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Press release from Business Wire

Iron Mountain Announces $850 Million Increase to Share Repurchase Authorization and $250 Million of Prepaid Variable Share Repurchases

Wednesday, May 04, 2011

Iron Mountain Announces $850 Million Increase to Share Repurchase Authorization and $250 Million of Prepaid Variable Share Repurchases08:30 EDT Wednesday, May 04, 2011 BOSTON (Business Wire) -- Iron Mountain Incorporated (NYSE: IRM), the information management company, today announced that its Board of Directors approved an increase in the amount authorized under the Company's existing share repurchase program of up to an additional $850 million in repurchases of its common stock. The Company also announced that it has entered into prepaid variable share repurchase agreements with affiliates of each of J.P. Morgan Securities LLC and Morgan Stanley & Co. Incorporated to repurchase an aggregate of $250 million of Iron Mountain common stock. With this new authorization and the $228 million remaining under its existing repurchase authorization as of March 31, 2011, the Company's repurchase program now totals approximately $1.1 billion, including the $250 million prepaid variable repurchases. “These actions taken by our Board represent a strong first step in delivering on our recently announced commitment to return $2.2 billion of capital to stockholders through 2013, including $1.2 billion within the next 12 months,” said Richard Reese, Iron Mountain's Executive Chairman and Chief Executive Officer. “This commitment to return cash to our stockholders is a key component of our 3-year strategic plan we announced in April. The actions announced today are a first step in our plan and demonstrate our Board's confidence in our ability to grow our business profitably while returning significant amounts of capital to our stockholders.” The $1.1 billion now authorized for share repurchases represents nearly 17% of the Company's outstanding common stock based on the closing price on May 3, 2011. The price of the shares repurchased may be different for each repurchase agreement and in each case will be determined based on a discount to certain volume weighted average trading prices of the Company's common stock over a period of up to three months. The shares delivered to the Company under both repurchase agreements will be retired when delivered. The $250 million of aggregate payments under both repurchase agreements will be funded with borrowings under the Company's revolving credit facility. Any purchases made under Iron Mountain's repurchase program may be made from time to time in the open market or through negotiated transactions. All purchases are subject to stock price, market conditions, corporate and legal requirements and other factors. In addition, the Finance Committee of the Board of Directors has been granted the authority to establish trading plans under Rule 10b5-1 of the Exchange Act. This will allow the Company to repurchase shares in the open market during periods in which the stock trading window is otherwise closed for the Company. As of April 25, 2011, the Company had approximately 201 million shares of its common stock outstanding. About Iron Mountain Iron Mountain Incorporated (NYSE: IRM) provides information management services that help organizations lower the costs, risks and inefficiencies of managing their physical and digital data. The Company's solutions enable customers to protect and better use their information—regardless of its format, location or lifecycle stage—so they can optimize their business and ensure proper recovery, compliance and discovery. Founded in 1951, Iron Mountain manages billions of information assets, including business records, electronic files, medical data, emails and more for organizations around the world. Visit www.ironmountain.com for more information. Forward Looking Statements This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and federal securities laws, and is subject to the safe-harbor created by such Act and laws. Forward-looking statements include statements regarding the Company's intent to repurchase shares, the Company's financial ability and sources to fund the repurchase program and the amounts of such repurchases. These statements involve known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those contemplated in the forward-looking statements. Such factors include, but are not limited to: (i) the cost to comply with current and future laws, regulations and customer demands relating to privacy issues; (ii) the impact of litigation or disputes that may arise in connection with incidents in which the Company fails to protect its customers' information;(iii) changes in the price for the Company's services relative to the cost of providing such services; (iv) changes in customer preferences and demand for the Company's services;(v) the cost or potential liabilities associated with real estate necessary for the Company's business; (vi) the performance of business partners upon whom the Company depends for technical assistance or management expertise outside the United States; (vii) changes in the political and economic environments in the countries in which the Company's international subsidiaries operate; (viii) in the various digital businesses in which the Company is engaged, the Company's ability to keep up with rapid technological changes, evolving industry expectations and changing customer requirements or competition for customers; (ix) the successful completion of our strategic alternative review process for the digital business; (x) claims that the Company's technology violates the intellectual property rights of a third party; (xi) the impact of legal restrictions or limitations under stock repurchase plans on price, volume or timing of stock repurchases; (xii) the impact of alternative, more attractive investments to dividends or stock repurchases; (xiii) the Company's ability or inability to complete acquisitions on satisfactory terms and to integrate acquired companies efficiently; (xiv) other trends in competitive or economic conditions affecting the Company's financial condition or results of operations not presently contemplated; and (xv) other risks described more fully in the Company's most recently filed Annual Report on Form 10-K under “Item 1A. Risk Factors” and other documents that the Company files with the Securities and Exchange Commission from time to time. Except as required by law, Iron Mountain undertakes no obligation to release publicly the result of any revision to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Investor Relations Contact:Iron Mountain IncorporatedStephen P. Golden, 617-535-4799Vice President, Investor Relationssgolden@ironmountain.com