Maxim Power Corp: A Strong Q3 and Strategic Moves

Maxim Power Corp. (TSX: MXG) has announced a robust set of financial results for the third quarter of 2024, accompanied by strategic moves that signal a commitment to shareholder value and operational flexibility. The company declared a special dividend of $0.50 per share, amended its Senior Credit Facility, and converted and terminated its Convertible Loan Facility, all contributing to a positive outlook for the future.

**Financial Performance and Special Dividend**

Maxim Power Corp.'s Q3 2024 financial highlights include revenue of $25.7 million, a significant increase from the $2.5 million reported in the same quarter of 2023. Net income also surged to $10.7 million, reversing the $4.9 million loss incurred in the previous year. This strong performance is largely attributable to the operational stability of the M2 combined cycle gas turbine (CCGT) plant, which returned to service following the Non-Injury Fire in 2023.

In recognition of this robust financial performance, Maxim Power Corp. declared a special dividend of $0.50 per share, totaling approximately $31.8 million. This cash dividend, payable on November 29, 2024, to shareholders of record as of November 21, 2024, demonstrates the company's commitment to returning value to shareholders and reflects its strong financial health.



**Operational Flexibility and Strategic Moves**

Maxim Power Corp. has taken strategic steps to enhance its operational flexibility and financial position. The amendment to the Senior Credit Facility increased and merged the combined availability of Revolver Facility #1 and Letter of Credit Facility #1 from $19.1 million to $25.0 million. This move, coupled with the release of $10.1 million of restricted cash, provides the company with more financial maneuverability to manage its business effectively.

Moreover, the conversion and termination of the Convertible Loan Facility ($29.4 million) strengthened Maxim Power Corp.'s balance sheet. This move reduced debt and increased the number of outstanding shares to 63.6 million, improving liquidity and cash flow while eliminating potential dilution from the conversion feature.



**Looking Ahead**

Maxim Power Corp.'s strong Q3 2024 financial performance, coupled with strategic moves to enhance operational flexibility and shareholder value, positions the company well for future growth. The special dividend, increased capacity of Revolver Facility #1, and the release of restricted cash all contribute to a positive outlook for Maxim Power Corp. As the company continues to navigate the energy landscape, investors should monitor its progress and consider the potential for substantial returns over time.

In conclusion, Maxim Power Corp.'s Q3 2024 financial results and strategic moves demonstrate a commitment to shareholder value and operational flexibility. With a strong financial performance, a special dividend, and enhanced liquidity, the company is well-positioned for continued growth and success in the energy sector.