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 FUEL PRICES FALL, BUT FEDEX AND UPS BOOST SURCHARGES FedEx Corp. is raising its fuel surcharge for the second time this year, jolting e- commerce companies, retailers and other shippers with price increases just as they gear up for the make-or-break holiday sales season. The increase, which takes effect Nov. 2, would add about $170 to the bill for shipping 100 shoeboxes overnight from New York to Atlanta, up from the $67 added by the current surcharge. Wall Street Journal LOGISTICS FORWARDERS, LOGISTICS COMPANIES APPLAUD TPP The agreement will cover approximately 40% of the global marketplace and will accelerate the flow of goods through supply chains in regions with the world s fastest-growing economies, said the Air Forwarders Association. Michelle Halkerston, CEO of Hassett Express and Air Forwarders Association board president, said that more than one in five U.S. jobs depends on exports and imports, and that trade-dependent jobs have more than tripled over the past 20 years as a result of other trade agreements. Air Cargo World TRUCKING TRUCKING MAKES A COMEBACK, SMALL OPERATORS MISS OUT A recovering U.S. economy is driving record demand for trucking. But many smaller operators, who make up the vast majority of the roughly 470,000 for-hire fleets on the road today, say they re missing out on the boom. The amount of freight hauled along the nation s highways hit an all-time high earlier this year, fueled by improved retail sales and factory output. industry revenue has grown an average of 6.5% a year since 2009, topping $700 billion last year for the first time, according to the American Association. Wall Street Journal MARINE CARRIERS FACE THREE MORE YEARS OF EXCESS CAPACITY PAIN The container shipping industry is facing three more years of overcapacity and financial pain because of slowing global trade and a bloated order book of large vessels, forcing Drewry to slash its growth forecast for 2015 and revise down estimates for future years. The London-based analyst said in its latest Container Forecaster report that the recent trade slowdown meant container shipping would grow by just 2.2% this year, half its previous estimate. Journal of Commerce RAIL AMTRAK SHUTDOWN WOULD BE A CLOSURE OF ENTIRE RAIL SYSTEM 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) Come December it could get much tougher to take the train. Or, for that matter, to ship anything on one. This week Amtrak made waves when it threatened to suspend service on some of its routes unless Congress extends the deadline for the rail carrier to get a major safety upgrade in place. NBC News AIR AIR FREIGHT CONTINUES TO LAG The International Air Transport Association reports that air freight volumes were broadly unchanged in August compared to a year ago, with freight tonne kilometers 0.2% higher. The August data shows a pause in earlier declines in air freight volumes, consistent with developments in world trade activity. That said, the trend in air freight volumes and world trade has been in decline for the best part of & Logistics News PAGE 1

3 M&A TRANSACTIONS RECENT M&A TRANSACTIONS 1,2 Announced Sector Target Business Description Acquirer 10/9/2015 Logistics UTi Worldwide Inc. Operates as a non-asset-based supply chain services and solutions company. DSV A/S 10/6/2015 Logistics Torrey Pines, Inc. Provides chauffeured corporate ground transportation services to corporate travelers, group managers, and private individuals in San Diego. 10/5/2015 Logistics SMARTLogix, Inc. Provides petroleum management, inventory, and transportation logistics solutions for the petroleum logistics business in North America. 10/2/2015 Air Total Airport Services, Inc. Provides aviation services to airline carriers and airports in North America. Marcou Group, LLC SkyBitz, Inc. CCR USA Airport Management, Inc. 9/30/2015 Rail FreightCar Rail Services, LLC and FreightCar Short Line, Inc. Provide railcar maintenance, fleet management, railroad operations, and railcar acquisition services. 9/22/2015 Rail A.Stucki Company Designs, manufactures, reconditions and supplies railcar dynamic control products for the rail transportation market. ARS Nebraska, LLC Stone Canyon Industries 9/17/2015 Logistics M33 Integrated Solutions, Inc. Provides logistics, supply chain, and transportation management services. Transplace Inc. 9/16/2015 Logistics Pacific Alaska Freightways, Inc. Provides freight transportation services to businesses and consumers in Anchorage, Fairbanks, Kenai, Kodiak, and Southeast Alaska. Span-Alaska, Inc. 9/16/2015 Logistics Theodor Wille Intertrade AG Provides supply chain management services for defense, government, and energy sectors in Switzerland and internationally. ADS, Inc. 9/14/2015 Logistics Global Shippers Association Combines the buying power of shippers to secure and maintain competitive rates from the ship lines. IMC Global Solutions, LLC 9/9/2015 Logistics Eastern Connection Operating, Inc. Provides transportation and logistics services. Dicom Group, L.P. 9/9/2015 Con-way Inc. Provides transportation, logistics, and supply chain management services to various manufacturing, industrial, and retail customers in North America and internationally. 8/27/2015 Air TrumpCard Inc. Provides air freight services, particularly domestic heavyweight air and expedited LTL freight. XPO Logistics, Inc. Magnate Worldwide, LLC 8/24/2015 Rail Regional Rail, LLC Acquires and operates shortlines, regional railroads, and switching services in the United States. Levine Leichtman Capital Partners 8/18/2015 Sawyers Transport Limited Provides road haulage services to businesses in Europe. AGRO Merchants Group 8/17/2015 Logistics Ozburn-Hessey Logistics, LLC 8/10/2015 Hornady LLC Provides third party logistics services, including warehousing & fulfillment, transportation management, custom brokerage, and international transportation. Provides flatbed trucking services to customers on the east coast of the United States. Geodis S. A. Daseke, Inc. 8/4/2015 Logistics Hallcon Corporation Canadian provider of specialty outsourced services to the railway and transit sectors in North America. Novacap 8/4/2015 Logistics Courier Express Enterprises LLC Asset-free provider of B2B last mile services with over 1,000 dedicated delivery providers. Dicom Group, L.P. PAGE 2

4 PUBLIC MARKETS OVERVIEW TEV / LTM EBITDA TEV / 2015E EBITDA 10.4x 10.0x 10.2x 8.9x 8.5x 7.7x 5.7x 6.0x 5.6x 5.5x AVERAGE REVENUE GROWTH ( ) AVERAGE REVENUE GROWTH ( P) 11.5% 6.1% 8.7% 5.9% 7.5% 5.5% 6.4% 4.2% 3.5% (2.6%) AVERAGE EBITDA GROWTH ( ) AVERAGE EBITDA GROWTH ( P) 18.0% 15.0% 13.8% 13.9% 7.5% 12.2% 7.4% 8.2% 5.5% 8.1% PAGE 3

5 STOCK PRICE PERFORMANCE MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH) 8.4% (2.1%) 8.2% (6.6%) 5.3% (8.7%) 0.9% (16.0%) (4.6%) (24.2%) TRAILING TWELVE MONTHS (Indexed to October 9, 2014) 30% 20% 10% 0% (10%) (20%) (30%) (40%) Oct Jan Apr Jul Oct Rail and Rail Services S&P 500 Index PAGE 4

6 OUR GROUP Harris Williams & Co. is a leading advisor to the transportation and logistics M&A market. Our & Logistics Group serves companies in a broad range of attractive niches, including third-party logistics (3PL), truck, rail, marine and air transportation, transportation equipment, and the automotive and heavy duty vehicle market. RECENTLY CLOSED T&L TRANSACTIONS has acquired RCL Services Group in partnership with and has sold and to DEEP EXPERIENCE ACROSS T&L SECTORS THIRD-PARTY LOGISTICS RAIL & RAIL SERVICES MARINE TRANSPORTATION TRANSPORTATION EQUIPMENT NICHE TRANSPORTATION AUTOMOTIVE & HEAVY DUTY VEHICLE AIR TRANSPORTATION PAGE 5

7 OUR FIRM Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities. Our clients benefit from our deep-sector experience, integrated industry intelligence and collaboration across the firm, and our commitment to learning what makes them unique. For more information, visit our website. Aerospace, Defense & Government Services Building Products & Materials Business Services Consumer Energy, Power & Infrastructure Healthcare & Life Sciences Industrials Specialty Distribution Technology, Media & Telecom & Logistics HARRIS WILLIAMS & CO. OFFICE LOCATIONS Boston Two International Place 24th Floor Boston, Massachusetts Phone: +1 (617) Cleveland 1900 East 9th Street 20th Floor Cleveland, Ohio Phone: +1 (216) Minneapolis 222 South 9th Street Suite 3350 Minneapolis, Minnesota Phone: +1 (612) UNITED STATES Richmond (Headquarters) 1001 Haxall Point 9th Floor Richmond, Virginia Phone: +1 (804) San Francisco 575 Market Street 31st Floor San Francisco, California Phone: +1 (415) EUROPE Frankfurt Bockenheimer Landstrasse Frankfurt Germany Phone: London 63 Brook Street London W1K 4HS, England Phone: +44 (0) Beijing Hong Kong Mumbai NETWORK OFFICES New Delhi Shanghai PAGE 6

8 PUBLIC COMPARABLES Stock Performance Stock Price Change from 52-Week TEV / LTM EBITDA as of TEV / EBITDA ($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Oct-14 Apr-15 Current 2015E 2016P & Logistics Agility Public Warehousing Company K.S.C.P. $2,036 $1.75 (10.1%) (40.9%) $ % 10.5x 10.0x 7.9x 7.2x 6.7x Air Transport Services Group, Inc. $901 $ % 24.3% $ % 4.7x 4.9x 4.7x 4.6x 4.2x Atlas Air Worldwide Holdings, Inc. $2,477 $ % 24.4% $ % 7.5x 7.4x 6.3x 6.5x 6.5x CH Robinson Worldwide Inc. $11,223 $ % 7.0% $ % 13.7x 14.0x 13.1x 12.3x 11.6x Deutsche Post AG $39,687 $ % (1.9%) $ % 8.2x 11.0x 10.9x 8.1x 7.3x DSV A/S $7,176 $ % 42.0% $ % 10.8x 14.4x 15.1x 13.5x 12.9x Echo Global Logistics, Inc. $855 $22.38 (1.2%) (10.0%) $ % 17.8x 14.8x NM 12.7x 9.1x Expeditors International of Washington Inc. $8,322 $ % 25.3% $ % 10.7x 11.8x 11.6x 11.0x 10.4x FedEx Corporation $47,639 $ % (2.9%) $ % 7.1x 7.3x 6.6x 6.9x 6.1x Forward Air Corp. $1,436 $ % (5.0%) $ % 11.6x 11.7x 10.8x 9.8x 8.0x Hub Group Inc. $1,384 $ % (1.7%) $ % 10.5x 10.0x 10.1x 11.0x 9.5x JB Hunt Transport Services Inc. $9,647 $ % 1.4% $ % 10.8x 11.2x 9.6x 9.2x 8.2x Kuehne + Nagel International AG $15,270 $ % 6.1% $ % 13.8x 17.0x 14.4x 14.5x 13.7x Landstar System Inc. $2,810 $64.64 (2.8%) (8.8%) $ % 13.9x 11.1x 10.7x 10.3x 9.5x Panalpina World Transport Holding Ltd. $2,521 $ (6.1%) (2.1%) $ % 16.6x NM 16.2x 12.8x 10.1x Roadrunner Systems, Inc. $1,138 $18.68 (10.4%) (15.7%) $ % 10.4x 10.3x 8.4x 7.4x 6.8x Ryder System, Inc. $9,154 $75.13 (6.3%) (14.4%) $ % 5.9x 5.7x 5.4x 5.1x 4.8x TransForce Inc. $3,238 $ % (19.4%) $ % 9.7x 10.4x 8.3x 8.3x 7.7x United Parcel Service, Inc. $99,638 $ % 5.3% $ % 12.1x 13.5x 12.0x 10.1x 9.5x Universal Truckload Services Inc. $664 $16.32 (11.5%) (35.4%) $ % 8.9x 7.5x 5.7x 5.8x 5.5x UTi Worldwide Inc. $1,050 $4.72 (19.3%) (55.8%) $ % NM NM NM NM NM World Fuel Services Corp. $3,181 $ % 5.6% $ % 9.9x 13.5x 10.3x 10.6x 9.3x XPO Logistics, Inc. $6,682 $29.47 (12.9%) (20.0%) $ % NM NM NM 16.0x 8.0x Median 0.9% (2.1%) 79.0% 10.5x 11.1x 10.2x 10.0x 8.1x ArcBest Corporation $624 $27.34 (4.0%) (22.4%) $ % 6.0x 5.3x 3.6x 3.4x 2.9x Celadon Group Inc (13.0%) (14.4%) % 6.9x 8.9x 8.4x 7.4x 5.9x Con-way Inc. 2, % 9.4% % 5.7x 5.2x 6.0x 5.7x 5.1x Covenant Group, Inc (3.3%) 22.0% % 6.6x 7.7x 4.8x 4.4x 4.1x Heartland Express, Inc. 1, % (8.7%) % 10.9x 9.5x 8.5x 7.3x 6.8x Knight Inc. 2, (5.4%) (8.1%) % 10.4x 10.2x 7.7x 7.0x 6.2x Marten Transport Ltd (6.8%) (0.2%) % 5.4x 6.5x 4.7x 4.3x 3.9x Old Dominion Freight Line Inc. 5, (6.4%) (9.8%) % 11.2x 10.2x 8.5x 8.0x 7.0x P.A.M. Services, Inc (4.6%) 1.1% % 6.5x 8.3x 5.2x NA NA Saia, Inc (7.9%) (32.1%) % 9.3x 7.0x 5.7x 5.4x 4.8x Swift Company 3, (13.4%) (21.7%) % 8.1x 8.2x 6.0x 5.8x 5.3x Universal Truckload Services Inc (11.5%) (35.4%) % 8.9x 7.5x 5.7x 5.8x 5.5x USA Truck Inc % 28.2% % 6.3x 6.2x 4.9x 4.8x 4.6x Werner Enterprises Inc. 1, (1.6%) 7.5% % 5.8x 6.7x 5.5x 4.9x 4.6x YRC Worldwide Inc. 1, % (17.1%) % 9.1x 6.2x 5.0x 4.1x 3.6x Median (4.6%) (8.7%) 61.7% 6.9x 7.5x 5.7x 5.5x 5.0x 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 Oct-14 Apr-15 Current 2015E 2016P & Logistics Rail and Rail Services American Railcar Industries, Inc. $1,421 $ % (25.0%) $ % 7.6x 6.1x 6.0x 5.2x 5.7x Canadian National Railway Company 56, % (9.3%) % 13.0x 12.8x 11.5x 11.6x 10.8x Canadian Pacific Railway Limited 30, % (24.3%) % 16.6x 14.7x 12.3x 12.0x 11.0x CSX Corp. 37, % (7.6%) % 8.6x 8.5x 7.7x 7.7x 7.3x FreightCar America Inc % (35.9%) % NM 8.8x 5.7x 4.3x 3.8x Genesee & Wyoming Inc. 6, % (24.6%) % 11.9x 11.5x 10.2x 10.2x 9.1x The Greenbrier Companies, Inc. 1, (5.2%) (37.5%) % 8.3x 6.7x 4.2x 3.6x 3.4x Kansas City Southern 13, % (17.6%) % 14.4x 12.5x 12.2x 12.2x 10.8x Norfolk Southern Corporation 33, % (24.0%) % 9.2x 9.5x 7.9x 8.4x 7.8x Trinity Industries Inc. 7, % (31.9%) % 6.8x 6.0x 4.9x 4.5x 5.2x Union Pacific Corporation 95, % (10.2%) % 10.4x 9.7x 9.0x 9.3x 8.6x Westinghouse Air Brake Technologies Corporation 9, % 19.7% % 13.8x 15.0x 14.2x 13.5x 12.2x Median 8.4% (24.2%) 73.6% 10.4x 9.6x 8.5x 8.9x 8.2x Aegean Petroleum Network Inc. $1,099 $ % (5.2%) $ % 13.0x 13.0x 11.3x 9.7x 8.4x Costamare Inc. 2, (0.7%) (32.4%) % 10.8x 9.2x 8.0x 7.4x 7.2x Diana Shipping Inc % (18.7%) % 18.2x 16.1x NM NM NM Kirby Corporation 4, (2.2%) (38.8%) % 10.9x 7.7x 7.2x 7.7x 7.4x Matson, Inc. 2, % 70.5% % 7.2x 8.1x 10.4x 8.5x 7.7x Neptune Orient Lines Limited 4, % 4.8% % NM 15.3x 10.4x 10.6x 8.8x Nordic American Tankers Limited 1, % 112.5% % 19.0x 14.7x 11.9x 7.5x 7.7x Rand Logistics, Inc (9.2%) (60.4%) % 10.0x 8.1x 7.6x 6.8x 7.1x SEACOR Holdings Inc. 1, % (13.4%) % 9.0x 8.7x 9.6x 10.1x 7.4x Wilh. Wilhelmsen ASA 1, % (36.0%) % 18.9x 14.3x 11.1x 4.5x 4.4x Median 8.2% (16.0%) 74.3% 10.9x 11.1x 10.4x 7.7x 7.4x Accuride Corp. $443 $3.27 (0.3%) (14.8%) $ % 7.1x 6.7x 5.6x 5.9x 5.1x Dana Holding Corporation 3, % (6.6%) % 5.0x 5.8x 5.1x 5.0x 4.9x Gentherm Incorporated 1, % 11.9% % 12.5x 13.7x 12.5x 12.7x 11.8x Spartan Motors Inc % (9.0%) % 13.6x 15.9x 11.7x 14.9x 11.3x Wabash National Corp (2.0%) (5.9%) % 7.4x 6.8x 5.4x 6.0x 4.7x Median 5.3% (6.6%) 76.0% 7.4x 6.8x 5.6x 6.0x 5.1x PAGE 8

10 PUBLIC COMPARABLES 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 K.S.C.P. $4,775 $5,039 $4,873 $4,633 $4,619 $4,831 (1.0%) 2.1% $199 $254 $296 $265 $285 $ % 7.2% Air Transport Services Group, Inc (6.9%) 3.8% (0.3%) 9.3% Atlas Air Worldwide Holdings, Inc. 1,384 1,632 1,643 1,785 1,878 1, % 5.0% % 5.0% CH Robinson Worldwide Inc. 10,336 11,359 12,752 13,470 13,882 14, % 5.0% % 10.3% Deutsche Post AG 68,631 73,191 75,621 68,547 68,189 71,037 (0.0%) 1.8% 3,384 4,129 5,116 4,469 4,866 5, % 10.3% DSV A/S 7,639 7,937 8,439 7,896 7,920 8, % 1.9% (0.8%) 8.0% Echo Global Logistics, Inc ,173 1,551 2, % 31.8% % 59.7% Expeditors International of Washington Inc. 6,162 5,992 6,080 6,565 7,011 7, % 6.8% (0.6%) 11.2% FedEx Corporation 39,304 42,680 44,287 45,567 47,609 50, % 4.8% 4,506 5,367 6,112 6,417 6,891 7, % 9.6% Forward Air Corp , % 16.3% % 18.6% Hub Group Inc. 2,752 3,124 3,374 3,571 3,619 3, % 3.6% % 3.5% JB Hunt Transport Services Inc. 3,678 4,058 4,527 5,083 6,267 6, % 17.1% ,056 1, % 12.8% Kuehne + Nagel International AG 17,351 18,699 19,290 17,618 21,295 22, % 12.7% 1, , ,058 1,112 (1.7%) 6.2% Landstar System Inc. 2,594 2,735 2,628 3,145 3,375 3, % 6.9% % 8.9% Panalpina World Transport Holding Ltd. 6,954 7,227 7,589 6,752 6,442 6,729 (1.0%) (0.2%) (11.9%) 30.4% Roadrunner Systems, Inc ,073 1,361 1,873 2,106 2, % 9.7% % 17.9% Ryder System, Inc. 6,051 6,257 6,419 6,639 6,678 7, % 3.1% 1,290 1,396 1,459 1,628 1,773 1, % 8.3% TransForce Inc. 2,378 2,822 2,620 2,817 3,324 3, % 10.0% % 7.5% United Parcel Service, Inc. 53,105 54,127 55,438 58,232 58,718 62, % 3.2% 7,830 3,201 8,868 6,864 9,757 10,484 (4.3%) 23.6% Universal Truckload Services Inc ,037 1,033 1,192 1,133 1, % (0.7%) % 2.7% UTi Worldwide Inc. 4,550 4,914 4,608 4,436 4,284 3,778 (0.8%) (7.7%) (22.9%) (6.9%) World Fuel Services Corp. 34,623 38,945 41,562 43,386 33,237 36, % (8.3%) % 4.2% XPO Logistics, Inc ,357 6,606 11,140 NM NM 3 (25) (20) NM NM Total $276,120 $295,078 $306,963 $308,106 $311,324 $332, % 5.9% $22,746 $20,009 $27,672 $25,797 $30,743 $33, % 12.2% ArcBest Corporation $1,908 $2,066 $2,300 $2,613 $2,705 $2, % 4.7% $82 $70 $104 $155 $185 $ % 17.6% Celadon Group Inc , % 29.0% % 33.4% Con-way Inc. 5,290 5,580 5,473 5,806 5,693 5, % 1.4% % 8.3% Covenant Group, Inc % 14.3% % 20.1% Heartland Express, Inc % (3.4%) % 12.1% Knight Inc ,233 1, % 21.6% % 19.3% Marten Transport Ltd % 4.6% % 12.8% Old Dominion Freight Line Inc. 1,904 2,135 2,338 2,788 3,023 3, % 9.1% % 13.6% P.A.M. Services, Inc NA NA 3.7% NA NA NA 23.7% NA Saia, Inc. 1,030 1,099 1,139 1,272 1,250 1, % 1.8% % 14.9% Swift Company 3,779 3,976 4,118 4,299 4,274 4, % 3.4% % 9.2% Universal Truckload Services Inc ,037 1,033 1,192 1,133 1, % (0.7%) % 2.7% USA Truck Inc % (4.4%) % 2.4% Werner Enterprises Inc. 2,003 2,036 2,029 2,139 2,141 2, % 3.1% % 14.3% YRC Worldwide Inc. 4,869 4,851 4,865 5,069 4,901 5, % 0.3% NM NM Total $25,277 $26,529 $27,225 $29,761 $29,927 $31, % 6.1% $2,466 $2,843 $2,994 $3,455 $4,047 $4, % 13.9% PAGE 9

11 PUBLIC COMPARABLES 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 $871 $ % 3.2% $55 $145 $179 $204 $271 $249 NM 10.5% Canadian National Railway Company 8,881 9,952 9,954 10,478 9,659 10, % (1.1%) 4,112 4,624 4,568 4,900 4,837 5, % 2.9% Canadian Pacific Railway Limited 4,970 5,568 5,631 5,582 5,204 5, % (0.6%) 1,378 1,778 2,190 2,434 2,505 2, % 5.7% CSX Corp. 11,795 11,763 12,026 12,669 12,079 12, % (1.0%) 4,446 4,523 4,577 4,764 4,907 5, % 3.8% FreightCar America Inc % 18.3% (8) NM NM Genesee & Wyoming Inc ,569 1,639 2,036 2, % 17.5% % 7.0% The Greenbrier Companies, Inc. 1,174 1,736 1,685 2,121 2,652 2, % 16.2% % 41.0% Kansas City Southern 2,098 2,239 2,369 2,577 2,462 2, % 1.4% ,106 1,087 1, % 5.2% Norfolk Southern Corporation 11,172 11,040 11,245 11,624 10,670 11, % (2.5%) 4,082 4,036 4,169 4,522 4,010 4, % (2.1%) Trinity Industries Inc. 2,938 3,812 4,365 6,170 6,818 6, % 3.3% ,400 1,642 1, % 1.1% Union Pacific Corporation 18,508 19,686 20,684 22,560 22,409 23, % 2.1% 7,341 8,505 9,223 10,657 10,270 11, % 2.2% Westinghouse Air Brake Technologies Corporation 1,968 2,391 2,566 3,044 3,370 3, % 9.0% % 12.5% Total $65,339 $70,451 $73,136 $79,795 $79,071 $82, % 5.5% $23,455 $26,119 $27,987 $31,403 $31,272 $33, % 8.2% Aegean Petroleum Network Inc. $6,965 $7,259 $6,335 $6,662 $4,470 $4,604 (1.5%) (16.9%) $75 $85 $75 $98 $115 $ % 17.7% Costamare Inc % 2.5% % 5.4% Diana Shipping Inc (11.8%) (0.4%) (32.9%) (19.5%) Kirby Corporation 1,850 2,113 2,242 2,566 2,218 2, % (5.7%) % (2.8%) Matson, Inc. 1,463 1,560 1,637 1,714 1,891 2, % 11.0% % 22.3% Neptune Orient Lines Limited 9,211 9,512 8,831 8,617 6,279 6,182 (2.2%) (15.3%) (90) NM 33.2% Nordic American Tankers Limited NM NM (21) NM NM Rand Logistics, Inc % 4.2% % 7.4% SEACOR Holdings Inc. 1,032 1,308 1,247 1,319 1,159 1, % 0.1% % 1.4% Wilh. Wilhelmsen ASA ,403 2,513 NM NM NM NM Total $21,661 $22,993 $21,559 $22,303 $19,514 $20, % (2.6%) $1,299 $1,658 $1,624 $2,080 $2,660 $2, % 8.1% Accuride Corp. $805 $795 $643 $705 $720 $717 (4.3%) 0.8% $74 $65 $43 $75 $87 $90 0.2% 9.9% Dana Holding Corporation 7,544 7,224 6,769 6,617 6,258 6,552 (4.3%) (0.5%) (0.7%) 4.4% Gentherm Incorporated % 10.6% % 12.4% Spartan Motors Inc % 6.3% (12.6%) 34.3% Wabash National Corp. 1,187 1,462 1,636 1,863 2,013 2, % 3.9% NM 14.0% Total $10,331 $10,506 $10,179 $10,504 $10,422 $10, % 4.2% $888 $1,008 $981 $1,084 $1,169 $1, % 15.0% 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