-----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, KSdTEOml9Zziz/tCODyvIDUdixdBjO5Z8vUvfNxpPeJR9qiHR2MlBJJ3egVbJgJ/ pKSDcQBdykNu9E9/aeBsdg== 0001275287-05-002830.txt : 20050728 0001275287-05-002830.hdr.sgml : 20050728 20050728105050 ACCESSION NUMBER: 0001275287-05-002830 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050728 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050728 DATE AS OF CHANGE: 20050728 FILER: COMPANY DATA: COMPANY CONFORMED NAME: IRON MOUNTAIN INC CENTRAL INDEX KEY: 0001020569 STANDARD INDUSTRIAL CLASSIFICATION: PUBLIC WAREHOUSING & STORAGE [4220] IRS NUMBER: 232588479 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13045 FILM NUMBER: 05979567 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: IRON MOUNTAIN INC/PA DATE OF NAME CHANGE: 20000201 FORMER COMPANY: FORMER CONFORMED NAME: PIERCE LEAHY CORP DATE OF NAME CHANGE: 19960807 8-K 1 im3216.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): JULY 28, 2005 IRON MOUNTAIN INCORPORATED (Exact name of registrant as specified in its charter) DELAWARE (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 July 28, 2005, the Company issued a press release setting forth the Company's results of operations and financial condition for its second fiscal quarter ended June 30, 2005. 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 July 28, 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: Senior Vice President and Corporate Controller Date: July 28, 2005 EX-99.1 2 im3216ex991.txt Exhibit 99.1 IRON MOUNTAIN INCORPORATED REPORTS SECOND QUARTER 2005 FINANCIAL RESULTS * Total Revenues are $512 Million, Up 15% * Operating Income is $97 Million * Net Income is $0.19 per Diluted Share BOSTON, July 28 /PRNewswire-FirstCall/ -- Iron Mountain Incorporated (NYSE: IRM), the world's trusted partner for records management and data protection services, today announced its financial results for the quarter ended June 30, 2005, reporting higher revenues, operating income and OIBDA. Net income for the quarter was $0.19 per diluted share. Iron Mountain's total consolidated revenues for the quarter ended June 30, 2005 grew to $512 million, an increase of 15% compared to the quarter ended June 30, 2004. For the quarter, storage revenues grew 14% and service revenues grew 16% 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 66th consecutive quarter for which the Company has reported increased storage revenues. For the second quarter of 2005, the storage and service revenue internal growth rates were 9% and 6%, respectively, yielding a total internal revenue growth rate of 8%. The total core storage and services revenue internal growth rate was 8% for the quarter. Richard Reese, the Company's Chairman and CEO, stated, "Iron Mountain posted excellent results in the second quarter as we surpassed all of our financial targets. Internal revenue growth was strong and margins exceeded our expectations. Storage internal growth came in at the high end of our range and we saw improvement in our service internal growth rates. We won a major piece of business for our Digital Archive service that will generate meaningful service revenues in the second half of 2005 and recurring storage revenues for the next several years. As a result, we now expect our digital business to breakeven for 2005." Reese continued, "Based on the strength of our first half performance, we are increasing our guidance for the balance of 2005." Operating income before depreciation and amortization ("OIBDA") was $141 million, or 27.6% of revenues, for the quarter ended June 30, 2005 compared to $127 million, or 28.6% of revenues, for the quarter ended June 30, 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 second quarter of 2005 was $97 million, or 19% of revenues, compared to $87 million, or 20% of revenues, for the same period in 2004. Net income for the quarter was $25 million, or $0.19 per diluted share, up 11% compared to $23 million, or $0.17 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 second 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 and the Euro since March 31, 2005. The comparable number for the second quarter of 2004 is also $5 million, or $0.02 per diluted share, of other expense, net comprised almost entirely of foreign currency related net losses. For the six months ended June 30, 2005, the Company reported total consolidated revenues of $1.01 billion, an increase of 15%, with storage revenues growing at 14% and service revenues growing at 16% compared to the prior year. For the first half of the year, storage and service revenue internal growth rates were 9% and 5%, respectively, yielding a total internal revenue growth rate of 7%. OIBDA was $277 million, or 27.3% of revenues, for the six months ended June 30, 2005 compared to $250 million, or 28.5% of revenues, for the six months ended June 30, 2004. Operating income for the first half of 2005 was $188 million, or 19% of revenues, compared to $173 million, or 20% of revenues, for 2004. Net income was $48 million, or $0.37 per diluted share, for the first six-months of 2005, compared to $46 million, or $0.35 per diluted share, for the comparable period in 2004. Included in net income for the six months ended June 30, 2005, is $10 million, or $0.04 per diluted share, of other expense, net comprised almost exclusively of foreign currency related net losses, due primarily to the weakening of the British Pound Sterling, the Euro and the Canadian Dollar. Included in net income for the six months ended June 30, 2004, is $7 million, or $0.03 per diluted share, of other expense, net comprised primarily of $5 million of foreign currency related net losses, due primarily to the weakening of the Canadian Dollar and $2 million of charges for the early extinguishment of debt related to the Company's 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. In 2005, the Company has completed seven acquisitions, including five shredding businesses, for approximately $21 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 September 30, 2005 Previous Current --------------------- --------------------- --------------------- Low High Low High Low High --------- --------- --------- --------- --------- --------- Revenues $ 512 $ 522 $ 1,980 $ 2,030 $ 2,020 $ 2,045 Operating Income 94 99 350 360 360 375 Depreciation & Amortization ~46 180 185 180 185 Capital Expenditures 220 250 250 275
Iron Mountain's conference call to discuss the second 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 third 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 Six Months Ended June 30, June 30, ---------------------------- ---------------------------- 2004 2005 2004 2005 ------------ ------------ ------------ ------------ Revenues: Storage $ 255,770 $ 291,666 $ 504,365 $ 577,021 Service and Storage Material Sales 189,640 220,256 374,967 436,307 Total Revenues 445,410 511,922 879,332 1,013,328 Operating Expenses: Cost of Sales (Excluding Depreciation) 200,827 228,088 399,137 458,716 Selling, General and Administrative 118,488 141,313 230,948 276,653 Depreciation and Amortization 40,363 44,745 77,643 89,291 (Gain) Loss on Disposal / Writedown of Property, Plant and Equipment, Net (1,134) 1,083 (1,014) 865 Total Operating Expenses 358,544 415,229 706,714 825,525 Operating Income 86,866 96,693 172,618 187,803 Interest Expense, Net 42,659 47,222 86,118 93,028 Other Expense, Net 4,945 4,946 7,215 9,609 Income Before Provision for Income Taxes and Minority Interest 39,262 44,525 79,285 85,166 Provision for Income Taxes 15,825 18,866 32,375 36,102 Minority Interest in Earnings of Subsidiaries 580 249 1,056 705 Net Income $ 22,857 $ 25,410 $ 45,854 $ 48,359 Net Income Per Share - Basic $ 0.18 $ 0.19 $ 0.36 $ 0.37 Net Income Per Share - Diluted $ 0.17 $ 0.19 $ 0.35 $ 0.37 Weighted Average Common Shares Outstanding - Basic 128,956 130,474 128,757 130,228 Weighted Average Common Shares Outstanding - Diluted 131,036 131,470 130,901 131,494 Operating Income before Depreciation and Amortization $ 127,229 $ 141,438 $ 250,261 $ 277,094
Iron Mountain Incorporated Condensed Consolidated Balance Sheets (Amounts in Thousands) (Unaudited) December 31, June 30, 2004 2005 ------------ ------------ ASSETS Current Assets: Cash and Cash Equivalents $ 31,942 $ 29,517 Accounts Receivable (less allowances of $13,886 and $13,162, respectively) 354,434 375,839 Other Current Assets 114,778 105,942 Total Current Assets 501,154 511,298 Property, Plant and Equipment: Property, Plant and Equipment at Cost 2,266,839 2,404,327 Less: Accumulated Depreciation (617,043) (695,941) Property, Plant and Equipment, net 1,649,796 1,708,386 Other Assets: Goodwill, net 2,040,217 2,061,258 Other Non-current Assets, net 251,220 259,513 Total Other Assets 2,291,437 2,320,771 Total Assets $ 4,442,387 $ 4,540,455 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current Portion of Long-term Debt $ 39,435 $ 23,566 Other Current Liabilities 476,028 522,412 Total Current Liabilities 515,463 545,978 Long-term Debt, Net of Current Portion 2,438,587 2,406,196 Other Long-term Liabilities 256,724 292,123 Minority Interests 13,045 5,288 Stockholders' Equity 1,218,568 1,290,870 Total Liabilities and Stockholders' Equity $ 4,442,387 $ 4,540,455 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 Six Months Ended June 30, June 30, ------------------- ------------------- 2004 2005 2004 2005 -------- -------- -------- -------- OIBDA (Operating Income Before Depreciation and Amortization) (1) $ 127 $ 141 $ 250 $ 277 Less: Depreciation and Amortization 40 45 78 89 Operating Income (1) $ 87 $ 97 $ 173 $ 188 Less: Interest Expense, net 43 47 86 93 Other Expense, net 5 5 7 10 Provision for Income Taxes 16 19 32 36 Minority Interest 1 -- 1 1 Net Income (1) $ 23 $ 25 $ 46 $ 48 Major Components of Other Expense, net: Foreign Exchange Effects $ 5 $ 5 $ 5 $ 10 Debt Extinguishment Charges $ -- $ -- $ 2 $ -- (1) Columns may not foot due to rounding. Contact: Stephen P. Golden Director of Investor Relations (617) 535-4799 -----END PRIVACY-ENHANCED MESSAGE-----