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 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 3PL MARKET TO SURPASS $1,100 BILLION BY 2024 The 3PL market is forecast to grow at a significant rate owing to the increasing focus of manufacturers on their core businesses and sub-contracting the activities, where they have less expertise. The growth in the e-commerce industry is expected to drive the 3PL market due to an increase in demand for fast delivery, efficient inventory management, freight forwarding, and individualized shipping time. The players in the e-commerce sector are focused on selling goods online, thus necessitating the need for 3PL market providers. PRNewswire TRUCKING LIFT IN DEMAND FUELS HOPE TRUCKING HAS TURNED CORNER The results come as bountiful produce harvests and increased shipping demand tied to Amazon.com Inc. s Prime Day sales promotion have helped boost rates on the spot truckload market, where companies book freight transportation on a daily basis. The average rate for dry vans, the most common type of tractor-trailer used to ship consumer goods, rose 11% in June compared with the same month last year, according to DAT Solutions LLC, an online freight marketplace. The recent lift has fueled hopes for a broader freight recovery, and transportation firms will be watching closely this month to see whether the upswing holds. Wall Street Journal MARINE CARGO IMPORTS SURGED AT U.S. SEAPORTS IN JUNE U.S. importers are on pace to bring more goods through the country s seaports this summer than last, building up inventories from shoes to steel in a sign of growing hopes that the economy will pick up steam this fall. Cargo imports surged at U.S. seaports in June, with gateways on the Pacific and Atlantic coasts reporting record monthly volumes at the start of the shipping industry s peak season for demand, and a retail group predicts that the inbound volume will accelerate in the coming months, a contrast with depressed shipping demand last year. Wall Street Journal RAIL RISING RAILCAR DEMAND PROMPTS AGGRESSIVE PRICING Demand for new freight cars is on the rise, and builders appear to be aggressively using pricing tools to take advantage of the recovery and retain or increase market share, according to market research conducted by Cowen and Company analyst Matt Elkott. Pricing should rebound, provided order activity accelerates and proves sustainable, Elkott notes, while predicting that the railcar industry s backlog could bottom out in 2018 s second quarter. Elkott believes that some key builders may have become more aggressive in their pricing strategies in recent months. This may appear paradoxical at first, given it is happening at a time when demand is showing signs of life. However, as orders begin to tick up, manufacturers may be compelled to boost their participation in this important early phase of the recovery in order to defend and grow their market shares. Railway Age AIR AIRFREIGHT S FAIRYTALE CONTINUES WITH SURGING MAY VOLUMES 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) James O Malley Vice President jomalley@harriswilliams.com +1 (804) EUROPE Jeffery Perkins Managing Director jperkins@harriswilliams.com +49 (0) For the first five months of 2017, worldwide chargeable weight increased 10 percent, y-o-y, and revenues 11 percent in U.S. dollars; 15 percent in euros. The Asia-Pacific region led the market, resulting in a year-to-date growth of 14 percent. China and Hong Kong airfreight continued to grow, especially into the U.S., where average air cargo prices from Hong Kong to the U.S. reached US$3.27 per kilogram in June, according to the Tac Index, an increase of 38.6 percent, y-o-y. Air Cargo World PAGE 1

3 M&A TRANSACTIONS (1,2,3) RECENT M&A TRANSACTIONS Date Sector Target Business Description Acquirer 7/19/2017 3PL Keg Logistics Leading provider of keg management and logistics services to Seaport Capital brewery clients and distributors 7/12/2017 Rail VIP Rail LLC Shortline rail business whose service offerings include switching, 7/6/2017 Grand Worldwide Logistics Corp. transloading, railcar storage, railcar inspection, cleaning and repair, warehousing, and trucking. Offers logistics management and warehousing services. 7/6/2017 Interstate Distributor Co. Provides transportation services such as local, regional and 7/5/2017 Steelman, Inc. 7/5/2017 Air World Class Jet (dba Starbase Aviation LLC) 7/5/2017 Logistics Pacific Bio-Material Management, Inc. transcontinental coverage, dedicated fleets, and intermodal and logistics management. Provides trucking services. Focus areas include: on pipe and tubing in side kits, stainless steel coils and flat sheets, and manufactured steel products. Provides charter services and offers aircraft management solutions to both individual and aircraft owners and corporate flight departments. Provides storage and cold-chain logistics, warehousing, and storage services for biological sample materials. Alpenglow Rail LLC / Stonecourt Capital LP American Fast Freight, Inc. Heartland Express, Inc. Daseke, Inc. Horizon Air Group Brooks Automation, Inc. 6/16/2017 Logistics Worthington Logistics Solutions Provides freight brokerage services. GlobalTranz Enterprises Inc. 6/15/2017 Logistics Partner Logistics Operates six cold storage facilities in the UK, Netherlands and Belgium. 6/13/2017 Stewart & Stevenson Designer, manufacturer and distributor of specialized equipment for the oil and gas, marine, construction, power generation, transportation, mining and agricultural industries. 6/2/2017 Logistics Dedicated Logistics Provides warehousing services under Radiant s Service by Air brand. Technologies Lineage Logistics, LLC Kirby Corporation Radiant Logistics, Inc. 6/2/2017 Equipment Truck Bodies and Equipment International, Manufactures dump bodies, landscape bodies, grain bodies, platforms, hoists, and truck and trailer equipment and accessories. Federal Signal Corporation Inc. 5/30/2017 Estenson Logistics Provides dedicated contract transportation services. Hub Group, Inc. 5/30/2017 Equipment DexKo Global Manufactures trailer and chassis components. KPS Capital 5/16/2017 Logistics Logistics Planning Services 5/9/2017 Logistics Dicom - Extra Express Division Provides freight brokerage services. Provides comprehensive warehousing and related delivery services. GlobalTranz Enterprises Inc. St. George Logistics 5/3/2017 Logistics Nightline Logistics Group Provides express delivery services in Ireland. United Parcel Service, Inc. 5/3/2017 Logistics Carelog Freight Services A/S Provides freight forwarding and logistics services focusing the furniture and fashion industry in Denmark. Panalpina World Transport Ltd. 5/3/2017 Logistics Air Connection Provides freight forwarding services in Kenya. Panalpina World Transport Ltd. *Denotes minority investment PAGE 2

4 PUBLIC MARKETS OVERVIEW (1) TEV / LTM EBITDA TEV / 2017E EBITDA 11.4x 10.8x 10.4x 9.4x 9.1x 9.6x Equipment 8.7x Equipment 7.9x 7.5x 7.4x AVERAGE REVENUE GROWTH ( ) AVERAGE REVENUE GROWTH ( P) Equipment 4.7% 7.4% 4.3% 6.7% 2.6% 5.9% 2.1% Equipment 4.5% (4.3%) 0.7% AVERAGE EBITDA GROWTH ( ) AVERAGE EBITDA GROWTH ( P) Equipment 19.4% Equipment 14.2% 6.0% 12.1% 5.2% 9.7% 4.4% (2.6%) (0.8%) (4.2%) PAGE 3

5 STOCK PRICE PERFORMANCE (1) MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH) Equipment 6.7% Equipment 44.5% 3.9% 20.7% 3.4% 19.8% 1.8% 19.2% 1.5% S&P % S&P % (9.9%) TRAILING TWELVE MONTHS (Indexed to July 8 th, 2016) 70% 60% 50% 40% 30% 20% 10% 0% (10%) Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 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 is merging with has merged with has merged with an operating company of has acquired 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 & 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 Jul-16 Jan-17 Current 2017E 2018P & Logistics Agility Public Warehousing Co. K.S.C. $3,664 $ % 86.7% $ % 6.7x 8.0x 10.3x 9.4x 7.9x Air Transport Services Group, Inc. 1, % 61.7% % 6.6x 7.2x 9.7x 7.6x 6.3x Atlas Air Worldwide Holdings, Inc. 3, % 36.5% % 12.5x 8.6x 9.6x 8.1x 7.2x C.H. Robinson Worldwide, Inc. 10, (1.6%) (4.2%) % 11.7x 12.6x 11.9x 12.0x 11.3x Deutsche Post AG 52, % 37.4% % 9.1x 9.1x 10.3x 8.8x 8.2x DSV A/S 13, % 55.7% % 16.0x 15.7x 19.4x 16.1x 14.9x Echo Global Logistics, Inc (6.1%) (20.4%) % 13.6x 19.7x 17.4x 11.5x 8.9x Expeditors International of Washington, Inc. 9, % 15.2% % 11.0x 12.4x 13.1x 13.0x 12.2x FedEx Corporation 69, % 34.2% % 8.9x 9.3x 10.4x 7.5x 6.8x Forward Air Corporation 1, % 20.4% % 10.5x 10.8x 11.5x 10.6x 9.5x Hub Group, Inc. Class A 1, % (3.5%) % 7.9x 9.4x 8.4x 9.3x 7.8x J.B. Hunt Transport Services, Inc. 11, % 9.7% % 9.8x 11.2x 10.5x 10.4x 9.4x Kuhne & Nagel International AG 19, % 21.7% % 14.8x 14.0x 17.8x 16.0x 15.1x Landstar System, Inc. 3, % 23.4% % 11.4x 14.0x 13.6x 12.6x 11.5x Panalpina Welttransport (Holding) AG 2, % 19.2% % 13.5x 15.0x 18.1x 16.4x 13.3x Roadrunner Systems, Inc % (17.1%) % 8.0x NA 7.2x 5.8x 5.3x Ryder System, Inc. 9, % 7.6% % 5.3x 5.4x 5.3x 5.3x 5.0x TFI International Inc. 3, % 14.1% % 8.0x 11.3x 9.4x 7.6x 6.9x United Parcel Service, Inc. Class B 112, % 0.9% % 11.1x 15.5x 15.3x 10.6x 9.9x Universal Logistics Holdings, Inc (1.0%) 2.4% % 6.3x 8.1x 8.4x 7.7x 6.8x XPO Logistics, Inc. 12, (1.7%) 138.8% % 9.1x 9.0x 10.4x 9.2x 7.9x Median 3.9% 19.2% 96.2% 9.8x 11.0x 10.4x 9.4x 8.2x ArcBest Corporation $657 $ % 23.9% $ % 3.3x 6.4x 4.7x 4.3x 3.7x Celadon Group, Inc % (55.5%) % 6.3x 7.6x 5.8x 8.0x 5.4x Covenant Group, Inc. Class A (9.3%) (19.8%) % 4.3x 4.8x 4.3x 4.9x 4.4x Heartland Express, Inc. 1, % 19.1% % 7.8x 8.8x 9.5x 8.4x 7.2x Knight, Inc. 2, % 26.7% % 7.6x 10.8x 11.6x 11.5x 10.0x Marten Transport, Ltd (1.4%) 25.6% % 5.4x 6.0x 6.7x 6.2x 5.6x Old Dominion Freight Line, Inc. 8, % 52.3% % 8.3x 10.8x 11.7x 11.1x 9.9x P.A.M. Services, Inc (10.8%) (0.7%) % 4.2x 5.8x 4.7x 4.5x 3.7x Saia, Inc. 1, % 100.6% % 5.5x 11.0x 12.8x 8.6x 7.5x Swift Company Class A 4, % 48.1% % 5.9x 8.4x 9.1x 8.4x 7.2x Universal Logistics Holdings, Inc (1.0%) 2.4% % 6.3x 8.1x 8.4x 7.7x 6.8x USA Truck, Inc % (51.5%) % 6.6x 8.0x 9.9x 7.1x 4.9x Werner Enterprises, Inc. 2, % 20.6% % 5.1x 6.4x 6.6x 6.3x 5.7x YRC Worldwide Inc. 1, % 18.9% % 4.3x 4.5x 4.7x 4.1x 3.5x Median 3.4% 19.8% 89.1% 5.7x 7.8x 7.5x 7.4x 5.7x 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 Jul-16 Jan-17 Current 2017E 2018P & Logistics Rail and Rail Services American Railcar Industries, Inc. $1,091 $ % (11.6%) $ % 4.9x 7.1x 6.6x 7.4x 7.2x Canadian National Railway Company 71, % 34.2% % 11.4x 12.8x 14.2x 12.9x 12.1x Canadian Pacific Railway Limited 30, % 16.5% % 12.0x 11.9x 12.2x 11.2x 10.6x CSX Corporation 60, % 91.5% % 8.2x 9.8x 12.2x 11.7x 10.5x FreightCar America, Inc % 16.2% % 2.0x 6.6x 8.8x 13.8x 13.2x Genesee & Wyoming, Inc. Class A 6, % 5.7% % 10.3x 12.5x 11.9x 10.0x 9.3x Greenbrier Companies, Inc. 1, (8.0%) 39.1% % 2.5x 4.6x 4.6x 5.3x 5.9x Kansas City Southern 13, % 10.4% % 11.2x 10.4x 12.0x 11.3x 10.4x Norfolk Southern Corporation 45, % 35.0% % 8.9x 10.3x 10.9x 10.3x 9.7x Trinity Industries, Inc. 6, % 34.1% % 4.6x 6.8x 7.4x 8.9x 8.9x Union Pacific Corporation 102, (2.1%) 16.0% % 9.7x 10.9x 10.9x 10.2x 9.5x Westinghouse Air Brake Technologies Corporation 10, % 24.9% % 9.8x 16.3x 16.8x 14.7x 13.2x Median 1.5% 20.7% 94.9% 9.3x 10.4x 11.4x 10.8x 10.1x Aegean Petroleum Network Inc. $1,002 $5.65 (0.9%) (9.9%) $ % 7.3x 5.5x 5.0x 9.6x 7.9x Costamare Inc. 1, % (20.9%) % 6.0x 5.5x 6.1x 6.7x 7.3x Diana Shipping Inc % 37.0% % NM NM NM NM 10.3x Kirby Corporation 4, % 2.6% % 7.8x 9.1x 9.3x 10.4x 8.8x Matson, Inc. 2, (0.7%) (14.5%) % 6.7x 9.7x 9.4x 7.1x 6.6x Nordic American Tankers Limited 1, % (55.7%) % 7.9x 8.4x 9.0x 10.0x 7.0x Rand Logistics, Inc (4.4%) (69.8%) % 7.9x 7.6x 8.2x NA NA SEACOR Holdings Inc. 1, % (0.1%) % 11.2x 19.9x 16.0x 16.2x 12.6x Wallenius Wilhelmsen Logistics ASA 2, % 151.6% % 9.3x NM 14.9x 3.8x 3.0x Median 1.8% (9.9%) 67.5% 7.8x 8.4x 9.1x 9.6x 7.6x Equipment Dana Incorporated 5, % 106.7% % 4.2x 6.3x 7.7x 6.8x 6.3x Gentherm Incorporated 1, % 6.9% % 8.8x 8.6x 9.8x 9.0x 8.4x Spartan Motors, Inc % 21.9% % NM 15.1x 17.1x 10.9x 8.5x Wabash National Corporation 1, % 67.0% % 3.9x 5.0x 6.5x 6.8x 7.3x Median 6.7% 44.5% 96.5% 4.2x 7.5x 8.7x 7.9x 7.8x PAGE 8

10 PUBLIC COMPARABLES (1) Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) E 2018P '13-16 '16-18P E 2018P '13-16 '16-18P & Logistics Agility Public Warehousing Co. K.S.C. $4,846 $4,767 $4,330 NA NA NA NA NA $289 $276 $292 NA NA NA NA NA Air Transport Services Group, Inc , % 18.1% % 24.6% Atlas Air Worldwide Holdings, Inc. 1,657 1,799 1,823 1,840 2,080 2, % 9.8% % 15.7% C.H. Robinson Worldwide, Inc. 12,752 13,470 13,476 13,144 14,296 15, % 7.3% % 2.1% Deutsche Post AG 73,132 75,117 65,681 63,423 69,632 72,099 (4.6%) 6.6% 3,887 4,812 3,587 5,013 5,954 6, % 12.4% DSV A/S 8,137 8,645 7,563 10,066 11,278 11, % 8.0% % 18.6% Echo Global Logistics, Inc 884 1,173 1,512 1,716 1,866 2, % 10.6% % 28.4% Expeditors International of Washington, Inc. 6,080 6,565 6,617 6,098 6,600 6, % 6.6% % 2.1% FedEx Corporation 45,567 47,453 50,365 60,319 63,290 66, % 5.0% 6,033 4,951 6,165 8,032 9,219 10, % 12.2% Forward Air Corporation ,068 1, % 8.2% % 10.3% Hub Group, Inc. Class A 3,374 3,571 3,526 3,573 3,845 4, % 6.8% % 0.8% J.B. Hunt Transport Services, Inc. 5,585 6,165 6,188 6,555 7,085 7, % 8.7% ,054 1,088 1,081 1, % 5.3% Kuhne & Nagel International AG 18,529 19,118 17,376 16,774 18,262 19,001 (3.3%) 6.4% 1,028 1,073 1,069 1,084 1,213 1, % 9.0% Landstar System, Inc. 2,665 3,185 3,321 3,168 3,382 3, % 7.1% % 9.3% Panalpina Welttransport (Holding) AG 7,289 7,327 6,081 5,274 5,535 5,752 (10.2%) 4.4% (0.7%) 15.0% Roadrunner Systems, Inc. 1,361 1,873 1,995 NA 2,044 2,153 NA NA NA NA NA Ryder System, Inc. 6,419 6,639 6,572 6,787 7,099 7, % 4.3% 1,361 1,505 1,649 1,738 1,750 1, % 2.6% NA NA NA NA United Parcel Service, Inc. Class B 55,491 58,256 58,050 60,502 64,244 67, % 5.5% 8,765 7,991 9,429 7,295 10,564 11,312 (5.9%) 24.5% Universal Logistics Holdings, Inc. 1,033 1,192 1,129 1,073 1,158 1, % 5.8% (12.3%) 8.9% XPO Logistics, Inc ,357 7,623 14,619 14,918 15,780 NM 3.9% (17) ,158 1,350 1,575 NM 16.6% Total $256,738 $270,042 $264,805 $276,682 $298,663 $313, % 7.4% $25,386 $25,150 $27,440 $29,085 $35,275 $38, % 12.1% ArcBest Corporation $2,300 $2,613 $2,667 $2,700 $2,847 $2, % 5.2% $107 $154 $167 $139 $152 $ % 13.0% Celadon Group, Inc ,065 1,042 1, % 0.4% % (9.5%) Covenant Group, Inc. Class A (0.7%) 4.3% % (1.9%) Heartland Express, Inc % 19.1% % 9.5% Knight, Inc ,102 1,183 1,118 1,151 1, % 5.6% % 5.2% Marten Transport, Ltd % 7.0% % 10.0% Old Dominion Freight Line, Inc. 2,338 2,788 2,972 2,992 3,250 3, % 8.2% % 9.5% P.A.M. Services, Inc % 3.0% % 12.1% Saia, Inc. 1,139 1,272 1,221 1,218 1,341 1, % 9.2% (2.4%) 31.6% Swift Company Class A 4,118 4,299 4,229 4,032 4,118 4,324 (0.7%) 3.6% (4.1%) 7.5% Universal Logistics Holdings, Inc. 1,033 1,192 1,129 1,073 1,158 1, % 5.8% (12.3%) 8.9% USA Truck, Inc (8.2%) 2.3% (10.2%) 19.5% Werner Enterprises, Inc. 2,029 2,139 2,094 2,009 2,092 2,197 (0.3%) 4.6% % 8.2% YRC Worldwide Inc. 4,865 5,069 4,832 4,698 4,907 5,139 (1.2%) 4.6% % 11.8% Total $22,289 $24,492 $24,279 $23,721 $24,719 $26, % 5.9% $2,603 $2,984 $3,380 $3,029 $3,160 $3, % 9.7% PAGE 9

11 PUBLIC COMPARABLES (1) Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) E 2018P '13-16 '16-18P E 2018P '13-16 '16-18P & Logistics Rail and Rail Services American Railcar Industries, Inc. $751 $733 $889 $639 $435 $447 (5.2%) (16.4%) $179 $204 $272 $182 $147 $ % (9.2%) Canadian National Railway Company 10,263 10,986 9,857 9,085 10,358 10,917 (4.0%) 9.6% 4,710 5,137 5,021 4,934 5,578 5, % 9.6% Canadian Pacific Railway Limited 5,952 5,994 5,246 4,704 5,187 5,442 (7.5%) 7.6% 2,340 2,640 2,431 2,414 2,728 2, % 9.8% CSX Corporation 12,026 12,669 11,811 11,069 11,529 11,941 (2.7%) 3.9% 4,534 4,764 4,792 4,805 5,197 5, % 9.8% FreightCar America, Inc % (16.1%) (4) NM (89.5%) Genesee & Wyoming, Inc. Class A 1,569 1,639 2,000 2,002 2,180 2, % 7.1% % 16.0% Greenbrier Companies, Inc. 1,755 2,203 2,605 2,681 2,178 2, % (12.2%) % (22.3%) Kansas City Southern 2,369 2,577 2,419 2,397 2,523 2, % 5.7% 962 1,106 1,098 1,121 1,226 1, % 8.9% Norfolk Southern Corporation 11,245 11,624 10,511 9,888 10,473 10,924 (4.2%) 5.1% 4,173 4,526 3,938 4,131 4,423 4,730 (0.3%) 7.0% Trinity Industries, Inc. 4,365 6,170 6,393 4,588 3,754 3, % (10.6%) 963 1,402 1,528 1, % (12.5%) Union Pacific Corporation 21,963 23,988 21,813 19,941 21,086 22,023 (3.2%) 5.1% 9,223 10,657 10,064 9,310 10,042 10, % 7.5% Westinghouse Air Brake Technologies Corporation 2,566 3,044 3,308 2,931 4,042 4, % 20.2% % 15.2% Total $75,115 $82,227 $77,625 $70,448 $74,162 $76, % 0.7% $28,243 $31,857 $30,912 $29,502 $31,811 $34, % (4.2%) Aegean Petroleum Network Inc. $6,335 $6,662 $4,232 $4,076 $5,507 $6,165 (13.7%) 23.0% $84 $54 $81 $214 $106 $ % (23.2%) Costamare Inc % (8.5%) % (11.1%) Diana Shipping Inc (11.4%) 37.2% (12) NM NA Kirby Corporation 2,242 2,566 2,148 1,771 1,971 2,221 (7.6%) 12.0% (6.8%) (2.9%) Matson, Inc. 1,637 1,714 1,885 1,942 2,009 2, % 3.9% % 13.2% Nordic American Tankers Limited % (14.6%) (7) NM 1.2% Rand Logistics, Inc NA (9.5%) NA NA (6.2%) NA SEACOR Holdings Inc. 1,247 1,319 1, (12.7%) (6.1%) (21.7%) 6.9% Wallenius Wilhelmsen Logistics ASA ,495 NA (7.5%) NA (22.3%) NM Total $12,764 $13,710 $10,874 $9,932 $14,515 $12,083 (4.3%) 6.7% $1,562 $1,789 $1,906 $1,568 $1,869 $2,235 (0.8%) (2.6%) Equipment Dana Incorporated 6,769 6,617 6,060 5,826 6,445 6,720 (4.9%) 7.4% (4.7%) 12.9% Gentherm Incorporated , % 8.1% % 11.8% Spartan Motors, Inc % 8.2% % 40.7% Wabash National Corporation 1,636 1,863 2,027 1,845 1,687 1, % (5.8%) % (8.4%) Total $9,536 $9,799 $9,494 $9,180 $9,798 $10, % 4.5% $938 $1,012 $991 $1,017 $1,134 $1, % 14.2% 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 2017 Harris Williams & Co., all rights reserved. PAGE 11