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Sep 30, 2020

Iron Mountain Q3 2020 Earnings Report

Reported resilience in physical storage, expanded Adjusted EBITDA margin, and maintained strong cash generation.

Key Takeaways

Iron Mountain reported Q3 2020 results with total revenues of $1.04 billion, a decrease of 2.4% compared to Q3 2019. Adjusted EBITDA was $370.0 million, a decrease of 1.5%. The company now expects Project Summit will generate $165 million in Adjusted EBITDA benefits in 2020.

Total reported Revenues for the third quarter were $1.04 billion, compared with $1.06 billion in the third quarter of 2019, a decrease of 2.4%.

Income from Continuing Operations for the third quarter was $38.6 million, compared with $108.3 million in the third quarter of 2019.

Adjusted EBITDA for the third quarter was $370.0 million, compared with $375.7 million in the third quarter of 2019, a decrease of 1.5%.

Adjusted EPS for the third quarter was $0.31, compared with $0.32 in the third quarter of 2019.

Total Revenue
$1.04B
Previous year: $1.06B
-2.4%
EPS
$0.31
Previous year: $0.62
-50.0%
Adjusted EBITDA
$370M
Previous year: $376M
-1.5%
AFFO
$213M
Previous year: $225M
-5.4%
Gross Profit
$602M
Previous year: $611M
-1.4%
Cash and Equivalents
$152M
Previous year: $187M
-18.6%
Free Cash Flow
$79.1M
Previous year: $51.9M
+52.4%
Total Assets
$13.7B
Previous year: $13.6B
+0.8%

Iron Mountain

Iron Mountain

Iron Mountain Revenue by Segment

Forward Guidance

Iron Mountain now expects Project Summit will generate $165 million in Adjusted EBITDA benefits in 2020, an increase from the previous expectation of $150 million, as some initiatives have been accelerated. Iron Mountain expects to spend approximately $200 million in 2020. There is no change to the overall scope and size of the total program. Iron Mountain continues to expect Project Summit to generate $375 million of Adjusted EBITDA benefits exiting 2021, with a cost to implement of approximately $450 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income