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Fund manager attacks Iron Mountain performance

Fund manager, Elliott Management Corporation, which owns slightly under 5 percent of Iron Mountain's common stock, has written to the board of directors of Iron Mountain criticising the company’s performance and proposing the appointment of four new independent directors.

In addition, Elliott filed a presentation with the SEC highlighting its concerns, which is publicly available here.

Iron Mountain responded with the following statement (verbatim):

Iron Mountain Comments on Elliott Announcement

Iron Mountain Incorporated (NYSE: IRM), the information management company, today issued the following statement in response to filings made today by Elliott Associates, L.P. and Elliott International, L.P. (together, "Elliott"):

As the Company previously disclosed in a Form 8-K filing with the Securities and Exchange Commission on March 7, 2011, the Iron Mountain Board will evaluate Elliott's proposals and make a recommendation in due course.

Iron Mountain continues to expand its global leadership position. Revenues increased by 4% to $3.1 billion in 2010, supported by strong growth in international markets.

Iron Mountain noted that over the past four years, while continuing to expand its business globally, the Company has delivered consistently strong operating results and free cash flow performance. Since 2006, the Company has increased Adjusted OIBDA(1)and Free Cash Flow(1) at compounded annual growth rates of 12% and 68%, respectively, well ahead of revenue growth, driven by its focus on operational excellence and a 40% increase in capital efficiency.

With our strong operating performance, record cash flows and strong balance sheet, Iron Mountain remains committed to investing in profitable growth, while returning capital to stockholders. This is evidenced by the Company's recent 200% increase in its quarterly dividend to yield approximately 3%. In 2010, the Company repurchased 4.8 million shares, or approximately 2% of the total shares outstanding, under its $350 million share repurchase authorization. Iron Mountain's Board remains focused on enhancing stockholder value, and will continue to take actions to achieve this objective.

On March 7, 2011, Iron Mountain filed with the SEC a Form 8-K regarding Elliott's proposals, which can be found at www.sec.gov.
J.P. Morgan Securities LLC is serving as financial advisor to Iron Mountain, and Weil, Gotshal & Manges LLP and Sullivan & Worcester LLP are serving as legal advisors.

(1) Adjusted OIBDA and Free Cash Flow are non-GAAP financial measures. Please refer to p. 34 of the Company's 2010 Annual Report on Form 10-K filed with the SEC on March 1, 2010 or the Investor Relations page of the Company's web site at www.ironmountain.com for additional information and reconciliations to the nearest GAAP measures.

•Date: 11th March 2011 • Region: US •Type: Article •Topic: BC companies

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