Iron Mountain Reports Second Quarter Results

— Net Income of $202 million; Achieves record quarterly Revenue, Adjusted EBITDA and AFFO —

BOSTON–(BUSINESS WIRE)–Iron Mountain Incorporated (NYSE: IRM), a global leader in innovative storage, data center infrastructure, asset lifecycle management and information management services, announces record financial and operating results for the second quarter of 2022. The conference call / webcast details, earnings call presentation and supplemental financial information, which includes definitions of certain capitalized terms used in this release, are available on Iron Mountain’s Investor Relations website. Reconciliations of non-GAAP measures to the appropriate GAAP measures are included herein.

“We are pleased to report outstanding performance in the second quarter, including all-time record Revenue, Adjusted EBITDA and AFFO. These results are reflective of our team’s commitment to our customers and the expanded addressable market for our products and services,” said William L. Meaney, President and CEO of Iron Mountain. “We remain focused on delivering value for our customers with ever expanding innovation in our suite of products and services which will ultimately deliver accelerated growth for our company and our shareholders.”

Financial Performance Highlights for the Second Quarter and Year-to-Date 2022

($ in millions, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Y/Y % Change

 

Year to Date

 

Y/Y % Change

 

6/30/22

 

6/30/21

 

Reported $

 

Constant Fx

 

6/30/22

 

6/30/21

 

Reported $

 

Constant Fx

Storage Rental Revenue

$753

 

$718

 

5%

 

8%

 

$1,504

 

$1,426

 

5%

 

8%

Service Revenue

$536

 

$401

 

34%

 

38%

 

$1,033

 

$775

 

33%

 

37%

Total Revenue

$1,290

 

$1,120

 

15%

 

18%

 

$2,538

 

$2,202

 

15%

 

18%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

$202

 

$277

 

(27)%

 

 

 

$244

 

$323

 

(25)%

 

 

Reported EPS

$0.68

 

$0.95

 

(28)%

 

 

 

$0.83

 

$1.11

 

(25)%

 

 

Adjusted EPS

$0.46

 

$0.38

 

21%

 

 

 

$0.85

 

$0.70

 

21%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$455

 

$406

 

12%

 

15%

 

$886

 

$786

 

13%

 

15%

Adjusted EBITDA Margin

35.3%

 

36.2%

 

(90) bps

 

 

 

34.9%

 

35.7%

 

(80) bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AFFO

$271

 

$246

 

10%

 

 

 

$535

 

$481

 

11%

 

 

AFFO per share

$0.93

 

$0.85

 

10%

 

 

 

$1.83

 

$1.66

 

10%

 

 

Total reported Revenues for the second quarter were $1.29 billion, compared with $1.12 billion in the second quarter of 2021, an increase of 15.2%. Excluding the impact of foreign currency exchange (Fx), total reported Revenues increased 18.5% compared to the prior year, driven by a 37.6% increase in Service revenue, while Storage rental revenue increased 7.8%. Total service revenue growth was driven by the inclusion of ITRenew; on an organic constant currency basis, service revenue grew 21.1%. Year to date, total reported Revenues increased 15.3%, or 17.9% excluding the impact of Fx.

Net Income for the second quarter was $201.9 million compared with $276.5 million in the second quarter of 2021. Net income in the second quarter of 2021 included gains of approximately $181.2 million related to the divestment of the company’s Intellectual Property Management business. Net Income in the second quarter of 2022 includes a lower gain from real estate sales as compared to the second quarter of 2021, offset by lower adjusted expenses and foreign currency transaction gains. Year to date, Net Income was $243.6 million, compared with $323.2 million in 2021.

Adjusted EBITDA for the second quarter was $454.7 million, compared with $405.6 million in the second quarter of 2021, an increase of 12.1%. On a constant currency basis, Adjusted EBITDA increased by 15.4% in the second quarter, driven by the strong increase in Service revenue and productivity benefits. Year to date, Adjusted EBITDA was $885.7 million, compared with $786.2 million in 2021, an increase of 12.7%. On a constant currency basis, year to date Adjusted EBITDA increased 15.4%.

FFO (Normalized) per share was $0.74 for the second quarter, compared with $0.69 in the second quarter of 2021, an increase of 7.2%. Year to date, FFO (Normalized) per share was $1.41, compared with $1.32 in 2021, or an increase of 7.3%.

AFFO was $270.9 million for the second quarter, compared with $246.0 million in the second quarter of 2021, an increase of 10.1%, driven by improved Adjusted EBITDA, partially offset by an increase in cash taxes. Year to date, AFFO was $535.2 million, compared with $481.4 million in 2021, or an increase of 11.2%.

AFFO per share was $0.93 for the second quarter, compared with $0.85 in the second quarter of 2021, an increase of 9.6%, driven by improved Adjusted EBITDA. Year to date, AFFO per share was $1.83, compared with $1.66 in 2021, or an increase of 10.2%.

Dividend

On August 4, 2022, Iron Mountain’s Board of Directors declared a quarterly cash dividend of $0.6185 per share for the third quarter. The third-quarter 2022 dividend is payable on October 4, 2022, for shareholders of record on September 15, 2022.

Guidance

Iron Mountain affirmed full year 2022 guidance; details are summarized in the table below.

2022 Guidance(1)

($ in millions, except per share data)

 

 

 

 

2022 Guidance

 

Y/Y % Change

Total Revenue

$5,125 – $5,275

 

14% – 17%

Adjusted EBITDA

$1,800 – $1,850

 

10% – 13%

AFFO

$1,085 – $1,120

 

7% – 11%

AFFO Per Share

$3.70 – $3.82

 

6% – 10%

(1) Iron Mountain does not provide a reconciliation of non-GAAP measures that it discusses as part of its annual guidance or long term outlook because certain significant information required for such reconciliation is not available without unreasonable efforts or at all, including, most notably, the impact of exchange rates on Iron Mountain’s transactions, loss or gain related to the disposition of real estate and other income or expense. Without this information, Iron Mountain does not believe that a reconciliation would be meaningful.

About Iron Mountain

Iron Mountain Incorporated (NYSE: IRM) is a global leader in innovative storage, data center infrastructure, asset lifecycle management and information management services. Founded in 1951 and trusted by more than 225,000 customers worldwide, Iron Mountain helps customers CLIMB HIGHER™ to transform their businesses. Through a range of services including digital transformation, data centers, secure records storage, information management, asset lifecycle management, secure destruction, and art storage and logistics, Iron Mountain helps businesses bring light to their dark data, enabling customers to unlock value and intelligence from their stored digital and physical assets at speed and with security, while helping them meet their environmental goals.

To learn more about Iron Mountain, please visit: www.IronMountain.com and follow @IronMountain on Twitter and LinkedIn.

Forward Looking Statements

We have made statements in this press release that constitute “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements concern our current expectations regarding our future results from operations, economic performance, financial condition, goals, strategies, investment objectives, plans and achievements.

These forward-looking statements are subject to various known and unknown risks, uncertainties and other factors, and you should not rely upon them except as statements of our present intentions and of our present expectations, which may or may not occur. When we use words such as “believes,” “expects,” “anticipates,” “estimates,” “plans,” “intends”, “pursue”, “will” or similar expressions, we are making forward-looking statements. Although we believe that our forward-looking statements are based on reasonable assumptions, our expected results may not be achieved, and actual results may differ materially from our expectations. In addition, important factors that could cause actual results to differ from expectations include, among others: (i) our ability or inability to execute our strategic growth plan, including our ability to invest according to plan, grow our businesses (including through joint ventures), incorporate alternative technologies into our offerings, achieve satisfactory returns on new product offerings, continue our revenue management, expand internationally and manage our international operations, complete acquisitions on satisfactory terms, integrate acquired companies efficiently and transition to more sustainable sources of energy; (ii) changes in customer preferences and demand for our storage and information management services, including as a result of the shift from paper and tape storage to alternative technologies that require less physical space, (iii) the impact of our distribution requirements on our ability to execute our business plan; (iv) the severity and duration of the COVID-19 pandemic and its effects on the global economy, including its effects on us, the markets we serve and our customers and the third parties with whom we do business within those markets; (v) our ability to fund capital expenditures; (vi) our ability to remain qualified for taxation as a real estate investment trust for United States federal income tax purposes; (vii) the costs of complying with, and our ability to comply with, laws, regulations and customer requirements, including those relating to data privacy and cybersecurity issues, as well as fire and safety and environmental standards; (viii) the impact of attacks on our internal information technology (“IT”) systems, including the impact of such incidents on our reputation and ability to compete and any litigation or disputes that may arise in connection with such incidents; (ix) changes in the political and economic environments in the countries in which our international subsidiaries operate and changes in the global political climate, particularly as we consolidate operations and move records and data across borders; (x) our ability to raise debt or equity capital and changes in the cost of our debt; (xi) our ability to comply with our existing debt obligations and restrictions in our debt instruments; (xii) the impact of service interruptions or equipment damage and the cost of power on our data center operations; (xiii) the cost or potential liabilities associated with real estate necessary for our business; (xiv) failures to implement and manage new IT systems; (xv) unexpected events, including those resulting from climate change or geopolitical events, which could disrupt our operations and adversely affect our reputation and results of operations; (xvi) other trends in competitive or economic conditions affecting our financial condition or results of operations not presently contemplated; and (xvii) the other risks described in our periodic reports filed with the SEC, including under the caption “Risk Factors” in Part I, Item 1A of our Annual Report. Except as required by law, we undertake no obligation to update any forward-looking statements appearing in this release.

Reconciliation of Non-GAAP Measures

Throughout this release, Iron Mountain discusses (1) Adjusted EBITDA, (2) Adjusted EPS, (3) FFO (Nareit), (4) FFO (Normalized), and (5) AFFO. These measures do not conform to accounting principles generally accepted in the United States (“GAAP”). These non-GAAP measures are supplemental metrics designed to enhance our disclosure and to provide additional information that we believe to be important for investors to consider in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP, such as operating income, net income (loss) attributable to Iron Mountain Incorporated or cash flows from operating activities (as determined in accordance with GAAP). The reconciliation of these measures to the appropriate GAAP measure, as required by Regulation G under the Securities Exchange Act of 1934, as amended, and their definitions are included later in this release.

Condensed Consolidated Balance Sheets

(Unaudited; dollars in thousands)

 

 

 

6/30/2022

 

12/31/2021

ASSETS

 

 

 

 

Current Assets:

 

 

 

 

Cash and Cash Equivalents

 

$144,746

 

$255,828

Accounts Receivable, Net

 

1,116,329

 

961,419

Prepaid Expenses and Other

 

280,944

 

224,020

Total Current Assets

 

$1,542,019

 

$1,441,267

Property, Plant and Equipment:

 

 

 

 

Property, Plant and Equipment

 

$8,690,956

 

$8,647,303

Less: Accumulated Depreciation

 

(4,072,787)

 

(3,979,159)

Property, Plant and Equipment, Net

 

$4,618,169

 

$4,668,144

Other Assets, Net:

 

 

 

 

Goodwill

 

$4,923,691

 

$4,463,531

Customer and Supplier Relationships and Other Intangible Assets

 

1,508,526

 

1,181,043

Operating Lease Right-of-Use Assets

 

2,512,377

 

2,314,422

Other

 

517,537

 

381,624

Total Other Assets, Net

 

$9,462,131

 

$8,340,620

Total Assets

 

$15,622,319

 

$14,450,031

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

Current Liabilities:

 

 

 

 

Current Portion of Long-term Debt

 

$86,790

 

$309,428

Accounts Payable

 

435,475

 

369,145

Accrued Expenses and Other Current Liabilities

 

957,507

 

1,032,537

Deferred Revenue

 

302,494

 

307,470

Total Current Liabilities

 

$1,782,266

 

$2,018,580

Long-term Debt, Net of Current Portion

 

9,993,126

 

8,962,513

Long-term Operating Lease Liabilities, Net of Current Portion

 

2,371,270

 

2,171,472

Other Long-term Liabilities

 

404,703

 

144,053

Deferred Income Taxes

 

325,222

 

223,934

Redeemable Noncontrolling Interests

 

93,957

 

72,411

Total Long-term Liabilities

 

$13,188,278

 

$11,574,383

Total Liabilities

 

$14,970,544

 

$13,592,963

Equity

 

 

 

 

Total Equity

 

$651,775

 

$857,068

Total Liabilities and Equity

 

$15,622,319

 

$14,450,031

Quarterly Condensed Consolidated Statements of Operations

(Unaudited; dollars in thousands, except per-share data)

 

 

Q2 2022

 

Q1 2022

 

Q/Q % Change

 

 

Q2 2021

 

Y/Y % Change

Revenues:

 

 

 

 

 

 

 

 

 

 

Storage Rental

$753,126

 

$751,070

 

0.3 %

 

 

$718,272

 

4.9 %

Service

536,408

 

496,976

 

7.9 %

 

 

401,484

 

33.6 %

Total Revenues

$1,289,534

 

$1,248,046

 

3.3 %

 

 

$1,119,756

 

15.2 %

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

Cost of Sales (excluding Depreciation and Amortization)

$556,476

 

$546,622

 

1.8 %

 

 

$474,579

 

17.3 %

Selling, General and Administrative

295,394

 

280,723

 

5.2 %

 

 

259,779

 

13.7 %

Depreciation and Amortization

178,254

 

183,615

 

(2.9) %

 

 

166,685

 

6.9 %

Acquisition and Integration Costs

16,878

 

15,661

 

7.8 %

 

 

2,277

 

n/a

Restructuring Charges

 

 

 

 

39,443

 

(100.0) %

(Gain) on Disposal/Write-Down of PP&E, Net

(51,249)

 

(705)

 

n/a

 

 

(128,935)

 

(60.3) %

Total Operating Expenses

$995,753

 

$1,025,916

 

(2.9) %

 

 

$813,828

 

22.4 %

 

 

 

 

 

 

 

 

 

 

 

Operating Income

$293,781

 

$222,130

 

32.3 %

 

 

$305,928

 

(4.0) %

Interest Expense, Net

115,057

 

114,442

 

0.5 %

 

 

105,220

 

9.3 %

Other (Income) Expense, Net

(41,217)

 

55,901

 

n/a

 

 

(186,230)

 

(77.9) %

Net Income Before Provision (Benefit) for Income Taxes

$219,941

 

$51,787

 

n/a

 

 

$386,938

 

(43.2) %

Provision (Benefit) for Income Taxes

18,083

 

10,080

 

79.4 %

 

 

110,416

 

(83.6) %

Net Income

$201,858

 

$41,707

 

n/a

 

 

$276,522

 

(27.0) %

Less: Net Income (Loss) Attributable to Noncontrolling Interests

1,777

 

(592)

 

n/a

 

 

1,237

 

43.7 %

Net Income Attributable to Iron Mountain Incorporated

$200,081

 

$42,299

 

n/a

 

 

$275,285

 

(27.3) %

 

 

 

 

 

 

 

 

 

 

 

Net Income Per Share Attributable to Iron Mountain Incorporated:

 

 

 

 

 

 

 

 

 

 

Basic

$0.69

 

$0.15

 

n/a

 

 

$0.95

 

(27.4) %

Diluted

$0.68

 

$0.14

 

n/a

 

 

$0.95

 

(28.4) %

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Common Shares Outstanding – Basic

290,756

 

290,328

 

0.1 %

 

 

289,247

 

0.5 %

Weighted Average Common Shares Outstanding – Diluted

292,487

 

291,846

 

0.2 %

 

 

291,079

 

0.5 %

Year to Date Condensed Consolidated Statements of Operations

(Unaudited; dollars in thousands, except per-share data)

 

 

YTD 2022

 

YTD 2021

 

% Change

Revenues:

 

 

 

 

 

Storage Rental

$1,504,196

 

$1,426,328

 

5.5 %

Service

1,033,384

 

775,468

 

33.3 %

Total Revenues

$2,537,580

 

$2,201,796

 

15.3 %

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

Cost of Sales (excluding Depreciation and Amortization)

$1,103,098

 

$926,488

 

19.1 %

Selling, General and Administrative

576,117

 

518,502

 

11.1 %

Depreciation and Amortization

361,869

 

332,327

 

8.9 %

Acquisition and Integration Costs

32,539

 

2,277

 

n/a

Restructuring Charges

 

79,254

 

(100.0) %

(Gain) on Disposal/Write-Down of PP&E, Net

(51,954)

 

(133,386)

 

(61.0) %

Total Operating Expenses

$2,021,669

 

$1,725,462

 

17.2 %

 

 

 

 

 

 

Operating Income

$515,911

 

$476,334

 

8.3 %

Interest Expense, Net

229,499

 

209,642

 

9.5 %

Other Expense (Income), Net

14,684

 

(181,517)

 

n/a

Net Income Before Provision (Benefit) for Income Taxes

$271,728

 

$448,209

 

(39.4) %

Provision (Benefit) for Income Taxes

28,163

 

125,056

 

(77.5) %

Net Income

$243,565

 

$323,153

 

(24.6) %

Less: Net Income Attributable to Noncontrolling Interests

1,185

 

2,265

 

(47.7) %

Net Income Attributable to Iron Mountain Incorporated

$242,380

 

$320,888

 

(24.5) %

 

 

 

 

 

 

Net Income Per Share Attributable to Iron Mountain Incorporated:

 

 

 

 

 

Basic

$0.83

 

$1.11

 

(25.2) %

Diluted

$0.83

 

$1.11

 

(25.2) %

 

 

 

 

 

 

Weighted Average Common Shares Outstanding – Basic

290,542

 

289,001

 

0.5 %

Weighted Average Common Shares Outstanding – Diluted

292,166

 

290,303

 

0.6 %

Quarterly Reconciliation of Net Income (Loss) to Adjusted EBITDA

(Dollars in thousands)

 

 

Q2 2022

 

Q1 2022

 

Q/Q % Change

 

 

Q2 2021

 

Y/Y % Change

 

 

 

 

 

 

 

 

 

 

 

Net Income

$201,858

 

$41,707

 

n/a

 

 

$276,522

 

(27.0) %

 

 

 

 

 

 

 

 

 

 

 

Add / (Deduct):

 

 

 

 

 

 

 

 

 

 

Interest Expense, Net

115,057

 

114,442

 

0.5 %

 

 

105,220

 

9.3 %

Provision (Benefit) for Income Taxes

18,083

 

10,080

 

79.4 %

 

 

110,416

 

(83.6) %

Depreciation and Amortization

178,254

 

183,615

 

(2.9) %

 

 

166,685

 

6.9 %

Acquisition and Integration Costs

16,878

 

15,661

 

7.8 %

 

 

2,276.70

 

n/a

Restructuring Charges

 

 

 

 

39,443

 

(100.0) %

(Gain) on Disposal/Write-Down of PP&E, Net (Including Real Estate)

(51,249)

 

(705)

 

n/a

 

 

(128,935)

 

(60.3) %

Other (Income) Expense, Net, Excluding our Share of Losses (Gains) from our Unconsolidated Joint Ventures

(46,103)

 

53,515

 

n/a

 

 

(189,605)

 

(75.7) %

Stock-Based Compensation Expense

20,256

 

11,341

 

78.6 %

 

 

22,536

 

(10.1) %

Our Share of Adjusted EBITDA Reconciling Items from our Unconsolidated Joint Ventures

1,672

 

1,338

 

25.0 %

 

 

1,072

 

56.0 %

Adjusted EBITDA

$454,706

 

$430,994

 

5.5 %

 

 

$405,631

 

12.1 %

Adjusted EBITDA

We define Adjusted EBITDA as net income (loss) before interest expense, net, provision (benefit) for income taxes, depreciation and amortization (inclusive of our share of Adjusted EBITDA from our unconsolidated joint ventures), and excluding certain items we do not believe to be indicative of our core operating results, specifically: (i) Acquisition and Integration Costs, (ii) Restructuring Charges; (iii) (Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate); (iv) Other expense (income), net; and (v) Stock-based compensation expense. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenues. We use multiples of current or projected Adjusted EBITDA in conjunction with our discounted cash flow models to determine our estimated overall enterprise valuation and to evaluate acquisition targets. We believe Adjusted EBITDA and Adjusted EBITDA Margin provide our current and potential investors with relevant and useful information regarding our ability to generate cash flows to support business investment. These measures are an integral part of the internal reporting system we use to assess and evaluate the operating performance of our business.

Adjusted EBITDA excludes both interest expense, net and the provision (benefit) for income taxes. These expenses are associated with our capitalization and tax structures, which we do not consider when evaluating the operating profitability of our core operations. Adjusted EBITDA also does not include depreciation and amortization expenses, in order to eliminate the impact of capital investments, which we evaluate by comparing capital expenditures to incremental revenue generated and as a percentage of total revenues. Adjusted EBITDA and Adjusted EBITDA Margin should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP, such as operating income, net income (loss) or cash flows from operating activities (as determined in accordance with GAAP).

Year to Date Reconciliation of Net Income (Loss) to Adjusted EBITDA

(Dollars in thousands)

 

 

YTD 2022

 

YTD 2021

 

% Change

 

 

 

 

 

 

Net Income

$243,565

 

$323,153

 

(24.6) %

Add / (Deduct):

 

 

 

 

 

Interest Expense, Net

229,499

 

209,642

 

9.5 %

Provision (Benefit) for Income Taxes

28,163

 

125,056

 

(77.5) %

Depreciation and Amortization

361,869

 

332,327

 

8.9 %

Acquisition and Integration Costs

32,539

 

2,277

 

n/a

Restructuring Charges

 

79,254

 

(100.0) %

(Gain) on Disposal/Write-Down of PP&E, Net (Including Real Estate)

(51,954)

 

(133,386)

 

(61.0) %

Other Expense (Income), Net, Excluding our Share of Losses (Gains) from our Unconsolidated Joint Ventures

7,412

 

(187,484)

 

n/a

Stock-Based Compensation Expense

31,597

 

33,269

 

(5.0) %

Our Share of Adjusted EBITDA Reconciling Items from our Unconsolidated Joint Ventures

3,010

 

2,088

 

44.2 %

Adjusted EBITDA

$885,700

 

$786,196

 

12.7 %

Quarterly Reconciliation of Reported Earnings per Share to Adjusted Earnings per Share

 

 

Q2 2022

 

Q1 2022

 

Q/Q % Change

 

 

Q2 2021

 

Y/Y % Change

 

 

 

 

 

 

 

 

 

 

 

Reported EPS – Fully Diluted from Net Income Attributable to Iron Mountain Incorporated

$0.68

 

$0.14

 

n/a

 

 

$0.95

 

(28.4) %

Add / (Deduct):

 

 

 

 

 

 

 

 

 

 

Acquisition and Integration Costs

0.06

 

0.05

 

20.0 %

 

 

0.01

 

n/a

Restructuring Charges

 

 

 

 

0.14

 

(100.0) %

Amortization Related to the Write-Off of Certain Customer Relationship Intangible Assets

 

0.02

 

(100.0) %

 

 

 

(Gain) on Disposal/Write-Down of PP&E, Net

(0.18)

 

 

 

 

(0.44)

 

(59.1) %

Other (Income) Expense, Net, Excluding our Share of Losses (Gains) from our Unconsolidated Joint Ventures

(0.16)

 

0.18

 

n/a

 

 

(0.65)

 

(75.4) %

Stock-Based Compensation Expense

0.07

 

0.04

 

75.0 %

 

 

0.08

 

(12.5) %

Tax Impact of Reconciling Items and Discrete Tax Items (1)

(0.03)

 

(0.05)

 

(40.0) %

 

 

0.31

 

n/a

Net Income Attributable to Noncontrolling Interests

0.01

 

 

n/a

 

 

 

Adjusted EPS – Fully Diluted from Net Income (Loss) Attributable to Iron Mountain Incorporated

$0.46

 

$0.38

 

21.1 %

 

 

$0.38

 

21.1 %

(1) The difference between our effective tax rates and our structural tax rate (or adjusted effective tax rates) for the three months ended June 30, 2022 and 2021 is primarily due to (i) the reconciling items above, which impact our reported net income (loss) before provision (benefit) for income taxes but have an insignificant impact on our reported provision (benefit) for income taxes and (ii) other discrete tax items. Our structural tax rate for purposes of the calculation of Adjusted EPS for the quarter ended June 30, 2022, quarter ended March 31, 2022, and quarter ended June 30, 2021 was 16.5%, 18.6% and 16.2%, respectively.

Adjusted Earnings Per Share, or Adjusted EPS

We define Adjusted Earnings per Share (“Adjusted EPS”) as reported earnings per share fully diluted from net income (loss) attributable to Iron Mountain Incorporated (inclusive of our share of adjusted losses (gains) from our unconsolidated joint ventures) and excluding certain items, specifically: (i) Acquisition and Integration Costs; (ii) Restructuring Charges; (iii) (Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate); (iv) Other expense (income), net; (v) Stock-based compensation expense; and (vi) Tax impact of reconciling items and discrete tax items.

Contacts

Investor Relations:
Gillian Tiltman

SVP, Head of Investor Relations

Gillian.Tiltman@ironmountain.com
(617) 286-4881

Sarah Barry

Senior Manager, Investor Relations

Sarah.Barry@ironmountain.com
(617) 237-6597

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