BOSTON--(BUSINESS WIRE)--
The Board of Directors (the “Board”) of Iron Mountain Incorporated
(NYSE: IRM), the storage and information management company, today
declared its first quarterly distribution as a Real Estate Investment
Trust (“REIT”) of $0.475 per share, payable on October 15, 2014 to
stockholders of record on September 25, 2014 (the “Third Quarter
Distribution”). The company also declared the remaining special
distribution to stockholders of $700.0 million, or
approximately $3.62 per share based on the number of shares currently
outstanding (the “Special Distribution”), required in connection with
the company’s conversion to a REIT. The Special Distribution is payable
on November 4, 2014 to stockholders of record as of the close of
business on September 30, 2014.
In addition, subject to Board approval, the company expects to
distribute its second quarterly distribution as a REIT in December (the
“Fourth Quarter Distribution”), following the issuance of shares
associated with the Special Distribution as described below. The company
anticipates that the per share amount of the Fourth Quarter Distribution
will be approximately the same as the Third Quarter Distribution. Also,
the company expects to distribute prior to December 31, 2014 a
“catch-up” distribution because the company’s distributions through July
2014 were declared before the Board had determined if the company could
convert to a REIT effective January 1, 2014 and were lower than they
otherwise would have been if the company had been operating a REIT. The
company expects total distributions in 2014, excluding the Special
Distribution, to be approximately $400 million of cash, in line with its
previous range of $400 million to $420 million.
“These distribution declarations represent a significant milestone in
our conversion to a REIT; we are now paying out roughly twice the total
dollar amount we distributed prior to the conversion. Moreover,
including the distributions announced today, we will have returned
roughly $3.5 billion to Iron Mountain stockholders since 2010 through
repurchases, stock distributions and cash dividends,” said William L.
Meaney, president and chief executive officer. “We generate strong cash
flow through our durable storage rental business, which is supported by
our expansive global real estate platform, defensible market leadership
and consistent financial performance – all of which we believe will
continue to drive attractive stockholder returns.”
The Special Distribution represents the remaining amount to satisfy the
requirement that the company pay to stockholders its undistributed
accumulated earnings and profits (“E&P”) attributable to all taxable
periods ending on or prior to December 31, 2013. The Special
Distribution also will include some other items of taxable income that
the company expects to recognize in 2014, such as depreciation recapture
in respect of accounting method changes commenced in its pre-REIT period
as well as foreign earnings and profits repatriated as dividend income.
An initial $700.0 million of E&P was paid to stockholders in November
2012, bringing the total special distributions to $1.4 billion, at the
high end of the company’s range of $1.3 billion to $1.4 billion.
Stockholders can elect to receive payment of the Special Distribution in
the form of stock or cash, with the total cash payment to all
stockholders limited to no more than $140 million, or 20 percent of the
total distribution. The amount of shares to be distributed will be
determined based upon stockholder elections and the average closing
price on the three trading days following October 24, 2014. Election
forms will be mailed to all stockholders promptly following the record
date.
About Iron Mountain
Iron Mountain Incorporated (NYSE:IRM) is a leading provider of storage
and information management services. The company’s real estate network
of more than 67 million square feet across more than 1,000 facilities in
36 countries allows it to serve customers with speed and accuracy. And
its solutions for records
management, data
management, document
management, and secure
shredding help organizations to lower storage costs, comply with
regulations, recover from disaster, and better use their information for
business advantage. Founded in 1951, Iron Mountain stores and protects
billions of information assets, including business documents, backup
tapes, electronic files and medical data. Visit www.ironmountain.com
for more information.
Forward Looking Statements
This press release contains forward looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 and
other securities laws. The forward looking statements are subject to
various known and unknown risks, uncertainties and other factors. When
the Company uses words such as “believes,” “expects,” “anticipates,”
“estimates,” “plans” or similar expressions, the Company is making
forward looking statements. Although the Company believes that its
forward looking statements are based on reasonable assumptions, its
expected results may not be achieved, and actual results may differ
materially from its expectations. For example:
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This press release states that the Company anticipates paying the
Fourth Quarter Distribution and the “catch-up” distribution prior to
the end of 2014. The timing of these distributions, which may or may
not occur, may be affected factors beyond the Company’s control.
The Company’s forward looking statements should not be relied upon
except as statements of the Company’s present intentions and of the
Company’s present expectations, which may or may not occur. Cautionary
statements should be read as being applicable to all forward looking
statements wherever they appear. Except as required by law, the Company
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. Readers are also urged to carefully review and
consider the various disclosures the Company has made in the Company’s
filings with the Securities and Exchange Commission (the “SEC”),
including the sections “Risk Factors” and “Cautionary Note Regarding
Forward Looking Statements,” as applicable, in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2013 filed with the
SEC on February 28, 2014, the Company’s Current Report on Form 8-K filed
with the SEC on May 5, 2014, and the Company’s Quarterly Report on Form
10-Q for the quarter ended June 30, 2014 filed with the SEC on July 31,
2014.
Source: Iron Mountain