Iron Mountain Inc (IRM) has reported a 69.36 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $7.08 million, or $0.03 a share in the quarter, compared with $23.11 million, or $0.11 a share for the same period last year. On an adjusted basis, earnings per share were at $0.27 for the quarter compared with $0.31 in the same period last year.
Revenue during the quarter grew 26.29 percent to $942.82 million from $746.53 million in the previous year period. Gross margin for the quarter contracted 304 basis points over the previous year period to 54.41 percent. Total expenses were 85.63 percent of quarterly revenues, up from 83.01 percent for the same period last year. That has resulted in a contraction of 262 basis points in operating margin to 14.37 percent.
Operating income for the quarter was $135.45 million, compared with $126.82 million in the previous year period.
For fiscal year 2016, Iron Mountain Inc forecasts revenue to be in the range of $3,450 million to $3,550 million. The company expects diluted earnings per share to be in the range of $1.10 to $1.20 on adjusted basis.
Working capital increases sharply
Iron Mountain Inc has recorded an increase in the working capital over the last year. It stood at $443.31 million as at Sep. 30, 2016, up 39.62 percent or $125.79 million from $317.52 million on Sep. 30, 2015. Current ratio was at 1.43 as on Sep. 30, 2016, up from 1.35 on Sep. 30, 2015.
Days sales outstanding went down to 63 days for the quarter compared with 72 days for the same period last year.
Debt moves up
Iron Mountain Inc has witnessed an increase in total debt over the last one year. It stood at $6,459.23 million as on Sep. 30, 2016, up 24.83 percent or $1,284.93 million from $5,174.29 million on Sep. 30, 2015. Total debt was 65.21 percent of total assets as on Sep. 30, 2016, compared with 77.58 percent on Sep. 30, 2015. Debt to equity ratio was at 3 as on Sep. 30, 2016, down from 8.35 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 1.63 for the quarter from 1.95 for the same period last year.
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