Industry Observations June 30, Transportation & Logistics Industry

Transcription

1 Industry Observations June 30, 2017 Transportation & Logistics Industry

2 Select Transportation & Logistics Public Company Industry Data (USD in millions, except per share data) Company Name Ticker Price at 06/30/17 % of 52 Week High Market Data LTM Operating Data Forward Estimates Equity Value Enterprise Value Debt / Total Capital Total Assets LTM Revenue LTM CY 2017 Revenue Estimate CY 2017 Estimate Transportation - Less Than Truckload ArcBest Corporation ARCB $ % $ $ % $ 1,244.5 $ 2,729.9 $ $2, $ Old Dominion Freight Line, Inc. ODFL $ % $ 7,851.8 $ 7, % $ 2,745.0 $ 3,037.9 $ $3, $ Saia, Inc. SAIA $ % $ 1,293.0 $ 1, % $ $ 1,245.6 $ $1, $ YRC Worldwide Inc. YRCW $ % $ $ 1, % $ 1,727.9 $ 4,747.8 $ $4, $ Transportation - Long-Haul / Truckload Covenant Transportation Group, Inc. CVTI $ % $ $ % $ $ $ 99.0 $ $ J.B. Hunt Transport Services, Inc. JBHT $ % $ 10,050.3 $ 10, % $ 3,770.4 $ 6,655.9 $ 1,067.9 $7, $1, Knight Transportation, KNX $ % $ 2,979.6 $ 2,936.8 N/A $ 1,069.8 $ 1,117.1 $ $1, $ Inc. Swift Transportation SWFT $ % $ 3,531.9 $ 4, % $ 2,637.2 $ 4,027.5 $ $4, $ Company Werner Enterprises, Inc. WERN $ % $ 2,119.7 $ 2, % $ 1,745.7 $ 2,027.4 $ $2, $ Transportation - Other FedEx Corporation FDX $ % $ 58,108.6 $ 69, % $48,552.0 $60,319.0 $ 8,275.0 $61, $8, United Parcel Service, Inc. UPS $ % $ 95,965.9 $109, % $38,380.0 $61,803.0 $ 7,662.0 $64, $10, Logistics - Asset Light Transportation C.H. Robinson Worldwide, Inc. CHRW $ % $ 9,676.2 $ 10, % $ 3,775.7 $13,485.6 $ $14, $ Expeditors International EXPD $ % $ 10,175.7 $ 9, % $ 2,902.7 $ 6,224.7 $ $6, $ of Washington, Inc. Hub Group, Inc. HUBG $ % $ 1,309.4 $ 1, % $ 1,334.9 $ 3,660.4 $ $3, $ XPO Logistics, Inc. XPO $ % $ 7,219.5 $ 12, % $11,688.3 $14,613.2 $ 1,178.0 $14, $1, Notes: LTM (latest twelve months); Enterprise Value (market capitalization less total cash and short-term investments plus short-term borrowings and total long-term debt); (earnings before interest, taxes, depreciation and amortization) Source: Capital IQ The material contained in this publication is meant to provide general information regarding valuation topics. This publication does not constitute investment advice with respect to the securities of any company discussed herein, is not intended to provide information upon which to base an investment decision, and should not be construed as such. Professional advice should be obtained before taking any action based on the information contained herein. Publicly available information utilized in this publication has been obtained from sources deemed to be reliable. Houlihan does not guarantee the accuracy or completeness of the information provided within this publication. The material presented reflects information known to the authors at the time this publication was written and this information is subject to change. Houlihan Capital 2

3 Select Transportation & Logistics Public Company Valuation Metrics (USD in millions, except per share data) Company Name Ticker Return On Assets Return On Equity LTM Operating Statistics Return On Revenue Capital Growth Growth Margin TEV/ LTM Revenue Trading Multiples TEV/ TEV/ CY 2017 LTM Revenue TEV/ CY 2017 Transportation - Less Than Truckload ArcBest Corporation ARCB 1.9% 3.0% 2.9% 2.0% -13.4% 5.0% 0.2x 0.2x 4.6x 4.1x Old Dominion Freight ODFL 11.7% 16.7% 16.1% 1.8% 3.3% 22.6% 2.6x 2.4x 11.5x 10.6x Line, Inc. Saia, Inc. SAIA 5.7% 10.5% 8.2% 2.2% 2.9% 12.7% 1.2x 1.1x 9.2x 8.3x YRC Worldwide Inc. YRCW 3.4% N/A 9.9% -0.4% -5.4% 5.3% 0.2x 0.2x 4.7x 3.9x Mean 5.7% 10.0% 9.3% 1.4% -3.1% 11.4% 1.1x 1.0x 7.5x 6.7x Median 4.5% 10.5% 9.0% 1.9% -1.2% 9.0% 0.7x 0.7x 6.9x 6.2x Transportation - Long-Haul / Truckload Covenant CVTI 2.7% 5.6% 3.8% -5.7% -23.4% 14.7% 0.8x 0.8x 5.2x 4.9x Transportation Group, J.B. Hunt Transport JBHT 11.8% 32.7% 19.2% 6.1% -0.7% 16.0% 1.7x 1.6x 10.3x 10.3x Services, Inc. Knight Transportation, KNX 7.4% 11.3% 9.9% -4.1% -10.7% 22.1% 2.6x 2.6x 11.9x 11.7x Inc. Swift Transportation SWFT 5.0% 19.0% 7.5% -3.7% -15.6% 12.5% 1.1x 1.1x 8.9x 8.8x Company Werner Enterprises, Inc. WERN 3.9% 7.7% 6.1% -2.6% -15.4% 15.7% 1.1x 1.1x 7.0x 6.2x Mean 6.2% 15.3% 9.3% -2.0% -13.1% 16.2% 1.5x 1.4x 8.7x 8.4x Median 5.0% 11.3% 7.5% -3.7% -15.4% 15.7% 1.1x 1.1x 8.9x 8.8x Transportation - Other FedEx Corporation FDX 7.0% 20.1% 11.3% 19.8% 9.9% 13.7% 1.1x 1.1x 8.3x 7.8x United Parcel Service, Inc. UPS 8.8% 227.5% 19.0% 5.1% -23.1% 12.4% 1.8x 1.7x 14.3x 10.4x Mean 7.9% 123.8% 15.1% 12.4% -6.6% 13.1% 1.5x 1.4x 11.3x 9.1x Median 7.9% 123.8% 15.1% 12.4% -6.6% 13.1% 1.5x 1.4x 11.3x 9.1x Logistics - Asset Light Transportation C.H. Robinson CHRW 14.7% 41.2% 21.7% 1.8% -4.9% 6.6% 0.8x 0.7x 12.1x 12.7x Worldwide, Inc. Expeditors International EXPD 14.9% 23.0% 22.2% -2.1% -5.1% 11.4% 1.4x 1.4x 12.7x 12.6x of Washington, Inc. Hub Group, Inc. HUBG 5.4% 10.7% 9.0% 4.7% -3.8% 4.4% 0.4x 0.3x 8.2x 9.1x XPO Logistics, Inc. XPO 2.8% 4.2% 4.0% 39.6% 121.5% 8.1% 0.8x 0.8x 10.4x 9.0x Mean 9.5% 19.7% 14.2% 11.0% 26.9% 7.6% 0.9x 0.8x 10.8x 10.9x Median 10.1% 16.8% 15.4% 3.3% -4.4% 7.3% 0.8x 0.8x 11.2x 10.9x Notes: LTM (latest twelve months); NTM (next twelve months); (earnings before interest, taxes, depreciation and amortization); TEV (total enterprise value) Source: Capital IQ Houlihan Capital 3

4 Transportation & Logistics Public Company LTM Equity Performance 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 10.00% Transportation Less Than Truckload Transportation Other Dow Jones Industrial Average Transportation Long Haul / Truckload Logistics Asset Light Transportation S&P 500 Index Note: The indices are derived from the equity performance of the previously listed companies. Source: Capital IQ Houlihan Capital 4

5 Recent M&A Activity in the Transportation & Logistics Industry July 1, 2016 to June 30, 2017 (USD in millions) Close Date Target Acquirer Target Company Primary Industry Implied Enterprise Value 12/14/2016 Virgin America Inc. Alaska Air Group, Inc. Airlines $2, /30/2017 Aerostar Airport Holdings, LLC Grupo Aeroportuario del Sureste, S. A. B. de C. V.; Public Airport Services $ /27/2016 Transportation Resources, Inc. TransForce Inc. (nka:tfi International Inc.) Trucking $ /10/2017 The Northwest Parkway LLC HICL Infrastructure Company Limited; InfraRed Capital Highways and Railtracks $ /9/2017 Caito Food Service, Inc. and Blue Ribbon Transport, Inc. SpartanNash Company Trucking $ /1/2017 Aircraft Service International Group, Inc. Menzies Aviation plc; Menzies Aviation Inc. Airport Services $ /4/2016 Span-Alaska Transportation, Inc. Matson Logistics, Inc. Trucking $ /1/2017 Total Terminals International, LLC Terminal Investment Limited (Netherlands) B.V Marine Ports and Services $ /1/2016 Providence and Worcester Railroad Company Genesee & Wyoming Inc. Railroads $ /30/2016 Golden State Overnight Delivery Service Inc. General Logistics Systems B.V. Air Freight and Logistics $ /9/2016 Chariot Transit Inc. Ford Smart Mobility LLC Trucking $ /26/2016 Storey Park Perseus Realty, LLC; W-G Capital, LLC Trucking $ /31/2016 Express Tow & Salvage, LLC And CASH 1, LLC Moneyline 2027 (pty) Limited Highways and Railtracks $ /2/2017 United Road Towing, Inc. Medley Capital Corporation; MCC Advisors LLC Highways and Railtracks $ /31/2016 Protection Services Inc. RoadSafe Traffic Systems, Inc. Highways and Railtracks $ /31/2016 Canadian Pacific Railway Limited, Obico Rail Yard N/A Railroads $ /3/2017 Flyte Tyme Worldwide Transportation Addison Lee Limited Trucking $ /18/ Companies Central States Trucking Co. Trucking $ /18/2017 Specialty Business Assets J Line Corporation Marine $ /29/2016 Triumph Transport, Inc. and Triumph Repair Service, Inc. Central States Trucking Co. Trucking $ /31/2016 Southport Marina Preston Development Company Marine Ports and Services $5.25 1/31/2017 Palmdeal Shipping Inc. and Mondalva Shipping Inc. Interocean Transportation Inc. Marine $4.40 6/16/2017 Owen Logistics, LLC AlumiFuel Power Corporation Trucking $0.08 6/16/2017 Worthington Logistics Solutions, Inc. GlobalTranz Enterprises, Inc. Air Freight and Logistics NA 6/15/2017 C. U. Leasing Corp. Westlake Services, LLC Trucking NA 6/14/2017 Birnie Bus Service, Inc. Krapf Bus Companies, Inc. Trucking NA 6/1/2017 Dedicated Logistics Technologies, Inc Radiant Logistics, Inc. Air Freight and Logistics NA 5/31/2017 Two GP Postal Store Franchises Turbo Retail Management, Inc. Air Freight and Logistics NA 5/31/2017 Atlantic Western Transportation Inc. Genesee & Wyoming Inc. Railroads NA 5/30/2017 First Corporate Sedans, Inc. Elite Limousine Plus, Inc. Trucking NA 5/24/2017 Diversified Distribution Systems, LLC Bunzl plc Air Freight and Logistics NA 5/17/2017 Dependable Auto Shippers, Inc. CarsArrive Network, Inc. Trucking NA 5/16/2017 Dulles Greenway, VA Macquarie Atlas Roads Group Highways and Railtracks NA 5/12/2017 Logistics Planning Services, Inc. GlobalTranz Enterprises, Inc. Air Freight and Logistics NA 5/9/2017 EXTRA Express Cerritos, Inc. St. George Trucking & Warehouse Inc Trucking NA 5/3/2017 Aviators Anonymous, Inc. Hawthorne Global Aviation Services, LLC Airport Services NA 5/2/2017 GAT Airline Ground Support, Inc. Atlantic Street Capital Management, LLC Airport Services NA 4/24/2017 Masterpiece International Limited Magnate Worldwide, LLC Air Freight and Logistics NA 4/20/2017 Turbo Retail Management, Inc. Turbo Global Partners, Inc. Air Freight and Logistics NA 4/4/2017 Settoon Towing LLC, Marine Assets Savage Inland Marine, LLC Marine NA 4/3/2017 Crown Moving Co., Inc. Bekins Moving & Storage Co. Trucking NA 3/31/2017 Seaward Marine Services, LLC and Accurate Marine MHI Holdings, LLC Marine Ports and Services NA 3/28/2017 Premium Transportation Logistics LLC Magnate Worldwide, LLC Air Freight and Logistics NA 3/24/2017 Worldnet International, London, Paris and Los Angeles N/A Air Freight and Logistics NA 3/17/2017 Graebel Vanlines Holdings, LLC, Facilities in Florida, Suddath Van Lines, Inc. Trucking NA 3/16/2017 Western Co-op Transport Association CHS, Inc. Trucking NA 3/9/2017 Argo Turboserve Corporation, Industrial Division AgileX SC LLC Air Freight and Logistics NA 3/7/2017 American Red Ball Transit Company, Inc. Interstate Group Holdings, Inc. Trucking NA 3/6/2017 Simplified Logistics LLC CI Capital Partners LLC Air Freight and Logistics NA 3/1/2017 Tempus Jets, Inc. Jackson River Aviation, LLC Airlines NA 2/23/2017 Cargo Chief, Inc., Logistics and Transportation Services Genpro, Inc. Air Freight and Logistics NA 2/15/2017 Celtic Transport Logistics, LLC Blue Lakes By The Bay, LLC Trucking NA 2/8/2017 PPS Business Corporation Pitney Bowes Inc. Air Freight and Logistics NA 2/3/2017 Login Logistics LLC Epes Logistics Services, Inc. Air Freight and Logistics NA 2/2/2017 Fusion Logistics Worldwide Express Operations, LLC Trucking NA 1/31/2017 American Cargo Express, Inc. OIA Global Logistics International Inc. Air Freight and Logistics NA 1/25/2017 Groundlink Holdings LLC Marcou Transportation Group, LLC Trucking NA Source: Capital IQ Houlihan Capital 5

6 S&P Capital IQ - Sector Last 3 Month Equity Performance 10.0% Change in Market Cap by S&P Capital IQ Sector 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% 3/31/2017 4/30/2017 5/31/2017 6/30/2017 Energy Materials Industrials Consumer Discretionary Healthcare Financials Information Technology Telecommunication Services Utilities Consumer Staples Note: The indices are derived from the equity performance of the S&P Capital IQ Sectors. Source: Capital IQ Houlihan Capital 6

7 M&A Deal Flow Statistics by S&P Capital IQ Sector M&A Deal Count - Number of Transactions 16,000 14,000 12,000 10,000 8,000 6,000 6,957 8,845 7,176 7,735 7,544 8,953 7,561 8,024 8,265 8,970 7,120 6,788 6,011 6,954 6,702 5,967 4,000 2,000 4,641 5,372 4,647 4,989 5,391 5,700 5,147 5,062 5,134 5,244 4,543 4,297 4,033 4,197 4,316 3,697 0 $1,000 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q M&A Deals - USA & Canada M&A Deals - Rest of the World M&A Deal Count - Total Transaction Value ($ Billions) $900 $800 $700 $600 $500 $400 $343.6 $409.1 $321.9 $372.8 $381.4 $462.7 $430.2 $512.6 $406.6 $440.3 $419.0 $268.0 $295.1 $445.7 $364.7 $336.2 $300 $200 $100 $246.4 $338.2 $400.7 $251.0 $289.7 $450.7 $402.3 $385.2 $499.4 $408.0 $403.0 $375.6 $293.7 $363.7 $363.7 $338.9 $0 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Transaction Value - USA & Canada Transaction Value - Rest of World Houlihan Capital 7

8 M&A Deal Flow Statistics by S&P Capital IQ Sector Percentage Dollars Invested by Sector 2Q17 Consumer Discretionary Consumer Staples Energy Financials Healthcare Industrials Information Technology Materials Real Estate Telecommunications Services Utilities Not Listed Houlihan Capital 8

9 About Houlihan Capital Houlihan Capital is a leading, solutions-driven valuation, financial advisory and boutique investment banking firm. We pride ourselves on being thought leaders in an ever-changing landscape. Houlihan Capital is SOC-compliant, a FINRA and SIPC member and committed to the highest levels of professional ethics and standards. Valuation & Financial Advisory We provide an array of services that include enterprise valuations, portfolio valuation, valuation of carried interest, transaction opinions, tax and financial reporting compliance, purchase price allocations, and a wide variety of consulting services through our Financial Advisory Group. Investment Banking Through our Investment Banking Group, we offer sell side/buy side advisory and capital raises. Through our Special Situations desk, we provide services that fit outside the archetypal verticals, including liquidity solutions, transactional advisory, and secondary market advisory and trading. Litigation Support Our team provides support for a wide variety of situations including commercial and shareholder disputes, derivatives and structured finance litigation, and fraudulent conveyance. For additional information about our Industry expertise and services, visit: Andrew Smith Paul Clark Michael Norton pclark@houlihancapital.com asmith@houlihancapital.com mnorton@houlihancapital.com