TRANSPORTATION & LOGISTICS

Transcription

1 Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

2 WHAT WE RE READING LOGISTICS MERGERS HIT NINE-YEAR HIGH IN 2015 and logistics companies of all sizes felt the urge to merge in 2015, as the number of deals large and small sent acquisition activity to nearly frenzied levels by year-end. Hardly a week went by last year without breaking news of a buyout, or new majority shareholder, or a fold-in acquisition in non-asset and assetbased sectors of logistics and transportation. The number of logistics-related mergers and acquisitions hit a nine-year high in the first nine months of 2015, according to global research firm PwC. Journal of Commerce LOGISTICS WAREHOUSE SPACE GREW TIGHTER IN 4Q Empty warehouses are becoming endangered species. Real-estate brokerage CBRE Inc. reports that the availability rate for industrial property which means warehouses and distribution centers fell to 9.4% in the fourth quarter of 2015, capping 23 consecutive quarters of falling availability, the longest such stretch since CBRE started following it in Wall Street Journal TRUCKING FREIGHT GROWTH SEEN DESPITE DRIVER WOES companies are likely to see a continuation of moderate business growth in 2016 as the shortage of qualified drivers keeps a lid on fleet expansion, analysts said. On government issues, with a new highway funding plan signed into law, limited action is expected in Congress during a presidential election year, and industry officials said they are turning their attention to regulatory activity at the federal and state levels. It s going to be a heavy regulatory year, said Dave Osiecki, chief of national advocacy for American Associations. Transport Topics MARINE OCEAN IMPORTS TO REMAIN FLAT FOR SEVERAL MONTHS Retail imports at U.S. ports are declining in line with a seasonal post-holiday lull and are unlikely to grow beyond historic norms as store operators continue to cope with stubbornly high inventories, a retail group said Friday. Beginning in November, import volumes at the nation s major seaports fell below 1.5 million 20-foot equivalent units, a standard measure for cargo containers, according to the Global Port Tracker report by the National Retail Federation and Hackett Associates LLC. Wall Street Journal RAIL U.S. FREIGHT RAIL TRAFFIC ENDS 2015 WITH A WHIMPER U.S. freight rail traffic was down 9.7 percent year-over-year in the week ending Dec. 26 as a double-digit drop in carload traffic offset a 1.6 percent gain in intermodal volume, the Association of American Railroads reported For the first 51 weeks of 2015, U.S. railroads reported cumulative volume of 14,058,461 carloads, down 5.8 percent, and 13,522,726 intermodal units, up 1.6 percent. Total combined U.S. traffic for the first 51 weeks was 27,581,187 carloads and intermodal units, a decrease of 2.3 percent from last year. 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) AIR DECLINE IN AIR FREIGHT VOLUMES BOTTOMS OUT The International Air Transport Association (IATA) released data for global air freight markets showing air cargo volumes (measured in Freight Tonne Kilometers) were down 1.2% in November 2015, compared to November Total cargo volumes, however, expanded compared to October 2015, and were higher than the low point in August. This indicates that the decline in cargo demand may be bottoming out. IATA PAGE 1

3 M&A TRANSACTIONS RECENT M&A TRANSACTIONS 1,2 Date Sector Target Business Description Acquirer 1/14/2016 Logistics EZ Alternative Transport Provides bulk chemical hauling services. Heniff Systems 1/12/2016 Logistics Enroute Systems Corporation Provides SaaS transportation management systems. Pitney Bowes Inc. 1/11/2016* Logistics Consolidated Aviation Services LLC Provides cargo handling services throughout the United States and South America. Worldwide Flight Services, Inc. 12/29/2015* Logistics Sinotrans & CSC Holdings Co. Ltd. Provides integrated logistics solutions for customers in China and internationally. China Merchants Group Limited 12/9/2015 Logistics United Co LLC, Motor Fuel Delivery Fleet 12/7/2015* Neptune Orient Lines Limited Provides motor fuel delivery services. Owns and operates charter vessels and other related assets and provides global cargo container transportation services. Sentinel LLC CMA CGM S.A. 12/1/2015 Logistics Optimal Freight, LLC Provides truckload, less-than-truckload, intermodal, air, ocean, and freight management services. Transport America, Inc. 12/1/2015 Logistics Bear Services, LP Provides less-than-truckload and truckload freight brokerage services. ABF Logistics II, Inc. 11/18/2015 Logistics The Secor Group, Inc. Provides moving, storage, and logistics services. The Suddath Companies 11/9/2015* Equipment TAL International Group, Inc. Leases intermodal transportation equipment and provides maritime container management services worldwide. Triton Container International Limited 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 Provides full-service, integrated solutions to the flatbed and & Sales, Inc. specialized trailer industry. 10/9/2015* Logistics UTi Worldwide Inc. Operates as a non-asset-based supply chain services and solutions company. *Denotes pending transactions Argosy Capital; Argosy Investment Partners V, L.P.; Headhaul Capital DSV A/S PAGE 2

4 PUBLIC MARKETS OVERVIEW TEV / LTM EBITDA TEV / 2016E EBITDA 9.2x 7.7x 8.1x 7.4x 7.5x 6.6x 4.6x Equipment 4.6x Equipment 4.4x 4.3x AVERAGE REVENUE GROWTH ( E) AVERAGE REVENUE GROWTH (2015E 2017P) 7.3% 5.3% 7.2% 4.9% 4.8% Equipment 2.8% Equipment 4.1% 2.2% (2.7%) (0.6%) AVERAGE EBITDA GROWTH ( E) AVERAGE EBITDA GROWTH (2015R 2017P) 16.7% 11.0% Rail & Rail Services 11.1% 8.8% Logistics Providers 8.7% Equipment 8.2% Equipment 3.8% 6.4% 2.9% 2.4% PAGE 3

5 STOCK PRICE PERFORMANCE MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH) S&P 500 (4.4%) S&P 500 (5.9%) (4.7%) (18.5%) (8.4%) (33.3%) (9.9%) (41.8%) Equipment (11.2%) Equipment (42.0%) (16.1%) (43.4%) TRAILING TWELVE MONTHS (Indexed to December 12, 2014) 20% 10% 0% (10%) (20%) (30%) (40%) (50%) Jan Apr Jul Oct Jan 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 at 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 Jan-15 Jul-15 Current 2016E 2017P & Logistics Agility Public Warehousing Company K.S.C.P. $1,605 $1.40 (15.2%) (41.6%) $ % 9.9x 8.4x 6.1x NA NA Air Transport Services Group, Inc. $908 $ % 16.9% $ % 4.8x 5.2x 4.7x 4.3x 4.1x Atlas Air Worldwide Holdings, Inc. $2,247 $33.74 (12.5%) (29.1%) $ % 8.5x 7.3x 5.8x 6.0x 5.9x CH Robinson Worldwide Inc. $9,763 $61.75 (0.4%) (14.3%) $ % 14.1x 12.0x 11.0x 10.1x 9.6x Deutsche Post AG $34,862 $25.84 (4.0%) (17.5%) $ % 9.3x 11.2x 10.2x 6.6x 6.2x DSV A/S $7,796 $38.23 (0.5%) 24.3% $ % 12.7x 13.9x 15.7x 14.3x 13.1x Echo Global Logistics, Inc. $785 $20.45 (0.4%) (22.9%) $ % 17.1x NM 17.9x 8.6x 7.0x Expeditors International of Washington Inc. $7,040 $42.99 (7.7%) (1.1%) $ % 11.4x 10.6x 9.4x 8.9x 8.4x FedEx Corporation $41,497 $ (7.8%) (23.0%) $ % 7.4x 7.2x 5.7x 5.4x 5.0x Forward Air Corp. $1,377 $43.00 (1.1%) (8.6%) $ % 11.1x 12.7x 10.2x 8.2x 7.4x Hub Group Inc. $1,024 $29.82 (14.0%) (16.2%) $ % 9.7x 10.7x 7.2x 7.1x 6.7x JB Hunt Transport Services Inc. $8,706 $67.35 (8.0%) (16.7%) $ % 11.1x 10.7x 8.4x 7.6x 6.8x Kuehne + Nagel International AG $14,923 $ (4.7%) (4.9%) $ % 15.5x 14.1x 14.4x 13.7x 13.0x Landstar System Inc. $2,424 $56.87 (0.2%) (16.6%) $ % 12.1x 11.4x 9.0x 8.7x 8.1x Panalpina World Transport Holding Ltd. $2,223 $ (7.1%) (21.3%) $ % 19.1x 16.5x 15.5x 9.9x 8.4x Roadrunner Systems, Inc. $792 $8.96 (8.9%) (59.9%) $ % 10.6x 10.1x 6.1x 5.8x 5.5x Ryder System, Inc. $8,071 $50.46 (10.2%) (43.5%) $ % 5.6x 5.5x 4.6x 4.2x 4.0x TransForce Inc. $2,798 $16.05 (4.4%) (36.3%) $ % 9.6x 8.5x 7.2x 7.7x 7.5x United Parcel Service, Inc. $90,584 $91.66 (6.0%) (16.4%) $ % 15.4x 11.4x 10.8x 8.7x 8.2x Universal Truckload Services Inc. $597 $ % (47.7%) $ % 8.5x 7.5x 5.4x 5.3x 5.1x UTi Worldwide Inc. $1,298 $ % (40.9%) $ % NM NM NM NM 10.6x World Fuel Services Corp. $3,006 $38.43 (3.6%) (18.5%) $ % 11.9x 12.3x 9.9x 8.9x 8.1x XPO Logistics, Inc. $5,081 $22.58 (17.0%) (40.4%) $ % NM NM 16.0x 4.1x 3.5x Median (4.7%) (18.5%) 71.8% 11.1x 10.7x 9.2x 7.7x 7.2x ArcBest Corporation $417 $18.70 (10.8%) (55.0%) $ % 6.6x 4.6x 2.4x 2.2x 2.1x Celadon Group Inc (26.9%) (65.7%) % 7.8x 8.8x 6.5x 4.7x 4.4x Covenant Group, Inc (11.8%) (42.6%) % 8.1x 5.6x 4.4x 4.0x 3.7x Heartland Express, Inc. 1, (4.8%) (38.3%) % 11.0x 8.4x 6.5x 5.7x 5.4x Knight Inc. 1, (9.1%) (33.0%) % 11.2x 8.7x 6.5x 6.1x 5.6x Marten Transport Ltd % (21.5%) % 6.4x 5.8x 4.7x 4.0x 3.7x Old Dominion Freight Line Inc. 4, (7.7%) (26.5%) % 11.2x 9.2x 7.3x 6.6x 5.9x P.A.M. Services, Inc (14.1%) (55.1%) % 8.2x 8.6x 4.2x NA NA Saia, Inc (6.6%) (61.0%) % 9.1x 6.7x 3.7x 3.7x 3.5x Swift Company 3, (3.6%) (52.6%) % 9.2x 7.5x 5.3x 5.0x 4.8x Universal Truckload Services Inc % (47.7%) % 8.5x 7.5x 5.4x 5.3x 5.1x USA Truck Inc (6.3%) (44.2%) % 6.7x 5.4x 3.8x 4.3x NA Werner Enterprises Inc. 1, (9.5%) (25.6%) % 6.9x 5.7x 4.5x 4.0x 3.8x YRC Worldwide Inc. 1, (21.3%) (41.7%) % 7.8x 5.0x 4.1x 3.3x 3.0x Median (8.4%) (43.4%) 48.0% 8.1x 7.1x 4.6x 4.3x 4.1x 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 Jan-15 Jul-15 Current 2016E 2017P & Logistics Rail and Rail Services American Railcar Industries, Inc. $1,288 $40.76 (16.2%) (20.1%) $ % 6.4x 5.4x 5.1x 5.2x 5.3x Canadian National Railway Company 47, (2.1%) (22.6%) % 12.4x 10.9x 10.1x 10.1x 9.5x Canadian Pacific Railway Limited 22, (9.4%) (37.4%) % 14.2x 12.5x 9.8x 9.3x 8.8x CSX Corp. 32, (8.6%) (31.6%) % 9.0x 8.3x 6.6x 6.6x 6.3x FreightCar America Inc (16.5%) (35.1%) % 14.7x 5.2x 2.2x 1.7x 2.1x Genesee & Wyoming Inc. 5, (6.5%) (42.5%) % 10.7x 10.7x 8.5x 8.2x 7.8x The Greenbrier Companies, Inc. 1, (17.3%) (54.4%) % 7.2x 5.0x 2.1x 2.4x 3.7x Kansas City Southern 10, (6.5%) (38.9%) % 13.4x 11.8x 9.4x 8.9x 8.0x Norfolk Southern Corporation 32, (15.1%) (26.4%) % 8.7x 8.2x 7.7x 7.7x 7.3x Trinity Industries Inc. 6, (10.6%) (21.2%) % 5.4x 4.8x 4.1x 4.6x 5.0x Union Pacific Corporation 76, (3.2%) (34.9%) % 10.5x 9.1x 7.3x 7.2x 6.7x Westinghouse Air Brake Technologies Corporation 6, (10.5%) (26.0%) % 14.4x 14.4x 9.6x 8.9x 8.4x Median (9.9%) (33.3%) 59.9% 10.6x 8.7x 7.5x 7.4x 7.0x Aegean Petroleum Network Inc. $914 $6.83 (22.2%) (52.1%) $ % 14.9x 12.8x 9.1x 6.7x 6.4x Costamare Inc. 2, (20.0%) (49.6%) % 9.1x 9.3x 6.8x 6.3x 6.7x Diana Shipping Inc (37.0%) (63.4%) % 14.8x NM 15.2x NM 11.4x Kirby Corporation 3, (15.8%) (44.2%) % 8.3x 8.3x 5.5x 5.7x 5.5x Matson, Inc. 2, (13.7%) 10.6% % 8.1x 8.3x 8.1x 6.5x 6.3x Neptune Orient Lines Limited 5, (1.3%) 27.8% % 19.7x NM NM NM NM Nordic American Tankers Limited 1, (2.2%) 20.2% % 20.0x 11.1x 8.9x 7.0x 8.2x Rand Logistics, Inc (40.2%) (69.7%) % 8.2x 7.7x 7.6x 6.8x 6.2x SEACOR Holdings Inc. 1, (16.4%) (34.7%) % 7.4x 9.6x 7.7x 6.9x 6.6x Wilh. Wilhelmsen ASA 1, (0.4%) (39.5%) % 15.9x 12.5x 9.4x 4.1x 3.9x Median (16.1%) (41.8%) 56.2% 11.9x 9.5x 8.1x 6.6x 6.4x Equipment Accuride Corp. $341 $1.22 (43.8%) (74.2%) $ % 7.2x 6.0x 4.4x 4.6x 4.3x Dana Holding Corporation 2, (11.2%) (42.0%) % 5.8x 5.6x 4.0x 3.9x 3.7x Gentherm Incorporated 1, (9.7%) 12.2% % 10.2x 13.4x 10.0x 9.1x 8.1x Spartan Motors Inc (15.5%) (43.5%) % 16.7x 11.9x 9.1x 8.0x 5.9x Wabash National Corp % (8.5%) % 6.7x 5.9x 4.3x 4.2x 4.9x Median (11.2%) (42.0%) 53.4% 7.2x 6.0x 4.4x 4.6x 4.9x PAGE 8

10 PUBLIC COMPARABLES Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) E 2016P 2017P '12-15E '15E-17P E 2016P 2017P '12-15E '15E-17P & Logistics Agility Public Warehousing Company K.S.C.P. $5,039 $4,873 $4,633 NA NA NA NA NA $254 $296 $265 NA NA NA NA NA Air Transport Services Group, Inc (0.8%) 5.4% % 7.4% Atlas Air Worldwide Holdings, Inc. 1,632 1,643 1,785 1,843 1,861 1, % 1.9% % 0.0% CH Robinson Worldwide Inc. 11,359 12,752 13,470 13,585 14,324 15, % 5.6% , % 4.9% Deutsche Post AG 73,191 75,621 68,547 65,008 67,610 70,017 (3.9%) 3.8% 4,129 5,116 4,469 4,382 5,253 5, % 13.6% DSV A/S 7,937 8,439 7,896 7,478 7,771 8,083 (2.0%) 4.0% % 5.3% Echo Global Logistics, Inc ,173 1,528 1,886 2, % 23.3% % 29.8% Expeditors International of Washington Inc. 5,992 6,080 6,565 6,727 7,007 7, % 4.4% % 4.4% FedEx Corporation 42,680 44,287 45,567 47,609 49,900 52, % 4.5% 5,367 6,112 6,417 6,891 7,604 8, % 10.0% Forward Air Corp ,036 1, % 7.2% % 13.6% Hub Group Inc. 3,124 3,374 3,571 3,542 3,706 3, % 4.8% (2.4%) 8.5% JB Hunt Transport Services Inc. 4,058 4,527 5,083 6,185 6,787 7, % 9.5% ,055 1,144 1, % 9.7% Kuehne + Nagel International AG 18,699 19,290 17,618 20,249 21,467 22, % 5.1% 979 1, ,050 1,090 1, % 4.9% Landstar System Inc. 2,735 2,628 3,145 3,315 3,421 3, % 5.9% % 5.7% Panalpina World Transport Holding Ltd. 7,227 7,589 6,752 6,153 6,357 6,583 (5.2%) 3.4% % 21.1% Roadrunner Systems, Inc. 1,073 1,361 1,873 1,999 2,020 2, % 3.3% % 6.1% Ryder System, Inc. 6,257 6,419 6,639 6,581 6,893 7, % 4.9% 1,396 1,459 1,628 1,799 1,893 2, % 5.8% TransForce Inc. 2,822 2,620 2,817 3,093 3,010 3, % (0.5%) (1.8%) (0.3%) United Parcel Service, Inc. 54,127 55,438 58,232 58,600 61,714 65, % 5.5% 3,201 8,868 6,864 9,756 10,428 11, % 6.4% Universal Truckload Services Inc. 1,037 1,033 1,192 1,122 1,157 1, % 3.5% % 3.4% UTi Worldwide Inc. 4,914 4,608 4,436 4,284 3,646 3,872 (4.5%) (4.9%) (23.2%) 13.5% World Fuel Services Corp. 38,945 41,562 43,386 31,516 31,704 33,151 (6.8%) 2.6% % 10.8% XPO Logistics, Inc ,357 7,481 15,274 16,578 NM NM (25) (20) ,250 1,446 NM NM Total $295,078 $306,963 $308,106 $299,449 $319,174 $335, % 4.9% $20,009 $27,672 $25,797 $29,996 $33,460 $36, % 8.8% ArcBest Corporation $2,066 $2,300 $2,613 $2,670 $2,791 $2, % 4.1% $70 $104 $155 $173 $182 $ % 6.0% Celadon Group Inc ,082 1, % 13.0% % 14.7% Covenant Group, Inc % 4.4% % 4.6% Heartland Express, Inc % 2.2% % 2.8% Knight Inc ,197 1,241 1, % 6.0% % 5.6% Marten Transport Ltd % 9.0% % 8.6% Old Dominion Freight Line Inc. 2,135 2,338 2,788 2,980 3,165 3, % 7.6% % 10.5% P.A.M. Services, Inc NA NA NA NA NA NA NA NA NA NA Saia, Inc. 1,099 1,139 1,272 1,225 1,232 1, % 2.0% % 4.7% Swift Company 3,976 4,118 4,299 4,244 4,431 4, % 4.3% % 3.7% Universal Truckload Services Inc. 1,037 1,033 1,192 1,122 1,157 1, % 3.5% % 3.4% USA Truck Inc NA 0.5% NA NA 44.3% NA Werner Enterprises Inc. 2,036 2,029 2,139 2,108 2,200 2, % 4.3% % 5.5% YRC Worldwide Inc. 4,851 4,865 5,069 4,832 4,930 5,122 (0.1%) 3.0% NM NM Total $20,948 $21,752 $23,955 $23,903 $24,996 $25, % 5.3% $2,415 $2,567 $2,962 $3,448 $3,651 $3, % 6.4% PAGE 9

11 PUBLIC COMPARABLES Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) E 2016P 2017P '12-15E '15E-17P E 2016P 2017P '12-15E '15E-17P & Logistics Rail and Rail Services American Railcar Industries, Inc. $712 $751 $733 $853 $821 $ % (5.8%) $145 $179 $204 $270 $250 $242 NM (5.4%) Canadian National Railway Company 9,952 9,954 10,478 9,123 9,189 9,666 (2.9%) 2.9% 4,624 4,568 4,900 4,611 4,723 5,010 (0.1%) 4.2% Canadian Pacific Railway Limited 5,568 5,631 5,582 4,863 4,902 5,169 (4.4%) 3.1% 1,774 2,194 2,434 2,338 2,449 2, % 5.3% CSX Corp. 11,763 12,026 12,669 11,868 11,276 12, % 1.2% 4,523 4,577 4,764 4,812 4,727 5, % 2.8% FreightCar America Inc % (9.8%) 41 (8) % NM Genesee & Wyoming Inc ,569 1,639 2,001 2,153 2, % 4.6% % 4.8% The Greenbrier Companies, Inc. 1,736 1,685 2,121 2,652 2,771 2, % (9.8%) NM NM Kansas City Southern 2,239 2,369 2,577 2,419 2,481 2, % 4.4% ,106 1,080 1,153 1, % 8.5% Norfolk Southern Corporation 11,040 11,245 11,624 10,562 10,600 10,952 (1.5%) 1.8% 4,046 4,179 4,531 4,008 4,172 4,425 (0.3%) 5.1% Trinity Industries Inc. 3,812 4,365 6,170 6,424 5,873 5, % (6.1%) ,400 1,651 1,381 1, % (11.6%) Union Pacific Corporation 19,686 20,684 22,560 22,052 22,079 23, % 2.8% 8,505 9,223 10,657 10,233 10,601 11, % 5.3% Westinghouse Air Brake Technologies Corporation 2,391 2,566 3,044 3,318 3,490 3, % 3.6% % 4.9% Total $70,451 $73,136 $79,795 $76,947 $76,354 $78, % (0.6%) $26,125 $28,000 $31,412 $30,745 $31,294 $33, % 2.4% Aegean Petroleum Network Inc. $7,259 $6,335 $6,662 $4,438 $5,005 $4,831 (15.1%) 4.3% $85 $75 $98 $116 $136 $ % 11.6% Costamare Inc % (1.5%) % (2.4%) Diana Shipping Inc (13.5%) 2.8% (36.9%) 24.9% Kirby Corporation 2,113 2,242 2,566 2,180 2,117 2, % 0.9% % 2.8% Matson, Inc. 1,560 1,637 1,714 1,903 2,079 2, % 6.4% % 4.0% Neptune Orient Lines Limited 9,512 8,831 8,617 6,029 5,854 6,113 (14.1%) 0.7% NM 30.7% Nordic American Tankers Limited NM NM 13 (21) NM NM Rand Logistics, Inc % (0.2%) % 2.3% SEACOR Holdings Inc. 1,308 1,247 1,319 1,074 1,088 1,173 (6.4%) 4.5% (0.9%) 14.1% Wilh. Wilhelmsen ASA ,330 2,368 2,396 NM NM NM NM Total $22,993 $21,559 $22,303 $19,031 $19,575 $19,929 (2.7%) 2.2% $1,658 $1,624 $2,080 $2,449 $2,694 $2, % 11.0% Equipment Accuride Corp. $795 $643 $705 $690 $679 $701 (4.6%) 0.8% $65 $43 $75 $82 $72 $82 8.1% 0.2% Dana Holding Corporation 7,224 6,769 6,617 6,042 6,006 6,258 (5.8%) 1.8% (3.8%) 3.2% Gentherm Incorporated , % 10.3% % 11.3% Spartan Motors Inc % 3.8% (19.5%) 35.2% Wabash National Corp. 1,462 1,636 1,863 1,993 1,954 1, % (2.8%) NM (9.1%) Total $10,506 $10,179 $10,504 $10,122 $10,137 $10, % 2.8% $1,008 $981 $1,084 $1,122 $1,127 $1, % 8.2% PAGE 10

12 TRANSPORTATION & LOGISTICS SOURCES 1. Capital IQ. 2. MergerMarket. DISCLOSURES Harris Williams & Co. ( 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. Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business. THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS. 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 2016 Harris Williams & Co., all rights reserved. PAGE 11