TRANSPORTATION & LOGISTICS

Transcription

1 Harris Williams & Co. Ltd is a private limited company incorporated under English law having its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales under company number Directors: Mr. Ned Valentine, Mr. Paul Poggi and Mr. Thierry Monjauze, authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main, Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, Frankfurt am Main, Germany. Permanent Representative (Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins.

2 WHAT WE RE READING LOGISTICS FIRMS TRY TO MIMIC UBER FOR FREIGHT SHIPMENTS Fledgling companies are advancing the adaptation of Uber s transportation model to arrange freight shipments, a step that experts believe offers a combination of opportunities in several trucking sectors as well as pitfalls. There are major differences between Uber s model and the complex, specialized businessto-business world of trucking. Regulations in the trucking sector serve as the major hurdle to overcome in the new business model. Transport Topics LOGISTICS WAREHOUSE HIRING JUMPED IN OCTOBER Warehousing companies added 5,100 jobs in October, the Labor Department said Friday, the strongest employment growth in the sector since July in a sign of the growing impact of e-commerce in logistics hiring. The expansion in the warehousing and storage jobs, part of a strong national jobs report for October, came as hiring at trucking, railroad and other shipping-related businesses slowed or contracted from September to October. But warehousing and storage businesses have added 18,200 jobs since June, and 46,100 jobs over the past 12 months. Wall Street Journal TRUCKING TRUCKLOAD RATE GROWTH EASES AS FREIGHT DEMAND SLOWS The recent strong growth in rates is slowing as freight demand wanes and capacity loosens, industry statistics show. The trend reflects a freight market characterized in fleets comments about third-quarter earnings with words such as soft and lackluster. The shift also was illustrated last week when the Commerce Department reported gross domestic product rose at just a 1.5% annual pace in the third quarter, far slower than the 3.9% second-quarter rate. Transport Topics MARINE CARRIERS, SHIPPERS TEAM UP TO PREP FOR NEW REGULATIONS Container lines, U.S. shippers and logistics providers are coming together to figure out the best way to prepare for the July 1 start of new global regulations requiring the weighing of containers before they are allowed to be loaded onto a ship. The Agriculture Coalition and the Transpacific Stabilization Agreement have created a working committee to create best practices and respond to concerns regarding the new amendments of the International Convention for the Safety of Life at Sea. Journal of Commerce RAIL US SHIPPERS SHIFTING MORE FREIGHT FROM TRUCK TO RAIL CONTENTS M&A TRANSACTIONS PUBLIC MARKETS OVERVIEW STOCK PRICE PERFORMANCE OUR GROUP CONTACTS UNITED STATES Frank Mountcastle Managing Director fmountcastle@harriswilliams.com +1 (804) Jason Bass Managing Director jbass@harriswilliams.com +1 (804) Joe Conner Managing Director jconner@harriswilliams.com +1 (804) Jeff Burkett Director jburkett@harriswilliams.com +1 (804) Jershon Jones Director jjones@harriswilliams.com +1 (804) Jeff Kidd Vice President jkidd@harriswilliams.com +1 (804) EUROPE Jeffery Perkins Managing Director jperkins@harriswilliams.com +49 (0) For the first time in nearly a year, more U.S. shippers say they are shifting freight from truck to rail than the other way around on improved intermodal service, according to a survey of roughly 600 shippers. Shippers said their expectations for intermodal volume growth through third quarter 2016 were their lowest in more than three years, despite their belief that pricing gains will decelerate. Journal of Commerce AIR AIR FREIGHT MARKETS GROW SLIGHTLY IN SEPTEMBER The International Air Transport Association (IATA) released data for global air freight markets showing very modest growth in September. Measured in Freight Tonne Kilometers, air cargo volumes rose 1.0% compared to the same month a year ago. This is a slight improvement on the August performance when volumes were broadly stable. Overall, however, air cargo volumes remain 1.2% down from their 2014 year-end peak. IATA PAGE 1

3 M&A TRANSACTIONS RECENT M&A TRANSACTIONS 1,2 Announced Sector Target Business Description Acquirer 11/4/2015 Logistics Juno Logistics Provides non-asset based, global third party logistics. Sojitz Logistics Corporation 11/2/2015 Logistics Copper Logistics, Inc. Provides domestic and international asset-light freight forwarding services. Radiant Logistics, Inc. 11/2/2015 Logistics Dunbar Armored, Inc., Global Logistics Operations 10/29/2015 Logistics TransForce Waste Management Segment 10/28/2015 Rail Pacific Imperial Railroad, Inc. Provides armored logistics services and cash management solutions. Provides an extended range of services for residual materials management in the residential, municipal, industrial, commercial, and institutional sectors. Owns and operates shortline and freight railroad in California. Loomis AB GFL Environmental Inc. Conatus Capital Group, Inc. 10/21/2015 Logistics Courier Advisory Group Inc. Provides courier and managed delivery services for pharmacy, medical, retail, optical, and banking industries. R.R. Donnelley Logistics, Inc. 10/20/2015 Logistics Unishippers Global Logistics, LLC Provides non-asset based, third party logistics services to small to midsized businesses. Ridgemont Equity Partners 10/13/2015 Equipment Great Western Leasing & Sales, Inc. Provides full-service, integrated solutions to the flatbed and specialized trailer industy. 10/9/2015 Logistics UTi Worldwide Inc. Operates as a non-asset-based supply chain services and solutions company. Argosy Capital; Argosy Investment Partners V, L.P.; Headhaul Capital DSV A/S 10/7/2015 Air ACP Jets LLC Offers comprehensive aircraft charter and management services. Jetflite International 10/6/2015 Logistics Torrey Pines Provides chauffeured corporate ground transportation services to, Inc. corporate travelers, group managers, and private individuals in San Diego. 10/5/2015 Logistics SMARTLogix, Inc. Provides petroleum management, inventory, and transportation 10/2/2015 Air Total Airport Services, Inc. 9/30/2015 Rail FreightCar Rail Services, logistics solutions for the petroleum logistics business in North America. Provides aviation services to airline carriers and airports in North America. Provide railcar maintenance, fleet management, railroad operations, LLC and FreightCar Short and railcar acquisition services. Line, Inc. 9/22/2015 Rail A.Stucki Company Designs, manufactures, reconditions and supplies railcar dynamic control products for the rail transportation market. Marcou Group, LLC SkyBitz, Inc. CCR USA Airport Management, Inc. ARS Nebraska, LLC Stone Canyon Industries 9/17/2015 Logistics M33 Integrated Solutions, Inc. Provides logistics, supply chain, and transportation management services. Transplace Inc. 9/16/2015 Logistics Pacific Alaska Freightways, Inc. Provides freight transportation services to businesses and consumers in Anchorage, Fairbanks, Kenai, Kodiak, and Southeast Alaska. Span-Alaska, Inc. 9/16/2015 Logistics Theodor Wille Intertrade AG Provides supply chain management services for defense, government, and energy sectors in Switzerland and internationally. ADS, Inc. 9/14/2015 Logistics Global Shippers Association Combines the buying power of shippers to secure and maintain competitive rates from the ship lines. IMC Global Solutions, LLC PAGE 2

4 PUBLIC MARKETS OVERVIEW TEV / LTM EBITDA TEV / 2015E EBITDA 10.5x 10.3x 10.2x 8.2x 8.1x 7.7x 5.7x Equipment 6.2x Equipment 5.3x 5.2x AVERAGE REVENUE GROWTH ( ) AVERAGE REVENUE GROWTH ( P) 11.5% 5.1% Equipment 8.7% 3.9% 7.8% 3.6% 6.4% Equipment 2.1% 3.5% (4.3%) AVERAGE EBITDA GROWTH ( ) AVERAGE EBITDA GROWTH ( P) 18.0% 11.3% 14.2% Logistics Providers 10.2% 7.5% Equipment 8.3% Equipment 7.4% Rail & Rail Services 7.2% 5.5% 6.7% PAGE 3

5 STOCK PRICE PERFORMANCE MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH) 5.0% (4.6%) 2.7% (18.0%) 1.2% Equipment (19.2%) (1.6%) (25.5%) Equipment (6.6%) (28.2%) TRAILING TWELVE MONTHS (Indexed to November 7, 2014) 20% 10% 0% (10%) (20%) (30%) (40%) Nov Feb May Aug Nov Rail and Rail Services Equipment S&P 500 Index PAGE 4

6 OUR GROUP Harris Williams & Co. is a leading advisor to the transportation and logistics M&A market. Our & Logistics Group serves companies in a broad range of attractive niches, including third-party logistics (3PL), truck, rail, marine and air transportation, transportation equipment, and the automotive and heavy duty vehicle market. RECENTLY CLOSED T&L TRANSACTIONS has acquired RCL Services Group in partnership with and has sold and to DEEP EXPERIENCE ACROSS T&L SECTORS THIRD-PARTY LOGISTICS RAIL & RAIL SERVICES MARINE TRANSPORTATION TRANSPORTATION EQUIPMENT NICHE TRANSPORTATION AUTOMOTIVE & HEAVY DUTY VEHICLE AIR TRANSPORTATION PAGE 5

7 OUR FIRM Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities. Our clients benefit from our deep-sector experience, integrated industry intelligence and collaboration across the firm, and our commitment to learning what makes them unique. For more information, visit our website. Aerospace, Defense & Government Services Building Products & Materials Business Services Consumer Energy, Power & Infrastructure Healthcare & Life Sciences Industrials Specialty Distribution Technology, Media & Telecom & Logistics HARRIS WILLIAMS & CO. OFFICE LOCATIONS Boston Two International Place 24th Floor Boston, Massachusetts Phone: +1 (617) Cleveland 1900 East 9th Street 20th Floor Cleveland, Ohio Phone: +1 (216) Minneapolis 222 South 9th Street Suite 3350 Minneapolis, Minnesota Phone: +1 (612) UNITED STATES Richmond (Headquarters) 1001 Haxall Point 9th Floor Richmond, Virginia Phone: +1 (804) San Francisco 575 Market Street 31st Floor San Francisco, California Phone: +1 (415) EUROPE Frankfurt Bockenheimer Landstrasse Frankfurt Germany Phone: London 63 Brook Street London W1K 4HS, England Phone: +44 (0) Beijing Hong Kong Mumbai NETWORK OFFICES New Delhi Shanghai PAGE 6

8 PUBLIC COMPARABLES Stock Performance Stock Price Change from 52-Week TEV / LTM EBITDA as of TEV / EBITDA ($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Nov-14 May-15 Current 2015E 2016P & Logistics Agility Public Warehousing Company K.S.C.P. $1,953 $1.68 (4.4%) (40.3%) $ % 9.9x 10.5x 7.6x 6.9x 6.5x Air Transport Services Group, Inc. $928 $ % 15.0% $ % 5.2x 5.3x 4.8x 4.8x 4.4x Atlas Air Worldwide Holdings, Inc. $2,434 $ % (0.9%) $ % 8.0x 7.9x 6.2x 6.5x 6.5x CH Robinson Worldwide Inc. $10,838 $68.72 (2.1%) (3.8%) $ % 14.7x 13.0x 12.2x 11.8x 11.2x Deutsche Post AG $39,670 $ % (4.6%) $ % 8.4x 11.5x 10.9x 8.7x 7.6x DSV A/S $7,648 $ % 38.7% $ % 11.9x 15.3x 15.4x 14.9x 14.0x Echo Global Logistics, Inc. $904 $ % (11.1%) $ % 19.6x NM NM 13.4x 9.7x Expeditors International of Washington Inc. $8,252 $ % 11.9% $ % 12.1x 12.1x 11.0x 10.7x 10.4x FedEx Corporation $49,568 $ % (5.2%) $ % 7.6x 7.3x 6.9x 7.2x 6.4x Forward Air Corp. $1,519 $ % (0.7%) $ % 11.8x 12.9x 11.2x 11.1x 9.1x Hub Group Inc. $1,365 $ % 4.4% $ % 10.0x 11.1x 9.7x 10.9x 9.5x JB Hunt Transport Services Inc. $9,764 $ % (4.2%) $ % 11.5x 11.3x 9.4x 9.3x 8.5x Kuehne + Nagel International AG $16,110 $ % 6.5% $ % 14.2x 15.7x 15.5x 15.4x 14.9x Landstar System Inc. $2,734 $64.05 (0.8%) (16.5%) $ % 14.9x 11.0x 10.2x 10.2x 9.6x Panalpina World Transport Holding Ltd. $2,432 $ (0.1%) (14.1%) $ % 18.0x 19.3x 17.0x 13.4x 10.7x Roadrunner Systems, Inc. $871 $11.04 (40.6%) (50.7%) $ % 11.6x 10.7x 6.9x 7.1x 6.4x Ryder System, Inc. $9,216 $71.88 (3.0%) (21.4%) $ % 5.8x 5.9x 5.3x 5.1x 4.8x TransForce Inc. $3,157 $18.87 (2.1%) (20.8%) $ % 10.6x 10.4x 8.1x 8.1x 8.0x United Parcel Service, Inc. $101,081 $ % (3.1%) $ % 13.1x 13.8x 12.1x 10.4x 9.7x Universal Truckload Services Inc. $692 $ % (37.3%) $ % 9.1x 7.1x 6.3x 6.4x 6.1x UTi Worldwide Inc. $1,301 $ % (36.6%) $ % NM NM NM NM NM World Fuel Services Corp. $3,481 $ % 2.3% $ % 11.5x 12.2x 11.5x 11.3x 10.3x XPO Logistics, Inc. $6,202 $ % (13.7%) $ % NM NM 19.0x 12.3x 5.0x Median 2.7% (4.6%) 79.4% 11.5x 11.2x 10.2x 10.3x 8.8x ArcBest Corporation $659 $ % (33.8%) $ % 7.0x 5.5x 3.8x 3.8x 3.3x Celadon Group Inc. 1, (9.3%) (30.3%) % 7.9x 9.0x 8.3x 7.5x 5.8x Covenant Group, Inc % 2.1% % 7.4x 7.2x 4.3x 4.4x 4.1x Heartland Express, Inc. 1, (3.4%) (20.2%) % 11.6x 8.6x 8.3x 7.3x 7.1x Knight Inc. 2, % (6.8%) % 11.3x 9.8x 8.4x 7.9x 7.2x Marten Transport Ltd % (15.9%) % 6.5x 6.1x 4.9x 4.6x 4.2x Old Dominion Freight Line Inc. 5, % (12.7%) % 12.2x 10.1x 8.8x 8.6x 7.8x P.A.M. Services, Inc % (3.5%) % 7.2x 8.5x 5.7x NA NA Saia, Inc (23.7%) (52.3%) % 9.6x 7.6x 4.4x 4.5x 4.3x Swift Company 3, % (30.3%) % 9.1x 8.1x 6.3x 6.2x 5.8x Universal Truckload Services Inc % (37.3%) % 9.1x 7.1x 6.3x 6.4x 6.1x USA Truck Inc (3.3%) 8.4% % 6.2x 5.8x 4.4x 4.5x 4.6x Werner Enterprises Inc. 2, % (1.1%) % 6.8x 6.0x 5.7x 5.2x 4.9x YRC Worldwide Inc. 1, % (26.8%) % 9.8x 6.1x 4.8x 4.1x 3.8x Median 5.0% (18.0%) 60.3% 8.5x 7.4x 5.7x 5.2x 4.9x PAGE 7

9 PUBLIC COMPARABLES Stock Performance Stock Price Change from 52-Week TEV / LTM EBITDA as of TEV / EBITDA ($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Nov-14 May-15 Current 2015E 2016P & Logistics Rail and Rail Services American Railcar Industries, Inc. $1,577 $ % (16.5%) $ % 8.0x 6.6x 6.3x 5.8x 6.3x Canadian National Railway Company 54, (1.6%) (14.9%) % 13.2x 12.7x 11.6x 11.2x 10.6x Canadian Pacific Railway Limited 26, (12.4%) (34.8%) % 16.6x 15.3x 11.4x 10.9x 10.0x CSX Corp. 35, (4.6%) (23.6%) % 9.4x 9.2x 7.3x 7.4x 7.1x FreightCar America Inc % (32.0%) % NM 8.7x 3.7x 2.9x 3.2x Genesee & Wyoming Inc. 6, % (28.8%) % 12.5x 12.4x 10.4x 10.3x 9.3x The Greenbrier Companies, Inc. 1, % (38.5%) % 8.3x 6.7x 3.2x 3.2x 3.0x Kansas City Southern 12, (9.4%) (28.9%) % 14.7x 12.3x 11.1x 11.0x 10.2x Norfolk Southern Corporation 33, (1.6%) (29.2%) % 9.4x 8.8x 8.0x 8.2x 7.8x Trinity Industries Inc. 7, % (23.1%) % 6.8x 5.6x 4.8x 4.4x 5.4x Union Pacific Corporation 85, (9.6%) (27.6%) % 11.3x 9.7x 8.2x 8.3x 7.8x Westinghouse Air Brake Technologies Corporation 7, (16.7%) (13.1%) % 16.0x 15.9x 11.8x 11.5x 10.6x Median (1.6%) (28.2%) 70.3% 11.3x 9.5x 8.1x 8.2x 7.8x Aegean Petroleum Network Inc. $1,089 $ % (15.5%) $ % 13.4x 13.0x 11.2x 9.6x 8.3x Costamare Inc. 2, % (33.3%) % 10.7x 9.9x 7.9x 7.3x 7.1x Diana Shipping Inc (12.7%) (23.4%) % 17.1x 17.4x NM NM NM Kirby Corporation 4, % (36.2%) % 10.5x 8.5x 7.5x 7.7x 7.5x Matson, Inc. 2, % 81.6% % 8.1x 8.2x 10.5x 8.8x 8.4x Neptune Orient Lines Limited 4, % 24.2% % NM 16.2x 12.0x 15.2x 9.6x Nordic American Tankers Limited 1, (8.0%) 79.4% % NM 13.6x 11.1x 6.8x 7.2x Rand Logistics, Inc % (59.9%) % 9.6x 8.1x 8.2x 7.0x 7.3x SEACOR Holdings Inc. 1, (12.5%) (27.7%) % 8.8x 8.9x 8.7x 9.8x 7.3x Wilh. Wilhelmsen ASA 1, (1.7%) (34.6%) % 18.0x 15.9x 10.6x 4.3x 4.2x Median 1.2% (25.5%) 71.8% 10.6x 11.4x 10.5x 7.7x 7.3x Equipment Accuride Corp. $407 $2.59 (16.2%) (47.7%) $ % 7.9x 6.4x 5.3x 5.5x 5.0x Dana Holding Corporation 3, (6.6%) (19.2%) % 5.5x 6.1x 4.9x 4.6x 4.8x Gentherm Incorporated 1, % 17.2% % 12.0x 13.9x 11.5x 12.8x 11.5x Spartan Motors Inc (8.7%) (25.3%) % 15.1x 15.0x 17.2x 13.2x 15.4x Wabash National Corp % 21.7% % 6.6x 7.3x 5.0x 6.2x 4.6x Median (6.6%) (19.2%) 72.1% 7.9x 7.3x 5.3x 6.2x 5.0x PAGE 8

10 PUBLIC COMPARABLES Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) E 2016P '11-14 '14-16P E 2016P '11-14 '14-16P & Logistics Agility Public Warehousing Company K.S.C.P. $4,775 $5,039 $4,873 $4,633 $4,592 $4,803 (1.0%) 1.8% $199 $254 $296 $265 $283 $ % 6.9% Air Transport Services Group, Inc (6.9%) 3.4% (0.3%) 8.1% Atlas Air Worldwide Holdings, Inc. 1,384 1,632 1,643 1,785 1,847 1, % 2.7% % 4.3% CH Robinson Worldwide Inc. 10,336 11,359 12,752 13,470 13,580 14, % 3.5% % 10.1% Deutsche Post AG 68,631 73,191 75,621 68,547 65,243 68,008 (0.0%) (0.4%) 3,384 4,129 5,116 4,469 4,625 5, % 8.2% DSV A/S 7,639 7,937 8,439 7,896 7,396 7, % (1.2%) (0.8%) 5.9% Echo Global Logistics, Inc ,173 1,528 1, % 28.9% % 58.8% Expeditors International of Washington Inc. 6,162 5,992 6,080 6,565 6,735 7, % 3.4% (0.6%) 11.0% FedEx Corporation 39,304 42,680 44,287 45,567 47,609 50, % 4.9% 4,506 5,367 6,112 6,417 6,891 7, % 9.6% Forward Air Corp , % 15.4% % 15.0% Hub Group Inc. 2,752 3,124 3,374 3,571 3,542 3, % 2.0% % 2.8% JB Hunt Transport Services Inc. 3,678 4,058 4,527 5,083 6,196 6, % 15.5% ,057 1, % 11.7% Kuehne + Nagel International AG 17,351 18,699 19,290 17,618 20,186 21, % 10.4% 1, , ,040 1,087 (1.7%) 5.0% Landstar System Inc. 2,594 2,735 2,628 3,145 3,315 3, % 4.4% % 6.8% Panalpina World Transport Holding Ltd. 6,954 7,227 7,589 6,752 6,107 6,436 (1.0%) (2.4%) (11.9%) 21.7% Roadrunner Systems, Inc ,073 1,361 1,873 2,004 2, % 4.5% % 7.6% Ryder System, Inc. 6,051 6,257 6,419 6,639 6,581 6, % 2.1% 1,290 1,396 1,459 1,628 1,799 1, % 8.4% TransForce Inc. 2,378 2,822 2,620 2,817 3,227 3, % 7.8% % 6.6% United Parcel Service, Inc. 53,105 54,127 55,438 58,232 58,602 61, % 2.9% 7,830 3,201 8,868 6,864 9,757 10,421 (4.3%) 23.2% Universal Truckload Services Inc ,037 1,033 1,192 1,121 1, % (1.6%) % (1.9%) UTi Worldwide Inc. 4,550 4,914 4,608 4,436 4,284 3,807 (0.8%) (7.4%) (22.9%) (10.6%) World Fuel Services Corp. 34,623 38,945 41,562 43,386 31,516 31, % (14.5%) % 4.8% XPO Logistics, Inc ,357 7,446 15,165 NM NM 3 (25) (20) ,257 NM NM Total $276,120 $295,078 $306,963 $308,106 $304,205 $325, % 3.9% $22,746 $20,009 $27,672 $25,797 $30,547 $33, % 10.2% ArcBest Corporation $1,908 $2,066 $2,300 $2,613 $2,670 $2, % 3.4% $82 $70 $104 $155 $174 $ % 12.0% Celadon Group Inc , % 32.5% % 32.5% Covenant Group, Inc % 13.2% % 21.2% Heartland Express, Inc % (6.6%) % 5.9% Knight Inc ,208 1, % 18.5% % 16.8% Marten Transport Ltd % 4.3% % 12.6% Old Dominion Freight Line Inc. 1,904 2,135 2,338 2,788 2,986 3, % 7.3% % 12.1% P.A.M. Services, Inc NA NA 3.7% NA NA NA 23.7% NA Saia, Inc. 1,030 1,099 1,139 1,272 1,227 1, % (1.3%) % 1.5% Swift Company 3,779 3,976 4,118 4,299 4,255 4, % 1.6% % 7.8% Universal Truckload Services Inc ,037 1,033 1,192 1,121 1, % (1.6%) % (1.9%) USA Truck Inc % (5.2%) % 1.2% Werner Enterprises Inc. 2,003 2,036 2,029 2,139 2,111 2, % 1.8% % 14.3% YRC Worldwide Inc. 4,869 4,851 4,865 5,069 4,833 4, % (1.4%) NM NM Total $19,987 $20,948 $21,752 $23,955 $23,937 $25, % 5.1% $2,080 $2,415 $2,567 $2,962 $3,452 $3, % 11.3% PAGE 9

11 PUBLIC COMPARABLES Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) E 2016P '11-14 '14-16P E 2016P '11-14 '14-16P & Logistics Rail and Rail Services American Railcar Industries, Inc. $519 $712 $751 $733 $853 $ % 6.0% $55 $145 $179 $204 $270 $250 NM 10.7% Canadian National Railway Company 8,881 9,952 9,954 10,478 9,536 9, % (2.4%) 4,112 4,624 4,568 4,900 4,843 5, % 2.3% Canadian Pacific Railway Limited 4,970 5,568 5,631 5,582 5,101 5, % (2.3%) 1,378 1,778 2,190 2,434 2,459 2, % 4.7% CSX Corp. 11,795 11,763 12,026 12,669 11,934 12, % (2.5%) 4,446 4,523 4,577 4,764 4,845 4, % 2.3% FreightCar America Inc % 10.5% (8) NM NM Genesee & Wyoming Inc ,569 1,639 2,008 2, % 16.3% % 6.5% The Greenbrier Companies, Inc. 1,174 1,736 1,685 2,121 2,652 2, % 14.6% % 40.2% Kansas City Southern 2,098 2,239 2,369 2,577 2,445 2, % (0.4%) ,106 1,089 1, % 3.7% Norfolk Southern Corporation 11,172 11,040 11,245 11,624 10,629 10, % (3.5%) 4,082 4,046 4,179 4,531 4,053 4, % (2.9%) Trinity Industries Inc. 2,938 3,812 4,365 6,170 6,452 5, % (2.0%) ,400 1,644 1, % (0.7%) Union Pacific Corporation 18,508 19,686 20,684 22,560 22,186 22, % 0.7% 7,341 8,505 9,223 10,657 10,297 11, % 1.7% Westinghouse Air Brake Technologies Corporation 1,968 2,391 2,566 3,044 3,318 3, % 7.6% % 10.4% Total $65,339 $70,451 $73,136 $79,795 $77,926 $79, % 3.6% $23,455 $26,129 $27,997 $31,412 $31,254 $32, % 7.2% Aegean Petroleum Network Inc. $6,965 $7,259 $6,335 $6,662 $4,470 $4,604 (1.5%) (16.9%) $75 $85 $75 $98 $115 $ % 17.6% Costamare Inc % 2.5% % 6.1% Diana Shipping Inc (11.8%) (0.4%) (32.9%) (19.5%) Kirby Corporation 1,850 2,113 2,242 2,566 2,184 2, % (8.0%) % (4.7%) Matson, Inc. 1,463 1,560 1,637 1,714 1,907 2, % 10.1% % 27.5% Neptune Orient Lines Limited 9,211 9,512 8,831 8,617 6,041 5,764 (2.2%) (18.2%) (90) NM 23.7% Nordic American Tankers Limited NM NM (21) NM NM Rand Logistics, Inc % 5.0% % 7.6% SEACOR Holdings Inc. 1,032 1,308 1,247 1,319 1,074 1, % (8.6%) % (5.0%) Wilh. Wilhelmsen ASA ,402 2,513 NM NM NM NM Total $21,661 $22,993 $21,559 $22,303 $19,179 $19, % (4.3%) $1,299 $1,658 $1,624 $2,080 $2,534 $2, % 6.7% Equipment Accuride Corp. $805 $795 $643 $705 $688 $693 (4.3%) (0.9%) $74 $65 $43 $75 $82 $89 0.2% 9.0% Dana Holding Corporation 7,544 7,224 6,769 6,617 6,052 6,110 (4.3%) (3.9%) (0.7%) (0.7%) Gentherm Incorporated % 8.0% % 11.1% Spartan Motors Inc % 4.5% (12.6%) 7.5% Wabash National Corp. 1,187 1,462 1,636 1,863 1,990 1, % 2.6% NM 14.3% Total $10,331 $10,506 $10,179 $10,504 $10,126 $10, % 2.1% $888 $1,008 $981 $1,084 $1,128 $1, % 8.3% PAGE 10

12 TRANSPORTATION & LOGISTICS SOURCES 1. Capital IQ. 2. MergerMarket. DISCLOSURES Harris Williams & Co. ( and is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services. Harris Williams & Co. Ltd is a private limited company incorporated under English law having its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales under company number Directors: Mr. Ned Valentine, Mr. Paul Poggi and Mr. Thierry Monjauze, authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main, Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, Frankfurt am Main, Germany. Permanent Representative (Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins. The information and views contained in this report were prepared by Harris Williams & Co. ( Harris Williams ). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams judgment and are subject to change without notice. The financial instruments discussed in this report may not be suitable for all investors, and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams prior written consent. Copyright 2015 Harris Williams & Co., all rights reserved. PAGE 11