Maxim Crane Works Holdings Capital LLC

Overview Key strengths Key risks Leading provider of specialized crane services with a strong market position in the U.S. Operates in cyclical and competitive end-markets. Modest scale and geographic diversity. Limited product diversity compared with larger and more diverse equipment rental companies. Ability to maintain adequate liquidity and generate positive free cash flow through a downturn. Significant increases in raw material and logistic costs have pressured margins. Maxim Crane serves the industrial, nonresidential construction, and infrastructure end-markets, which we view as cyclical. Maxim Crane?s revenue and operating performance were challenged in 2020 and 2021 amid lower demand for the company?s equipment and end-market weakness stemming from the pandemic. We originally forecasted demand for the company?s equipment to increase moderately in

...Maxim Crane remains susceptible to volatility in its end-markets, but we expect pent-up demand to improve its topline in 2022. Maxim Crane serves the industrial, nonresidential construction, and infrastructure end-markets, which we view as cyclical. Maxim Crane's revenue and operating performance were challenged in 2020 and 2021 amid lower demand for the company's equipment and end-market weakness stemming from the pandemic. We originally forecasted demand for the company's equipment to increase moderately in 2021, resulting in flat organic revenue in 2021. However, the company's revenues declined 3.6% to $780.7 million in 2021 due to prolonged softness in its industrial vertical, specifically related to petrochemical and refinery end-markets. Nonresidential construction activity and economic growth are key demand drivers for Maxim Crane's business. Over the next 12 months, we expect a soft economic backdrop with nonresidential investment to decline 2.8% in 2022. Nonetheless, we believe...

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