Press Releases
Iron Mountain Incorporated reports third quarter 2006 financial results
Total Revenues are $596 Million, Up 13 per centOperating Income is $97 Million
OIBDA is $150 Million; 25.2 per cent of Revenues
Net Income is $0.20 per Diluted Share
November 1, 2006 - Iron Mountain Incorporated (NYSE: IRM), the global leader in information protection and storage services, today announced its financial results for the third quarter ended September 30, 2006, reporting higher revenues, strong storage internal revenue growth and net income for the quarter of $0.20 per diluted share.
Iron Mountain’s total consolidated revenues for the quarter ended September 30, 2006 grew to $596 million, an increase of 13 per cent compared to the quarter ended September 30, 2005. For the quarter, storage revenues grew 14 per cent and service revenues grew 12 per cent compared to the same period in 2005. Storage revenues, which are considered a key performance indicator for the information protection and storage services industry, are largely recurring since customers typically retain their records for many years. This marks the 71st consecutive quarter for which the Company has reported increased storage revenues.
For the third quarter of 2006, the storage and service revenue internal growth rates were 11 per cent and 3 per cent, respectively, yielding a total internal revenue growth rate of 7 per cent. The total core storage and services revenue internal growth rate was 9 per cent for the quarter. The service internal growth rate and the total internal growth rate were both impacted by a large data restoration project completed by the Company’s digital business in the third quarter of 2005 that did not repeat in 2006.
“Our business continues to perform as expected and as we forecasted at our Investor Day earlier this month. Strong revenue growth, particularly in storage revenues, a key driver of our business, remains a highlight as our customer facing investments continue to generate the anticipated results,” stated Richard Reese, the Company’s Chairman and CEO. “We are confident that our on-going growth and productivity investments, which are designed to enhance our ability to drive long-term, increasingly profitable growth and ultimately higher shareholder value, will generate similar success.”
Operating income before depreciation and amortisation (“OIBDA”) was $150 million, or 25.2 per cent of revenues, for the quarter ended September 30, 2006 compared to $148 million, or 28.1 per cent of revenues, for the quarter ended September 30, 2005.
Operating income for the third quarter of 2006 was $97 million, or 16 per cent of revenues, compared to $102 million, or 19 per cent of revenues, for the same period in 2005. Net income for the quarter was $27 million, or $0.20 per diluted share, compared to $36 million, or $0.27 per diluted share, for the same period in 2005.
Included in net income for the quarter is $1 million, or less than $0.01 per diluted share, of other expense, net comprised primarily of charges related to the early extinguishment of debt associated with the Company’s financing activities partially offset by foreign currency related net gains. The foreign currency related gains were due primarily to the strengthening of the British Pound Sterling compared to June 30, 2006. Included in net income for the quarter ended September 30, 2005, is $7 million, or $0.03 per diluted share, of other income, net comprised primarily of foreign currency related net gains, due mainly to the strengthening of the Canadian Dollar.
For the nine months ended September 30, 2006, the Company reported total consolidated revenues of $1.7 billion, an increase of 13 per cent compared to the prior year. Storage revenues and service revenues also grew 13 per cent for the first nine months of 2006 compared to the prior year. For the first nine months of the year, storage and service revenue internal growth rates were 10 per cent and 6 per cent, respectively, yielding a total internal revenue growth rate of 9 per cent.
OIBDA was $447 million, or 25.7 per cent of revenues, for the nine months ended September 30, 2006 compared to $425 million, or 27.6 per cent of revenues, for the nine months ended September 30, 2005.
Operating income for the first nine months of 2006 was $292 million, or 17 per cent of revenues, compared to $290 million, or 19 per cent of revenues, for 2005. Net income was $92 million, or $0.69 per diluted share, for the first nine months of 2006, compared to $85 million, or $0.64 per diluted share, for the comparable period in 2005.
Included in net income for the nine months ended September 30, 2006, is $9 million, or $0.04 per diluted share, of other income, net comprised primarily of foreign currency related net gains, due mainly to the strengthening of the British Pound Sterling and the Canadian Dollar, partially offset by charges related to the early extinguishment of debt associated with the Company’s financing activities. Included in net income for the nine months ended September 30, 2005, is $3 million, or $0.01 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 and the Euro offset by the strengthening of the Canadian Dollar.
In line with its strategy, Iron Mountain acquires attractive businesses that provide a strong platform for future growth by expanding the Company’s geographic footprint and service offerings while enhancing its existing operations. During the third quarter, the Company completed several small shredding and records management business acquisitions in North America.
