Iron Mountain Incorporated — 2024 Q1

Thanks, George. It's Bill, and I appreciate you joining the call. The -- so let me start with kind of the macro view. So we're really very pleased with our storage, both in terms of the records management as well as in the data center side because you can see we're continuing to grow. We've never stored on the traditional side or the records management side, we've never stored more documents than we do today.

George, thanks for that question. Bill's got it right there on the revenue management within Global Rim. The timing of revenue management actions year-on-year is such that there was a bit of a shift in the first quarter. Last year, we had more of the revenue management actions in place right at the beginning of the year. And this year, we're back to our more normal cadence of kind of the Mark's time frame, generally speaking, in terms of getting them all into the market and realized.

Okay. Thanks, Nate. I'll give you the -- in terms of volume, we continue -- it's a rock-solid business in terms of RIM volume, and we continue to see that to flat, slightly up. So we don't see any change, and you can see that in our supplemental, we don't see any change in that trend, and we continue to feel really good about that.

And Nate, the only -- this is Barry. The only thing I would add is -- building on to Bill's point there at the beginning on volume. We are forecasting for volume to be up second quarter versus the first quarter. And consistent to slightly up for the full year as we've been saying for some time we're well on track with that forecast. And just as a reminder, we have never stored more physical volume than we are storing today.

Brendan, it's Barry. Thanks for that question. If we look at total ALM, we had $84 million of revenue. Now Regency, which, as you know, we just recently acquired was just over $32 million of revenue, as I mentioned on the prepared remarks. So that -- and by the way, that was very good performance. So that's on a run rate of nearly, let's call it, 130, you'll recall last quarter, I mentioned that embedded in the midpoint of our guidance, it was for Regency to be about 115. And so we are well on track with respect to that line.

Okay. So maybe I'll start, John, and then Barry can give you some more color on ALM. On the data center side, I think we covered pretty much what we said in the last quarter, we see those trends continuing. So think of it as a couple of hundred basis points above the historical cash-on-cash return.

Jon, it's Barry. On the ALM question as it relates to where we might see continued outsized performance, I don't want to come across promotional, but it's basically all regions because we are seeing ALM component pricing rise on a global basis, and we're seeing continued volume growth around the world, particularly in the U.S., thanks to our continued cross-selling to our some of our largest Fortune 1000 type clients as well as partnering together with the great team at Regency Technologies, we're seeing strong growth there.

This is Alex Hess on for Andrew Steinerman. Maybe 2 quick questions if you allow. On the ALM side, it appears that sort of -- if my math is right, that quarter-on-quarter, so 4Q '23 to 1Q '24 sort of the organic growth was about flat.

Go ahead with the longer term, and so we'll have them both.

All right. Sounds good. So on the more longer-term-oriented question. I just wanted to know like how do you think about your ability to sort of deliver on time, on budget within your data center business and maybe how that's benchmarked against your peer group?

Okay. Well, I'll deal with the longer term, and then I'll let Barry talk to you about the sequential quarter-over-quarter -- quarter-to-quarter on the ALM side. So on the -- I mean, the data center business, I think you can see that we're continuing to drive strong deployments across all of our campuses.

And Alex, it's Barry. Thanks for that question. You're doing the math right. It was up slightly on a dollar basis Q-to-Q. And I'll just note that as we said last quarter, on the decommissioning side, we had some clients last quarter that wanted to move some of their volume that they had been sitting on for some time. So there was a little bit of timing there.

Thanks, Eric, for the question. Yes. So I think let me kind of break out your question in 2 parts. From a capital standpoint, we're very much within our multiyear plan that we laid out at the Investor Day. So in terms of our ability to fund it, as I said, earlier is that we have a fully funded plan and that we don't see any issues between the strength that we have in our traditional records management business that generates as you know, tons of cash that we then -- after paying the dividend, we actually flow into data center and growth areas.

Yes, Eric, I would just add on and thank you for the compliment, by the way, on how the data center business is continuing to progress. The team is doing a phenomenal job. But I would just add on that we have multiple land parcels that we are in active negotiations with. We were looking at multiple sites.

Jon, just before you go into the next question, we had a little interference with the signal. Can you repeat the first part of the question or maybe just give us the first question again?

Okay. Thanks, Jon. I'll take the question in terms of government contracting. And Barry, as you know, runs our M&A shopping. So I'll let him talk about both the integration with Regency as well as the pipeline in terms of further roll-ups.

Jon, it's Barry. Thanks for that question on the integration and tuck-ins. First thing I'd say is the integration is going very well. No integration, I would ever say, is easy because, of course, combinations of companies are -- it is complex. However, I think our team is doing a very, very good job, and I alluded to in the script, that we are ahead of plan, and we are seeing more benefits in terms of operational efficiencies, driving better margins, improved capabilities.