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 MANAGING MOUNTAIN OF DATA A CHALLENGE TO VISIBILITY The quality, availability and management of data has to improve if the supply chain is to efficiently handle the mountain of information that is now available to carriers and their customers, panelists said at the 15 th annual TPM Conference in Long Beach, California. Bill Schwebel, president of INTTRA Data, said the information management business was at a lucky time, with the cloud based technology and all the analytics that were available. But with so much data available, one of the greatest challenges being faced by carriers, forwarders and software providers was how to manage it without being buried under the tsunami of information. Journal of Commerce LOGISTICS SIDECAR'S DELIVERY SERVICE NOW ACCOUNTS FOR 25% OF SF RIDES Sidecar is turning into a delivery company. The San Francisco based startup reported today that 25 percent of its total rides provided in the Bay Area are now deliveries, up 15 percent from last month. Sidecar is working with e- commerce, food, flower, and grocery companies to deliver items that are often in the trunk of a car that s also shuttling people around town. Sidecar said it can offer a cheaper price point and faster deliveries than traditional companies in the delivery industry. Geek Wire RAIL WEST COAST INTERMODAL VOLUME SURGE TESTS INLAND HUBS Tightening Chicago drayage capacity is causing rates to spike, as shippers have little choice but to pay for more local trucking to avoid demurrage charges that railroads impose if loads aren t removed from terminals after two days. Drayage rates for the largest North American freight hub have spiked at least 10 percent over the last several weeks, largely because there are not enough drivers to handle the surges of international intermodal cargo moving from West Coast ports. Journal of Commerce TRUCKING INTERMODAL FREIGHT MARKET FACING BIG CHALLENGES Intermodal freight movements are finally recovering since a tentative agreement was worked out about three weeks ago between West Coast Port workers and shipping companies, but diversions of freight from this part of the country are expected to continue. That was one of the messages on Thursday coming from intermodal and rail expert and senior consultant to FTR, Larry Gross, during a webinar hosted by the freight forecasting firm. Info 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) MARINE CONTAINER LINE FINANCIALS GRADUALLY IMPROVING Container line financials are gradually improving thanks to asset sales, reduced operating expenses, debt reduction and effects of a 50 percent drop in bunker fuel, says the consulting firm Alix Partners. Yet the industry remains challenged and has yet to demonstrate that the recent improvements are sustainable, Esben Christensen, director, told a webcast organized by Stifel Capital Markets on Friday. Journal of Commerce AIR THREE PRIORITIES FOR AIR CARGO The International Air Transport Association (IATA) called for further action on three vital aspects of the air cargo business: transitioning to paperless freight processes, a focus on global handling standards for pharmaceutical freight, and tough action to ensure the continued safe transportation of lithium batteries by air. IATA PAGE 1

3 M&A TRANSACTIONS RECENT M&A TRANSACTIONS 1,2 Date Sector Target Business Description Acquirer Pending Logistics Air Medical Group Holdings, Inc. Provides air ambulance services. KKR & Co. Pending Rail Freightliner Group Ltd Provides international freight rail services with operations in the United Kingdom, Poland, Germany, the Netherlands, and Australia. Genesee & Wyoming Inc. 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 Logistics Wheels Group Inc. Provides third party logistics and supply chain solutions in North America. Radiant Global Logistics 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. 3/9/2015 CLP Towne Inc. Doing business as Towne Air Freight. Provides full-service trucking solutions and specializes in time-definite airport-to-airport trucking. Forward Air, Inc. 3/3/2015 Milestone Holdings, LLC equipment lessor specializing in highway trailers, intermodal trailers, domestic intermodal containers, and chassis. Wood Creek Capital Management, LLC 3/3/2015 Logistics Neovia Logistics Services, LLC Provides third party contract logistics services, including warehouse management, fulfillment, and distribution solutions. The Goldman Sachs Group Rhone Capital L.L.C. 3/2/2015 Logistics Pegasus, Inc. Provides regional truckload services, with a focus on the highsecurity, temperature sensitive, health sciences sector and the automotive industry. 2/26/2015 Logistics ITS Logistics LLC Provides a variety of services in supply chain management, transportation, warehousing, brokerage logistics, and transportation management. 2/9/2015 Logistics UX Specialized Logistics Provides non-asset based, last mile logistics services including home delivery, assembly and installation, and same-day delivery. CRST International, Inc. McNally Capital, LLC Coughlin Capital, LLC XPO Last Mile, Inc. 2/5/2015 Logistics Xpress Solutions, Inc. Provides non-asset based less-than-truckload and truckload solutions with a regional focus in the Midwest. Echo Global Logistics, Inc. 2/4/2015 Rail Railroad Controls Limited Provides railroad signal construction services to the freight and commuter rail industry. Westinghouse Air Brake Technologies Corporation 2/9/2015 Logistics Lazer Spot, Inc. Provides outsourced yard management services including trailer spotting and shuttling. Greenbriar Equity Group 2/2/2015 Logistics PODS Enterprises, Inc. Provides container-based moving and storage services. Ontario Teachers' Pension Plan 2/2/2015 Logistics Linkex, Inc. Provides asset-light, third party logistics services including supply chain design, transportation, warehousing, and last mile solutions. Saia, Inc. 1/30/2015 Logistics GENCO Distribution Systems, Inc. Provides product lifecycle and reverse logistics solutions in North America and internationally. FedEx Corporation PAGE 2

4 PUBLIC MARKETS OVERVIEW TEV / LTM EBITDA TEV / 2015E EBITDA 11.8x 10.6x 11.3x 9.1x 9.4x 8.3x 8.7x 7.3x 7.5x 6.4x AVERAGE REVENUE GROWTH ( ) AVERAGE REVENUE GROWTH ( P) 12.2% 9.7% 8.7% 8.7% 7.7% 8.0% 7.4% 5.8% 5.4% 5.2% AVERAGE EBITDA GROWTH ( ) AVERAGE EBITDA GROWTH ( P) 18.4% 16.0% 13.0% 13.9% 7.7% 12.6% 7.4% 12.5% 7.2% 11.1% PAGE 3

5 STOCK PRICE PERFORMANCE MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH) 3.7% 21.2% 3.6% 18.6% (1.6%) 13.8% (4.6%) (2.5%) (6.5%) (12.4%) TRAILING TWELVE MONTHS (Indexed to March 17, 2014) 40% 30% 20% 10% 0% (10%) (20%) (30%) 3/17/14 6/17/14 9/17/14 12/17/14 3/17/15 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 Mar-14 Sep-14 Current E & Logistics Agility Public Warehousing Company KSC $872 $ % 32.0% $ % 7.6x 10.4x 9.6x NA NA Air Transport Services Group, Inc % 21.2% % 5.3x 5.2x 5.0x 5.0x 4.9x Atlas Air Worldwide Holdings, Inc. 2, (2.3%) 45.9% % 7.0x 8.0x 8.2x 8.2x 8.2x CH Robinson Worldwide Inc. 11, % 43.6% % 11.4x 14.5x 14.7x 14.7x 13.1x Deutsche Post AG 37, % 15.4% % 8.7x 9.9x 10.2x 10.2x 8.1x DSV A/S 42, % 30.3% % 12.0x 11.8x 14.3x 14.3x 12.7x Echo Global Logistics, Inc % 66.4% % 12.7x NM 17.9x 17.9x 11.8x Expeditors International of Washington Inc. 8, % 23.2% % 11.0x 11.9x 12.8x 12.8x 11.6x FedEx Corporation 51, (1.7%) 26.7% % 7.1x 7.3x 8.0x 8.5x 7.4x Forward Air Corp. 1, (0.0%) 21.2% % 11.6x 12.4x 12.6x 12.6x 10.0x Hub Group Inc. 1, % (2.0%) % 10.8x 11.0x 10.9x 10.9x 12.0x JB Hunt Transport Services Inc. 11, % 21.4% % 10.9x 11.3x 11.9x 11.9x 10.6x Kuehne + Nagel International AG 16, % 21.0% % 13.7x 14.7x 16.4x 16.4x 15.6x Landstar System Inc. 2, (1.2%) 12.0% % 13.3x 14.8x 11.9x 11.9x 10.7x Panalpina World Transport Holding Ltd. 3, % 4.5% % NM 18.7x NM NM 13.8x Roadrunner Systems, Inc. 1, % 4.5% % 11.3x 12.3x 11.6x 11.6x 9.5x Ryder System, Inc. 9, (0.4%) 20.6% % 5.6x 6.2x 5.8x 5.8x 5.3x TransForce Inc. 4, % 32.0% % 8.7x 10.7x 11.4x 11.4x 8.6x United Parcel Service, Inc. 96, (2.8%) 2.3% % 10.7x 12.3x 14.1x 14.1x 10.0x Universal Truckload Services Inc. 1, % (6.1%) % 10.3x 9.0x 9.0x 9.0x 7.7x UTi Worldwide Inc. 1, % 15.8% % 16.5x 19.8x NM NM NM World Fuel Services Corp. 4, % 22.1% % 11.2x 11.4x 13.5x 13.5x 11.7x XPO Logistics, Inc. 3, % 48.9% % NM NM NM NM 16.8x Median 3.7% 21.2% 94.6% 10.9x 11.4x 11.8x 11.9x 10.6x ArcBest Corporation $1,002 $ % 14.9% $ % 8.7x 6.6x 6.5x 6.5x 5.0x Celadon Group Inc. 1, % 9.6% % 8.8x 7.1x 9.8x 10.0x 8.0x Con-way Inc. 2, % 12.8% % 5.9x 7.2x 5.8x 5.8x 5.0x Covenant Group, Inc % 226.6% % 5.4x 6.2x 9.5x 9.5x 7.3x Heartland Express, Inc. 2, (3.5%) 11.4% % 13.3x 12.6x 10.4x 10.4x 8.1x Knight Inc. 2, % 44.9% % 9.7x 10.6x 11.7x 11.7x 9.1x Marten Transport Ltd % 12.9% % 6.0x 6.1x 6.9x 6.9x 5.7x Old Dominion Freight Line Inc. 6, % 38.1% % 11.0x 12.3x 11.7x 11.7x 10.0x P.A.M. Services, Inc (3.3%) 144.2% % 5.5x 6.9x 8.4x 8.4x NA Quality Distribution Inc % (18.6%) % 10.3x 11.5x 9.3x 9.3x 7.5x Saia, Inc. 1, % 14.6% % 8.2x 10.1x 8.2x 8.2x 6.8x Swift Company 5, % 10.6% % 9.0x 8.2x 9.3x 9.3x 7.9x Universal Truckload Services Inc. 1, % (6.1%) % 10.3x 9.0x 9.0x 9.0x 7.7x USA Truck Inc (5.4%) 93.2% % 8.6x 7.1x 7.0x 7.0x 6.7x Werner Enterprises Inc. 2, % 25.4% % 6.3x 6.3x 7.4x 7.4x 6.2x YRC Worldwide Inc. 1, (8.8%) (22.2%) % 9.3x 10.4x 7.6x 7.6x 4.5x Median 3.6% 13.8% 89.0% 8.8x 7.7x 8.7x 8.7x 7.3x PAGE 7

9 PUBLIC COMPARABLES CONT. TRANSPORTATION & LOGISTICS 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 Mar-14 Sep-14 Current E & Logistics Rail and Rail Services American Railcar Industries, Inc. $1,361 $48.70 (11.0%) (32.0%) $ % 9.1x 9.0x 6.7x 6.7x 5.8x Canadian National Railway Company 78, (1.9%) 39.4% % 12.2x 14.3x 13.8x 13.8x 12.4x Canadian Pacific Railway Limited 44, % 38.9% % 14.7x 16.7x 15.8x 15.8x 12.9x CSX Corp. 42, (6.7%) 20.3% % 8.1x 8.8x 8.9x 8.9x 8.3x FreightCar America Inc % 28.0% % NM NM 12.1x 12.1x 4.0x Genesee & Wyoming Inc. 7, % 6.8% % 12.6x 13.2x 12.4x 12.4x 10.2x The Greenbrier Companies, Inc. 1, (5.1%) 18.6% % 10.1x 9.7x 7.4x 8.0x 4.7x Kansas City Southern 14, (3.0%) 18.5% % 13.2x 14.4x 13.5x 13.5x 11.9x Norfolk Southern Corporation 41, (1.3%) 14.9% % 8.9x 9.4x 9.2x 9.2x 8.7x Trinity Industries Inc. 8, % (5.7%) % 8.7x 8.2x 5.9x 5.9x 5.3x Union Pacific Corporation 110, (7.5%) 23.7% % 10.0x 10.7x 10.4x 10.4x 9.4x Westinghouse Air Brake Technologies Corporation 9, % 17.6% % 16.1x 15.5x 15.5x 15.5x 13.9x Median (1.6%) 18.6% 91.2% 10.1x 10.7x 11.3x 11.3x 9.1x Aegean Petroleum Network Inc. $1,426 $13.49 (8.0%) 37.1% $ % 15.8x 14.8x 14.7x 13.4x 10.5x Costamare Inc. 3, (3.8%) (10.0%) % 13.2x 11.7x 9.6x 9.6x 9.2x Diana Shipping Inc (8.3%) (47.5%) % NM 19.7x 16.4x 16.4x 15.4x Kirby Corporation 4, (5.7%) (27.6%) % 11.3x 12.4x 7.4x 7.4x 7.8x Matson, Inc. 1, % 65.9% % 7.2x 8.4x 9.2x 9.2x 8.3x Neptune Orient Lines Limited 8, (5.5%) (5.0%) % NM NM NM NM 12.1x Nordic American Tankers Limited 1, % 4.0% % NM NM 14.2x 14.2x 7.1x Rand Logistics, Inc (12.8%) (57.1%) % 10.3x 11.0x 7.5x 8.2x 6.8x SEACOR Holdings Inc. 1, (3.8%) (14.9%) % 10.3x 8.5x 7.2x 7.2x 7.4x Wilh. Wilhelmsen ASA 16, % (22.6%) % NM NM NM NM NM Median (4.6%) (12.4%) 76.7% 10.8x 11.7x 9.4x 9.4x 8.3x Accuride Corp. $521 $4.76 (6.5%) (2.5%) $ % 12.3x 8.9x 7.0x 7.0x 5.7x Dana Holding Corporation 3, (10.0%) (4.8%) % 6.0x 5.7x 5.5x 5.5x 5.2x Gentherm Incorporated 1, % 45.6% % 13.8x 16.4x 12.5x 12.5x 11.2x Spartan Motors Inc (9.5%) (7.8%) % NM 18.5x 15.3x 15.3x 9.1x Wabash National Corp. 1, % 8.8% % 8.4x 8.2x 7.5x 7.5x 6.4x Median (6.5%) (2.5%) 86.5% 10.3x 8.9x 7.5x 7.5x 6.4x PAGE 8

10 PUBLIC COMPARABLES CONT. 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 $1,331 $1,418 $1,376 NA NA NA NA NA $55 $72 $84 NA NA NA NA NA Air Transport Services Group, Inc (6.9%) 2.4% (0.3%) 3.7% Atlas Air Worldwide Holdings, Inc. 1,384 1,632 1,643 1,785 1,765 1, % 1.6% % 0.3% CH Robinson Worldwide Inc. 10,336 11,359 12,752 13,470 14,883 16, % 9.0% % 10.6% Deutsche Post AG 52,829 55,512 54,912 56,630 58,700 61, % 3.9% 2,605 3,132 3,709 3,655 4,572 5, % 17.5% DSV A/S 43,710 44,912 45,710 48,582 51,386 53, % 5.1% 2,848 2,937 2,940 2,988 3,379 3, % 9.4% Echo Global Logistics, Inc ,173 1,349 1, % 16.9% % 34.6% Expeditors International of Washington Inc. 6,162 5,992 6,080 6,565 7,027 7, % 6.9% (0.6%) 9.0% FedEx Corporation 39,304 42,680 44,287 45,567 47,721 50, % 5.3% 4,506 5,367 5,597 6,033 6,869 7, % 14.4% Forward Air Corp , % 17.4% % 20.4% Hub Group Inc. 2,752 3,124 3,374 3,571 3,802 4, % 6.5% % 1.9% JB Hunt Transport Services Inc. 3,678 4,058 4,527 5,083 6,786 7, % 21.7% ,039 1, % 12.0% Kuehne + Nagel International AG 16,218 17,120 17,178 17,501 21,324 22, % 12.8% ,028 1, % 5.6% Landstar System Inc. 2,628 2,771 2,665 3,185 3,474 3, % 8.3% % 9.7% Panalpina World Transport Holding Ltd. 6,500 6,617 6,758 6,707 6,737 7, % 3.6% (10.1%) 35.1% Roadrunner Systems, Inc ,073 1,361 1,873 2,227 2, % 13.3% % 18.4% Ryder System, Inc. 6,051 6,257 6,419 6,639 6,847 7, % 4.5% 1,290 1,396 1,459 1,628 1,764 1, % 8.1% TransForce Inc. 2,418 2,812 2,783 3,263 4,526 4, % 19.4% % 18.7% United Parcel Service, Inc. 53,105 54,127 55,438 58,232 60,195 63, % 4.3% 7,830 3,201 8,868 6,864 9,588 10,300 (4.3%) 22.5% Universal Truckload Services Inc ,037 1,033 1,192 1,295 1, % 6.5% % 12.0% UTi Worldwide Inc. 4,550 4,914 4,608 4,441 4,284 4,395 (0.8%) (0.5%) NM NM World Fuel Services Corp. 34,623 38,945 41,562 43,386 40,121 43, % (0.1%) % 13.7% XPO Logistics, Inc ,357 4,235 6,498 NM NM 3 (25) (20) NM NM Total $291,430 $308,590 $317,285 $332,571 $350,261 $371, % 8.0% $24,097 $21,155 $27,819 $26,891 $32,740 $36, % 13.9% ArcBest Corporation $1,908 $2,066 $2,300 $2,613 $2,804 $3, % 7.7% $82 $70 $104 $155 $199 $ % 21.6% Celadon Group Inc % 24.4% % 18.1% Con-way Inc. 5,290 5,580 5,473 5,806 6,183 6, % 6.2% % 13.2% Covenant Group, Inc % 19.4% % 20.3% Heartland Express, Inc % 1.9% % 18.3% Knight Inc ,282 1, % 23.5% % 19.7% Marten Transport Ltd % 4.3% % 14.2% Old Dominion Freight Line Inc. 1,904 2,135 2,338 2,788 3,132 3, % 11.4% % 15.9% P.A.M. Services, Inc NA NA 3.7% NA NA NA 23.8% NA Quality Distribution Inc ,028 1, % 12.1% % 15.4% Saia, Inc. 1,030 1,099 1,139 1,272 1,327 1, % 6.3% % 18.1% Swift Company 3,779 3,976 4,118 4,299 4,548 4, % 6.9% % 13.4% Universal Truckload Services Inc ,037 1,033 1,192 1,295 1, % 6.5% % 12.0% USA Truck Inc % 5.6% % 10.2% Werner Enterprises Inc. 2,003 2,036 2,029 2,139 2,198 2, % 4.5% % 13.3% YRC Worldwide Inc. 4,869 4,851 4,865 5,069 5,288 5, % 4.8% NM NM Total $25,905 $27,247 $28,030 $30,615 $32,874 $35, % 9.7% $2,536 $2,913 $3,073 $3,530 $4,277 $4, % 16.0% PAGE 9

11 PUBLIC COMPARABLES CONT. 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 $844 $ % 4.8% $55 $145 $179 $204 $240 $238 NM 7.9% Canadian National Railway Company 9,028 9,920 10,575 12,134 12,929 13, % 7.1% 4,180 4,609 4,853 5,674 6,277 6, % 9.2% Canadian Pacific Railway Limited 5,052 5,550 5,982 6,464 7,133 7, % 9.8% 1,401 1,772 2,327 2,819 3,401 3, % 15.4% CSX Corp. 11,795 11,763 12,026 12,669 12,878 13, % 3.5% 4,446 4,523 4,577 4,764 5,118 5, % 7.6% FreightCar America Inc % NM (8) % NM Genesee & Wyoming Inc ,569 1,639 2,217 2, % 23.6% % 17.6% The Greenbrier Companies, Inc. 1,174 1,736 1,685 2,121 2,605 2, % 15.2% % 37.3% Kansas City Southern 2,098 2,239 2,369 2,577 2,725 2, % 7.3% ,106 1,251 1, % 13.0% Norfolk Southern Corporation 11,172 11,040 11,245 11,624 11,649 12, % 3.2% 4,073 4,036 4,169 4,522 4,751 5, % 6.3% Trinity Industries Inc. 2,938 3,812 4,365 6,170 6,851 6, % 3.4% ,400 1,552 1, % 2.4% Union Pacific Corporation 18,508 19,686 20,684 22,560 24,922 26, % 8.8% 7,341 8,505 9,223 10,657 11,773 12, % 9.9% Westinghouse Air Brake Technologies Corporation 1,968 2,391 2,566 3,044 3,350 3, % 9.0% % 11.5% Total $65,569 $70,401 $74,108 $82,334 $88,945 $94, % 8.7% $23,537 $26,098 $28,408 $32,562 $36,189 $39, % 12.5% Aegean Petroleum Network Inc. $6,965 $7,259 $6,335 $6,977 $7,121 $7, % 5.4% $75 $85 $75 $111 $138 $ % 18.1% Costamare Inc % 2.7% % 5.2% Diana Shipping Inc (11.8%) 6.7% (35.8%) 13.5% Kirby Corporation 1,850 2,113 2,242 2,566 2,420 2, % (0.9%) % 0.5% Matson, Inc. 1,463 1,560 1,637 1,714 1,801 2, % 9.6% % 13.1% Neptune Orient Lines Limited 9,211 9,512 8,831 8,617 8,333 9,023 (2.2%) 2.3% (90) NM NM Nordic American Tankers Limited % 16.5% 10 7 (22) NM 31.0% Rand Logistics, Inc % 10.1% % 15.8% SEACOR Holdings Inc. 1,032 1,308 1,247 1,319 1,287 1, % (0.0%) % 3.4% Wilh. Wilhelmsen ASA ,546 2,562 NM NM NM NM Total $21,661 $22,993 $21,559 $22,426 $24,562 $26, % 5.8% $1,301 $1,648 $1,626 $2,092 $2,814 $2, % 12.6% Accuride Corp. $805 $795 $643 $705 $744 $744 (4.3%) 2.7% $74 $65 $43 $75 $90 $94 0.2% 12.1% Dana Holding Corporation 7,544 7,224 6,769 6,617 6,478 6,853 (4.3%) 1.8% (0.7%) 7.5% Gentherm Incorporated , % 12.8% % 14.0% Spartan Motors Inc % 5.2% (12.6%) NM Wabash National Corp. 1,187 1,462 1,636 1,863 2,003 1, % 3.6% NM 11.0% Total $10,331 $10,506 $10,179 $10,504 $10,669 $11, % 5.2% $888 $1,008 $973 $1,084 $1,191 $1, % 11.1% Note: 2014 revenue and EBITDA estimates for Aegean Petroleum Network Inc. and Nordic American Tankers Limited. 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