Thursday, July 28, 2011

Iron Mountain to sell N.Z. unit, cuts 2011 revenue outlook

By Galen Moore, Boston Business Journal

Iron Mountain Inc. has reduced its revenue outlook for 2011 by about $200 million – but adjusted earnings per share are likely to increase, the Boston document storage company announced in its quarterly earnings report.

Revenue is now forecast at $3.04 billion to $3.09 billion for the year, down from $3.22 billion to $3.29 billion, previously. Adjusted earnings per share (EPS) will rise by 3 cents, the company predicted, forecasting 2011 EPS in the range of $1.19 to $1.27, up from the $1.16 to $1.24 Iron Mountain (NYSE: IRM) predicted in its first-quarter statement of earnings.

The shift in expectations is related to the recent sale of its digital businesses, which sold in May to U.K. firm Autonomy Corp. plc for $380 million. The company also announced in the quarterly report the expected divestiture of its New Zealand operations, which includes some data storage and recovery operations.

Iron Mountain reported quarterly revenue of $763 million, a 5 percent increase over the second quarter of 2010. Adjusted EPS was $0.29 per share, and adjusted operating income before depreciation and amortization (OIBDA) was $227 million, down 3 percent. In its forecast, Iron Mountain pushed down OIBDA expectations, predicting adjusted OIBDA in the range of $916 to $944, down from $938 to $966 in its prior 2011 guidance.

In April, Iron Mountain announced that it was looking into selling the decade-old digital end of its business, at the same time it announced an about-face on a shareholder proposal to turn the company into a into a Real Estate Investment Trust, or REIT.