- With a Q2 miss on the books, Iron Mountain (NYSE:IRM) now expects 2015 revenue to be at the low end of a prior $3.03B-$3.15B guidance range (consensus is at $3.08B). Adjusted EPS and FFO/share are expected to grow 1%-5% on a constant currency basis. The 2015 FFO/share consensus in actual dollars is $2.09, 8% below a 2014 level of $2.27.
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Key numbers: Storage rental revenue fell 1.2% Y/Y in Q2 to $461.2M, and service revenue 6.7% to $298.5M. Gross margin fell 10 bps to 57.1%, with a 330 bps drop in services GM offsetting an 80 bps increase in storage rental GM. Operating expenses fell 1.5% to $630.2M. Net volume rose 2.8% Y/Y to 526 CuFt MM, after rising 3.5% in Q1; North America +1.2%, Western Europe +3%; other international +9.7%.
- Forex had a 5.7% impact on total revenue growth. Ahead of the Recall deal, IRM ended Q2 with $117.1M in cash, and $4.8B in debt.
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Q2 results, earnings slides