Iron Mountain (IRM) Reports In-Line Q4 EPS, Beats on Revenues

Iron Mountain (NYSE: IRM) reported Q4 EPS of $0.31, in-line with the analyst estimate of $0.31. Revenue for the quarter came in at $991 million versus the consensus estimate of $964.14 million.

Financial Performance Highlights

• Total Revenues, on a reported basis, for the fourth quarter of 2017 were $991 million, compared with $934 million in 2016. On a constant dollar (C$) basis, Total Revenues grew 4.1% compared to the prior year. For full year 2017, Total Revenues were $3.85 billion, compared with $3.51 billion in 2016, an increase of 9.0% on a C$ basis, reflecting the benefit from the acquisition of Recall Holdings Limited (\"Recall\"), which closed on May 2, 2016.
• Income from Continuing Operations for the fourth quarter was $24 million, compared with $50 million in the fourth quarter of 2016. Income from Continuing Operations included $26 million of Recall Costs in the fourth quarter of 2017, compared with $29 million in the fourth quarter of 2016. In addition, Income from Continuing Operations in the fourth quarter of 2017 included $30 million of debt extinguishment charges associated with refinancing of the company\'s GBP notes. For the full year, Income from Continuing Operations was $192 million, compared with $104 million in 2016. For full year 2017, Recall Costs were $85 million in 2017 compared with $132 million in 2016 and debt extinguishment charges were $78 million in 2017 compared with $9 million in 2016.
• Adjusted EBITDA, on a reported dollar basis, for the fourth quarter of 2017 was $327 million, compared with $297 million in 2016. On a C$ basis, Adjusted EBITDA increased by 8% reflecting higher margins associated with cost synergies from the Recall acquisition as well as the company\'s Transformation Initiative. For the full year, Adjusted EBITDA was $1.26 billion, compared with $1.09 billion in 2016 or an increase of 15% on a C$ basis, reflecting the benefit from the Recall acquisition and Transformation Initiative.
• Reported EPS - Fully Diluted from Continuing Operations for the fourth quarter was $0.09 compared with $0.19 for the fourth quarter of 2016. Reported EPS - Fully Diluted from Continuing Operations for the fourth quarter was impacted by the debt extinguishment charges referenced above. Full year, Reported EPS - Fully Diluted from Continuing Operations was $0.71 compared with $0.41 in 2016. The full year increase in Reported EPS was driven by improved margins and lower Recall Costs in 2017, partially offset by debt extinguishment charges.
• Adjusted EPS for the fourth quarter was $0.29, compared with $0.26 in 2016, an increase of 12%. For full year 2017, Adjusted EPS was $1.16 compared with $1.07 in 2016. Adjusted EPS for the fourth quarter of 2017 reflects an amortization charge of approximately $0.02 per share associated with an adjustment to Recall customer relationship value. Prior to the amortization adjustment, Adjusted EPS for the fourth quarter of 2017 would have been $0.31. The structural tax rate was 19.7%, compared with 18.5% a year ago.
• Net Income for the fourth quarter was $21 million compared with $50 million in 2016. For the full year, Net Income was $185 million compared with $107 million in 2016.
• FFO (Normalized) per share was $0.53 for the fourth quarter, compared with $0.50 in 2016. For the full year, FFO (Normalized) per share was $2.13, compared with $1.98 in 2016.
• AFFO was $154 million for the fourth quarter compared with $170 million in 2016, a decrease of 9%. The decrease was primarily driven by timing of maintenance capital expenditures relative to the fourth quarter in 2016. For the full year, AFFO increased 12% to $752 million, compared with $669 million in 2016.

For earnings history and earnings-related data on Iron Mountain (IRM) click here.

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