News

posted on 02 May 2008 08:49

Iron Mountain is steadily booming, if that's possible, posting its 77th consecutive quarterly increase in storage revenues.

Net revenue in its Q1 fy08 quarter rose 18 percent to $749 million from $633 million in Q1 fy07. Net income though, was $33 million ($0.16/share), down 4 percent on the year-ago quarter's $35 million ($0.17/share).

Iron Mountain stated: 'Selling, general and administrative costs increased 23 percent in the quarter, ahead of revenue gains, reflecting impacts from integration of recent acquisitions and increased investments in security, new products and infrastructure enhancements initiated in 2007. The impact of these costs is expected to moderate later this year.'

There was internal growth of 9 percent, with acquisitions and favorable foreign currency changes contributing approximately 10 percent to total growth.

Labor and transportation-intensive services such as secure shredding and Document Management Solutions (DMS) grew faster than storage, and higher energy costs. Storage revenues grew 8 percent.

Gross profit margins improved modestly, supported by higher recycled paper revenues and strong growth in the digital service businesses, including Stratify (digital storage), which have higher gross margins. The company stated: 'Iron Mountain’s acquisition strategy focuses on acquiring attractive businesses that provide a strong platform for future growth by expanding the Company’s geographic footprint and service offerings while enhancing its existing operations. Since the end of 2007, the Company completed two acquisitions, a shredding business in New Zealand and a hardcopy business in North America, established operations in Switzerland through a minority-owned joint venture and acquired the remaining 28 percent minority interest in its Brazilian business.'

The company has lifted its outlook for its full 2008 financial year.

Iron Mountain CEO Richard Reese will retire next quarter, after a27-year run. The president and COO, Bob Brennan, will succeed him.

Recession? What recession?

^{[Paul Roberts, news editor.]}