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CORRECTING and REPLACING Iron Mountain Incorporated Hosts Annual Investor Day
Thursday, October 11, 2012, 4:32:02 PM ET
--Company Reiterates Full Year 2012 Guidance Ranges and Provides Preliminary Outlook for 2013
In FY 2013 Preliminary Outlook table, Operating Adjusted EPS should read $1.29 - $1.40 (sted $1.31 - $1.44) and Reported Adjusted EPS should read $1.09 - $1.29 (sted $1.11 - $1.33).
The corrected release reads:
IRON MOUNTAIN INCORPORATED HOSTS ANNUAL INVESTOR DAY
Topics to Include Long-Term Business, Investment and Capital Allocation Strategies, Opportunities as a REIT and Additional Information on Conversion
Company Reiterates Full Year 2012 Guidance Ranges and Provides Preliminary Outlook for 2013
Iron Mountain Incorporated (IRM), the information management company, is hosting an Investor Day today in New York City. This gathering of Company management, investors and securities analysts features management presentations covering a variety of important topics related to the Companys strategy, execution and financial performance. During the presentations, the Company will describe its long-term strategy and provide additional information on its potential conversion to a Real Estate Investment Trust ("REIT"). The Company also will preview expectations for its 2013 financial performance while reiterating its 2012 outlook.
In a separate news release, the Company announced that its Board of Directors declared a special dividend of $700 million, or approximately $4.07 per share based on the number of shares currently outstanding. This special dividend represents the initial distribution to satisfy the requirement that the Company pay to stockholders its accumulated earnings and profits ("E&P") should the Company be successful in its planned conversion to a REIT.
For 2012, the Companys outlook is tracking within its most recently issued guidance ranges. The Company will provide more detail related to its 2012 outlook when it reports third quarter financial results on October 31, 2012. The Company increased its expected range of REIT conversion costs in 2012 based on the current pace of its implementation programs.
The Company is confirming the following financial performance expectations previously issued on July 26, 2012 (dollars in millions, except per share data):
FY 2012 Outlook -------------------------------------------- Operating(1) Items Reported C$ Growth(1) (ex Paper) ------------- --------------- ------------- ----------------------- Revenues $2,990-$3,040 $2,990-$3,040 2% - 4% Adjusted OIBDA $890 - $930 $(25)-$(30) $860 - $905 (1)% - 3% Adjusted EPS $1.20 - $1.36 $(0.09)-$(0.10) $1.10 - $1.27 FCF $320 - $360 $(105)-$(110) $210 - $255 Capital Expenditures $225 $10 $235 (1) Excludes costs associated with the Companys 2011 proxy contest, the work of the Special Committee of the Board of Directors and the proposed REIT conversion.
During Investor Day, Iron Mountain also will preview its outlook for its 2013 financial performance. The Company is planning for consistent revenue trends including sustained storage rental growth of approximately 3% and flat service revenues. Adjusted OIBDA is expected to grow in line with revenues. North America is expected to sustain its profit levels, and gains from international margin expansion will be reinvested to support long-term storage rental growth. The 2013 Adjusted EPS outlook range was calculated assuming the current 172 million shares outstanding and does not include any impacts from the separately announced E&P distribution scheduled for later this year. This preliminary guidance does not include any projected impact from potential future acquisitions. The Company is targeting continued improvement in capital efficiency and is planning to invest $30 million to expand its underground wholesale data center space in support of additional rental revenues. As expected, the majority of the expenditures associated with the REIT conversion will be made in 2013.
For its full year 2013, the Company currently expects the following (dollars in millions, except per share data):
FY 2013 Preliminary Outlook -------------------------------------------- Operating(1) Items Reported C$ Growth (ex Paper) ------------- --------------- ------------- -------------------- Revenues $3,020-$3,100 $3,020-$3,100 1% - 3% Adjusted OIBDA $905 - $935 $(30)-$(55) $850 - $905 0% - 3% Adjusted EPS $1.29 - $1.40 $(0.11)-$(0.20) $1.09 - $1.29 FCF(2) $320 - $360 $(165)-$(210) $110 - $195 Capital Expenditures(3) $255 $20-$30 $275-$285 (1) Excludes costs associated with the proposed REIT conversion. (2)Includes depreciation and amortization recapture tax payments of approximately $115 million to $145 million. (3)Includes approximately $65 million for real estate.
The Company will make an audio cast of its Investor Day presentation available on its website (www.ironmountain.com). Please check the website for details regarding the timing of the posting of the audio cast. The slides that will be presented at the conference will also be posted to the website and available for viewing after 8:30 A.M. on Thursday, October 11, 2012.
About Iron Mountain
Iron Mountain Incorporated (IRM) provides information management services that help organizations lower the costs, risks and inefficiencies of managing their physical and digital data. The Companys solutions enable customers to protect and better use their information--regardless of its format, location or lifecycle stage--so they can optimize their business and ensure proper recovery, compliance and discovery. Founded in 1951, Iron Mountain manages billions of information assets, including business records, electronic files, medical data, emails and more for organizations around the world. Visit www.ironmountain.com.
Forward Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws and is subject to the safe-harbor created by such Act. Forward-looking statements include confirmation of the Companys 2012 financial performance outlook, preview of the Companys 2013 financial performance outlook and statements regarding the Companys operations, economic performance, financial condition, goals, beliefs, future growth strategies, investment objectives, plans and current expectations, such as the Companys (1) expected increase in storage rental growth, (2) estimated amount of expenditures to expand underground wholesale data center space and (3) estimated range of the Companys tax and other costs in 2013 in connection with its proposed conversion to a REIT. The forward-looking statements are subject to various known and unknown risks, uncertainties and other factors. When the Company use words such as "believes," "expects," "anticipates," "estimates" or similar expressions, it is making forward-looking statements. Although it believes that its forward-looking statements are based on reasonable assumptions, the Companys expected results may not be achieved, and actual results may differ materially from its expectations. Important factors that could cause actual results to differ from expectations include, among others: (i) the cost to comply with current and future laws, regulations and customer demands relating to privacy issues; (ii) the impact of litigation or disputes that may arise in connection with incidents in which the Company fails to protect its customers information; (iii) changes in the price for its services relative to the cost of providing such services; (iv) changes in customer preferences and demand for its services; (v) the adoption of alternative technologies and shifts by its customers to storage of data through non-paper based technologies; (vi) the cost or potential liabilities associated with real estate necessary for its business; (vii) the performance of business partners upon whom it depends for technical assistance or management expertise outside the U.S.; (viii) changes in the political and economic environments in the countries in which its international subsidiaries operate; (ix) with regard to its estimated tax and other REIT-conversion costs, its estimates may not be accurate, and such costs may turn out to be materially different than the estimates due to unanticipated outcomes in the private letter rulings, changes in its support functions and support costs, the unsuccessful execution of internal planning, including restructurings and cost reduction initiatives, or other factors; (x) claims that its technology violates the intellectual property rights of a third party; (xi) other trends in competitive or economic conditions affecting its financial condition or results of operations not presently contemplated; and (xii) other risks described more fully in the documents that the Company files with the Securities and Exchange Commission (the "SEC") from time to time, including the "Risk Factors" and "Cautionary Note Regarding Forward Looking Statements" sections in the Companys Annual Report on Form 10-K for the year ended December 31, 2011, filed with the SEC on February 28, 2012, the "Cautionary Note Regarding Forward Looking Statements" section in the Companys Current Report on Form 8-K filed with the SEC on June 5, 2012 and the "Risk Factors" section in the Companys Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, filed with the SEC on August 1, 2012. Except as required by law, the Company undertakes no obligation to release publicly the result of any revision to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
SOURCE: Iron Mountain Incorporated
Iron Mountain Investor Relations: Stephen P. Golden, 617-535-4799 Vice President, Investor Relations firstname.lastname@example.org