Market leader in the higher-education enterprise resource planning (ERP) market. Competitive landscape, with ERP products available from Workday and Oracle. Stable customer base with a large proportion of recurring revenues. High retention rates, in the 96%-98% range. Above-average annual maintenance price increases, in the 5% area. Increasing deferred revenue trends. Financial sponsor ownership. High S&P Global Ratings-adjusted leverage, around mid-9x as of the third quarter of 2018. Annual free operating cash flow (FOCF) of $70 million-$90 million. Improving operating and EBITDA margins in 2018, as technology platform investments decrease. The stable outlook reflects Sophia L.P.'s leading position in the higher education ERP software market, its stable and recurring revenue base, and our expectation that the company will generate free cash
