BOSTON, April 25, 2019
/PRNewswire/ -- Iron Mountain Incorporated (NYSE: IRM), the
storage and information management services company, announces
financial and operating results for the first quarter of 2019. 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.
"In the first quarter, our revenue performance was slightly
ahead of our expectations due in part to stronger volume and
revenue management," said William L.
Meaney, president and CEO of Iron Mountain. "Unfortunately,
we experienced temporary higher labor costs in our North America businesses in March, which
contributed to an approximately $10
million variance in Adjusted EBITDA compared to our internal
expectations. We are disappointed by this negative impact to our
otherwise strong performance. We are confident in our ability to
rectify this issue over the remainder of the year, and therefore we
have maintained our outlook for full-year financial
performance."
Financial Performance Highlights for the First Quarter of
2019
- Total reported Revenues for the first quarter were $1.05 billion, compared with $1.04 billion in the first quarter of 2018.
Excluding the impact of foreign exchange (FX), reported total
Revenues grew 4.5% compared to the prior year, primarily reflecting
the contribution from recent Data Center and Adjacent Business
acquisitions not included in the full 2018 period, as well as
growth in the Other International Business segment.
- Income from Continuing Operations for the first quarter was
$30.5 million, compared with
$45.6 million in the first quarter of
2018, primarily due to increased operating and interest expense, as
well as an increase in the provision for income taxes. In addition,
Income from Continuing Operations included $2.7 million of Significant Acquisition Costs in
the first quarter of 2019, compared with $19.0 million in the first quarter of 2018.
- Adjusted EBITDA for the first quarter was $324.5 million, compared with $343.0 million in the first quarter of 2018. On a
constant currency basis, Adjusted EBITDA decreased by 2.6%,
primarily reflecting the impact of increased SG&A
expenses.
- Reported EPS - Fully Diluted from Continuing Operations for the
first quarter was $0.10 compared with
$0.16 in the first quarter of 2018.
Reported EPS in the first quarter of 2019 was impacted by the items
noted above in Income from Continuing Operations.
- Adjusted EPS for the first quarter was $0.17, compared with $0.24 in the first quarter of 2018. The
structural tax rate was 18.9% in the first quarter of 2019,
compared with 19.5% in the first quarter of 2018.
- Net Income for the first quarter was $30.5 million compared with $45.2 million in the first quarter of 2018,
reflecting the same impacts as noted for Reported EPS above.
- FFO (Normalized) per share was $0.48 for the first quarter, compared with
$0.53 in the first quarter of
2018.
- AFFO was $193.4 million for the
first quarter compared with $221.5
million in the first quarter of 2018, a decrease of
12.7%.
Guidance
Iron Mountain maintained its 2019 full-year guidance, and
expects, on a constant currency basis, revenue growth of 1% to 6%.
In addition, Iron Mountain expects constant currency Adjusted
EBITDA growth to be flat to 8% and AFFO growth to be up 1% to 8%.
Iron Mountain expects stronger Adjusted EBITDA growth in the second
half of the year after expected ongoing expenses in the second
quarter, which are a residual effect of the higher costs incurred
in March. Additional guidance details are available on Page 6
of the Q1 2019 supplemental financial information.
About Iron Mountain
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 1,450 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
information management, digital transformation, secure
storage, 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.
Investor Relations
Contacts:
|
|
Greer Aviv
|
Anjaneya Singh,
CFA
|
Senior Vice
President, Investor Relations
|
Director, Investor
Relations
|
greer.aviv@ironmountain.com
|
anjaneya.singh@ironmountain.com
|
(617)
535-2887
|
(617)
535-8577
|
|
|
Media
Contacts:
|
|
Christian T.
Potts
|
|
Director, Corporate
Communications
|
|
Christian.Potts@ironmountain.com
|
|
(617)
535-8721
|
|
Forward Looking Statements
Safe Harbor Statement Under the Private Securities Litigation
Reform Act of 1995: This release contains certain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 and other securities laws and is subject to the
safe-harbor created by such Act. Forward-looking statements
include, but are not, limited to, our financial performance outlook
and statements concerning our operations, economic performance,
financial condition, goals, beliefs, future growth strategies,
investment objectives, plans and current expectations, such as 2019
guidance, and statements about our investments, cost savings
initiatives, and other goals. These forward-looking
statements are subject to various known and unknown risks,
uncertainties and other factors. When we use words such as
"believes," "expects," "anticipates," "estimates" or similar
expressions, we are making forward-looking statements. Although we
believe that our forward-looking statements are based on reasonable
assumptions, our expected results may not be achieved, and actual
results may differ materially from our expectations. In addition,
important factors that could cause actual results to differ from
expectations include, among others: (i) our ability to remain
qualified for taxation as a real estate investment trust for U.S.
federal income tax purposes; (ii) the adoption of alternative
technologies and shifts by our customers to storage of data through
non-paper based technologies; (iii) changes in customer preferences
on and demand for our storage and information management services;
(iv) the cost to comply with current and future laws, regulations
and customer demands relating to data security and privacy issues,
as well as fire and safety standards; (v) the impact of litigation
or disputes that may arise in connection with incidents in which we
fail to protect our customers' information or our internal records
or IT systems and the impact of such incidents on our reputation
and ability to compete; (vi) changes in the price for our storage
and information management services relative to the cost of
providing such storage and information management services; (vii)
changes in the political and economic environments in the countries
in which our international subsidiaries operate and changes in the
global political climate; (viii) our ability or inability to manage
growth, expand internationally, complete acquisitions on
satisfactory terms and to close pending acquisitions and to
integrate acquired companies efficiently; (ix) changes in the
amount of our growth and recurring capital expenditures and our
ability to invest according to plan; (x) our ability to comply with
our existing debt obligations and restrictions in our debt
instruments or to obtain additional financing to meet our working
capital needs; (xi) the impact of service interruptions or
equipment damage and the cost of power on our data center
operations; (xii) changes in the cost of our debt; (xiii) the
impact of alternative, more attractive investments on dividends;
(xiv) the cost or potential liabilities associated with real estate
necessary for our business; (xv) the performance of business
partners upon whom we depend for technical assistance or management
expertise outside the United
States; (xvi) other trends in competitive or economic
conditions affecting our financial condition or results of
operations not presently contemplated; and (xvii) other risks
described more fully in our filings with the Securities and
Exchange Commission, including under the caption "Risk Factors" in
our periodic reports or incorporated therein. You should not
rely upon forward-looking statements except as statements of our
present intentions and of our present expectations, which may or
may not occur. Except as required by law, we undertake 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.
Consolidated
Balance Sheets
|
|
(Unaudited;
dollars in thousands)
|
|
|
3/31/2019
|
|
12/31/2018
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and Cash
Equivalents
|
$161,475
|
|
$165,485
|
Accounts Receivable,
Net
|
837,521
|
|
846,889
|
Other Current
Assets
|
210,854
|
|
195,740
|
Total Current
Assets
|
$1,209,850
|
|
$1,208,114
|
Property, Plant and
Equipment:
|
|
|
|
Property, Plant and
Equipment
|
$7,738,705
|
|
$7,600,949
|
Less: Accumulated
Depreciation
|
(3,213,122)
|
|
(3,111,392)
|
Property, Plant and
Equipment, Net
|
$4,525,583
|
|
$4,489,557
|
Other Assets,
Net:
|
|
|
|
Goodwill
|
$4,465,378
|
|
$4,441,030
|
Customer
Relationships, Customer Inducements and Data Center Lease-Based
Intangibles
|
1,495,338
|
|
1,506,522
|
Operating Lease
Right-of-use Assets
|
1,791,536
|
|
—
|
Other
|
201,678
|
|
207,024
|
Total Other Assets,
Net
|
$7,953,930
|
|
$6,154,576
|
Total
Assets
|
$13,689,363
|
|
$11,852,247
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Current Portion of
Long-term Debt
|
$125,142
|
|
$126,406
|
Accounts
Payable
|
283,709
|
|
318,765
|
Accrued Expenses and
Other Current Liabilities
|
839,968
|
|
752,684
|
Deferred
Revenue
|
266,314
|
|
264,823
|
Total Current
Liabilities
|
$1,515,133
|
|
$1,462,678
|
Long-term Debt, Net
of Current Portion
|
8,365,737
|
|
8,016,417
|
Long-term Operating
Lease Liabilities
|
1,656,659
|
|
—
|
Other Long-term
Liabilities (1)
|
391,100
|
|
487,563
|
Total Long-term
Liabilities
|
$10,413,496
|
|
$8,503,980
|
Total
Liabilities
|
11,928,629
|
|
9,966,658
|
Equity
|
|
|
|
Total Stockholders'
Equity
|
1,759,401
|
|
1,884,180
|
Noncontrolling
Interests
|
$1,333
|
|
$1,409
|
Total
Equity
|
$1,760,734
|
|
$1,885,589
|
Total Liabilities
and Equity
|
$13,689,363
|
|
$11,852,247
|
|
(1) Includes
redeemable noncontrolling interests of $73.1mm and $70.5mm as of
March 31, 2019 and December 31, 2018, respectively.
|
Consolidated
Statements of Operations
|
|
(Unaudited;
dollars in thousands, except per-share data)
|
|
|
Q1
2019
|
|
Q1
2018
|
|
%
Change
|
Revenues:
|
|
|
|
|
|
Storage
Rental
|
$662,974
|
|
$651,149
|
|
1.8
|
%
|
Service
|
390,889
|
|
391,309
|
|
(0.1)
|
%
|
Total
Revenues
|
$1,053,863
|
|
$1,042,458
|
|
1.1
|
%
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
Cost of Sales
(excluding Depreciation and Amortization) (1)
|
$461,544
|
|
$448,721
|
|
2.9
|
%
|
Selling, General and
Administrative (2)
|
270,559
|
|
269,730
|
|
0.3
|
%
|
Depreciation and
Amortization
|
162,483
|
|
160,578
|
|
1.2
|
%
|
Loss (Gain) on
Disposal/Write-Down of PP&E, Net
|
602
|
|
(1,130)
|
|
n/a
|
Total Operating
Expenses
|
$895,188
|
|
$877,899
|
|
2.0
|
%
|
|
|
|
|
|
|
Operating Income
(Loss)
|
$158,675
|
|
$164,559
|
|
(3.6)
|
%
|
Interest Expense,
Net
|
102,436
|
|
97,626
|
|
4.9
|
%
|
Foreign Currency
Transaction Loss / (Gain)
|
17,698
|
|
21,785
|
|
(18.8)
|
%
|
Other (Income)
Expense, Net
|
(2,488)
|
|
(1,634)
|
|
52.3
|
%
|
Income (Loss)
before Provision (Benefit) for Income Taxes
|
$41,029
|
|
$46,782
|
|
(12.3)
|
%
|
Provision (Benefit)
for Income Taxes
|
10,553
|
|
1,168
|
|
n/a
|
Income (Loss) from
Continuing Operations
|
$30,476
|
|
$45,614
|
|
(33.2)
|
%
|
(Loss) Income from
Discontinued Operations, Net of Tax
|
(24)
|
|
(462)
|
|
(94.8)
|
%
|
Net Income
(Loss)
|
30,452
|
|
45,152
|
|
(32.6)
|
%
|
Less: Net Income
(Loss) Attributable to Noncontrolling Interests
|
891
|
|
468
|
|
90.5
|
%
|
Net Income (Loss)
Attributable to Iron Mountain Incorporated
|
$29,561
|
|
$44,684
|
|
(33.8)
|
%
|
|
|
|
|
|
|
Earnings (Losses)
per Share - Basic:
|
|
|
|
|
|
Income (Loss) from
Continuing Operations
|
$0.10
|
|
$0.16
|
|
(37.5)
|
%
|
Total Income (Loss)
from Discontinued Operations
|
—
|
|
—
|
|
n/a
|
Net Income (Loss)
Attributable to Iron Mountain Incorporated
|
$0.10
|
|
$0.16
|
|
(37.5)
|
%
|
|
|
|
|
|
|
Earnings (Losses)
per Share - Diluted:
|
|
|
|
|
|
Income (Loss) from
Continuing Operations
|
$0.10
|
|
$0.16
|
|
(37.5)
|
%
|
Total Income (Loss)
from Discontinued Operations
|
—
|
|
—
|
|
n/a
|
Net Income (Loss)
Attributable to Iron Mountain Incorporated
|
$0.10
|
|
$0.16
|
|
(37.5)
|
%
|
|
|
|
|
|
|
Weighted Average
Common Shares Outstanding - Basic
|
286,528
|
|
285,259
|
|
0.4
|
%
|
Weighted Average
Common Shares Outstanding - Diluted
|
287,492
|
|
285,993
|
|
0.5
|
%
|
|
(1) Includes
Significant Acquisition Costs of $0.9mm and $0.3mm in Q1 2019 and
Q1 2018, respectively.
|
(2) Includes
Significant Acquisition Costs of $1.8mm and $18.7mm in Q1 2019 and
Q1 2018, respectively.
|
Reconciliation of
Income from Continuing Operations to Adjusted EBITDA
|
|
(Dollars in
thousands)
|
|
|
Q1
2019
|
|
Q1
2018
|
|
%
Change
|
|
|
|
|
|
|
Income from
Continuing Operations
|
$30,476
|
|
$45,614
|
|
(33.2)
|
%
|
|
|
|
|
|
|
Add /
(Deduct):
|
|
|
|
|
|
Provision (Benefit)
for Income Taxes
|
10,553
|
|
1,168
|
|
n/a
|
Foreign Currency
Transaction Loss / (Gain)
|
17,698
|
|
21,785
|
|
(18.8)
|
%
|
Other (Income)
Expense, Net (1)
|
(2,488)
|
|
(1,634)
|
|
52.3
|
%
|
Interest Expense,
Net
|
102,436
|
|
97,626
|
|
4.9
|
%
|
Loss (Gain) on
Disposal/Write-Down of PP&E, Net
|
602
|
|
(1,130)
|
|
n/a
|
Depreciation and
Amortization
|
162,483
|
|
160,578
|
|
1.2
|
%
|
Significant
Acquisition Costs
|
2,746
|
|
19,008
|
|
(85.6)
|
%
|
Adjusted
EBITDA
|
$324,506
|
|
$343,015
|
|
(5.4)
|
%
|
|
(1) Excludes realized
and unrealized FX (gains) losses.
|
Adjusted EBITDA
Adjusted EBITDA is defined as income (loss) from continuing
operations before interest expense, net, provision (benefit) for
income taxes, depreciation and amortization, and also excludes
certain items that we believe are not indicative of our core
operating results, specifically: (i) (gain) loss on
disposal/write-down of property, plant and equipment (including
real estate), net; (ii) intangible impairments; (iii) other
(income) expense, net (which includes foreign currency transaction
(gains) losses, net); and (iv) Significant Acquisition Costs.
Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by
total revenues. We use multiples of current or projected Adjusted
EBITDA in conjunction with our discounted cash flow models to
determine our estimated overall enterprise valuation and to
evaluate acquisition targets. We believe Adjusted EBITDA and
Adjusted EBITDA Margin provide our current and potential investors
with relevant and useful information regarding our ability to
generate cash flow to support business investment. These measures
are an integral part of the internal reporting system we use to
assess and evaluate the operating performance of our business.
Adjusted EBITDA excludes both interest expense, net and the
provision (benefit) for income taxes. These expenses are associated
with our capitalization and tax structures, which we do not
consider when evaluating the operating profitability of our core
operations. Finally, Adjusted EBITDA does not include depreciation
and amortization expenses, in order to eliminate the impact of
capital investments, which we evaluate by comparing capital
expenditures to incremental revenue generated and as a percentage
of total revenues. Adjusted EBITDA and Adjusted EBITDA Margin
should be considered in addition to, but not as a substitute for,
other measures of financial performance reported in accordance with
GAAP, such as operating income, income (loss) from continuing
operations, net income (loss) or cash flows from operating
activities from continuing operations (as determined in accordance
with GAAP).
Reconciliation of
Reported Earnings per Share to Adjusted Earnings per
Share
|
|
|
Q1
2019
|
|
Q1
2018
|
|
%
Change
|
|
|
|
|
|
|
Reported EPS -
Fully Diluted from Continuing Operations
|
$0.10
|
|
$0.16
|
|
(37.5)
|
%
|
|
|
|
|
|
|
Add /
(Deduct):
|
|
|
|
|
|
Income (Loss)
Attributable to Noncontrolling Interests
|
—
|
|
—
|
|
|
Foreign Currency
Transaction Loss / (Gain)
|
0.06
|
|
0.08
|
|
|
Other (Income)
Expense, Net
|
(0.01)
|
|
(0.01)
|
|
|
Loss (Gain) on
Disposal/Write-Down of PP&E, Net
|
—
|
|
—
|
|
|
Significant
Acquisition Costs
|
0.01
|
|
0.07
|
|
|
Tax Impact of
Reconciling Items and Discrete Tax Items (1)
|
—
|
|
(0.05)
|
|
|
Adjusted EPS -
Fully Diluted from Continuing Operations
|
$0.17
|
|
$0.24
|
|
(29.2)
|
%
|
|
(1) The difference
between our effective tax rates and our structural tax rate (or
adjusted effective tax rates) for the three months ended March 31,
2019 and 2018, respectively, is primarily due to (i) the
reconciling items above, which impact our reported income (loss)
from continuing operations before provision (benefit) for income
taxes but have an insignificant impact on our reported provision
(benefit) for income taxes and (ii) other discrete tax items. Our
structural tax rate for purposes of the calculation of Adjusted EPS
for the three months ended March 31, 2019 and 2018 was 18.9% and
19.5%, respectively.
|
Adjusted Earnings Per Share, or Adjusted EPS
Adjusted EPS is defined as reported earnings per share fully
diluted from continuing operations excluding: (i) (gain) loss on
disposal/write-down of property, plant and equipment (including
real estate), net; (ii) intangible impairments; (iii) other
(income) expense, net (which includes foreign currency transaction
(gains) losses, net); (iv) Significant Acquisition Costs; and (v)
the tax impact of reconciling items and discrete tax items.
Adjusted EPS includes income (loss) attributable to noncontrolling
interests. We do not believe these excluded items to be indicative
of our ongoing operating results, and they are not considered when
we are forecasting our future results. We believe Adjusted EPS is
of value to our current and potential investors when comparing our
results from past, present and future periods.
Reconciliation of
Net Income Attributable to IRM to FFO and AFFO
|
|
|
Q1
2019
|
|
Q1
2018
|
|
%
Change
|
|
|
|
|
|
|
Net
Income
|
$30,452
|
|
$45,152
|
|
(32.6)
|
%
|
Add /
(Deduct):
|
|
|
|
|
|
Real Estate
Depreciation (1)
|
73,079
|
|
69,533
|
|
|
Loss (Gain) on Sale
of Real Estate, Net of Tax
|
—
|
|
—
|
|
|
Data Center
Lease-Based Intangible Asset Amortization (2)
|
12,609
|
|
10,838
|
|
|
|
|
|
|
|
|
FFO
(Nareit)
|
$116,140
|
|
$125,523
|
|
(7.5)
|
%
|
Add /
(Deduct):
|
|
|
|
|
|
Loss (Gain) on
Disposal/Write-Down of PP&E, Net
|
602
|
|
(1,130)
|
|
|
Foreign Currency
Transaction Loss / (Gain)
|
17,698
|
|
21,785
|
|
|
Other (Income)
Expense, Net
|
(2,488)
|
|
(1,634)
|
|
|
Tax Impact of
Reconciling Items and Discrete Tax Items (3)
|
(709)
|
|
(15,379)
|
|
|
Loss (Income) from
Discontinued Operations, Net of Tax
|
24
|
|
462
|
|
|
Real Estate Financing
Lease Depreciation
|
3,504
|
|
3,446
|
|
|
Significant
Acquisition Costs
|
2,746
|
|
19,008
|
|
|
|
|
|
|
|
|
FFO
(Normalized)
|
$137,517
|
|
$152,081
|
|
(9.6)
|
%
|
|
|
|
|
|
|
Per Share Amounts
(Fully Diluted Shares)
|
|
|
|
|
|
FFO
(Nareit)
|
$0.40
|
|
$0.44
|
|
(9.1)
|
%
|
FFO
(Normalized)
|
$0.48
|
|
$0.53
|
|
(9.4)
|
%
|
|
|
|
|
|
|
Weighted Average
Common Shares Outstanding - Basic
|
286,528
|
|
285,259
|
|
0.4
|
%
|
Weighted Average
Common Shares Outstanding - Diluted
|
287,492
|
|
285,993
|
|
0.5
|
%
|
|
(1) Includes
depreciation expense related to owned real estate assets (land
improvements, buildings, building improvements, leasehold
improvements and racking), excluding depreciation related to
financing leases.
|
(2) Includes
amortization expense for Data Center In-Place Lease Intangible
Assets and Data Center Tenant Relationship Intangible
Assets.
|
(3) Represents the
tax impact of (i) the reconciling items above, which impact our
reported income (loss) from continuing operations before provision
(benefit) for income taxes but have an insignificant impact on our
reported provision (benefit) from income taxes and (ii) other
discrete tax items.
|
Funds From Operations, or FFO (Nareit), and FFO
(Normalized)
Funds from operations ("FFO") is defined by the National
Association of Real Estate Investment Trusts ("Nareit") and us as
net income (loss) excluding depreciation on real estate assets,
gains on sale of real estate, net of tax and amortization of data
center leased-based intangibles ("FFO (Nareit)"). FFO (Nareit) does
not give effect to real estate depreciation because these amounts
are computed, under GAAP, to allocate the cost of a property over
its useful life. Because values for well-maintained real estate
assets have historically increased or decreased based upon
prevailing market conditions, we believe that FFO (Nareit) provides
investors with a clearer view of our operating performance. Our
most directly comparable GAAP measure to FFO (Nareit) is net income
(loss). Although Nareit has published a definition of FFO,
modifications to FFO (Nareit) are common among REITs as companies
seek to provide financial measures that most meaningfully reflect
their particular business. Our definition of FFO (Normalized)
excludes certain items included in FFO (Nareit) that we believe are
not indicative of our core operating results, specifically: (i)
(gain) loss on disposal/write-down of property, plant and equipment
(excluding real estate), net; (ii) intangible impairments; (iii)
other expense (income), net (which includes foreign currency
transaction (gains) losses, net); (iv) real estate financing lease
depreciation; (v) Significant Acquisition Costs; (vi) the tax
impact of reconciling items and discrete tax items; (vii) loss
(income) from discontinued operations, net of tax; and (viii) loss
(gain) on sale of discontinued operations, net of tax.
FFO (Normalized) per share
FFO (Normalized) divided by weighted average fully-diluted
shares outstanding.
Reconciliation of
Net Income Attributable to IRM to FFO and AFFO
(continued)
|
|
|
|
Q1
2019
|
|
Q1
2018
|
|
%
Change
|
|
|
|
|
|
|
FFO
(Normalized)
|
$137,517
|
|
$152,081
|
|
(9.6)
|
%
|
Add /
(Deduct):
|
|
|
|
|
|
Non-Real Estate
Depreciation
|
38,028
|
|
40,453
|
|
|
Amortization Expense
(1)
|
31,317
|
|
32,721
|
|
|
Amortization of
Deferred Financing Costs
|
4,108
|
|
3,553
|
|
|
Revenue Reduction
Associated with Amortization of Permanent Withdrawal Fees and
Above - and Below-Market Leases
|
3,645
|
|
3,664
|
|
|
Non-Cash Rent Expense
(Income)
|
(617)
|
|
(1,258)
|
|
|
Stock-based
Compensation Expense
|
8,519
|
|
7,384
|
|
|
Reconciliation to
Normalized Cash Taxes
|
(3,879)
|
|
5,948
|
|
|
Less:
|
|
|
|
|
|
Non-Real Estate
Growth Investment (2)
|
9,406
|
|
7,651
|
|
|
Real Estate, Data
Center and Non-Real Estate Recurring CapEx
|
15,833
|
|
15,392
|
|
|
AFFO
|
$193,399
|
|
$221,503
|
|
(12.7)
|
%
|
|
(1) Includes Customer
Relationship Value, intake costs, acquisition of customer
relationships, and other intangibles. Excludes amortization of
capitalized commissions of $3.9mm and $3.6mm in Q1 2019 and Q1
2018, respectively.
|
(2) Non-Real Estate
Growth Investment (i) excludes integration CapEx included in
Significant Acquisition Costs of $1.9mm in Q1 2018, and (ii)
includes Non-Real Estate Growth Investment associated with the
Global Data Center Business segment of $0.6mm and $1.3mm in Q1 2019
and Q1 2018, respectively.
|
Adjusted Funds From Operations, or AFFO
AFFO is defined as FFO (Normalized) excluding non-cash rent
expense or income plus depreciation on non-real estate assets,
amortization expense associated with customer relationship value
(CRV), intake costs, acquisitions of customer relationships and
other intangibles, and excluding amortization expense associated
with capitalized internal commissions, amortization of deferred
financing costs, revenue reduction associated with amortization of
permanent withdrawal fees and above-and below-market data center
leases, stock-based compensation expense and the impact of
reconciling to normalized cash taxes, less recurring capital
expenditures and non-real estate growth investments (on a cash
basis), excluding Significant Acquisition Capital Expenditures. We
believe AFFO is a useful measure in determining our ability to
generate excess cash that may be used for reinvestment in the
business, discretionary deployment in investments such as real
estate or acquisition opportunities, returning capital to our
stockholders and voluntary prepayments of indebtedness.
Additionally AFFO is reconciled to cash flow from operations to
adjust for real estate and REIT tax adjustments, Significant
Acquisition Costs and other non-cash expenses. AFFO does not
include adjustments for customer inducements, acquisition of
customer relationships and investment in innovation as we consider
these expenditures to be growth related.
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content:http://www.prnewswire.com/news-releases/iron-mountain-reports-first-quarter-2019-results-300837950.html
SOURCE Iron Mountain Incorporated