SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 7, 1999 (April 29, 1999)
IRON MOUNTAIN INCORPORATED
(Exact name of registrant as specified in its charter)
Delaware 0-27584 04-3107342
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
745 Atlantic Avenue
Boston, Massachusetts 02111
(Address of principal executive offices, including zip code)
(617) 535-4766
(Registrant's telephone number, including area code)
<PAGE>
Item 5. Other Events
On April 29, 1999, Iron Mountain Incorporated (the "Company") reported
higher revenues and EBITDA for the quarter ended March 31, 1999 compared with
the same period in 1998. The Company reported a net loss of $149,000 ($0.01 per
common share) for the quarter ended March 31, 1999 compared with a net loss of
$314,000 ($0.01 per common share) for the same period in 1998.
The Company's total consolidated revenues for the first quarter of 1999
grew to $120 million, an increase of 21 percent compared with the same period in
1998. The Company's consolidated earnings before interest, taxes, depreciation,
amortization, extraordinary items and other income ("EBITDA") increased 23
percent to $28 million for the first quarter of 1999 compared with the same
period in 1998.
Revenues for the Company's core business of records and information
management services grew to $109 million for the first quarter of 1999, an
increase of 23 percent over the same period in 1998. EBITDA for the records and
information management services business was $27 million, an increase of 24
percent over the same period in 1998. The revenue growth is comprised of growth
through acquisitions and internal growth. Internal revenue growth for the first
quarter of 1999 was 10 percent.
Storage revenues increased to $68 million for the first quarter of 1999
from $53 million for the same period in 1998. This marks the 41st consecutive
quarter for which the Company has reported increased storage revenues. Storage
revenues, which are considered a key performance indicator for the records and
information management services industry, are largely recurring since customers
typically retain their records for many years.
The Company's information technology staffing services business reported
total revenues and EBITDA of $11 million and $0.5 million, respectively, for the
first quarter of 1999 compared with revenues and EBITDA of $10 million and $.07
million, respectively, for the same period in 1998.
On January 4, 1999, the Company purchased a controlling 50.1 percent
interest in British Data Management ("BDM"), the Company's first major
international acquisition. For consolidation purposes, the Company has
designated October 31 as BDM's fiscal year end. Accordingly, the Company's first
quarter results only include BDM's results from the date of purchase through the
end of BDM's first fiscal quarter ended January 31, 1999. BDM contributed $2.9
million in revenues and $0.8 million in EBITDA to the Company's first quarter
consolidated results without reduction for the 49.9 percent minority interest.
(c) Exhibits
Exhibit No. Item
- ----------- ----
99 Press Release, dated as of April 29, 1999
2
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
IRON MOUNTAIN INCORPORATED
(Registrant)
By: /s/ Jean A. Bua
Jean A. Bua
Vice President and Corporate Controller
Date: May 7, 1999
3
EXHIBIT 99
FOR IMMEDIATE RELEASE
Contact: John F. Kenny, Jr.
Executive Vice President and
Chief Financial Officer
(617) 535-4766
Iron Mountain Revenues Increase 21 Percent for First Quarter 1999
EBITDA Increases to $28 Million, up 23 percent from First Quarter 1998
Boston, MA - April 29, 1999 -- Iron Mountain Incorporated (NYSE: IRM), the
world's largest records management company, reported higher revenues and EBITDA
for the quarter ended March 31, 1999 compared with the same period in 1998.
Iron Mountain's total consolidated revenues for the first quarter of 1999 grew
to $120 million, an increase of 21 percent compared with the same period in
1998. Iron Mountain's consolidated earnings before interest, taxes,
depreciation, amortization, extraordinary items and other income ("EBITDA")
increased 23 percent to $28 million for the first quarter of 1999 compared with
the same period in 1998.
Revenues for the Company's core business of records and information management
services grew to $109 million for the first quarter of 1999, an increase of 23
percent over the same period in 1998. EBITDA for the records and information
management services business was $27 million, an increase of 24 percent over the
same period in 1998. The revenue growth is comprised of growth through
acquisitions and internal growth. Internal revenue growth for the first quarter
of 1999 was 10 percent.
Storage revenues increased to $68 million for the first quarter of 1999 from $53
million for the same period in 1998. This marks the 41st consecutive quarter for
which Iron Mountain has reported increased storage revenues. Storage revenues,
which are considered a key performance indicator for the records and information
management services industry, are largely recurring since customers typically
retain their records for many years.
The Company's information technology staffing services business reported total
revenues and EBITDA of $11 million and $0.5 million, respectively, for the first
quarter of 1999 compared with revenues and EBITDA of $10 million and $0.7
million, respectively, for the same period in 1998.
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<PAGE>
Iron Mountain Revenues Increase for First Quarter / Page 2
On January 4, 1999, Iron Mountain purchased a controlling 50.1 percent interest
in British Data Management ("BDM"), the Company's first major international
acquisition. For consolidation purposes, the Company has designated October 31
as BDM's fiscal year end. Accordingly, the Company's first quarter results only
include BDM's results from the date of purchase through the end of BDM's first
fiscal quarter ended January 31, 1999. BDM contributed $2.9 million in revenues
and $0.8 million in EBITDA to the Company's first quarter consolidated results
without reduction for the 49.9 percent minority interest.
As part of its growth strategy, Iron Mountain has completed six acquisitions
since the end of 1998 for total consideration of approximately $215 million. In
January 1999, the Company purchased a controlling 50.1 percent interest in
British Data Management (U.K.). In February 1999, the Company acquired Secure
Accessible Files Environment, Inc. (CT). In March 1999, the Company acquired
Confidential Records Center, Inc. (ME) and Information Storage Service Center,
Inc. (NM). In April 1999, the Company acquired First American Records
Management, Inc. (CA, CO, OR, WA) and Data Base, Inc. (IL, MD, NC, OH, PA, TX,
VA, WA, WI).
Iron Mountain currently operates 299 records and information management services
centers in 66 markets in the United States and four in the United Kingdom. The
Company serves more than 70,000 customer accounts, including more than half of
the Fortune 500 Companies. Iron Mountain provides a full array of records and
information management services including: (i) off-site storage, management and
related consulting services for business, healthcare and vital records; (ii)
data security services including off-site storage and rotation of electronic
records; (iii) information technology staffing services; and (iv) sales of
related products.
This press release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, and is subject
to the safe-harbor created by such Act. These statements involve known and
unknown risks, uncertainties and other factors that may cause the actual results
to be materially different from those contemplated in the forward-looking
statements. Iron Mountain undertakes 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.
NOTE: Condensed Consolidated Statements of Operations and Condensed
Consolidated Balance Sheets follow.
<PAGE>
Iron Mountain Revenues Increase for First Quarter / Page 3
<TABLE>
<CAPTION>
IRON MOUNTAIN INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in Thousands except Per Share Data)
(Unaudited)
Three Months Ended
March 31,
------------------------------
1999 1998
------------------------------
<S> <C> <C>
REVENUES:
Storage $ 67,722 $ 52,948
Service and Storage Material Sales 52,381 46,536
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Total Revenues 120,103 99,484
OPERATING EXPENSES:
Cost of Sales (Excluding Depreciation) 62,246 52,610
Selling, General and Administrative 30,308 24,418
Depreciation and Amortization 13,823 11,264
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Total Operating Expenses 106,377 88,292
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OPERATING INCOME 13,726 11,192
INTEREST EXPENSE 11,966 12,332
--------- ---------
Income (Loss) Before Provision (Benefit) for Income Taxes 1,760 (1,140)
PROVISION (BENEFIT) FOR INCOME TAXES 1,762 (826)
MINORITY INTEREST 147 --
--------- ---------
Net Loss $ (149) $ (314)
========= =========
NET LOSS PER COMMON SHARE - BASIC AND DILUTED $ (0.01) $ (0.01)
========= =========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 29,500 22,269
========= =========
EBITDA $ 27,549 $ 22,456
========= =========
</TABLE>
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<PAGE>
Iron Mountain Revenues Increase for First Quarter / Page 4
<TABLE>
<CAPTION>
IRON MOUNTAIN INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)
(Unaudited)
March 31, December 31,
1999 1998
------------ -------------
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and Cash Equivalents $ 4,899 $ 1,715
Accounts Receivable (less allowances of $3,759
and $3,316, respectively) 84,378 75,565
Other Current Assets 20,777 66,657
----------- -----------
Total Current Assets 110,054 143,937
----------- -----------
PROPERTY, PLANT AND EQUIPMENT:
Property, Plant and Equipment at Cost 421,594 354,101
Less: Accumulated Depreciation (109,773) (87,358)
----------- -----------
Property, Plant and Equipment, net 311,821 266,743
----------- -----------
OTHER ASSETS:
Goodwill, net 600,715 527,235
Other Non-current Assets, net 30,154 29,470
----------- -----------
Total Other Assets 630,869 556,705
----------- -----------
Total Assets $ 1,052,744 $ 967,385
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current Portion of Long-term Debt $ 4,219 $ 1,731
Other Current Liabilities 99,749 141,741
----------- -----------
Total Current Liabilities 103,968 143,472
LONG-TERM DEBT, NET OF CURRENT PORTION 537,096 454,447
OTHER LONG-TERM LIABILITIES 33,353 30,584
MINORITY INTEREST 39,470 --
STOCKHOLDERS' EQUITY 338,857 338,882
----------- -----------
Total Liabilities and Stockholders' Equity $ 1,052,744 $ 967,385
=========== ===========
</TABLE>
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