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. Christopher Williams, 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 TRANSPORTATION & LOGISTICS OVERVIEW HARRIS WILLIAMS & CO. DEAL SPOTLIGHT Harris Williams & Co. advised Marquette Company ( Marquette ), KRG Capital Partners, on its sale to BDT Capital Partners. Marquette is a leading provider of towing services on the inland waterways of the United States. Press Release WHAT WE RE READING Marquette Company LOGISTICS INVESTMENTS MADE TO BUILD INTEGRATED COLD CHAIN The global cold chain is in the midst of rapid expansion. Growing volumes of perishable imports and exports are impacting stakeholders throughout the global cold chain, especially as more refrigerated cargo migrates to the intermodal sector. One of the key takeaways for beneficial cargo owners is that stakeholders view refrigerated cargo as a growing and profitable segment of their business and sizable investments are occurring on multiple fronts to build and strengthen the integrated global cold chain. Journal of Commerce TRUCKING REVENUE FOR U.S. TRUCKING COMPANIES REACHES RECORD A shortage of drivers and persistently low fuel charges are driving greenbacks to the pockets of trucking companies, as the industry reported a record $700.4 billion in revenue in revenue rose 2.6% last year, according to the American Associations American Trends report. The Wall Street Journal MARINE STRONG U.S. DOLLAR AWAKENS NORTH ATLANTIC TRADE Evidence continues to mount that the North Atlantic, for long the sleeping dog of container trades, is waking up, as rising European imports on the back of a strong U.S. dollar lift freight rates and attract new services, according to Drewry Maritime Research. Volumes on the head-haul westbound leg rose 8.4 percent in the first quarter from a year ago, matching the increase recorded through 2014, the London-based consultant said. Journal of Commerce 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) RAIL AMTRAK ORDERED TO IMPROVE SAFETY ALONG NE CORRIDOR The Federal Railroad Administration on Saturday said it ordered Amtrak to take immediate steps to improve safety along its Northeast Corridor between Washington and Boston, including modifying a signal system that safety experts said could have averted the deadly derailment in Philadelphia this week. The Wall Street Journal AIR AIR FREIGHT RESUMES MODEST GROWTH TREND The IATA released data for global air freight markets, showing a modest 1.6% rise in volumes in March compared to a year ago, measured in Freight Tonne Kilometers (FTK). The industry s March performance stands in sharp contrast to the exceptionally strong 12.2% rise reported for February. IATA PAGE 1

3 M&A TRANSACTIONS RECENT M&A TRANSACTIONS 1,2 Date Sector Target Business Description Acquirer Pending Logistics Quality Distribution Inc. Operates the largest chemical bulk logistics network in N.A. and provides intermodal tank container and depot services. Pending Logistics Borderfree, Inc. Provides cross-border e-commerce solutions including, customs clearance, fulfillment, marketing, and multicurrency pricing. Pending Logistics Bridge Terminal Transport, Inc. Provides asset-light drayage services. Apax Partners LLP Pitney Bowes International Holdings, Inc. XPO Logistics, Inc. Pending Logistics Norbert Dentressangle S.A. Provides contract logistics, e-commerce fulfillment, freight brokerage and transportation, and global forwarding services. XPO Logistics, Inc. Pending Air WFS Global SAS Provides cargo handling, ground handling, and technical services to airlines and airports globally. Platinum Equity, LLC Pending B&G Crane Service, LLC Supplier of operated and maintained crane services, specialized rigging, and heavy haul transportation in Louisiana and Texas. NCSG Crane & Heavy Haul Holdings Inc. Pending Logistics Command, LLC Provides truckload brokerage and non-asset based transportation services. Echo Global Logistics, Inc. Pending Baltic Trading Limited Transports iron ore, coal, grain, steel products, and other drybulk cargo along global shipping routes. Genco Shipping & Trading Ltd. Pending Logistics TNT Express N.V. Provides express delivery services in Europe, the Middle East and Africa, Asia-Pacific, and the Americas. FedEx Corporation Pending Logistics Air Medical Group Holdings, Inc. Provides air ambulance services. KKR & Co. Pending Logistics Toll Holdings Limited Provides integrated logistics services in the Asia-Pacific region and internationally. Japan Post Bank Co., Ltd. Pending Logistics APL Logistics Ltd Provides global supply chain and logistics services across all modes of transportation. Kintetsu World Express, Inc. Pending Horizon Lines, Inc. Engages in Jones Act container shipping with primary service to ports within the continental United States, Alaska, Hawaii, and Puerto Rico. Matson Navigation Company, Inc. 5/8/2015 Logistics Caribbean Shipping Services, Inc. Provides refrigerated freight forwarding services in the Puerto Rico market. American Fast Freight, Inc. 5/8/2015 Logistics Transfreight North America Provides third-party logistics and supply chain solutions. Penske Logistics, Inc. 5/5/2015 Logistics SEKO Worldwide, LLC Provides tech-enabled supply chain solutions, including transportation management, contract logistics, forwarding and warehousing services. 5/1/2015 Dakota Trailer Manufactures aluminum grain trailers for the agricultural market. Manufacturing, Inc. Greenbriar Equity Group LLC Trail King Industries, Inc. 3/31/2015 Marquette Company Provides towing services on inland waterways of the United States. BDT Capital Partners, LLC PAGE 2

4 PUBLIC MARKETS OVERVIEW TEV / LTM EBITDA TEV / 2015E EBITDA 11.3x 10.6x 10.9x 9.2x 9.2x 9.0x 7.3x 6.6x 7.2x 6.1x AVERAGE REVENUE GROWTH ( ) AVERAGE REVENUE GROWTH ( P) 11.5% 8.4% 8.7% 8.1% 7.7% 6.9% 6.4% 5.1% 3.5% 1.1% AVERAGE EBITDA GROWTH ( ) AVERAGE EBITDA GROWTH ( P) 17.5% 15.4% 13.0% 15.0% 8.1% 13.6% 7.4% 11.7% 6.8% 11.2% PAGE 3

5 STOCK PRICE PERFORMANCE MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH) 5.7% 11.1% 5.0% 7.4% 1.5% 5.4% (3.6%) 2.5% (4.9%) (7.1%) TRAILING TWELVE MONTHS (Indexed to May 19, 2014) 30% 25% 20% 15% 10% 5% 0% (5%) (10%) (15%) (20%) 5/19/14 8/19/14 11/19/14 2/19/15 5/19/15 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 has experience across a broad range of sectors, including third-party logistics, rail and rail services, marine transportation, transportation equipment, niche transportation, automotive and heavy duty vehicle, and airport and aviation services. RECENTLY CLOSED T&L TRANSACTIONS 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 AIRPORT & AVIATION SERVICES 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 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) Fax: +1 (617) Cleveland 1900 East 9th Street 20th Floor Cleveland, Ohio Phone: +1 (216) Fax: +1 (216) Minneapolis 222 South 9th Street Suite 3350 Minneapolis, Minnesota Phone: +1 (612) Fax: +1 (612) UNITED STATES Philadelphia 1600 Market Street 21st Floor Philadelphia, Pennsylvania Phone: +1 (267) Fax: +1 (267) Richmond (U.S. Headquarters) 1001 Haxall Point 9th Floor Richmond, Virginia Phone: +1 (804) Fax: +1 (804) San Francisco 575 Market Street 31st Floor San Francisco, California 94105, USA Phone: +1 (415) Fax: +1 (415) EUROPE Frankfurt Bockenheimer Landstrasse Frankfurt Germany Phone: Fax: London 63 Brook Street London W1K 4HS, England Phone: +44 (0) Fax: +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 May-14 Nov-14 Current E & Logistics Agility Public Warehousing Company KSC $2,650 $ % (10.0%) $ % 9.4x 9.9x 10.2x 10.0x 9.3x Air Transport Services Group, Inc. 1, % 24.1% % 5.7x 5.0x 5.5x 5.7x 5.4x Atlas Air Worldwide Holdings, Inc. 2, % 59.8% % 8.3x 8.0x 8.1x 8.7x 7.6x CH Robinson Worldwide Inc. 10, (4.6%) 11.1% % 13.2x 14.9x 12.8x 13.2x 12.0x Deutsche Post AG 42, % (11.7%) % 9.8x 9.5x 9.1x 9.6x 8.3x DSV A/S 6, % 7.1% % 12.3x 12.0x 15.5x 14.1x 13.1x Echo Global Logistics, Inc % 67.7% % 14.8x 19.7x NM NM 13.9x Expeditors International of Washington Inc. 8, % 3.7% % 13.0x 12.0x 12.0x 12.6x 11.1x FedEx Corporation 54, % 28.2% % 7.2x 8.2x 8.0x 9.0x 7.8x Forward Air Corp. 1, % 24.6% % 12.0x 12.2x 14.2x 13.7x 11.1x Hub Group Inc. 1, % (4.0%) % 12.3x 9.8x 11.6x 11.7x 12.7x JB Hunt Transport Services Inc. 11, (1.3%) 15.7% % 11.7x 11.6x 11.5x 12.1x 10.6x Kuehne + Nagel International AG 16, (1.2%) 9.7% % 13.3x 14.4x 16.0x 16.4x 14.6x Landstar System Inc. 2, % 2.1% % 13.6x 14.8x 11.2x 11.4x 10.4x Panalpina World Transport Holding Ltd. 2, (4.8%) (7.5%) % 18.7x 18.4x 19.3x 19.8x 13.2x Roadrunner Systems, Inc. 1, % 5.8% % 12.3x 11.6x 10.9x 11.8x 9.4x Ryder System, Inc. 9, % 17.2% % 5.9x 5.9x 5.9x 6.0x 5.4x TransForce Inc. 3, (4.4%) 7.4% % 10.0x 10.9x 10.4x 10.4x 8.5x United Parcel Service, Inc. 98, % 0.6% % 11.1x 12.9x 14.0x 14.4x 10.2x Universal Truckload Services Inc (2.9%) (11.3%) % 9.0x 9.1x 7.1x 7.2x 6.9x UTi Worldwide Inc. 1, % 1.8% % 15.6x NM NM 18.1x 16.1x World Fuel Services Corp. 4, (8.5%) 14.3% % 11.7x 11.5x 12.2x 12.6x 11.3x XPO Logistics, Inc. 3, % 114.7% % NM NM NM NM 13.8x Median 5.0% 7.4% 90.4% 11.9x 11.6x 11.3x 11.8x 10.6x ArcBest Corporation $902 $36.31 (2.3%) (10.1%) $ % 8.7x 7.0x 5.5x 5.8x 4.7x Celadon Group Inc. 1, (6.7%) 15.6% % 8.1x 8.1x 9.1x 10.2x 7.9x Con-way Inc. 2, % (5.1%) % 6.7x 6.2x 5.4x 5.6x 4.9x Covenant Group, Inc (6.6%) 212.2% % 5.3x 7.4x 7.0x 7.9x 5.8x Heartland Express, Inc. 1, (7.4%) 4.1% % 11.6x 11.7x 8.7x 8.7x 7.4x Knight Inc. 2, (4.4%) 33.1% % 9.4x 11.8x 9.9x 10.7x 8.1x Marten Transport Ltd (4.5%) 1.0% % 6.7x 6.8x 6.1x 6.4x 5.2x Old Dominion Freight Line Inc. 6, (0.7%) 17.5% % 11.4x 12.6x 10.1x 10.6x 9.1x P.A.M. Services, Inc (0.6%) 139.2% % 5.4x 7.2x 8.3x 9.1x NA Quality Distribution Inc % 20.0% % 10.6x 9.9x 11.2x 10.9x 9.0x Saia, Inc. 1, % 0.5% % 8.6x 9.8x 7.5x 7.9x 6.6x Swift Company 4, (1.5%) 13.8% % 8.3x 9.2x 8.0x 8.4x 7.3x Universal Truckload Services Inc (2.9%) (11.3%) % 9.0x 9.1x 7.1x 7.2x 6.9x USA Truck Inc (11.4%) 56.1% % 7.8x 6.5x 5.6x 6.0x 5.6x Werner Enterprises Inc. 2, (8.8%) 8.4% % 6.3x 6.8x 6.0x 6.3x 5.3x YRC Worldwide Inc. 1, (7.3%) (28.8%) % 10.9x 9.4x 6.1x 7.3x 4.7x Median (3.6%) 11.1% 82.6% 8.4x 8.6x 7.3x 7.9x 6.6x 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 May-14 Nov-14 Current E & Logistics Rail and Rail Services American Railcar Industries, Inc. $1,536 $ % (6.3%) $ % 7.9x 8.0x 6.7x 7.5x 6.1x Canadian National Railway Company 57, (7.0%) 4.4% % 12.6x 13.5x 12.3x 11.8x 11.1x Canadian Pacific Railway Limited 34, (6.4%) 10.9% % 14.9x 16.4x 14.7x 14.3x 12.1x CSX Corp. 44, % 22.1% % 8.6x 9.7x 9.1x 9.3x 8.9x FreightCar America Inc (15.4%) (0.6%) % NM NM 9.0x 12.7x 5.8x Genesee & Wyoming Inc. 7, (5.7%) (9.4%) % 12.8x 12.7x 12.0x 12.3x 10.9x The Greenbrier Companies, Inc. 2, (1.4%) 22.7% % 10.4x 8.6x 6.6x 9.0x 5.2x Kansas City Southern 12, (9.4%) (8.6%) % 13.7x 14.9x 11.6x 11.6x 11.2x Norfolk Southern Corporation 38, (2.7%) 0.6% % 9.2x 9.7x 8.6x 8.5x 8.9x Trinity Industries Inc. 8, (12.8%) (23.2%) % 7.9x 6.7x 5.6x 5.7x 5.1x Union Pacific Corporation 101, (4.1%) 6.5% % 10.2x 11.4x 9.4x 9.5x 9.0x Westinghouse Air Brake Technologies Corporation 10, % 37.3% % 14.5x 15.9x 16.2x 17.1x 15.0x Median (4.9%) 2.5% 82.9% 10.4x 11.4x 9.2x 10.6x 9.0x Aegean Petroleum Network Inc. $1,325 $ % 59.0% $ % 14.1x 13.4x 12.0x 12.0x 10.1x Costamare Inc. 3, % (6.6%) % 12.2x 10.3x 9.8x 9.9x 9.4x Diana Shipping Inc % (36.4%) % NM 16.9x 18.8x 18.0x NM Kirby Corporation 5, (0.2%) (22.8%) % 11.3x 10.4x 8.3x 8.3x 9.2x Matson, Inc. 1, % 83.6% % 7.2x 9.4x 8.2x 9.5x 8.3x Neptune Orient Lines Limited 6, (6.6%) (0.3%) % NM NM 15.1x NM 11.3x Nordic American Tankers Limited 1, (1.9%) 49.8% % NM NM 15.3x NM 7.7x Rand Logistics, Inc % (43.5%) % 8.9x 9.3x 7.7x 8.4x 7.0x SEACOR Holdings Inc. 1, (3.3%) (7.7%) % 9.8x 8.5x 8.7x 7.6x 9.3x Wilh. Wilhelmsen ASA 2, % (22.9%) % NM 18.4x 16.3x 17.9x 5.7x Median 1.5% (7.1%) 86.5% 10.5x 10.3x 10.9x 9.7x 9.2x Accuride Corp. $499 $3.97 (11.0%) (24.5%) $ % 10.7x 7.8x 6.4x 6.7x 5.5x Dana Holding Corporation 4, % 5.4% % 5.5x 5.6x 6.1x 6.1x 5.8x Gentherm Incorporated 1, % 36.2% % 14.7x 11.9x 14.5x 14.6x 13.0x Spartan Motors Inc (4.8%) (6.7%) % 15.2x 15.0x 16.3x 16.0x 14.2x Wabash National Corp. 1, % 11.2% % 8.4x 6.8x 7.2x 7.5x 6.1x Median 5.7% 5.4% 89.0% 10.7x 7.8x 7.2x 7.5x 6.1x 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 KSC $4,775 $5,039 $4,873 $4,633 $4,632 $4,844 (1.0%) 2.3% $199 $254 $296 $265 $285 $ % 7.4% Air Transport Services Group, Inc (6.9%) 2.8% (0.3%) 5.3% Atlas Air Worldwide Holdings, Inc. 1,384 1,632 1,643 1,785 1,823 1, % 2.1% % 4.3% CH Robinson Worldwide Inc. 10,336 11,359 12,752 13,470 14,270 15, % 6.7% % 8.9% Deutsche Post AG 68,631 73,191 75,621 68,547 68,124 70,518 (0.0%) 1.4% 3,384 4,129 5,108 4,424 5,137 5, % 13.0% DSV A/S 7,639 7,937 8,439 7,896 7,883 8, % 1.7% (0.8%) 7.2% Echo Global Logistics, Inc ,173 1,376 1, % 26.6% % 64.3% Expeditors International of Washington Inc. 6,162 5,992 6,080 6,565 7,111 7, % 7.7% (0.6%) 10.8% FedEx Corporation 39,304 42,680 44,287 45,567 47,627 50, % 5.4% 4,506 5,367 5,597 6,033 6,868 7, % 14.2% Forward Air Corp , % 18.0% % 20.7% Hub Group Inc. 2,752 3,124 3,374 3,571 3,673 3, % 4.8% % 1.7% JB Hunt Transport Services Inc. 3,678 4,058 4,527 5,083 6,465 7, % 19.5% ,060 1, % 12.8% Kuehne + Nagel International AG 17,351 18,699 19,290 17,618 22,948 23, % 16.6% 1, , ,108 1,181 (1.7%) 9.4% Landstar System Inc. 2,594 2,735 2,628 3,145 3,373 3, % 7.3% % 9.2% Panalpina World Transport Holding Ltd. 6,954 7,227 7,589 6,752 7,166 7,509 (1.0%) 5.5% (11.9%) 36.6% Roadrunner Systems, Inc ,073 1,361 1,873 2,144 2, % 10.8% % 17.7% Ryder System, Inc. 6,051 6,257 6,419 6,639 6,707 7, % 3.7% 1,290 1,396 1,459 1,628 1,796 1, % 9.2% TransForce Inc. 2,378 2,822 2,620 2,817 3,663 3, % 15.5% % 15.4% United Parcel Service, Inc. 53,105 54,127 55,438 58,232 59,672 62, % 3.8% 7,830 3,201 8,868 6,864 9,649 10,371 (4.3%) 22.9% Universal Truckload Services Inc ,037 1,033 1,192 1,175 1, % 2.0% % 6.6% UTi Worldwide Inc. 4,550 4,914 4,608 4,436 4,284 4,224 (0.8%) (2.4%) NM 22.8% World Fuel Services Corp. 34,623 38,945 41,562 43,386 31,998 35, % (10.1%) % 8.7% XPO Logistics, Inc ,357 4,043 6,186 NM NM 3 (25) (20) NM NM Total $276,120 $295,077 $306,963 $308,106 $311,752 $331, % 6.9% $22,746 $20,009 $27,149 $25,368 $30,899 $34, % 15.0% ArcBest Corporation $1,908 $2,066 $2,300 $2,613 $2,760 $2, % 6.3% $82 $70 $104 $155 $194 $ % 20.9% Celadon Group Inc % 27.4% % 21.8% Con-way Inc. 5,290 5,580 5,473 5,806 5,963 6, % 4.1% % 11.7% Covenant Group, Inc % 16.8% % 22.4% Heartland Express, Inc % (1.5%) % 14.5% Knight Inc ,272 1, % 23.7% % 21.7% Marten Transport Ltd % 4.5% % 15.3% Old Dominion Freight Line Inc. 1,904 2,135 2,338 2,788 3,066 3, % 11.1% % 15.6% P.A.M. Services, Inc NA NA 3.7% NA NA NA 23.7% NA Quality Distribution Inc ,020 1, % 13.2% % 14.7% Saia, Inc. 1,030 1,099 1,139 1,272 1,251 1, % 2.9% % 15.8% Swift Company 3,779 3,976 4,118 4,299 4,417 4, % 5.4% % 12.9% Universal Truckload Services Inc ,037 1,033 1,192 1,175 1, % 2.0% % 6.6% USA Truck Inc % 3.4% % 8.6% Werner Enterprises Inc. 2,003 2,036 2,029 2,139 2,169 2, % 3.8% % 13.6% YRC Worldwide Inc. 4,869 4,851 4,865 5,069 5,084 5, % 2.4% NM NM Total $25,905 $27,247 $28,030 $30,615 $31,843 $34, % 8.4% $2,536 $2,913 $3,073 $3,532 $4,192 $4, % 15.4% 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 $925 $ % 7.8% $55 $145 $179 $204 $254 $241 NM 8.7% Canadian National Railway Company 8,881 9,952 9,954 10,478 10,661 11, % 4.3% 4,112 4,624 4,568 4,900 5,181 5, % 6.9% Canadian Pacific Railway Limited 4,970 5,568 5,631 5,582 5,853 6, % 6.7% 1,378 1,778 2,190 2,434 2,843 3, % 13.6% CSX Corp. 11,795 11,763 12,026 12,669 12,519 13, % 1.4% 4,446 4,523 4,577 4,764 4,953 5, % 5.4% FreightCar America Inc % 14.1% (8) % NM Genesee & Wyoming Inc ,569 1,639 2,155 2, % 22.5% % 14.3% The Greenbrier Companies, Inc. 1,174 1,736 1,685 2,121 2,636 2, % 14.9% % 40.3% Kansas City Southern 2,098 2,239 2,369 2,577 2,589 2, % 4.0% ,106 1,152 1, % 8.8% Norfolk Southern Corporation 11,172 11,040 11,245 11,624 11,142 11, % 0.5% 4,073 4,036 4,169 4,522 4,358 4, % 2.5% Trinity Industries Inc. 2,938 3,812 4,365 6,170 7,057 6, % 5.7% ,400 1,577 1, % 3.1% Union Pacific Corporation 18,508 19,686 20,684 22,560 24,000 25, % 6.6% 7,341 8,505 9,223 10,657 11,309 12, % 7.2% Westinghouse Air Brake Technologies Corporation 1,968 2,391 2,566 3,044 3,361 3, % 9.1% % 12.0% Total $65,339 $70,451 $73,136 $79,795 $83,674 $88, % 8.1% $23,446 $26,119 $27,987 $31,403 $33,392 $36, % 11.2% Aegean Petroleum Network Inc. $6,965 $7,259 $6,335 $6,662 $5,322 $5,974 (1.5%) (5.3%) $75 $85 $75 $110 $133 $ % 14.1% Costamare Inc % 2.6% % 5.6% Diana Shipping Inc (11.8%) 3.6% (32.9%) (1.6%) Kirby Corporation 1,850 2,113 2,242 2,566 2,265 2, % (4.5%) % (2.0%) Matson, Inc. 1,463 1,560 1,637 1,714 1,815 2, % 9.7% % 15.7% Neptune Orient Lines Limited 9,211 9,512 8,831 8,617 7,072 7,491 (2.2%) (6.8%) (90) NM NM Nordic American Tankers Limited NM NM (21) NM 61.2% Rand Logistics, Inc % 9.7% % 14.9% SEACOR Holdings Inc. 1,032 1,308 1,247 1,319 1,199 1, % 0.1% % 0.6% Wilh. Wilhelmsen ASA ,476 2,582 NM NM NM NM Total $21,661 $22,993 $21,559 $22,304 $21,193 $22, % 1.1% $1,301 $1,658 $1,627 $2,094 $2,725 $2, % 13.6% Accuride Corp. $805 $795 $643 $705 $751 $746 (4.3%) 2.9% $74 $65 $43 $75 $90 $93 0.2% 11.9% Dana Holding Corporation 7,544 7,224 6,769 6,617 6,355 6,700 (4.3%) 0.6% (0.7%) 6.9% Gentherm Incorporated , % 12.5% % 15.9% Spartan Motors Inc % 6.1% (12.6%) NM Wabash National Corp. 1,187 1,462 1,636 1,863 2,025 1, % 3.5% NM 11.9% Total $10,331 $10,506 $10,179 $10,504 $10,575 $11, % 5.1% $888 $1,008 $981 $1,084 $1,190 $1, % 11.7% 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. Christopher Williams, 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