EagleView Technology Corp.

Overview Key strengths Key risks Good market position in niche aerial imagery software. Exposure to a highly weather-dependent operating environment. Multiyear contracts with clients provide revenue visibility. We forecast S&P Global Ratings-adjusted leverage will remain elevated above 8x in 2023. Good profitability with EBITDA margins in the low-40% area. Small operating scale and limited geographic diversity. We forecast the company will generate negligible free operating cash flow (FOCF) in the next two years because of costly business investments. Furthermore, we forecast an elevated interest rate environment will contribute to $10 million more of interest expense in 2024 as the company?s interest rate hedges expire late this year. Despite EBITDA growth, we expect leverage will remain elevated above 8x in the

...EagleView's cash flow remains constrained by elevated capital expenditure and higher interest expense. We forecast the company will generate negligible free operating cash flow (FOCF) in the next two years because of costly business investments. Furthermore, we forecast an elevated interest rate environment will contribute to $10 million more of interest expense in 2024 as the company's interest rate hedges expire late this year. Financial-sponsor ownership and an aggressive financial policy constrain leverage. Despite EBITDA growth, we expect leverage will remain elevated above 8x in the next 12 months. The company's minimal cash flow generation limits its ability to pay down debt, and we believe the company will focus on investing in the business in lieu of debt repayment. Private-equity ownership further constrains our view of financial policy. Multiyear contracts and recurring revenue streams support improvement in operating performance. We forecast EagleView will generate good revenue...

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