BOSTON, May 04, 2011 (BUSINESS WIRE) --
Iron Mountain Incorporated (NYSE: IRM), the information management
company, today announced that its Board of Directors approved an
increase in the amount authorized under the Company's existing share
repurchase program of up to an additional $850 million in repurchases of
its common stock. The Company also announced that it has entered into
prepaid variable share repurchase agreements with affiliates of each of
J.P. Morgan Securities LLC and Morgan Stanley & Co. Incorporated to
repurchase an aggregate of $250 million of Iron Mountain common stock.
With this new authorization and the $228 million remaining under its
existing repurchase authorization as of March 31, 2011, the Company's
repurchase program now totals approximately $1.1 billion, including the
$250 million prepaid variable repurchases.
"These actions taken by our Board represent a strong first step in
delivering on our recently announced commitment to return $2.2 billion
of capital to stockholders through 2013, including $1.2 billion within
the next 12 months," said Richard Reese, Iron Mountain's Executive
Chairman and Chief Executive Officer. "This commitment to return cash to
our stockholders is a key component of our 3-year strategic plan we
announced in April. The actions announced today are a first step in our
plan and demonstrate our Board's confidence in our ability to grow our
business profitably while returning significant amounts of capital to
our stockholders."
The $1.1 billion now authorized for share repurchases represents nearly
17% of the Company's outstanding common stock based on the closing price
on May 3, 2011. The price of the shares repurchased may be different for
each repurchase agreement and in each case will be determined based on a
discount to certain volume weighted average trading prices of the
Company's common stock over a period of up to three months. The shares
delivered to the Company under both repurchase agreements will be
retired when delivered. The $250 million of aggregate payments under
both repurchase agreements will be funded with borrowings under the
Company's revolving credit facility.
Any purchases made under Iron Mountain's repurchase program may be made
from time to time in the open market or through negotiated transactions.
All purchases are subject to stock price, market conditions, corporate
and legal requirements and other factors. 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 April 25, 2011, the Company had approximately 201 million shares
of its common stock outstanding.
About Iron Mountain
Iron Mountain Incorporated (NYSE: IRM) provides information management
services that help organizations lower the costs, risks and
inefficiencies of managing their physical and digital data. The
Company's solutions enable customers to protect and better use their
information--regardless of its format, location or lifecycle stage--so
they can optimize their business and ensure proper recovery, compliance
and discovery. Founded in 1951, Iron Mountain manages billions of
information assets, including business records, electronic files,
medical data, emails and more for organizations around the world. Visit www.ironmountain.com
for more information.
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 and laws. Forward-looking statements include statements
regarding the Company's intent to repurchase shares, the Company's
financial ability and sources to fund the repurchase program and the
amounts of such repurchases. 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 cost to comply with current and future laws, regulations and
customer demands relating to privacy issues; (ii) the impact of
litigation or disputes that may arise in connection with incidents in
which the Company fails to protect its customers' information;(iii)
changes in the price for the Company's services relative to the cost of
providing such services; (iv) changes in customer preferences and demand
for the Company's services;(v) the cost or potential liabilities
associated with real estate necessary for the Company's business; (vi)
the performance of business partners upon whom the Company depends for
technical assistance or management expertise outside the United States;
(vii) changes in the political and economic environments in the
countries in which the Company's international subsidiaries operate;
(viii) in the various digital businesses in which the Company is
engaged, the Company's ability to keep up with rapid technological
changes, evolving industry expectations and changing customer
requirements or competition for customers; (ix) the successful
completion of our strategic alternative review process for the digital
business; (x) claims that the Company's technology violates the
intellectual property rights of a third party; (xi) the impact of legal
restrictions or limitations under stock repurchase plans on price,
volume or timing of stock repurchases; (xii) the impact of alternative,
more attractive investments to dividends or stock repurchases; (xiii)
the Company's ability or inability to complete acquisitions on
satisfactory terms and to integrate acquired companies efficiently;
(xiv) other trends in competitive or economic conditions affecting the
Company's financial condition or results of operations not presently
contemplated; and (xv) other risks described more fully in the Company's
most recently filed Annual Report on Form 10-K under "Item 1A. Risk
Factors" and other documents that the Company files with the Securities
and Exchange Commission from time to time. 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
Stephen P. Golden, 617-535-4799
Vice President, Investor Relations
sgolden@ironmountain.com