PORTSMOUTH, N.H.–(BUSINESS WIRE)–Iron Mountain Incorporated (NYSE: IRM), a global leader in information management services, announces financial results for the second quarter of 2024. 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.
“We continue to execute well on our growth strategy and are pleased to report a very strong second quarter, again resulting in all-time record Revenue and Adjusted EBITDA,” said William L. Meaney, President and CEO of Iron Mountain. “We are grateful to our team who continue to drive toward our Project Matterhorn growth targets, including top tier growth in AFFO, which enabled us to increase the dividend by 10%. This is in line with our long term plan to increase the dividend alongside growth in AFFO per share.”
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Financial Performance Highlights for the Second Quarter of 2024 |
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($ in millions, except per share data) |
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Three Months Ended |
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Y/Y % Change |
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Year to Date |
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Y/Y % Change |
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6/30/24 |
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6/30/23 |
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Reported $ |
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Constant Fx |
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6/30/24 |
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6/30/23 |
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Reported $ |
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Constant Fx |
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Storage Rental Revenue |
$920 |
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$831 |
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11% |
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12% |
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$1,805 |
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$1,641 |
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10% |
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10% |
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Service Revenue |
$615 |
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$527 |
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17% |
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17% |
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$1,207 |
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$1,031 |
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17% |
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17% |
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Total Revenue |
$1,534 |
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$1,358 |
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13% |
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14% |
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$3,011 |
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$2,672 |
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13% |
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13% |
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Net Income |
$35 |
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$1 |
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— |
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$112 |
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$67 |
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67% |
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Reported EPS |
$0.12 |
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$0.00 |
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— |
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$0.37 |
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$0.22 |
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68% |
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Adjusted EPS |
$0.42 |
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$0.40 |
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5% |
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$0.85 |
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$0.83 |
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2% |
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Adjusted EBITDA |
$544 |
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$476 |
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14% |
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15% |
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$1,063 |
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$936 |
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14% |
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14% |
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Adjusted EBITDA Margin |
35.5% |
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35.0% |
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50 bps |
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35.3% |
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35.0% |
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30 bps |
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AFFO |
$321 |
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$287 |
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12% |
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$645 |
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$582 |
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11% |
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AFFO per share |
$1.08 |
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$0.98 |
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10% |
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$2.18 |
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$1.99 |
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10% |
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- Total reported revenues for the second quarter were $1.5 billion, compared with $1.4 billion in the second quarter of 2023, an increase of 13.0%. Excluding the impact of foreign currency exchange (“Fx”), total reported revenues increased 13.8% compared to the prior year, driven by a 11.5% increase in storage rental revenue and a 17.3% increase in service revenue. Year to date, total reported revenues increased 12.7%, or 13.0% excluding the impact of Fx.
- Net Income for the second quarter was $34.6 million, compared with $1.1 million in the second quarter of 2023. Year to date, net income was $111.6 million, compared with $66.7 million in 2023.
- Adjusted EBITDA for the second quarter was $544.4 million, compared with $475.7 million in the second quarter of 2023, an increase of 14.4%. On a constant currency basis, Adjusted EBITDA increased by 15.1% in the second quarter, compared to the second quarter of 2023, driven by revenue increases in Global RIM, ALM, and data center. On a constant currency basis, year to date Adjusted EBITDA increased 13.8%.
- FFO (Normalized) per share was $0.78 for the second quarter, compared with $0.71 in the second quarter of 2023. Year to date, FFO (Normalized) per share was $1.53, compared with $1.42 in 2023, or an increase of 7.7%.
- AFFO was $320.9 million for the second quarter, compared with $287.1 million in the second quarter of 2023, an increase of 11.8% driven by improved Adjusted EBITDA. Year to date, AFFO was $644.6 million compared with $582.3 million, or an increase of 10.7%.
- AFFO per share was $1.08 for the second quarter, compared with $0.98 in the second quarter of 2023. Year to date, AFFO per share was $2.18, compared to $1.99 in 2023, or an increase of 9.5%.
Dividend
On August 1, 2024, Iron Mountain’s Board of Directors declared a quarterly cash dividend of $0.715 per share for the third quarter, representing an increase of 10%. The third quarter 2024 dividend is payable on October 3, 2024, for shareholders of record on September 16, 2024.
Guidance
Iron Mountain affirmed full year 2024 guidance, and now expects to be towards the upper end of the full year 2024 guidance range; details are summarized in the table below.
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2024 Guidance(1) |
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($ in millions, except per share data) |
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2024 Guidance |
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Total Revenue |
$6,000 – $6,150 |
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Adjusted EBITDA |
$2,175 – $2,225 |
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AFFO |
$1,300 – $1,335 |
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AFFO Per Share |
$4.39 – $4.51 |
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(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. |
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About Iron Mountain
Iron Mountain Incorporated (NYSE: IRM) is a global leader in information management services. Founded in 1951 and trusted by more than 240,000 customers worldwide, Iron Mountain serves to protect and elevate the power of our customers’ work. Through a range of offerings including digital transformation, data centers, secure records storage, information management, asset lifecycle 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 X (formerly Twitter) and LinkedIn.
