Iron Mountain Reports Fourth Quarter and Full Year 2024 Results
Iron Mountain (NYSE: IRM) reported strong Q4 and full year 2024 results with record-breaking performance. Q4 revenue reached $1.6 billion, up 11.4% year-over-year, while full-year revenue hit $6.1 billion, increasing 12.2%. The company achieved Q4 net income of $106 million and full-year net income of $184 million.
Record quarterly and full-year Adjusted EBITDA were $605 million and $2.2 billion respectively. Storage rental revenue grew 8.8% and service revenue increased 17.2% in Q4, excluding foreign exchange impacts.
Looking ahead to 2025, Iron Mountain provided guidance projecting revenue growth of 8-11% and Adjusted EBITDA growth of 11-13%. The company also announced a 10% increase in quarterly dividend to $0.785 per share, payable on April 4, 2025.
Iron Mountain (NYSE: IRM) ha riportato risultati solidi per il quarto trimestre e per l'intero anno 2024, con performance da record. Le entrate del quarto trimestre hanno raggiunto 1,6 miliardi di dollari, in aumento dell'11,4% rispetto all'anno precedente, mentre le entrate dell'anno intero hanno toccato 6,1 miliardi di dollari, con un incremento del 12,2%. L'azienda ha registrato un reddito netto di 106 milioni di dollari per il quarto trimestre e un reddito netto di 184 milioni di dollari per l'intero anno.
Il risultato operativo rettificato per il quarto trimestre e per l'intero anno ha raggiunto rispettivamente 605 milioni di dollari e 2,2 miliardi di dollari. Le entrate da affitto di magazzino sono cresciute dell'8,8% e le entrate da servizi sono aumentate del 17,2% nel quarto trimestre, escludendo gli impatti dei cambi valutari.
Guardando al 2025, Iron Mountain ha fornito indicazioni che prevedono una crescita delle entrate tra l'8% e l'11% e una crescita dell'EBITDA rettificato tra l'11% e il 13%. L'azienda ha anche annunciato un aumento del 10% del dividendo trimestrale a 0,785 dollari per azione, pagabile il 4 aprile 2025.
Iron Mountain (NYSE: IRM) reportó resultados sólidos para el cuarto trimestre y para todo el año 2024, con un rendimiento récord. Los ingresos del cuarto trimestre alcanzaron 1.6 mil millones de dólares, un aumento del 11.4% en comparación con el año anterior, mientras que los ingresos del año completo alcanzaron 6.1 mil millones de dólares, incrementándose un 12.2%. La compañía logró una ganancia neta de 106 millones de dólares en el cuarto trimestre y una ganancia neta de 184 millones de dólares para el año completo.
El EBITDA ajustado trimestral y del año completo fue de 605 millones de dólares y 2.2 mil millones de dólares respectivamente. Los ingresos por alquiler de almacenamiento crecieron un 8.8% y los ingresos por servicios aumentaron un 17.2% en el cuarto trimestre, excluyendo los impactos del tipo de cambio.
De cara al 2025, Iron Mountain proporcionó orientación proyectando un crecimiento de ingresos del 8-11% y un crecimiento del EBITDA ajustado del 11-13%. La compañía también anunció un aumento del 10% en el dividendo trimestral a 0.785 dólares por acción, pagadero el 4 de abril de 2025.
아이언 마운틴 (NYSE: IRM)은 2024년 4분기 및 전체 연도에 대해 강력한 실적을 보고하며 기록적인 성과를 달성했습니다. 4분기 매출은 16억 달러에 도달하여 전년 대비 11.4% 증가했으며, 전체 연도 매출은 61억 달러에 이르러 12.2% 증가했습니다. 회사는 4분기 순이익으로 1억 600만 달러, 전체 연도 순이익으로 1억 8400만 달러를 기록했습니다.
4분기 및 전체 연도의 조정된 EBITDA는 각각 6억 500만 달러와 22억 달러에 달했습니다. 저장 임대 수익은 4분기 동안 8.8% 증가했으며, 서비스 수익은 외환 영향을 제외하고 17.2% 증가했습니다.
2025년을 바라보며, 아이언 마운틴은 8-11%의 매출 성장과 11-13%의 조정 EBITDA 성장을 예상하는 가이던스를 제공했습니다. 회사는 또한 분기 배당금을 10% 인상하여 주당 0.785달러로 증가시키며, 2025년 4월 4일에 지급할 예정입니다.
Iron Mountain (NYSE: IRM) a annoncé des résultats solides pour le quatrième trimestre et pour l'année entière 2024, avec des performances record. Le chiffre d'affaires du quatrième trimestre a atteint 1,6 milliard de dollars, en hausse de 11,4 % par rapport à l'année précédente, tandis que le chiffre d'affaires annuel a atteint 6,1 milliards de dollars, soit une augmentation de 12,2 %. La société a enregistré un bénéfice net de 106 millions de dollars au quatrième trimestre et un bénéfice net de 184 millions de dollars pour l'année entière.
Le résultat EBITDA ajusté pour le quatrième trimestre et pour l'année entière s'est élevé respectivement à 605 millions de dollars et 2,2 milliards de dollars. Les revenus locatifs d'entreposage ont augmenté de 8,8 % et les revenus de services ont augmenté de 17,2 % au quatrième trimestre, sans tenir compte des impacts des changes.
En se projetant vers 2025, Iron Mountain a fourni des prévisions projetant une croissance des revenus de 8 à 11 % et une croissance de l'EBITDA ajusté de 11 à 13 %. La société a également annoncé une augmentation de 10% de son dividende trimestriel à 0,785 dollar par action, payable le 4 avril 2025.
Iron Mountain (NYSE: IRM) hat starke Ergebnisse für das vierte Quartal und das gesamte Jahr 2024 gemeldet, mit rekordverdächtigen Leistungen. Im vierten Quartal erreichten die Einnahmen 1,6 Milliarden Dollar, was einem Anstieg von 11,4% im Vergleich zum Vorjahr entspricht, während die Gesamteinnahmen 6,1 Milliarden Dollar erreichten, was einem Anstieg von 12,2% entspricht. Das Unternehmen erzielte im vierten Quartal einen Nettogewinn von 106 Millionen Dollar und einen Nettogewinn von 184 Millionen Dollar für das gesamte Jahr.
Der bereinigte EBITDA für das vierte Quartal und das gesamte Jahr betrug jeweils 605 Millionen Dollar und 2,2 Milliarden Dollar. Die Einnahmen aus Mietlagerung stiegen im vierten Quartal um 8,8% und die Serviceeinnahmen erhöhten sich um 17,2%, ohne die Auswirkungen von Wechselkursen zu berücksichtigen.
Für 2025 gab Iron Mountain eine Prognose ab, die ein Umsatzwachstum von 8-11% und ein EBITDA-Wachstum von 11-13% voraussagt. Das Unternehmen kündigte außerdem eine 10%ige Erhöhung der vierteljährlichen Dividende auf 0,785 Dollar pro Aktie an, die am 4. April 2025 zahlbar ist.
- Record quarterly revenue of $1.6B (+11.4% YoY) and full-year revenue of $6.1B (+12.2% YoY)
- Record Q4 Adjusted EBITDA of $605M (+15.2% YoY)
- Strong service revenue growth of 17.2% in Q4
- 10% dividend increase announced
- Robust 2025 guidance with 8-11% revenue growth projection
- Full-year net income declined 2% to $184M from $187M in 2023
- Q4 Adjusted EPS decreased 4% year-over-year
- Full-year Adjusted EPS declined 3% compared to 2023
Insights
Iron Mountain's Q4 and FY2024 results reveal a compelling growth story underpinned by strategic execution and market expansion. The company achieved record quarterly revenue of $1.6 billion, with the growth rate accelerating to
Several key metrics deserve attention: First, the improvement in Adjusted EBITDA margin to
The company's 2025 guidance projects revenue growth of
Three critical factors support the long-term thesis: 1) The hybrid storage model combining physical and digital solutions creates high switching costs and customer stickiness, 2) The data center business is capitalizing on AI-driven demand growth, and 3) The asset lifecycle management segment is benefiting from increased focus on sustainable IT asset disposition.
However, investors should monitor the company's leverage profile, as total debt increased to
-
Achieves record quarterly and full year revenue of
$1.6 billion $6.1 billion
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Q4 2024 and Full Year 2024 revenue growth of
11.4% and12.2% , respectively, driven by strong performances across global RIM, data center, and asset lifecycle management (ALM) businesses
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Q4 2024 and Full Year 2024 Net Income of
$106 million $184 million
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Delivers record quarterly and full year Adjusted EBITDA of
$605 million $2.2 billion
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Issues strong 2025 guidance with Revenue growth of
8% to11% and Adjusted EBITDA growth of11% to13%
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Excluding the effects of foreign exchange, 2025 guidance for Revenue growth is
10% to12% and Adjusted EBITDA growth is12% to14%
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Increases quarterly dividend per share by
10% based on continued strong growth in AFFO
“We are pleased to report that our fourth quarter and full year 2024 results were an all-time record for Revenue, Adjusted EBITDA, and AFFO. We continue to execute well against our Project Matterhorn growth strategy, delivering double-digit revenue growth in Q4 with strength across each of our business segments. We are grateful to our Mountaineers for their continued dedication to serving our customers, which is driving our outstanding results,” said William L. Meaney, President and CEO of Iron Mountain. “As we look to 2025, we remain committed to continuing to deliver industry leading revenue growth of
Financial Performance Highlights for the Fourth Quarter and Full Year 2024
($ in millions, except per share data)
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Three Months Ended |
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Y/Y % Change |
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Full Year |
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Y/Y % Change |
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12/31/24 |
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12/31/23 |
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Reported $ |
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Constant Fx |
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12/31/24 |
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12/31/23 |
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Reported $ |
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Constant Fx |
Storage Rental Revenue |
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Service Revenue |
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Total Revenue |
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Net Income |
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n/a |
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(2)% |
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Reported EPS |
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n/a |
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(3)% |
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Adjusted EPS |
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(4)% |
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(3)% |
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Adjusted EBITDA |
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Adjusted EBITDA Margin |
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130 bps |
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60 bps |
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AFFO |
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AFFO per share |
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-
Total reported revenues for the fourth quarter were
$1.6 billion $1.4 billion 11.4% . Excluding the impact of foreign currency exchange ("Fx"), total reported revenues increased12.1% compared to the prior year, driven by an8.8% increase in storage rental revenue and a17.2% increase in service revenue. For the full year, total reported revenues increased12.2% , or12.6% excluding the impact of Fx.
-
Net Income for the fourth quarter was
$105.7 million $29.2 million $183.7 million $187.3 million
-
Adjusted EBITDA for the fourth quarter was
$605.1 million $525.2 million 15.2% . On a constant currency basis, Adjusted EBITDA increased by16.2% in the fourth quarter, compared to the fourth quarter of 2023, driven by increased revenue in our Global RIM, ALM, and Data Center businesses. On a constant currency basis, full year Adjusted EBITDA increased14.5% .
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FFO (Normalized) per share was
$0.85 $0.83 $3.15 $3.04 3.6% .
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AFFO was
$368.0 million $327.6 million 12.3% driven by improved Adjusted EBITDA. For the full year, AFFO was$1.34 billion $1.21 billion 11.0% .
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AFFO per share was
$1.24 $1.11 $4.54 $4.12 10.2% .
Dividend
On February 13, 2025, Iron Mountain's Board of Directors declared a quarterly cash dividend of
Guidance
Iron Mountain issued full year 2025 guidance; details are summarized in the table below.
2025 Guidance(1) |
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($ in millions, except per share data) |
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2025 Guidance |
Approximate
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Approximate
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Total Revenue |
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~ |
~ |
Adjusted EBITDA |
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~ |
~ |
AFFO |
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~ |
~ |
AFFO Per Share |
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~ |
~ |
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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. |
Q4 2024 Earnings Conference Call and Related Materials
The conference call / webcast details, earnings 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.
About Iron Mountain
Iron Mountain Incorporated (NYSE: IRM) is trusted by more than 240,000 customers in 61 countries, including approximately
To learn more about Iron Mountain, please visit www.IronMountain.com.
Forward Looking Statements
We have made statements in this press release that constitute "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements concern our current expectations regarding our future results from operations, economic performance, financial condition, goals, strategies, investment objectives, plans and achievements.
These forward-looking statements are subject to various known and unknown risks, uncertainties and other factors, and you should not rely upon them except as statements of our present intentions and of our present expectations, which may or may not occur. When we use words such as “believes”, “expects”, “anticipates”, “estimates”, “plans”, “intends”, “projects”, “pursue”, “will” 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 or inability to execute our strategic growth plan, including our ability to invest according to plan, grow our businesses (including through joint ventures or other co-investment vehicles), incorporate alternative technologies (including artificial intelligence) into our offerings, achieve satisfactory returns on new product offerings, continue our revenue management, expand and manage our global operations, complete acquisitions on satisfactory terms, integrate acquired companies efficiently and transition to more sustainable sources of energy; (ii) changes in customer preferences and demand for our storage and information management services, including as a result of the shift from paper and tape storage to alternative technologies that require less physical space or services activity; (iii) the costs of complying with and our ability to comply with laws, regulations and customer requirements, including those relating to data privacy and cybersecurity issues, as well as fire and safety and environmental standards; (iv) the impact of attacks on our internal information technology (“IT”) systems, including the impact of such incidents on our reputation and ability to compete and any litigation or disputes that may arise in connection with such incidents; (v) our ability to fund capital expenditures; (vi) the impact of our distribution requirements on our ability to execute our business plan; (vii) our ability to remain qualified for taxation as a real estate investment trust for
Reconciliation of Non-GAAP Measures
Throughout this press release, Iron Mountain discusses (1) Adjusted EBITDA, (2) Adjusted EPS, (3) FFO (Nareit), (4) FFO (Normalized), (5) AFFO and (6) AFFO per share. These measures do not conform to accounting principles generally accepted in
Consolidated Balance Sheets
(Audited; dollars in thousands)
|
12/31/2024 |
|
12/31/2023 |
ASSETS |
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Current Assets: |
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Cash and Cash Equivalents |
|
|
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Accounts Receivable, Net |
1,291,379 |
|
1,259,826 |
Prepaid Expenses and Other |
244,127 |
|
252,930 |
Total Current Assets |
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Property, Plant and Equipment: |
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|
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Property, Plant and Equipment |
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|
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Less: Accumulated Depreciation |
(4,354,398) |
|
(4,059,120) |
Property, Plant and Equipment, Net |
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Other Assets, Net: |
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Goodwill |
|
|
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Customer and Supplier Relationships and Other Intangible Assets |
1,274,731 |
|
1,279,800 |
Operating Lease Right-of-Use Assets |
2,489,893 |
|
2,696,024 |
Other |
545,853 |
|
429,652 |
Total Other Assets, Net |
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Total Assets |
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LIABILITIES AND EQUITY |
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Current Liabilities: |
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Current Portion of Long-term Debt |
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|
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Accounts Payable |
678,716 |
|
539,594 |
Accrued Expenses and Other Current Liabilities |
1,366,568 |
|
1,250,259 |
Deferred Revenue |
326,882 |
|
325,665 |
Total Current Liabilities |
|
|
|
Long-term Debt, Net of Current Portion |
13,003,977 |
|
11,812,500 |
Long-term Operating Lease Liabilities, Net of Current Portion |
2,334,826 |
|
2,562,394 |
Other Long-term Liabilities |
312,199 |
|
237,590 |
Deferred Income Taxes |
205,341 |
|
235,410 |
Redeemable Noncontrolling Interests |
78,171 |
|
177,947 |
Total Long-term Liabilities |
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Total Liabilities |
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(Deficit) Equity |
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Total (Deficit) Equity |
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Total Liabilities and (Deficit) Equity |
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Quarterly Consolidated Statements of Operations
(Unaudited; dollars in thousands, except per-share data)
|
Q4 2024 |
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Q3 2024 |
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Q/Q %
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Q4 2023 |
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Y/Y %
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Revenues: |
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Storage Rental |
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0.7 % |
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8.1 % |
Service |
639,309 |
|
621,657 |
|
2.8 % |
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|
548,685 |
|
16.5 % |
Total Revenues |
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|
1.5 % |
|
|
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|
11.4 % |
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Operating Expenses: |
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Cost of Sales (excluding Depreciation and Amortization) |
|
|
|
|
1.6 % |
|
|
|
|
14.6 % |
Selling, General and Administrative |
333,307 |
|
341,929 |
|
(2.5) % |
|
|
314,932 |
|
5.8 % |
Depreciation and Amortization |
234,609 |
|
232,240 |
|
1.0 % |
|
|
199,941 |
|
17.3 % |
Acquisition and Integration Costs |
7,269 |
|
11,262 |
|
(35.5) % |
|
|
12,860 |
|
(43.5) % |
Restructuring and Other Transformation |
36,797 |
|
37,282 |
|
(1.3) % |
|
|
53,853 |
|
(31.7) % |
(Gain) Loss on Disposal/Write-Down of PP&E, Net |
(2,074) |
|
5,091 |
|
(140.7) % |
|
|
6,157 |
|
(133.7) % |
Total Operating Expenses |
|
|
|
|
(0.6) % |
|
|
|
|
9.2 % |
|
|
|
|
|
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|
|
|
|
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Operating Income (Loss) |
|
|
|
|
12.5 % |
|
|
|
|
22.4 % |
Interest Expense, Net |
194,452 |
|
186,067 |
|
4.5 % |
|
|
151,784 |
|
28.1 % |
Other (Income) Expense, Net |
(36,243) |
|
86,362 |
|
(142.0) % |
|
|
40,761 |
|
(188.9) % |
Net Income (Loss) Before Provision (Benefit) for Income Taxes |
|
|
|
|
n/a |
|
|
|
|
n/a |
Provision (Benefit) for Income Taxes |
18,544 |
|
12,400 |
|
49.5 % |
|
|
9,018 |
|
105.6 % |
Net Income (Loss) |
|
|
|
|
n/a |
|
|
|
|
n/a |
Less: Net Income (Loss) Attributable to Noncontrolling Interests |
1,753 |
|
(45) |
|
n/a |
|
|
712 |
|
146.2 % |
Net Income (Loss) Attributable to Iron Mountain Incorporated |
|
|
|
|
n/a |
|
|
|
|
n/a |
|
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Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated: |
|
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|
Basic |
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n/a |
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|
n/a |
Diluted |
|
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|
n/a |
|
|
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|
n/a |
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding - Basic |
293,771 |
|
293,603 |
|
0.1 % |
|
|
292,328 |
|
0.5 % |
Weighted Average Common Shares Outstanding - Diluted |
297,201 |
|
293,603 |
|
1.2 % |
|
|
295,014 |
|
0.7 % |
Full Year Consolidated Statements of Operations
(Audited; dollars in thousands, except per-share data)
|
Full Year 2024 |
|
Full Year 2023 |
|
% Change |
Revenues: |
|
|
|
|
|
Storage Rental |
|
|
|
|
9.2 % |
Service |
2,467,650 |
|
2,109,644 |
|
17.0 % |
Total Revenues |
|
|
|
|
12.2 % |
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
Cost of Sales (excluding Depreciation and Amortization) |
|
|
|
|
14.4 % |
Selling, General and Administrative |
1,339,539 |
|
1,236,287 |
|
8.4 % |
Depreciation and Amortization |
900,905 |
|
776,159 |
|
16.1 % |
Acquisition and Integration Costs |
35,842 |
|
25,875 |
|
38.5 % |
Restructuring and Other Transformation |
161,359 |
|
175,215 |
|
(7.9) % |
Loss (Gain) on Disposal/Write-Down of PP&E, Net |
6,196 |
|
(12,825) |
|
(148.3) % |
Total Operating Expenses |
|
|
|
|
12.8 % |
|
|
|
|
|
|
Operating Income (Loss) |
|
|
|
|
9.5 % |
Interest Expense, Net |
721,559 |
|
585,932 |
|
23.1 % |
Other Expense (Income), Net |
43,422 |
|
108,640 |
|
(60.0) % |
Net Income (Loss) Before Provision (Benefit) for Income Taxes |
|
|
|
|
7.6 % |
Provision (Benefit) for Income Taxes |
60,872 |
|
39,943 |
|
52.4 % |
Net Income (Loss) |
|
|
|
|
(1.9) % |
Less: Net Income (Loss) Attributable to Noncontrolling Interests |
3,510 |
|
3,029 |
|
15.9 % |
Net Income (Loss) Attributable to Iron Mountain Incorporated |
|
|
|
|
(2.2) % |
|
|
|
|
|
|
Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated: |
|
|
|
|
|
Basic |
|
|
|
|
(3.2) % |
Diluted |
|
|
|
|
(3.2) % |
|
|
|
|
|
|
Weighted Average Common Shares Outstanding - Basic |
293,365 |
|
291,936 |
|
0.5 % |
Weighted Average Common Shares Outstanding - Diluted |
296,234 |
|
293,965 |
|
0.8 % |
Quarterly Reconciliation of Net Income (Loss) to Adjusted EBITDA
(Dollars in thousands)
|
Q4 2024 |
|
Q3 2024 |
|
Q/Q %
|
|
|
Q4 2023 |
|
Y/Y %
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
|
|
|
n/a |
|
|
|
|
n/a |
|
|
|
|
|
|
|
|
|
|
|
Add / (Deduct): |
|
|
|
|
|
|
|
|
|
|
Interest Expense, Net |
194,452 |
|
186,067 |
|
4.5 % |
|
|
151,784 |
|
28.1 % |
Provision (Benefit) for Income Taxes |
18,544 |
|
12,400 |
|
49.5 % |
|
|
9,018 |
|
105.6 % |
Depreciation and Amortization |
234,609 |
|
232,240 |
|
1.0 % |
|
|
199,941 |
|
17.3 % |
Acquisition and Integration Costs |
7,269 |
|
11,262 |
|
(35.5) % |
|
|
12,860 |
|
(43.5) % |
Restructuring and Other Transformation |
36,797 |
|
37,282 |
|
(1.3) % |
|
|
53,853 |
|
(31.7) % |
(Gain) Loss on Disposal/Write-Down of PP&E, Net (Including Real Estate) |
(2,074) |
|
5,091 |
|
(140.7) % |
|
|
6,157 |
|
(133.7) % |
Other (Income) Expense, Net, Excluding our Share of (Gains) Losses from our Unconsolidated Joint Ventures |
(37,795) |
|
85,532 |
|
(144.2) % |
|
|
40,332 |
|
(193.7) % |
Stock-Based Compensation Expense |
44,647 |
|
29,563 |
|
51.0 % |
|
|
20,604 |
|
116.7 % |
Our Share of Adjusted EBITDA Reconciling Items from our Unconsolidated Joint Ventures |
2,917 |
|
2,341 |
|
24.6 % |
|
|
1,506 |
|
93.7 % |
Adjusted EBITDA |
|
|
|
|
6.5 % |
|
|
|
|
15.2 % |
Adjusted EBITDA
We define Adjusted EBITDA as net income (loss) before interest expense, net, provision (benefit) for income taxes, depreciation and amortization (inclusive of our share of Adjusted EBITDA from our unconsolidated joint ventures), and excluding certain items we do not believe to be indicative of our core operating results, specifically: (i) Acquisition and Integration Costs; (ii) Restructuring and other transformation; (iii) Loss (gain) on disposal/write-down of property, plant and equipment, net (including real estate); (iv) Other expense (income), net; (v) Stock-based compensation expense; and (vi) Intangible impairments. 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 flows 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.
Full Year Reconciliation of Net Income (Loss) to Adjusted EBITDA
(Dollars in thousands)
|
Full Year 2024 |
|
Full Year 2023 |
|
% Change |
|
|
|
|
|
|
Net Income (Loss) |
|
|
|
|
(1.9) % |
Add / (Deduct): |
|
|
|
|
|
Interest Expense, Net |
721,559 |
|
585,932 |
|
23.1 % |
Provision (Benefit) for Income Taxes |
60,872 |
|
39,943 |
|
52.4 % |
Depreciation and Amortization |
900,905 |
|
776,159 |
|
16.1 % |
Acquisition and Integration Costs |
35,842 |
|
25,875 |
|
38.5 % |
Restructuring and Other Transformation |
161,359 |
|
175,215 |
|
(7.9) % |
Loss (Gain) on Disposal/Write-Down of PP&E, Net (Including Real Estate) |
6,196 |
|
(12,825) |
|
(148.3) % |
Other Expense (Income), Net, Excluding our Share of Losses (Gains) from our Unconsolidated Joint Ventures |
39,159 |
|
98,891 |
|
(60.4) % |
Stock-Based Compensation Expense |
118,138 |
|
73,799 |
|
60.1 % |
Our Share of Adjusted EBITDA Reconciling Items from our Unconsolidated Joint Ventures |
8,684 |
|
11,425 |
|
(24.0) % |
Adjusted EBITDA |
|
|
|
|
14.0 % |
Quarterly Reconciliation of Reported Earnings per Share to Adjusted Earnings per Share
|
Q4 2024 |
|
Q3 2024 |
|
Q/Q %
|
|
|
Q4 2023 |
|
Y/Y %
|
|
|
|
|
|
|
|
|
|
|
|
Reported EPS - Fully Diluted from Net Income (Loss) Attributable to Iron Mountain Incorporated |
|
|
|
|
n/a |
|
|
|
|
n/a |
Add / (Deduct): |
|
|
|
|
|
|
|
|
|
|
Acquisition and Integration Costs |
0.02 |
|
0.04 |
|
(50.0) % |
|
|
0.04 |
|
(50.0) % |
Restructuring and Other Transformation |
0.12 |
|
0.13 |
|
(7.7) % |
|
|
0.18 |
|
(33.3) % |
(Gain) Loss on Disposal/Write-Down of PP&E, Net |
(0.01) |
|
0.02 |
|
(150.0) % |
|
|
0.02 |
|
(150.0) % |
Other (Income) Expense, Net, Excluding our Share of (Gains) Losses from our Unconsolidated Joint Ventures |
(0.13) |
|
0.29 |
|
(144.8) % |
|
|
0.14 |
|
(192.9) % |
Stock-Based Compensation Expense |
0.15 |
|
0.10 |
|
50.0 % |
|
|
0.07 |
|
114.3 % |
Non-Cash Amortization Related to Derivative Instruments |
0.01 |
|
0.01 |
|
— |
|
|
0.01 |
|
— |
Tax Impact of Reconciling Items and Discrete Tax Items (1) |
(0.03) |
|
(0.04) |
|
(25.0) % |
|
|
(0.04) |
|
(25.0) % |
Income (Loss) Attributable to Noncontrolling Interests |
0.01 |
|
— |
|
n/a |
|
|
— |
|
n/a |
Adjusted EPS - Fully Diluted from Net Income (Loss) Attributable to Iron Mountain Incorporated |
|
|
|
|
13.6 % |
|
|
|
|
(3.8) % |
(1) The difference between our effective tax rates and our structural tax rate (or adjusted effective tax rates) for the quarters ended December 31, 2024 and 2023 is primarily due to (i) the reconciling items above, which impact our reported net income (loss) 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 quarters ended December 31, 2024, September 30, 2024 and December 31, 2023 was |
Adjusted Earnings Per Share, or Adjusted EPS
We define Adjusted EPS as reported earnings per share fully diluted from net income (loss) attributable to Iron Mountain Incorporated (inclusive of our share of adjusted losses (gains) from our unconsolidated joint ventures) and excluding certain items, specifically: (i) Acquisition and Integration Costs; (ii) Restructuring and other transformation; (iii) Loss (gain) on disposal/write-down of property, plant and equipment, net (including real estate); (iv) Other expense (income), net; (v) Stock-based compensation expense; (vi) Non-cash amortization related to derivative instruments; (vii) Tax impact of reconciling items and discrete tax items; and (viii) Amortization related to the write-off of certain customer relationship intangible assets. 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. Figures may not foot due to rounding. The Tax Impact of reconciling Items and discrete tax Items is calculated using the current quarter’s estimate of the annual structural tax rate. This may result in the current period adjustment plus prior reported quarterly adjustments not summing to the full year adjustment.
Full Year Reconciliation of Reported Earnings per Share to Adjusted Earnings per Share
|
Full Year 2024 |
|
Full Year 2023 |
|
% Change |
|
|
|
|
|
|
Reported EPS - Fully Diluted from Net Income (Loss) Attributable to Iron Mountain Incorporated |
|
|
|
|
(3.2) % |
Add / (Deduct): |
|
|
|
|
|
Acquisition and Integration Costs |
0.12 |
|
0.09 |
|
33.3 % |
Restructuring and Other Transformation |
0.54 |
|
0.60 |
|
(10.0) % |
Loss (Gain) on Disposal/Write-Down of PP&E, Net |
0.02 |
|
(0.04) |
|
(150.0) % |
Other Expense (Income), Net, Excluding our Share of Losses (Gains) from our Unconsolidated Joint Ventures |
0.13 |
|
0.34 |
|
(61.8) % |
Stock-Based Compensation Expense |
0.40 |
|
0.25 |
|
60.0 % |
Non-Cash Amortization Related to Derivative Instruments |
0.06 |
|
0.07 |
|
(14.3) % |
Tax Impact of Reconciling Items and Discrete Tax Items (1) |
(0.12) |
|
(0.12) |
|
— |
Income (Loss) Attributable to Noncontrolling Interests |
0.01 |
|
0.01 |
|
— |
Adjusted EPS - Fully Diluted from Net Income (Loss) Attributable to Iron Mountain Incorporated |
|
|
|
|
(2.7) % |
(1) The difference between our effective tax rates and our structural tax rate (or adjusted effective tax rates) for the years ended December 31, 2024 and 2023 is primarily due to (i) the reconciling items above, which impact our reported net income (loss) 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 years ended December 31, 2024 and 2023 was |
Quarterly Reconciliation of Net Income (Loss) to FFO and AFFO
(Dollars in thousands, except per-share data)
|
Q4 2024 |
|
Q3 2024 |
|
Q/Q %
|
|
|
Q4 2023 |
|
Y/Y %
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
|
|
|
n/a |
|
|
|
|
n/a |
Add / (Deduct): |
|
|
|
|
|
|
|
|
|
|
Real Estate Depreciation (1) |
92,154 |
|
93,864 |
|
(1.8) % |
|
|
83,928 |
|
9.8 % |
(Gain) Loss on Sale of Real Estate, Net of Tax |
(6,614) |
|
531 |
|
n/a |
|
|
193 |
|
n/a |
Data Center Lease-Based Intangible Assets Amortization (2) |
5,553 |
|
5,604 |
|
(0.9) % |
|
|
3,804 |
|
46.0 % |
Our Share of FFO (Nareit) Reconciling Items from our Unconsolidated Joint Ventures |
1,855 |
|
1,422 |
|
30.5 % |
|
|
853 |
|
117.5 % |
FFO (Nareit) |
|
|
|
|
193.2 % |
|
|
|
|
68.4 % |
Add / (Deduct): |
|
|
|
|
|
|
|
|
|
|
Acquisition and Integration Costs |
7,269 |
|
11,262 |
|
(35.5) % |
|
|
12,860 |
|
(43.5) % |
Restructuring and Other Transformation |
36,797 |
|
37,282 |
|
(1.3) % |
|
|
53,853 |
|
(31.7) % |
Loss (Gain) on Disposal/Write-Down of PP&E, Net (Excluding Real Estate) |
5,442 |
|
4,554 |
|
19.5 % |
|
|
6,290 |
|
(13.5) % |
Other (Income) Expense, Net, Excluding our Share of (Gains) Losses from our Unconsolidated Joint Ventures |
(37,795) |
|
85,532 |
|
(144.2) % |
|
|
40,332 |
|
(193.7) % |
Stock-Based Compensation Expense |
44,647 |
|
29,563 |
|
51.0 % |
|
|
20,604 |
|
116.7 % |
Non-Cash Amortization Related to Derivative Instruments |
4,176 |
|
4,176 |
|
— |
|
|
4,176 |
|
— |
Real Estate Financing Lease Depreciation |
3,221 |
|
3,692 |
|
(12.8) % |
|
|
3,022 |
|
6.6 % |
Tax Impact of Reconciling Items and Discrete Tax Items (3) |
(9,997) |
|
(10,465) |
|
(4.5) % |
|
|
(13,050) |
|
(23.4) % |
Our Share of FFO (Normalized) Reconciling Items from our Unconsolidated Joint Ventures |
75 |
|
(83) |
|
190.4 % |
|
|
(56) |
|
n/a |
FFO (Normalized) |
|
|
|
|
8.2 % |
|
|
|
|
2.6 % |
Per Share Amounts (Fully Diluted Shares): |
|
|
|
|
|
|
|
|
|
|
FFO (Nareit) |
|
|
|
|
191.3 % |
|
|
|
|
67.5 % |
FFO (Normalized) |
|
|
|
|
7.6 % |
|
|
|
|
2.4 % |
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding - Basic |
293,771 |
|
293,603 |
|
0.1 % |
|
|
292,328 |
|
0.5 % |
Weighted Average Common Shares Outstanding - Diluted |
297,201 |
|
293,603 |
|
1.2 % |
|
|
295,014 |
|
0.7 % |
(1) Includes depreciation expense related to owned real estate assets (land improvements, buildings, building and leasehold improvements, data center infrastructure and racking structures), excluding depreciation related to real estate 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 net income (loss) 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 as net income (loss) excluding depreciation on real estate assets, losses and gains on sale of real estate, net of tax, and amortization of data center leased-based intangibles (“FFO (Nareit)”). We calculate our FFO measure, including FFO (Nareit), adjusting for our share of reconciling items from our unconsolidated joint ventures. 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).
We modify FFO (Nareit), as is common among REITs seeking to provide financial measures that most meaningfully reflect their particular business ("FFO (Normalized)"). 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) Acquisition and Integration Costs; (ii) Restructuring and other transformation; (iii) Loss (gain) on disposal/write-down of property, plant and equipment, net (excluding real estate); (iv) Other expense (income) net; (v) Stock-based compensation expense; (vi) Non-cash amortization related to derivative instruments; (vii) Real estate financing lease depreciation; (viii) Tax impact of reconciling items and discrete tax items; (ix) Intangible impairments; and (x) (Income) loss from discontinued operations, net of tax.
FFO (Normalized) per share
FFO (Normalized) divided by weighted average fully-diluted shares outstanding.
Quarterly Reconciliation of Net Income (Loss) to FFO and AFFO (continued)
(Dollars in thousands, except per-share data)
|
Q4 2024 |
|
Q3 2024 |
|
Q/Q %
|
|
|
Q4 2023 |
|
Y/Y %
|
|
|
|
|
|
|
|
|
|
|
|
FFO (Normalized) |
|
|
|
|
8.2 % |
|
|
|
|
2.6 % |
Add / (Deduct): |
|
|
|
|
|
|
|
|
|
|
Non-Real Estate Depreciation |
67,016 |
|
66,787 |
|
0.3 % |
|
|
51,572 |
|
29.9 % |
Amortization Expense (1) |
66,665 |
|
62,293 |
|
7.0 % |
|
|
57,613 |
|
15.7 % |
Amortization of Deferred Financing Costs |
6,671 |
|
6,666 |
|
0.1 % |
|
|
3,278 |
|
103.5 % |
Revenue Reduction Associated with Amortization of Customer Inducements and Above- and Below-Market Leases |
1,229 |
|
1,321 |
|
(6.9) % |
|
|
1,829 |
|
(32.8) % |
Non-Cash Rent Expense (Income) |
4,741 |
|
4,984 |
|
(4.9) % |
|
|
4,982 |
|
(4.8) % |
Reconciliation to Normalized Cash Taxes |
5,034 |
|
(2,166) |
|
n/a |
|
|
7,090 |
|
(29.0) % |
Our Share of AFFO Reconciling Items from our Unconsolidated Joint Ventures |
179 |
|
183 |
|
(2.7) % |
|
|
181 |
|
(1.7) % |
Less: |
|
|
|
|
|
|
|
|
|
|
Recurring Capital Expenditures |
36,017 |
|
41,337 |
|
(12.9) % |
|
|
44,916 |
|
(19.8) % |
AFFO |
|
|
|
|
10.8 % |
|
|
|
|
12.3 % |
|
|
|
|
|
|
|
|
|
|
|
Per Share Amounts (Fully Diluted Shares): |
|
|
|
|
|
|
|
|
|
|
AFFO Per Share |
|
|
|
|
9.7 % |
|
|
|
|
11.7 % |
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding - Basic |
293,771 |
|
293,603 |
|
0.1 % |
|
|
292,328 |
|
0.5 % |
Weighted Average Common Shares Outstanding - Diluted |
297,201 |
|
293,603 |
|
1.2 % |
|
|
295,014 |
|
0.7 % |
(1) |
Includes customer and supplier relationship value, intake costs, acquisition of customer relationships, capitalized commissions and other intangibles. |
|
Adjusted Funds From Operations, or AFFO
We define adjusted funds from operations (“AFFO”) as FFO (Normalized) (1) excluding (i) Non-cash rent expense (income), (ii) Depreciation on non-real estate assets, (iii) Amortization expense associated with customer and supplier relationship value, intake costs, acquisitions of customer and supplier relationships, capitalized commissions and other intangibles, (iv) Amortization of deferred financing costs and debt discount/premium, (v) Revenue reduction associated with amortization of customer inducements and above- and below-market data center leases and (vi) The impact of reconciling to normalized cash taxes and (2) including Recurring capital expenditures. We also adjust for these items to the extent attributable to our portion of unconsolidated ventures. We believe that AFFO, as a widely recognized measure of operations of REITs, is helpful to investors as a meaningful supplemental comparative performance measure to other REITs, including on a per share basis. AFFO 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, net income (loss) or cash flows from operating activities (as determined in accordance with GAAP).
AFFO per share
AFFO divided by weighted average fully-diluted shares outstanding.
Full Year Reconciliation of Net Income (Loss) to FFO and AFFO
(Dollars in thousands, except per-share data)
|
Full Year 2024 |
|
Full Year 2023 |
|
% Change |
|
|
|
|
|
|
Net Income (Loss) |
|
|
|
|
(1.9) % |
Add / (Deduct): |
|
|
|
|
|
Real Estate Depreciation (1) |
367,362 |
|
322,045 |
|
14.1 % |
(Gain) Loss on Sale of Real Estate, Net of Tax |
(6,698) |
|
(16,656) |
|
(59.8) % |
Data Center Lease-Based Intangible Assets Amortization (2) |
22,304 |
|
22,322 |
|
(0.1) % |
Our Share of FFO (Nareit) Reconciling Items from our Unconsolidated Joint Ventures |
4,830 |
|
2,226 |
|
117.0 % |
FFO (Nareit) |
|
|
|
|
10.5 % |
Add / (Deduct): |
|
|
|
|
|
Acquisition and Integration Costs |
35,842 |
|
25,875 |
|
38.5 % |
Restructuring and Other Transformation |
161,359 |
|
175,215 |
|
(7.9) % |
Loss (Gain) on Disposal/Write-Down of PP&E, Net (Excluding Real Estate) |
14,025 |
|
4,307 |
|
n/a |
Other Expense (Income), Net, Excluding our Share of Losses (Gains) from our Unconsolidated Joint Ventures |
39,159 |
|
98,891 |
|
(60.4) % |
Stock-Based Compensation Expense |
118,138 |
|
73,799 |
|
60.1 % |
Non-Cash Amortization Related to Derivative Instruments |
16,705 |
|
21,097 |
|
(20.8) % |
Real Estate Financing Lease Depreciation |
13,135 |
|
12,019 |
|
9.3 % |
Tax Impact of Reconciling Items and Discrete Tax Items (3) |
(37,248) |
|
(35,307) |
|
5.5 % |
Our Share of FFO (Normalized) Reconciling Items from our Unconsolidated Joint Ventures |
(17) |
|
(374) |
|
(95.5) % |
FFO (Normalized) |
|
|
|
|
4.5 % |
Per Share Amounts (Fully Diluted Shares): |
|
|
|
|
|
FFO (Nareit) |
|
|
|
|
9.7 % |
FFO (Normalized) |
|
|
|
|
3.6 % |
|
|
|
|
|
|
Weighted Average Common Shares Outstanding - Basic |
293,365 |
|
291,936 |
|
0.5 % |
Weighted Average Common Shares Outstanding - Diluted |
296,234 |
|
293,965 |
|
0.8 % |
(1) Includes depreciation expense related to owned real estate assets (land improvements, buildings, building and leasehold improvements, data center infrastructure and racking structures), excluding depreciation related to real estate 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 net income (loss) 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. |
Full Year Reconciliation of Net Income (Loss) to FFO and AFFO (continued)
(Dollars in thousands, except per-share data)
|
Full Year 2024 |
|
Full Year 2023 |
|
% Change |
|
|
|
|
|
|
FFO (Normalized) |
|
|
|
|
4.5 % |
Add / (Deduct): |
|
|
|
|
|
Non-Real Estate Depreciation |
248,799 |
|
191,785 |
|
29.7 % |
Amortization Expense (1) |
249,305 |
|
227,987 |
|
9.4 % |
Amortization of Deferred Financing Costs |
25,580 |
|
16,859 |
|
51.7 % |
Revenue Reduction Associated with Amortization of Customer Inducements and Above- and Below-Market Leases |
5,347 |
|
7,036 |
|
(24.0) % |
Non-Cash Rent Expense (Income) |
19,042 |
|
25,140 |
|
(24.3) % |
Reconciliation to Normalized Cash Taxes |
6,248 |
|
(14,826) |
|
(142.1) % |
Our Share of AFFO Reconciling Items from our Unconsolidated Joint Ventures |
724 |
|
4,868 |
|
(85.1) % |
Less: |
|
|
|
|
|
Recurring Capital Expenditures |
143,067 |
|
140,406 |
|
1.9 % |
AFFO |
|
|
|
|
11.0 % |
|
|
|
|
|
|
Per Share Amounts (Fully Diluted Shares): |
|
|
|
|
|
AFFO Per Share |
|
|
|
|
10.2 % |
|
|
|
|
|
|
Weighted Average Common Shares Outstanding - Basic |
293,365 |
|
291,936 |
|
0.5 % |
Weighted Average Common Shares Outstanding - Diluted |
296,234 |
|
293,965 |
|
0.8 % |
(1) |
Includes customer and supplier relationship value, intake costs, acquisition of customer relationships, capitalized commissions and other intangibles. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250213929445/en/
Investor Relations:
Mark Rupe
SVP, Investor Relations
Mark.Rupe@ironmountain.com
(215) 402-7013
Erika Crabtree
Manager, Investor Relations
Erika.Crabtree@ironmountain.com
(617) 535-2845
Source: Iron Mountain Incorporated
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