TRANSPORTATION & LOGISTICS

Transcription

1 INDUSTRY UPDATE FEBRUARY 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 a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number ). Harris Williams & Co. Ltd is authorized 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 "INTERNET OF THINGS IS CHANGING THE SUPPLY CHAIN LANDSCAPE In 2018, manufacturers will ramp up digital transformation to embrace new technologies that have the potential to change the supply chain landscape. In 2018, companies will augment their ability to understand the condition of a product as it s in-transit, instead of having to rely on testing upon arrival. This level of transparency will enable companies to verify product condition during the entire trip from beginning to end. Across the logistics landscape, enterprises will derive very clear ROI as they continue to experiment with and develop best practices for the industrial Internet of Things. Material Handling & Logistics TRUCKING TRUCKING COMPANIES ORDERED MOST BIG RIGS IN 12 YEARS companies ordered the most new big rigs in nearly 12 years, as they hustled to take advantage of one of the hottest freight markets. A nationwide shortage of available trucks has sent shipping costs soaring, with retailers and manufacturers in some cases paying over 30% above typical rates to book lastminute transportation for cargo. companies, buoyed by strong demand and flush with cash following the recent tax overhaul, are accelerating plans to replace or expand their fleets. The arrival of more trucks could stabilize the freight market, helping shippers. But relief could be months away. Many trucks ordered in January won t be delivered until the second half of the year, and fleets are having trouble recruiting enough drivers to fill seats in their existing big rigs. WSJ MARINE PANJIVA POINTS TO STRONG IMPORT GROWTH TO START 2018 According to Panjiva, the U.S.-bound waterborne shipment activity had a strong start to the year in January, up 7.7% annually compared to 934,447 in January Panjiva said this marks the fastest rate of growth in a month going back to April 2017, as well as outpacing the cumulative 4.1% growth rate for all of 2017, which it noted was a record year for U.S.-bound shipments in aggregate. Panjiva pointed to a number of growth drivers for this ongoing stretch of growth, including American business confidence remaining high after the recently passed tax reform bill, which it said is leading suppliers to expect an increase in investment. Logistics Management RAIL INTERMODAL OUTPACES WEEKLY CARLOADS Total carloads slid to 251,058 carloads, down 0.5%, while intermodal volume was 268,487 containers and trailers, up 3.7% on-year, AAR reported. Seven of the 10 carload commodity groups posted an increase compared with the same week in They included nonmetallic minerals, 6.9%; chemicals, 4%, and metallic ores and metals, 5.2%. Commodity groups declining were coal, 4.2%; motor vehicles and parts, 10.6%, and grain, 7%. North American rail volume for the week on 12 reporting U.S., Canadian and Mexican railroads totaled 344,660 carloads, off 1.6% from the 2017 week, and 348,177 intermodal units, up 2.8%. Total traffic was 692,837 carloads and intermodal units, up 0.6%. Railway Age AIR DEMAND IN GLOBAL AIR CARGO SUPPLY CHAIN REMAINS ROBUST IATA reported that global air freight markets global demand grew by 9.0%. This was more than double the 3.6% annual growth recorded in Meanwhile, freight capacity, rose by 3.0% in This was the slowest annual capacity growth seen since Logistics Management 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 Director jkidd@harriswilliams.com +1 (804) James O Malley Vice President jomalley@harriswilliams.com +1 (804) Jon Meredith Vice President jmeredith@harriswilliams.com +1 (804) EUROPE Jeffery Perkins Managing Director jperkins@harriswilliams.com +49 (0) PAGE 1

3 M&A TRANSACTIONS (1,2,3) RECENT M&A TRANSACTIONS 2/23/2018 Central Arizona Freight Provides less than truckload transportation, logistics and freight transportation services Red Arts Capital 2/19/2018 Logistics TSO Mobile Provides mobile logistics solutions Inverness Graham's GPSTrackit 2/15/2018 Logistics Plains All American Pipeline LP /Wamsutter Pipeline Assets/ Provides pipeline transportation services Andeavor Logistics LP 2/12/2018 Logistics DWS Logistics, Inc. Provides freight logistics services Mullen Group Ltd. 2/9/2018 Logistics Thermo-Transit Danmark A/S Provides transportation services Girteka Logistics UAB 2/8/2018 Logistics Globegistics, Inc. Provides courier services including ecommerce Shipping Services, Domestic Parcel Services, Royal Mail, International Courier and Air Freight Asendia Management SAS 2/5/2018 Gill North America Ltd. Provides marine related services YFM Private Equity Ltd.; Douglas Gill International Ltd. 2/5/2018 Rail GREX Manufactures cutting-edge equipment to the railroad industry Loram 2/5/2018 Omni Packaging Corp. Distributes shipping and packaging materials to businesses throughout the United States 2/4/2018 Higman, Inc. Provides inland marine transportation services for bulk liquid petroleum and chemical cargoes Meridian Venture Partners LLC; SupplyOne, Inc.; Stephens Capital Partners Kirby LLC Corp. 2/2/2018 Fore Transportation, Inc. Provides long-haul intermodal and truckload services Mason Dixon Intermodal, Inc. 1/31/2018 Logistics Al's Water Service, Inc. Provides potable water transportation and services tothe oil, gas, and mining industries Stallion Oilfield Services Ltd. 1/27/2018 "Euroterminal Slawków" Sp zoo Provides transportation logistics services 1/22/2018 Logistics Groome Holdings Provides specialty transportation services, operating in both the airport shuttle and closed-loop campus shuttle markets Government of Poland; PKP Linia Hutnicza Szerokotorowa Sp zoo Cortec Group 1/21/2018 Logistics Rossendale Transport Provides bus transportation services Transdev 1/19/2018 Rail Roadway Worker Training Provider of safety, compliance and technical training, targeted services, and videos for the railroad industry RailPros *Denotes pending transaction PAGE 2

4 PUBLIC MARKETS OVERVIEW (1) TEV / LTM EBITDA TEV / 2018E EBITDA 12.5x 10.7x 11.5x 10.4x 10.3x 8.5x Transportation Equipment 8.4x 8.3x Transportation Equipment 7.6x 6.4x AVERAGE REVENUE GROWTH ( ) AVERAGE REVENUE GROWTH ( P) 9.9% 14.7% Transportation Equipment 4.8% Transportation Equipment 9.0% (3.3%) 5.3% (4.1%) 2.0% (5.9%) (5.7%) AVERAGE EBITDA GROWTH ( ) AVERAGE EBITDA GROWTH ( P) Transportation Equipment 12.7% 25.3% 12.7% Transportation Equipment 23.0% (0.8%) 7.4% (6.9%) 6.2% (42.3%) 3.4% PAGE 3

5 STOCK PRICE PERFORMANCE (1) MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH) Transportation Equipment (0.9%) 51.2% (2.7%) Transportation Equipment 29.6% S&P 500 (4.4%) 19.9% (4.6%) 17.0% (6.4%) S&P % (7.4%) 0.8% TRAILING TWELVE MONTHS (Indexed to February 26th, 2017) 60% 50% 40% 30% 20% 10% 0% (10%) (20%) (30%) (40%) Feb-17 Apr-17 Jun-17 Aug-17 Oct-17 Dec-17 Rail and Rail Services Transportation 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 Transportation & 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 A portfolio company of has been recapitalized by has merged with is merging with an operating company of has merged with in a recapitalization by and 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 Transportation & Logistics HARRIS WILLIAMS & CO. OFFICE LOCATIONS Boston One International Place Suite 2620 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) Washington, D.C th St. NW 2nd Floor Washington, D.C Phone: Beijing Hong Kong Mumbai EUROPE Frankfurt Bockenheimer Landstrasse Frankfurt Germany Phone: London 63 Brook Street London W1K 4HS, England Phone: +44 (0) NETWORK OFFICES New Delhi Shanghai PAGE 6

8 PUBLIC COMPARABLES (1) 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 Feb-17 Aug-17 Current 2018E 2019P Transportation & Logistics Air Transport Services Group, Inc. 1, (2.1%) 47.9% % 7.6x 7.9x 8.8x 6.2x 5.6x Atlas Air Worldwide Holdings, Inc. 3, % 13.4% % 8.9x 9.7x 8.7x 7.0x 6.5x C.H. Robinson Worldwide, Inc. 14, (4.2%) 15.6% % 13.6x 12.6x 16.8x 14.6x 13.5x Deutsche Post AG 62, (5.0%) 35.3% % 9.1x 10.9x 12.7x 9.1x 8.5x DSV A/S 15, (3.2%) 63.7% % 16.3x 19.6x 18.6x 15.9x 14.9x Echo Global Logistics, Inc (11.9%) 18.5% % 17.9x 14.8x NM 11.3x 10.0x Expeditors International of Washington, Inc. 10, (2.3%) 15.6% % 13.1x 12.7x 15.0x 13.6x 12.8x FedEx Corporation 81, (6.2%) 30.6% % 9.6x 8.0x 9.8x 8.3x 7.4x Forward Air Corporation 1, (11.5%) 10.6% % 10.9x 10.6x 11.3x 10.4x 9.5x Hub Group, Inc. Class A 1, (11.2%) (10.7%) % 10.5x 8.8x 12.5x 9.7x 8.6x J.B. Hunt Transport Services, Inc. 14, (3.1%) 21.3% % 11.3x 11.0x 14.3x 11.9x 10.6x Kuhne & Nagel International AG 20, (5.2%) 24.1% % 14.8x 19.1x 18.3x 14.9x 13.8x Landstar System, Inc. 4, (2.3%) 26.2% % 14.1x 12.5x 14.6x 13.4x 12.4x Panalpina Welttransport (Holding) AG 3, (2.4%) 31.8% % 15.3x 19.3x NM 17.6x 14.7x Roadrunner Transportation Systems, Inc (48.6%) (48.4%) % NM NM NM NA NA Ryder System, Inc. 9, (16.2%) (1.8%) % 5.4x 5.3x 5.3x 5.0x 4.7x TFI International Inc. 3, % 3.7% % 11.0x 9.4x 9.1x 7.9x 7.4x United Parcel Service, Inc. Class B 112, (20.4%) (0.5%) % 14.5x 14.8x 11.5x 10.1x 9.5x Universal Logistics Holdings, Inc (7.4%) 64.4% % 7.7x 9.2x 7.8x NA NA XPO Logistics, Inc. 16, % 92.2% % 9.5x 10.2x 12.9x 10.5x 9.5x Median (4.6%) 19.9% 92.1% 11.0x 10.9x 12.5x 10.4x 9.5x ArcBest Corporation $965 $33.05 (14.9%) 12.0% $ % 6.1x 5.3x 6.3x 5.1x 4.6x Celadon Group, Inc (36.2%) (54.3%) % 7.2x 0.0x 5.7x 3.4x NA Covenant Transportation Group, Inc. Class A (9.4%) 31.2% % 4.7x 5.3x 6.2x 5.7x 5.1x Heartland Express, Inc. 1, (14.1%) (2.8%) % 8.7x 9.6x 10.3x 8.4x 7.3x Knight-Swift Transportation Holdings Inc. Class A 5, % 51.2% % 10.1x 12.1x NM 6.1x 5.6x Marten Transport, Ltd. 1, (1.3%) 52.6% % 6.2x 6.4x 9.0x 7.6x 6.8x Old Dominion Freight Line, Inc. 11, (6.9%) 52.1% % 11.2x 10.7x 15.0x 12.5x 11.3x P.A.M. Transportation Services, Inc (5.8%) 91.0% % 5.1x 4.8x 6.9x NA NA Saia, Inc. 2, (5.2%) 53.3% % 11.3x 11.7x 15.5x 9.0x 8.0x Universal Logistics Holdings, Inc (7.4%) 64.4% % 7.7x 9.2x 14.4x NA NA USA Truck, Inc % 192.3% % 7.7x 11.8x 16.8x 6.4x 5.1x Werner Enterprises, Inc. 2, (11.3%) 36.7% % 6.5x 6.6x 7.7x 6.8x 6.2x YRC Worldwide Inc. 1, (45.5%) (25.6%) % 4.3x 4.4x 4.3x 3.6x 3.2x Median (7.4%) 51.2% 86.0% 7.2x 6.6x 8.4x 6.4x 5.9x PAGE 7

9 PUBLIC COMPARABLES (1) 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 Feb-17 Aug-17 Current 2018E 2019P Transportation & Logistics Rail and Rail Services American Railcar Industries, Inc. $1,181 $39.43 (3.0%) (18.9%) $ % 7.2x 7.3x 8.6x 8.3x 7.9x Canadian National Railway Company 66, (2.5%) 9.5% % 12.7x 13.1x 12.7x 12.0x 11.2x Canadian Pacific Railway Limited 33, (0.2%) 25.9% % 11.9x 11.2x 12.6x 11.9x 11.2x CSX Corporation 62, (3.6%) 15.2% % 12.3x 11.2x 12.3x 11.3x 10.4x FreightCar America, Inc (2.4%) 7.9% % 6.0x 6.2x NM NM 4.9x Genesee & Wyoming, Inc. Class A 6, (11.4%) (3.6%) % 12.5x 11.3x 10.5x 9.1x 8.5x Greenbrier Companies, Inc. 1, % 21.0% % 4.2x 4.6x 6.8x 5.9x 6.0x Kansas City Southern 14, (4.1%) 23.2% % 10.8x 11.8x 11.5x 10.5x 9.7x Norfolk Southern Corporation 50, (5.5%) 18.8% % 10.9x 10.2x 11.0x 10.7x 10.2x Trinity Industries, Inc. 7, (7.8%) 22.7% % 6.7x 8.2x 9.1x 9.8x 8.8x Union Pacific Corporation 123, % 25.3% % 11.1x 10.1x 12.2x 11.7x 11.0x Westinghouse Air Brake Technologies Corporation 9, % 5.0% % 15.3x 13.2x 14.1x 14.4x 13.5x Median (2.7%) 17.0% 90.4% 11.0x 10.7x 11.5x 10.7x 9.9x Aegean Petroleum Network Inc. $891 $2.50 (47.4%) (74.5%) $ % 5.3x 6.2x 6.7x 8.5x 8.3x Costamare Inc. 1, (7.7%) 2.1% % 5.4x 6.0x 6.1x 7.1x 6.4x Diana Shipping Inc (6.4%) 0.8% % NM NM NM 10.4x 7.0x Kirby Corporation 5, (1.2%) 9.4% % 9.5x 9.2x 12.3x 10.6x 9.2x Matson, Inc. 2, (4.8%) (11.0%) % 9.3x 8.1x 9.1x 7.4x 6.9x Nordic American Tankers Limited (9.2%) (70.7%) % 7.9x 10.0x 7.8x 8.4x 4.2x Rand Logistics, Inc (68.1%) (97.8%) % 7.5x 10.1x 11.5x NA NA SEACOR Holdings Inc. 1, (5.8%) 3.7% % 19.4x 11.9x 12.0x 9.5x 8.6x Wallenius Wilhelmsen Logistics ASA 5, (5.6%) 56.6% % NM NM 16.6x 6.8x 6.1x Median (6.4%) 0.8% 62.1% 7.9x 9.2x 10.3x 8.5x 7.0x Transportation Equipment Dana Incorporated 5, (16.7%) 47.3% % 6.2x 7.1x 7.0x 5.8x 5.4x Gentherm Incorporated 1, (1.6%) (13.7%) % 9.1x 7.1x 8.3x 7.5x 6.9x Spartan Motors, Inc % 114.9% % 11.6x NM NM 12.7x 8.0x Wabash National Corporation 1, (0.2%) 11.8% % 6.0x 6.7x 10.1x 7.8x 7.7x Median (0.9%) 29.6% 81.6% 7.7x 7.1x 8.3x 7.6x 7.3x PAGE 8

10 PUBLIC COMPARABLES (1) Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) E 2019P '14-17 '17-19P E 2019P '14-17 '17-19P Transportation & Logistics Air Transport Services Group, Inc ,021 1,162 1, % 13.3% % 14.9% Atlas Air Worldwide Holdings, Inc. 1,799 1,823 1,840 2,156 2,156 2, % 8.5% % 16.2% C.H. Robinson Worldwide, Inc. 13,470 13,476 13,144 14,869 14,869 16, % 6.4% , % 10.1% Deutsche Post AG 75,117 65,681 63,423 74,603 77,579 80,443 (0.2%) 3.8% 4,812 3,587 5,013 6,406 6,885 7, % 7.5% DSV A/S 8,645 7,563 10,066 11,358 11,358 13, % 9.2% , % 12.1% Echo Global Logistics, Inc 1,173 1,512 1,716 1,943 1,943 2, % 12.7% % 34.4% Expeditors International of Washington, Inc. 6,565 6,617 6,098 6,921 6,921 7, % 6.3% % 7.0% FedEx Corporation 47,453 50,365 60,319 64,593 67,923 71, % 4.9% 4,951 6,165 8,420 8,810 9,930 10, % 11.4% Forward Air Corporation ,101 1,101 1, % 10.0% % 8.9% Hub Group, Inc. Class A 3,571 3,526 3,573 4,035 4,035 4, % 7.1% % 13.8% J.B. Hunt Transport Services, Inc. 6,165 6,188 6,555 7,190 7,190 8, % 11.8% 920 1,054 1,088 1,018 1,018 1, % 16.5% Kuhne & Nagel International AG 19,118 17,376 16,774 19,552 20,925 21, % 5.9% 1,073 1,069 1,084 1,232 1,365 1, % 8.8% Landstar System, Inc. 3,185 3,321 3,168 3,646 3,646 4, % 11.0% % 8.8% Panalpina Welttransport (Holding) AG 7,327 6,081 5,274 5,887 6,131 6,396 (7.0%) 4.2% (9.9%) 24.9% Roadrunner Transportation Systems, Inc. 1,873 1,992 2, NM NA NM NA Ryder System, Inc. 6,639 6,572 6,787 7,330 7,330 8, % 6.2% 1,505 1,649 1,738 1,737 1,737 2, % 7.4% TFI International Inc. 3,363 3,150 3,038 3,653 3,653 3, % 3.2% % 10.4% United Parcel Service, Inc. Class B 58,256 58,050 60,502 65,837 65,837 73, % 6.0% 7,991 9,429 7,295 9,776 9,776 11, % 10.4% Universal Logistics Holdings, Inc. 1,192 1,129 1,073 1,217 1, % (100.0%) (14.1%) (100.0%) XPO Logistics, Inc. 2,357 7,623 14,619 15,381 15,381 17, % 6.7% ,158 1,315 1,315 1, % 16.2% Total $268,638 $263,623 $281,753 $312,292 $320,355 $347, % 2.0% $25,247 $27,442 $29,807 $34,751 $36,640 $42, % 7.4% ArcBest Corporation $2,613 $2,667 $2,700 $2,826 $2,826 $3, % 6.0% $154 $167 $139 $157 $157 $ % 15.1% Celadon Group, Inc , (100.0%) NA (100.0%) NA Covenant Transportation Group, Inc. Class A (0.7%) 5.8% % 11.5% Heartland Express, Inc (11.3%) 8.0% (12.2%) 25.7% Knight-Swift Transportation Holdings Inc. Class A 1,102 1,183 1,118 2,425 2,425 5, % 55.2% , % 57.6% Marten Transport, Ltd % 11.2% % 14.0% Old Dominion Freight Line, Inc. 2,788 2,972 2,992 3,358 3,358 4, % 11.7% , % 14.6% P.A.M. Transportation Services, Inc % (100.0%) % (100.0%) Saia, Inc. 1,272 1,221 1,218 1,379 1,379 1, % 11.1% % 18.9% Universal Logistics Holdings, Inc. 1,192 1,129 1,073 1,217 1, % (100.0%) (14.1%) (100.0%) USA Truck, Inc (9.5%) 9.8% (24.7%) 56.0% Werner Enterprises, Inc. 2,139 2,094 2,009 2,117 2,117 2,490 (0.4%) 8.5% % 12.7% YRC Worldwide Inc. 5,069 4,832 4,698 4,891 4,891 5,355 (1.2%) 4.6% % 14.2% Total $20,194 $20,050 $19,690 $21,108 $21,108 $25,655 (5.9%) (5.7%) $2,402 $2,768 $2,520 $2,702 $2,702 $3,958 (6.9%) 3.4% PAGE 9

11 PUBLIC COMPARABLES (1) Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) E 2019P '14-17 '17-19P E 2019P '14-17 '17-19P Transportation & Logistics Rail and Rail Services American Railcar Industries, Inc. $733 $889 $639 $477 $477 $546 (13.4%) 7.0% $204 $272 $182 $138 $138 $148 (12.2%) 3.6% Canadian National Railway Company 10,986 9,857 9,085 10,047 10,047 11,459 (2.9%) 6.8% 5,137 5,021 4,934 5,269 5,269 5, % 6.5% Canadian Pacific Railway Limited 5,994 5,246 4,704 5,049 5,049 5,735 (5.6%) 6.6% 2,640 2,431 2,414 2,665 2,665 3, % 6.7% CSX Corporation 12,669 11,811 11,069 11,408 11,408 12,046 (3.4%) 2.8% 4,764 4,792 4,575 5,074 5,074 5, % 8.6% FreightCar America, Inc (10.1%) 3.2% (10) (3) 10 NM NA Genesee & Wyoming, Inc. Class A 1,639 2,000 2,002 2,208 2,208 2, % 7.1% % 9.6% Greenbrier Companies, Inc. 2,203 2,605 2,681 2,176 2,176 2,480 (0.4%) 6.7% % 1.6% Kansas City Southern 2,577 2,419 2,397 2,627 2,627 2, % 6.1% 1,106 1,098 1,121 1,243 1,243 1, % 8.9% Norfolk Southern Corporation 11,624 10,511 9,888 10,551 10,551 11,490 (3.2%) 4.4% 4,526 3,938 4,131 4,641 4,641 5, % 4.0% Trinity Industries, Inc. 6,170 6,393 4,588 3,663 3,663 3,928 (16.0%) 3.6% 1,402 1,528 1, (18.5%) 5.5% Union Pacific Corporation 23,988 21,813 19,941 21,240 21,240 23,216 (4.0%) 4.5% 10,657 10,064 9,310 10,166 10,166 11,331 (1.6%) 5.6% Westinghouse Air Brake Technologies Corporation 3,044 3,308 2,931 3,882 3,882 4, % 5.1% % 8.2% Total $82,227 $77,625 $70,448 $73,763 $73,654 $81,140 (3.3%) 5.3% $31,857 $30,912 $29,272 $31,525 $31,586 $35,653 (0.8%) 6.2% Aegean Petroleum Network Inc. $6,662 $4,232 $4,076 $5,787 $6,560 $8,087 (4.6%) 18.2% $54 $81 $214 $75 $105 $ % 19.7% Costamare Inc (5.2%) (0.3%) (6.5%) (0.7%) Diana Shipping Inc (2.7%) 28.8% (12) (408) (408) 137 (298.9%) NA Kirby Corporation 2,566 2,148 1,771 2,214 2,214 3,220 (4.8%) 20.6% (15.0%) 18.4% Matson, Inc. 1,714 1,885 1,942 2,047 2,047 2, % 1.1% % 17.2% Nordic American Tankers Limited (23.9%) 27.2% (9.8%) 65.9% Rand Logistics, Inc (100.0%) NA (100.0%) NA SEACOR Holdings Inc. 1,319 1, (21.8%) 2.9% (25.7%) 23.7% Wallenius Wilhelmsen Logistics ASA ,024 3,024 4, % 19.4% % 32.9% Total $13,710 $10,874 $9,932 $14,433 $15,203 $19,310 (4.1%) 14.7% $1,785 $1,906 $1,568 $1,276 $1,344 $2,672 (42.3%) 25.3% Transportation Equipment Dana Incorporated 6,617 6,060 5,826 7,209 7,209 7, % 4.9% , % 14.0% Gentherm Incorporated , % 7.6% % 10.3% Spartan Motors, Inc % 12.9% % 51.2% Wabash National Corporation 1,863 2,027 1,845 1,767 1,767 2,158 (1.8%) 10.5% % 16.6% Total $9,799 $9,494 $9,180 $10,664 $10,764 $12, % 9.0% $1,012 $991 $1,017 $1,121 $1,133 $1, % 23.0% PAGE 10

12 TRANSPORTATION & LOGISTICS SOURCES 1. FactSet. 2. MergerMarket. 3. Pitchbook. 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 a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number ). Harris Williams & Co. Ltd is authorized 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. 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 2018 Harris Williams & Co., all rights reserved. PAGE 11