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 WHAT WE'RE READING LOGISTICS INVESTMENTS U.S. TRANSPORT, MADE WAREHOUSE TO BUILD INTEGRATED JOB OPENINGS COLD SURGE CHAIN The number of job openings at U.S. transportation, warehousing, and utility companies jumped 70.3 percent year-over-year in April, climbing to 269,000 by April 31, the highest point in a decade, according to data released today by the U.S. Bureau of Labor Statistics. The growth in job openings and hiring at transport and logistics operators in the first four months of 2015 indicates confidence that more goods whether imports, exports or domestic, industrial or consumer will be moving across the U.S. this summer and into the holiday season. Journal of Commerce LOGISTICS RETAILERS INVESTING HEAVILY IN OMNI-CHANNEL SELLING A new JDA study reveals an enormous amount of money, energy, and time retailers and consumer goods manufacturers are spending to improve their omnichannel sales capabilities. While this may not be surprising given the current business environment, the JDA report reveals a surprising fact: despite these significant investments, only 16 percent of companies say they can fulfill omnichannel demand profitably today. Supply Chain Digital TRUCKING TRUCKING COMES UP SHORT IN SEARCH FOR YOUNG DRIVERS The trucking industry is beginning to feel the impact of a shortfall of some 35,000 to 40,000 drivers needed to move goods, according to the American Association. Some believe this will grow to as much as 240,000 drivers by Experts say there are many reasons behind the shortage, including more stringent work requirements as safety regulations have expanded and low pay that, despite recent gains, has made the tough working conditions tougher to bear. The Wall Street Journal MARINE SMALL SHIP CAPACITY DECLINE COULD SPARK NEWBUILD SURGE Although the overall capacity of the container ship fleet is growing, the number of smaller capacity ships has declined, which could trigger newbuilding orders in the sector, a senior shipping analyst said. "Since 2009, the size of the fleets of container ships between 1,000 TEUs and 3,000 TEUs of capacity have all experienced a falling trend, said Peter Sand, chief shipping analyst at BIMCO in Denmark. Since early 2013, the decline has increased. Today those fleets are on average 6 percent smaller than just 2 ½ years ago, and the trend is set to continue. Journal of Commerce RAIL 2015 RAIL ROUNDTABLE: BIG INVESTMENT IS PAYING OFF 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) Faced with service issues and declining performance metrics, rail and intermodal providers are keeping investment levels at record highs as they continue to work through the current challenges to get back to prior performance levels. According to the Association of American Railroads, the U.S. freight railroads are set to spend $29 billion on the country s rail network in 2015 and hire roughly 15,000 new employees. Logistics Management AIR AIRLINES' PROFITS IMPROVE BUT NOT IN CARGO Tony Tyler (IATA CEO), commented that for the first time in IATA s records, the industry as a whole is earning its cost of capital [but] cargo remains in the doldrums. Much of the improvement in the sector s profitability was driven by the fall in the price of fuel, with US airlines benefitting most. Transport Intelligence PAGE 1

3 M&A TRANSACTIONS RECENT M&A TRANSACTIONS 1,2 Announced Sector Target Business Description Acquirer 6/19/2015 Logistics Orbis Logistics Operates warehouses in four states and provides final-mile delivery and distribution services in the Midwest and Southeast. Dicom Group, L.P. 6/18/2015 The Kenan Advantage Group, Inc. North America's largest tank truck transporter and logistics provider, delivering fuel, chemicals, industrial gases, and food-grade products. OMERS Private Equity 6/15/2015 Logistics Parcel Pro Inc. Provider of insured shipping and risk management services worldwide. UPS Capital Corporation 6/8/2015 Logistics Service By Air, Inc. Provides transportation and logistics services through its network of exclusive agent and company-owned offices across North America. Radiant Logistics, Inc. 6/8/2015 Logistics RoadOne IntermodaLogistics, LLC Provides full-service intermodal transportation solutions for domestic and international shippers. Tritium Partners 6/1/2015 Logistics Haas Industries, Inc. Provides freight forwarding and logistics services. Lynden International Inc. 6/1/2015 Logistics ABC Fulfillment, LLC Provides e-commerce services, specializing in high volume direct-toconsumer order fulfillment and customer service. TAGG Logistics, LLC 5/25/2015 Hodges Company, L.L.C. Operates as an oilfield carrier and heavy haul transportation company. Aveda and Energy Services Inc. 5/22/2015 Crane Rental Corporation Provides heavy haul, specialized rigging, and crane services in the Southeast United States. Maxim Crane Works, L.P. 5/21/2015 Horizon Tank Lines, Inc. Operates as a bulk chemical hauler in North Carolina. Heniff Systems, LLC 5/8/2015 Logistics Caribbean Shipping Services, Inc. Provides refrigerated freight forwarding services in the Puerto Rico market. American Fast Freight, Inc. 5/6/2015 Logistics Quality Distribution Inc. Operates the largest chemical bulk logistics network in N.A. and provides intermodal tank container and depot services. Apax Partners LLP 5/5/2015 Logistics Borderfree, Inc. Provides cross-border e-commerce solutions, including customs clearance, fulfillment, marketing, and multicurrency pricing. 5/5/2015 Logistics SEKO Worldwide, LLC Provides tech-enabled supply chain solutions, including transportation management, contract logistics, forwarding and warehousing services. 5/4/2015 Logistics Bridge Terminal Transport Provides asset-light drayage services. Inc. Pitney Bowes International Holdings, Inc. Greenbriar Equity Group LLC XPO Logistics, Inc. 5/1/2015 Dakota Trailer Manufacturing, Inc. Manufactures aluminum grain trailers for the agricultural market. Trail King Industries, Inc. 4/28/2015 Logistics Norbert Dentressangle S.A. Provides contract logistics, e-commerce fulfillment, freight brokerage and transportation, and global forwarding services. XPO Logistics, Inc. 4/27/2015 Air WFS Global SAS Provides cargo handling, ground handling, and technical services to airlines and airports globally. Platinum Equity, LLC PAGE 2

4 PUBLIC MARKETS OVERVIEW TEV / LTM EBITDA TEV / 2015E EBITDA 11.5x 11.0x 11.5x 9.0x 9.0x 8.8x 7.4x 6.4x 6.6x 5.6x AVERAGE REVENUE GROWTH ( ) AVERAGE REVENUE GROWTH ( P) 11.5% 8.3% 8.7% 7.5% 7.7% 7.2% 6.4% 5.2% 3.5% (0.2%) AVERAGE EBITDA GROWTH ( ) AVERAGE EBITDA GROWTH ( P) 17.5% 15.4% 13.0% 14.8% 7.5% 14.5% 7.4% 12.2% 6.8% 10.2% PAGE 3

5 STOCK PRICE PERFORMANCE MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH) 1.0% 4.1% (0.3%) 0.2% (0.7%) (8.5%) (2.5%) (8.9%) (3.1%) (16.3%) TRAILING TWELVE MONTHS (Indexed to June 23, 2014) 25% 20% 15% 10% 5% 0% (5%) (10%) (15%) (20%) (25%) 6/23/14 9/23/14 12/23/14 3/23/15 6/23/15 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 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 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 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 Richmond (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 Jun-14 Dec-14 Current E & Logistics Agility Public Warehousing Company KSC $2,494 $2.41 (4.0%) (13.9%) $ % 9.2x 8.5x 9.6x 9.4x 8.8x Air Transport Services Group, Inc. 1, (2.2%) 28.6% % 5.5x 5.2x 5.4x 5.6x 5.3x Atlas Air Worldwide Holdings, Inc. 2, (1.8%) 54.7% % 8.3x 8.4x 7.9x 8.5x 7.4x CH Robinson Worldwide Inc. 10, (0.4%) (0.1%) % 14.2x 15.6x 12.5x 12.9x 11.7x Deutsche Post AG 40, (3.5%) (13.6%) % 9.9x 10.7x 10.5x 9.2x 8.1x DSV A/S 6, (1.3%) 5.3% % 12.2x 12.3x 15.1x 13.8x 13.0x Echo Global Logistics, Inc % 80.4% % 15.2x NM NM NM 13.0x Expeditors International of Washington Inc. 8, % 8.1% % 12.4x 12.2x 12.0x 12.6x 11.1x FedEx Corporation 53, % 17.7% % 7.6x 8.2x 7.5x 8.8x 7.7x Forward Air Corp. 1, % 18.5% % 12.6x 12.4x 14.2x 13.7x 11.1x Hub Group Inc. 1, % (14.3%) % 13.7x 9.8x 11.6x 11.6x 12.6x JB Hunt Transport Services Inc. 11, % 15.1% % 11.6x 12.1x 11.3x 12.0x 10.5x Kuehne + Nagel International AG 15, (3.8%) 2.2% % 13.4x 15.2x 14.9x 15.2x 13.8x Landstar System Inc. 2, % 6.9% % 14.0x 14.5x 11.8x 12.0x 11.0x Panalpina World Transport Holding Ltd. 2, (2.9%) (12.2%) % 18.7x 18.2x 18.2x 18.7x 12.6x Roadrunner Systems, Inc. 1, % (3.6%) % 13.6x 11.7x 11.3x 12.1x 9.6x Ryder System, Inc. 9, (0.9%) 6.9% % 5.8x 5.9x 5.7x 5.8x 5.2x TransForce Inc. 3, (4.9%) (7.0%) % 10.6x 10.7x 9.8x 9.8x 8.1x United Parcel Service, Inc. 97, (0.7%) (1.7%) % 11.2x 13.5x 13.9x 14.2x 10.1x Universal Truckload Services Inc % (8.3%) % 9.2x 9.6x 7.5x 7.6x 7.3x UTi Worldwide Inc. 1, % 0.3% % NM NM NM 19.9x 17.7x World Fuel Services Corp. 3, (2.6%) 4.1% % 12.4x 12.3x 11.8x 12.3x 11.0x XPO Logistics, Inc. 4, (5.5%) 74.0% % NM NM NM NM 11.9x Median (0.7%) 4.1% 91.2% 12.2x 11.9x 11.5x 12.0x 11.0x ArcBest Corporation $844 $34.09 (4.5%) (19.3%) $ % 9.1x 7.9x 5.1x 5.5x 4.4x Celadon Group Inc. 1, (6.7%) 3.0% % 7.9x 8.2x 9.2x 10.3x 8.0x Con-way Inc. 2, (4.1%) (17.8%) % 7.3x 6.4x 5.1x 5.3x 4.7x Covenant Group, Inc (7.6%) 121.7% % 6.0x 9.5x 6.7x 7.5x 5.5x Heartland Express, Inc. 1, (0.0%) (4.0%) % 12.3x 12.4x 8.5x 8.5x 7.2x Knight Inc. 2, (6.3%) 18.2% % 9.8x 12.7x 9.1x 9.9x 7.5x Marten Transport Ltd (3.4%) (2.5%) % 6.5x 6.9x 5.8x 6.1x 4.9x Old Dominion Freight Line Inc. 6, (0.5%) 12.8% % 11.6x 12.7x 9.9x 10.4x 9.0x P.A.M. Services, Inc (1.1%) 107.8% % 6.1x 8.1x 8.5x 9.2x NA Quality Distribution Inc (0.6%) 4.2% % 11.3x 9.2x 11.2x 10.9x 8.9x Saia, Inc. 1, (6.1%) (8.0%) % 8.8x 10.2x 7.2x 7.6x 6.4x Swift Company 4, (4.0%) (7.6%) % 9.2x 10.0x 7.7x 8.1x 7.0x Universal Truckload Services Inc % (8.3%) % 9.2x 9.6x 7.5x 7.6x 7.3x USA Truck Inc % 27.2% % 8.9x 7.7x 5.7x 6.0x 5.5x Werner Enterprises Inc. 2, % 5.1% % 6.5x 7.4x 6.0x 6.3x 5.3x YRC Worldwide Inc. 1, (1.6%) (48.5%) % 12.1x 9.4x 6.0x 7.1x 4.6x Median (2.5%) 0.2% 77.0% 9.0x 9.3x 7.4x 7.6x 6.4x 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 Jun-14 Dec-14 Current E & Logistics Rail and Rail Services American Railcar Industries, Inc. $1,436 $52.71 (4.0%) (23.0%) $ % 8.8x 6.4x 6.2x 7.0x 5.7x Canadian National Railway Company 56, % (3.1%) % 13.3x 12.9x 12.0x 11.5x 11.2x Canadian Pacific Railway Limited 32, (5.2%) (8.1%) % 16.7x 15.4x 13.9x 13.4x 11.8x CSX Corp. 43, (1.7%) 13.1% % 8.9x 9.6x 8.9x 9.1x 8.8x FreightCar America Inc % (8.1%) % NM NM 8.2x 11.6x 5.3x Genesee & Wyoming Inc. 6, (5.7%) (23.5%) % 13.9x 11.7x 10.2x 10.5x 10.0x The Greenbrier Companies, Inc. 1, (13.9%) (9.7%) % 9.6x 6.4x 5.9x 7.9x 4.6x Kansas City Southern 12, % (10.6%) % 14.0x 14.6x 11.7x 11.7x 11.4x Norfolk Southern Corporation 36, (3.4%) (10.7%) % 9.6x 9.3x 8.2x 8.1x 8.6x Trinity Industries Inc. 7, (3.5%) (28.6%) % 8.1x 5.8x 5.6x 5.6x 5.1x Union Pacific Corporation 99, (2.9%) 0.5% % 10.5x 11.4x 9.2x 9.3x 9.1x Westinghouse Air Brake Technologies Corporation 9, (2.1%) 19.8% % 16.2x 15.6x 15.8x 16.6x 14.6x Median (3.1%) (8.9%) 77.2% 10.5x 11.4x 9.0x 9.9x 9.0x Aegean Petroleum Network Inc. $1,301 $13.53 (4.9%) 28.5% $ % 15.2x 14.3x 13.0x 13.3x 10.0x Costamare Inc. 3, % (13.7%) % 12.7x 9.9x 9.9x 9.9x 9.4x Diana Shipping Inc % (30.9%) % NM 17.3x 19.9x 19.0x NM Kirby Corporation 5, (0.4%) (30.4%) % 12.5x 8.5x 8.0x 7.9x 8.8x Matson, Inc. 1, % 71.3% % 7.5x 9.2x 8.2x 9.4x 7.8x Neptune Orient Lines Limited 5, (21.1%) (18.9%) % NM NM 14.0x NM 11.3x Nordic American Tankers Limited 1, % 53.8% % NM NM 17.5x NM 8.8x Rand Logistics, Inc (6.1%) (46.7%) % 10.1x 8.7x 8.0x 8.3x 6.8x SEACOR Holdings Inc. 1, (0.3%) (13.5%) % 10.1x 8.1x 8.5x 7.4x 9.1x Wilh. Wilhelmsen ASA 2, (6.4%) (30.1%) % 19.7x 16.7x 14.9x 16.4x 5.2x Median (0.3%) (16.3%) 83.5% 12.5x 9.6x 11.5x 9.7x 8.8x Accuride Corp. $504 $ % (18.1%) $ % 10.3x 7.5x 6.5x 6.8x 5.5x Dana Holding Corporation 4, (1.1%) (8.5%) % 6.1x 6.3x 5.7x 5.7x 5.4x Gentherm Incorporated 2, % 33.9% % 15.8x 11.5x 15.4x 15.5x 13.8x Spartan Motors Inc % (3.1%) % 15.8x 14.3x 17.5x 17.2x 15.3x Wabash National Corp. 1, (8.7%) (9.3%) % 9.0x 7.7x 6.6x 6.9x 5.6x Median 1.0% (8.5%) 86.8% 10.3x 7.7x 6.6x 6.9x 5.6x 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 $4,613 $4,824 (1.0%) 2.0% $199 $254 $296 $265 $284 $ % 7.2% 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, % 1.8% % 4.4% 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 67,220 70,140 (0.0%) 1.2% 3,384 4,129 5,108 4,424 5,011 5, % 11.6% DSV A/S 7,639 7,937 8,439 7,896 7,755 8, % 1.0% (0.8%) 6.4% Echo Global Logistics, Inc ,173 1,687 2, % 38.8% % 72.6% Expeditors International of Washington Inc. 6,162 5,992 6,080 6,565 7,105 7, % 7.4% (0.6%) 10.8% FedEx Corporation 39,304 42,680 44,287 45,567 47,609 50, % 5.3% 4,506 5,367 5,597 6,033 6,891 7, % 14.4% Forward Air Corp , % 17.6% % 20.7% Hub Group Inc. 2,752 3,124 3,374 3,571 3,673 3, % 4.7% % 2.4% JB Hunt Transport Services Inc. 3,678 4,058 4,527 5,083 6,458 7, % 19.5% ,059 1, % 13.0% Kuehne + Nagel International AG 17,351 18,699 19,290 17,618 22,682 23, % 15.9% 1, , ,096 1,167 (1.7%) 8.8% Landstar System Inc. 2,594 2,735 2,628 3,145 3,377 3, % 7.5% % 9.1% Panalpina World Transport Holding Ltd. 6,954 7,227 7,589 6,752 7,086 7,425 (1.0%) 4.9% (11.9%) 35.9% 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 3,614 3, % 14.8% % 14.6% United Parcel Service, Inc. 53,105 54,127 55,438 58,232 59,700 62, % 3.8% 7,830 3,201 8,868 6,864 9,670 10,371 (4.3%) 22.9% Universal Truckload Services Inc ,037 1,033 1,192 1,169 1, % 1.8% % 6.1% UTi Worldwide Inc. 4,550 4,914 4,608 4,436 4,284 4,157 (0.8%) (3.2%) NM 14.6% World Fuel Services Corp. 34,623 38,945 41,562 43,386 31,998 35, % (10.1%) % 8.7% XPO Logistics, Inc ,357 6,649 10,671 NM NM 3 (25) (20) NM NM Total $276,120 $295,077 $306,963 $308,106 $313,220 $335, % 7.2% $22,746 $20,009 $27,149 $25,368 $30,902 $34, % 14.8% ArcBest Corporation $1,908 $2,066 $2,300 $2,613 $2,761 $2, % 6.2% $82 $70 $104 $155 $193 $ % 19.1% Celadon Group Inc % 27.3% % 22.8% Con-way Inc. 5,290 5,580 5,473 5,806 5,954 6, % 4.1% % 11.4% Covenant Group, Inc % 16.8% % 22.4% Heartland Express, Inc % (1.5%) % 14.5% Knight Inc ,272 1, % 23.9% % 21.7% Marten Transport Ltd % 4.5% % 15.3% Old Dominion Freight Line Inc. 1,904 2,135 2,338 2,788 3,053 3, % 11.0% % 15.0% 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 4,418 4, % 5.5% % 12.9% Universal Truckload Services Inc ,037 1,033 1,192 1,169 1, % 1.8% % 6.1% USA Truck Inc % 3.0% % 10.8% Werner Enterprises Inc. 2,003 2,036 2,029 2,139 2,162 2, % 3.6% % 13.6% YRC Worldwide Inc. 4,869 4,851 4,865 5,069 5,085 5, % 2.5% NM NM Total $25,905 $27,247 $28,030 $30,615 $31,821 $34, % 8.3% $2,536 $2,913 $3,073 $3,532 $4,188 $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 $ % 7.6% $55 $145 $179 $204 $253 $242 NM 8.8% Canadian National Railway Company 8,881 9,952 9,954 10,478 10,316 11, % 2.8% 4,112 4,624 4,568 4,900 5,022 5, % 5.4% Canadian Pacific Railway Limited 4,970 5,568 5,631 5,582 5,673 6, % 5.4% 1,378 1,778 2,190 2,434 2,742 3, % 11.6% CSX Corp. 11,795 11,763 12,026 12,669 12,449 13, % 1.4% 4,446 4,523 4,577 4,764 4,911 5, % 5.4% FreightCar America Inc % 14.1% (8) % NM Genesee & Wyoming Inc ,569 1,639 2,102 2, % 19.9% % 11.1% 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 2,527 2, % 3.7% ,106 1,134 1, % 8.0% Norfolk Southern Corporation 11,172 11,040 11,245 11,624 11,034 11, % 0.1% 4,073 4,036 4,169 4,522 4,244 4, % 0.9% 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 23,509 25, % 5.5% 7,341 8,505 9,223 10,657 10,905 11, % 6.0% 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 $82,364 $87, % 7.5% $23,446 $26,119 $27,987 $31,403 $32,514 $35, % 10.2% Aegean Petroleum Network Inc. $6,965 $7,259 $6,335 $6,662 $4,296 $5,037 (1.5%) (13.0%) $75 $85 $75 $98 $134 $ % 23.4% Costamare Inc % 2.6% % 4.8% Diana Shipping Inc (11.8%) 3.2% (32.9%) (2.2%) Kirby Corporation 1,850 2,113 2,242 2,566 2,268 2, % (3.8%) % (1.5%) Matson, Inc. 1,463 1,560 1,637 1,714 1,849 2, % 10.2% % 18.1% Neptune Orient Lines Limited 9,211 9,512 8,831 8,617 7,033 7,098 (2.2%) (9.2%) (90) NM NM Nordic American Tankers Limited NM NM (21) NM 61.4% Rand Logistics, Inc % 8.3% % 11.0% SEACOR Holdings Inc. 1,032 1,308 1,247 1,319 1,199 1, % 0.1% % 0.6% Wilh. Wilhelmsen ASA ,488 2,571 NM NM NM NM Total $21,661 $22,993 $21,559 $22,303 $20,176 $21, % (0.2%) $1,301 $1,658 $1,627 $2,083 $2,729 $2, % 14.5% Accuride Corp. $805 $795 $643 $705 $750 $755 (4.3%) 3.4% $74 $65 $43 $75 $90 $97 0.2% 13.9% 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% % 16.0% 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 $10,574 $11, % 5.2% $888 $1,008 $981 $1,084 $1,190 $1, % 12.2% PAGE 10

12 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