Download - AUTOMOTIVE AFTERMARKET - BB&TAUTOMOTIVE AFTERMARKET Weekly Automotive Aftermarket Intelligence Report August 24, 2015 Automotive Aftermarket Stock Performance* O'Reilly Advance Auto

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AUTOMOTIVE AFTERMARKET

Weekly Automotive Aftermarket Intelligence ReportAugust 24, 2015

Automotive Aftermarket Stock Performance*

O'Reilly

Advance Auto

AutoZone

Copart

Dorman

Pep Boys

Boyd

AutoNation

Sonic

Cooper Tire

MPA

U.S. Auto PartsRush

Federal-Mogul

Remy

CarMax

Lithia

Goodyear

Genuine Parts

Tenneco LKQ

Solera

Snap-on

KAR

Standard Motor

Penske

Uni-Select

Asbury

Group 1

Monro

LEADING SLIPPING

IMPROVING LAGGING

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Percent Change

1 Week 1 Month LTM

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(5.7%) 1.4% 32.4%

(5.7%) (8.2%) 10.8%

(4.5%) (0.8%) 5.1%

(6.2%) (0.2%) 20.1%

(5.8%) (7.0%) 5.0%

Retailers & DistributorsIndependent Service Providers & DealersCollision

BB&T Automotive Aftermarket Index

S&P 5001 Weighted by market capitalization

Segment Index 1

S&P 500Last Week’s Return

(5.8%)

S&P 500Last Month’s Return

(7.0%)

*Size of the bubble represents relative market capitalizationSource: CapitalIQ

2

Automotive Aftermarket Stock Performance

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

Source: Capital IQ

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0.6%

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

(20%)

(10%)

0%

10%

20%

30%

40%

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

COLLISION

TOTAL AUTOMOTIVE AFTERMARKET

5-Year Average

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

CurrentOne Month AgoOne Year Ago

8.4x 8.4x 8.5x

9.5x

5-Year Average

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x


13.0x 12.7x11.9x

13.1x

0.0x

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4.0x

6.0x

8.0x

10.0x

12.0x

14.0x


11.2x

12.7x12.0x

10.1x

5-Year Average

5-Year Average

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x


14.6x

12.6x12.4x

12.4x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x


10.9x 11.8x 11.5x11.2x

5-Year Average

1 Enterprise Value = Market Capitalization + Debt – Cash; EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization2 Pep Boys is included in both Retailers & Distributors and Independent Service Providers & Dealers3 KAR is included in both Retailers & Distributors and CollisionSource: Capital IQ

Enterprise Value / Last 12 Months’ EBITDA Multiples1,2,3

4

Stock 52 Week Market Price / P / E Forward PEG TEV / Revenue TEV / EBITDATicker Price High / Low Cap TEV TBV LTM CY 2015 CY 2016 CY 2015 CY 2016 LTM CY 2015 CY 2016 LTM CY 2015 CY 2016

SUPPLIERSCooper Tire & Rubber Co. CTB $36.30 $43.94 / $27.24 $2,067 $2,014 2.8x 9.9x 11.6x 11.0x NA NA 0.6x 0.7x 0.7x 3.9x 4.7x 4.6x

Dorman Products, Inc. DORM $48.97 $53.69 / $37.22 1,770 1,703 3.7x 20.2x 18.4x 16.1x 1.0x 0.9x 2.2x 2.1x 1.9x 11.2x 10.4x 9.2x

Federal-Mogul Corp. FDML $9.05 $18.09 / $8.79 1,515 4,298 NM 17.4x 10.5x 9.1x NA NA 0.6x 0.6x 0.5x 7.0x 6.8x 5.9x

Goodyear Tire & Rubber Co. GT $28.99 $32.95 / $18.87 7,888 13,148 2.4x 12.3x 9.4x 8.0x NA NA 0.8x 0.8x 0.8x 5.6x 5.2x 5.0x

Motorcar Parts of America, Inc. MPAA $29.65 $36.62 / $22.12 543 564 2.9x NM 17.2x 13.9x 0.7x 0.6x 1.7x 1.8x 1.5x NM 8.6x 6.9x

Remy International, Inc. REMY $29.25 $29.73 / $16.31 931 1,178 NM 37.1x 17.9x 15.2x 1.3x 1.1x 1.0x 1.0x 1.0x 9.1x 9.8x 8.2x

Snap-on, Inc. SNA $157.68 $170.70 / $111.28 9,361 10,177 7.1x 22.7x 19.6x 17.4x 1.8x 1.6x 2.8x 3.0x 2.8x 12.8x 12.7x 11.5x

Standard Motor Products, Inc. SMP $34.67 $43.72 / $30.30 781 822 2.6x 16.1x 14.8x 12.5x 1.2x 1.0x 0.8x 0.8x 0.8x 7.3x 8.2x NA

Tenneco, Inc. TEN $45.98 $65.33 / $45.98 2,852 3,903 6.2x 12.3x 10.0x 8.6x 0.9x 0.8x 0.5x 0.5x 0.4x 5.3x 5.0x 4.5x

MEAN $3,079 $4,201 4.0X 18.5X 14.4X 12.4X 1.2X 1.0X 1.2X 1.3X 1.2X 7.8X 7.9X 7.0X

MEDIAN $1,770 $2,014 2.9X 16.8X 14.8X 12.5X 1.1X 0.9X 0.8X 0.8X 0.8X 7.1X 8.2X 6.4X

RETAILERS & DISTRIBUTORSAdvance Auto Parts, Inc. AAP $174.76 $192.27 / $128.20 $12,992 $14,331 22.3x 22.1x 21.1x 17.9x 1.5x 1.3x 1.4x 1.5x 1.4x 11.2x 11.0x 9.6x

AutoZone, Inc. AZO $696.01 $754.90 / $491.93 21,639 26,005 NM 20.6x 19.4x 17.2x 1.4x 1.2x 2.6x 2.6x 2.4x 11.9x 11.7x 11.0x

Genuine Parts Company GPC $81.11 $109.00 / $81.11 12,648 13,286 6.8x 17.7x 17.4x 15.9x 1.9x 1.7x 0.9x 0.9x 0.8x 10.4x 10.1x 9.5x

KAR Auction Services, Inc. KAR $36.51 $39.87 / $25.91 5,251 7,887 NM 24.6x 21.0x 18.2x 1.6x 1.4x 3.2x 3.1x 2.9x 12.7x 12.0x 11.1x

O'Reilly Automotive, Inc. ORLY $234.84 $258.15 / $146.22 23,675 24,812 19.5x 28.8x 26.4x 23.2x 1.5x 1.4x 3.3x 3.2x 3.0x 15.4x 14.7x 13.4x

Pep Boys - Manny, Moe & Jack PBY $10.59 $12.62 / $8.00 585 878 1.2x NM NM NM NM NM 0.4x 0.4x 0.4x 11.1x 8.8x NA

U.S. Auto Parts Network, Inc. PRTS $2.05 $3.34 / $1.50 75 89 4.3x NM NM NM NM NM 0.3x 0.3x 0.3x 23.2x 11.6x 8.8x

Uni-Select, Inc.1 UNS $42.75 $45.80 / $20.63 936 965 4.0x 21.0x 17.4x 17.8x 5.8x 5.9x 0.6x 0.7x 0.9x 11.0x 10.4x 10.5x



INDEPENDENT SERVICE PROVIDERS & DEALERSAsbury Automotive Group, Inc. ABG $77.76 $96.58 / $60.63 $2,102 $3,720 8.9x 15.3x 13.8x 12.4x 0.8x 0.8x 0.6x 0.6x 0.5x 11.7x 11.3x 10.5x

AutoNation, Inc. AN $58.01 $67.50 / $46.16 6,681 12,065 12.1x 14.8x 14.0x 12.6x 0.8x 0.7x 0.6x 0.6x 0.5x 12.3x 11.9x 11.0x

CarMax, Inc. KMX $58.24 $75.40 / $43.27 12,395 21,529 3.8x 20.7x 22.4x 19.0x 1.4x 1.2x 1.5x 1.5x 1.4x 19.3x 19.9x 17.4x

Group 1 Automotive, Inc. GPI $85.71 $97.34 / $65.49 2,094 4,686 NM 11.9x 11.9x 10.9x 0.8x 0.8x 0.5x 0.4x 0.4x 11.4x 11.7x 10.9x

Lithia Motors, Inc. LAD $102.60 $122.01 / $63.05 2,757 4,588 6.9x 16.7x 15.1x 13.5x 0.7x 0.6x 0.7x 0.6x 0.5x 14.2x 12.7x 11.5x

Monro Muffler Brake, Inc. MNRO $61.69 $67.93 / $46.93 2,000 2,242 4.1x 31.5x 32.7x 28.7x 1.9x 1.6x 2.5x 2.5x 2.3x 14.8x 15.7x 13.5x

Penske Automotive Group, Inc. PAG $48.34 $54.39 / $36.36 4,419 8,620 NM 14.7x 12.7x 11.5x 1.0x 0.9x 0.5x 0.5x 0.4x 13.1x 13.0x 12.2x

Pep Boys - Manny, Moe & Jack PBY $10.59 $12.62 / $8.00 585 878 1.2x NM NM NM NM NM 0.4x 0.4x 0.4x 11.1x 8.8x NA

Rush Enterprises, Inc. RUSH.B $31.33 $31.64 / $19.58 1,333 2,464 3.6x 25.9x 16.1x 13.9x NA NA 0.7x 0.6x 0.5x 13.1x 14.0x 11.4x

Sonic Automotive, Inc. SAH $21.15 $27.84 / $21.03 1,080 3,217 8.3x 11.2x 11.2x 10.0x 1.0x 0.9x 0.3x 0.3x 0.3x 11.0x 11.3x 10.5x



COLLISIONBoyd Group Income Fund1 BYD.UN $45.40 $49.70 / $27.68 $761 $828 NM 26.1x 27.1x 22.4x NA NA 1.0x 1.0x 0.9x 13.1x 11.6x 10.3x

Copart, Inc. CPRT $34.04 $38.50 / $29.93 4,376 4,363 5.2x 20.0x 21.1x 18.6x 1.6x 1.4x 3.8x 3.8x 3.7x 10.5x 11.0x 10.2x

KAR Auction Services, Inc. KAR $36.51 $39.87 / $25.91 5,251 7,887 NM 24.6x 21.0x 18.2x 1.6x 1.4x 3.2x 3.1x 2.9x 12.7x 12.0x 11.1x

LKQ Corp. LKQ $28.67 $32.25 / $22.90 8,986 10,537 20.5x 22.2x 20.2x 17.7x 1.0x 0.9x 1.5x 1.4x 1.3x 12.8x 12.2x 10.8x

Solera Holdings, Inc. SLH $42.76 $67.39 / $36.14 3,040 5,353 NM 35.4x 13.9x 14.5x 1.2x 1.2x 4.8x 4.7x 4.2x 13.1x 11.7x 11.0x



Valuation MetricsAs of 8/23/2015($ 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 06/30/15 $1,352 $159 $138 $53 23.6% 11.8% 10.2% 3.9% 12.9% (6.6%) 23.3% (1.0%)

Cooper Tire & Rubber Co. CTB 06/30/15 3,155 522 394 230 20.6% 16.6% 12.5% 7.3% (6.6%) 0.1% 9.5% 7.8%

Dorman Products, Inc. DORM 06/27/15 759 152 139 88 38.5% 20.0% 18.3% 11.6% 4.3% 13.2% (0.1%) 17.2%

Federal-Mogul Corp. FDML 06/30/15 7,463 569 232 (192) 13.8% 7.6% 3.1% (2.6%) 6.1% 4.9% (6.6%) 0.4%

Goodyear Tire & Rubber Co. GT 06/30/15 17,209 2,366 1,655 2,706 24.8% 13.7% 9.6% 15.7% (9.0%) (0.5%) 7.4% 9.3%

Motorcar Parts of America, Inc. MPAA 06/30/15 325 38 35 9 27.7% 11.7% 10.9% 2.9% 19.6% 16.6% (6.0%) 7.8%

Remy International, Inc. REMY 06/30/15 1,149 129 59 12 15.9% 11.2% 5.1% 1.0% (3.1%) 2.7% (3.1%) (1.3%)

Snap-on, Inc. SNA 07/04/15 3,572 796 729 450 50.3% 22.3% 20.4% 12.6% 6.3% 7.4% 14.5% 17.9%

Standard Motor Products, Inc. SMP 06/30/15 972 113 96 43 28.9% 11.6% 9.9% 4.4% (1.6%) 4.6% (9.9%) 16.6%

Tenneco, Inc. TEN 06/30/15 8,238 732 542 226 16.9% 8.9% 6.6% 2.7% (1.1%) 8.8% (1.2%) 9.3%

UCI Holdings Limited1 N/A 06/30/15 1,014 99 48 (41) 12.9% 9.8% 4.7% (4.1%) 13.1% 2.1% (2.7%) 13.7%

MEAN $4,110 $516 $370 $326 24.9% 13.2% 10.1% 5.0% 3.7% 4.8% 2.3% 8.9% NA

MEDIAN $1,352 $159 $139 $53 23.6% 11.7% 9.9% 3.9% 4.3% 4.6% (1.2%) 9.3% NA

RETAILERS & DISTRIBUTORSAdvance Auto Parts, Inc. AAP 07/18/15 $9,935 $1,283 $1,005 $505 45.5% 12.9% 10.1% 5.1% 20.5% 11.9% 20.2% 13.5% 0.7%

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 05/09/15 9,947 2,183 1,914 1,133 52.2% 21.9% 19.2% 11.4% 4.5% 6.8% 4.9% 8.5% 2.3%

Genuine Parts Company2 GPC 06/30/15 15,485 1,276 1,130 712 29.8% 8.2% 7.3% 4.6% 5.1% 8.0% 3.1% 9.4% 4.0%

KAR Auction Services, Inc. KAR 06/30/15 2,486 622 419 212 44.1% 25.0% 16.9% 8.5% 10.8% NA 30.2% NA

O'Reilly Automotive, Inc. ORLY 06/30/15 7,578 1,611 1,402 845 51.8% 21.3% 18.5% 11.2% 9.4% 8.3% 17.4% 15.2% 7.2%

Pep Boys - Manny, Moe & Jack3 PBY 05/02/15 2,088 79 5 (17) 23.1% 3.8% 0.3% (0.8%) 0.9% 1.6% (29.9%) (10.1%) 0.6%

U.S. Auto Parts Network, Inc. PRTS 07/04/15 291 4 (5) (6) 27.6% 1.3% (1.6%) (2.0%) 9.4% 7.6% (46.8%) (18.0%)

Uni-Select, Inc.5 UNS 06/30/15 1,713 92 79 (44) NM 5.3% 4.6% (2.6%) (3.9%) 6.0% 5.6% 4.3% 1.1%

MEAN $6,061 $821 $671 $361 36.5% 11.6% 8.6% 3.7% 9.8% 8.6% 3.8% 5.3% 2.7%

MEDIAN $5,031 $622 $419 $212 36.9% 8.2% 7.3% 4.6% 9.4% 7.8% 5.6% 9.0% 1.7%

INDEPENDENT SERVICE PROVIDERS & DEALERSAsbury Automotive Group, Inc. ABG 06/30/15 $6,240 $317 $289 $121 16.3% 5.1% 4.6% 1.9% 11.0% 12.2% 12.8% 19.0%

AutoNation, Inc. AN 06/30/15 20,125 981 865 450 15.7% 4.9% 4.3% 2.2% 10.9% 11.6% 16.7% 13.7%

CarMax, Inc. KMX 05/31/15 14,533 1,116 996 610 15.9% 7.7% 6.9% 4.2% 11.7% 12.9% 14.8% 12.2%

Group 1 Automotive, Inc. GPI 06/30/15 10,325 412 367 127 14.5% 4.0% 3.6% 1.2% 9.9% 15.6% 26.9% 19.7%

Lithia Motors, Inc. LAD 06/30/15 6,877 329 294 168 15.0% 4.8% 4.3% 2.4% 56.5% 29.2% 39.8% 36.4%

Monro Muffler Brake, Inc. MNRO 06/27/15 914 152 115 64 39.7% 16.6% 12.6% 7.0% 8.4% 9.0% 13.1% 11.1% (0.4%)

Penske Automotive Group, Inc. PAG 06/30/15 18,167 617 542 316 15.0% 3.4% 3.0% 1.7% 14.6% 12.6% 15.0% 16.1%

Pep Boys - Manny, Moe & Jack4 PBY 05/02/15 2,088 79 5 (17) 23.1% 3.8% 0.3% (0.8%) 0.9% 1.6% (29.9%) (10.1%) 1.3%

Rush Enterprises, Inc. RUSH.B 06/30/15 5,110 284 154 84 15.6% 5.6% 3.0% 1.7% 28.4% 33.4% 30.2% 34.9%

Sonic Automotive, Inc. SAH 06/30/15 9,367 291 228 80 14.7% 3.1% 2.4% 0.8% 3.5% 7.7% (2.9%) 6.6%

MEAN $9,375 $458 $386 $200 18.6% 5.9% 4.5% 2.2% 15.6% 14.6% 13.6% 16.0% 0.5%

MEDIAN $8,122 $323 $291 $124 15.6% 4.8% 3.9% 1.8% 10.9% 12.4% 14.9% 14.9% 0.5%

COLLISIONBoyd Group Income Fund5 BYD.UN 06/30/15 $816 $67 $49 ($2) 45.9% 8.2% 5.9% (0.2%) 46.0% 36.8% 63.6% 41.4% 5.8%

Copart, Inc.6 CPRT 04/30/15 1,151 416 368 213 43.7% 36.2% 32.0% 18.5% 1.0% 8.5% 19.6% 8.3% 5.6%

KAR Auction Services, Inc. KAR 06/30/15 2,486 622 419 212 44.1% 25.0% 16.9% 8.5% 10.8% NA 30.2% NA

LKQ Corp.7 LKQ 06/30/15 7,017 831 702 399 39.2% 11.8% 10.0% 5.7% 17.9% 25.7% 15.1% 21.3% 7.5%

Solera Holdings, Inc. SLH 03/31/15 1,112 410 257 55 66.4% 36.9% 23.1% 4.9% 18.5% 12.4% 13.4% 10.4%

MEAN $2,516 $469 $359 $175 47.9% 23.6% 17.6% 7.5% 18.9% 20.8% 28.4% 20.3% 6.3%

MEDIAN $1,151 $416 $368 $212 44.1% 25.0% 16.9% 5.7% 17.9% 19.0% 19.6% 15.8% 5.8%

Operating ResultsLast 12 Months as of 8/23/2015($ 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 Same Store Sales reflect Pep Boys’ merchandise business only4 Same Store Sales reflect Pep Boys’ service business only5 Reported results converted at the exchange rate as of the above date6 Same Store Sales reflect Copart’s organic comp growth7 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 33.5 74.6 48.5 59.5 $822 140.5% 5.2x 2.6x 1.3x 0.4x B Stable

Cooper Tire & Rubber Co. CTB 51.9 82.4 46.9 87.4 314 24.9% 0.6x 13.6x 3.0x 1.7x BB- Positive

Dorman Products, Inc. DORM 92.4 149.1 47.9 193.6 0 NA NA NA 5.2x 2.8x NA NA

Federal-Mogul Corp. FDML 74.6 70.1 50.2 94.4 2,919 72.6% 5.1x 0.8x 1.7x 0.9x B- Stable

Goodyear Tire & Rubber Co. GT 55.9 80.0 84.2 51.7 6,103 56.2% 2.6x 3.3x 1.6x 0.9x BB Stable

Motorcar Parts of America, Inc. MPAA 10.4 94.4 88.1 16.7 40 16.8% 1.0x 1.9x 1.0x 0.2x NA NA

Remy International, Inc. REMY 75.0 71.7 72.1 74.6 349 37.8% 2.7x 5.8x 1.9x 1.1x BB- NM

Snap-on, Inc. SNA 63.1 105.1 35.9 132.3 922 28.5% 1.2x 13.7x 2.6x 1.6x A- Stable

Standard Motor Products, Inc. SMP 57.2 150.4 48.3 159.3 53 12.1% 0.5x NM 1.8x 0.6x NA NA

Tenneco, Inc. TEN 57.6 39.3 77.4 19.4 1,230 66.5% 1.7x 4.9x 1.4x 0.8x BB+ Stable

UCI Holdings Limited1 N/A 69.3 84.0 57.8 95.5 716 81.1% 7.2x 1.3x 1.9x 0.7x CCC+ Negative

MEAN 58.3 91.0 59.8 89.5 $1,224 53.7% 2.8X 5.3X 2.1X 1.1X

MEDIAN 57.6 82.4 50.2 87.4 $716 47.0% 2.1X 3.3X 1.8X 0.9X

RETAILERS & DISTRIBUTORSAdvance Auto Parts, Inc. AAP 20.4 275.9 206.3 89.9 $1,454 38.8% 1.1x 14.9x 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 7.4 252.8 265.5 NM 4,533 156.9% 2.1x 11.1x 0.8x 0.1x BBB Stable

Genuine Parts Company GPC 46.2 101.0 87.6 59.6 850 20.7% 0.7x NM 1.5x 0.6x NA NA

KAR Auction Services, Inc. KAR 261.8 NA 150.8 NA 2,840 64.4% 4.6x 6.0x 1.2x 1.1x BB- Stable

O'Reilly Automotive, Inc. ORLY 8.0 251.0 235.4 23.6 1,397 41.5% 0.9x NM 1.0x 0.2x BBB+ Stable

Pep Boys - Manny, Moe & Jack PBY 4.9 149.1 54.6 99.4 335 38.4% 4.2x 1.0x 1.2x 0.1x B Stable

U.S. Auto Parts Network, Inc. PRTS 4.4 70.7 38.3 36.8 18 45.1% 4.6x NM 1.3x 0.2x NA NA

Uni-Select, Inc. UNS 42.1 112.7 83.2 71.6 109 19.9% 1.2x 6.8x 1.6x 0.8x NA NA

MEAN 46.7 162.0 130.7 62.0 $1,484 55.6% 3.0X 6.9X 1.3X 0.4X

MEDIAN 20.4 130.9 87.6 59.6 $1,397 41.5% 2.1X 6.4X 1.3X 0.2X

INDEPENDENT SERVICE PROVIDERS & DEALERSAsbury Automotive Group, Inc. ABG 5.9 60.2 16.7 49.4 $1,620 81.5% 5.1x 4.7x 1.2x 0.2x BB+ Stable

AutoNation, Inc. AN 5.3 64.6 5.4 64.6 5,450 70.5% 5.6x 5.2x 1.0x 0.2x BBB- Stable

CarMax, Inc. KMX 2.5 51.1 12.6 41.0 9,486 74.3% 8.5x NM 2.7x 0.5x NA NA

Group 1 Automotive, Inc. GPI 4.1 65.6 12.0 57.7 2,616 72.3% 6.3x 3.5x 1.0x 0.2x BB+ Stable

Lithia Motors, Inc. LAD 13.2 73.3 4.0 82.5 1,854 71.1% 5.6x 6.8x 1.1x 0.2x NA NA

Monro Muffler Brake, Inc. MNRO NA 86.0 NA NA 250 33.6% 1.6x 12.0x 1.1x 0.0x NA NA

Penske Automotive Group, Inc. PAG 14.2 67.0 10.8 70.5 4,210 70.3% 6.8x 4.2x 1.0x 0.2x BB Stable

Pep Boys - Manny, Moe & Jack PBY 4.9 149.1 54.6 99.4 335 38.4% 4.2x 1.0x 1.2x 0.1x B Stable

Rush Enterprises, Inc. RUSH.B 12.3 82.3 9.3 85.2 1,519 65.3% 5.2x NM 1.1x 0.2x NA NA

Sonic Automotive, Inc. SAH 12.1 62.7 5.0 69.8 2,140 75.7% 7.3x 1.3x 1.1x 0.2x BB Stable

MEAN 8.3 76.2 14.5 68.9 $2,948 65.3% 5.6X 4.9X 1.1X 0.1X

MEDIAN 5.9 66.3 10.8 69.8 $1,997 70.8% 5.6X 4.5X 1.1X 0.1X

COLLISIONBoyd Group Income Fund BYD.UN 20.4 9.0 65.8 NM $124 0.5x 1.9x 6.8x 1.0x 0.8x NA NA

Copart, Inc. CPRT 64.9 5.1 90.0 NM 666 0.4x 1.6x NM 4.2x 3.9x NA NA

KAR Auction Services, Inc. KAR 261.8 NA 150.8 NA 2,840 0.6x 4.6x 6.0x 1.2x 1.1x BB- Stable

LKQ Corp. LKQ 33.2 117.6 33.2 117.6 1,695 0.4x 2.0x 11.1x 3.3x 1.1x BB+ Stable

Solera Holdings, Inc. SLH 48.4 NA 30.8 NA 2,283 0.7x 5.6x 3.1x 1.9x 1.7x BB- Negative

MEAN 85.7 43.9 74.1 117.6 $1,522 52.4% 3.1X 6.8X 2.3X 1.7X

MEDIAN 48.4 9.0 65.8 117.6 $1,695 50.3% 2.0X 6.4X 1.9X 1.1X

Balance Sheet MetricsAs of 8/23/2015($ 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

(2.0%)

(1.0%)

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

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

Gasoline Prices

Average Gasoline Prices Per GallonYe

ar-O

ver-

Year

Cha

nge

in M

iles

Tra

vele

d

Vehicle Miles Traveled

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

2.0% 2.1%

0.6%

4.6%

6.0%

4.0% 4.1%

5.0% 5.1% 5.1%

1.4% 1.3%

0.3%

Retailers and Distributors Independent Service Providers Collision

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

(2.1%) (2.2%)(0.6%) (0.5%)

(3.3%)

0.4%

(2.8%) (2.3%)(0.4%)

2.5%0.6% 0.4%

5.3%6.2%

1.5% 0.6%

9.7%

1.1%3.1%

0.3%

7.0%

1.9% 1.0% 0.4%2.3%

9.0%

6.7%

2.8% 2.1%3.3% 2.9%

1.7%

6.3% 5.6%7.5%

1.7%

7.1%8.3%7.7%

(10.0%)

(5.0%)

0.0%

5.0%

10.0%

15.0%

SAME STORE SALES GROWTH*

*Same Store Sales growth measures revenue growth for stores that have been open for at least one yearRetailers & Distributors include: Advance Auto Parts, AutoZone, GPC (NAPA), O’Reilly Automotive, Uni-Select, and Pep BoysIndependent Service Providers include: Monro Muffler Brake and Pep BoysCollision 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

LKQ Corporation Acquires The Coast Distribution System, Inc.: Chicago, IL-based vehicle parts distributor LKQ Corporation (NasdaqGS:LKQ) announced on August 20, 2015 that it had completed its acquisition of Morgan Hill, CA-based recreational vehicle parts supplier The Coast Distribution System, Inc. (NYSE:CRV) (“Coast”). LKQ acquired the company via a July 9, 2015 tender offer to purchase all outstanding shares of common stock for $5.50 per share. The deal valued Coast at $47 million, or approximately 0.4x trailing twelve months’ revenue and 27.4x trailing twelve months’ EBITDA.

Founded in 1977, Coast is a supplier to recreational vehicle, towing, and outdoor power equipment retailers. The company supplies nearly 14,000 products to more than 12,000 customers in North America. The acquisition expands LKQ’s RV business and presents distribution and logistics synergies with LKQ’s existing network.

Uni-Select Inc. Acquires C.B. Hoare Auto Parts Limited: Boucherville, Quebec-based automotive parts distributor Uni-Select Inc. (TSX:UNS) announced on August 18, 2015 that it had acquired Port Hawkesbury, Nova Scotia-based automotive parts and paint products wholesaler C.B. Hoare Auto Parts Limited (“C.B. Hoare”). Financial terms of the transaction were not disclosed.

A long-time Uni-Select customer, C.B. Hoare is a wholesaler of automotive parts and paint products operating three locations in Nova Scotia. The acquisition is part of Uni-Select’s strategy to build a complementary store network in Canada and establishes the company’s first corporate stores in the Maritime Provinces.

8

Recent Mergers & Acquisitions

Close Date Target Buyer (Sponsor) Transaction Details

Pending 360 Forged, Inc. American Force Wheels Inc. American Force Wheels Inc., a manufacturer of custom wheels, has entered into a definitive agreement to acquire 360 Forged, Inc., a manufacturer of forged wheels based in Miami, Florida.

Pending Affinia Group Holdings Inc. MANN + Hummel Holding GmbH

MANN + Hummel Holding GmbH, a manufactuer 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 Covs Parts Pty Ltd. Genuine Parts Company (NYSE:GPC)

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

Pending Remy International Inc. (NasdaqGS:REMY)

BorgWarner Inc. (NYSE:BWA) BorgWarner Inc. (NYSE:BWA) has entered into a definitive agreement to acquire Remy International, Inc. (NasdaqGS:REMY), a Pendleton, Indiana-based designer, manufacturer, and distributor of rotating electrical components for the automotive aftermarket.

8/20/2015 Coast Distribution Systems Inc. (AMEX:CRV)

LKQ Corporation (NasdaqGS:LKQ)

LKQ Corporation (NasdaqGS:LKQ) has acquired Coast Distribution Systems Inc. (AMEX:CRV), a distributor of replacement parts, supplies, and accessories for recreational vehicles based in Morgan Hill, California.

8/18/2015 C.B. Hoare Auto Parts Limited

Uni-Select Inc. (TSX:UNS) Uni-Select Inc. (TSX:UNS) has acquired C.B. Hoare Auto Parts Limited, a wholesaler of automotive parts and paint products operating three locations in Nova Scotia.

8/18/2015 Ocean County Auto Wreckers, Inc.

Fenix Parts, Inc. (NasdaqGM:FENX)

Fenix Parts, Inc. (NasdaqGM:FENX) has acquired Ocean County Auto Wreckers, Inc., a full-service auto recycling facility based in Bayville, New Jersey.

8/14/2015 Riverdale Body Shop Service King Paint & Body, LLC (The Blackstone Group)

Service King Paint & Body, LLC, a portfolio company of The Blackstone Group, has acquired Riverdale Body Shop, a provider of collision repair services based in Schererville, Indiana.

8/12/2015 Shelby’s Wheel and Tires Raben Tire Co., LLC (Palladium Equity Partners)

Raben Tire Co., LLC, a portfolio company of Palladium Equity Partners, has acquired Shelby’s Wheel and Tires, a tire dealer based in Paducah, Kentucky.

8/11/2015 Lebzelter's Total Car Care Jack Williams Tire Company, Inc. Jack Williams Tire Company, Inc., a tire and auto service provider, has acquired Lebzelter's Total Car Care, an operator of three tire and automotive service locations based in Lancaster, Pennslyvania.

8/10/2015 South Dade Automotive Inc. U.S. AutoForce Inc. U.S. AutoForce Inc., a tire and auto parts wholesaler, has acquired South Dade Automotive, a four warehouse tire distributor based in Miami, Florida.

8/7/2015 Time Distributors, Salt Lake City and Boise Locations

National Performance Warehouse

National Performance Warehouse, a distributor of auto parts, has acquired the Salt Lake City and Boise locations of Time Distributors, a wholesaler of performance and truck accessories.

8/5/2015 Atlantic Automotive Enterprises

CRP Industries Inc. CRP Industries Inc., a provider of automotive parts and industrial products, has acquired Atlantic Automotive Enterprises, a steering systems manufacturer based in Tabor City, North Carolina.

8/5/2015 Somerset Tire Service Inc. Mavis Tire Supply, LLC (ONCAP)

Mavis Tire Supply, LLC, a portfolio company of ONCAP, has acquired Somerset Tire Service Inc., a tire retailer with 157 locations in New Jersey, Pennsylvania, and New York.

8/3/2015 Nestor Sales LLC Essendant Inc. Essendant Inc., a wholesaler of business essentials and office supplies, has entered into a definitive agreement to acquire Nestor Sales, LLC, a Largo, Florida-based distributor of automotive tools and equipment, from Carousel Capital.

8/3/2015 EiKo Global, LLC, Automotive Lighting Business

Old World Industries, LLC Old World Industries, LLC, a developer and manufacturer of automotive and heavy duty products and fluids, has acquired the automotive division of EiKo Global, LLC, a Shawnee, Kansas-based manufacturer and distributor of lamps and lighting solutions for the automotive, industrial, and healthcare industries.

7/27/2015 Tower Motor Parts Bond Auto Parts Bond Auto Parts, an operator of chain auto parts stores, has acquired Towers Motor Parts Corp., a local auto parts retailer based in Massachusetts.

7/24/2015 Prestige Collision Specialist, LLC

ABRA Auto Body & Glass (Hellman & Friedman)

ABRA Auto Body & Glass, a portfolio company of Hellman & Friedman, has acquired Prestige Collision Specialist, LLC, a provider of vehicle collision services based in Decatur, Georgia.

7/24/2015 Coogle Tire Service Raben Holdings, LLC (Palladium Equity Partners)

Raben Holdings, LLC, a portfolio company of Palladium Equity Partners, has acquired the assets of Coogle Tire Service, a single-outlet dealership in Indiana that predominately sells farm equipment.

7/23/2015 Kost Tire & Auto Care Centers

Monro Muffler Brake Inc. (NasdaqGS:MNRO)

Monro Muffler Brake Inc. (NasdaqGS:MNRO), a provider of automotive repair and tire services, has entered into a definitive agreement to acquire 27 Kost Tire & Auto Care Centers in central New York and Pennsylvania.

7/23/2015 Windsor Tire Co. Monro Muffler Brake Inc. (NasdaqGS:MNRO)

Monro Muffler Brake Inc. (NasdaqGS:MNRO), a provider of automotive repair and tire services, has acquired four outlets in Norwood, Massachusetts from Windsor Tire Co., a tire retailer headquartered in Norwood, Massachusetts.

7/20/2015 Downtown Autobody Repair, Inc.

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

Service King Paint & Body, a portfolio company of The Blackstone Group, has acquired Downtown Autobody Repair, Inc., a provider of automotive repair services and roadside assistance based in Alcoa, Tennessee.

7/17/2015 Identifix, Inc. Solera Holdings, Inc. (NYSE:SLH)

Solera Holdings, Inc. (NYSE:SLH) has acquired Identifix, Inc., an auto repair hotline company offering live technical assistance to professional shop owners and technicians based in Saint Paul, Minnesota.

7/15/2015 Vari-Form Holding US Corp. Crowne Group, LLC Crowne Group, LLC has acquired Vari-Form Holding US Corp., a manufacturer of lightweight, hydroformed structural parts for pickup trucks, SUVs, and light vehicles.

7/15/2015 McDonald Auto Body, Inc. Gerber Collision & Glass Inc. (The Boyd Group Inc.)

Gerber Collision & Glass Inc., a subsidiary of The Boyd Group Inc., has acquired McDonald Auto Body, Inc., a provider of collision repair services and refinishing based in Hyattsville, Maryland.

7/14/2015 Marathon Industries, Inc. The Carlstar Group LLC (American Industrial Partners)

The Carlstar Group LLC, a portfolio company of American Industrial Partners, acquired Marathon Industries, Inc., a Franklin, Tennessee manufacturer and distributor of specialty tires, wheels, and belts.

7/10/2015 Kelle Oil Company, Wholesale Tire Division

K&M Tire, Inc. K&M Tire, Inc. has acquired Kelle Oil's Wholesale Tire Business, a distributor of tires in the commercial, passenger, and light truck tire categories based out of Delphos, Ohio.

7/10/2015 Kadel's Auto Body, LLC ABRA Auto Body & Glass (Hellman & Friedman)

ABRA Auto Body & Glass has acquired Kadel's Auto Body, a provider of auto body repair services with locations in Oregon, Washington, and Ohio.

7/9/2015 Coast Distribution Systems Inc. (AMEX:CRV)

LKQ Corporation (NasdaqGS:LKQ)

LKQ Corporation (NasdaqGS:LKQ) has acquired Coast Distribution Systems Inc. (AMEX:CRV), a wholesale supplier of replacement automotive parts based in Morgan Hill, California.

7/8/2015 PartsChannel, Inc. LKQ Corporation (NasdaqGS:LKQ)

LKQ Corporation (NasdaqGS:LKQ) has acquired PartsChannel, Inc., a Dallas, Texas-based aftermarket replacement parts distributor.

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]

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


Audax Group

a portfolio company of









a unit of

a newly-formed affiliate of

$975,000,000

Initial Public OfferingCo-Manager

$110,400,000

Initial Public OfferingCo-Manager

Advisor to the Board

has received an investment from

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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