-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DXtVFJTTHXS80c7Nu5Wcod2TqHiDa1/Aj+cS5x5DCYwuq7DK+N0FlVRY/ie9MGjl cAWK+5N2PVuH/tuAEs5S/w== 0001275287-05-000795.txt : 20050302 0001275287-05-000795.hdr.sgml : 20050302 20050302094955 ACCESSION NUMBER: 0001275287-05-000795 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050302 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050302 DATE AS OF CHANGE: 20050302 FILER: COMPANY DATA: COMPANY CONFORMED NAME: IRON MOUNTAIN INC/PA CENTRAL INDEX KEY: 0001020569 STANDARD INDUSTRIAL CLASSIFICATION: PUBLIC WAREHOUSING & STORAGE [4220] IRS NUMBER: 232588479 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13045 FILM NUMBER: 05652503 BUSINESS ADDRESS: STREET 1: 745 ATLANTIC AVENUE CITY: BOSTON STATE: MA ZIP: 02111 BUSINESS PHONE: 6175354766 MAIL ADDRESS: STREET 1: 745 ATLANTIC AVENUE CITY: BOSTON STATE: MA ZIP: 02111 FORMER COMPANY: FORMER CONFORMED NAME: PIERCE LEAHY CORP DATE OF NAME CHANGE: 19960807 8-K 1 im2192.txt ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): MARCH 2, 2005 IRON MOUNTAIN INCORPORATED (Exact name of registrant as specified in its charter) PENNSYLVANIA (State or other jurisdiction of incorporation) 1-13045 23-2588479 (Commission File Number) (IRS Employer Identification No.) 745 Atlantic Avenue Boston, Massachusetts 02111 (Address of principal executive offices, including zip code) (617) 535-4766 (Registrant's telephone number, including area code) ================================================================================ ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On March 2, 2005, the Company issued a press release setting forth the Company's results of operations and financial condition for its fourth fiscal quarter and full fiscal year ended December 31, 2004. A copy of the Company's press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits 99.1 Press Release of Iron Mountain Incorporated dated March 2, 2005 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. IRON MOUNTAIN INCORPORATED (Registrant) By: /s/ Jean A. Bua --------------------------------------- Name: Jean A. Bua Title: Vice President and Corporate Controller Date: March 2, 2005 EX-99.1 2 im2192ex991.txt Exhibit 99.1 IRON MOUNTAIN INCORPORATED REPORTS FOURTH QUARTER 2004 FINANCIAL RESULTS * Total Revenues are $479 Million, Up 17% * Operating Income is $87 Million * OIBDA is $131 Million; 27.3% of Revenues * Net Income is $0.23 per Diluted Share BOSTON, March 2 /PRNewswire-FirstCall/ -- Iron Mountain Incorporated (NYSE: IRM), the leader in records and information management services, today announced its financial results for the year ended December 31, 2004 and reported higher revenues, operating income and OIBDA for the fourth quarter ended December 31, 2004. Net income for the quarter was $0.23 per diluted share. Iron Mountain's total consolidated revenues for the quarter ended December 31, 2004 grew to $479 million, an increase of 17% compared with the quarter ended December 31, 2003. For the quarter, storage revenues grew 15% and service revenues grew 21% compared to the same period in 2003. Storage revenues, which are considered a key performance indicator for the records and information management services industry, are largely recurring since customers typically retain their records for many years. This marks the 64th consecutive quarter for which the Company has reported increased storage revenues. For the fourth quarter of 2004, the storage and service revenue internal growth rates were 9% and 9%, respectively, yielding a total internal revenue growth rate of 9%. Richard Reese, the Company's Chairman and CEO, stated, "2004 was an important year for Iron Mountain. Financially we ended the year within or above all of our target ranges and strategically we made major strides in all of our major growth initiatives. We established ourselves as the largest North American provider of integrated shredding services, consolidated ownership of important international businesses in Europe and Latin America and, with the acquisition of Connected Corp. in November, became the leader in the management and protection of distributed data. In a year of significant expansion and transition, our sales force exceeded production expectations. We have built a tremendous organization, our value proposition is strengthening and our opportunities continue to grow. In 2005, we look forward to even greater effectiveness and efficiency from our selling organization and a sharper focus on execution throughout the entire Company as we profitably capture the tremendous opportunity we see before us." Operating income before depreciation and amortization ("OIBDA") was $131 million, or 27.3% of revenues, for the quarter ended December 31, 2004 compared to $124 million, or 30.3% of revenues, for the quarter ended December 31, 2003. 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 fourth quarter of 2004 was $87 million, or 18% of revenues, compared to $87 million, or 21% of revenues, for the same period in 2003. Net income for the quarter was $30 million, or $0.23 per diluted share, an increase of 5% from $28 million, or $0.22 per diluted share, for the same period in 2003. 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 fourth quarter of 2004 is $12 million, or $0.05 per diluted share, of other income, net comprised primarily of foreign currency related net gains due to the strengthening of the Euro and the Canadian Dollar. The net effect of the exchange rate fluctuations relative to the British Pound Sterling was less than $3 million due primarily to the implementation of the Company's hedging strategy relative to that currency. Included in net income for the fourth quarter of 2003 is $5 million, or $0.02 per diluted share, of other income, net comprised primarily of $11 million of foreign currency related net gains, due primarily to the strengthening of the Canadian Dollar and the British Pound Sterling, which was partially offset by $7 million of charges for the early extinguishment of debt related to the Company's 2003 refinancing activities. For the year ended December 31, 2004, the Company reported total consolidated revenues of $1.82 billion, an increase of 21%, with storage revenues growing at 19% and service revenues growing at 24% compared to the prior year. For the year, storage and service revenue internal growth rates were 9% and 6%, respectively, yielding a total internal revenue growth rate of 8%. OIBDA was $508 million, or 28.0% of revenues, for the year ended December 31, 2004 compared to $436 million, or 29.0% of revenues, for the year ended December 31, 2003. Operating income for 2004 was $344 million, or 19% of revenues, compared to $305 million, or 20% of revenues, for 2003. Net income was $94 million, or $0.72 per diluted share, for 2004, compared to $85 million, or $0.65 per diluted share, for 2003. Included in net income for 2004 is $8 million, or $0.04 per diluted share, of other income, net comprised primarily of $9 million of foreign currency related net gains, due primarily to the strengthening of the British Pound Sterling, the Euro and the Canadian Dollar, which was partially offset by $2 million of charges for the early extinguishment of debt related to the Company's 2004 refinancing activities. Included in net income for 2003 is $3 million, or $0.01 per diluted share, of other income, net comprised primarily of $30 million of foreign currency related net gains, due primarily to the strengthening of the Canadian Dollar offset by $28 million of charges for the early extinguishment of debt related to the Company's 2003 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 November 2004, the Company has completed four secure shredding acquisitions and the purchase of minority interests in two of our Latin American subsidiaries for total consideration of approximately $33 million in cash. The most significant fourth quarter 2004 transaction was the acquisition of Framingham, Massachusetts-based Connected Corporation for total consideration of approximately $109 million, net of cash acquired. The acquisition builds on Iron Mountain's mission to protect its customers' information and to protect its customers through compliant information management. Connected Corporation is a technology and market leader in the protection, archiving and recovery of distributed data. The transaction closed in early November. 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 ----------------------------------------- March 31, 2005 Previous Current ------------------- ------------------- ------------------- Low High Low High Low High -------- -------- -------- -------- -------- -------- Revenues $ 485 $ 495 $ 1,950 $ 2,020 $ 1,970 $ 2,030 Operating Income 78 85 341 360 345 360 Depreciation & Amortization ~45 179 185 180 185 Capital Expenditures 220 250 220 250
Iron Mountain's conference call to discuss the fourth quarter and full year 2004 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 and information management 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 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) the possibility that 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 Twelve Months Ended Ended December 31, December 31, --------------------------- --------------------------- 2003 2004 2003 2004 ------------ ------------ ------------ ------------ Revenues: Storage $ 240,262 $ 275,134 $ 875,035 $ 1,043,366 Service and Storage Material Sales 168,228 203,793 626,294 774,223 Total Revenues 408,490 478,927 1,501,329 1,817,589 Operating Expenses: Cost of Sales (Excluding Depreciation) 187,209 214,965 680,747 823,899 Selling, General and Administrative 98,264 132,790 383,641 486,246 Depreciation and Amortization 37,007 43,717 130,918 163,629 (Gain) Loss on Disposal / Writedown of Property, Plant and Equipment, Net (756) 579 1,130 (681) Total Operating Expenses 321,724 392,051 1,196,436 1,473,093 Operating Income 86,766 86,876 304,893 344,496 Interest Expense, Net 39,716 45,318 150,468 185,749 Other income, Net (4,925) (12,224) (2,564) (7,988) Income Before Provision for Income Taxes and Minority Interest 51,975 53,782 156,989 166,735 Provision for Income Taxes 22,095 22,906 66,730 69,574 Minority Interest in Earnings of Subsidiaries 1,454 989 5,622 2,970 Net Income $ 28,426 $ 29,887 $ 84,637 $ 94,191 Net Income Per Share - Basic $ 0.22 $ 0.23 $ 0.66 $ 0.73 Net Income Per Share - Diluted $ 0.22 $ 0.23 $ 0.65 $ 0.72 Weighted Average Common Shares Outstanding - Basic 128,151 129,532 127,901 129,083 Weighted Average Common Shares Outstanding - Diluted 130,205 131,537 130,077 131,176 Operating Income before Depreciation and Amortization $ 123,773 $ 130,593 $ 435,811 $ 508,125
Iron Mountain Incorporated Condensed Consolidated Balance Sheets (Amounts in Thousands) (Unaudited) December 31, December 31, 2003 2004 ------------ ------------ ASSETS Current Assets: Cash and Cash Equivalents $ 74,683 $ 31,942 Accounts Receivable (less allowances of $20,922 and $13,886, respectively) 279,800 354,434 Other Current Assets 117,100 114,778 Total Current Assets 471,583 501,154 Property, Plant and Equipment: Property, Plant and Equipment at Cost 1,950,893 2,266,839 Less: Accumulated Depreciation (458,626) (617,043) Property, Plant and Equipment, net 1,492,267 1,649,796 Other Assets: Goodwill, net 1,776,279 2,040,217 Other Non-current Assets, net 151,970 251,220 Total Other Assets 1,928,249 2,291,437 Total Assets $ 3,892,099 $ 4,442,387 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Current Portion of Long-term Debt $ 115,781 $ 39,435 Other Current Liabilities 468,964 476,028 Total Current Liabilities 584,745 515,463 Long-term Debt, Net of Current Portion 1,974,147 2,438,587 Other Long-term Liabilities 191,308 256,724 Minority Interests 75,785 13,045 Shareholders' Equity 1,066,114 1,218,568 Total Liabilities and Shareholders' Equity $ 3,892,099 $ 4,442,387 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 Twelve Months Ended Ended December 31, December 31, ----------------------- ----------------------- 2003 2004 2003 2004 ---------- ---------- ---------- ---------- OIBDA (Operating Income Before Depreciation and $ 124 $ 131 $ 436 $ 508 Amortization) (1) Less: Depreciation and Amortization 37 44 131 164 Operating Income (1) $ 87 $ 87 $ 305 $ 344 Less: Interest Expense, net 40 45 150 186 Other (Income) Expense, net (5) (12) (3) (8) Provision for Income Taxes 22 23 67 70 Minority Interest 1 1 6 3 Net Income (1) (2) $ 28 $ 30 $ 85 $ 94 Major Components of Other (Income) Expense, net: Foreign Exchange Effects $ (11) $ (11) $ (30) $ (9) Debt Extinguishment Charges $ 7 $ -- $ 28 $ 2
(1) Includes $1 million of gains and $1 million of losses on Disposal/ Write-down of Property, Plant and Equipment, net for the quarters ended December 31, 2003 and 2004, respectively, and $1 million of losses and $1 million of gains on Disposal / Write-down of Property, Plant and Equipment, net for the years ended December 31, 2003 and 2004, respectively. (2) Columns may not foot due to rounding. Contact: Stephen P. Golden Director of Investor Relations (617) 535-4799 SOURCE Iron Mountain Incorporated -0- 03/02/2005 /CONTACT: Stephen P. Golden, Director of Investor Relations of Iron Mountain Incorporated, +1-617-535-4799/ /Web site: http://www.ironmountain.com / -----END PRIVACY-ENHANCED MESSAGE-----