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Print Edition StoriesThursday, February 25, 2010
Iron Mountain starting stock dividends, plans $150M stock buyback
By Rodney H. Brown
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Iron Mountain Inc. will be doling out cash dividends to its stockholders for the first time in the Boston-based company’s history, under a new program that will begin April 15. At the same time, the company said it will be buying back $150 million worth of its own common stock.
The planned annual dividend payout amounts to 25 cents per share, and the first quarterly dividend of 6.25 cents per share will be payable on April 15 to shareholders of record on March 25.
The stock buyback, meanwhile, will bring about 3 percent of the company’s outstanding common stock back in house, based on the closing price of shares of Iron Mountain (NYSE: IRM) on Feb. 19. On that date the company had approximately 204 million shares outstanding, officials said.
Iron Mountain also released figures for the fourth quarter of 2009, which saw both revenue and profit rise. For the last quarter of calendar 2009, Iron Mountain made $779 million, versus $753 million for Q4 2008. Its profit soared in Q4 2009 versus the same period in 2008 — $61 million versus $1 million. According to company officials, the jump in profit is because Iron Mountain paid significantly less money in taxes for Q4 2009 versus the same period in 2008.
Earlier this week, Iron Mountain acquired California content archiving firm Mimosa Systems Inc. for $112 million in cash. The deal gives Iron Mountain (NYSE: IRM) a data archive option on site, SharePoint data and files and an integrated e-mail archive to work alongside its own cloud-based archives. As part of the buyout deal, Iron Mountain Digital will absorb the Mimosa Systems team, with Mimosa president and CEO T.M. Ravi taking the role of chief marketing officer for Iron Mountain Digital.
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