Narrow addressable market in the insurance broker management systems (BMS) software industry Modest scale High level of recurring revenues, strong pricing power, and limited customer concentration Leading provider of third-party insurance BMS products and services Adjusted leverage in the low-9x area at June 30, 2018 Cash balance of $53 million Modest free operating cash flow (FOCF) No near-term maturities Financial sponsor ownership 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 systems industry. Additionally, we forecast the company will continue generating predictable cash flow, leading to modest improvements in credit measures over the next 12 months. We could lower the
