Iron Mountain Q2 AFFO Rises On Improved Adj. EBITDA And Lower Cash Taxes; Affirms Guidance

(RTTNews) - Iron Mountain Incorporated (IRM) reported second quarter net income of $1.1 million compared with $201.9 million, prior year. Adjusted EBITDA was $475.7 million, compared with $454.7 million, last year, an increase of 4.6%. On a constant currency basis, adjusted EBITDA increased by 4.7% in the second quarter, driven by the strong increase in storage rental revenue and data center commencements. Adjusted earnings per share was $0.40 compared to $0.46.

FFO Normalized per share was $0.71 for the second quarter, compared with $0.74, last year. AFFO was $277.0 million, compared with $270.9 million, an increase of 2.2%, driven by improved adjusted EBITDA and lower cash taxes. AFFO per share was $0.94, compared with $0.93, an increase of 1.1%, driven by improved adjusted EBITDA.

Total reported revenues for the second quarter were $1.4 billion, compared with $1.3 billion, last year, an increase of 5.3%. Excluding the impact of foreign currency exchange, total reported revenues increased 6.0%, driven by a 10.9% increase in storage rental revenue, while service revenue decreased 1.0%. Service revenue growth increased 7.7% on a constant currency basis excluding the ALM business.

Iron Mountain's Board declared a quarterly cash dividend of $0.65 per share for the third quarter, representing an increase of 5%. The third quarter dividend is payable on October 5, 2023, for shareholders of record on September 15, 2023.

Iron Mountain affirmed its full year 2023 guidance.

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