Iron Mountain Inc. (IRM) has reported 7.41 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $58.12 million, or $0.22 a share in the quarter, compared with $62.77 million, or $0.30 a share for the same period last year. On an adjusted basis, earnings per share were at $0.24 for the quarter compared with $0.33 in the same period last year.
Revenue during the quarter grew 25.07 percent to $938.88 million from $750.69 million in the previous year period. Gross margin for the quarter contracted 201 basis points over the previous year period to 54.55 percent. Total expenses were 84.26 percent of quarterly revenues, up from 82.67 percent for the same period last year. That has resulted in a contraction of 159 basis points in operating margin to 15.74 percent.
Operating income for the quarter was $147.76 million, compared with $130.07 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $292.57 million compared with $235.15 million in the prior year period. At the same time, adjusted EBITDA margin contracted 16 basis points in the quarter to 31.16 percent from 31.32 percent in the last year period.
For financial year 2017, Iron Mountain Inc. expects revenue to be in the range of $3,750 million to $3,840 million. It projects diluted earnings per share to be in the range of $1.15 to $1.25 on adjusted basis for the same period.
Working capital turns negative
Working capital of Iron Mountain Inc. has turned negative to $219.83 million on Mar. 31, 2017 from positive $83.40 million on Mar. 31, 2016. Current ratio was at 0.85 as on Mar. 31, 2017, down from 1.11 on Mar. 31, 2016.
Days sales outstanding went down to 62 days for the quarter compared with 69 days for the same period last year.
Debt increases substantially
Iron Mountain Inc. has witnessed an increase in total debt over the last one year. It stood at $6,343.98 million as on Mar. 31, 2017, up 26.34 percent or $1,322.70 million from $5,021.27 million on Mar. 31, 2016. Total debt was 65.59 percent of total assets as on Mar. 31, 2017, compared with 78.18 percent on Mar. 31, 2016. Debt to equity ratio was at 3.33 as on Mar. 31, 2017, down from 9.64 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 1.72 for the quarter from 1.94 for the same period last year.
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