IRM - Earnings call transcript Q4 2020 | Iron Mountain Incorporated

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Operator

Good morning and welcome to the Iron Mountain Fourth Quarter 2020 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions]. Please note that this event is being recorded. I would now like to turn the conference over to Greer Aviv, Senior Vice President of Investor Relations. ahead. go Please

Greer Aviv

Good XXXX Andrew. welcome our to Thank conference morning call. quarter earnings fourth you, and

We the have Relations Investor provided user-controlled slides our on website.

and be to also the earnings webcast will materials. We providing today's link

across we accelerated about today how by our data Q&A. Today's transformation had our up a our the commitment and to in performance better the statements Hytinen, CFO. organization, will continue increasing our materials number We are key and pandemic, expectations. navigated joined Bill are earnings initiatives. have how President the to and to and open forward-looking momentum prepared EVP to business, and plan resulting we Project sustainability lines and we statements, understand messages on will including successfully including Summit inclusion Meaney, COVID-XX we Today of XXXX how other the Barry center CEO, for our share how contain longer-term diversity execute our and you we here After help remarks and

a Report major As results Form statements cause to Slide to Please in uncertainties. forward-looking X and those language earnings our are our actual Safe to you statements. risk today's and factors Annual forward-looking that risks refer materials, for on the subject XX-K the all discussion our know, of Harbor on could differ from

non-GAAP use we several when measures presenting results. addition, In financial our

Reg as that by measures We Bill, begin? these please, G our have you supplemental included reconciliations the information. would required in financial With to

Bill Meaney

time and for the join to us. you all Greer, you, thank Thank taking

and are you hope Let well. saying and me I by families safe your start

minutes near quarter COVID, year our had remaining manage going. been where growth to few has As to from been we which to reflect a on close we've marked record we're and want where a headwinds where by to take we first I out delivering year,

employees, their to priority. are maintain vaccines optimistic the our will customers families similar fight of to the in our of first believe to continue to want out safety COVID-XX XXXX landscape. and terms that look in of economic Whilst acknowledge we pause making that have, I and albeit reverse we XXXX, positive impact of the our First, and the macro we roll we continue will

where XXXX also out resiliency pandemic. managed we responded terms to of the was crisis, we COVID-XX fellow the much was manage However, I by to a couldn't the of world year the didn't which of mountaineers be there phrase, proud our creativity way came us. more celebrate, teams. demonstrated crisis a and around the my the In in

$XXX million million growth $XXX already in continue with we our where crisis, throughout to million We XX% to than depths the increased sustained focus the run $XXX on targeted annual accelerated an We our Project end remained rate serve of XX.X We on XXXX. and annual from our cost in where achieved of our open. megawatts announced center, savings customers facilities of new our have maintained more Summit, the megawatts leases in versus XX.X XXXX XXXX. by over of data

most with see our through We growth our X%, of products Summit shifting solutions in to tune culture be accelerating workforces. accounts revenue our FX. our new our our services in investment for on solutions. and development value focus to continued new This one growth in protecting focus services what we continued in us supported of to unlocking to maintained has more and as responsible of excluding organic be X% of trusted XXXX, These innovation of highest matters customers organizations, in focus organization global ways. and allowed in most And innovation, our part on them to COVID digital the year-on-year in the spite product supporting offerings partner customers' X% on strategic of the customer in investment our our continue decade. past revenue level to is a our our with XXX,XXX service to returns base by growth and led to new to guide customers purpose innovative from of in growth This significant and remote socially expanding good Project in

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phrase, hands their up to for need example, during more illustrate means in mean XX when If In processing data most. ways of our to in for fuel for continue. is growth. who benefits the needs what next our expect that examples remote this laser workforce. needed to and was customer's allow of setting evidence know mailrooms the XXXX included digital the the came we and the with that We're in didn't to stay A customers were how seeing around crisis customers for a we responded they creative sense going of unemployment they helped have ever. it Some bottom-line people What how growth into company I growth the our we already them our me, out momentum focus new connected of will on globe a to get is by resilience momentum. all top minutes, XXXX. XXXX, In with few word this me stronger for that word you and than of centers, both to

with direct believe should we this in growth made seeing together have are records in growth also consumer growth solutions our engine. well of we an with we business, discussed in digital before, areas, durability a As as of commercial product revenue made and have storage, new continue. trajectory management we have changes coupled the result This physical investments our good as in expanding business, from continued the change both is

well uncover engage in opportunities, deriving doc One new strategic extra have our born services, customers made and much time for datacenter approach salespeople new to creating just fundamental This for to with us we physical visibility digital has physically changes additional time customers. for differently digitally. as have revenue of in greater commercial more our allowed is but and as the our data which invested not both with value for that storage data more from customers, provides both we

the also all their the as we yes, our journey. XXXX, digital last its have and As and our customers partner their provided our our today physical accelerating integrating gives is customers a more as but as as who, seen transformation result, see well manages own protects from guidance value, a well unlocking you can digital to information, company both by as key more performance year their assets, for and

physical the of don't, our value more that them index, drive the helping for what assets transformation. insights customers business more We now they protection storing across need, offered customers' and and digital securely we've govern years, information unearth and most. disposing XX catalog, complete what manage For and domains,

highly service storage small protection ECM SITAD, business, steroids or Think or of for disposition attacks. and and explore storage for gapped growth against now opportunities see content ahead management effective as secure opportunities and secure we or ransom growth electronic as or platform include exciting arts air content consumer some us. secure Let's of ourselves IT unlock great storage, where we These greater fine data to and areas our position are this medium customers offline asset entertainment services, centers, on data for value cost a CSP.

a our for or our a at data Web little works. XX addressable go fast-growing total bit of And global In per center, and XX% couple growing through retail XX% these have three an Indian segment. about entry Let's areas. over over our a will and built across $XX agreement customers announced market is investment the platform in data very into we operating colocation globally which the market strong XXXX. The facilities centers billion for continents since into closed, once just hyperscale mark with detail more we is

billion stories art both roughly market look $X and together. at fine it's you If services, entertainment for a

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has we course over business SITAD of of $XX this in market have an XXXX. Our growth and seen billion, strong business the addressable

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Let that. put some me context around

back look you addressable and the If total in markets average we was low growth competed billion rates. had $XX on market to XXXX, those

and to Over the last yes expertise and as market addressable five compete in listened the customers, years, billion, is products solutions, $XX developed new we over billion. we've now $XX built

XX% and a Additionally, expertise in services those organic developed that at growth are rate. products growing we've

only not rates, services So growth times, expanded but areas addressable industry eight facilitate has these which market double-digit over by entry. grown the helps have for new our

outperformance and review gears throughout the by navigated shift At the been mountaineers strength expectations storage of and basis XXXX more were Throughout to and that COVID-XX. leading the internal laser fourth the grew couldn't quarters performance on rental own our on X.X% a resulted nearly now briefly three could, brought XXXX. we me our we in challenging in quarter environment constant in which level, and pleased This the focused a in with have pandemic, our execution way high Let revenue, X% those total on continued against currency controlling organically. through XXXX. factors last we

revenue the many total being margin thank globe due revenue down the distractions. when so growth, our basis declines adjusting in-spite XXX points XXXX. EBITDA continue our currency. expanded service solid in phase obvious who And of adjusted I service focused to This offset to to all declines. we teams grew in $XXX activity million of storage for a the While stayed want X.X% across

reflection as at of have importantly, our dedication each the I a other is inspired from and and looked after by mental been most COVID, the the physical at way success threats health work teams both our navigated home. they Our and both mountaineer's the of

in storage business. to organic third compared X.X was this adjacent to our businesses, a flat similar cubic in management consumer to the a by now global million Contributing physical decrease was increase quarter. foot and Total Turning records information and essentially volume volume. offset

year, environment is the full be global operating. slightly considering For was we volume good we to flat volume This the were outcome total up. flat, total to expect year, in organic organic which which a global

X.X specifically million volume, this organic down at was feet cubic Looking RIM sequentially. more

Global business revenue I back We excluding business declined solutions goes the expect grew digital the in year, actually In For see were the XXXX, revenue Digital our earlier. our million volume XXXX This to organic a we X% and in mentioned our to exceed service to different $XXX mindset team X.X%. the Despite going acceleration year-over-year, full pandemic, grow further revenue. able in year. Solutions FX. into for

quarter. to now Data the the Turning phenomenal a our segment, year. quarter Global Blowing had of leasing after targets Center its team out water,

had the business, our our very the year, We our diverse increase in bookings, should XXXX, enterprise deployments. than us not data XX XX megawatts. during to XX to want success of broad a the megawatts attracted megawatts. represented I of was XX% network XX core Frankfurt. and strengthen our more to XX We commercial target underscore to Remember, was colocation just ecosystem excluding For and leased to which of of coming more new close our full retail momentum into of customers. that enable the adding This or good than our logos we XX result that hyperscalers. XXXX to center leasing our platform base megawatts stickiness to XXXX

terms a our XXX. had centers commissioned year busy a megawatts of in XX leasable to and geographies, with more also than across We data multiple development, megawatts increasing

to in customer megawatts. we Our and leasable XXXX, XXX meet ahead the demand where right see pipeline for the team ensure are capacity we year adding right actively excited robust to of development the markets to opportunities we the expect is us our with to in over have end we

further opportunities is new One our into data of center fast-growing those expanding footprint markets.

earlier center largest to market a with is we coming telecommunications As strategic reach entering India grow in second mentioned and closed announced India Delhi. JV projected is in including Mumbai, would an our the India morning, agreement rapidly in world. Werks, into which data market once I this and expand the Web to for Pune years the The

excited emerging early is the is and are mover an market the be an We supply demand high into low. where to

reflecting XXXX, EBITDA generated and This consistent most of execution strong Summit. Project our actions our to in an $XXX significantly benefits estimates over annual adjusted savings actions million on Turning us a with We of $XX recent rate of swift - ahead decisive and million of gives in expectations initial initiatives. heading million exit of activity early $XXX into XXXX.

to from As enhance track will for our more this as fully we and benefits detail, excited and are Barry you will in tangible $XXX hear we we are million year the experience estimated EBITDA technology year the recognize processes. adjusted we of this on to continue benefiting

carbon being of emissions to goal provide reduction about to Before to detail were I ambitious little We XXX approved our wrap to XXXX we up, earlier. by Paris XX% more commitment the more Accord. an goal like doubled by Climate I'd XXXX, corporations the one our our our XX% sooner a reported cut with carbon science-based a years than continued worldwide so six that have than aligned the referenced commitment. was targets Already or in I cut reduction first initiatives delivering as

As most we intensive growing whilst global the in energy industries center this, business, one data did the world. our of

XXX% COVID energy as well for green the neutrality area building customers having and is can in pass renewable we meet kind flex data of pass our a spite this in the for benefits headwinds I've and never consumption our solution other to due and history service and about continued power customers based as sustainability rapidly of at work. customers. the over our growing to more This allows pandemic. of innovation proud collaboration been anticipated introduced went course we traditional any in organization to before that And to our impacting teams muscle our opportunities we how our never change data center our I'd to are in for energy upon us business. and the their as of behaved we summarize, continue through carbon tools above its center around We of beyond more even how To platform confident the growth We the XXX% well XXXX, optimistic with achieve our momentum new an embraced areas. time to them We're been a the XXXX use to targets. our first

you this day-out. the call on all excited with I that, Our I'm mountaineers our over and I'll values wait and journey can't together. lived the be to to truly turn Barry. day-in future see With to

Barry Hytinen

discuss you performance our macro our metrics. a financial for fourth us And team year results. key quarter joining environment, thank our full across In solid to of challenging Thanks delivered Bill. and each

basis For organic reflecting includes X grew history. Despite margin point basis, X.X% which the organic levels. foreign in Organic revenue full impact year, more adjusted revenue the On than EBITDA X.X% $X.XX activity year-on-year COVID revenue storage to X.X% on billion our continued Summit XX.X% driven macro EBITDA declined service by a X.X%. total the representing the rental reported a the on management, a and basis, XXX of performance with $X.X team's from margin headwinds, basis progress declined revenue impact Project of currency company's or strong XXX Total revenue exchange. constant best revenue points billion. XX.X% expanded increased Reflecting points management. the declined

X.X% see per for million a expand to $X.XX basis. we share $XXX profitability on opportunity to to continue AFFO increased Importantly, overtime. or

to your presentation. XX into of earnings go more I Before our detail, draw me Slide let attention

comparability the This both measures are We To of current on ventures, our from have prior the of feedback and portion consensus comparable provided we results how for to stock-based unconsolidated methodology difficult compensation we some that our measures former by to some will have changes course, to non-GAAP a of non-GAAP investment the refinements growth transparency, appears. compare spurred and and new ensure includes account to our made be community method capital. estimates.

For billion. and which More current detail example, XXXX billion former full the is website. in under compares EBITDA our our to Relations our adjusted $X.XX $X.XXX methodology, was on Investor consensus of slides available year earnings

our our of definitions. to business. increase impacts a new quarter higher we projections basis, point Overall, our mix driven Fourth revenue share declined for On and exceeded on from with revenue EBITDA XX.X%. billion management were declined Total Total former definition, and our the by COVID the revenue $X.X which management. as Summit and includes service $XXX X.X% quarter that revenue call deferred on declined to updated to storage on basis than offset a XX X.X% and in recurring better declines transformation, both exchange. we in in shared service service per $XXX to both reflecting are favorable X.X%. driven AFFO on improvement impact which an last turning revenue planned. $X.XX revenue Organic reflects revenue basis reported the in trends. based Now, by million modest organic organic year storage CapEx fourth prior results in we million cash moderate foreign AFFO our trends quarter our the a service or taxes. had projections. reflects was the earlier with been continue was see line Adjusted rental non-GAAP under EBITDA grew progress

business versus our levels in in quarter, in driven the moderating revenue an growing total our at $X revenue global offset storage strong fastest This the adjusted in net and X.X%. organic fourth paper growth business, and shred year our was to the had to revenue a declines revenue albeit of earlier EBITDA. markets million to leading management. decline by decline by compared volume In year in performance, service RIM segment Turning growth last in X% in reduction resulted price combination tonnage lower of

XXXX. paper prices EBITDA While of there's step in the anticipate will recent low. in in in slightly up slight levels, been headwind a remained paper result January, recycled have index $XX prices At we over million prices

adjusted by our pleased with business meaningful more continued we as storage customers. fourth appropriate to Summit. consumer margin see we we momentum expanded a fixed storage We are the are contributor level ensure basis management fully driven to volume EBITDA revenue support to our to points the growth. overall XX in becomes Global In our physical and deleverage staffed RIM Project the quarter, it continue cost as

in had global we over facility full a prior expense in two came We bookings numbers the for also as had business, a look Taking maintenance invested at our that megawatts. we at step delayed quarters. headline in center year XX.X up data

Excluding X% building bookings year-over-year. lease grew we revenue Frankfurt, representing in Total megawatts the XX%. of XX.X growth leased full

We XXXX, which than are improving pleased continue for performance as state our range well to as at We the success. visibility In bookings feel the trajectory, perspective have at to prior revenue colocation. least revenue. annual center would hyperscale good approaching to the result With the our XX year year and a We strong year pipeline, expect of our commercial growth growth. strong in we in about with good midpoint of data XX from low see both and more mid-teens. bookings, XX% to thanks full core double-digits expect the project to megawatts, we to retail our

expect in the as of the XXXX and beyond. quarter commence bookings the quarter rates to quarter, For our the second first similar bulk we growth fourth

Summit. Project to Turning

a which XXXX. million, million delivered of we expect we As of reminder, total $XXX in $XXX benefits program

$XXX in We expect million an XXXX with balance XXXX. in additional the benefit

$XX quarter, of EBITDA delivered This team the adjusted million benefit.

$XXX to the million full of capital million development. XXXX, year to our million, consisting expectations. $XXX As approximately we to center to quarter be line In data we $XXX in we $XXX plan $XXX total capital expenditures, of CapEx, invested expenditures bringing million, million of the to allocate approximately growth with which in fourth approximately prior expect

We CapEx. recurring of million expect $XXX

the venture recycling. data the program approximately fourth which we joint Frankfurt capital center last $XXX includes quarter mentioned proceeds, of to generated our In Turning million quarter.

the generated announced effectively On long-term XX investable we portfolio year, among recycling up program of transaction freed renewal a call cap opportunity industrial out slightly sale neutral $XXX in approximately multiple options, favorable rate sold the compelling initial was leverage of a facilities $XXX control a facilities sold approximately an leaseback This monetize XX-year of a capital full which to I our redeploy that generating capital net make intend including small the For $XXX proceeds. growing plan while a million. our to million. our end December, to business. below industrial these so faster we like assets, This was X.X%. investments to data for basis, owned of portfolio portion into of at proceeds us gross other we areas, transaction million lease center balance our maintaining in debt the reflects XXXX through these with terms. this We year would

continue With recycling. million recycle the pipeline of center backdrop market In our are XXXX, strong for favorable are to data $XXX development we assets. highly planning we planning industrial and to

of investible would the Pro excluding leverage end at Turning $X end, times XXXX. we down year slightly year from times had net at X.X the balance liquidity. leverage We times. from forma with sheet, billion leaseback, of X.X have the to proceeds year ended approximately been lease adjusted our X.X under

As we are X.X to we before, have to of said times. range leverage X.X our long-term committed

our early $X.XX to XXXX, of per to financial near paid end of range position, a high quarterly expect our declared For April. Board end. Directors year strong in With the we the our within target be share dividend

before, said dividend fully we have As we sustainable level. at committed the to our are

AFFO. of target long-term a payout for as to ratio mid Our low percentage is XXs

improved to strength our as reflecting you business, the are guidance visibility. for financial give outlook our of reinstitute XXXX, our to team's more strong we details to execution Now, pleased and

For $X.XXX expect of full we year billion. XXXX, the revenue $X.XXX billion to currently

X%. At of guidance guidance and growth EBITDA be to range revenue EBITDA of points about implies the $X.XXX this a margin midpoint, in our EBITDA midpoint, adjusted billion expect $X.XXX year-on-year. We X% the of of represents growth basis billion. improvement to XX At

growth $X.XX range expect X% share. in $XXX $XXX We At midpoint, to the per AFFO or be for both million the to this $X.XX million metrics. of to represents

XXXX. will physical be in Our as majority the guidance note and assumes be of nearly by management those to actions been taken I benefit end you And place quarter. already slightly Revenue speak a be the we them of global flat the positive. have significant will of in to volume will all will today,

we a slight solutions, strong service seeing digital mentioned, for Bill a recovery are with in As we our combined trends in the in year. activity planning continuation are the across

and is EBITDA, for In Summit step include up terms benefits from COVID line a sale from from our a the rent our Partially cost as innovation Project management offsetting driven as expectations in transactions prudent those outlook savings. inflation, growth, discretion, top and spend. benefit of revenue well prior leaseback

feel quarter in we quarterly to felt the share to for up into the well fourth has On am operator, our with open been helpful pandemic, last the would from We we move that adjusted guide EBITDA our first revenue well. XXXX. positioned confident it we several be Visibility line not ability Q&A. dollar with continue to is to the please to team's as strengthening improving While and expectations expect the And do across typically momentum. and on we months. business the over our quarter. consistent for pipeline build is I the In our a results. basis, slightly summary, be team executing

Operator

[Operator Goldman begin of Sachs. Instructions] will from go We Please question-and-answer first The now the session. George question Tong ahead. comes

George Tong

Hi, thanks. Good morning.

these opportunities You five expect your to to from go-to markets to this you over data growth storage, highlighted evolve growth penetrate next fine disposition proportion asset years? what centers, three to strategy services. and the Can you revenue portfolio art, of market secure other growth and consumer IT describe

Bill Meaney

question. for thanks George. No, the Hi,

of which growth year the this the will around I think digital be I highlighted. services, most

its that as of said rate I into to continue relatively growth on last this I year acceleration But So, business. And we going see did the further X%, see we a year. SITAD, you'll small in service then portion two growth. give to scale, early of those those in institutions, idea of year-on-year we've combined this the to signed year order probably serve XX% contracts that some financial are said, global the about two in you

But on year So, expect you our if guiding range. it's that's It as the confidence business. just year, terms X% what more more we line it we means we'll to confidence that individual start X%. the of all take say the or gives it, over us that, midpoint But on much smaller in pretty you you to two, think growth top high start pieces And attractiveness segments. the levels next X% the forward the traditionally growth, line because and business. margin time, through basis. go parts more what driving of of not growth just guiding is us new but growth, through expansion, can can these of really next said over this what was of top on about those a that consolidated of is we bottom over line more and if gives It resiliency

George Tong

Very you. it. Thank helpful. Got

Operator

The comes Please Shlomo from go Rosenbaum next Stifel. of question ahead.

Shlomo Rosenbaum

Hey, core consistent Is parse maybe that a could XX% at is the business you're the be there going that's Thank me end little Barry, Hi. X% with storage? involved core businesses to in X% that growth. balance, assuming well? bit adjacent in any be in in line to words, the markets, as you. X% they're X% I the above it, X% When What roughly just to effects the would that seems look assumption revenue embedded to other get business is and for the pricing, the growth? versus the help growing organic you if

Barry Hytinen

guide, center, thanks as X%, expecting We're up, that's be Shlomo, at midpoint revenue slightly to the we're If the remarks question. a or to of total so kind over $XXX million mentioned, take Sure, I I little for mid-teens. data double-digits in over X% the the prepared approaching X%. is which

since to that. it projecting a call growth let's growth. plus million in of million we're RIM global pure business, small that amount FX $XX So, number, And total about you XXX on turning of a be of asked the then revenue

very Now, $XX X%, to that X% mentioned as closer for as of with normal little place I'd the say of adjacent year-over-year those of planning see we're to like continuing the the improve. businesses. continue the being levels been see I the add even with those to end the second the actions we million the COVID adjacent that and to bit see continue impact that's digital that up that's note entertainment continuing to we On row, the of services. recovery And little to experiencing to the our activity assuming for bit a nice in we've would anything quarter. expecting high in in prudent in as conservative revenue we're results vicinity business balance And will And management Bill you'd slight respect markets a trends. majority the prepared maybe businesses, service the But And slightly our as will volume as vast of flat out. for improving mentioned be be COVID certainly probably did remarks, underlying a end recover. to benefit. by very services volume. to we in to the out there? I which of business solutions, much Bill, roll quarter certainly We're a that, see

Bill Meaney

I covered it think, well. that

Barry Hytinen

of call so the X.X element it FX of only other Shlomo, banks in views, that in - in an be X, bank FX light the of total about on thanks projection something it'll forward question. is rates X for order terms are where to perspective, The add of I would from

Operator

comes The ahead. next with Please Nate Crossett go question from Berenberg.

Nate Crossett

good you the is platform it of the Two curious this questions, on could. guys how kind new about Hey, I will was if JV, quick much own? you How I'm specs I to long-term? come the would of And be morning. did and be much you willing overtime? where of question just a also opportunities how think capital recycle there'll curious, I on just portfolio your mentioned $XXX recycling? then million. industrial

Bill Meaney

for thanks So, questions the Nate.

that the Great on Web Werks question. morning. JV coming announced we this So,

for excited Hyderabad personally, that entry, very Chennai. I've years in quite for center, data many has mean, over the partner specifically they and to last a radar presence which looking to data times And roadmap India. the Werks, India, right how don't Delhi, Web know screen to the and about regions, I Bangalore, found some I center because Mumbai, three a already of we time. super key on expand three been been we're with good a So, have that it's and Pune, our

gives we because good very think a So, is which single really a not us location. platform, Delhi

strong the that, company, its chose of very entrepreneurial Werks of way, interconnects. we Web on that a built focus always and actually the terms first had why have team, In brothers they the is all telecommunications

that's business. In fact, how they started their

around the they business locations the they the built already So, They good extremely that ecosystem a that understand have. market we think actually and well.

million as we a a a megawatts we structured here three So, And for put overtime in be both we X locations, expansion. into they start about that today as basis is as but as capacity running well are that Brownfield land minority expansion. release is team. that actually will management effectively green on we're as out also our press buying field alluded $XXX sit we further build And have that to, as in we JV have way in the and announced expansion those the cost in

and to for lead team. over way can get the or you as that years us that think on then goes to entry, we So, will of a slight that X a the our basis, the three additional in it put money cost And premium have that be two that a management And to megawatts $XXX majority will in. ownership. million paid next

So, we'll the approaching, facility. a effectively down actual that is the to towards build cost slide cost

second market. running largest excited the in world, is Northern the it the telecommunications market and data of XX% we're So, It center India Virginia. probably really the about about has in

deal. build along footprint. we and and got the management market. So to very a part team expand it's a of just And comes truly a roadmap great a We've clear as fast-growing have Indian that

Barry Hytinen

question. Barry. the This for thanks is Nate, And

good And the attractive is the these as our development levels. we valuations of On highly and assets move recycling good as growing really a continue see The point, we invest at see data industrial assets together know, you think pipeline recycling is with is really center, it I for in industrial it's valuation. us in way to about faster of among opportunities. others, to terms increase

would of base. the that industrial asset purely the recycling kind in a this assumed be of So year of percent digit the plan we've mid-single level

- in a out terms on of going that got obviously and in in asset there. value is a of light So, prices we've base that continues what's to expand

over the I continue development would I afraid to that, pipeline, I annually, were And XXX. to little sides planning side, we opportunities on the this if as continue on the bad a something would recycle level, is at Thanks not to if see a industrial we're So question. bit you. planning for be even think to as also well in for plan we higher note opportunities the incremental in place level, but time, year, for not both

Operator

go Bank question of comes Please next Funk Michael with ahead. from America. The

Michael Funk

good Hi, you Yeah. for question. Thank I if the morning. A couple could.

might Wondering So, on the potential business first the wage, cost the that proposed being pushed impact thinking through. about with impact inflation of wage your how $XX savings? minimum

Bill Meaney

Thanks question, for Michael. the

an important a across of the staff, we've topic the say in inflation wage, at and just years or of of I minimum carriers, absent been our with in think even right, a for it's terms $XX environment, frontline I four competitive especially that, five e-commerce. would highly last wage boom our least

of for gratitude all able we've the their and wise have for similar of on to the And manage both tried for of has workers leadership whom Mexico, and minimum their monetarily country their during kind our of frontline our e-commerce the take the are not staff, depths us in being the churn personally terms as highly bigger well. quite connection that. the company, in of of a and of time had is crisis way I've mentally, also around health loyalty, is, managed and families the than and well been Europe less north jobs. speaking support our our we the the if just Most $XX us, pressure to of wage them to So, types temperature in traveling amount teams crisis, spent thing one an the issue. furlough frankly, said, pretty to as been The to fair appreciated. That the to issue many

I So, to by very after the driven just that the is the we but mountaineers each a and boom I wage it's in But more you're that remain other. e-commerce, still are minimum confident look point. think, by us inflation less good for driven it's mountaineers, referring really

Operator

of Evercore. comes Sheila next McGrath question The Please ahead. go from Instructions] [Operator

Sheila McGrath

data much just India We benefits cross-selling? answer that morning. can do I And of on And details more on center players. questions business Good Yes. provide makes that more the you pure competition you how Iron behind get versus Any play what Iron insights Mountain how there joint competes sometimes in Mountain question. wondering you if was competitive? the was venture? and

Bill Meaney

both questions. Sheila for thanks Okay,

to that my is, question guess says answer I competitive. this flippant your first, pretty I XX.X megawatts So think year we're first

team who have in. tell our dug I So, congrats to my really

Then I at but other another just what all companies. how we're I'll centers, from sales the folks thing think play leading I especially call center look that most compete, point. come data our our, data say is operation in would on is what if not proof pure if I would the side, these side also say you of the of

your And leasing good year the say signed, proof offering is point. megawatts success is, the it, right, almost leases of is measure I which you a our in XX.X so, and me this new can activity customers it's two - of think you buy not pretty do to dimensions. One

their who that would to who coming willing by bet is, their career you On field remarkable talent. in business attracting have in tier that people specialists top and focused the other a has center really, terms leads are to side to data the I livelihood are I and market say, done join job of say

that come And Now, accounts. you're our the still set traditional about more XX% sales into which our of the in terms now even more management secret is we you leads that's own up of force. alluded business, from and records between seeing the synergies that whole goes which sauce, strategic to,

data I along mean, So, me last out executive a go I strategic up two Barry I strategic opportunities. a about even not where and of could, center account account where to for don't were he before with the meeting global brought executive and Barry a data they speaking one account pulled of just executives. we're our strategic with week, number center we and I bank

the year, had installs. our institutions. connection, trusted XXth and decades, with Sachs decades trust likes people financial the the is So definitely colocation Goldman that And of have a why this service with us the the see their it's Suisse it's reason Credit we've of -

team factor. the trust definitely really to And be in great seems the traction getting So, a is the market. big

Operator

next Please go Suisse. of Kevin question ahead. The comes Credit McVeigh from

Kevin McVeigh

air Barry, thanks understand just at back and can in so EBITDA much. capital the if just help and changes you methodology the all, much based Great, how recapture us then on the JVs? EBITDA XXXX the stock-based at comp the growth fact

Barry Hytinen

of a a There's comp, I a will in EBITDA Kevin. is through couple have grant. element From the lot year-to-year go thanks, material very of similar. like performance most an note, in we companies, our things. stock but Sure, let our standpoint, deck, slide me

So, grants it's is conceivable that performance depending those go higher lower. upon where could or

be So, modestly up that I year-on-year. very to for be would planning

it performing two the higher On joint year-on-year how that things ownership, is ventures, better our know, as loss is [Indiscernible] as there in a to it there's our but consumer the you EBITDA, plan, business impacts as we venture relates position. a where have while still

And we own be before, as lease commences ramps that'll mentioned we starts venture at the And up as So headwind. joint where you and on then that lease. we'll over midyear time more the client a the as bit into add know. gets about Frankfurt XX%, of little a the

fairly is So similar that, slight portion ventures I would unconsolidated the say year-on-year, improvement.

from you impact similar very would there's EPS XXXX adding AFFO see in note the than add less And the the an already we comp. net-to-EBITDA, to FFO back since to flow similarly then EBITDA. were stock that and you'll back there EBITDA documents. of level standpoint, So, that

the I no And change level. unconsolidated same capital the joint has portion the that And essentially AFFO. growth to mentioned is at venture. of already So

a Good digit unlike question. XXXX. benefit million-dollar single in AFFO kind again the Thanks for what we of year-on-year, not of back question. had to add an So, high

Operator

comes next question, Fargo. from The ahead. go of Eric Wells Luebchow Please

Eric Luebchow

that, or organic that storage volume be physical expected think Hey, taking year. close range you said be like questions. Bill, I thanks XX and you'll this growth about to COVID would post points so volume basis for the pretty seems

and pandemic that impact there to the you kind you way the to of business? result seen year once still some get beyond boxes any less the to talked right that, declines or have impact about from those think point? then a business decline And So, we incoming this to is the of is that Or COVID? in about still last have related this as more normalized year the Thanks.

Bill Meaney

Yeah, cubic And I went is XXXX. in in remarks feet that I'd the would last based I think we consumer to million first say, from X success had of that, that part feet in that, we've yes. my mentioned question is on say your is year, million recovery I X in cubic to

incoming previously, growing maybe on words, our second action. getting. I slower some still boxes. are calls the seen all can terms new to still But customers historically, virtually sending I continuing what through verticals pre-COVID. the and I In few in volume, you for At the that that them have In a other of see a going we year of at was acceleration But call derivative in can ago, an see think send we saw this described sure point, similar rates. us largest headwind are no you we're haven't we seen almost fastest trends - and as a we we haven't what we're that supplemental, our

of kind drag call at in XX-year aging on derivative to So, normal we out coming continue second that I the see volume what than boxes slower their lifespan.

more what the business to continue same document of headwinds the to expect traditional pre-COVID So, I growth we offset would the than on by call side have in the consumer.

Operator

ahead. comes from Yee JPMorgan. Stephanie go Please question next The with

Stephanie Yee

office also I returned the up of levels? pick incoming to boxes, boxes would more? question just are work the boxes year, when pick as also in in about later up And to of you that, expect incoming you. people would had incoming people thank maybe pre-COVID pick back Hi, as to with kind the along constructions kind a up

Bill Meaney

marked is that the in story. again, not sharp will gradual out, think is it's office would you on - when I thanks things add I think I and going I storage But think don't people's That expect for the net the top story expect last be into then back transition would I those flat - actually think it's that. pricing a our I it, think but during Stephanie, a bad But that, than we to the mean, of expectation, change, a a trend. all. it of course because you right. the about basically year, don't is Hi, And two be question. be more our change if that you at

that think, in net what described I think So, we direction other probably they either reasonable I see I fairly a be, think, acceleration expectation, you don't each either but would But is of out. an closely will, trend.

Operator

Please John The next ahead. question comes from of RBC. Atkins go

John Atkins

much. very Thanks

preferred for seeing kind guess ventures when On to, general comes sale wanted suit path to on sponsors, to then few on question, markets when I versus have center on it outright joint the entering side, on just you're center new versus thoughts guess of a thoughts I versus a I acquisitions? peers, data financial you And sense thoughts on build leasebacks? a any data related do what just get - competition

Bill Meaney

Okay, is a thanks, there. John, for quite in bit the question

how the kind me or start think JVs So, use about about an of India we example. we as let

right X,XXX there on going a started center the India. the five times in. I pretty I comfortable actually people I a ago, Even management we couple finding years a to I little with country India, it's we're side think, more a years. less that year. least entry. five three in That's But at on say India So, than why, working actually have go specifically, records though is would data than a been focus years,

also it's right that but a in the physical also are a the Web market. it found the they we on. know it think that the sponsor, we're with entry, Indian we I footprint, team newbie for us, was for Web not build right is not just a not market that find So, important to opportunity or appreciate Werks we Werks, is financial from could And we standpoint, right a

journey. that supportive So, a their in that they we Culturally, India they tuned we're today. have of very in how the to see challenges operate already

Deutsche one process. we were in reasons build why way But we won relationship was operate. of the the the that, the ran this we Bank we able so I And with case, the entrepreneurs to the think and way

in entrepreneurs countries actually over number part to XX,XXX can had it's for We world these bring that customers, secret our case, them is that they bear. the particular lost so network And company we we capacity in that were and are is make that is we we the we can also that, that that So quite a of around to XX data of not this me center world, those were demand. connections. refusing for couldn't sauce then on India, mountaineers just around so asking frankly, deliver in a

hyperscaler you if the out think to suit, more broadly of with I the and hyperscale asset, data we up was suit large think players, reputation XX build build Frankfurt some because not kind center to off, as but we suit of announced as interesting it build needed a the as effectively, build had ended a our we to being on so that megawatts. started that whole

and day and one, at a turned it why more of that then returns. suit them. the us actually allows supports design satisfy look campus to but we the or starting joint the that, to the of we opportunities. reason of So, by quite completely campus to there's opportunity, engineering type we to The did, last are us more thing was frankly, one us also absolutely modified would If we stabilized just into That at haven't a more done look upgrade asset got you that approaching on be a further expand have, to it. back we venture put to that to capacity see structure build because out are it say to And any I pipeline. in bringing And is from build led will. that power if the this has more at entertain and the suit we it even point

that, of is there that, of about or whether really party was see suppliers is admitted the handful to as situation that we me third interesting when that needing the I one looks those on to customer does talking that he he's us Frankfurt not when what is capacity. he Now, execute

depend campus going kinds on are execute or starting to So, actually in we whether see opportunities, of on types just naturally returns not to opportunity. the them those is specific this of we really

Operator

earnings the today's This quarter Iron you concludes our and question-and-answer Mountain session fourth Thank for attending XXXX presentation. conference call.

may You disconnect. now

Iron Mountain (IRM) 24 Feb 212020 Q4 Earnings call transcript