Iron Mountain Incorporated

Good morning and welcome to the Iron Mountain Fourth Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key 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, then you can rejoin the queue. Please note, today's event is being recorded. I would now like to turn the conference over to Jillian Tiltman, Senior Vice President and Head of Investment Relations. Please go ahead.

Thanks, Rocco. Good morning and welcome to our fourth quarter 2023 earnings conference call. On today's call, we will refer to materials available on our investor relations website. We are joined here today by Bill Mooney, President and Chief Executive Officer, and Barry Heitman, 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 state's harbor language on slide two, and our annual report on Form 10-K 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 used several non-GAAP measures when presenting our financial results. We have included the reconciliations to these measures in our supplemental financial information. And with that, I'll turn the call over to Bill.

Thank you, Jillian, and thank you all for joining us today. We are pleased to report another outstanding year for Iron Mountain. We achieved record revenue in adjusted EBITDA in both the fourth quarter and the full year. Our record results are a testament to the devotion and hard work of our team and our resilient and growing business model. In the fourth quarter, we achieved revenue of $1.42 billion, yielding 8.7% total organic revenue growth, and record-adjusted EBITDA of $525 million, up 11%. For the full year, we delivered record results across the board, revenue of $5.5 billion, adjusted EBITDA of $2 billion, and AFFO of $1.2 billion. I'll now discuss some ways in which we have been working with our customers, which has led to this growth. Let's begin with our records management business. A win of note was with one of the largest health systems in the U.S., awarding Iron Mountain a contract to significantly enhance its management of records across 140 hospitals and 2,600 care sites. Building on a strong long-term relationship with the customer, we are now implementing a rigorous compliance program that will reduce the cost and meet records retention requirements, leading to a more efficient service. This win is particularly representative of our focus on cross-selling through Matterhorn as this customer is utilizing a variety of our products and services across our business lines, including digital services along with traditional records management and shredding. Another win showing Iron Mountain's cross-selling power occurred with a Hungarian industrial gas supplier. We are helping this customer to create space at its facilities by storing and then digitizing its records. We are also exploring opportunities to deploy our digital mailroom solution as our partnerships develop, thereby expanding this relationship across our product suite. The last win to highlight in our records management business is a new contract with the Swiss division of a British multinational asset management company to relocate its physical records to one site and digitize them over time. In addition to freeing up physical space, our solution will ensure our customers' records are stored safely and compliantly and enables more efficient access to the digitized information. Moving now to some wins in our digital solutions business, we won a contract from a large aerospace customer to deploy our Insight platform to manage and translate invoices from 22 languages into English. The customer chose our solution ahead of competing proposals thanks to Insight's embedded AI engine which gives it the ability to not only store, but to automatically classify a range of documents in a highly secure manner. Another win this quarter was with a Canadian government agency. This agency, which manages workplace compensation claims, has been a customer of our records management services for more than 15 years. Our successful delivery of digital mailroom and imaging on-demand solutions during the COVID pandemic has led to a new master service agreement for digitizing services worth more than $10 million over the contract length. We will preserve, scan around 47,000 rolls of microfilm to produce 240 million images on our Insight platform, helping the agency to process compensation claims faster than ever and delivering a solid recurring revenue stream to drive our growth. In Brazil, a major television network that has been a records management customer for almost 25 years has asked us to manage the indexing and digitization of 50,000 boxes of records stored at its locations in Iron Mountain's facilities in the country. Our Insight platform is at the heart of our solution, enabling the customer to manage requests to digitize from all parts of the business in one place effectively and efficiently. Finally, the Hong Kong division of a major multinational bank has chosen Iron Mountain to be its partner in a major transformation of its finance operations. This customer manages a large volume of finance documents and has outsourced this work to Iron Mountain with a goal of streamlining the process of checking and scanning these files. We see the potential to scale the solution for the bank in other locations including Singapore, India, the U.S., the United Kingdom, and the United Arab Emirates. Now let's turn to our data center business. We continue to be pleased with the growth trajectory of our data center business, which has only accelerated with the rapid adoption of AI-enabled services. We are pleased to have signed 124 megawatts well ahead of our initial plan for the year. We continue to see tremendous opportunity in serving both hyperscale and colocation customers and significant growth potential for our footprint. An example in the quarter, we signed a seven-year agreement to provide capacity at our New Jersey data center for an automated trading technology company that is expanding in the U.S. Our reputation for compliance and sustainability were key to winning this business, and it was important for our customer to receive 100% traceable and verifiable energy and carbon records in support of its sustainability goals. Also in the U.S., we were pleased to win a data center deal with a secure cloud storage company that is growing rapidly across North America. Our reliability and close relationships since first doing business with this customer a year ago helped to seal this new deal, as did the strategic location of our facility in Northern Virginia. Moving to India, we continue to see strong demand for capacity. We closed a data center contract with a major bank in the country in the fourth quarter. This customer chose our Mumbai facility specifically in Iron Mountain more broadly for our ability to provide a secure data center for its large domestic branch platform close to its headquarters. Turning to our asset lifecycle management business or ALM, we secured a significant contract with a global financial services company. Our ability to integrate our secure ALM services with the customer's existing business management platform was critical and has enabled them to streamline how they order, complete, and report on their IT asset disposition activities. Our solution was an excellent demonstration of how deeply we understand the needs of our customers, especially in the highly regulated world of financial services. Staying with ALM business, in the quarter we won a contract with a U.S. vehicle insurance company that has been an existing customer of ours for many years. Having shifted its employees to a remote working model, our customer needed to partner with the capacity to retrieve over 37,000 devices from more than 240 locations nationwide, then process, refurbish, and return them for distribution. Our solution provides our customer with better visibility of its IT assets and enables them to manage this activity more efficiently. I should also highlight the synergy between our ALM and data center business when it comes to data center renewal and decommissioning. We are now in a position to not only provide co-location and cloud migration services, but we can also securely and responsibly dispose of obsolete IT equipment. An example of such an opportunity in this quarter was a major win with one of the world's leading producers of business process management software. We managed the secure decommissioning of over 40 data centers globally, sanitized the IT assets and remarketed them to deliver a significant return in value. Also in the quarter, we were awarded a contract by one of the oldest financial institutions in the US for a similar data center decommissioning project. Both wins demonstrate that Iron Mountain is uniquely positioned to minimize risk and maximize savings as a single source partner for these activities. Finally, let me take a moment to highlight our acquisition of Regency Technologies. Regency's team makes a great addition to the leadership of our rapidly growing ALM business and gives us additional capabilities to serve this fast growing sector at the heart of the circular economy. Furthermore, this acquisition together with the momentum we have been building in ALM through the strengthening of component pricing and cross-selling sets us up well for continued success. To conclude, I would like to thank our team for their resilience, hard work, and dedication as we continue our Matterhorn climb and continue to serve over 225,000 customers. We are thrilled to progress ahead of expectations and it is due to the commitment of our Mountaineers. As we look to 2024 and beyond, the momentum we have built will continue to drive the opportunities ahead with another year of double-digit top-line growth expected. Barry will speak in detail about our financial guidance for the year ahead. With that, I'll turn the call over to Barry.