Iron Mountain Q3 AFFO Rises, Revenues Up 7.9%; To Acquire Regency Technologies

(RTTNews) - Iron Mountain Incorporated (IRM) reported third quarter net income of $91.4 million, compared with $192.9 million, last year. Earnings per share was $0.31 compared to $0.66. Adjusted EPS was $0.45 compared to $0.48. AFFO was $290 million, up 1%. AFFO per share was $0.99, compared with $0.98. Normalized FFO was $223.08 million, down 0.1%. Normalized FFO per share was $0.76, flat with last year.

On average, four analysts polled by Thomson Reuters expected the company to report profit per share of $0.44, for the quarter. Analysts' estimates typically exclude special items.

Third quarter reported revenues were $1.4 billion, compared with $1.3 billion, last year, an increase of 7.9%. Excluding the impact of foreign currency exchange, total reported revenues increased 6.8%, driven by a 11.6% increase in storage rental revenue. Service revenue growth increased 3.8% on a constant currency basis excluding the ALM business. Analysts on average had estimated $1.41 billion in revenue.

Looking forward, Iron Mountain affirmed full year 2023 guidance. On November 2, 2023, Iron Mountain's Board of Directors declared a quarterly cash dividend of $0.65 per share for the fourth quarter. The fourth quarter 2023 dividend is payable on January 4, 2024, for shareholders of record on December 15, 2023.

Separately, Iron Mountain announced it has entered into a definitive agreement to acquire Regency Technologies, a provider of IT asset disposition services in the U.S. Regency Technologies processes over 50,000 metric tons of material annually, reselling more than 2,000,000 units across eight locations. The initial purchase price is $200 million, with $125 million to be paid at close and the remainder due in 2025. The deal also features a potential performance-based earn-out, which would be payable in 2027, if earned.

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