Meaney commented on the results, “We delivered very strong performance in the first quarter, with year-over-year growth in organic revenue, Adjusted EBITDA, Adjusted EPS and AFFO. Importantly, the swift and decisive actions we executed in Q4 as part of Project Summit delivered Adjusted EBITDA benefits above our expectations. Our core Global Records and Information Management business continues to demonstrate durability, with organic storage rental revenue growth of 2.1%, and a 230 basis point expansion in Adjusted EBITDA margin. As we have mentioned before, our team is focused on driving AFFO and we are pleased to report a new all-time high, demonstrating the strength of our business model. Our Global Data Center Business had a strong Q1, with organic revenue growth of nearly 10%. We signed 6.4 megawatts of new and expansion leases, and our pipeline remains robust. Additionally, in light of the current environment and the strong start to Project Summit, we have identified additional opportunities to expand the program, and expect to be able to achieve higher levels of Adjusted EBITDA benefit than we initially expected.”<\/p>\n
Financial Performance Highlights for the First Quarter of 2020<\/strong><\/p>\n COVID-19 Response Update<\/strong><\/p>\n Meaney continued, “Whilst we are fortunate that Iron Mountain is considered an essential service in many locations and sectors where we operate, we have seen a slowdown in our service business driven by the numerous country and local shutdowns, and the substantial increase in remote working policies across organizations. As such, we have taken a number of steps to help Iron Mountain withstand the crisis, reduce operating expenses and create financial flexibility.”<\/p>\n Business Operations Update<\/em><\/p>\n Since the beginning of the crisis, Iron Mountain has taken decisive actions to protect the health and safety of its employees, provide essential and innovative solutions to customers and ensure overall business continuity, including:<\/p>\n Cost Containment and Financial Management Update<\/em><\/p>\n Iron Mountain has also taken actions to maintain financial and strategic flexibility, including:<\/p>\n Meaney concluded, “Decisions that impact our employees are never taken lightly and we have set up numerous resources to support impacted employees during this unprecedented time. As we look ahead, we are focused on managing the health of the business to ensure we can continue providing a premier experience to our customers. I am especially proud of all of our teams that have come together to address the unique challenges presented by the pandemic.”<\/p>\n Liquidity Update<\/strong><\/p>\n Iron Mountain is operating from a strong liquidity and cash position. As of the end of the first quarter, the Company had cash on hand of $153 million<\/span> and $1.1 billion<\/span> available under its revolving credit facility, resulting in more than $1.2 billion<\/span> in liquidity.<\/p>\n Project Summit Update<\/strong><\/p>\n Iron Mountain has identified additional opportunities to accelerate strategies to streamline its business and operations, and has broadened the scope and size of Project Summit. The program is now expected to generate $375 million<\/span> of Adjusted EBITDA benefits exiting 2021. This represents a meaningful increase from the prior expectation of $200 million<\/span>. The total program is expected to cost approximately $450 million<\/span> to implement, up from the prior expectation of $240 million<\/span>.<\/p>\n Dividend<\/strong><\/p>\n On May 5, 2020<\/span>, Iron Mountain’s board of directors declared a quarterly cash dividend of $0.6185<\/span> per share for the second quarter. The second-quarter 2020 dividend is payable on July 2, 2020<\/span>, for shareholders of record on June 15, 2020<\/span>.<\/p>\n Guidance<\/strong><\/p>\n In light of the uncertain operating environment, Iron Mountain has withdrawn its previously provided 2020 guidance, including for Revenue, Adjusted EBITDA, Adjusted EPS, and AFFO.<\/p>\n About Iron Mountain<\/strong><\/p>\n Iron Mountain Incorporated (NYSE: IRM), founded in 1951, is the global leader for storage and information management services. Trusted by more than 225,000 organizations around the world, and with a real estate network of more than 90 million square feet across more than 1,480 facilities in approximately 50 countries, Iron Mountain stores and protects billions of valued assets, including critical business information, highly sensitive data, and cultural and historical artifacts. Providing solutions that include secure records storage, information management, digital transformation, secure destruction, as well as data centers, cloud services and art storage and logistics, Iron Mountain helps customers lower cost and risk, comply with regulations, recover from disaster, and enable a more digital way of working. Visit www.ironmountain.com for more information.<\/p>\n\n
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