Transportation & Logistics Industry Update - January 2017

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TRANSPORTATION & LOGISTICS

0

INDUSTRY UPDATE │ JANUARY 2017

PAGE |

www.harriswilliams.com

1

CONTENTS

M&A TRANSACTIONS

PUBLIC MARKETS OVERVIEW

STOCK PRICE PERFORMANCE

OUR GROUP

CONTACTS

UNITED STATES

Frank MountcastleManaging [email protected]+1 (804) 915-0124

Jason BassManaging [email protected]+1 (804) 915-0132

Joe ConnerManaging Director [email protected]+1 (804) 915-0151

Jeff BurkettDirector [email protected] +1 (804) 932-1334

Jershon JonesDirector [email protected]+1 (804) 932-1356

Jeff KiddVice President [email protected] +1 (804) 915-0178

James O’MalleyVice President [email protected]+1 (804) 915-0165

EUROPE

Jeffery PerkinsManaging Director [email protected]+49 (0) 69 3650638 00



TRUCKING | TRUCKLOAD SPOT RATES SHOW TRUCKING INDUSTRY REBOUND

An index that measures truckload pricing showed that spot rates continue toexceed contract rates, which analysts predict will result in a rebound in theindustry in 2017. The Cowen-Chainalytics Freight Indices report, distributed byCowen analyst Jason Seidl, showed that dry-van spot rates were 4.5% higher thancontract rates late November, which was the biggest gap of 2016. “The trend maybe because of capacity constraints related to the peak shipping season,” Seidlexplained in the report. “Notably, we did not see this type of activity last year inthe dry-van market.”

Transport Topics

MARINE | SHIPPING ALLIANCES SHORE UP INDUSTRY, UNSETTLE CUSTOMERS

A tumultuous year in the container-shipping industry, which included one bigoperator going under and others bundling together to stay afloat, ended withthree major alliances poised to dominate ocean trade for years to come.Container shipping, which moves 95% of all manufactured goods, is estimated byindustry executives to be worth $1 trillion a year. Traditionally controlled bysovereign-wealth funds and deep-pocketed individuals, it has been a fragmentedindustry over the past 30 years, with dozens of operators regularly undercuttingeach other on price. But overcapacity and sluggish global trade have forced thebiggest players to merge or form alliances, allowing them to cut operating costsby hundreds of millions of dollars by sharing ships and port calls.

Wall Street Journal

AIR | AIR CARGO SURGE COULD CONTINUE THROUGH 2017

Global air freight traffic increased 6.8% in November from a year earlier, driven bystrong growth in most regions, particularly Europe, and could continue risingthrough 2017, the International Air Transport Association said. The uptick in growthcoincides with an increase in the shipment of silicon materials used in high-valueconsumer electronics products shipped by air and an “apparent” turnaround innew export orders, IATA said. The modal shift to air cargo following the collapse ofSout Korean container line Hanjin Shipping in August may have also contributed tothe increase in demand for air cargo.

Journal of Commerce

RAIL | GLOBAL RAIL LOGISTICS TO SURPASS $210 BILLION BY 2021

According to the latest market study released by Technavio, the global raillogistics market is expected to grow at a compound annual growth rate (CAGR)of nearly four percent between 2017 and 2021. This research report provides ananalysis of the market in terms of revenue and emerging market trends andincludes analysis and forecasts for various market segments and all geographicalregions. The important market drivers responsible for the growth of the global raillogistics market are the increased efficiency of rail freight over truck freight,reduction in traffic and road congestion on highways, and growth of railintermodal transportation.

Global Trade Magazine

LOGISTICS | ONLINE HOLIDAY SHOPPING DRIVES RECORD RETURNS

Ecommerce sales are causing a record in returns. National Returns Day, January 5,will reach a new peak, according to UPS. Holiday shoppers are projected toreturn 1.3 million packages with UPS on National Returns Day and more than 5.8million packages during the first full week of January 2017. In 2016, shoppersreturned more than 1 million packages on National Returns Day and 5 millionpackages during the peak returns week. The process of returning packages hasseen improvement, according to the UPS Pulse of the Online Shopper study.

Material Handling & Logistics

WHAT WE’RE READING

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http://www.ttnews.com/articles/basetemplate.aspx?storyid=44450&utm_source=express&utm_medium=newsletter&utm_campaign=newsletter

http://www.wsj.com/articles/shipping-alliances-shore-up-industry-unsettle-customers-1483439400

http://www.joc.com/air-cargo/cargo-airlines/global-air-cargo-surge-could-continue-through-2017_20170110.html

http://www.globaltrademag.com/global-logistics/global-rail-logistics-surpass-210-billion-2021

http://mhlnews.com/global-supply-chain/online-holiday-shopping-drives-record-returns

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M&A TRANSACTIONS

2

RECENT M&A TRANSACTIONS1,2


*Denotes minority investment


Date Sector Target Business Description Acquirer

1/17/2017 Logistics Worldwide Express Prov ides non-asset based third party logistics solutions to small and

medium sized businesses.

Ridgemont Equity Partners

1/13/2017 Transportation

Equipment

Randall Manufacturing

LLC

Manufactures specialty products used primarily in refrigerated semi-

trailers in connection with the transportation of food and beverages.

Safe Fleet

1/10/2017 Logistics Global Freight Source

Inc.

Prov ides logistics and freight forwarding serv ices. GlobalTranz Enterprises

Inc.

1/9/2017 Logistics Freightex Ltd. Prov ides cross-channel and international freight, freight prices, and

truck capacity across Europe.

United Parcel Serv ice,

Inc.

1/9/2017* Rail RailPros Offers construction/project management, railroad coordination,

training and inspections.

Bow River Capital

Partners

1/5/2017 Logistics Lomas Logistics, Inc. Prov ides logistics, packaging, warehousing, and storage serv ices. Radiant Logistics, Inc.

1/5/2017 Logistics C&S Carpet Distribution,

Inc.

Prov ides delivery serv ices for manufacturers of carpet and floor

coverings.

Best Serv ices Group, Inc.

1/4/2017 Logistics Elite Express Prov ides less-than truckload, truckload and temperature-controlled

freight serv ices.

Linx Partners

1/4/2017 Transportation

Equipment

NEBR Provides mass transit repair and maintenance serv ices. Linx Partners

1/4/2017 Logistics TTS, LLC Provides multimodal, agent-based freight management serv ices. Sunteck Transport Group

1/3/2017 Air PEMCO World Air

Serv ices, Inc.

Prov ides aircraft maintenance and engineered serv ices to

commercial air carriers.

Air Transport Serv ices

Group, Inc.

12/29/2016 Logistics National Fast Freight,

Inc.

Offers less than truckload shipping serv ices throughout Canada. TransForce, Inc.

12/22/2016 Trucking Daseke, Inc. Prov ides trucking and logistics serv ices. Hennessy Capital

Acquisition Corp. I I

12/22/2016 Trucking Interide Transportation

LLC

Provides refrigerated food transportation throughout the western

United States.

KJM Capital LLC

12/22/2016 Trucking Blue Sky Logistics LLC Operates dry van and refrigerated trucks in the western United

States.

KJM Capital LLC

12/21/2016 Logistics Continental Traffic

Company

Provides supply chain management solutions. BlueGrace Logistics

12/20/2016 Rail Workhorse Rail LLC Engages in the manufacture and supply of freight car parts. Westinghouse Air Brake

Technologies Corporation

12/12/2016 Marine Pentalver Transport

Limited

Operates off-dock container terminals. Genesee & Wyoming Inc.

12/8/2016 Logistics JS Logistics Prov ides product, storage, distribution and on-demand rush delivery

serv ices.

USPack Logistics

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(2.8%)

0.3%

3.6%

8.2%

10.0%

Rail & Rail Services

Transportation

Equipment

Marine

Trucking

Logistics Providers

1.8%

2.6%

3.0%

3.5%

4.5%


Trucking

Transportation

Equipment

Marine

Logistics Providers

5.9x

6.5x

8.8x

10.2x

10.6x

Transportation

Equipment

Trucking

Marine


Logistics Providers

6.4x

7.2x

7.9x

9.3x

9.3x

Trucking

Transportation

Equipment

Marine


Logistics Providers

(2.4%)

(0.4%)

2.1%

4.7%

5.9%

Marine


Transportation

Equipment

Trucking

Logistics Providers

5.9%

6.1%

6.4%

6.8%

14.2%

Marine

Trucking


Logistics Providers

Transportation

Equipment

PUBLIC MARKETS OVERVIEW

3


TEV / LTM EBITDA TEV / 2017E EBITDA

AVERAGE REVENUE GROWTH (2013 – 2016) AVERAGE REVENUE GROWTH (2016 – 2018P)

AVERAGE EBITDA GROWTH (2013 – 2016) AVERAGE EBITDA GROWTH (2016 – 2018P)


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(30%)

(25%)

(20%)

(15%)

(10%)

(5%)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

Jan-16 Apr-16 Jul-16 Oct-16 Jan-17

Logistics Providers Trucking Rail and Rail Services

Marine Transportation Equipment S&P 500 Index

6.6%

18.0%

23.4%

27.2%

33.6%

50.8%

Marine

S&P 500

Trucking

Logistics Providers


Transportation Equipment

(8.6%)

(4.0%)

(1.7%)

(0.9%)

0.4%

0.5%

Trucking

Logistics Providers



S&P 500

Marine

STOCK PRICE PERFORMANCE

4


(Indexed to January 11th, 2016)

TRAILING TWELVE MONTHS

MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH)


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OUR GROUP

Harris Williams & Co. is a leading advisor to the transportation and logistics M&A market. Our Transportation & LogisticsGroup serves companies in a broad range of attractive niches, including third-party logistics (3PL), truck, rail, marineand air transportation, transportation equipment, and the automotive and heavy duty vehicle market.


RECENTLY CLOSED T&L TRANSACTIONS

DEEP EXPERIENCE ACROSS T&L SECTORS

MARINE TRANSPORTATION

NICHE TRANSPORTATION

TRANSPORTATION EQUIPMENT

RAIL & RAIL SERVICES

AUTOMOTIVE & HEAVY DUTY

VEHICLE

THIRD-PARTY LOGISTICS

AIR TRANSPORTATION

5


a portfolio company of

has been acquired by


has acquired













has merged with

an operating company of

in a recapitalization by

and


has been acquired byhas merged with

a portfolio company ofa portfolio company of

is merging with


http://www.portlogisticsgroup.com/

http://www.portlogisticsgroup.com/

http://corpjetfin.live.subhub.com/custom/Hawker_Beechcraft_black_h_logo.jpg

http://corpjetfin.live.subhub.com/custom/Hawker_Beechcraft_black_h_logo.jpg

Energy, Power& Infrastructure

IndustrialsHealthcare & Life Sciences

Transportation & Logistics

Aerospace, Defense & Government

Services

Business Services

Building Products & Materials

Technology, Media & Telecom

Specialty Distribution

Consumer

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Logistics Providers

Agility Public Warehousing Co. K.S.C. $2,666 $2.09 10.1% 42.9% $2.19 95.6% 5.7x 6.6x 8.6x NA NA

Air Transport Services Group, Inc. 1,347 15.67 (5.4%) 64.9% 17.29 90.6% 4.6x 6.1x 6.6x 5.0x 4.5x

Atlas Air Worldwide Holdings, Inc. 3,022 51.00 (3.4%) 44.8% 57.77 88.3% 8.6x 12.3x 16.0x 6.6x 6.5x

C.H. Robinson Worldwide, Inc. 11,454 73.16 (5.0%) 15.9% 77.89 93.9% 10.8x 12.0x 12.3x 12.4x 11.7x

Deutsche Post AG 47,312 33.37 5.0% 27.2% 33.86 98.6% 9.8x 8.7x 9.8x 8.5x 8.0x

DSV A/S 9,824 45.44 5.8% 17.5% 51.16 88.8% 12.4x 15.8x 16.5x 13.6x 12.1x

Echo Global Logistics, Inc 886 24.70 (13.0%) 19.6% 28.90 85.5% 13.4x 13.1x 15.7x 10.6x 9.0x

Expeditors International of Washington, Inc. 8,651 53.04 (4.0%) 24.0% 56.37 94.1% 9.6x 10.9x 12.0x 11.6x 10.9x

FedEx Corporation 61,820 189.69 (3.5%) 40.8% 201.57 94.1% 8.1x 8.7x 9.6x 6.7x 6.3x

Forward Air Corporation 1,500 48.40 (2.3%) 13.3% 50.72 95.4% 10.8x 9.8x 10.6x 9.7x 9.1x

Hub Group, Inc. Class A 1,493 44.05 (3.1%) 45.8% 46.15 95.4% 6.7x 7.8x 8.7x 8.9x 8.1x

J.B. Hunt Transport Services, Inc. 11,920 96.87 (2.4%) 42.1% 102.38 94.6% 8.5x 9.8x 11.0x 10.2x 9.3x

Kuhne & Nagel International AG 15,284 133.39 1.6% 4.0% 147.27 90.6% 13.6x 14.6x 14.0x 13.3x 12.6x

Landstar System, Inc. 3,476 83.95 (5.0%) 47.8% 90.80 92.5% 9.2x 11.4x 13.7x 12.8x 12.0x

Panalpina Welttransport (Holding) AG 2,572 124.53 1.2% 16.8% 146.33 85.1% 11.7x 13.4x 14.1x 12.2x 10.3x

Roadrunner Transportation Systems, Inc. 803 10.53 (8.4%) 17.1% 13.67 77.0% 6.0x 7.8x 8.5x 7.1x 6.4x

Ryder System, Inc. 9,458 75.31 (8.4%) 49.0% 85.42 88.2% 4.9x 5.2x 5.5x 5.1x 4.7x

TFI International Inc. 3,048 25.45 (4.6%) 52.8% 26.84 94.8% 8.6x 7.8x 9.9x 6.5x 6.3x

United Parcel Service, Inc. Class B 111,563 114.77 (4.0%) 25.6% 120.44 95.3% 9.8x 10.9x 11.4x 10.3x 9.8x

Universal Logistics Holdings, Inc. 637 14.20 (18.2%) 7.9% 18.31 77.6% 5.5x 5.9x 6.8x 7.3x 6.6x

XPO Logistics, Inc. 10,770 43.29 (10.2%) 86.2% 49.86 86.8% 17.5x 9.1x 9.7x 7.9x 6.9x

Median (4.0%) 27.2% 92.5% 9.2x 9.8x 10.6x 9.3x 8.6x

Trucking

ArcBest Corporation $782 $28.05 (13.6%) 50.2% $33.95 82.6% 2.9x 3.1x 5.9x 4.6x 4.3x

Celadon Group, Inc. 666 8.25 (9.8%) 4.7% 12.03 68.6% 6.1x 6.1x 6.9x 7.5x 6.3x

Covenant Transportation Group, Inc. Class A 557 18.52 (16.3%) 13.0% 25.77 71.9% 3.9x 4.0x 4.3x 4.8x 4.4x

Heartland Express, Inc. 1,566 20.00 (6.9%) 24.5% 22.69 88.1% 7.1x 7.6x 8.4x 8.1x 7.4x

Knight Transportation, Inc. 2,692 32.70 (9.0%) 48.6% 38.80 84.3% 6.8x 8.3x 10.0x 9.4x 8.5x

Marten Transport, Ltd. 759 22.95 (12.4%) 41.8% 27.05 84.8% 4.6x 5.4x 5.8x 5.4x 5.1x

Old Dominion Freight Line, Inc. 7,269 85.63 (3.9%) 56.0% 91.69 93.4% 7.1x 7.9x 10.6x 9.8x 8.9x

P.A.M. Transportation Services, Inc. 311 26.43 (2.4%) 4.6% 32.23 82.0% 5.0x 4.1x 5.6x 4.8x 4.0x

Saia, Inc. 1,225 44.10 (7.3%) 121.4% 48.85 90.3% 3.7x 5.4x 8.0x 7.0x 6.3x

Swift Transportation Company Class A 4,228 23.72 (2.5%) 78.5% 27.18 87.3% 5.1x 5.7x 7.7x 7.1x 6.5x

Universal Logistics Holdings, Inc. 637 14.20 (18.2%) 7.9% 18.31 77.6% 5.5x 5.9x 6.8x 7.3x 6.6x

USA Truck, Inc. 227 9.46 (8.2%) (40.5%) 21.46 44.1% 4.8x 6.6x 6.2x 5.7x 5.3x

Werner Enterprises, Inc. 2,077 26.80 (3.4%) 22.3% 29.05 92.3% 4.2x 5.0x 5.9x 5.9x 5.3x

YRC Worldwide Inc. 1,163 13.32 (17.0%) 9.3% 16.97 78.5% 4.8x 4.2x 4.8x 3.6x 3.3x

Median (8.6%) 23.4% 83.5% 4.9x 5.5x 6.5x 6.4x 5.8x

Stock Performance

Stock Price Change from 52-Week TEV / EBITDA EBITDA

($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Jan-16 Jul-16 Current 2017E 2018P


TEV / LTM EBITDA as of

PUBLIC COMPARABLES

7



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Rail and Rail Services

American Railcar Industries, Inc. $1,250 $46.20 (2.2%) 12.6% $51.10 90.4% 4.6x 4.9x 6.1x 7.3x 8.4x

Canadian National Railway Company 61,008 68.86 (1.1%) 34.2% 70.15 98.2% 9.6x 11.0x 12.6x 11.7x 11.1x

Canadian Pacific Railway Limited 28,279 145.66 (6.8%) 29.2% 156.98 92.8% 9.9x 11.5x 12.4x 10.8x 10.2x

CSX Corporation 44,660 36.99 (0.8%) 57.5% 37.73 98.1% 6.8x 7.7x 10.1x 9.2x 8.8x

FreightCar America, Inc. 138 14.98 (7.4%) (15.7%) 20.23 74.0% 2.0x 1.9x 4.3x 8.9x 10.6x

Genesee & Wyoming, Inc. Class A 6,149 70.68 (11.7%) 52.2% 80.73 87.6% 8.5x 9.9x 11.2x 9.0x 8.5x

Greenbrier Companies, Inc. 1,745 47.40 12.7% 93.0% 48.45 97.8% 2.4x 2.4x 4.5x 5.8x 7.4x

Kansas City Southern 11,370 81.55 (5.2%) 17.0% 100.69 81.0% 9.3x 10.8x 10.1x 9.4x 8.7x

Norfolk Southern Corporation 41,296 109.18 (1.3%) 40.4% 112.99 96.6% 8.4x 8.7x 10.3x 9.5x 9.0x

Trinity Industries, Inc. 6,834 28.09 (0.8%) 31.5% 29.31 95.8% 3.9x 4.5x 6.0x 8.7x 9.0x

Union Pacific Corporation 98,607 102.42 (2.4%) 38.7% 106.62 96.1% 7.7x 9.4x 10.6x 9.9x 9.4x

Westinghouse Air Brake Technologies Corporation 7,953 84.06 0.8% 33.1% 89.18 94.3% 9.1x 9.7x 12.1x 11.0x 10.1x

Median (1.7%) 33.6% 95.0% 8.0x 9.0x 10.2x 9.3x 9.0x

Marine

Aegean Marine Petroleum Network Inc. $1,237 $10.35 (11.5%) 46.0% $13.10 79.0% 11.0x 7.1x 9.6x 8.3x 8.5x

Costamare Inc. 1,814 5.86 0.5% (28.4%) 11.00 53.3% 6.3x 5.7x 5.5x 6.3x 6.7x

Diana Shipping Inc. 775 3.69 26.4% 6.6% 4.97 74.2% NM NM NM NM 13.6x

Kirby Corporation 4,229 65.45 (5.6%) 39.7% 73.25 89.4% 5.8x 8.0x 8.9x 10.3x 9.5x

Matson, Inc. 2,343 35.80 (8.8%) (7.5%) 43.24 82.8% 7.1x 6.5x 8.7x 7.6x 7.1x

Nordic American Tankers Limited 1,050 8.49 (10.6%) (42.0%) 16.18 52.5% 7.6x 7.7x 6.3x 9.4x 8.1x

Rand Logistics, Inc. 226 0.91 5.7% (26.0%) 2.95 30.8% 7.8x 7.8x 8.2x 6.5x NA

SEACOR Holdings Inc. 1,856 72.87 5.2% 58.7% 76.32 95.5% 8.9x 11.2x 16.1x 11.8x 10.4x

Wilh. Wilhelmsen ASA 2,590 4.40 22.1% 109.6% 5.55 79.2% 12.5x 11.2x 18.3x 7.5x 6.6x

Median 0.5% 6.6% 79.0% 7.7x 7.8x 8.8x 7.9x 8.3x


Accuride Corporation NA NA NA NA $2.84 NA 4.7x 5.3x NA NA NA

Dana Incorporated 3,664 19.05 (3.5%) 53.3% 19.85 96.0% 4.4x 4.0x 5.9x 5.4x 5.0x

Gentherm Incorporated 1,249 33.90 0.3% (19.3%) 44.62 76.0% 9.6x 8.3x 8.4x 7.9x 7.4x

Spartan Motors, Inc. 276 9.05 (2.2%) 190.1% 10.50 86.2% NM NM NM 12.6x 8.4x

Wabash National Corporation 1,150 16.01 2.4% 48.4% 16.49 97.1% 4.1x 3.8x 4.5x 6.5x 7.2x

Median (0.9%) 50.8% 91.1% 4.6x 4.7x 5.9x 7.2x 7.3x

PUBLIC COMPARABLES

8



Stock Performance

Stock Price Change from 52-Week TEV / EBITDA EBITDA

($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Jan-16 Jul-16 Current 2017E 2018P


TEV / LTM EBITDA as of

PAGE |

Logistics Providers

Agility Public Warehousing Co. K.S.C. $4,846 $4,767 $4,330 NA NA NA NA NA $289 $276 $292 NA NA NA NA NA

Air Transport Services Group, Inc. 580 590 619 757 894 963 9.3% 12.8% 158 179 198 217 272 300 11.2% 17.7%

Atlas Air Worldwide Holdings, Inc. 1,657 1,799 1,823 1,828 1,975 2,104 3.3% 7.3% 292 327 271 376 425 463 8.8% 11.0%

C.H. Robinson Worldwide, Inc. 12,752 13,470 13,476 13,048 13,974 14,593 0.8% 5.8% 740 805 925 914 928 985 7.3% 3.8%

Deutsche Post AG 73,132 75,117 65,681 61,172 63,687 65,582 (5.8%) 3.5% 3,887 4,812 3,587 5,178 5,534 5,899 10.0% 6.7%

DSV A/S 8,137 8,645 7,563 9,637 10,158 10,539 5.8% 4.6% 543 560 532 612 729 818 4.1% 15.6%

Echo Global Logistics, Inc 884 1,173 1,512 1,725 1,913 2,153 24.9% 11.7% 34 44 54 73 82 94 29.1% 13.7%

Expeditors International of Washington, Inc. 6,080 6,565 6,617 6,066 6,435 6,789 (0.1%) 5.8% 600 644 767 712 740 801 5.9% 6.0%

FedEx Corporation 45,567 47,453 50,365 59,913 62,651 65,570 9.6% 4.6% 6,033 4,951 6,165 8,621 9,118 9,971 12.6% 7.5%

Forward Air Corporation 652 781 959 975 1,021 1,071 14.3% 4.8% 109 128 128 139 154 165 8.5% 8.8%

Hub Group, Inc. Class A 3,374 3,571 3,526 3,530 3,757 3,964 1.5% 6.0% 137 136 154 167 169 181 6.7% 4.1%

J.B. Hunt Transport Services, Inc. 5,585 6,165 6,188 6,554 7,140 7,813 5.5% 9.2% 825 920 1,054 1,080 1,168 1,284 9.4% 9.0%

Kuhne & Nagel International AG 18,529 19,118 17,376 19,759 20,511 21,417 2.2% 4.1% 1,028 1,073 1,069 1,084 1,152 1,213 1.8% 5.8%

Landstar System, Inc. 2,665 3,185 3,321 3,100 3,251 3,414 5.2% 4.9% 203 251 269 254 270 288 7.8% 6.4%

Panalpina Welttransport (Holding) AG 7,289 7,327 6,081 5,149 5,450 5,599 (10.9%) 4.3% 172 218 184 168 214 255 (0.8%) 23.1%

Roadrunner Transportation Systems, Inc. 1,361 1,873 1,995 1,961 2,044 2,146 12.9% 4.6% 103 125 130 97 117 127 (1.9%) 14.3%

Ryder System, Inc. 6,419 6,639 6,572 6,762 6,979 7,347 1.7% 4.2% 1,361 1,505 1,660 1,782 1,854 1,976 9.4% 5.3%

TransForce Inc. 3,018 3,363 3,150 3,064 3,533 3,609 0.5% 8.5% 319 372 332 349 473 492 3.0% 18.7%

United Parcel Service, Inc. Class B 55,491 58,256 58,050 60,983 63,930 66,916 3.2% 4.8% 8,765 6,889 9,429 10,510 10,867 11,543 6.2% 4.8%

Universal Logistics Holdings, Inc. 1,033 1,192 1,129 1,076 1,100 1,126 1.4% 2.3% 123 114 108 89 89 97 (10.5%) 4.8%

XPO Logistics, Inc. 702 2,357 7,623 14,629 14,923 15,749 NM 3.8% (17) 92 474 1,247 1,354 1,575 NM 12.4%

Total $259,756 $273,405 $267,955 $281,688 $295,326 $308,462 4.5% 5.9% $25,705 $24,421 $27,783 $33,668 $35,710 $38,526 6.8% 10.0%

Trucking

ArcBest Corporation $2,300 $2,613 $2,667 $2,691 $2,857 $3,006 5.4% 5.7% $107 $154 $167 $137 $168 $182 8.6% 15.4%

Celadon Group, Inc. 614 742 901 1,065 1,065 1,102 20.2% 1.7% 99 87 117 109 109 106 3.2% (1.6%)

Covenant Transportation Group, Inc. Class A 685 719 724 668 699 773 (0.8%) 7.6% 63 89 143 106 122 125 18.5% 8.7%

Heartland Express, Inc. 582 871 736 623 624 652 2.3% 2.3% 149 208 193 190 190 209 8.5% 4.8%

Knight Transportation, Inc. 969 1,102 1,183 1,112 1,177 1,265 4.7% 6.7% 193 256 281 269 286 317 11.8% 8.6%

Marten Transport, Ltd. 659 673 665 666 700 753 0.3% 6.4% 110 115 127 140 141 149 8.2% 3.2%

Old Dominion Freight Line, Inc. 2,338 2,788 2,972 2,983 3,205 3,480 8.5% 8.0% 466 606 676 676 739 815 13.3% 9.8%

P.A.M. Transportation Services, Inc. 403 411 417 434 464 476 2.5% 4.7% 50 55 63 62 67 78 7.4% 12.4%

Saia, Inc. 1,139 1,272 1,221 1,215 1,280 1,368 2.2% 6.1% 125 145 155 157 176 191 7.9% 10.3%

Swift Transportation Company Class A 4,118 4,299 4,229 4,039 4,156 4,376 (0.6%) 4.1% 577 583 611 556 604 638 (1.3%) 7.2%

Universal Logistics Holdings, Inc. 1,033 1,192 1,129 1,076 1,100 1,126 1.4% 2.3% 123 114 108 89 89 97 (10.5%) 4.8%

USA Truck, Inc. 555 602 508 434 438 457 (7.8%) 2.5% 41 60 56 34 39 43 (5.9%) 12.9%

Werner Enterprises, Inc. 2,029 2,139 2,094 1,999 2,072 2,176 (0.5%) 4.3% 295 316 393 328 353 391 3.7% 9.2%

YRC Worldwide Inc. 4,865 5,069 4,832 4,686 4,842 5,070 (1.2%) 4.0% 205 197 259 292 316 345 12.6% 8.7%

Total $22,289 $24,492 $24,279 $23,692 $24,679 $26,081 2.6% 4.7% $2,603 $2,984 $3,349 $3,145 $3,399 $3,687 6.1% 8.2%

Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth

($ in millions) 2013 2014 2015 2016 2017E 2018P '13-16 '16-18P 2013 2014 2015 2016 2017E 2018P '13-16 '16-18P


PUBLIC COMPARABLES

9



PAGE |

Rail and Rail Services

American Railcar Industries, Inc. $751 $733 $889 $626 $531 $454 (5.9%) (14.9%) $179 $204 $273 $197 $170 $149 3.4% (13.0%)

Canadian National Railway Company 10,263 10,986 9,857 9,105 9,605 10,140 (3.9%) 5.5% 4,710 5,137 5,021 4,945 5,191 5,475 1.6% 5.2%

Canadian Pacific Railway Limited 5,952 5,994 5,246 4,786 5,057 5,246 (7.0%) 4.7% 2,340 2,640 2,431 2,483 2,653 2,780 2.0% 5.8%

CSX Corporation 12,026 12,669 11,811 10,859 11,283 11,854 (3.3%) 4.5% 4,534 4,764 4,792 4,512 4,780 5,118 (0.2%) 6.5%

FreightCar America, Inc. 290 599 773 504 409 331 20.2% (19.0%) (4) 17 51 18 15 6 NM (42.6%)

Genesee & Wyoming, Inc. Class A 1,569 1,639 2,000 1,977 2,093 2,248 8.0% 6.6% 533 579 586 563 675 734 1.9% 14.2%

Greenbrier Companies, Inc. 1,755 2,203 2,605 2,681 2,681 1,859 15.2% (16.7%) 143 237 430 458 458 222 47.5% (30.3%)

Kansas City Southern 2,369 2,577 2,419 2,334 2,473 2,641 (0.5%) 6.4% 962 1,106 1,098 1,131 1,229 1,307 5.5% 7.5%

Norfolk Southern Corporation 11,245 11,624 10,511 9,870 10,324 10,783 (4.3%) 4.5% 4,173 4,526 3,938 4,089 4,354 4,599 (0.7%) 6.1%

Trinity Industries, Inc. 4,365 6,170 6,393 4,591 3,414 3,535 1.7% (12.2%) 963 1,402 1,528 999 783 758 1.2% (12.9%)

Union Pacific Corporation 21,963 23,988 21,813 19,885 20,854 21,676 (3.3%) 4.4% 9,223 10,657 10,064 9,248 9,899 10,551 0.1% 6.8%

Westinghouse Air Brake Technologies Corporation 2,566 3,044 3,308 2,952 4,168 4,316 4.8% 20.9% 489 588 701 607 723 784 7.5% 13.6%

Total $75,115 $82,227 $77,625 $70,168 $72,890 $75,081 1.8% (0.4%) $28,243 $31,857 $30,912 $29,249 $30,930 $32,484 6.4% (2.8%)

Marine

Aegean Marine Petroleum Network Inc. $6,335 $6,662 $4,232 $4,031 $5,091 $6,902 (14.0%) 30.8% $84 $54 $81 $140 $150 $146 18.5% 2.0%

Costamare Inc. 414 484 490 462 435 409 3.7% (5.9%) 267 330 325 323 288 272 6.6% (8.2%)

Diana Shipping Inc. 164 176 158 101 135 188 (15.0%) 36.6% 55 52 28 (15) 6 47 NM NA

Kirby Corporation 2,242 2,566 2,148 1,754 1,758 1,907 (7.9%) 4.3% 582 646 573 440 416 438 (8.9%) (0.3%)

Matson, Inc. 1,637 1,714 1,885 1,921 1,998 2,051 5.5% 3.3% 182 203 298 292 314 327 17.1% 5.8%

Nordic American Tankers Limited 244 351 446 238 226 249 (0.7%) 2.2% (7) 74 211 144 110 123 NM (7.7%)

Rand Logistics, Inc. 156 153 148 117 118 NA (9.0%) NA 33 34 32 32 35 NA (0.6%) NA

SEACOR Holdings Inc. 1,247 1,319 1,055 831 893 907 (12.7%) 4.5% 197 245 150 101 160 179 (20.0%) 33.1%

Wilh. Wilhelmsen ASA 325 285 313 1,957 1,890 2,063 81.9% 2.7% 170 134 186 360 336 365 28.3% 0.6%

Total $12,764 $13,710 $10,874 $11,412 $12,544 $14,675 3.5% (2.4%) $1,562 $1,772 $1,884 $1,817 $1,816 $1,896 5.9% 3.6%


Accuride Corporation $643 $705 $686 $590 $577 $640 (2.8%) 4.2% $43 $75 $77 $72 $67 $85 18.9% 8.4%

Dana Incorporated 6,769 6,617 6,060 5,772 6,003 6,246 (5.2%) 4.0% 706 705 618 654 687 740 (2.5%) 6.4%

Gentherm Incorporated 662 812 856 918 982 1,080 11.5% 8.5% 83 135 155 148 158 169 21.0% 7.1%

Spartan Motors, Inc. 470 507 550 585 604 632 7.6% 3.9% 6 10 0 18 22 33 NM NM

Wabash National Corporation 1,636 1,863 2,027 1,824 1,592 1,479 3.7% (10.0%) 142 161 218 242 184 152 19.4% (20.8%)

Total $10,179 $10,504 $10,180 $9,688 $9,758 $10,077 3.0% 2.1% $981 $1,086 $1,068 $1,134 $1,118 $1,179 14.2% 0.3%

PUBLIC COMPARABLES

10



Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth

($ in millions) 2013 2014 2015 2016 2017E 2018P '13-16 '16-18P 2013 2014 2015 2016 2017E 2018P '13-16 '16-18P


PAGE |


SOURCES


1. FactSet.

2. MergerMarket.

3. Pitchbook.

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Transportation & Logistics Industry Update - January 2017

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