EX-99.1 2 im2558ex991.txt 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/