Company Also Initiates First Ever Cash Dividend Policy
BOSTON, Feb 25, 2010 (BUSINESS WIRE) -- Iron Mountain Incorporated (NYSE:IRM), an information management
services company, today announced that its board of directors approved a
new share repurchase program authorizing up to $150 million in
repurchases of the Company's common stock. This represents approximately
3% of the Company's outstanding common stock based on the closing price
on February 19, 2010.
In addition, the Company announced that its board of directors adopted a
new dividend policy under which the Company intends to pay quarterly
cash dividends on Iron Mountain common stock. The first quarterly
dividend of $0.0625 per share, representing a planned annual dividend
payout of $0.25 per share, will be payable on April 15, 2010 to
shareholders of record on March 25, 2010. The cash dividend is the first
in the Company's history. The declaration and payment of future
quarterly dividends is in the discretion of the board of directors based
on their determination that doing so is in the best interest of Iron
Mountain shareholders.
"Our profitability and cash generation has improved at an impressive
rate in recent years. This has strengthened our balance sheet and
provided us the financial strength and flexibility to initiate periodic
share repurchases and pay quarterly dividends to shareholders while
continuing to invest in our growth agenda and pursue strategic
acquisitions," said Bob Brennan, president and CEO. "We are committed to
driving strong growth and capturing the enormous potential we see for
our business. These actions demonstrate our confidence in the long-term
growth prospects of the Company and our commitment to delivering
long-term value to our shareholders."
Any purchases made under Iron Mountain's repurchase program may be made
from time to time in the open market or through negotiated transactions
commencing at the conclusion of its current quarterly blackout period.
All purchases are subject to stock price, market conditions, corporate
and legal requirements and other factors. We intend to comply with Rule
10b-18 under the Securities Exchange Act of 1934. In addition, the
Finance Committee of the board of directors has been granted the
authority to establish trading plans under Rule 10b5-1 of the Exchange
Act. This will allow the Company to repurchase shares in the open market
during periods in which the stock trading window is otherwise closed for
the Company. As of February 19, 2010, the Company had approximately 204
million shares of its common stock outstanding.
About Iron Mountain
Iron Mountain Incorporated (NYSE:IRM) helps organizations around the
world reduce the costs and risks associated with information protection
and storage. The Company offers comprehensive records management and
data protection solutions, along with the expertise and experience to
address complex information challenges such as rising storage costs,
litigation, regulatory compliance and disaster recovery. Founded in
1951, Iron Mountain is a trusted partner to more than 140,000 corporate
clients throughout North America, Europe, Latin American and Asia
Pacific. For more information, visit the Company's Web site at www.ironmountain.com.
Forward Looking Statements
This press release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995 and
federal securities laws, and is subject to the safe-harbor created by
such Act. Forward-looking statements include statements regarding the
Company's intent to repurchase shares and to pay dividends, the
Company's financial ability and sources to fund the repurchase program
and dividend policy and the amounts of such repurchases and dividends
and statements regarding our goals, beliefs, future growth strategies,
investments, objectives, plans and current expectations. These
statements involve known and unknown risks, uncertainties and other
factors that may cause the actual results to be materially different
from those contemplated in the forward-looking statements. Such factors
include, but are not limited to: (i) the price, volume or timing of
stock repurchases may be impacted by legal restrictions or limits under
a Rule 10b5-1 trading plan; (ii) alternative, more attractive
investments to dividends or stock repurchases that may become available;
(iii) the cost to comply with current and future laws, regulations and
customer demands relating to privacy issues; (iv) the impact of
litigation that may arise in connection with incidents in which we fail
to protect the Company's customers' information;(v) changes in
the price for the Company's services relative to the cost of providing
such services; (vi) changes in customer preferences and demand for the
Company's services;(vii) in the various digital businesses in
which the Company is engaged, the cost of capital and technical
requirements, demand for the Company's services or competition for
customers; (viii) the Company's ability or inability to complete
acquisitions on satisfactory terms and to integrate acquired companies
efficiently; (ix) the cost or potential liabilities associated with real
estate necessary for the Company's business; (x) the performance of
business partners upon whom the Company depends for technical assistance
or management expertise outside the United States; (xi) changes in the
political and economic environments in the countries in which the
Company's international subsidiaries operate; (xii) claims that the
Company's technology violates the intellectual property rights of a
third party; (xiii) other trends in competitive or economic conditions
affecting Iron Mountain's financial condition or results of operations
not presently contemplated; and (xiv) other risks described more fully
in the Company's Current Report on Form 8-K under "Item 1A. Risk
Factors" filed on May 8, 2009. Except as required by law, Iron Mountain
undertakes no obligation to release publicly the result of any revision
to these forward-looking statements that may be made to reflect events
or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
SOURCE: Iron Mountain Incorporated
Investor Relations Contact:
Iron Mountain Incorporated
Vice President, Investor Relations
Stephen P. Golden, 617-535-4799
sgolden@ironmountain.com