Automotive Aftermarket Stock Performance - BB&T€¦ · 23-03-2016 · Automotive AftermArket...

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Automotive AftermArket

Weekly Automotive Aftermarket Intelligence ReportMarch 23, 2016

Automotive Aftermarket Stock Performance*

Percent Change1 Week 1 Month YTD

Manufacturers 1.6% 14.6% 2.3% (0.7%) 6.8% 6.7% (3.3%) 7.1% (10.6%)0.1% 16.4% 4.6% 0.2% 13.8% (0.2%)1.4% 6.9% 0.3%

Retailers & DistributorsProfessional InstallersCollision

Automotive AftermarketS&P 500

1 Weighted by market capitalization

Segment Index 1

S&P 500Last Month Return

6.9%

S&P 500Last Week Return

1.4%

(10%) (5%) 0% 5% 10%

(10%)

(5%)

0%

5%

10%

15%

20%

Tenneco

SMP

Snap-On

MPA

Dorman

Cooper Tire

Axalta

LKQ

KAR

Copart

Boyd

Sonic

Rush

Penske

Monro

Lithia Motors Inc.

Group 1

CarMax

Auto Nation

Asbury

U.S. Auto Parts

Uni-Select

O’Reilly

GPC

AutoZone

Advance Auto

Goodyear

Last

Mon

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Ret

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Last Week’s Return

LEADING SLIPPING

IMPROVING LAGGING

Horizon Global (not shown) had one week and one month returns of 9.4% and 38.6%, respectively.

on february 29, 2016, icahn enterprises announced a $7 per share offer for the outstanding shares of federal-mogul Holdings Corporation.

*Size of the bubble represents relative market capitalization

Source: Capital iQ

2

Automotive Aftermarket Stock Performance

Most Recent Quarter Sales Growth (Year-over-Year)

Source: Capital iQ

(50%)

(40%)

(30%)

(20%)

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(7.1%) (6.7%) (4.9%)

11.9%

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1.3%

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5.3% 10.5%

(4.2%)

(39.3%)

9.1% 5.8% 4.1% 5.3%

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(13.6%)

38.1%

(5.4%)

17.7%

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12.6% 11.2% 11.2% 5.1%

8.5% 12.6%

3.8%

Mar-16Feb-2016Jan-2016Dec-2015Nov-2015Oct-2015Sep-2015Aug-2015Jul-2015Jun-2015May-2015Apr-2015Mar-2015(40%)

(30%)

(20%)

(10%)

0%

10%

20%

30%

Suppliers

Independent Service Providers & Dealers

BB&T Automotive Aftermarket Index

Retailers & Distributors

Collision

S&P 500 Index

Source: Capital iQ

3

SuPPlieRS

indePendent SeRvice PRovideRS & deAleRS

RetAileRS & diStRibutoRS

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5-Year Average

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

CurrentOne Month AgoOne Year Ago

8.6x 8.3x 7.8x

9.9x

5-Year Average

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x


13.8x 12.1x

12.1x

11.2x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x


14.7x 12.8x 13.3x10.4x

5-Year Average

5-Year Average

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x


13.2x 11.7x

12.7x

13.0x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x


11.7x 10.7x 11.1x

11.5x

5-Year Average

1 enterprise value = market Capitalization + Debt – Cash; eBitDA = earnings Before interest, taxes, Depreciation, and Amortization2 kAr is included in both retailers & Distributors and CollisionSource: Capital iQ

enterprise value / last 12 Months’ ebitdA Multiples1,2

4

Stock 52 Week Market Price / P / E Forward PEG TEV / Revenue TEV / EBITDATicker Price High / Low Cap TEV TBV LTM CY 2016 CY 2017 CY 2016 CY 2017 LTM CY 2016 CY 2017 LTM CY 2016 CY 2017

SuPPLIERSAxalta Coating Systems Ltd. AXTA $29.16 $36.50 / $20.67 $6,749 $9,774 NM 45.1x 23.7x 19.6x 1.6x 1.4x 2.4x 2.4x 2.3x 11.6x 10.7x 9.9x

Cooper Tire & Rubber Co. CTB $36.96 $43.94 / $31.18 2,042 1,884 2.5x 8.4x 9.6x 10.0x NA NA 0.6x 0.6x 0.6x 3.4x 3.9x 4.1x

Dorman Products, Inc. DORM $54.63 $54.63 / $40.17 1,894 1,815 3.9x 21.3x 19.0x 17.3x 1.2x 1.0x 2.3x 2.1x 2.0x 11.2x 10.3x 9.6x

Federal-Mogul Holdings Corporation FDML $9.36 $14.00 / $3.81 1,633 4,633 NM 17.7x 9.3x 7.8x NA NA 0.6x 0.6x 0.6x 7.3x 6.7x 6.3x

The Goodyear Tire & Rubber Company GT $32.63 $35.30 / $25.46 8,661 13,163 2.7x 13.7x 8.5x 8.0x NA NA 0.8x 0.8x 0.8x 5.6x 5.0x 5.0x

Horizon Global Corporation HZN $12.23 $15.88 / $8.04 222 387 NM 19.2x 13.5x 10.2x 1.4x 1.0x 0.7x 0.7x 0.6x 8.0x 7.0x 6.4x

Motorcar Parts of America, Inc. MPAA $37.39 $41.03 / $25.86 696 712 3.5x NM 16.1x 13.7x 0.8x 0.7x 2.0x 1.7x 1.5x NM 8.1x 7.1x

Snap-on Incorporated SNA $156.40 $174.52 / $133.09 9,028 9,852 6.3x 21.3x 17.5x 15.7x 1.4x 1.3x 2.7x 2.8x 2.7x 11.8x 10.6x 9.8x

Standard Motor Products Inc. SMP $33.54 $45.72 / $29.69 760 788 2.5x 16.2x 12.8x 11.4x 1.0x 0.9x 0.8x 0.8x 0.7x 7.1x 7.2x 6.4x

Tenneco Inc. TEN $50.39 $61.73 / $34.45 2,962 3,970 10.1x 11.4x 9.2x 8.1x 0.6x 0.6x 0.5x 0.5x 0.4x 5.1x 4.8x 4.6x

MEAn $3,465 $4,698 4.5x 19.4x 13.9x 12.2x 1.1x 1.0x 1.3x 1.3x 1.2x 7.9x 7.4x 6.9x

MEDIAn $1,968 $2,927 3.5x 17.7x 13.2x 10.8x 1.2x 1.0x 0.8x 0.8x 0.8x 7.3x 7.1x 6.4x

RETAILERS & DISTRIBuToRSAdvance Auto Parts Inc. AAP $157.73 $201.24 / $131.59 $11,546 $12,687 14.7x 20.9x 17.6x 15.7x 1.4x 1.2x 1.3x 1.3x 1.3x 10.3x 9.3x 8.8x

AutoZone, Inc. AZO $785.90 $803.83 / $652.19 23,485 28,122 NM 21.2x 18.7x 16.8x 1.4x 1.3x 2.7x 2.6x 2.5x 12.3x 11.6x 11.2x

Genuine Parts Company GPC $97.23 $98.82 / $76.50 14,660 15,124 8.2x 21.1x 20.4x 19.0x 4.6x 4.3x 1.0x 1.0x 0.9x 11.9x 11.3x 10.8x

KAR Auction Services, Inc. KAR $37.03 $39.87 / $31.54 5,134 8,053 NM 24.5x 17.7x 15.7x 1.2x 1.1x 3.1x 2.8x 2.6x 12.5x 11.0x 10.1x

O'Reilly Automotive Inc. ORLY $268.81 $277.96 / $206.86 26,098 27,372 21.9x 29.5x 25.3x 22.3x 1.7x 1.5x 3.4x 3.2x 3.0x 15.7x 14.2x 13.1x

U.S. Auto Parts Network, Inc. PRTS $2.77 $3.28 / $1.50 93 111 4.9x NM NM NM NM NM 0.4x 0.4x 0.4x 18.8x 10.3x 8.7x

Uni-Select Inc.1 UNS $43.26 $54.84 / $29.42 940 926 4.4x 20.0x 18.0x 16.5x NA NA 0.7x 0.8x 0.8x 9.7x 9.6x 8.9x



InDEPEnDEnT SERVICE PRoVIDERS & DEALERSAsbury Automotive Group, Inc. ABG $60.95 $96.58 / $43.56 $1,494 $3,237 11.0x 10.7x 10.3x 9.3x 0.7x 0.6x 0.5x 0.5x 0.4x 9.7x 9.9x 9.5x

AutoNation, Inc. AN $48.78 $67.50 / $40.45 5,201 11,221 10.1x 12.3x 11.4x 10.3x 1.0x 0.9x 0.5x 0.5x 0.5x 11.2x 10.4x 9.9x

CarMax Inc. KMX $50.16 $75.40 / $41.25 9,833 20,405 3.4x 16.5x 15.4x 14.1x 1.0x 1.0x 1.4x 1.3x 1.2x 17.3x 16.4x 14.9x

Group 1 Automotive Inc. GPI $58.50 $97.34 / $47.67 1,370 4,165 NM 8.0x 7.9x 7.3x 0.7x 0.6x 0.4x 0.4x 0.4x 10.0x 10.2x 9.6x

Lithia Motors Inc. LAD $89.93 $126.56 / $72.30 2,606 4,521 5.7x 12.7x 11.7x 10.9x 0.5x 0.4x 0.6x 0.5x 0.5x 12.0x 11.2x 10.5x

Monro Muffler Brake Inc. MNRO $69.24 $77.00 / $55.34 2,220 2,516 26.3x 35.3x 29.6x 29.7x NA NA 2.7x 2.5x 2.5x 16.0x 13.7x 11.8x

Penske Automotive Group, Inc. PAG $39.34 $54.39 / $29.41 3,394 8,040 NM 11.6x 10.2x 9.3x 1.2x 1.1x 0.4x 0.4x 0.4x 11.8x 12.0x 11.2x

Rush Enterprises, Inc. RUSH.B $18.13 $27.02 / $14.20 738 2,259 1.4x 11.0x NA NA NA NA 0.5x 0.5x 0.5x 8.6x 16.4x 12.8x

Sonic Automotive Inc. SAH $18.94 $25.77 / $15.68 876 3,215 5.0x 9.2x 8.9x 8.2x 0.9x 0.8x 0.3x 0.3x 0.3x 10.4x 10.6x 10.1x



CoLLISIonBoyd Group Income Fund1 BYD.UN $48.42 $53.91 / $35.98 $888 $957 NM 30.8x 22.4x 18.8x 1.3x 1.1x 1.2x 0.9x 0.8x 13.5x 10.6x 9.4x

Copart, Inc. CPRT $40.88 $41.72 / $32.26 4,666 5,183 10.3x 24.3x 19.9x 18.1x 1.7x 1.6x 4.4x 4.2x 4.0x 12.9x 11.9x 10.9x

KAR Auction Services, Inc. KAR $37.03 $39.87 / $31.54 5,134 8,053 NM 24.5x 17.7x 15.7x 1.2x 1.1x 3.1x 2.8x 2.6x 12.5x 11.0x 10.1x

LKQ Corp. LKQ $30.63 $32.25 / $23.39 9,440 10,931 16.3x 22.7x 18.6x 16.3x 1.1x 1.0x 1.5x 1.4x 1.3x 12.9x 11.5x 10.4x



valuation MetricsAs of 3/18/2016($ in millions, except per share)

1 Stock Prices, market Cap, and enterprise values converted at the exchange rate as of the date above* Definitions: Ltm = Last twelve months; eBitDA = earnings Before interest, taxes, Depreciation, and Amortization; P / e = Stock Price / earnings Per Share; tev = total enterprise value

tBv = tangible Book value; PeG = (Calendarized P / e) / Long term Growth rateSources: Capital iQ, Company filings

5

net Margins Sales Growth EBITDA Growth SSSTicker LTM Date Revenue EBITDA EBIT Income Gross EBITDA EBIT nI 1 Year 5 Year 1 Year 5 Year Latest Q

SuPPLIERSAffinia Group Intermediate Holdings Inc.1 N/A 09/30/15 $1,337 $145 $125 ($3) 23.4% 10.8% 9.3% (0.2%) 23.9% (7.2%) 5.1% (3.9%)

Axalta Coating Systems Ltd. AXTA 12/31/15 4,113 842 535 94 36.9% 20.5% 13.0% 2.3% (6.3%) NA 3.5% NA

Cooper Tire & Rubber Co. CTB 12/31/15 2,973 555 433 213 23.4% 18.7% 14.6% 7.2% (13.2%) (2.3%) 7.4% 10.8%

Dorman Products, Inc. DORM 12/26/15 803 162 146 92 38.4% 20.2% 18.2% 11.5% 6.9% 12.9% 6.5% 13.6%

Federal-Mogul Holdings Corporation FDML 12/31/15 7,419 575 234 (110) 14.5% 7.8% 3.2% (1.5%) 1.4% 3.6% (0.5%) (0.9%)

The Goodyear Tire & Rubber Company GT 12/31/15 16,443 2,336 1,638 307 26.1% 14.2% 10.0% 1.9% (9.3%) (2.7%) 3.8% 10.6%

Horizon Global Corporation HZN 12/31/15 576 48 31 8 25.9% 8.4% 5.4% 1.4% NA NA NA NA

Motorcar Parts of America, Inc. MPAA 12/31/15 355 34 31 11 27.5% 9.6% 8.8% 3.2% 20.7% 17.7% (6.8%) 2.8%

Snap-on Incorporated SNA 01/02/16 3,593 833 764 479 50.6% 23.2% 21.3% 13.3% 2.9% 6.0% 10.1% 15.4%

Standard Motor Products Inc. SMP 12/31/15 972 110 92 46 28.9% 11.3% 9.5% 4.7% (0.9%) 3.7% (13.1%) 12.6%

Tenneco Inc. TEN 12/31/15 8,209 772 586 247 17.2% 9.4% 7.1% 3.0% (2.5%) 6.7% 4.9% 8.3%

UCI Holdings Limited1 N/A 09/30/15 1,003 84 35 (43) 11.7% 8.3% 3.5% (4.3%) 18.8% 1.6% (12.4%) 13.7%

MEAn $3,983 $541 $388 $112 27.0% 13.5% 10.3% 3.5% 3.8% 4.0% 0.8% 8.3% nA

MEDIAn $2,155 $359 $190 $69 26.0% 11.1% 9.4% 2.6% 1.4% 3.6% 3.8% 10.7% nA

RETAILERS & DISTRIBuToRSAdvance Auto Parts Inc. AAP 01/02/16 $9,737 $1,233 $964 $473 45.4% 12.7% 9.9% 4.9% (1.1%) 10.4% (10.7%) 10.5% 0.0%

American Tire Distributors Holdings, Inc.1 N/A 01/03/15 5,031 242 89 (95) 17.6% 4.8% 1.8% (1.9%) 31.1% 18.3% 29.4% 19.4%

AutoZone, Inc. AZO 02/13/16 10,427 2,285 2,004 1,197 52.5% 21.9% 19.2% 11.5% 6.4% 6.2% 7.2% 7.4% 3.5%

Genuine Parts Company2 GPC 12/31/15 15,280 1,266 1,124 706 29.8% 8.3% 7.4% 4.6% (0.4%) 6.4% (0.5%) 7.7% 6.0%

KAR Auction Services, Inc. KAR 12/31/15 2,640 644 432 215 43.3% 24.4% 16.3% 8.1% 11.6% 7.7% 12.2% 7.9%

O'Reilly Automotive Inc. ORLY 12/31/15 7,967 1,743 1,533 931 52.3% 21.9% 19.2% 11.7% 10.4% 8.1% 18.7% 14.3% 7.5%

U.S. Auto Parts Network, Inc. PRTS 01/02/16 291 6 (2) (1) 28.7% 2.0% (0.7%) (0.4%) 2.7% 2.1% 9.7% (18.3%)

Uni-Select Inc.5 UNS 12/31/15 1,355 90 80 (40) NM 6.6% 5.9% (3.0%) (24.0%) 1.1% (2.6%) 3.6% 1.1%

MEAn $6,591 $939 $778 $423 38.5% 12.8% 9.9% 4.4% 4.6% 7.5% 7.9% 6.6% 3.6%

MEDIAn $6,499 $939 $698 $344 43.3% 10.5% 8.6% 4.7% 4.6% 7.0% 8.5% 7.8% 3.5%

InDEPEnDEnT SERVICE PRoVIDERS & DEALERSAsbury Automotive Group, Inc. ABG 12/31/15 $6,588 $332 $303 $169 16.1% 5.0% 4.6% 2.6% 12.3% 11.9% 12.0% 18.4%

AutoNation, Inc. AN 12/31/15 20,862 998 871 443 15.6% 4.8% 4.2% 2.1% 9.2% 10.9% 9.6% 11.8%

CarMax Inc. KMX 11/30/15 14,958 1,178 1,047 626 16.0% 7.9% 7.0% 4.2% 8.1% 11.8% 15.4% 12.5%

Group 1 Automotive Inc. GPI 12/31/15 10,633 416 369 94 14.4% 3.9% 3.5% 0.9% 7.0% 14.1% 6.7% 17.8%

Lithia Motors Inc. LAD 12/31/15 7,864 383 341 183 14.9% 4.9% 4.3% 2.3% 45.9% 31.0% 44.0% 37.2%

Monro Muffler Brake Inc. MNRO 12/26/15 934 158 119 65 40.4% 16.9% 12.7% 7.0% 6.3% 8.1% 11.2% 9.8% (2.5%)

Penske Automotive Group, Inc. PAG 12/31/15 19,285 645 567 326 14.9% 3.3% 2.9% 1.7% 11.9% 14.2% 13.0% 16.7%

Rush Enterprises, Inc. RUSH.B 12/31/15 4,980 263 122 66 15.8% 5.3% 2.4% 1.3% 5.3% 27.2% (0.5%) 24.8%

Sonic Automotive Inc. SAH 12/31/15 9,624 309 240 86 14.7% 3.2% 2.5% 0.9% 4.6% 7.9% 1.7% 6.9%

MEAn $10,636 $520 $442 $229 18.1% 6.1% 4.9% 2.6% 12.3% 15.2% 12.6% 17.3% (2.5%)

MEDIAn $9,624 $383 $341 $169 15.6% 4.9% 4.2% 2.1% 8.1% 11.9% 11.2% 16.7% (2.5%)

CoLLISIonBoyd Group Income Fund3 BYD.UN 09/30/15 $822 $69 $51 ($22) 45.8% 8.3% 6.1% (2.7%) 43.8% 36.9% 44.3% 41.4% 7.3%

Copart, Inc.4 CPRT 01/31/16 1,168 402 360 226 44.3% 34.4% 30.9% 19.4% 0.4% 7.0% 4.2% 6.5% 5.6%

KAR Auction Services, Inc. KAR 12/31/15 2,640 644 432 215 43.3% 24.4% 16.3% 8.1% 11.6% 7.7% 12.2% 7.9%

LKQ Corp.5 LKQ 12/31/15 7,193 852 724 423 39.4% 11.9% 10.1% 5.9% 6.7% 23.8% 7.9% 20.2% 7.0%

MEAn $2,956 $492 $392 $210 43.2% 19.8% 15.9% 7.7% 15.6% 18.9% 17.1% 19.0% 6.6%

MEDIAn $1,904 $523 $396 $220 43.8% 18.1% 13.2% 7.0% 9.2% 15.8% 10.0% 14.1% 7.0%

operating ResultsLast 12 months as of 3/20/2016($ in millions, except per share)

1 Affinia Group, American tire Distributors, and uCi international have publicly traded debt only and thus are included in operating and performance metrics, but not valuation multiples2 Same Store Sales for Genuine Parts reflects automotive segment only3 reported results converted at the exchange rate as of the above date4 Same Store Sales reflect Copart’s organic comp growth5 Same Store Sales reflect LkQ’s organic growth for parts and services* Definitions: Ltm = Last twelve months; eBitDA = earnings Before interest, taxes, Depreciation, and Amortization; eBit = earnings Before interest & taxes; Ni = Net income

SSS = Same Store Sales, where applicableSources: Capital iQ, Company filings

6

1 Affinia Group, American tire Distributors, and uCi international have publicly traded debt only and thus are included in operating and balance sheet metrics, but not valuation multiples * Definitions: eBitDA = earnings Before interest, taxes, Depreciation, and Amortization; Acct. rec. Days outstanding = Accounts receivable / Sales * Days; inventory Days outstanding = inventory / Cost of Goods Sold

* Days; Days Payable outstanding = Accounts Payable / Cost of Goods Sold * Days; Cash Conversion = Acct. rec. Days outstanding + inventory Days outstanding - Days Payable outstanding; Debt / Capital = total Debt / (total Debt + Book value of equity); interest Coverage = eBitDA / interest expense

Sources: Capital iQ, Bloomberg, Company filings

Days outstanding Cash Total Debt / Debt / Interest Current Quick S&P DebtTicker A / R Inventory A / P Conversion Debt Capital EBITDA Coverage Ratio Ratio Rating outlook

SuPPLIERSAffinia Group Intermediate Holdings Inc.1 N/A 35.4 70.6 45.2 60.7 $824 151.2% 5.7x 2.4x 1.2x 0.5x B Stable

Axalta Coating Systems Ltd. AXTA 57.4 75.1 66.9 65.6 3,443 75.1% 4.1x 3.6x 2.2x 1.3x NA NA

Cooper Tire & Rubber Co. CTB 45.4 66.9 38.2 74.2 309 23.3% 0.6x 15.6x 3.1x 2.1x BB- Positive

Dorman Products, Inc. DORM 92.9 135.1 43.6 184.3 0 NA NA NA 4.9x 2.9x NA NA

Federal-Mogul Holdings Corporation FDML 68.7 73.5 51.5 90.8 3,062 77.2% 5.3x 1.0x 1.7x 0.9x B- Negative

The Goodyear Tire & Rubber Company GT 45.4 77.1 86.2 36.2 5,756 58.2% 2.5x 3.3x 1.2x 0.7x BB Stable

Horizon Global Corporation HZN 40.2 103.9 69.3 74.9 189 99.0% 3.9x 4.5x 1.6x 0.7x B Stable

Motorcar Parts of America, Inc. MPAA NA 96.1 85.8 NA 31 13.2% 0.9x 1.8x 1.0x 0.1x NA NA

Snap-on Incorporated SNA 61.3 103.9 30.9 134.3 898 27.0% 1.1x 14.6x 2.8x 1.8x A- Stable

Standard Motor Products Inc. SMP 47.0 148.9 37.5 158.5 48 10.8% 0.4x NM 2.0x 0.6x NA NA

Tenneco Inc. TEN 48.2 36.8 73.8 11.1 1,210 70.0% 1.6x 7.3x 1.3x 0.8x BB+ Stable

UCI Holdings Limited1 N/A 64.8 85.2 53.7 96.3 477 74.5% 5.7x 1.1x 1.9x 0.8x CCC NM

MEAn 55.2 89.4 56.9 89.7 $1,354 61.8% 2.9x 5.5x 2.1x 1.1x

MEDIAn 48.2 81.2 52.6 74.9 $651 70.0% 2.5x 3.4x 1.8x 0.8x

RETAILERS & DISTRIBuToRSAdvance Auto Parts Inc. AAP 13.1 277.8 206.5 84.4 $1,232 33.4% 1.0x 15.3x 1.3x 0.2x BBB- Stable

American Tire Distributors Holdings, Inc.1 N/A 25.0 82.7 54.9 52.9 1,824 74.5% 7.5x 1.3x 1.8x 0.5x NA NA

AutoZone, Inc. AZO NA 259.0 273.0 NA 4,845 156.1% 2.1x 15.4x 0.8x 0.0x BBB Stable

Genuine Parts Company GPC 44.1 102.9 91.9 55.1 663 17.3% 0.5x NM 1.4x 0.5x NA NA

KAR Auction Services, Inc. KAR 270.2 NA 131.6 NA 3,074 68.9% 4.8x 5.6x 1.1x 1.0x BB- Stable

O'Reilly Automotive Inc. ORLY 7.0 248.8 236.4 19.4 1,390 41.5% 0.8x NM 1.0x 0.1x BBB+ Stable

U.S. Auto Parts Network, Inc. PRTS 4.4 87.3 44.0 47.7 22 50.3% 3.8x NM 1.3x 0.2x NA NA

Uni-Select Inc. UNS 43.6 153.1 170.7 26.1 90 17.1% 1.0x 12.9x 1.8x 0.8x NA NA

MEAn 58.2 173.1 151.1 47.6 $1,643 57.4% 2.7x 10.1x 1.3x 0.4x

MEDIAn 25.0 153.1 151.1 50.3 $1,311 45.9% 1.6x 12.9x 1.3x 0.3x

InDEPEnDEnT SERVICE PRoVIDERS & DEALERSAsbury Automotive Group, Inc. ABG 6.5 59.5 4.8 61.3 $1,746 84.7% 5.3x 4.1x 1.3x 0.3x BB+ Stable

AutoNation, Inc. AN 6.2 67.5 5.6 68.0 6,094 72.2% 6.1x 5.0x 0.9x 0.2x BBB- Stable

CarMax Inc. KMX 2.2 58.0 12.2 47.9 10,606 78.5% 9.0x NM 2.9x 0.1x NA NA

Group 1 Automotive Inc. GPI 4.3 66.1 11.2 59.2 2,808 75.4% 6.8x 3.3x 1.1x 0.2x BB+ Stable

Lithia Motors Inc. LAD 14.5 74.2 3.7 85.0 1,960 70.3% 5.1x 7.7x 1.2x 0.2x NA NA

Monro Muffler Brake Inc. MNRO 1.5 87.6 45.2 43.9 300 36.4% 1.9x 8.3x 1.2x 0.1x NA NA

Penske Automotive Group, Inc. PAG 14.5 70.0 9.8 74.7 4,664 71.8% 7.2x 3.9x 1.0x 0.2x BB Stable

Rush Enterprises, Inc. RUSH.B 9.9 90.7 10.6 90.0 1,586 65.2% 5.1x NM 1.1x 0.2x NA NA

Sonic Automotive Inc. SAH 14.7 64.7 5.7 73.8 2,343 76.3% 7.6x 2.2x 1.1x 0.2x BB Stable

MEAn 8.2 70.9 12.1 67.1 $3,568 70.1% 6.0x 4.9x 1.1x 0.1x

MEDIAn 6.5 67.5 9.8 68.0 $2,343 72.2% 6.1x 4.1x 1.1x 0.1x

CoLLISIonBoyd Group Income Fund BYD.UN 20.6 9.4 64.1 NM $112 0.5x 1.6x 6.7x 1.0x 0.8x NA NA

Copart, Inc. CPRT 80.7 4.9 82.8 2.8 676 0.5x 1.7x 12.5x 1.9x 1.7x NA NA

KAR Auction Services, Inc. KAR 270.2 NA 131.6 NA 3,074 0.7x 4.8x 5.6x 1.1x 1.0x BB- Stable

LKQ Corp. LKQ 30.2 125.2 33.2 122.2 1,586 0.3x 1.9x 11.8x 3.1x 0.9x BB Stable

MEAn 100.4 46.5 77.9 62.5 $1,362 49.1% 2.5x 9.1x 1.8x 1.1x

MEDIAn 55.5 9.4 73.4 62.5 $1,131 46.9% 1.8x 9.2x 1.5x 1.0x

balance Sheet MetricsAs of 3/20/2016($ in millions, except per share)

7

MileS tRAveled And AveRAGe GASoline PRice PeR GAllon1

1 Data computed with the federal Highway Administration Statistics table focusing on highway-going registered motor vehicles Sources: fHWA, u.S. energy information Administration

What We Are Hearing from the Road

(3.0%)

(2.0%)

(1.0%)

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Dec-15Nov-15Oct-15Sep-15Aug-15Jul-15Jun-15May-15Apr-15Mar-15Feb-15Jan-15Dec-14

Gasoline Prices

Average Gasoline Prices Per Gallon

Year

-Ove

r-Ye

ar C

hang

e in

Mil

es T

rave

led

Vehicle Miles Traveled

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

4.6%

6.0%

4.0%

5.0% 5.1%

4.1%

5.1%

6.4%

3.5%

5.4%

3.5%

5.0% 5.1%

(4.0%)

(2.0%)

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Q4'15Q3'15Q2'15Q1'15Q4'14Q3'14Q2'14Q1'14Q4'13Q3'13Q2'13Q1'13Q4'12Q3'12Q2'12

Retailers and Distributors Independent Service Providers Collision

0.7%

(2.1%)

1.2%

(0.7%)

(2.2%)

0.4%

(0.6%)

(3.3%)

4.9%

0.5%

(2.8%)

5.9%

1.7%

0.6%

9.0%

1.3%

(2.3%)

7.7%

3.7%

0.3%

7.0%

2.3%

1.0%

9.0%

2.6%

0.4%

6.7%

2.8%

2.1%

8.3%

3.3%

1.7%

7.1%

2.9%

1.7%

6.3%

3.3%

0.1%

7.5%

2.9%

(0.2%)

7.1%

4.5%

(2.5%)

7.0%

SAMe StoRe SAleS GRoWtH*

*Same Store Sales growth measures revenue growth for stores that have been open for at least one yearretailers and Distributors include: Advance Auto Parts, AutoZone, GPC (NAPA), o’reily Automotive, uni-Select, and Pep Boys (no longer included following its acquisition on february 2, 2016)independent Service Providers include: monro muffler Brake and Pep Boys (no longer included following its acquisition on february 2, 2016)Collision includes: Copart, Boyd Group, and LkQ. LkQ and Copart report organic comp sales – LkQ reports comp growth on a distribution center and Copart does so on an established, mature location that has repeat salesSources: Capital iQ, Company filings

Vista Equity Partners Acquires Solera Holdings: San francisco, CA-based private equity firm vista equity Partners completed its buyout of Westlake, tX-based risk and asset management software provider Solera Holdings, inc. on march 3, 2016. the firm paid $55.85 per share, an implied enterprise value of approximately $6.5 billion, to acquire Solera in a deal that was previously announced on September 14, 2015.

formerly listed on the New York Stock exchange under ticker SLH, Solera, provides software to the automobile claims processing industry. vista equity Partners’ bid, which represented an approximately 53% premium to Solera’s August 3rd closing price, came after the company announced that it had established a special committee to evaluate strategic alternatives.

Husky Corporation Acquires S.U.R.&R.: Pacific, mo-based fuel dispensing products and services provider Husky Corporation announced on march 2, 2016 that it had acquired Akron, oH-based aftermarket repair kits and tools supplier S.u.r.&r. financial terms of the transaction were not disclosed.

founded in 2000, S.u.r.&r. supplies fuel, brake, air conditioning, and transmission fluid line repair kits as well as specialty tools to the aftermarket. the acquisition is part of Husky’s strategy as a provider of petroleum dispensing nozzles and related equipment to serve the broader transportation sector.

8

Recent Mergers & AcquisitionsClose Date Target Buyer (Sponsor) Transaction Details

Pending Pittsburgh Glass Works LLC (Kohlberg & Company, L.L.C.)

LKQ Corp. (NasdaqGS:LKQ) LKQ Corp. (NasdaqGS:LKQ) has entered into a definitive agreement to acquire Pittsburgh Glass Works LLC, a manufacturer of automotive glass products based in Pittsburgh, Pennsylvania.

Pending BASF Coatings GmbH, Global Industrial Coatings Business

Akzo Nobel N.V. (ENXTAM:AKZA) Akzo Nobel N.V. (ENXTAM:AKZA) has entered into a definitive agreement to acquire Global Industrial Coatings Business from BASF Coatings GmbH. The transaction includes technologies, patents and registered brands, as well as two plants.

Pending American Trailer Works, Inc. (Southlake Equity Group)

Big Tex Trailer Manufacturing, Inc. (Bain Capital, LLC)

Big Tex Trailer Manufacturing, Inc., a portfolio company of Bain Capital, LLC, has entered into a definitive agreement to acquire American Trailer Works, Inc., a manufacturer of trailers based in Sumner, Texas.

Pending Rhiag - Inter Auto Parts Italia S.p.A. (Apax Partners LLC)

LKQ Corp. (NasdaqGS:LKQ) LKQ Corp. (NasdaqGS:LKQ) has entered into a definitive agreement to acquire Rhiag - Inter Auto Parts Italia S.p.A., a distributor of automotive spare parts based in Milan, Italy.

Pending TireConnect Bridgestone Corporation Bridgestone Corporation has entered into a definitive agreement to acquire TireConnect, an online sales tool developer based in Ontario, Canada.

Pending Truck-Lite Co., LLC Koch Equity Development LLC and BDT Capital Partners LLC

Koch Equity Development LLC, a Wichita, Kansas-based private investment firm, and BDT Capital Partners LLC, a New York, New York-based private investment firm, have entered into a definitive agreement to acquire Truck-Lite Co., LLC, a safety lighting and filtration systems provider based in Falconer, New York.

Pending Affinia Group Holdings Inc. MANN + Hummel Holding GmbH

MANN + Hummel Holding GmbH, a manufacturer of automotive components, has entered into a definitive agreement to acquire Affinia Group Holdings Inc., a manufacturer and distributor of a range of aftermarket products based in Ann Arbor, Michigan.

Pending German Auto Parts, Inc. SSF Imported Auto Parts LLC SSF Imported Auto Parts LLC has entered into a definitive agreement to acquire German Auto Parts, Inc., a wholesaler of replacement parts and services for BMW and Mercedes-Benz automobiles based in Norcross, Georgia.

Pending APCO Holdings, Inc. Ontario Teachers' Pension Plan Ontario Teachers' Pension Plan has entered into a definitive agreement to acquire APCO Holdings, Inc., a marketer and administrator of aftermarket benefits based in Norcross, Georgia.

3/17/2016 LoJack Corporation (NasdaqGS:LOJN)

CalAmp Corp. (NasdaqGS:CAMP)

CalAmp Corp. (NasdaqGS:CAMP) has acquired LoJack Corporation (NasdaqGS:LOJN), a provider of aftermarket safety, security, and protection products based in Canton, Massachusetts.

3/10/2016 Thompson Auto Supply Auto-Wares, Inc. Auto-Wares, Inc. has acquired Thompson Auto Supply, an automotive services provider and parts retailer based in St. Charles, Illinois.

3/8/2016 Missouri Power Transmission, Inc. Motion Industries, Inc. Motion Industries, Inc. has acquired Missouri Power Transmission, Inc., a distributor of power transmission equipment and industrial supplies based in Saint Louis, Missouri.

3/3/2016 Solera Holdings Inc. (NYSE:SLH) Vista Equity Partners Vista Equity Partners, a San Francisco, California-based private equity firm, has acquired Solera Holdings Inc. (NYSE:SLH), an auto claims processing software provider based in Westlake, Texas.

3/2/2016 S.U.R.&R. Auto Parts Inc. Husky Corporation Husky Corporation has acquired S.U.R.&R. Auto Parts Inc., a manufacturer and distributor of fluid line repair kits based in Akron, Ohio.

3/1/16 Covs Parts Pty Ltd. Genuine Parts Company (NYSE:GPC)

Genuine Parts Company (NYSE:GPC) has acquired Covs Parts Pty Ltd., a distributor of auto parts, tools, equipment, and consumables for transportation and fleet companies headquartered in Welshpool, Australia.

3/1/16 Jiffy-tite Company Inc. Oetiker Limited Oetiker Limited has acquired Jiffy-tite Company Inc., a manufacturer of fluid fitting products based in Lancaster, New York.

3/1/2016 Jean Talon Auto Parts (1993) Ltd. and Centre de Pieces Gagnon

Uni-Select Inc. (TSX:UNS) Uni-Select Inc. (TSX:UNS) has acquired Jean Talon Auto Parts (1993) Ltd. and Centre de Pieces Gagnon, wholesalers of automotive parts based in Canada.

2/29/2016 Roll-N-Lock Corporation Lund International, Inc. (Highlander Partners)

Lund International, Inc., a portfolio company of Highlander Partners, has acquired Roll-N-Lock Corporation, a manufacturer of tonneau cover and cargo management products based in Pompano Beach, Florida.

2/25/2016 Automotive Development Group, LLC

APCO Holdings, Inc. APCO Holdings, Inc. has acquired Automotive Development Group, LLC, a provider of dealership consulting, automotive sales training, and compliance training services to automobile dealerships based in Mooresville, North Carolina.

2/17/2016 Brasher's Auctions, Inc. and West Coast Auto Auctions, Inc.

ADESA, Inc. ADESA, Inc. has acquired Brasher's Auctions, Inc. and West Coast Auto Auctions, Inc., providers of auto auction services based in Salt Lake City, Utah and Sherwood, Oregoan, respectively.

2/16/2016 Professional Collision Centers, Inc.

Service King Paint & Body, LLC (The Blackstone Group)

Service King Paint & Body, LLC, a portfolio company of The Blackstone Group, has acquired Professional Collision Centers, Inc., a provider of auto collision repair services based in Stafford, Virginia.

2/16/2016 Magnuson-Hagopian Enterprises, Inc.

Finishmaster Inc. Finishmaster Inc., a subsidiary of Uni-Select Inc. (TSX:UNS), has acquired Magnuson-Hagopian Enterprises, Inc., a provider of automotive and industrial finishing solutions based in Ferndale, Michigan.

2/11/2016 Florida Auto Wash, Inc. Mister Car Wash, Inc. (Leonard Green & Partners)

Mister Car Wash, a portfolio company of Leonard Green & Partners, has acquired Florida Auto Wash, Inc., an operator of car wash centers based in West Melbourne, Florida.

2/2/2016 Pep Boys (NYSE:PBY) Icahn Enterprises (NasdaqGS:IEP)

Icahn Enterprises (NasdaqGS:IEP) has acquired Pep Boys (NYSE:PBY), an automotive parts retailer based in Philadelphia, Pennsylvania.

2/2/2016 MICO, Incorporated WABCO Holdings Inc. (NYSE:WBC)

WABCO Holdings Inc. (NYSE:WBC) has acquired MICO, Incorporated, a manufacturer of off-road vehicle components based in North Mankato, Minnesota.

2/2/2016 Pure Power Technologies Principals of the Smithfield Group and Kensington Capital Partners

Principals of the Smithfield Group and Kensington Capital Partners have acquired Pure Power Technologies, a supplier of diesel fuel-injection systems based in Blythewood, South Carolina.

2/1/2016 OCH International, Inc. Ashland Inc. (NYSE:ASH) Ashland Inc. (NYSE:ASH) has acquired OCH International, Inc., an operator and franchisor of quick-lube service centers based in Portland, Oregon.

2/1/2016 Magnum Automotive Group, LLC Dana Holding Corporation (NYSE:DAN)

Dana Holding Corporation (NYSE:DAN) has acquired Magnum Automotive Group, LLC, a manufacturer of automotive gaskets based in Bannockbum, Illinois.

1/29/2016 First Impressions Collision, Inc. Service King Paint & Body, LLC (The Blackstone Group)

Service King Paint & Body, LLC, a portfolio company of The Blackstone Group, has acquired First Impressions Collision, Inc., a provider of automotive collision repair services based in Columbus, Ohio.

1/19/2016 Automotive Collision Technologies

Caliber Bodyworks, Inc. (OMERS)

Caliber Bodyworks, Inc., a portfolio company of OMERS, has acquired Automotive Collision Technologies, a collision repair operator based in Baltimore, Maryland.

1/19/2016 Wayne’s Tire & Auto Repair American Tire Depot American Tire Depot has acquired Wayne’s Tire & Auto Repair, an independent tire dealer based in Santa Maria, California.

1/11/2016 Drake Automotive Group Huron Capital Partners Huron Capital Partners has acquired Drake Automotive Group, an automotive parts manufacturer and distributor based in Henderson, Nevada.

9

contact our Automotive Aftermarket investment banking team to find out more.

Joe SparacinoGroup Head of Aftermarket Investment Banking

[email protected]

Mike O’ConnellAssociate

[email protected]

John CoyneAnalyst

[email protected]

Sean WrightAnalyst

[email protected]

William ChamberlinAnalyst

[email protected]

BB&t Capital markets is the leading investment bank to the aftermarket. the firm provides unparalleled industry expertise with best-in-class transaction execution. BB&t Capital markets has the only dedicated aftermarket practice on Wall Street and offers merger and acquisition advisory, capital raising, and a full suite of investment banking services to the entire aftermarket channel and in every niche of the industry.

has been acquired by

a portfolio company of








$975,000,000

Initial Public OfferingCo-Manager

$110,400,000

Initial Public OfferingCo-Manager

Advisor to the Board

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the information contained herein has been obtained from sources we believe to be reliable and accurate, but we do not guarantee its accuracy or completeness. this material is not to be considered an offer or solicitation regarding the sale of any security.

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