Iron Mountain Incorporated (NYSE:IRM) Q4 2019 Earnings Conference Call - Final Transcript

Feb 13, 2020 • 08:30 am ET


Iron Mountain Incorporated (NYSE:IRM) Q4 2019 Earnings Conference Call - Final Transcript


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Good morning and welcome to the Iron Mountain Fourth Quarter 2019 Earnings Conference Call. [Operator Instructions]. Please note this event is being recorded.

I would now like to turn the conference over to Greer Aviv, Senior Vice President of Investor Relations. Please go ahead.

Greer Aviv

Thank you, Keith. Good morning and welcome to our fourth quarter and full year 2019 earnings conference call. The user controlled slides that will be referred to in today's prepared remarks are available on our Investor Relations website, along with a link to today's webcast, the earnings press release and the full supplemental financial information.

On today's call, we'll hear from Bill Meaney, Iron Mountain, President and CEO, who will discuss highlights and progress towards our strategic plan. Barry Hytinen, our CFO, will then cover financial results and our outlook for 2020. After our prepared remarks, we'll open up the lines for Q&A.

Referring now to slide 2 of the presentation, today's earnings call slide presentation and supplemental financial information will contain forward-looking statements. Most notably, our outlook for 2020 financials and operating performance and expectations from Project Summit. All forward-looking statements are subject to risks and uncertainties. Please refer to today's press release, earnings call presentation, supplemental financial report, the Safe Harbor language on this slide and our Annual Report on Form 10-K, which we expect to file later today, for a discussion of the major risk factors that could cause our actual results to differ from those in our forward-looking statements. In addition, we use several non-GAAP measures, when presenting our financial results and the reconciliations to these measures are required by Reg G are included in the supplemental financial information.

With that, Bill, would you please begin?

William Meaney

Thank you, Greer, and thank you all for taking the time to join us. Before we get into our discussion of the Q4 results, I want to first welcome Barry as our new CFO to the Iron Mountain family. Barry bring a successful track record of navigating transformation and effective change at various organizations. Most recently, he led efforts at HanesBrands to increase operating cash flow, reduce leverage and produce strong international growth. His insights will be very valuable, as we rollout Project Summit, our transformation program to simplify our structure and create a more dynamic and agile organization. We look forward to his contributions, as we enter 2020 and beyond.

With that, let me start with a look back at where we have been on our journey over the past six years. Looking first at total organic revenue, in 2013, it was flat and adjusted EBITDA declined 1%. Today, we reported total organic revenue growth of approximately 1%, and 2% if we hold paper prices constant. In terms of adjusted EBITDA, 2019 saw growth of 3% or nearly 5%, if we apply 2019 paper prices to 2018. More broadly, progress over the past six years is visible in nearly all metrics, not the least being the expansion of EBITDA margin by almost 500 basis points. This