability of financing for
contemplated growth; (viii) business partners upon which the Company depends for
technical assistance or management and acquisition expertise outside the United
States will not perform as anticipated; (ix) changes in the political and
economic environments in the countries in which the Company's international
subsidiaries operate; and (x) 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,
---------------------------
2005 2006
------------ ------------
Revenues:
Storage $ 285,355 $ 319,155
Service and Storage Material Sales 216,051 244,502
Total Revenues 501,406 563,657
Operating Expenses:
Cost of Sales (Excluding Depreciation) 230,628 262,368
Selling, General and Administrative 135,340 158,843
Depreciation and Amortization 44,546 49,848
(Gain) Loss on Disposal / Writedown
of Property, Plant and Equipment, Net (218) 163
Total Operating Expenses 410,296 471,222
Operating Income 91,110 92,435
Interest Expense, Net 45,806 46,578
Other Expense (Income), Net 4,663 (2,847)
Income Before Provision for Income Taxes
and Minority Interest 40,641 48,704
Provision for Income Taxes 17,236 20,971
Minority Interest in Earnings of
Subsidiaries, Net 456 460
Net Income $ 22,949 $ 27,273
Net Income Per Share - Basic $ 0.18 $ 0.21
Net Income Per Share - Diluted $ 0.17 $ 0.20
Weighted Average Common Shares
Outstanding - Basic 129,981 131,681
Weighted Average Common Shares
Outstanding - Diluted 131,517 133,313
Operating Income before Depreciation
and Amortization $ 135,656 $ 142,283
Iron Mountain Incorporated
Condensed Consolidated Balance Sheets
(Amounts in Thousands)
(Unaudited)
December 31, March 31,
2005 2006
------------ ------------
ASSETS
Current Assets:
Cash and Cash Equivalents $ 53,413 $ 42,552
Accounts Receivable (less allowances
of $14,522 and $13,366, respectively) 408,564 421,936
Other Current Assets 92,191 98,605
Total Current Assets 554,168 563,093
Property, Plant and Equipment:
Property, Plant and Equipment at Cost 2,556,880 2,627,264
Less: Accumulated Depreciation (775,614) (820,471)
Property, Plant and Equipment, net 1,781,266 1,806,793
Other Assets:
Goodwill, net 2,138,641 2,131,372
Other Non-current Assets, net 292,065 296,099
Total Other Assets 2,430,706 2,427,471
Total Assets $ 4,766,140 $ 4,797,357
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current Portion of Long-term Debt $ 25,905 $ 33,218
Other Current Liabilities 566,091 517,319
Total Current Liabilities 591,996 550,537
Long-term Debt, Net of Current Portion 2,503,526 2,531,267
Other Long-term Liabilities 294,622 308,832
Minority Interests 5,867 4,672
Stockholders' Equity 1,370,129 1,402,049
Total Liabilities and Stockholders' Equity $ 4,766,140 $ 4,797,357
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,
------------ ------------
2005 2006
------------ ------------
OIBDA (Operating Income Before Depreciation
and Amortization) (1) $ 136 $ 142
Less: Depreciation and Amortization 45 50
Operating Income (1) $ 91 $ 92
Less: Interest Expense, net 46 47
Other (Income) Expense, net 5 (3)
Provision for Income Taxes 17 21
Minority Interest 1 --
Net Income (1) $ 23 $ 27
Major Components of Other (Income) Expense, net:
Foreign Exchange Effects $ 5 $ (1)
(1) Columns may not foot due to rounding.
Contact: Stephen P. Golden
Director of Investor Relations
(617) 535-4799
SOURCE Iron Mountain Incorporated
-0- 05/02/2006
/CONTACT: Stephen P. Golden, Director of Investor Relations of Iron
Mountain Incorporated, +1-617-535-4799/
/Web site: http://www.ironmountain.com /
(IRM)