— Achieves record quarterly Revenue, Net Income and Adjusted EBITDA —
— Increases midpoint of 2021 financial guidance —
— Increases full-year Global Data Center leasing guidance to 30+ megawatts —
BOSTON–(BUSINESS WIRE)–Iron Mountain Incorporated (NYSE: IRM), the global leader in innovative storage and information management services, announces financial and operating results for the second quarter of 2021. The conference call / webcast details, earnings call presentation and supplemental financial information, which includes definitions of certain capitalized terms used in this release, are available on Iron Mountain’s Investor Relations website. Reconciliations of non-GAAP measures to the appropriate GAAP measures are included herein.
“Our stronger than expected performance in both the second quarter and first half of the year reflects the breadth and depth of our products and solutions and the strength of our deep customer relationships. Our second quarter results reflect increased demand for our services across our key markets,” said William L. Meaney, president and CEO of Iron Mountain. “As we celebrate and honor Iron Mountain’s 70th anniversary this month, I am extremely proud of what our team has accomplished in spite of the continued challenges due to COVID. Our Mountaineers across the globe conquered every obstacle with tenacity, a relentless focus on accelerating growth and an innovative mindset.”
Financial Performance Highlights for the Second Quarter and Year-to-Date 2021
|
($ in millions, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
Year to Date |
|
|
||||
|
|
6/30/21 |
|
6/30/20 |
|
Y/Y % Change |
|
6/30/21 |
|
6/30/20 |
|
Y/Y % Change |
|
Storage Rental Revenue |
$718 |
|
$677 |
|
6% |
|
$1,426 |
|
$1,361 |
|
5% |
|
Service Revenue |
$401 |
|
$305 |
|
32% |
|
$775 |
|
$690 |
|
12% |
|
Total Revenue |
$1,120 |
|
$982 |
|
14% |
|
$2,202 |
|
$2,051 |
|
7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
$277 |
|
$(7) |
|
NM |
|
$323 |
|
$58 |
|
459% |
|
Adjusted EBITDA |
$406 |
|
$359 |
|
13% |
|
$786 |
|
$725 |
|
8% |
|
Adjusted EBITDA Margin |
36.2% |
|
36.6% |
|
-40 bps |
|
35.7% |
|
35.4% |
|
+30 bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO |
$246 |
|
$250 |
|
(1)% |
|
$481 |
|
$480 |
|
— |
|
AFFO per share |
$0.85 |
|
$0.87 |
|
(3)% |
|
$1.66 |
|
$1.67 |
|
— |
- Total reported Revenues for the second quarter were $1.12 billion, compared with $982.2 million in the second quarter of 2020, an increase of 14.0%. Excluding the impact of foreign currency exchange (FX), total reported Revenues increased 10.2% compared to the prior year, driven by a 26.9% increase in Service revenue, while Storage rental revenue increased 2.7%. Year to date, total reported Revenues increased 7.4%, or 4.6%, excluding the impact of FX.
- The Global Data Center business revenue increased 15.3% in the second quarter, or 13.3% year over year, excluding the impact of FX. Through June 30, 2021, Iron Mountain has executed 12.6 megawatts of new and expansion leasing, and is increasing its outlook for full-year data center leasing to greater than 30 megawatts from previous guidance of 25 to 30 megawatts, based on the strength of its first-half performance and pipeline.
-
Net Income for the second quarter was $276.5 million compared with a Net Loss of $7.1 million in the second quarter of 2020. The following items were included in Net Income:
- Restructuring Charges of $39.4 million associated with the implementation of Project Summit compared to $39.3 million, in the second quarters of 2021 and 2020, respectively.
- Gain on Disposal/Write-Down of PP&E, Net of $128.9 million compared to $1.3 million, in the second quarters of 2021 and 2020, respectively, primarily related to the company’s capital recycling program.
- Other Income, Net of $186.2 million in the second quarter of 2021, primarily related to a gain on sale from the divestment of the company’s Intellectual Property Management business, compared to Other Expense, Net of $25.7 million in the second quarter of 2020, primarily related to a debt extinguishment charge of $17.0 million.
-
Year to date, Net Income was $323.2 million, compared with $57.8 million in 2020. The following items were included in Net Income:
- Restructuring Charges of $79.3 million compared to $80.3 million year to date 2021 and 2020, respectively.
- Intangible Impairment charge of $23.0 million related to the writedown of goodwill associated with the Fine Arts business in the first quarter of 2020.
- Gain on Disposal/Write-Down of PP&E, Net of $133.4 million compared to $2.3 million, year to date 2021 and 2020, respectively, primarily related to the company’s capital recycling program.
- Other Income, Net of $181.5 million year to date 2021, primarily related to a gain on sale from the divestment of the company’s Intellectual Property Management business, compared to Other Income, Net of $17.0 million year to date 2020, primarily related to a Foreign Currency Transaction Gain of $35.9 million, partially offset by a debt extinguishment charge of $17.0 million.
- Adjusted EBITDA for the second quarter was $405.6 million, compared with $359.5 million in the second quarter of 2020, an increase of 12.8%. On a constant currency basis, Adjusted EBITDA increased by 9.0%, driven by the strong increase in Service revenue, benefits from Project Summit and the flow through from revenue management. Year to date, Adjusted EBITDA was $786.2 million, compared with $725.5 million in 2020, an increase of 8.4%. On a constant currency basis, Adjusted EBITDA increased 5.5%.
- Reported EPS – Fully Diluted from Net Income (Loss) for the second quarter was $0.95, compared with $(0.02) in the second quarter of 2020. Year to date, Reported EPS – Fully Diluted from Net Income (Loss) was $1.11, compared with $0.20 in 2020.
- Adjusted EPS for the second quarter was $0.38, compared with $0.27 in the second quarter of 2020. Adjusted EPS reflects a structural tax rate of 16.2% and 16.7%, in the second quarters of 2021 and 2020, respectively. Year to date, Adjusted EPS was $0.70, compared with $0.55 in 2020.
- FFO (Normalized) per share was $0.69 for the second quarter, compared with $0.58 in the second quarter of 2020, an increase of 19.0%. Year to date, FFO (Normalized) per share was $1.32, compared with $1.17 in 2020, or an increase of 12.0%.
- AFFO was $246.0 million for the second quarter, compared with $249.7 million in the second quarter of 2020, or a decrease of 1.5%. Year to date, AFFO was $481.4 million, compared with $480.3 million in 2020, or an increase of 0.2%. AFFO in the second quarter and year-to-date 2020 includes previously disclosed tax refunds in the amount of $22.5 million and $27.5 million, respectively. Excluding the benefit of the tax refunds, AFFO in the second quarter and year-to-date 2021 would have increased 8.3% and 6.3% year over year, respectively.
- AFFO per share was $0.85 for the second quarter, compared with $0.87 in the second quarter of 2020, or a decrease of 2.5%. Year to date, AFFO per share was $1.66, compared with $1.67 in 2020, or a decrease of 0.5%. Excluding the aforementioned tax refunds, AFFO per share in the second quarter and year-to-date 2021 would have increased 7.7% and 5.6%, respectively.
Dividend
On August 5, 2021, Iron Mountain’s board of directors declared a quarterly cash dividend of $0.6185 per share for the third quarter. The third-quarter 2021 dividend is payable on October 6, 2021, for shareholders of record on September 15, 2021.
Guidance
Reflecting outperformance in the first half of the year and positive momentum in the business, Iron Mountain has increased the midpoint of its financial guidance; details are summarized in the table below.
|
2021 Guidance(1) |
||||
|
($ in millions, except per share data) |
|
|
|
|
|
|
New |
Y/Y % Change |
Previous |
Y/Y % Change |
|
Total Revenue |
$4,415 – $4,515 |
6% – 9% |
$4,365 – $4,515 |
5% – 9% |
|
Adjusted EBITDA |
$1,600 – $1,635 |
8% – 11% |
$1,585 – $1,635 |
7% – 11% |
|
AFFO |
$970 – $1,005 |
9% – 13% |
$955 – $1,005 |
8% – 13% |
|
AFFO Per Share |
$3.33 – $3.45 |
8% – 12% |
$3.28 – $3.45 |
7% – 12% |
(1) Iron Mountain does not provide a reconciliation of non-GAAP measures that it discusses as part of its annual guidance or long term outlook because certain significant information required for such reconciliation is not available without unreasonable efforts or at all, including, most notably, the impact of exchange rates on Iron Mountain’s transactions, loss or gain related to the disposition of real estate and other income or expense. Without this information, Iron Mountain does not believe that a reconciliation would be meaningful.
About Iron Mountain
Iron Mountain Incorporated (NYSE: IRM) is the global leader in innovative storage and information management services, storing and protecting billions of valued assets, including critical business information, highly sensitive data, and cultural and historical artifacts. Founded in 1951 and trusted by more than 225,000 customers worldwide, Iron Mountain helps customers CLIMB HIGHER™ to transform their businesses. Through a range of services including digital transformation, data centers, secure records storage, information management, secure destruction, and art storage and logistics, Iron Mountain helps businesses bring light to their dark data, enabling customers to unlock value and intelligence from their stored digital and physical assets at speed and with security, while helping them meet their environmental goals.
To learn more about Iron Mountain, please visit: www.IronMountain.com and follow @IronMountain on Twitter and LinkedIn.
Forward Looking Statements
We have made statements in this press release that constitute “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements concern our operations, economic performance, financial condition, goals, beliefs, future growth strategies, investment objectives, plans and current expectations, such as our (1) 2021 guidance as well as our expectations for growth, including growth opportunities and growth rates for revenue by segment, organic revenue, organic volume and other metrics, (2) expectations and assumptions regarding the impact from the COVID-19 pandemic on us and our customers, including on our businesses, financial position, results of operations and cash flows, (3) expected benefits, costs and actions related to, and timing of, Project Summit, (4) expectations as to our capital allocation strategy, including our future investments, leverage ratio, dividend payments and possible funding sources (including real estate monetization) and capital expenditures, (5) expectations regarding the closing of pending acquisitions and investments, and (6) other forward-looking statements related to our business, results of operations and financial condition.
These forward-looking statements are subject to various known and unknown risks, uncertainties and other factors, and you should not rely upon them except as statements of our present intentions and of our present expectations, which may or may not occur. When we use words such as “believes,” “expects,” “anticipates,” “estimates,” “plans” or similar expressions, we are making forward-looking statements. Although we believe that our forward-looking statements are based on reasonable assumptions, our expected results may not be achieved, and actual results may differ materially from our expectations. In addition, important factors that could cause actual results to differ from expectations include, among others: (i) the severity and duration of the COVID-19 pandemic and its effects on the global economy, including its effects on us, the markets we serve and our customers and the third parties with whom we do business within those markets; (ii) our ability to execute on Project Summit and the potential impacts of Project Summit on our ability to retain and recruit employees; (iii) our ability to remain qualified for taxation as a real estate investment trust for United States federal income tax purposes; (iv) changes in customer preferences and demand for our storage and information management services, including as a result of the shift from paper and tape storage to alternative technologies that require less physical space; (v) our ability or inability to execute our strategic growth plan, including our ability to invest according to plan, incorporate new digital information technologies into our offerings, achieve satisfactory returns on new product offerings, continue our revenue management, expand internationally, complete acquisitions on satisfactory terms, integrate acquired companies efficiently and grow our business through joint ventures; (vi) changes in the amount of our capital expenditures; (vii) our ability to raise debt or equity capital and changes in the cost of our debt; (viii) the cost and our ability to comply with laws, regulations and customer demands, including those relating to data security and privacy issues, as well as fire and safety and environmental standards; (ix) the impact of litigation or disputes that may arise in connection with incidents in which we fail to protect our customers’ information or our internal records or information technology systems and the impact of such incidents on our reputation and ability to compete; (x) changes in the price for our storage and information management services relative to the cost of providing such storage and information management services; (xi) changes in the political and economic environments in the countries in which our international subsidiaries operate and changes in the global political climate, particularly as we consolidate operations and move records and data across borders; (xii) our ability to comply with our existing debt obligations and restrictions in our debt instruments; (xiii) the impact of service interruptions or equipment damage and the cost of power on our data center operations; (xiv) the cost or potential liabilities associated with real estate necessary for our business; (xv) failures in our adoption of new IT systems; (xvi) unexpected events, including those resulting from climate change, could disrupt our operations and adversely affect our reputation and results of operations; (xvii) other trends in competitive or economic conditions affecting our financial condition or results of operations not presently contemplated; and (xviii) the other risks described in our periodic reports filed with the SEC, including under the caption “Risk Factors” in Part I, Item 1A of our Annual Report. Except as required by law, we undertake no obligation to update any forward-looking statements appearing in this report.
Reconciliation of Non-GAAP Measures:
Throughout this release, Iron Mountain discusses (1) Adjusted EBITDA, (2) Adjusted Earnings per Share (“Adjusted EPS”), (3) Funds from Operations (“FFO Nareit”), (4) FFO (Normalized) and (5) Adjusted Funds from Operations (“AFFO”). These measures do not conform to accounting principles generally accepted in the United States (“GAAP”). These non-GAAP measures are supplemental metrics designed to enhance our disclosure and to provide additional information that we believe to be important for investors to consider in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP, such as operating income, net income (loss) attributable to Iron Mountain Incorporated or cash flows from operating activities (as determined in accordance with GAAP). The reconciliation of these measures to the appropriate GAAP measure, as required by Regulation G under the Securities Exchange Act of 1934, as amended, and their definitions are included later in this release.
Consolidated Balance Sheets
(Unaudited; dollars in thousands)
|
|
|
6/30/2021 |
|
12/31/2020 |
||
|
ASSETS |
|
|
|
|
||
|
Current Assets: |
|
|
|
|
||
|
Cash and Cash Equivalents |
|
$315,928 |
|
$205,063 |
||
|
Accounts Receivable, Net |
|
852,449 |
|
|
859,344 |
|
|
Prepaid Expenses and Other |
|
222,231 |
|
|
205,380 |
|
|
Total Current Assets |
|
$1,390,608 |
|
$1,269,787 |
||
|
Property, Plant and Equipment: |
|
|
|
|
||
|
Property, Plant and Equipment |
|
$8,319,083 |
|
$8,246,337 |
||
|
Less: Accumulated Depreciation |
|
(3,863,477) |
|
|
(3,743,894) |
|
|
Property, Plant and Equipment, Net |
|
$4,455,606 |
|
$4,502,443 |
||
|
Other Assets, Net: |
|
|
|
|
||
|
Goodwill |
|
$4,508,754 |
|
$4,557,609 |
||
|
Customer Relationships, Customer Inducements and Data Center Lease-Based Intangibles |
|
1,256,181 |
|
|
1,326,977 |
|
|
Operating Lease Right-of-use Assets |
|
2,342,197 |
|
|
2,196,502 |
|
|
Other |
|
360,970 |
|
|
295,949 |
|
|
Total Other Assets, Net |
|
$8,468,102 |
|
$8,377,037 |
||
|
Total Assets |
|
$14,314,316 |
|
$14,149,267 |
||
|
|
|
|
|
|
||
|
LIABILITIES AND EQUITY |
|
|
|
|
||
|
Current Liabilities: |
|
|
|
|
||
|
Current Portion of Long-term Debt |
|
$106,274 |
|
$193,759 |
||
|
Accounts Payable |
|
321,286 |
|
|
359,863 |
|
|
Accrued Expenses and Other Current Liabilities |
|
1,064,397 |
|
|
1,146,288 |
|
|
Deferred Revenue |
|
256,245 |
|
|
295,785 |
|
|
Total Current Liabilities |
|
$1,748,202 |
|
$1,995,695 |
||
|
Long-term Debt, Net of Current Portion |
|
8,760,728 |
|
|
8,509,555 |
|
|
Long-term Operating Lease Liabilities, Net of Current Portion |
|
2,186,625 |
|
|
2,044,598 |
|
|
Other Long-term Liabilities (1) |
|
471,019 |
|
|
462,690 |
|
|
Total Long-term Liabilities |
|
$11,418,372 |
|
$11,016,843 |
||
|
Total Liabilities |
|
$13,166,574 |
|
$13,012,538 |
||
|
Equity |
|
|
|
|
||
|
Total Equity |
|
$1,147,742 |
|
$1,136,729 |
||
|
Total Liabilities and Equity |
|
$14,314,316 |
|
$14,149,267 |
||
(1) Includes redeemable noncontrolling interests of $64.7M and $59.8M as of June 30, 2021 and December 31, 2020, respectively.
Quarterly Consolidated Statements of Operations
(Unaudited; dollars in thousands, except per-share data)
|
|
Q2 2021 |
|
Q1 2021 |
|
Q/Q % Change |
|
|
Q2 2020 |
|
Y/Y % Change |
|||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|||||
|
Storage Rental |
$718,272 |
|
$708,056 |
|
1.4 |
% |
|
|
$676,956 |
|
6.1 |
% |
|||
|
Service |
401,484 |
|
|
373,984 |
|
|
7.4 |
% |
|
|
305,283 |
|
|
31.5 |
% |
|
Total Revenues |
$1,119,756 |
|
$1,082,040 |
|
3.5 |
% |
|
|
$982,239 |
|
14.0 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|||||
|
Cost of Sales (excluding Depreciation and Amortization) (1) |
$474,579 |
|
$451,909 |
|
5.0 |
% |
|
|
$406,693 |
|
16.7 |
% |
|||
|
Selling, General and Administrative (2) |
259,779 |
|
|
258,723 |
|
|
0.4 |
% |
|
|
241,947 |
|
|
7.4 |
% |
|
Depreciation and Amortization |
166,685 |
|
|
165,642 |
|
|
0.6 |
% |
|
|
163,850 |
|
|
1.7 |
% |
|
Acquisition and Integration Costs |
2,277 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
Restructuring Charges |
39,443 |
|
|
39,811 |
|
|
(0.9) |
% |
|
|
39,298 |
|
|
0.4 |
% |
|
(Gain) Loss on Disposal/Write-Down of PP&E, Net |
(128,935) |
|
|
(4,451) |
|
|
2,797.0 |
% |
|
|
(1,275) |
|
|
10,015.0 |
% |
|
Total Operating Expenses |
$813,828 |
|
$911,634 |
|
(10.7) |
% |
|
|
$850,513 |
|
(4.3) |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Operating Income (Loss) |
$305,928 |
|
$170,406 |
|
79.5 |
% |
|
|
$131,726 |
|
132.2 |
% |
|||
|
Interest Expense, Net |
105,220 |
|
|
104,422 |
|
|
0.8 |
% |
|
|
103,456 |
|
|
1.7 |
% |
|
Other (Income) Expense, Net |
(186,230) |
|
|
4,713 |
|
|
(4,051.2) |
% |
|
|
25,700 |
|
|
(824.6) |
% |
|
Net Income (Loss) Before Provision (Benefit) for Income Taxes |
$386,938 |
|
$61,271 |
|
531.5 |
% |
|
|
$2,570 |
|
14,953.6 |
% |
|||
|
Provision (Benefit) for Income Taxes |
110,416 |
|
|
14,640 |
|
|
654.2 |
% |
|
|
9,683 |
|
|
1,040.3 |
% |
|
Net Income (Loss) |
$276,522 |
|
$46,631 |
|
493.0 |
% |
|
|
$(7,113) |
|
(3,987.6) |
% |
|||
|
Less: Net Income (Loss) Attributable to Noncontrolling Interests |
1,237 |
|
|
1,028 |
|
|
20.4 |
% |
|
|
(27) |
|
|
(4,734.1) |
% |
|
Net Income (Loss) Attributable to Iron Mountain Incorporated |
$275,285 |
|
$45,603 |
|
503.7 |
% |
|
|
$(7,086) |
|
(3,984.8) |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated: |
|
|
|
|
|
|
|
|
|
|
|||||
|
Basic |
$0.95 |
|
$0.16 |
|
493.8 |
% |
|
|
$(0.02) |
|
(4,850.0) |
% |
|||
|
Diluted |
$0.95 |
|
$0.16 |
|
493.8 |
% |
|
|
$(0.02) |
|
(4,850.0) |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Weighted Average Common Shares Outstanding – Basic |
289,247 |
|
|
288,756 |
|
|
0.2 |
% |
|
|
288,071 |
|
|
0.4 |
% |
|
Weighted Average Common Shares Outstanding – Diluted |
291,079 |
|
|
289,528 |
|
|
0.5 |
% |
|
|
288,071 |
|
|
1.0 |
% |
(1) Includes $7.6M of direct and incremental costs related to COVID-19 in Q2 2020.
(2) Includes $1.6M of direct and incremental costs related to COVID-19 in Q2 2020.
Year-to-Date Consolidated Statements of Operations
(Unaudited; dollars in thousands, except per-share data)
|
|
YTD 2021 |
|
YTD 2020 |
|
% Change |
|||
|
Revenues: |
|
|
|
|
|
|||
|
Storage Rental |
$1,426,328 |
|
$1,360,503 |
|
4.8 |
% |
||
|
Service |
775,468 |
|
|
690,467 |
|
|
12.3 |
% |
|
Total Revenues |
$2,201,796 |
|
$2,050,970 |
|
7.4 |
% |
||
|
|
|
|
|
|
|
|||
|
Operating Expenses: |
|
|
|
|
|
|||
|
Cost of Sales (excluding Depreciation and Amortization) (1) |
$926,488 |
|
$873,614 |
|
6.1 |
% |
||
|
Selling, General and Administrative (2) |
518,502 |
|
|
480,680 |
|
|
7.9 |
% |
|
Depreciation and Amortization |
332,327 |
|
|
326,434 |
|
|
1.8 |
% |
|
Acquisition and Integration Costs |
2,277 |
|
|
— |
|
|
— |
|
|
Restructuring Charges |
79,254 |
|
|
80,344 |
|
|
(1.4) |
% |
|
Intangible Impairments |
— |
|
|
23,000 |
|
|
(100.0) |
% |
|
(Gain) Loss on Disposal/Write-Down of PP&E, Net |
(133,386) |
|
|
(2,330) |
|
|
5,624.7 |
% |
|
Total Operating Expenses |
$1,725,462 |
|
$1,781,742 |
|
(3.2) |
% |
||
|
|
|
|
|
|
|
|||
|
Operating Income (Loss) |
$476,334 |
|
$269,228 |
|
76.9 |
% |
||
|
Interest Expense, Net |
209,642 |
|
|
209,105 |
|
|
0.3 |
% |
|
Other (Income) Expense, Net |
(181,517) |
|
|
(17,026) |
|
|
966.1 |
% |
|
Net Income (Loss) Before Provision (Benefit) for Income Taxes |
$448,209 |
|
$77,149 |
|
481.0 |
% |
||
|
Provision (Benefit) for Income Taxes |
125,056 |
|
|
19,370 |
|
|
545.6 |
% |
|
Net Income (Loss) |
$323,153 |
|
$57,779 |
|
459.3 |
% |
||
|
Less: Net Income (Loss) Attributable to Noncontrolling Interests |
2,265 |
|
|
890 |
|
|
154.5 |
% |
|
Net Income (Loss) Attributable to Iron Mountain Incorporated |
$320,888 |
|
$56,889 |
|
464.1 |
% |
||
|
|
|
|
|
|
|
|||
|
Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated: |
|
|
|
|
|
|||
|
Basic |
$1.11 |
|
$0.20 |
|
455.0 |
% |
||
|
Diluted |
$1.11 |
|
$0.20 |
|
455.0 |
% |
||
|
|
|
|
|
|
|
|||
|
Weighted Average Common Shares Outstanding – Basic |
289,001 |
|
|
287,955 |
|
|
0.4 |
% |
|
Weighted Average Common Shares Outstanding – Diluted |
290,303 |
|
|
288,301 |
|
|
0.7 |
% |
(1) Includes $7.6M of direct and incremental costs related to COVID-19 in YTD 2020.
(2) Includes $1.6M of direct and incremental costs related to COVID-19 in YTD 2020.
Quarterly Reconciliation of Net Income (Loss) to Adjusted EBITDA
(Dollars in thousands)
|
|
Q2 2021 |
|
Q1 2021 |
|
Q/Q % Change |
|
|
Q2 2020 |
|
Y/Y % Change |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Net Income (Loss) |
$276,522 |
|
$46,631 |
|
493.0 |
% |
|
|
$(7,113) |
|
(3,987.6) |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Add / (Deduct): |
|
|
|
|
|
|
|
|
|
|
|||||
|
Interest Expense, Net |
105,220 |
|
104,422 |
|
0.8 |
% |
|
|
103,456 |
|
1.7 |
% |
|||
|
Provision (Benefit) for Income Taxes |
110,416 |
|
14,640 |
|
654.2 |
% |
|
|
9,683 |
|
1,040.3 |
% |
|||
|
Depreciation and Amortization |
166,685 |
|
165,642 |
|
0.6 |
% |
|
|
163,850 |
|
1.7 |
% |
|||
|
Acquisition and Integration Costs |
2,277 |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
Restructuring Charges |
39,443 |
|
39,811 |
|
(0.9) |
% |
|
|
39,298 |
|
0.4 |
% |
|||
|
(Gain) Loss on Disposal/Write-Down of PP&E, Net (Including Real Estate) |
(128,935) |
|
(4,451) |
|
2,796.8 |
% |
|
|
(1,275) |
|
10,012.5 |
% |
|||
|
Other (Income) Expense, Net, Excluding our Share of Losses (Gains) from our Unconsolidated Joint Ventures |
(189,605) |
|
2,121 |
|
(9,039.4) |
% |
|
|
23,239 |
|
(915.9) |
% |
|||
|
Stock-Based Compensation Expense |
22,536 |
|
10,733 |
|
110.0 |
% |
|
|
18,880 |
|
19.4 |
% |
|||
|
COVID-19 Costs |
— |
|
|
— |
|
|
— |
|
|
|
9,285 |
|
(100.0) |
% |
|
|
Our Share of Adjusted EBITDA Reconciling Items from our Unconsolidated Joint Ventures |
1,072 |
|
1,016 |
|
5.5 |
% |
|
|
159 |
|
574.2 |
% |
|||
|
Adjusted EBITDA |
$405,631 |
|
$380,565 |
|
6.6 |
% |
|
|
$359,462 |
|
12.8 |
% |
|||
|
|
Adjusted EBITDA
We define Adjusted EBITDA as net income (loss) before interest expense, net, provision (benefit) for income taxes, depreciation and amortization (inclusive of our share of Adjusted EBITDA from our unconsolidated joint ventures), and excluding certain items we do not believe to be indicative of our core operating results, specifically: (i) Acquisition and Integration Costs, (ii) Restructuring Charges; (iii Intangible impairments; (iv) (Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate); (v) Other expense (income), net; (vi) Stock-based compensation expense; and (vi) COVID-19 Costs. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenues. We use multiples of current or projected Adjusted EBITDA in conjunction with our discounted cash flow models to determine our estimated overall enterprise valuation and to evaluate acquisition targets.
Contacts
Investor Relations:
Greer Aviv
Senior Vice President, Investor Relations
Greer.Aviv@ironmountain.com
(617) 535-2887
Sarah Barry
Manager, Investor Relations
Sarah.Barry@ironmountain.com
(617) 535-2997
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