Iron Mountain(US:IRM)2025-05-01 20:02Financial Performance - For the three months ended March 31, 2025, net income was $16.2 million, a decrease of 78.9% compared to $77.0 million in the same period of 2024[84]. - Adjusted EBITDA for the same period was $579.9 million, up 11.8% from $518.9 million in the prior year[84]. - The reported fully diluted earnings per share (EPS) for Q1 2025 was $0.05, down from $0.25 in Q1 2024[87]. - Revenues for the three months ended March 31, 2025, increased by $115.7 million, or 7.8%, to $1,592.5 million compared to $1,476.9 million in the same period of 2024[93]. - Net income for the three months ended March 31, 2025, decreased by $60.8 million, or 78.9%, to $16.2 million compared to $77.0 million in the same period of 2024[93]. - FFO (Normalized) for the three months ended March 31, 2025, was $229.1 million, an increase from $219.8 million in the same period of 2024[90]. - Adjusted EBITDA for the three months ended March 31, 2025, increased by $61.1 million, or 11.8%, to $579.9 million compared to $518.9 million in the same period of 2024[93]. - Operating expenses for the three months ended March 31, 2025, increased by $107.0 million, or 8.7%, to $1,338.2 million compared to $1,231.2 million in the same period of 2024[93]. - The effective tax rate for the three months ended March 31, 2025, was 47.8%, significantly higher than 17.7% in 2024, primarily due to disallowed interest expenses and losses recorded in other income[107]. Revenue Growth - The company expects organic service revenue growth in 2025 to benefit from new and existing digital offerings and asset lifecycle management[81]. - The company anticipates continued total revenue and Adjusted EBITDA growth in 2025, driven by new product offerings and market expansion[81]. - Storage rental revenue for the three months ended March 31, 2025, increased by $63.5 million, or 7.2%, driven by revenue management and improved pricing[95]. - Service revenue for the three months ended March 31, 2025, increased by $52.1 million, or 8.8%, with a contribution of $18.3 million from recent acquisitions[95]. - Total revenue for the Global RIM Business segment increased by 3.8% to $1.26 billion, driven by organic growth in storage rental and service revenues[112]. - The Global Data Center Business segment saw a revenue increase of 20.3% to $173.2 million, with storage rental revenue growing by 23.5%[116]. - Corporate and Other segment revenue rose by 33.1% to $163.4 million, largely due to an increase in service revenue from recent acquisitions[120]. Costs and Expenses - Project Matterhorn has incurred approximately $433.3 million in restructuring and transformation costs since its inception, with an expected additional $150.0 million in costs for 2025[75]. - The company has incurred $54.7 million in restructuring and other transformation costs for the three months ended March 31, 2025[84]. - Restructuring and other transformation costs for the three months ended March 31, 2025, were $54.7 million, up from $40.8 million in the same period of 2024[103]. - Interest expense, net, increased by $30.2 million to $194.7 million for the three months ended March 31, 2025, due to higher average debt outstanding[105]. - Acquisition and integration costs for the three months ended March 31, 2025, were approximately $5.8 million, down from $7.8 million in the same period of 2024[100]. Cash Flow and Capital Expenditures - Cash flows from operating activities increased by $67.3 million to $197.3 million for the three months ended March 31, 2025[125]. - Capital expenditures for the three months ended March 31, 2025, totaled $674.8 million, with growth investment capital expenditures amounting to $628.5 million[126][128]. Debt and Financial Position - As of March 31, 2025, total long-term debt amounts to $15,024,364,000, with a net amount of $14,287,442,000 after deducting the current portion[132]. - The net total lease adjusted leverage ratio is 5.0, which is below the maximum allowable of 7.0, and the fixed charge coverage ratio is 2.4, exceeding the minimum allowable of 1.5[136]. - The company has approximately $1,487,000,000 in notional value outstanding on interest rate swap agreements as of March 31, 2025[139]. - The notional values of cross-currency swaps total $859,187,000, with $509,187,000 in Euros and $350,000,000 in Canadian dollars as of March 31, 2025[141]. - The carrying value of the joint venture with AGC Equity Partners (Frankfurt JV) is $77,885,000, representing a 20% equity interest as of March 31, 2025[142]. - The company is in compliance with its financial covenants, which restrict certain corporate actions including acquisitions and dividend payments[134]. - Interest rate swap agreements are utilized to hedge against changes in interest rates on floating rate indebtedness[138]. - The company’s ability to service its debt is contingent on future performance and working capital levels, which are influenced by various external factors[137]. - The total long-term debt includes various term loans and notes, with the largest being Term Loan B due 2031 at $1,835,940,000[132]. - The company has a total of $736,922,000 classified as the current portion of long-term debt[132]. Dividends - The company declared a dividend of $0.785 per share on May 1, 2025, payable on July 3, 2025[129].