Summary: Omnitracs LLC

Limited scale and narrow product and end market focus limit its ability to mitigate transportation industry volatility; Fragmented and competitive conditions in the fleet management systems (FMS) industry; Solid competitive positioning compared to other FMS providers; High recurring revenue base and high customer renewal rates provide good visibility into cash flow generation over the next 12 months. Adjusted leverage around 6x as of June 30, 2018; EBITDA margins in the high-20% area; and Modest free operating cash flow (FOCF) generation in the high-single-digit area as a percentage of debt. The stable outlook reflects S&P Global Ratings' expectation that Dallas-based fleet management software provider Omnitracs LLC will continue to achieve modest revenue and EBITDA growth through new customer gains and premium

...Business Risk: Weak Financial Risk: Highly leveraged + Limited scale and narrow product and end market focus limit its ability to mitigate transportation industry volatility; + Fragmented and competitive conditions in the fleet management systems (FMS) industry; + Solid competitive positioning compared to other FMS providers; + High recurring revenue base and high customer renewal rates provide good visibility into cash flow generation over the next 12 months. + Adjusted leverage around 6x as of June 30, 2018; + EBITDA margins in the high-20% area; and + Modest free operating cash flow (FOCF) generation in the high-single-digit area as a percentage of debt....

Summary