<PAGE>

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                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C. 20549

                               ----------------
                                   FORM 10-Q
                               ----------------

(Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

     For the quarterly period ended June 30, 1999

                                      OR

[_]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

     For the transition period        to

Commission file number:

                          ANTHONY CRANE RENTAL, L.P.
            (Exact Name of Registrant as Specified in Its Charter)

             Pennsylvania                            25-1739175
     (State or Other Jurisdiction                 (I.R.S. Employer
   of Incorporation or Organization)             Identification No.)

                             1165 Camp Hollow Road
                            West Mifflin, PA 15122
                   (Address of Principal Executive Offices)

                                (412) 469-3700
             (Registrant's Telephone Number, Including Area Code)

                               ----------------

   Indicate by check mark whether the registrant: (1) has filed all reports
required by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

                                Yes [X]  No [_]

Number of common partnership interests outstanding as of August 13, 1999: 100

-------------------------------------------------------------------------------
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<PAGE>

                          ANTHONY CRANE RENTAL, L.P.

                         QUARTERLY REPORT ON FORM 10-Q
                 For the Quarterly Period Ended June 30, 1999

                               TABLE OF CONTENTS

                                    Part I

<TABLE>
<S>     <C>                                                                           <C>
ITEM 1  Index to Financial Statements...............................................    2

        Management's Discussion and Analysis of Financial Condition and Results of
ITEM 2  Operations..................................................................   15
</TABLE>

                                    Part II

<TABLE>
<S>     <C>                                                                           <C>
ITEM 1  Legal Proceedings...........................................................   20

ITEM 2  Changes in Securities.......................................................   *

ITEM 3  Defaults Upon Senior Securities.............................................   *

ITEM 4  Submission of Matters to a Vote of Security Holders.........................   *

ITEM 5  Other Information...........................................................   *

ITEM 6  Index to Exhibits and Reports on Form 8-K...................................   20

        Signatures..................................................................   21
</TABLE>
--------
* Item not applicable to the Registration for this filing on Form 10-Q.

   Unless otherwise indicated, the terms "Anthony Crane Rental", "ACR" and
"the Company" refer collectively to Anthony Crane Rental, L.P., and its
subsidiaries.

   Certain statements contained in this report are forward-looking in nature.
These statements are generally identified by the inclusion of phrases such as
"the Company expects", "the Company anticipates", "the Company believes", "the
Company estimates", and other phrases of similar meaning. Whether such
statements ultimately prove to be accurate depends upon a variety of factors
that may affect the business and operations of the Company.
<PAGE>

                                     PART I

ITEM 1.

              INDEX TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
                                                                          Page
                                                                          ----
<S>                                                                       <C>
Condensed Consolidated Balance Sheets--June 30, 1999 (Unaudited) and
 December 31, 1998.......................................................   3

Condensed Consolidated Statements of Operations for the Three Months
 Ended
 June 30, 1999 and 1998 (Unaudited)......................................   4

Condensed Consolidated Statements of Operations for the Six Months Ended
 June 30, 1999 and 1998 (Unaudited)......................................   5

Condensed Consolidated Statements of Cash Flows for the Six Months Ended
 June 30, 1999 and 1998 (Unaudited)......................................   6

Notes to Condensed Consolidated Financial Statements.....................   7
</TABLE>

                                       2
<PAGE>

                           ANTHONY CRANE RENTAL, L.P.

                     CONDENSED CONSOLIDATED BALANCE SHEETS

                                 (In thousands)
<TABLE>
<CAPTION>
                                                        June 30,   December 31,
                                                          1999         1998
                                                       ----------- ------------
                                                       (Unaudited)
<S>                                                    <C>         <C>
                        ASSETS
Current Assets:
  Cash and cash equivalents...........................  $  7,436     $  5,633
  Trade accounts receivable, net of allowance for
   doubtful accounts of $1,684 at June 30 and $1,500
   at December 31.....................................    37,063       27,774
  Other receivables...................................     3,561        2,192
  Prepaid expenses and deposits.......................     1,261        1,382
                                                        --------     --------
    Total current assets..............................    49,321       36,981
Rental equipment, net.................................   367,883      282,679
Property and equipment, net...........................    58,758       50,368
Intangible assets, net................................     5,213        3,334
Debt issuance costs, net..............................    16,075       16,801
Other assets..........................................       640          497
                                                        --------     --------
    Total assets......................................  $497,890     $390,660
                                                        ========     ========
          LIABILITIES AND PARTNERS' CAPITAL
Current Liabilities:
  Cash overdraft......................................  $  2,789     $  1,195
  Accounts payable--trade.............................    27,994        7,890
  Accrued interest....................................     9,497        9,216
  Accrued wages and employee benefits.................     3,040        2,258
  Accrued taxes, other than income taxes..............     4,560        4,430
  Other accrued liabilities...........................     1,179        1,897
  Current portion of obligation under capital leases..     4,858           94
                                                        --------     --------
    Total current liabilities.........................    53,917       26,980
Long-term debt, less current portion (Note 4).........   437,000      353,000
Long-term obligation under capital leases.............       750          772
Other non-current liabilities.........................     2,285        1,684
                                                        --------     --------
    Total liabilities.................................   493,952      382,436
                                                        --------     --------
Partners' capital:
  Holdings capital....................................     3,879        8,165
  Accumulated other comprehensive income..............        59           59
                                                        --------     --------
    Total partners' capital...........................     3,938        8,224
                                                        --------     --------
Total liabilities and partners' capital...............  $497,890     $390,660
                                                        ========     ========
</TABLE>

   The accompanying notes are an integral part of the condensed consolidated
financial statements.


                                       3
<PAGE>

                           ANTHONY CRANE RENTAL, L.P.

                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

               For the three months ended June 30, 1999 and 1998
                                 (In thousands)
<TABLE>
<CAPTION>
                                                           Three Months Ended
                                                                June 30,
                                                           --------------------
                                                             1999       1998
                                                           ---------  ---------
                                                               (Unaudited)
<S>                                                        <C>        <C>
Revenues:
  Equipment rentals.......................................   $53,494    $46,572
  Equipment sales.........................................     7,879      4,514
                                                           ---------  ---------
    Total revenues........................................    61,373     51,086
                                                           ---------  ---------
Cost of revenues:
  Cost of equipment rentals...............................    33,747     27,224
  Cost of equipment sales.................................     7,094      3,591
                                                           ---------  ---------
    Total cost of revenues................................    40,841     30,815
                                                           ---------  ---------
Gross profit..............................................    20,532     20,271
Selling, general and administrative expenses..............    11,639      9,898
                                                           ---------  ---------
Income from operations....................................     8,893     10,373
Interest expense..........................................     9,646      4,405
Other (income) expense, net...............................      (191)       203
                                                           ---------  ---------
(Loss) income before taxes................................      (562)     5,765
                                                           ---------  ---------
Provision for state taxes.................................        --         --
                                                           ---------  ---------
Net (loss) income......................................... $    (562) $   5,765
                                                           =========  =========
</TABLE>

   The accompanying notes are an integral part of the condensed consolidated
financial statements.

                                       4
<PAGE>

                           ANTHONY CRANE RENTAL, L.P.

                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                For the six months ended June 30, 1999 and 1998
                                 (In thousands)
<TABLE>
<CAPTION>
                                                              Six Months Ended
                                                                  June 30,
                                                              -----------------
                                                                1999     1998
                                                              --------  -------
                                                                (Unaudited)
<S>                                                           <C>       <C>
Revenues:
  Equipment rentals.......................................... $ 99,761  $90,153
  Equipment sales............................................   10,513    9,396
                                                              --------  -------
    Total revenues...........................................  110,274   99,549
                                                              --------  -------
Cost of revenues:
  Cost of equipment rentals..................................   63,426   54,040
  Cost of equipment sales....................................    8,915    7,687
                                                              --------  -------
    Total cost of revenues...................................   72,341   61,727
                                                              --------  -------
Gross profit.................................................   37,933   37,822
Selling, general and administrative expenses.................   21,269   19,343
                                                              --------  -------
Income from operations.......................................   16,664   18,479
Interest expense.............................................   18,475    8,620
Other (income) expense, net..................................     (189)    (470)
                                                              --------  -------
(Loss) income before taxes...................................   (1,622)  10,329
                                                              --------  -------
Provision for state taxes....................................      101       60
                                                              --------  -------
Net (loss) income............................................ $ (1,723) $10,269
                                                              ========  =======
</TABLE>

   The accompanying notes are an integral part of the condensed consolidated
financial statements.

                                       5
<PAGE>

                           ANTHONY CRANE RENTAL, L.P.

                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                 (In thousands)
<TABLE>
<CAPTION>
                                                            Six Months Ended
                                                                June 30,
                                                            ------------------
                                                              1999      1998
                                                            --------  --------
                                                               (Unaudited)
<S>                                                         <C>       <C>
Net cash provided by operating activities.................. $  1,107  $ 15,070
                                                            --------  --------
Cash flows from investing activities:
  Cash paid for business acquisitions, net of cash
   acquired................................................  (38,140)       --
  Proceeds from sale of fixed assets, including rental
   equipment...............................................    7,932     5,149
  Proceeds from sale of property...........................       --     6,055
  Capital expenditures.....................................  (51,749)  (42,474)
  Other....................................................       --       (58)
                                                            --------  --------
    Net cash used in investing activities..................  (81,957)  (31,328)
                                                            --------  --------
Cash flows from financing activities:
  Change in cash overdraft.................................    1,594        --
  Proceeds from issuance of debt...........................   84,000    26,000
  Payments of debt.........................................     (273)       --
  Payments under capital leases............................     (198)      (45)
  Expenditures for debt issuance costs and other
   intangibles.............................................   (1,160)   (2,304)
  Partner withdrawals......................................   (1,310)   (9,551)
                                                            --------  --------
    Net cash provided by financing activities..............   82,653    14,100
                                                            --------  --------
Net increase (decrease) in cash and cash equivalents.......    1,803    (2,158)
Cash and cash equivalents, beginning of period.............    5,633     4,375
                                                            ========  ========
Cash and cash equivalents, end of period................... $  7,436  $  2,217
                                                            ========  ========
Noncash investing and financing activities:
  Expenditures for rental equipment purchases included in
   accounts payable........................................ $ 25,032  $ 13,365
                                                            ========  ========
  Non-cash partner withdrawals............................. $  1,050  $  3,463
                                                            ========  ========
</TABLE>

   The accompanying notes are an integral part of the condensed consolidated
financial statements.

                                       6
<PAGE>

                          ANTHONY CRANE RENTAL, L.P.

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                                (In thousands)

1. Description of Business

   Anthony Crane Rental, L.P. (the "Partnership") and its subsidiaries are
engaged in the rental of cranes and other heavy equipment primarily for
industrial maintenance and construction to a variety of companies in the
petrochemical, paper, steel, utility, mining and multiple other industries.
The Partnership provides twenty-four hour service, seven days a week to
customers principally in the United States. The Partnership also sells new and
used equipment to commercial construction, industrial and residential users.
Effective July 22, 1998, as part of the Company's recapitalization, the
Company became 99% directly-owned by Anthony Crane Rental Holdings, L.P.
(Holdings) (a former subsidiary of the Company which has no current operations
other than through the Company).

2. Basis of Presentation

   The condensed consolidated financial statements include the accounts of the
Partnership and all of its subsidiaries. All significant intercompany accounts
and transactions have been eliminated in consolidation.

   The accompanying unaudited financial statements of Anthony Crane Rental,
L.P. have been prepared in accordance with generally accepted accounting
principles for interim financial information and with the instructions to Rule
10-01 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. During interim periods, the Partnership
follows the accounting policies set forth in its Annual Report on Form 10-K
filed with the Securities and Exchange Commission. Users of financial
information produced for interim periods are encouraged to refer to the
footnotes contained in the Form 10-K when reviewing interim financial results.

   In the opinion of management, all adjustments which are of a normal and
recurring nature necessary for a fair presentation of the results of
operations of these interim periods have been included. Net loss for the three
and six month periods ended June 30, 1999, is not necessarily indicative of
the results to be expected for the full fiscal year. The Management Discussion
and Analysis, which follows these notes, contains additional information on
the results of operations and financial position of the Company. Those
comments should be read in conjunction with these financial statements.

3. Cash Flow Statement

   Supplemental cash flow information with respect to the acquisitions
discussed in Note 5 was as follows:

<TABLE>
<S>                                                                     <C>
Detail of Acquisitions:
  Fair value of assets acquired, net of cash acquired.................. $47,974
  Fair value of liabilities assumed....................................  (9,334)
  Note payable to seller...............................................    (500)
                                                                        -------
    Cash paid for acquisitions......................................... $38,140
                                                                        =======
</TABLE>


                                       7
<PAGE>

                          ANTHONY CRANE RENTAL, L.P.

       NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

                                (In thousands)

4. Long-Term Debt

   Long-term debt consists of the following:

<TABLE>
<CAPTION>
                                                             June 30, December 31,
                                                               1999       1998
                                                             -------- ------------
<S>                                                          <C>      <C>
10 3/8% Company Senior Notes, due 2008 (A).................. $155,000   $155,000
Senior Credit Facility of the Company (B)
   Revolving Credit Facility................................  232,000    148,000
  Term Loan.................................................   50,000     50,000
                                                             --------   --------
                                                             $437,000   $353,000
                                                             ========   ========
</TABLE>
--------
(A) The Senior Notes of $155 million were issued in connection with the
    Company's recapitalization and mature on August 1, 2008. Interest on the
    Senior Notes accrues at the rate of 10 3/8% per annum from the issue date
    and is payable semi-annually.

    The Senior Notes are not redeemable prior to August 1, 2003. Thereafter,
    the Senior Notes may be redeemed at any time at the option of the Company
    at premium percentages ranging between approximately 105% and 102% (based
    on the year of redemption) if redeemed after August 1, 2003, but before
    August 1, 2006. Subsequent to August 1, 2006, the Senior Notes may be
    redeemed at no premium to the Company. Not withstanding the foregoing, at
    any time prior to August 1, 2001, the Company may on any one or more
    occasions redeem a total of up to 35% of the aggregate principal amount of
    the Senior Notes originally issued under the Senior Notes Indenture at a
    redemption price of approximately 110 3/8% of the principal if that
    redemption is paid for with the proceeds of an equity offering.

    The Senior Notes Indenture contains certain restrictive covenants that
    limit, among other things, the ability of the Company to make
    distributions, incur additional indebtedness, consolidate or sell
    substantially all of its assets, and enter into transactions with related
    parties.

(B) The Senior Credit Facilities consist of a $275.0 million six-year non-
    amortizing Revolving Credit Facility and a $50.0 million eight-year non-
    amortizing Term Loan. The Revolving Credit Facility is available on a
    revolving basis subject to a borrowing base during the period commencing
    on the date of the Closing of the recapitalization transaction (July 22,
    1998) and ending on the date that is six years after the date of the
    Closing. At the Company's option, loans made under the Revolving Credit
    Facility bear interest at either (i) the Base Rate (defined as the highest
    of the rate of interest announced publicly by Fleet National Bank from
    time to time as its prime rate or the Federal funds effective rate from
    time to time plus 0.50%) plus a margin of 1.25%, subject to adjustment
    based on a leverage test, or (ii) the reserve-adjusted London Interbank
    Offered Rate ("LIBO") plus a margin of 2.25%, subject to adjustment based
    on a leverage test. The Term Loan bears interest, at the Company's option,
    at either (i) the Base Rate plus a margin of 1.75%, or (ii) the reserve-
    adjusted LIBO rate plus a margin of 2.75%.

    Revolving loans may be borrowed, repaid and reborrowed from time to time
    until six years after the closing of the Senior Credit Facilities. The
    Term Loan may be repaid at any time but is subject to certain call
    protections and must be repaid in full eight years after the closing of
    the Senior Credit Facilities.

    The Revolving Credit Facility is secured by a first-priority perfected
    lien, and the Term Loan is secured by a second-priority perfected lien, on
    all partnership interests of the Company and all property and assets
    (tangible and intangible) of the Company and each of its material
    subsidiaries, including, without limitation, all intercompany
    indebtedness, and all capital stock (or similar equity interests owned by
    the Company) of

                                       8
<PAGE>

                           ANTHONY CRANE RENTAL, L.P.

       NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

                                 (In thousands)

4. Long-Term Debt (continued)

   each of the Company's direct and indirect material subsidiaries, whenever
   acquired and wherever located; provided, however, that no more than 65% of
   the capital stock or similar equity interests of non-U.S. subsidiaries, if
   any, will be required to be pledged as security in the event that a pledge
   of a greater percentage would result in increased tax or similar liabilities
   for the Company and its subsidiaries on a consolidated basis or would
   violate applicable law.

   The Senior Credit Facilities provide for mandatory repayments, subject to
   certain exceptions, of the Revolving Credit Facility and the Term Loan based
   on certain net asset sales outside the ordinary course of business of the
   Company and its subsidiaries and the net proceeds of certain debt and equity
   issuances. Outstanding loans under the Revolving Credit Facility and the
   Term Loan (subject to certain call provisions) are voluntarily pre-payable
   without penalty; provided, however, that LIBO breakage costs, if any, shall
   be borne by the Company. The Senior Credit Facilities contain certain
   restrictive covenants, the most restrictive of which include financial
   ratios.

   The obligations of the Company under the Senior Notes and Senior Credit
   Facilities are guaranteed on a full, unconditional joint and several basis,
   by all material existing, direct and indirect domestic subsidiaries of the
   Company and will be guaranteed by all material future, direct and indirect
   domestic and foreign subsidiaries of the Company.

   The aggregate principal debt maturities of long-term debt for the next five
   years are as follows:

<TABLE>
   <S>                                                                  <C>
   1999................................................................       --
   2000................................................................       --
   2001................................................................       --
   2002................................................................       --
   2003................................................................       --
   Thereafter.......................................................... $437,000
                                                                        ========
</TABLE>

5. Business Acquisitions

   On June 4, 1999, the Company acquired substantially all of the assets and
assumed certain liabilities and obligations of Dunn Equipment, Inc., Texas Matt
& Rigging, Inc., J. Dunn and J. Dunn, Inc., Houston Industrial Services, Inc.,
and D & D Leasing, Inc. (collectively, the "Dunn Companies").

   For financial statement purposes, the acquisition was accounted for as a
purchase and, accordingly, the Dunn Companies results are included in the
condensed consolidated financial statements since the date of acquisition. The
purchase price of approximately $30.6 million in cash, which was financed
through borrowings under the Company's Senior Credit Facilities, has been
allocated to the Dunn Companies' assets and liabilities based upon their
respective fair market values. The excess of the purchase price over the fair
value of assets acquired (Goodwill) approximated $.6 million and is being
amortized over 10 years.

   The unaudited pro forma combined historical results, as if the Dunn
Companies had been acquired at the beginning of the six months ended June 30,
1999 and 1998, respectively, are estimated to be:

<TABLE>
<CAPTION>
                                                               Pro Forma
                                                           Six Months Ended
                                                        ------------------------
                                                         June 30,     June 30,
                                                           1999         1998
                                                        -----------  -----------
                                                        (Dollars in thousands)
<S>                                                     <C>          <C>
Total revenues......................................... $   120,134  $   109,409
Net (loss) income...................................... $    (2,046) $     9,946
</TABLE>


                                       9
<PAGE>

                          ANTHONY CRANE RENTAL, L.P.

       NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

                                (In thousands)

5. Business Acquisitions (continued)

   The pro forma consolidated results are not necessarily indicative of
results that would have occurred had the acquisition been in effect for the
periods presented, nor are they necessarily indicative of future consolidated
results.

   On March 31, 1999, the Company acquired all of the outstanding common stock
of Husky Crane, Inc. (Husky Crane) and certain assets of Paradise Equipment
Company, L.P., a limited partnership in which the 100% stockholder of Husky
Crane is the majority partner, as well as certain other assets owned
personally by this stockholder. The purchase price for the acquisition at
closing was approximately $8.5 million in cash with an additional payment of
$.5 million payable to the seller contingent upon the satisfaction of certain
defined criteria. Management believes that it is probable that the seller will
satisfy the defined criteria and accordingly, the Company has included the $.5
million payable to seller as part of the purchase price.

   The acquisition was accounted for under the purchase method of accounting
and, accordingly, the purchase price has been allocated to the assets
acquired, principally consisting of equipment, based on their estimated fair
values at the date of acquisition. Goodwill in the amount of $1.3 million was
recorded as a result of the acquisition and is being amortized over five
years.

   The operating results of the Husky Crane acquisition are included in the
condensed consolidated financial statements since the date of acquisition.
Certain required pro forma financial information related to the Husky Crane
acquisition has not been presented since the acquisition was not material to
the Partnership's condensed consolidated financial position or its
consolidated results of operations.

6. Lease Commitments

   In April 1997, the Partnership entered into a capital lease agreement for
the lease of twenty trucks. The lease has a term of three years with a bargain
purchase option at the end of the lease agreement. Interest rates under the
capital lease agreement range from approximately 19% to 22%.

   In connection with the acquisitions discussed in Note 5, the Partnership
assumed obligations related to six capital leases. Management intends to
payoff these obligations and, accordingly, has recorded these obligations as
current liabilities.

   The following is a schedule of future minimum lease payments under the
capital lease agreements together with the present value of the net minimum
lease payments as of June 30, 1999:

<TABLE>
<S>                                                                      <C>
Year ending December 31:
1999.................................................................... $4,940
2000....................................................................    806
                                                                         ------
Total minimum lease payments............................................  5,746
Less amount representing interest.......................................    138
                                                                         ------
Present value of minimum lease payments.................................  5,608
Less current portion....................................................  4,858
                                                                         ------
                                                                         $  750
                                                                         ======
</TABLE>

   Included in rental equipment is cost and accumulated depreciation for these
leased assets of approximately $6,165 and $376, respectively, at June 30, 1999
and $1,035 and $215, respectively, at December 31, 1998.


                                      10
<PAGE>

                          ANTHONY CRANE RENTAL, L.P.

       NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

                                (In thousands)

7. Contingencies

   The Company is the defendant in a lawsuit by its former insurance carrier
who has asserted a claim for premiums allegedly due on a contract of insurance
in the amount of approximately $455. The Company has denied any liability and
intends to vigorously defend the claim.

   Additionally, the Company is the defendant in a lawsuit asserting breach of
contract and tort claims arising out of allegations the Company did not timely
deliver certain used equipment that the customer contracted to buy from the
Company. The Company has denied any liability and intends to vigorously defend
the claims.

   The Company is also the defendant in a lawsuit resulting from negotiations
in connection with a proposed acquisition in which the potential seller is
seeking contractual damages in the amount of $3 million plus other
consequential damages that may be proved at trial for breach of contract and
the confidentiality provisions in a letter of intent executed between the
parties. The Company has denied any liability and intends to vigorously defend
the claims.

   The Company is a party to a number of other lawsuits and claims arising out
of the usual course of business.

   While the Company cannot predict the outcome of these matters, in the
opinion of management upon advice of counsel, any liability resulting
thereunder will not have a material adverse effect on the Company's business
or financial condition, after giving effect to provisions already recorded.
However, there can be no assurance that an adverse outcome in one or more of
these matters will not be material to results of operations in any one period.
Additionally, certain of these matters are covered by the indemnity from the
Predecessor Partners.

   During the second quarter of 1999, the Company received a revised
assessment from a local taxing authority resulting from a local sales and use
tax audit. The initial assessment of $8.6 million, including interest and
penalties of $1.9 million and $1.3 million, respectively, has been reduced to
$2.4 million, including interest and penalties of $.6 million and $.4 million,
respectively. Although the Company intends to appeal the assessment, a
liability was recorded at December 31, 1998 and June 30, 1999 for
approximately $3.2 million for such tax liabilities.

8. Subsidiary Guarantors

   All of the Company's subsidiaries are wholly owned and all of the
outstanding debt under the Company's Senior Notes and Senior Credit Facilities
are guaranteed on a full, unconditional and joint and several basis by all of
these subsidiaries (the "Guarantor Subsidiaries"). The following summarized
financial information presents the financial position for the Company and
Guarantor Subsidiaries as of June 30, 1999 and December 31, 1998, the results
of operations for the three and six month periods ended June 30, 1999 and
1998, and cash flows for the six-month periods ended June 30, 1999 and 1998.
Separate financial statements of the Guarantor Subsidiaries have not been
presented because management believes they are not material to investors.

                                      11
<PAGE>

                           ANTHONY CRANE RENTAL, L.P.

       NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

                                 (In thousands)


8. Subsidiary Guarantors (continued)

   The following table summarizes the financial position for the Company and
its guarantor subsidiaries as of June 30, 1999 and December 31, 1998:

<TABLE>
<CAPTION>
                                                June 30, 1999
                              -------------------------------------------------
                              Operating  Guarantor   Intercompany
                               Company  Subsidiaries  Eliminations Consolidated
BALANCE SHEETS                --------- ------------ ------------- ------------
                                                 (Unaudited)
<S>                           <C>       <C>          <C>           <C>
Assets:
Total current assets........  $ 50,299    $ 1,427      $ (2,405)     $ 49,321
Investment in subsidiaries..    10,859         --       (10,859)           --
Rental equipment, net of
 accumulated depreciation...   357,913      9,970            --       367,883
Property and equipment, net
 of accumulated
 depreciation...............    56,848      1,910            --        58,758
Other assets, net...........    21,835         93            --        21,928
                              --------    -------      --------      --------
  Total assets..............  $497,754    $13,400      $(13,264)     $497,890
                              ========    =======      ========      ========
Liabilities and partners'
 capital:
Total current liabilities...  $ 53,781    $ 2,541      $ (2,405)     $ 53,917
Long term debt, less current
 portion....................   437,000         --            --       437,000
Other non-current
 liabilities................     3,035         --            --         3,035
                              --------    -------      --------      --------
  Total liabilities.........   493,816      2,541        (2,405)      493,952
Partners' capital...........     3,938     10,859       (10,859)        3,938
                              --------    -------      --------      --------
  Total liabilities and
   partners' capital........  $497,754    $13,400      $(13,264)     $497,890
                              ========    =======      ========      ========
<CAPTION>
                                              December 31, 1998
                              -------------------------------------------------
<S>                           <C>       <C>          <C>           <C>
Assets:
Total current assets........  $ 38,480    $ 1,861      $ (3,360)     $ 36,981
Investment in subsidiaries..     9,052         --        (9,052)           --
Rental equipment, net of
 accumulated depreciation...   272,309     10,370            --       282,679
Property and equipment, net
 of accumulated
 depreciation...............    48,704      1,664            --        50,368
Other assets, net...........    20,516        116            --        20,632
                              --------    -------      --------      --------
  Total assets..............  $389,061    $14,011      $(12,412)     $390,660
                              ========    =======      ========      ========
Liabilities and partners'
 capital:
Total current liabilities...  $ 25,381    $ 4,959      $ (3,360)     $ 26,980
Long term debt, less current
 portion....................   353,000         --            --       353,000
Other non-current
 liabilities................     2,456         --            --         2,456
                              --------    -------      --------      --------
  Total liabilities.........   380,837      4,959        (3,360)      382,436
Partners' capital...........     8,224      9,052        (9,052)        8,224
                              --------    -------      --------      --------
  Total liabilities and
   partners' capital........  $389,061    $14,011      $(12,412)     $390,660
                              ========    =======      ========      ========
</TABLE>


                                       12
<PAGE>

                          ANTHONY CRANE RENTAL, L.P.

       NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

                                (In thousands)

8. Subsidiary Guarantors (continued)

   The following table summarizes the results of operations for the Company
and its guarantor subsidiaries for the three months and six months ended June
30, 1999 and 1998.

<TABLE>
<CAPTION>
                                     Three Months Ended June 30, 1999
                            ---------------------------------------------------
                            Operating    Guarantor   Intercompany
                             Company   Subsidiaries  Eliminations  Consolidated
STATEMENTS OF OPERATIONS    ---------  ------------- ------------- ------------
                                               (Unaudited)
<S>                         <C>        <C>           <C>           <C>
Total revenues............  $ 58,797      $2,576         $ --        $ 61,373
                            --------      ------         ----        --------
Total cost of revenues....    39,552       1,289           --          40,841
Selling, general and
 administrative...........    11,400         239           --          11,639
                            --------      ------         ----        --------
Income from operations....     7,845       1,048           --           8,893
Interest expense and other
 (income) expense, net....     9,153         302           --           9,455
                            --------      ------         ----        --------
Income (loss) before
 taxes....................    (1,308)        746           --            (562)
Provision for state
 taxes....................        --          --           --              --
                            --------      ------         ----        --------
Net income (loss).........  $ (1,308)     $  746         $ --        $   (562)
                            ========      ======         ====        ========

<CAPTION>
                                     Three Months Ended June 30, 1998
                            ---------------------------------------------------
                                               (Unaudited)
<S>                         <C>        <C>           <C>           <C>
Total revenues............  $ 48,399      $2,687         $ --        $ 51,086
                            --------      ------         ----        --------
Total cost of revenues....    29,498       1,317           --          30,815
Selling, general and
 administrative...........     9,443         455           --           9,898
                            --------      ------         ----        --------
Income from operations....     9,458         915           --          10,373
Interest expense and other
 (income) expense, net....     4,446         162           --           4,608
                            --------      ------         ----        --------
Income before taxes.......     5,012         753           --           5,765
Provision for state
 taxes....................        --          --           --              --
                            --------      ------         ----        --------
Net income................  $  5,012      $  753         $ --        $  5,765
                            ========      ======         ====        ========

<CAPTION>
                                      Six Months Ended June 30, 1999
                            ---------------------------------------------------
                                               (Unaudited)
<S>                         <C>        <C>           <C>           <C>
Total revenues............  $104,734      $5,540         $ --        $110,274
                            --------      ------         ----        --------
Total cost of revenues....    69,670       2,671           --          72,341
Selling, general and
 administrative...........    20,831         438           --          21,269
                            --------      ------         ----        --------
Income from operations....    14,233       2,431           --          16,664
Interest expense and other
 (income) expense, net....    17,644         642           --          18,286
                            --------      ------         ----        --------
Income (loss) before
 taxes....................    (3,411)      1,789           --          (1,622)
Provision for state
 taxes....................       101          --           --             101
                            --------      ------         ----        --------
Net income (loss).........  $ (3,512)     $1,789         $ --        $ (1,723)
                            ========      ======         ====        ========
<CAPTION>
                                      Six Months Ended June 30, 1998
                            ---------------------------------------------------
                                               (Unaudited)
<S>                         <C>        <C>           <C>           <C>
Total revenues............  $ 94,161      $5,388         $ --        $ 99,549
                            --------      ------         ----        --------
Total cost of revenues....    59,239       2,488           --          61,727
Selling, general and
 administrative...........    18,465         878           --          19,343
                            --------      ------         ----        --------
Income from operations....    16,457       2,022           --          18,479
Interest expense and other
 (income) expense, net....     7,837         313           --           8,150
                            --------      ------         ----        --------
Income before taxes.......     8,620       1,709           --          10,329
Provision for state
 taxes....................        60          --           --              60
                            --------      ------         ----        --------
Net income................  $  8,560      $1,709         $ --        $ 10,269
                            ========      ======         ====        ========
</TABLE>



                                      13
<PAGE>

                          ANTHONY CRANE RENTAL, L.P.

       NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

                                (In thousands)

8. Subsidiary Guarantors (continued)

   The following table summarizes the cash flows for the Company and its
guarantor subsidiaries for the six months ended June 30, 1999 and 1998.

<TABLE>
<CAPTION>
                                                           Six Months Ended June 30, 1999
                                                  -------------------------------------------------
                                                  Operating   Guarantor   Intercompany
                                                   Company   Subsidiaries Eliminations Consolidated
STATEMENTS OF CASH FLOWS                          ---------  ------------ ------------ ------------
                                                                    (Unaudited)
<S>                                               <C>        <C>          <C>          <C>
Net cash (used in) provided by operating
 activities.....................................  $   (107)    $ 1,214        $ --       $  1,107
                                                  --------     -------        ----       --------
Net cash used in investing activities...........  $(80,863)    $(1,094)       $ --       $(81,957)
                                                  --------     -------        ----       --------
Net cash provided by financing activities.......  $ 82,653     $    --        $ --       $ 82,653
                                                  --------     -------        ----       --------
<CAPTION>
                                                           Six Months Ended June 30, 1998
                                                  -------------------------------------------------
                                                                    (Unaudited)
<S>                                               <C>        <C>          <C>          <C>
Net cash provided by operating activities.......  $ 14,907     $   163        $ --       $ 15,070
                                                  --------     -------        ----       --------
Net cash used in investing activities...........  $(31,141)    $  (187)       $ --       $(31,328)
                                                  --------     -------        ----       --------
Net cash provided by financing activities.......  $ 14,100     $    --        $ --       $ 14,100
                                                  --------     -------        ----       --------
</TABLE>

9. Subsequent Events

 Amendment of the Senior Credit Facility

   On July 1, 1999, the Company entered into an amendment to its Senior Credit
Facilities providing for an increase of $150 million to its existing Revolving
Credit Facility and the issuance of $250 million of Term B loans.

 Business Acquisition

   On July 1, 1999, the Company acquired substantially all of the assets and
assumed substantially all of the liabilities and obligations of Carlisle
Construction Co., Inc., and its subsidiaries (Carlisle).

   For financial statement purposes, the acquisition will be accounted for as
a purchase and, accordingly, Carlisle's results will be included in the
consolidated financial statements from the date of acquisition. The aggregate
purchase price of $177.5 million was financed through the issuance of $20
million of Class B Preferred Units of Holdings and additional cash borrowings
under the Company's Senior Credit Facilities.

   The unaudited pro forma combined historical results, as if Carlisle
(together with the Dunn Companies) had been acquired at the beginning of the
six months ended June 30, 1999 and 1998, respectively, are estimated to be:

<TABLE>
<CAPTION>
                                                                Pro Forma
                                                            Six Months Ended
                                                         -----------------------
                                                          June 30,    June 30,
                                                            1999        1998
                                                         ----------- -----------
                                                         (Dollars in thousands)
<S>                                                      <C>         <C>
Total revenues.......................................... $   168,945 $   148,819
Net income.............................................. $     1,552 $     6,039
</TABLE>

   The pro forma consolidated results are not necessarily indicative of
results that would have occurred had the acquisition been in effect for the
periods presented, nor are they necessarily indicative of the future
consolidated results.

                                      14
<PAGE>

ITEM 2.

          MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                           AND RESULTS OF OPERATIONS

Results of Operations

 Three Months Ended June 30, 1999 Compared to the Three Months Ended June 30,
 1998

   Equipment Rental Revenues: Revenues from equipment rentals increased $6.9
million, or 14.8%, to $53.5 million for the three months ended June 30, 1999
as compared to $46.6 million for the same period in the prior year. This
increase was largely due to the continued growth of the Company's existing
yards, reflecting the impact of the equipment purchased in 1998 and early
1999, and the continued growth in the operations in California. Additionally,
the increase was due to the revenues generated by the Husky and Dunn Companies
acquisitions, which amounted to approximately $2.0 million for the three
months ended June 30, 1999. Management noted that revenues from equipment
rentals continue to be adversely affected, especially in the Company's central
region, by market dynamics which continue to affect the maintenance activities
of its petrochemical customers.

   Equipment Sales: Revenues from equipment sales increased $3.4 million, or
75.6%, to $7.9 million for the three months ended June 30, 1999 as compared to
$4.5 million for the same period in the prior year. This increase was
primarily attributable to significantly higher levels of activity in the
Company's fleet management program through upgrading the fleet and selling
older and under-utilized cranes. Management expects to see a continued
increase in equipment sales throughout the remainder of the year.

   Total Revenues: Based on the foregoing, total revenues increased $10.3
million, or 20.2%, to $61.4 million for the three months ended June 30, 1999
as compared to $51.1 million for the same period in the prior year.

   Gross Profit: Gross profit from equipment rentals remained relatively
consistent, increasing $.4 million, or 2.1%, to $19.7 million for the three
months ended June 30, 1999 as compared to $19.3 million for the same period in
the prior year. As a percent of equipment rental revenues, gross profit from
equipment rentals decreased to 36.9% for the three months ended June 30, 1999
as compared to 41.5% for the same period in the prior year. This decrease in
gross profit margin is primarily attributable to increased depreciation on
rental equipment, which amounted to $6.8 million for the three months ended
June 30, 1999 as compared to $4.8 million for the same period in the prior
year. Additionally, the decrease is due to increased salaries and wages and
employee benefit costs associated with the acquired companies, the growth in
the California yards, and additional costs incurred to support the Company's
yard expansions and expected future growth. Gross profit margin from equipment
rentals also continues to be negatively impacted by the delay of the
industrial maintenance activities discussed above.

   Gross profit from equipment sales decreased to $.8 million for the three
months ended June 30, 1999 as compared to $.9 million for the same period in
the prior year. As a percent of equipment sales revenues, gross profit
decreased to 10.0% for the three months ended June 30, 1999 as compared to
20.4% for the same period in the prior year. The decrease in the gross margin
percentage was due to the sale of certain used equipment during the three
months ended June 30, 1998, which generated unusually large margins. Equipment
sales in the three months ended June 30, 1999 generated more normal margin
percentages.

   Based on the foregoing, total gross profit remained relatively constant,
increasing from $20.3 million for the three months ended June 30, 1998 to
$20.5 million for the three months ended June 30, 1999.

   Selling, General and Administrative Expenses: Selling, general and
administrative expenses increased $1.7 million, or 17.2%, to $11.6 million for
the three months ended June 30, 1999 compared to $9.9 million for the same
period in the prior year. As a percent of total revenues, selling, general and
administrative expenses remained relatively consistent, equaling 19.0% for the
three months ended June 30, 1999 as compared to 19.4%

                                      15
<PAGE>

for the same period in the prior year. The increase in selling, general and
administrative expenses is primarily the result of increased travel costs,
training activities, costs associated with the Husky and Dunn Companies
acquisitions and an increase in administrative and consulting fees resulting
from the Company's recapitalization in July 1998 and the associated new
reporting requirements. Finally, depreciation and amortization costs increased
as a result of the new properties and intangible assets acquired. Depreciation
and amortization totaled approximately $1.8 million for the three months ended
June 30, 1999 as compared to $1.6 million for the same period in the prior
year.

   Earnings Before Interest, Taxes, Depreciation and Amortization: EBITDA (as
defined to exclude net gains on sales of used equipment) increased $.9
million, or 5.6%, to $17.1 million for the three months ended June 30, 1999,
compared to $16.2 million for the same period in the prior year. EBITDA from
equipment rentals (as defined to equal revenues from equipment rentals, less
cost of equipment rentals, less selling, general and administrative expenses,
plus depreciation and amortization) increased $.9 million, or 5.7%, to $16.7
million for the three months ended June 30, 1999 compared to $15.8 million for
the same period in the prior year. As a percent of rental revenues, EBITDA
from rental operations decreased to 31.2% for the three months ended June 30,
1999 compared to 33.9% for the same period in the prior year. This decrease is
due to the factors discussed above.

   Interest Expense: Interest expense increased $5.2 million, or 118.2%, to
$9.6 million for the three months ended June 30, 1999 compared to $4.4 million
for the same period in the prior year. This increase reflected the higher
level of borrowings outstanding attributable to the Company's recapitalization
transaction consummated in July 1998, acquisitions and the Company's continued
investment in rental equipment.

   Other (Income) Expense: Other (income) expense increased to $(.2) million
or 200.0% from $.2 million for the three months ended June 30, 1998. This
increase is primarily attributable to the sale of property and other asset
dispositions (excluding used fleet equipment) in the three months ended March
31, 1998, which generated a loss of approximately $.2 million. Disposals of
property and other assets (excluding used fleet equipment) during the three
months ended June 30, 1999 did not result in a similar loss.

   Net (Loss) Income: Net Income decreased $6.3 million, or 108.6%, to a net
loss of $.6 million for the three months ended June 30, 1999 compared to net
income of $5.8 million for the same period in the prior year as a result of
the factors discussed above.

 Six Months Ended June 30, 1999 Compared to the Six Months Ended June 30, 1998

   Equipment Rental Revenues: Revenues from equipment rentals increased $9.6
million, or 10.6%, to $99.8 million for the six months ended June 30, 1999 as
compared to $90.2 million for the same period in the prior year. This increase
was largely due to the continued growth of the Company's existing yards,
reflecting the impact of the equipment purchased in 1998 and early 1999, and
the continued growth of the operations in California. Additionally, the
increase was due to the revenues generated by the Husky and Dunn Companies
acquisitions, which amounted to approximately $2.0 million for the six months
ended June 30, 1999. Management noted that revenues from equipment rentals
continue to be adversely affected, especially in the Company's central region,
by market dynamics which continue to affect the maintenance activities of its
petrochemical customers.

   Equipment Sales: Revenues from equipment sales increased $1.1 million, or
11.7%, to $10.5 million for the six months ended June 30, 1999 as compared to
$9.4 million for the same period in the prior year. This increase was
primarily attributable to significantly higher levels of activity in the
Company's fleet management program through upgrading the fleet and selling
older and under-utilized cranes. Management expects to see a continued
increase in equipment sales throughout the remainder of the year.

   Total Revenues: Based on the foregoing, total revenues increased $10.8
million, or 10.9%, to $110.3 million for the six months ended June 30, 1999 as
compared to $99.5 million for the same period in the prior year.

                                      16
<PAGE>

   Gross Profit: Gross profit from equipment rentals remained relatively
consistent, increasing $.2 million, or.6%, to $36.3 million for the six months
ended June 30, 1999 as compared to $36.1 million for the same period in the
prior year. As a percent of equipment rental revenues, gross profit from
equipment rentals decreased to 36.3% for the six months ended June 30, 1999 as
compared to 40.0% for the same period in the prior year. This decrease in
gross profit margin is primarily attributable to increased depreciation on
rental equipment, which amounted to $12.6 million for the six months ended
June 30, 1999 as compared to $9.4 million for the same period in the prior
year. Additionally, the decrease is due to the increased salaries and wages
and employee benefit costs associated with the acquired companies and the
growth in the California yards, and additional costs incurred to support the
Company's yard expansions and expected future growth. Also, gross profit
margin from equipment rentals continues to be negatively impacted by the delay
of the industrial maintenance activities discussed above.

   Gross profit from equipment sales decreased to $1.6 million for the six
months ended June 30, 1999 as compared to $1.7 million for the same period in
the prior year. As a percent of equipment sales revenues, gross profit
decreased to 15.2% for the six months ended June 30, 1999 as compared to 18.1%
for the same period in the prior year. The decrease in the gross margin
percentage was due to the sale of certain used equipment during the six months
ended June 30, 1998, which generated unusually large margins. Equipment sales
in the six months ended June 30, 1999 generated more normal margin
percentages.

   Based on the foregoing, total gross profit remained relatively constant,
increasing from $37.8 million for the six months ended June 30, 1998 compared
to $37.9 million for the six months ended June 30, 1999.

   Selling, General and Administrative Expenses: Selling, general and
administrative expenses increased $1.9 million, or 9.8%, to $21.3 million for
the six months ended June 30, 1999 compared to $19.3 million for the same
period in the prior year. As a percent of total revenues, selling, general and
administrative expenses remained relatively consistent; at 19.3% for the six
months ended June 30, 1999 as compared to 19.4% for the same period in the
prior year. The increase in selling, general and administrative expenses is
primarily the result of increased travel costs, training activities, costs
associated with the Husky and Dunn Companies acquisitions and an increase in
administrative and consulting fees resulting from the Company's
recapitalization in July 1998 and the associated new reporting requirements.
Finally, depreciation and amortization costs increased as a result of the new
properties and intangible assets acquired. Depreciation and amortization
totaled approximately $3.4 million for the six months ended June 30, 1999 as
compared to $3.2 million for the same period in the prior year.

   Earnings Before Interest, Taxes, Depreciation and Amortization: EBITDA (as
defined to exclude net gains on sales of used equipment) increased $1.4
million, or 4.6%, to $31.6 million for the six months ended June 30, 1999
compared to $30.2 million for the same period in the prior year. EBITDA from
equipment rentals (as defined to equal revenues from equipment rentals, less
cost of equipment rentals, less selling, general and administrative expenses,
plus depreciation and amortization) increased $1.7 million, or 5.8%, to $31.1
million for the six months ended June 30, 1999 compared to $29.4 million for
the same period in the prior year. As a percent of rental revenues, EBITDA
from rental operations decreased to 31.2% for the six months ended June 30,
1999 compared to 32.6% for the same period in the prior year. This decrease is
due to the factors discussed above.

   Interest Expense: Interest expense increased $9.9 million, or 115.1%, to
$18.5 million for the six months ended June 30, 1999 compared to $8.6 million
for the same period in the prior year. This increase reflected the higher
level of borrowings outstanding attributable to the Company's recapitalization
transaction consummated in July 1998, acquisitions and the Company's continued
investment in rental equipment.

   Other (Income) Expense: Other (income) expense decreased to $(.2) million,
or 40.0%, from $(.5) million for the six months ended June 30, 1998.

                                      17
<PAGE>

   Net (Loss) Income: Net income decreased $12.0 million, or 116.5%, to a net
loss of $1.7 million for the six months ended June 30, 1999, compared to net
income of $10.3 million for the same period in the prior year as a result of
the factors discussed above.

Liquidity and Capital Resources

   Net cash provided by operating activities for the six months ended June 30,
1999 decreased from $15.1 million for the six months ended June 30, 1998, to
$1.1 million for the six months ended June 30, 1999. This decrease was
primarily the result of a decrease in net income.

   During the six months ended June 30, 1999 and 1998, the Company's principal
uses of cash for investing activities were for capital expenditures, including
expenditures for rental equipment, as well as for the Husky Crane and Dunn
Companies acquisitions in 1999. Total capital expenditures were $51.7 million
and $42.5 million, respectively. Included in these totals were expenditures
for rental equipment totaling $48.4 million and $35.1 million, respectively.
These expenditures were made to increase the Company's total investment in the
rental fleet and to replace sold used rental equipment. Cash expenditures for
the Husky Crane and Dunn Companies acquisitions totaled $38.1 million in 1999.

   Net cash provided by financing activities during the six months ended June
30, 1999 was $82.7 million, an increase of 486.5%, compared to $14.1 million
for the six months ended June 30, 1998. The increase in net cash provided by
financing activities was due to an increase in net borrowings to fund the
Husky Crane and Dunn Companies acquisitions, as well as the capital
expenditures discussed above.

   The Company has no long-term minimum purchase commitments for rental
equipment. Management has budgeted $85 million for gross fleet capital
expenditures for 1999; exclusive of acquisitions to be used to replace rental
equipment sold as well as increases to the total investment in the fleet.
These expenditures will be offset by expected proceeds from the sale of used
equipment of approximately $25 million. The Company also expects to spend
approximately $8 million in 1999 on non-rental related capital expenditures
consisting of buildings, land, furniture & fixtures and machinery and tools.
In addition to the budgeted capital expenditures, the Company is currently
considering several potential acquisitions.

   In connection with the Company's recapitalization, the Company and Holdings
incurred significant amounts of debt with interest and principal payments on
Discount Debentures, the Senior Notes and under the Senior Credit Facilities
representing significant obligations of the Company and Holdings. Holdings'
operations are conducted through its subsidiaries and Holdings is, therefore,
dependent upon the cash flow of its subsidiaries, including the Company, to
meet its debt service obligations. The Company's liquidity needs relate to
working capital, debt service, capital expenditures and potential
acquisitions.

   The Company intends to fund its working capital, capital expenditures and
debt service requirements through cash flows generated from operations and
borrowings under the Senior Credit Facilities. The Senior Credit Facilities
consist of a $275.0 million, non-amortizing revolving Credit Facility of which
a net amount of $232.0 million was drawn at June 30, 1999, and a $50.0 million
non-amortizing Term Loan (prior to the amendment described below under Current
Developments). Amounts under the Revolving Credit Facility are available on a
revolving basis for the period commencing on July 22, 1998 (the date of the
closing) and ending on the sixth anniversary of the closing.

   The Senior Credit Facilities, the Senior Notes and the Discount Debentures
contain certain covenants that limit, among other things, the ability of the
Company and Holdings to: (i) make distributions, redeem partnership interests
or make certain other restricted payments or investments other than
distributions to pay taxes; (ii) incur additional indebtedness or issue
preferred equity interests; (iii) merge, consolidate or sell all or
substantially all of its assets; (iv) create liens on assets; and (v) enter
into certain transactions with affiliates or related persons. In addition, the
Senior Credit Facilities require the Company to maintain specific financial
ratios and tests, among other obligations, including a minimum interest
coverage ratio. At June 30, 1999, the Company and Holdings

                                      18
<PAGE>

were in full compliance with the financial covenants and expects to remain in
compliance for the foreseeable future, including with respect to the minimum
interest coverage ratio.

Current Developments

   On June 4, 1999, the Company acquired substantially all of the assets and
assumed certain liabilities and obligations relating to the operations of the
businesses of Dunn Equipment, Inc., Texas Matt & Rigging, Inc., J. Dunn and J.
Dunn, Inc., Houston Industrial Services, Inc., and D & D Leasing Inc.
(collectively, the "Dunn Companies"). The purchase price for the acquisition
at closing was approximately $30.6 million in cash. The Company used
borrowings under its Revolving Credit Agreement to fund the transaction. The
Dunn Companies operated five rental yards in Texas.

   On July 1, 1999 the Company entered into an amendment to its Senior Credit
Facilities providing for an increase of $150 million to its existing Revolving
Credit Facility and the issuance of $250 million of Term B loans. In
conjunction with this amendment to the Senior Credit Facilities, the Company
acquired substantially all of the assets and assumed substantially all of the
liabilities and obligations of Carlisle Construction Co. Inc., and its
subsidiaries on July 1, 1999. The aggregate purchase price of the acquisition
was $177.5 million financed through the issuance of $20 million of Class B
Preferred Units of Holdings and borrowings under the Company's Amended Senior
Credit Facilities.

Impact of Year 2000 Issue

   The Year 2000 Issue is the result of computer programs being written using
two digits rather than four to define the applicable year. Any of the
Company's computer programs or hardware that have date sensitive software or
embedded chips may recognize a date using "00" as the year 1900 rather than
the year 2000. This could result in a system failure or miscalculations
causing disruptions of operations, including, among other things, a temporary
inability to process transactions, send invoices or engage in similar normal
business activities.

   Based on prior assessments, the Company determined that its information
technology systems required modification or replacement of portions of
hardware and software so that those systems would properly utilize dates
beyond December 31, 1999. The Company utilized both internal and external
resources to reprogram, or replace, test and implement the software and
hardware for Year 2000 modifications. The total cost of the Year 2000 project,
which was completed in 1998, was approximately $650,000 and was funded through
operating cash flows. The majority of the costs incurred were capitalized.
With the completion of the Year 2000 project, management now believes that its
internal information technology systems are Year 2000 compliant.

   The Company is also evaluating the Year 2000 compliance programs of its
critical customers, suppliers and service providers in an attempt to determine
the adequacy of their programs in addressing the Year 2000 issue. A failure by
a critical supplier or group of critical customers could negatively impact
sales, profits and cash flows. The Company believes that the formulation of
contingency plans will help mitigate exposure and losses should such a failure
occur. Such risks are further mitigated by the Company's diverse customer
base. However, because the Company's overall Year 2000 compliance is
contingent upon the readiness of its critical vendors and customers, there can
be no assurance that the Company's Year 2000 compliance programs will
adequately address Year 2000 issues not under its direct control.

Forward Looking Statements

   This report may contain forward-looking statements that are based on
current expectations, estimates and projections about the industries in which
the Company operates, management's beliefs and assumptions made by management.
Words such as "expects", "anticipates", "intends", "plans", "believes",
"estimates" and variations of such words and similar expressions are intended
to identify such forward-looking statements. These statements constitute
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of

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<PAGE>

1933, and are subject to the safe harbor created thereby. These statements are
based on a number of assumptions that could ultimately prove inaccurate and,
therefore, there can be no assurance that such statements will prove to be
accurate. Factors which could affect actual future results include
developments relating to claims resulting from investigations or lawsuits.
Such factors also include the possibility that increased demand or prices for
the Company's services may not occur or continue, changing economic and
competitive conditions, technological risks and other risks, changing
governmental regulations (including environmental rules and regulations) and
other risks and uncertainties, including those detailed in the Company's
filings with the Securities and Exchange Commission. The Company does not
undertake to publicly update any forward-looking statement, whether as a
result of new information, future events or otherwise.

                                    PART II

ITEM 1. LEGAL PROCEEDINGS

   The Company is a party to a number of lawsuits and claims arising out of
the usual course of business.

   During the second quarter of 1999, the Company received a revised
assessment from a local taxing authority resulting from a local sales and use
tax audit. The initial assessment of $8.6 million, including interest and
penalties of $1.9 million and $1.3 million, respectively, has been reduced to
$2.4 million, including interest and penalties of $.6 million and $.4 million,
respectively. Although the Company intends to appeal the assessment, a
liability was recorded at December 31, 1998 and June 30, 1999 for
approximately $3.2 million for such tax liabilities.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

A. Index to Exhibits

   Not applicable

B. Reports on Form 8-K

   On June 18, 1999, the Partnership filed a Current Report Form 8-K, dated
June 4, 1999, pursuant to ITEM 2 to report it acquired substantially all of
the assets and assumed certain liabilities and obligations relating to the
operations of the businesses of Dunn Equipment, Inc., Texas Matt & Rigging,
Inc., J. Dunn and J. Dunn, Inc., Houston Industrial Services, Inc., and D & D
Leasing Inc. (collectively, the "Dunn Companies").

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<PAGE>

                                  SIGNATURES

   Pursuant to the requirements of Section 13 or 15 (d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this Report on Form 10-Q
to be signed on its behalf by the undersigned, thereunto duly authorized, in
the Borough of West Mifflin, Commonwealth of Pennsylvania, on August 13, 1999.

                                          Anthony Crane Rental, L.P.

                                               /s/ David W. Mahokey
                                          By:  ________________________________
                                             David W. Mahokey
                                             Chief Operating Officer

   Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed by the following person in the capacity indicated on
August 13, 1999.

                                             /s/ Dale A. Buckwalter
                                             ----------------------------------
                                             Dale A. Buckwalter
                                             Chief Financial Officer
                                             (principal financial and
                                             accounting officer)

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