Iron Mountain (IRM) has reported 757.81 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $48.94 million, or $0.19 a share in the quarter, compared with $5.70 million, or $0.03 a share for the same period last year. Revenue during the quarter grew 24.16 percent to $934.19 million from $752.43 million in the previous year period. Gross margin for the quarter contracted 144 basis points over the previous year period to 55.45 percent. Total expenses were 85.07 percent of quarterly revenues, up from 83.62 percent for the same period last year. That has resulted in a contraction of 145 basis points in operating margin to 14.93 percent.
Operating income for the quarter was $139.46 million, compared with $123.27 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $296.50 million compared with $237.72 million in the prior year period. At the same time, adjusted EBITDA margin improved 14 basis points in the quarter to 31.74 percent from 31.59 percent in the last year period.
Iron Mountain forecasts revenue to be in the range of $3,750 million to $3,840 million for fiscal year 2017. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $1.15 to $1.25 on adjusted basis.
Working capital increases sharplyIron Mountain has recorded an increase in the working capital over the last year. It stood at $65.55 million as at Dec. 31, 2016, up 307.62 percent or $49.47 million from $16.08 million on Dec. 31, 2015. Current ratio was at 1.06 as on Dec. 31, 2016, up from 1.02 on Dec. 31, 2015.
Debt increases substantially
Iron Mountain has witnessed an increase in total debt over the last one year. It stood at $6,251.18 million as on Dec. 31, 2016, up 29.01 percent or $1,405.50 million from $4,845.68 million on Dec. 31, 2015. Total debt was 65.89 percent of total assets as on Dec. 31, 2016, compared with 76.30 percent on Dec. 31, 2015. Debt to equity ratio was at 3.23 as on Dec. 31, 2016, down from 9.17 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 1.63 for the quarter from 1.82 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
