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. Ned Valentine, Mr. Paul Poggi, Mr. Thierry Monjauze and Mr. Aadil Khan, 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 E-COMMERCE FUELED LOGISTICS HIRING IN DECEMBER Logistics companies added thousands of jobs again in December as warehousing and courier companies ramped up hiring to cope with growing demand for e- commerce fulfillment, the U.S. Labor Department reported Friday. Courier and messenger companies, including the package carriers that deliver online orders, increased their payrolls by 5,700 jobs last month, expanding employment in the industry by some 26,300 jobs from a year ago, according to the U.S. Department of Labor jobs report. Warehousing operators, which are adding capacity as retailers push more inventories into online-focused distribution channels, added 3,100 jobs from October to December, and have boosted payrolls by 47,400 jobs over the past 12 months. Wall Street Journal TRUCKING US TRUCK SPOT MARKET VOLUMES SOAR, RATES RISE DAT Solutions and Truckstop.com have seen freight demand and freight rates rising on the spot market in recent weeks, possibly a signal of stronger economic growth ahead. The spot market heat could also represent a surge in e- commerce-generated linehaul demand as online shopping intensifies. E- commerce played a role in the unusually strong increase noted by DAT post- Thanksgiving. DAT reported strong outbound spot market truckload volume gains in Memphis, Tennessee, and Denver, both big e-commerce distribution hubs, as goods were shipped to distribution centers closer to consumers. In Memphis, Journal load availability of Commerce was up 92%. MARINE FOCUS ON CONTAINER FLOW, NOT COST-CUTTING Container line and shippers can fix what some consider to be a broken industry if they concentrate more on accelerating the flow of data and cargo and less on freight rates and cost-cutting measures, according to industry reports. Severe pricing pressure and six consecutive years of losses have changed the focus of ocean carriers from providing superior service to cost-cutting measures such as slow steaming and operating in large vessel-sharing alliances that add complexity to the supply chain. Journal of Commerce RAIL TOO MANY RAILCARS, TOO LITTLE FREIGHT Light traffic on North American railroads has sidetracked the railcar market. Railcar manufacturers, financiers and equipment-leasing companies feasted on high demand to move coal, oil and other commodities from 2012 until last year. Then commodity prices crashed and output slumped. We have too many cars chasing too little freight, said Kristine Kubacki, a transportation analyst for CLSA Americas. A fifth of the continent s 1.6 million railcars are parked in storage yards or along lonesome stretches of rural track. A quarter fewer new cars were delivered in the first nine months of 2016 compared with a year earlier. Lease rates for some cars have fallen by more than half. Wall Street Journal 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) AIR ANOTHER STRONG YEAR FOR AIRLINE PROFITS IN 2017 The International Air Transport Association (IATA) announced that it expects the global airline industry to make a net profit in 2017 of $29.8 billion. On forecast total revenues of $736 billion, that represents a 4.1% net profit margin. This will be the third consecutive year (and the third year in the industry s history) in which airlines will make a return on invested capital (7.9%) which is above the weighted average cost of capital (6.9%). International Air Transport Association PAGE 1

3 M&A TRANSACTIONS RECENT M&A TRANSACTIONS 1,2 Date Sector Target Business Description Acquirer 12/12/2016 Pentalver Transport Limited Operates off-dock container terminals. Genesee & Wyoming Inc. 12/8/2016 Logistics JS Logistics Provides product, storage, distribution and on-demand rush delivery services. USPack Logistics 12/6/2016 Watkins Refrigerated Operates and manages tractors and refrigerated trailers. KJM Capital 12/5/2016* Air NIKI Luftfahrt GmbH Provides aviation services to airline carriers. Etihad Airways 12/5/2016 Rail Rocla Concrete Tie Manufactures concrete sleepers for plain track and turnouts, as well as low-vibration track blocks and level crossing panels. Vossloh 12/1/2016 Hamburg Süd Operates a shipping line on the North-South ocean trade routes. A.P. Moller-Maersk 12/1/2016 Rail Faiveley Transport S.A. Provides value-added, integrated systems and services for the railway industry. Wabtec Corporation 11/28/2016 Logistics Lakeside Logistics Inc Provides logistics services and transportation management. Transplace, inc. 11/11/2016 Agri-Carriers Group, Inc. Provides bulk liquid transportation services through its brands, Landes and Charles G. Lawson. 11/8/2016 Logistics Total Solutions, Inc. Provides order fulfillment services on behalf of manufacturers and direct sellers. The Kenan Advantage Group, Inc. FIDELITONE 11/7/2016 Logistics Marken Ltd. Provides transportation services for clinical trial materials and medicine. United Parcel Service, Inc. 11/2/2016 Logistics Trademark Global LLC Provides shipping and warehousing services. Bertram Capital 11/1/2016 McKeil Provides marine transportation and project services in Canada. TorQuest Partners 10/31/2016 Rail American Track Services Provides rail inspection, maintenance, repair, and design and construction services. Hilltop Private Capital 10/28/2016 XPO Truckload Division Provides truckload logistics services. TransForce Inc. 10/27/2016 Logistics Diamond Services Provides paratransit and shuttle services to the Greater Washington, D.C. area. National Express Group 10/26/2016 Logistics TTS, LLC Provides multimodal, agent-based freight management services. Sunteck Transport Group 10/26/2016 Logistics MetroGistics, LLC Provides non-asset based automotive logistics services. Tailwind Capital 10/26/2016 Logistics Pilot Freight Services Provides transportation and logistics services worldwide. ATL Partners and bcimc *Denotes minority investment PAGE 2

4 PUBLIC MARKETS OVERVIEW TEV / LTM EBITDA TEV / 2016E EBITDA 10.7x 10.3x 10.4x 10.0x 9.1x 8.1x 6.9x 6.6x Equipment 6.0x Equipment 5.9x AVERAGE REVENUE GROWTH ( ) AVERAGE REVENUE GROWTH ( P) 7.2% 4.9% 5.3% 0.5% 4.7% Equipment (1.7%) Equipment 3.4% (6.7%) 1.9% (7.2%) AVERAGE EBITDA GROWTH ( ) AVERAGE EBITDA GROWTH ( P) Equipment 17.0% 9.2% 15.8% (1.3%) 14.5% Equipment (2.7%) 8.8% (2.3%) (3.5%) (7.4%) PAGE 3

5 STOCK PRICE PERFORMANCE MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH) 11.0% Equipment 38.3% Equipment 10.9% 27.1% 10.0% 26.6% 7.6% 23.4% 7.3% S&P % S&P % (14.4%) TRAILING TWELVE MONTHS (Indexed to December 11 th, 2015) 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% (5%) (10%) (15%) (20%) (25%) (30%) Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 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 merged with an operating company of has acquired has merged with in a recapitalization by and RCL Services Group in partnership with and has sold 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. 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) Washington, D.C th St. NW 2nd Floor Washington, D.C Phone: 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 Dec-15 Jun-16 Current 2016E 2017P & Logistics Agility Public Warehousing Co. K.S.C. $2,670 $ % 27.1% $ % 7.0x 6.2x 8.6x NA NA Air Transport Services Group, Inc. 1, % 81.3% % 4.6x 6.1x 6.9x 6.5x 5.2x Atlas Air Worldwide Holdings, Inc. 3, % 34.2% % 6.1x 10.2x 14.7x 7.5x 6.7x C.H. Robinson Worldwide, Inc. 12, % 24.6% % 11.0x 12.0x 13.0x 13.2x 13.0x Deutsche Post AG 45, % 19.5% % 9.6x 10.4x 9.5x 8.8x 8.2x DSV A/S 9, % 12.4% % 13.7x 17.9x 15.8x 15.5x 13.0x Echo Global Logistics, Inc % 33.5% % 15.0x 14.4x 17.1x 13.7x 11.4x Expeditors International of Washington, Inc. 9, % 19.9% % 10.5x 10.7x 12.7x 12.8x 12.3x FedEx Corporation 63, % 37.0% % 8.6x 9.0x 9.9x 7.4x 6.9x Forward Air Corporation 1, % 12.6% % 11.4x 10.4x 10.7x 10.9x 9.9x Hub Group, Inc. Class A 1, % 28.9% % 8.4x 8.1x 8.8x 9.2x 9.0x J.B. Hunt Transport Services, Inc. 12, % 35.5% % 9.2x 9.5x 11.3x 11.3x 10.4x Kuhne & Nagel International AG 15, % (2.9%) % 14.9x 14.9x 13.9x 13.9x 13.0x Landstar System, Inc. 3, % 55.6% % 9.2x 10.1x 14.4x 14.5x 13.6x Panalpina Welttransport (Holding) AG 2, % 9.0% % 12.7x 13.8x 14.4x 16.0x 12.1x Roadrunner Systems, Inc % 14.6% % 5.7x 6.0x 8.8x 8.4x 7.3x Ryder System, Inc. 9, % 44.6% % 5.1x 5.3x 5.6x 5.6x 5.2x TransForce Inc. 3, % 57.5% % 9.8x 7.9x 10.2x 9.1x 6.7x United Parcel Service, Inc. Class B 116, % 23.3% % 11.9x 10.7x 11.9x 11.1x 10.7x Universal Logistics Holdings, Inc % 25.7% % 5.5x 5.8x 7.4x 8.0x 7.9x XPO Logistics, Inc. 11, % 72.9% % 17.0x 13.1x 10.1x 9.0x 8.2x Median 7.6% 27.1% 96.8% 9.6x 10.2x 10.7x 10.0x 9.5x ArcBest Corporation $865 $ % 48.8% $ % 2.8x 2.7x 6.5x 6.4x 5.1x Celadon Group, Inc % (12.2%) % 7.2x 6.8x 7.2x 5.1x 7.7x Covenant Group, Inc. Class A % 16.4% % 4.0x 4.1x 4.7x 5.7x 5.1x Heartland Express, Inc. 1, % 27.5% % 7.0x 7.5x 9.2x 9.0x 8.8x Knight, Inc. 2, % 50.3% % 7.0x 8.1x 11.1x 11.0x 10.3x Marten Transport, Ltd % 55.9% % 4.6x 5.0x 6.4x 6.0x 5.9x Old Dominion Freight Line, Inc. 7, % 50.2% % 7.8x 7.6x 11.0x 11.1x 10.2x P.A.M. Services, Inc % (0.7%) % 5.9x 4.1x 5.6x 5.1x 4.7x Saia, Inc. 1, % 121.7% % 4.0x 5.0x 8.5x 8.2x 7.4x Swift Company Class A 4, % 78.2% % 5.3x 5.5x 7.9x 7.8x 7.1x Universal Logistics Holdings, Inc % 25.7% % 5.5x 5.8x 7.4x 8.0x 7.9x USA Truck, Inc % (41.1%) % 4.0x 5.4x 6.3x 6.7x 5.7x Werner Enterprises, Inc. 2, % 13.9% % 5.0x 4.9x 6.6x 6.5x 6.1x YRC Worldwide Inc. 1, % 7.8% % 4.4x 4.3x 5.1x 4.3x 3.9x Median 11.0% 26.6% 91.9% 5.2x 5.2x 6.9x 6.6x 6.6x 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 Dec-15 Jun-16 Current 2016E 2017P & Logistics Rail and Rail Services American Railcar Industries, Inc. $1,253 $ % (4.6%) $ % 5.9x 4.5x 6.1x 6.4x 7.4x Canadian National Railway Company 60, % 28.9% % 9.6x 10.7x 12.5x 12.4x 11.7x Canadian Pacific Railway Limited 29, % 23.0% % 9.7x 10.9x 12.8x 11.8x 11.0x CSX Corporation 44, % 43.9% % 7.1x 7.5x 10.1x 9.9x 9.3x FreightCar America, Inc (0.2%) (26.7%) % 3.0x 1.3x 4.4x 7.7x 9.2x Genesee & Wyoming, Inc. Class A 6, % 54.8% % 8.7x 10.1x 12.1x 11.7x 10.0x Greenbrier Companies, Inc. 1, % 42.2% % 2.6x 2.3x 3.4x 3.3x 5.4x Kansas City Southern 11, % 14.4% % 9.6x 11.1x 10.5x 10.4x 9.7x Norfolk Southern Corporation 41, % 23.8% % 8.7x 8.4x 10.4x 10.2x 9.6x Trinity Industries, Inc. 6, % 18.9% % 4.3x 3.8x 6.0x 6.8x 8.8x Union Pacific Corporation 100, % 35.0% % 7.5x 9.0x 10.8x 10.8x 10.1x Westinghouse Air Brake Technologies Corporation 7, (3.2%) 17.9% % 10.4x 10.6x 11.9x 12.8x 11.0x Median 7.3% 23.4% 96.6% 8.1x 8.7x 10.4x 10.3x 9.7x Aegean Petroleum Network Inc. $1,334 $ % 41.8% $ % NM 10.5x 10.3x 9.5x 8.9x Costamare Inc. 1, (17.2%) (45.1%) % 6.9x 6.6x 5.5x 5.6x 6.2x Diana Shipping Inc (18.9%) (28.4%) % 17.6x NM NM NM NM Kirby Corporation 4, % 26.1% % 6.4x 8.3x 9.3x 10.1x 10.8x Matson, Inc. 2, % (14.4%) % 8.8x 6.5x 9.0x 8.3x 7.8x Nordic American Tankers Limited 1, % (36.0%) % 8.3x 7.9x 6.7x 7.8x 10.1x Rand Logistics, Inc % (56.8%) % 7.5x 7.1x 8.2x 7.0x 6.4x SEACOR Holdings Inc. 1, % 29.6% % 8.7x 10.7x 15.7x 18.1x 11.6x Wilh. Wilhelmsen ASA 2, % 74.4% % 12.4x NM 16.3x 5.0x 6.7x Median 10.0% (14.4%) 64.9% 8.5x 7.9x 9.1x 8.1x 8.3x Equipment Accuride Corporation $428 $ % 18.9% $ % 5.1x 5.6x 6.2x 5.9x 6.3x Dana Incorporated 3, % 38.3% % 4.5x 4.2x 5.7x 5.7x 5.5x Gentherm Incorporated 1, % (28.0%) % 11.0x 8.5x 8.3x 8.4x 7.8x Spartan Motors, Inc % 156.3% % 10.6x NM NM 15.3x 12.7x Wabash National Corporation 1, % 48.0% % 4.3x 4.4x 4.5x 4.7x 6.4x Median 10.9% 38.3% 90.8% 5.1x 5.0x 6.0x 5.9x 6.4x PAGE 8

10 PUBLIC COMPARABLES Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) E 2017P '12-15 '15-17P E 2017P '12-15 '15-17P & Logistics Agility Public Warehousing Co. K.S.C. $5,061 $4,846 $4,767 $4,330 NA NA (5.1%) NA $258 $289 $276 $292 NA NA 4.2% NA Air Transport Services Group, Inc % 20.3% % 17.2% Atlas Air Worldwide Holdings, Inc. 1,646 1,657 1,799 1,823 1,828 1, % 3.8% (0.7%) 21.0% C.H. Robinson Worldwide, Inc. 11,359 12,752 13,470 13,476 13,048 13, % 1.8% % 0.2% Deutsche Post AG 71,303 73,132 75,117 65,681 61,390 63,791 (2.7%) (1.4%) 3,517 3,887 4,812 3,587 5,178 5, % 24.2% DSV A/S 7,750 8,137 8,645 7,563 9,684 10,301 (0.8%) 16.7% % 17.1% Echo Global Logistics, Inc ,173 1,512 1,725 1, % 12.5% % 23.8% Expeditors International of Washington, Inc. 5,981 6,080 6,565 6,617 6,066 6, % (1.4%) % (1.8%) FedEx Corporation 44,287 45,567 47,453 50,365 59,913 62, % 11.5% 5,597 6,033 4,951 6,165 8,621 9, % 21.6% Forward Air Corporation , % 3.2% % 9.7% Hub Group, Inc. Class A 3,124 3,374 3,571 3,526 3,530 3, % 3.2% % 4.7% J.B. Hunt Transport Services, Inc. 5,055 5,585 6,165 6,188 6,554 7, % 7.4% ,054 1,080 1, % 5.2% Kuhne & Nagel International AG 18,248 18,529 19,118 17,376 19,759 20,511 (1.6%) 8.6% 956 1,028 1,073 1,062 1,084 1, % 4.1% Landstar System, Inc. 2,793 2,665 3,185 3,321 3,100 3, % (1.1%) % 0.1% Panalpina Welttransport (Holding) AG 7,053 7,289 7,327 6,081 5,149 5,450 (4.8%) (5.3%) % 9.3% Roadrunner Systems, Inc. 1,073 1,361 1,873 1,995 1,961 2, % 1.2% % (5.0%) Ryder System, Inc. 6,257 6,419 6,639 6,572 6,762 6, % 3.1% 1,299 1,361 1,505 1,660 1,782 1, % 5.7% TransForce Inc. 3,141 3,018 3,363 3,150 3,064 3, % 5.9% (4.9%) 19.3% United Parcel Service, Inc. Class B 54,064 55,491 58,256 58,050 60,983 63, % 4.9% 3,109 8,765 6,889 9,429 10,510 10, % 7.4% Universal Logistics Holdings, Inc. 1,037 1,033 1,192 1,129 1,076 1, % (1.3%) % (9.4%) XPO Logistics, Inc ,357 7,623 14,629 14,923 NM NM (25) (17) ,247 1,354 NM NM Total $251,461 $259,756 $273,405 $267,955 $281,959 $295, % 4.9% $18,909 $25,705 $24,408 $27,791 $33,668 $35, % 9.2% ArcBest Corporation $2,066 $2,300 $2,613 $2,667 $2,691 $2, % 3.5% $71 $107 $154 $167 $137 $ % 0.3% Celadon Group, Inc ,065 1, % 8.3% % (12.6%) Covenant Group, Inc. Class A % (1.7%) % (7.8%) Heartland Express, Inc % (7.9%) % (0.8%) Knight, Inc ,102 1,183 1,112 1, % (0.2%) % 1.0% Marten Transport, Ltd % 2.6% % 5.6% Old Dominion Freight Line, Inc. 2,110 2,338 2,788 2,972 2,983 3, % 3.8% % 4.6% P.A.M. Services, Inc % 5.5% % 3.1% Saia, Inc. 1,099 1,139 1,272 1,221 1,215 1, % 2.4% % 6.3% Swift Company Class A 3,493 4,118 4,299 4,229 4,039 4, % (0.9%) % (0.6%) Universal Logistics Holdings, Inc. 1,037 1,033 1,192 1,129 1,076 1, % (1.3%) % (9.4%) USA Truck, Inc (0.3%) (7.1%) % (15.9%) Werner Enterprises, Inc. 2,036 2,029 2,139 2,094 1,999 2, % (0.5%) % (2.3%) YRC Worldwide Inc. 4,851 4,865 5,069 4,832 4,686 4,842 (0.1%) 0.1% % 10.5% Total $20,979 $22,289 $24,492 $24,279 $23,692 $24, % 0.5% $2,355 $2,603 $2,984 $3,326 $3,167 $3, % (1.3%) PAGE 9

11 PUBLIC COMPARABLES Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) E 2017P '12-15 '15-17P E 2017P '12-15 '15-17P & Logistics Rail and Rail Services American Railcar Industries, Inc. $712 $751 $733 $889 $626 $ % (22.7%) $146 $179 $204 $273 $197 $ % (21.1%) Canadian National Railway Company 9,923 10,263 10,986 9,857 9,105 9,605 (0.2%) (1.3%) 4,611 4,710 5,137 5,021 4,945 5, % 1.7% Canadian Pacific Railway Limited 5,697 5,952 5,994 5,246 4,786 5,057 (2.7%) (1.8%) 1,800 2,340 2,640 2,431 2,483 2, % 4.5% CSX Corporation 11,756 12,026 12,669 11,811 10,859 11, % (2.3%) 4,422 4,534 4,764 4,792 4,512 4, % (0.1%) FreightCar America, Inc % (27.3%) 41 (4) % (45.2%) Genesee & Wyoming, Inc. Class A 875 1,569 1,639 2,000 1,977 2, % 2.3% % 7.3% Greenbrier Companies, Inc. 1,812 1,755 2,203 2,605 2,680 2, % (10.7%) % (18.8%) Kansas City Southern 2,239 2,369 2,577 2,419 2,334 2, % 1.1% ,106 1,098 1,131 1, % 5.8% Norfolk Southern Corporation 11,040 11,245 11,624 10,511 9,870 10,324 (1.6%) (0.9%) 4,040 4,173 4,526 3,938 4,089 4,354 (0.8%) 5.2% Trinity Industries, Inc. 3,812 4,365 6,170 6,393 4,591 3, % (26.9%) ,402 1, % (28.4%) Union Pacific Corporation 20,926 21,963 23,988 21,813 19,885 20, % (2.2%) 8,505 9,223 10,657 10,064 9,248 9, % (0.8%) Westinghouse Air Brake Technologies Corporation 2,391 2,566 3,044 3,308 2,952 4, % 12.2% % 1.6% Total $71,860 $75,115 $82,227 $77,625 $70,167 $72, % (6.7%) $26,035 $28,243 $31,857 $30,912 $29,265 $30, % (7.4%) Aegean Petroleum Network Inc. $7,259 $6,335 $6,662 $4,232 $4,031 $5,091 (16.5%) 9.7% $102 $84 $54 $81 $140 $150 (7.5%) 36.0% Costamare Inc % (5.8%) % (5.9%) Diana Shipping Inc (10.6%) (7.5%) (15) 6 (38.5%) (53.2%) Kirby Corporation 2,113 2,242 2,566 2,148 1,754 1, % (9.5%) % (14.8%) Matson, Inc. 1,560 1,637 1,714 1,885 1,921 1, % 3.0% % 2.7% Nordic American Tankers Limited % (28.8%) 13 (7) NM (27.6%) Rand Logistics, Inc (1.8%) (10.7%) % 4.0% SEACOR Holdings Inc. 1,581 1,247 1,319 1, (12.6%) (8.0%) (14.0%) 3.6% Wilh. Wilhelmsen ASA ,957 1,890 (7.5%) NM (6.3%) 34.4% Total $13,802 $12,764 $13,710 $10,874 $11,412 $12, % (7.2%) $1,654 $1,562 $1,772 $1,884 $1,817 $1,816 (3.5%) (2.3%) Equipment Accuride Corporation $930 $643 $705 $686 $590 $577 (9.7%) (8.3%) $50 $43 $75 $77 $72 $ % (6.2%) Dana Incorporated 7,224 6,769 6,617 6,060 5,772 6,003 (5.7%) (0.5%) (4.6%) 2.5% Gentherm Incorporated % 7.1% % 1.1% Spartan Motors, Inc % 4.8% NM NM Wabash National Corporation 1,462 1,636 1,863 2,027 1,824 1, % (11.4%) % (8.2%) Total $10,641 $10,179 $10,504 $10,180 $9,688 $9, % (1.7%) $997 $981 $1,086 $1,104 $1,134 $1, % (2.7%) PAGE 10

12 TRANSPORTATION & LOGISTICS SOURCES 1. FactSet. 2. MergerMarket. 3. Pitchbook. 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. Ned Valentine, Mr. Paul Poggi, Mr. Thierry Monjauze and Mr. Aadil Khan, 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 2016 Harris Williams & Co., all rights reserved. PAGE 11