Iron Mountain Inc (IRM) Reports Third Quarter Results with Record Revenue and Adjusted EBITDA
Iron Mountain Inc (NYSE:IRM) reported a net income of $91 million for the third quarter of 2023.
The company achieved record quarterly revenue and adjusted EBITDA, with total revenue reaching $1.4 billion and adjusted EBITDA amounting to $500 million.
Iron Mountain Inc (NYSE:IRM) also announced the signing of an agreement to acquire Regency Technologies to expand its Asset Lifecycle Management business.
The company's Board of Directors declared a quarterly cash dividend of $0.65 per share for the fourth quarter.
Iron Mountain Inc (NYSE:IRM), a global leader in information management, innovative storage, data center infrastructure, and asset lifecycle management, announced its financial results for the third quarter of 2023 on November 2, 2023. The company reported a net income of $91 million, achieving record quarterly revenue and adjusted EBITDA. Iron Mountain Inc (NYSE:IRM) also announced the signing of an agreement to acquire Regency Technologies to expand its Asset Lifecycle Management business.
Financial Performance Highlights
Iron Mountain Inc (NYSE:IRM) reported total revenues of $1.4 billion for the third quarter, an increase of 7.9% compared to the third quarter of 2022. The company's net income for the third quarter was $91.4 million, compared with $192.9 million in the third quarter of 2022. Adjusted EBITDA for the third quarter was $500.0 million, an increase of 6.5% compared to the third quarter of 2022.
Key Financial Tables
The company's storage rental revenue increased by 13% to $859 million, while service revenue saw a slight increase of 1% to $530 million. The total revenue for the year to date was $4,061 million, a 6% increase from the previous year. The net income, however, saw a decrease of 53% to $91 million for the third quarter and a decrease of 64% to $158 million for the year to date.
Company's Performance Analysis
Despite the decrease in net income, Iron Mountain Inc (NYSE:IRM) demonstrated strong performance in terms of revenue and adjusted EBITDA. The company's strategy of cross-selling its products and services has resulted in strong growth, reflecting the drive and dedication of its team. The acquisition of Regency Technologies is expected to add operational scale and deepen the company's capabilities in Asset Lifecycle Management.
Dividend and Guidance
Iron Mountain's Board of Directors declared a quarterly cash dividend of $0.65 per share for the fourth quarter, payable on January 4, 2024, for shareholders of record on December 15, 2023. The company also affirmed its full year 2023 guidance, with total revenue expected to be around $5,500 - $5,600 million, adjusted EBITDA around $1,940 - $1,975 million, and AFFO around $1,150 - $1,175 million.
Explore the complete 8-K earnings release (here) from Iron Mountain Inc for further details.
This article first appeared on GuruFocus.
