EagleView Technology Corp.

Overview Key strengths Key risks Leadership position in the niche aerial imagery software market. Refinancing risk and negative cash flows may threaten liquidity Multiyear contracts with government clients provide revenue visibility. Exposure to a highly weather-dependent operating environment. Good profitability with EBITDA margins in the low-40% area Elevated S&P Global Ratings-adjusted leverage above 9x in 2022. Small operating scale and limited geographic diversity. Given the company?s weak cash flow generation and high outstanding balance on the revolver, we believe it may find it difficult to refinance its revolving credit facility, which matures in August 2023. We expect negative free operating cash flow (FOCF) generation in 2022 partially driven by elevated expenses from investment in product innovation and high labor costs.

...EagleView Technology Corp.'s refinancing risk and cash flow deficits may threaten its liquidity. Given the company's weak cash flow generation and high outstanding balance on the revolver, we believe it may find it difficult to refinance its revolving credit facility, which matures in August 2023. We expect negative free operating cash flow (FOCF) generation in 2022 partially driven by elevated expenses from investment in product innovation and high labor costs. While the company's liquidity improved in 2021, we believe any underperformance in relation to our forecast could result in an increased reliance on the revolving credit facility and diminishing cash balances....

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