Iron Mountain Incorporated

Good morning and welcome to the Iron Mountain First Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. We will limit analysts to one question, and you can rejoin in the queue. Please note, this event is being recorded. I would now like to turn the conference over to Gillian Tiltman, Senior Vice President and Head of Investor Relations. So, Gillian, please go ahead.

Thank you, Brika. Good morning, and welcome to our first quarter 2022 earnings conference call. On today's call, we will refer to materials available on our investor relations websites. We are joined today by Bill Meany, President and Chief Executive Officer, and Barry Heitenen, our Executive Vice President and Chief Financial Officer. After prepared remarks, we'll open up the lines for Q&A. Today's earnings materials contain forward-looking statements, including statements regarding our expectations. All forward-looking statements are subject to risks and uncertainties. Please refer to today's earnings materials, the safe harbor language on slide two, and our quarterly report on Form 10-Q for a discussion of the major risk factors that could cause our actual results to differ from those in our forward-looking statements. In addition, we use several non-GAAP measures when presenting our financial results. We have included the reconciliations to these measures in our supplemental financial information. With that, I'll turn the call over to Bill.

Thank you, Jillian, and thank you all for taking the time to join us today. Our team delivered exceptional results for the first quarter of 2022, exceeding the expectations we provided on our last call. This record performance is reflective of our broad offerings, deep customer relationships, resilient business model, and dedicated team. Whilst we are thrilled to report these results, it's important to take a moment to acknowledge the events happening in Ukraine and impacting the world at large. As we navigate this devastating conflict, we continue to prioritize our Mountaineers and their families. To that end, I am comforted to share that all 65 of our colleagues from Ukraine continue to check in with our global risk, safety and security team on a daily basis and all are safe. Some families have made the difficult decision to migrate to other countries and I am proud of how our fellow mountaineers in the region have offered assistance in providing comfort and resettlement. I continue to be both inspired by and grateful to all the teams in Ukraine and the surrounding countries who have united to support each other in this crisis. I visited the region twice recently and I remain humbled by the strength of our colleagues and we remain committed to supporting our affected mountaineers and continue to hope and pray for a rapid resolution of this war. Now, if I may, let me begin our discussion of our first quarter results, a record for the company. We achieved our highest ever quarterly revenue of $1.25 billion, exceeding our expectations of $1.2 billion, yielding 10% total organic revenue growth and an all-time record EBITDA of $431 million. We continue to be encouraged by the increased demand of our services across key markets fueling these results. As pricing and positive volume trends continue to benefit us, we delivered organic storage rental revenue growth of 6.8% in the first quarter. We drove double-digit growth in digital offerings, including data center, GDS, digital transformation services, and ALM, or asset lifecycle management. As you know, we've been growing quickly, and over the past two years, we have been growing faster than even our expectations. I have shared with you previously how our continued build-out of new products and services, as well as growth in these underlying markets, has now taken our total addressable market to over $120 billion, accelerating us on our growth trajectory path. Turning to our ALM business, we achieved several solid wins that spanned industries, many of which were made possible through the strong combination of Iron Mountain and the recently acquired IT Renew, which has been performing even better than we had anticipated. An example of the power of this combination can be seen in our expansion on a customer win with a large financial institution that we were originally awarded in early 2021. With the additional expertise we acquired with ITRenew, we expanded our offerings to include market-leading recycling expertise as the whole world is focused on how to better embrace the concepts around a more circular economy and reduce our impact on the environment. Along with this added expertise, we now have a full set of capabilities which are truly differentiating in the eyes of not only this customer, but also most of our global customers. Another ALM win this quarter was for a task order for Iron Mountain to provide onsite media destruction and ALM services to 18 U.S. locations, including data centers and office locations, in which all IT asset types will be included as in scope. Several key factors in awarding us the RFP included secure logistics, global footprint, partner network, and existing trusted relationships. For this customer, we expect to expand services to multiple regions, including the United Kingdom, Brazil, India, and Canada. These are just some of the wins this quarter, which demonstrate the strength of our expanded ALM platform, which will directly benefit from IRM's 225,000 loyal customer base, which includes 95% of the Fortune 1000s. Our continued drive in building an extraordinary set of synergistic and customer-centric solutions combined with our global reach and footprint propels our growth forward. Now let me share a few examples of how we've been empowering our customers' success and growth through our diverse digital transformation solutions, or GDS offerings, coupled with our customer focus. In the first quarter, we received fully executed service orders for two large deals in the energy vertical, for one of the world's largest oil and gas companies. Both projects will allow our customer to identify and access dark data to provide quicker decisions and to better manage their assets. The total value of these two deals represents more than $12 million. We are looking forward to replicating this success with other energy customers. Turning to the Asia-Pacific region, I would like to highlight a large win with an Asian full-service universal bank that I had the honor to visit in March. Iron Mountain will provide digitization services to assist our customers' local compliance requirements of DigiCur, which are anti-money laundering-related requirements, for a total contract value of $4 million. We are also thrilled to report a customer win that has resulted in a five-year, $8 million digital mailroom deal leveraging our content services platform, or Insight. This Fortune 500 mutual insurance customer, after handling their own mail in-house for more than 100 years, came to us with this opportunity, which was both complex and emotional for the customer. Our success here is a direct result of our long-standing strategic partnerships. We also continue to grow our business with Immigration, Refugees, and Citizenship Canada, or IRCC, which facilitates the arrival of immigrants, provides protection to refugees, and offers programming to help newcomers settle in Canada. In 2020, Iron Mountain began supporting IRCC with imaging a variety of application forms. There was an immediate need to process a backlog of applications with their staff working from home as a result of the pandemic. Today, we have processed approximately 115,000 applications representing over 14.7 million images. Building from this initial work in Toronto, we grew the project by securing an additional contract worth $2.9 million. In addition, we recently awarded a 1.3 million RFP to expand this image initiative to Atlantic and Western Canada. This would not have been possible without our work in supporting this customer from day one Positioning Iron Mountain is a critical business partner. In our Crozier business, we are pleased to highlight our installation of a piece of art entitled, Just What Is Your Position? by a distinguished LA artist at the new terminal at LAX. This installation highlights our team's expertise and precision with regard to complicated installation that will now be on display for millions of travelers. Last, but surely not least, turning to our data center business, you will recall that we initially expected to lease 50 megawatts this year. By the end of Q1, however, we had already signed a total of 35 megawatts, including a single tenant of 27 megawatts for our London 2 location. We are excited about the continued demand we see across Europe as we bring on added capacity to the market in the coming months. Since March, we have sold an additional 72-megawatt lease on our northern Virginia campus. This is a near-build-to-suit type of agreement where we are responsible for leasing on a long-term basis the land, the shell, and a large portion of the installed MEP, or mechanical electrical plant. Iron Mountain's data center solution met the security, scalability, and interconnection requirements of the customer in this critical global data center market. The lease is expected to commence and begin ramping mid-year 2024 and has a term of 15 years. Finally, I would like to share with you a joint ESG and data center win. As we have said before, ESG continues to be an important focus for us, shown through many years of producing annual corporate sustainability reports outlining our commitments and progress for nearly a decade. We recently announced a design certification of our Phoenix, Arizona, AZP2 data center, the first data center in North America to receive BREEAM certification. We are taking the lead on demonstrating the steps facility owners can take to ensure that their data centers are both efficient and resilient. Design for the facility has been certified under BREAM's new construction standard, a global recognized green building certification for new developments and achieve the BREAM excellent rating. This continued focus on building standards, together with already having long-term renewable power purchasing agreements which offset more than 100% of our data center energy requirements, places us firmly on the path to reach our 2040 commitments to use 100% renewable energy 100% of the time. To conclude, We continue to build on our growth momentum and expand our portfolio to exceed our customers' evolving needs as evidenced by our outstanding results this morning, including our highest ever revenue and all-time record EBITDA. With our strong footprint, powerful portfolio, and deep customer relationships, we are confident that we will continue this momentum. The future is bright, and I can't wait to see all we can accomplish. With that, I'll turn the call over to Barry.