BOSTON, Mar 10, 2011 (BUSINESS WIRE) --
Iron Mountain Incorporated (NYSE: IRM), the information management
company, today issued the following statement in response to filings
made today by Elliott Associates, L.P. and Elliott International, L.P.
(together, "Elliott"):
As the Company previously disclosed in a Form 8-K filing with the
Securities and Exchange Commission on March 7, 2011, the Iron Mountain
Board will evaluate Elliott's proposals and make a recommendation in due
course.
Iron Mountain continues to expand its global leadership position.
Revenues increased by 4% to $3.1 billion in 2010, supported by strong
growth in international markets.
Iron Mountain noted that over the past four years, while continuing to
expand its business globally, the Company has delivered consistently
strong operating results and free cash flow performance. Since 2006, the
Company has increased Adjusted OIBDA(1) and Free Cash Flow(1)
at compounded annual growth rates of 12% and 68%, respectively, well
ahead of revenue growth, driven by its focus on operational excellence
and a 40% increase in capital efficiency.
With our strong operating performance, record cash flows and strong
balance sheet, Iron Mountain remains committed to investing in
profitable growth, while returning capital to stockholders. This is
evidenced by the Company's recent 200% increase in its quarterly
dividend to yield approximately 3%. In 2010, the Company repurchased 4.8
million shares, or approximately 2% of the total shares outstanding,
under its $350 million share repurchase authorization. Iron Mountain's
Board remains focused on enhancing stockholder value, and will continue
to take actions to achieve this objective.
On March 7, 2011, Iron Mountain filed with the SEC a Form 8-K regarding
Elliott's proposals, which can be found at www.sec.gov.
J.P. Morgan Securities LLC is serving as financial advisor to Iron
Mountain, and Weil, Gotshal & Manges LLP and Sullivan & Worcester LLP
are serving as legal advisors.
(1) Adjusted OIBDA and Free Cash Flow are non-GAAP financial measures.
Please refer to p. 34 of the Company's 2010 Annual Report on Form 10-K
filed with the SEC on March 1, 2010 or the Investor Relations page of
the Company's web site at www.ironmountain.com
for additional information and reconciliations to the nearest GAAP
measures.
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. Forward-looking statements include statements regarding our
goals, beliefs, future growth strategies, investment objectives, plans
and current expectations, such as our expected continued productivity
improvements, international expansion and intent and ability to
repurchase shares and pay dividends. 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) claims that the
Company's technology violates the intellectual property rights of a
third party; (x) the impact of legal restrictions or limitations under
stock repurchase plans on price, volume or timing of stock repurchases;
(xi) the impact of alternative, more attractive investments on dividends
or stock repurchases; (xii) the Company's ability or inability to
complete acquisitions on satisfactory terms and to integrate acquired
companies efficiently; (xiii) other trends in competitive or economic
conditions affecting the Company's financial condition or results of
operations not presently contemplated; and (xiv) other risks described
more fully in the Company's most recently filed Annual Report on Form
10-K under "Item 1A. Risk Factors." 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.
Additional Information
The Company will file a proxy statement in connection with its 2011
Annual Meeting of Stockholders and advises its stockholders to read that
proxy statement when it becomes available because it will contain
important information. The definitive proxy statement (when available)
will be mailed to stockholders of the Company. Stockholders will be able
to obtain, without charge, a copy of the definitive proxy statement
(when available) and other documents that the Company files with the
Securities and Exchange Commission (the "SEC") from the SEC's website at www.sec.gov.
The definitive proxy statement (when available) and other relevant
documents will also be available, without charge, by directing a request
by mail or telephone to Iron Mountain Incorporated, Attn: Investor
Relations, 745 Atlantic Avenue, Boston, Massachusetts 02111, or from the
Company's website, www.ironmountain.com.
The Company, its directors and executive officers and certain other
members of its management and employees may be deemed to be participants
in the solicitation of proxies in connection with the 2011 Annual
Meeting of Stockholders. Additional information regarding the interests
of such potential participants will be included in the Company's
preliminary proxy statement (when available) and definitive proxy
statement (when available).
SOURCE: Iron Mountain Incorporated
Iron Mountain
Stephen P. Golden, 617-535-4769
Vice President, Investor Relations
or
Joele Frank, Wilkinson Brimmer Katcher
Judith Wilkinson / Matthew Sherman / Andrea Rose
212-355-4449
or
Innisfree M&A Incorporated
Alan Miller / Jennifer Shotwell / Scott Winter
212-750-5833