Iron Mountain Incorporated Q1 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

Financial Highlights

  • Record quarterly revenue of $1.31 billion, up 5% year-over-year and 7.5% organically. This compares to Q1 2022 revenue of roughly $1.25 billion.
  • Adjusted EBITDA reached $461 million, a first‑quarter record, up 7% year-over-year (9% constant currency). Prior year Q1 EBITDA was about $431 million.
  • Adjusted EBITDA margin improved 60 bps year-over-year to 35.1%.
  • AFFO increased to $284 million, up $20 million year-over-year, with AFFO per share of $0.97 (up $0.06).
  • Net lease-adjusted leverage declined to 5.1x, its lowest level since 2017.
  • Quarterly dividend maintained at $0.62 per share, with the payout ratio now at 64%, squarely inside the company’s long-term target range.

Revenue Drivers and Segment Performance

  • Global Records and Information Management (RIM):
    • Revenue: $1.13 billion, up $78 million year-over-year.
    • Organic growth: 11% total; 9.4% storage rental; 13.6% services.
    • Digital services and core offerings drove strong service growth.
    • Adjusted EBITDA: $478 million, up $29 million year-over-year.
  • Data Center Business:
    • Revenue: $112 million, up $15 million year-over-year.

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Operator: Good morning, and welcome to the Iron Mountain First Quarter 2023 Earnings Conference Call. [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to Gillian Tiltman, Senior Vice President and Head of Investor Relations. Please go ahead. Gillian Tiltman: Thank you, Sarah. Good morning, and welcome to our first quarter 2023 earnings conference call. On today's call, we will refer to materials available on our Investor Relations website. We are joined here today by Bill Meaney, President and Chief Executive Officer; and Barry Hytinen, our Executive Vice President and Chief Financial Officer. After prepared remarks, we'll open up the lines for Q&A. Today's earnings materials contain forward-looking statements, including statements regarding our expectations. All forward-looking statements are subject to risks and uncertainties. Please refer to today's earnings materials, the safe harbor language on Slide 2 and in our annual report -- on our quarterly report on Form 10-Q for a discussion of the major risk factors that could cause our actual results to differ from those in our forward-looking statements. In addition, we use several non-GAAP measures when presenting our financial results. We have included the reconciliations to these measures in our supplemental financial information. With that, I'll turn the call over to Bill. William Meaney: Thank you, Gillian, and thank you all for taking the time to join us t

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