Narrow addressable market in the insurance broker management software (BMS) industry Small revenue and EBITDA base High level of recurring revenues, strong pricing power, and limited customer concentration Leading provider of third-party insurance BMS products and services Forecasted leverage in the mid-7x area in fiscal 2017 (financial sponsor ownership limits sustained deleveraging) Free operating cash flow (FOCF) of $87 million and FOCF to debt at 7.4% over the next 12 months Adequate liquidity No near-term maturities The stable outlook on University Park, Ill.-based Applied Systems Inc. reflects S&P Global Ratings' expectation that the company will maintain its good market position in the insurance broker management software industry. Additionally, we forecast that the company will continue to generate predictable cash flow,
