TRANSPORTATION & LOGISTICS

Transcription

1 INDUSTRY UPDATE JANUARY Harris Williams & Co. Ltd is a private limited company authorised and regulated by the Financial Conduct Authority, 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 under company number Directors: Mr. Ned Valentine, Mr. Paul Poggi, Mr. Thierry Monjauze and Mr. Aadil Khan. 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 DEMAND FOR WAREHOUSE SPACE WILL BE STRONG IN 2018 Prime logistics is an attractive asset class for investors that provides a high return and stable cash flow due to the strong user fundamentals, which is largely fueled by e-commerce growth and demand for last-mile logistics," says CBRE report. A combination of factors will come together in 2018 that will result in strong investor appetite for logistics real estate. Strong interest in prime logistics assets continues in most industrial hubs around the world, with $85.8 billion in total investment volume in the first three quarters of 2017, an increase of 12% year-over-year. Material Handling & Logistics TRUCKING SHORTAGE OF TRUCKS IS FORCING COMPANIES TO PAY UP Several factors have converged to overwhelm the trucking market. Freight volumes in December hit near-record levels for that time of year, on the back of a strengthening economy. Retailers are replenishing stocks after one of the strongest holiday sales seasons in recent years. Manufacturers are also shipping more cargo; in December, industrial production had the largest year-over-year gain since 2010, according to the Federal Reserve. What s more, bad weather and a new federal safety rule that took effect in December have crimped the supply of available trucks. Diesel prices are near a three-year high, adding to transportation costs. In the spot market, where shippers hire trucks on short notice, there were about 10 loads waiting to be moved for every available truck in the week ending Jan. 20, compared with three in the same week last year, according to online freight marketplace DAT Solutions LLC. The Wall Street Journal MARINE MAERSK AND IBM PARTNER TO ROLL OUT BLOCKCHAIN JV With a focus on providing more efficient and secure methods for conducting global trade through the usage of blockchain technology, ocean cargo giant A.P. Moller-Maersk and technology powerhouse IBM announced plans this week for a joint venture (JV). IBM and Maersk said that the objective of this JV is to provide a jointly developed global trade digitization platform that is built on open standards and designed for use by the entire global shipping ecosystem, adding that it will address the need to provide more transparency and simplicity in the movement of goods across borders and trading zones. Logistics Management RAIL NEW CSX CHIEF HAS UNFINISHED WORK ON RAILROAD Jim Foote will address investors on CSX s quarterly earnings call to reassure investors that the railroad can complete Hunter Harrison s unfinished work. Citi estimates that large U.S. railroad earnings will rise 20% because of the tax law, versus 7% for the broader market. At the same time, the trucking market is facing a shortage in both drivers and capacity, a new federal safety regulation is expected to further tighten the truck market, which could help switch some freight traffic to the rails. The Wall Street Journal AIR WHY AIRFREIGHT TRAFFIC IS UP Companies are shipping more items by plane to meet customers rising expectations for rapid delivery, prompting a scramble for cargo space that has sent airfreight rates soaring and pushed Amazon.com Inc. and others into the airline business. Global airfreight traffic climbed almost 9% year-over-year in November, the start of the peak shipping season, and rates for airfreight were up 17% annually for the month, the biggest price increase since the aftermath of the financial crisis, according to cargo data provider WorldACD. The 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 Director jkidd@harriswilliams.com +1 (804) James O Malley Vice President jomalley@harriswilliams.com +1 (804) Jon Meredith Vice President jmeredith@harriswilliams.com +1 (804) EUROPE Jeffery Perkins Managing Director jperkins@harriswilliams.com +49 (0) PAGE 1

3 M&A TRANSACTIONS (1,2,3) RECENT M&A TRANSACTIONS Date Sector Target Business Description Acquirer 1/21/2018 Logistics Rossendale Transport Provides bus transportation services Transdev 1/19/2018 Rail Roadway Worker Training Provider of safety, compliance and technical training, targeted services, and videos for the railroad industry RailPros 1/18/2018 Logistics AutoParts Warehouse Distributor of automotive and truck parts Parts Authority; The Jordan Company 1/17/2018 Logistics Transflo Mobile, telematics, and business process automotation provider to the transportation industry True Wind Capital Management 1/10/2018 Logistics AJR LLC Freight brokerage and logistics company GlobalTranz Enterprises, Inc. 1/9/2018 Logistics Brambles Ltd Provides supply chain support services and information management solutions Grey Mountain Partners 1/8/2018 Logistics The Irwin Brown Offers customs brokerage and international freight forwarding CH Powell 1/4/2018 ASF Group LLC Provides freight transportation services ContainerPort Group, Inc. 1/4/2018 Complete Disposal Co., Inc. Provides integrated solid waste services Casella Waste Systems, Inc. 1/2/2018 Logistics Redwood Logistics LLC Provides freight transportation services CI Capital Partners LLC; Simplified Logistics LLC 1/2/2018 Belmont Enterprises, Inc. Provides trucking and logistics services Smokey Point Distributing, Inc. 12/14/2017 Logistics Channel Distribution Corp. Operates as a full service warehouse and distribution center Wind Point Advisors LLC; St. George Logistics Corp. 12/13/2017 Logistics Shipt, Inc. Provides a local network of reliable shoppers and connects members to groceries and everyday essentials Target Corporation 12/12/2017 Logistics G. Bosman Transport Nisse BV Provides agri and food chain logistics services AB Transport Group BV 12/11/2017 Logistics Grocontinental Ltd. Provides logistics services for food industry AGRO Merchants Group 12/11/2017 Logistics MR Coal Marketing & Trading LLC Provides logistics services Blackjewel LLC *Denotes pending transaction PAGE 2

4 PUBLIC MARKETS OVERVIEW (1) TEV / LTM EBITDA TEV / 2018E EBITDA 13.8x 11.5x 12.1x 11.3x 9.7x 8.6x 8.8x 7.4x 8.7x 6.9x AVERAGE REVENUE GROWTH ( ) AVERAGE REVENUE GROWTH ( P) 10.4% 13.7% 8.4% 12.9% 4.7% 8.4% 2.0% 6.4% (3.3%) 5.0% AVERAGE EBITDA GROWTH ( ) AVERAGE EBITDA GROWTH ( P) 14.4% 30.4% 13.6% 21.5% 3.4% 19.7% 3.0% 12.8% (0.4%) 6.4% PAGE 3

5 STOCK PRICE PERFORMANCE (1) MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH) 6.1% 56.2% S&P % 4.4% 30.0% 52.5% 2.4% S&P % 2.3% 19.9% 2.2% (1.5%) TRAILING TWELVE MONTHS (Indexed to January 19th, 2017) 60% 50% 40% 30% 20% 10% 0% (10%) (20%) (30%) (40%) Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 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 A portfolio company of has been recapitalized by has merged with is merging with an operating company of has merged with in a recapitalization by and DEEP EXPERIENCE ACROSS T&L SECTORS THIRD-PARTY LOGISTICS RAIL & RAIL SERVICES MARINE TRANSPORTATION TRANSPORTATION EQUIPMENT NICHE TRANSPORTATION AUTOMOTIVE & HEAVY DUTY VEHICLE AIR TRANSPORTATION PAGE 5

7 OUR FIRM Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities. Our clients benefit from our deep-sector experience, integrated industry intelligence and collaboration across the firm, and our commitment to learning what makes them unique. For more information, visit our website. 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 Jan-17 Jul-17 Current 2018E 2019P & Logistics Air Transport Services Group, Inc. 2, % 69.8% % 7.0x 8.4x 9.0x 6.3x 5.6x Atlas Air Worldwide Holdings, Inc. 3, % 22.0% % 8.5x 9.3x 8.6x 7.2x 6.5x C.H. Robinson Worldwide, Inc. 14, % 29.3% % 12.6x 12.0x 17.2x 15.3x 14.3x Deutsche Post AG 67, % 48.8% % 9.0x 10.3x 13.7x 9.9x 9.2x DSV A/S 16, % 74.3% % 15.8x 18.0x NM 16.5x 15.5x Echo Global Logistics, Inc 1, % 20.7% % 19.1x 17.9x NM 13.9x 11.7x Expeditors International of Washington, Inc. 11, % 24.6% % 12.2x 13.7x 15.3x 14.2x 13.4x FedEx Corporation 87, % 47.7% % 9.3x 8.1x 10.6x 8.9x 8.0x Forward Air Corporation 1, % 27.8% % 10.8x 11.2x 12.9x 11.4x 10.5x Hub Group, Inc. Class A 1, % 16.1% % 9.2x 9.2x 14.0x 11.1x 10.4x J.B. Hunt Transport Services, Inc. 14, % 30.8% % 10.7x 10.4x 14.0x 12.2x 10.8x Kuhne & Nagel International AG 21, % 38.9% % 13.9x 19.0x 19.3x 16.1x 15.0x Landstar System, Inc. 4, % 31.6% % 13.5x 13.0x 16.4x 13.9x 13.0x Panalpina Welttransport (Holding) AG 3, % 37.0% % 14.8x 18.9x NM 18.2x 15.1x Roadrunner Systems, Inc (1.5%) (27.0%) % NA NA 7.4x NA NA Ryder System, Inc. 9, % 19.0% % 5.4x 5.2x 5.8x 5.4x 5.0x TFI International Inc. 3, % 2.8% % 11.1x 9.1x 9.1x 7.7x 7.3x United Parcel Service, Inc. Class B 130, % 15.8% % 15.6x 14.8x 17.0x 11.5x 10.9x Universal Logistics Holdings, Inc % 70.9% % 7.9x 9.0x 15.2x NA NA XPO Logistics, Inc. 17, % 122.2% % 8.8x 10.4x 13.8x 10.6x 9.7x Median 6.1% 30.0% 98.4% 10.8x 10.4x 13.8x 11.5x 10.6x ArcBest Corporation $1,096 $ % 24.9% $ % 6.2x 4.5x 7.1x 5.9x 5.5x Celadon Group, Inc (8.6%) (32.4%) % 7.4x NA 6.4x NA NA Covenant Group, Inc. Class A (0.4%) 47.5% % 4.7x 4.5x 6.7x 5.9x 5.3x Heartland Express, Inc. 1, % 17.6% % 8.4x 9.8x 12.3x 9.2x 8.1x Knight-Swift Holdings Inc. Class A 5, % 40.4% % 10.4x 11.4x NM 6.0x 5.3x Marten Transport, Ltd. 1, % 58.7% % 5.9x 6.7x 9.0x 7.6x 6.7x Old Dominion Freight Line, Inc. 12, % 69.0% % 10.7x 11.0x 15.9x 13.6x 12.4x P.A.M. Services, Inc % 56.8% % 5.8x 4.8x 7.1x NA NA Saia, Inc. 2, % 64.2% % 11.1x 11.5x 16.3x 9.9x 8.8x Universal Logistics Holdings, Inc % 70.9% % 7.9x 9.0x 15.2x NA NA USA Truck, Inc % 123.0% % 7.7x 11.5x 15.2x 6.3x 5.5x Werner Enterprises, Inc. 3, % 56.2% % 6.2x 6.2x 8.4x 7.5x 6.8x YRC Worldwide Inc. 1, % 24.7% % 4.4x 4.5x 5.1x 4.0x 3.6x Median 4.4% 56.2% 97.7% 7.4x 7.8x 8.7x 6.9x 6.1x 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 Jan-17 Jul-17 Current 2018E 2019P & Logistics Rail and Rail Services American Railcar Industries, Inc. $1,189 $39.83 (1.5%) (13.7%) $ % 6.9x 7.5x 7.6x 8.2x 7.7x Canadian National Railway Company 69, (0.5%) 15.7% % 12.6x 13.5x 13.1x 11.9x 11.1x Canadian Pacific Railway Limited 33, % 24.0% % 12.1x 11.7x 12.6x 11.7x 11.1x CSX Corporation 63, % 29.7% % 10.9x 11.2x 12.1x 11.6x 10.6x FreightCar America, Inc (2.3%) 11.3% % 6.0x 6.0x NM NM 5.4x Genesee & Wyoming, Inc. Class A 7, % 9.0% % 12.6x 11.4x 12.1x 10.3x 9.7x Greenbrier Companies, Inc. 1, (1.0%) 10.2% % 4.5x 4.7x 6.7x 5.8x 5.9x Kansas City Southern 14, % 25.1% % 10.8x 11.8x 11.9x 10.7x 9.9x Norfolk Southern Corporation 53, % 33.3% % 10.4x 10.2x 12.1x 11.3x 10.6x Trinity Industries, Inc. 8, (1.6%) 28.7% % 6.8x 8.0x 10.0x 10.4x 9.4x Union Pacific Corporation 127, % 30.1% % 11.2x 10.1x 12.9x 11.9x 11.3x Westinghouse Air Brake Technologies Corporation 9, % (3.9%) % 16.4x 15.8x 14.1x 14.0x 13.1x Median 2.4% 19.9% 95.8% 10.8x 10.7x 12.1x 11.3x 10.2x Aegean Petroleum Network Inc. $979 $ % (55.6%) $ % 5.5x 6.3x 7.4x 9.2x 7.8x Costamare Inc. 1, % 3.1% % 5.4x 6.2x 6.4x 7.0x 6.5x Diana Shipping Inc (1.7%) (1.5%) % NM NM NM 11.5x 7.7x Kirby Corporation 5, % 13.6% % 9.0x 9.5x 12.1x 10.7x 9.6x Matson, Inc. 2, % (15.3%) % 9.7x 9.0x 9.1x 7.0x 6.6x Nordic American Tankers Limited % (71.1%) % 8.8x 11.4x 9.3x 7.4x 5.2x Rand Logistics, Inc (63.9%) (93.8%) % 7.6x 10.1x 10.1x NA NA SEACOR Holdings Inc. 1, (0.3%) 3.6% % NM 11.6x 12.3x 9.8x 8.8x Wallenius Wilhelmsen Logistics ASA 6, % 65.6% % NM NM 19.1x 8.0x 7.0x Median 2.3% (1.5%) 64.5% 8.2x 9.5x 9.7x 8.6x 7.4x Dana Incorporated 6, % 72.9% % 6.3x 7.2x 8.8x 6.8x 6.4x Gentherm Incorporated 1, % (4.6%) % 8.5x 9.4x 8.2x 7.2x 6.8x Spartan Motors, Inc (13.1%) 80.1% % 14.0x NM NM 12.5x 7.9x Wabash National Corporation 1, % 32.0% % 4.9x 7.4x 9.9x 7.6x 8.3x Median 2.2% 52.5% 87.3% 7.4x 7.4x 8.8x 7.4x 7.4x PAGE 8

10 PUBLIC COMPARABLES (1) Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) E 2019P '14-17 '17-19P E 2019P '14-17 '17-19P & Logistics Air Transport Services Group, Inc ,021 1,162 1, % 13.3% % 17.7% Atlas Air Worldwide Holdings, Inc. 1,799 1,823 1,840 2,123 2,295 2, % 4.5% % 17.0% C.H. Robinson Worldwide, Inc. 13,470 13,476 13,144 14,660 15,623 16, % 5.6% , % 9.7% Deutsche Post AG 75,117 65,681 63,423 75,358 78,307 81, % 3.9% 4,812 3,587 5,013 6,479 6,962 7, % 7.3% DSV A/S 8,645 7,563 10,066 12,462 13,061 13, % 4.5% ,027 1, % 7.1% Echo Global Logistics, Inc 1,173 1,512 1,716 1,877 2,084 2, % 10.5% % 29.7% Expeditors International of Washington, Inc. 6,565 6,617 6,098 6,820 7,228 7, % 5.6% % 7.1% FedEx Corporation 47,453 50,365 60,319 64,593 67,923 71, % 4.9% 4,951 6,165 8,420 8,810 9,930 10, % 11.4% Forward Air Corporation ,096 1,189 1, % 7.1% % 10.8% Hub Group, Inc. Class A 3,571 3,526 3,573 3,973 4,348 4, % 8.1% % 14.4% J.B. Hunt Transport Services, Inc. 6,165 6,188 6,555 7,190 7,190 8, % 11.8% 920 1,054 1,088 1,007 1,007 1, % 17.1% Kuhne & Nagel International AG 19,118 17,376 16,774 19,564 20,946 21, % 5.9% 1,073 1,069 1,084 1,233 1,366 1, % 8.8% Landstar System, Inc. 3,185 3,321 3,168 3,604 3,941 4, % 7.7% % 10.9% Panalpina Welttransport (Holding) AG 7,327 6,081 5,274 5,881 6,137 6,402 (7.1%) 4.3% (10.0%) 25.0% Roadrunner Systems, Inc. 1,873 1,995 1, NM NA NM NA Ryder System, Inc. 6,639 6,572 6,787 7,225 7,532 7, % 4.8% 1,505 1,649 1,738 1,727 1,844 2, % 7.7% TFI International Inc. 3,363 3,150 3,038 3,865 3,948 3, % 1.7% % 8.4% United Parcel Service, Inc. Class B 58,256 58,050 60,502 65,230 68,656 72, % 5.5% 7,991 9,429 7,295 10,636 11,409 12, % 6.4% Universal Logistics Holdings, Inc. 1,192 1,129 1, NM NA NM NA XPO Logistics, Inc. 2,357 7,623 14,619 15,086 16,024 16, % 5.5% ,158 1,365 1,603 1, % 13.5% Total $268,638 $263,626 $281,679 $311,628 $327,595 $344, % 6.4% $25,247 $27,480 $29,896 $35,662 $39,097 $42, % 12.8% ArcBest Corporation $2,613 $2,667 $2,700 $2,839 $3,038 $3, % 5.4% $154 $167 $139 $155 $189 $ % 13.9% Celadon Group, Inc , NM NA NM NA Covenant Group, Inc. Class A (0.8%) 6.2% % 14.3% Heartland Express, Inc (10.7%) 10.3% (6.3%) 18.1% Knight-Swift Holdings Inc. Class A 1,102 1,183 1,118 2,424 5,445 5, % 54.0% % 53.3% Marten Transport, Ltd % 11.2% % 14.0% Old Dominion Freight Line, Inc. 2,788 2,972 2,992 3,347 3,746 4, % 10.0% % 12.0% P.A.M. Services, Inc NM NA NM NA Saia, Inc. 1,272 1,221 1,218 1,369 1,521 1, % 10.3% % 16.3% Universal Logistics Holdings, Inc. 1,192 1,129 1, NM NA NM NA USA Truck, Inc (9.9%) 9.4% (25.5%) 44.3% Werner Enterprises, Inc. 2,139 2,094 2,009 2,104 2,262 2,413 (0.6%) 7.1% % 11.5% YRC Worldwide Inc. 5,069 4,832 4,698 4,894 5,175 5,459 (1.2%) 5.6% % 17.4% Total $20,194 $20,050 $19,690 $19,437 $23,950 $25, % 12.9% $2,402 $2,768 $2,520 $2,610 $3,506 $3, % 21.5% PAGE 9

11 PUBLIC COMPARABLES (1) Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) E 2019P '14-17 '17-19P E 2019P '14-17 '17-19P & Logistics Rail and Rail Services American Railcar Industries, Inc. $733 $889 $639 $465 $493 $522 (14.1%) 6.0% $204 $272 $182 $142 $144 $157 (11.4%) 5.1% Canadian National Railway Company 10,986 9,857 9,085 10,047 10,047 11,759 (2.9%) 8.2% 5,137 5,021 4,934 5,269 5,269 6, % 8.3% Canadian Pacific Railway Limited 5,994 5,246 4,704 5,049 5,049 5,887 (5.6%) 8.0% 2,640 2,431 2,414 2,661 2,661 3, % 8.2% CSX Corporation 12,669 11,811 11,069 11,408 11,408 12,050 (3.4%) 2.8% 4,764 4,792 4,805 5,088 5,088 5, % 8.5% FreightCar America, Inc (10.1%) 3.2% (10) (3) 10 NM NA Genesee & Wyoming, Inc. Class A 1,639 2,000 2,002 2,204 2,344 2, % 6.1% % 9.4% Greenbrier Companies, Inc. 2,203 2,605 2,681 2,176 2,176 2,480 (0.4%) 6.7% % 1.6% Kansas City Southern 2,577 2,419 2,397 2,627 2,627 2, % 6.1% 1,106 1,098 1,121 1,243 1,243 1, % 8.9% Norfolk Southern Corporation 11,624 10,511 9,888 10,551 10,551 11,490 (3.2%) 4.4% 4,526 3,938 4,131 4,641 4,641 5, % 4.0% Trinity Industries, Inc. 6,170 6,393 4,588 3,779 3,723 3,712 (15.1%) (0.9%) 1,402 1,528 1, (15.5%) 0.5% Union Pacific Corporation 23,988 21,813 19,941 21,240 21,240 23,216 (4.0%) 4.5% 10,657 10,064 9,310 10,166 10,166 11,331 (1.6%) 5.6% Westinghouse Air Brake Technologies Corporation 3,044 3,308 2,931 3,803 3,984 4, % 4.6% % 9.9% Total $82,227 $77,625 $70,448 $73,784 $73,968 $81,178 (3.3%) 5.0% $31,857 $30,912 $29,502 $31,643 $31,741 $35,995 (0.4%) 6.4% Aegean Petroleum Network Inc. $6,662 $4,232 $4,076 $5,792 $6,560 $8,087 (4.6%) 18.2% $54 $81 $214 $84 $110 $ % 22.8% Costamare Inc (5.2%) (0.7%) (6.5%) (0.7%) Diana Shipping Inc (4.6%) 33.8% (12) (11.4%) 102.7% Kirby Corporation 2,566 2,148 1,771 2,113 2,760 2,910 (6.3%) 17.4% (15.3%) 14.7% Matson, Inc. 1,714 1,885 1,942 2,038 2,089 2, % 3.6% % 4.8% Nordic American Tankers Limited (23.7%) 23.6% (7.5%) 48.8% Rand Logistics, Inc NM NA NM NA SEACOR Holdings Inc. 1,319 1, (21.8%) 2.9% (25.7%) 23.7% Wallenius Wilhelmsen Logistics ASA ,335 3,984 4, % 11.2% % 26.5% Total $13,710 $10,874 $9,932 $14,629 $16,842 $18, % 13.7% $1,785 $1,906 $1,568 $1,838 $2,319 $2, % 30.4% Dana Incorporated 6,617 6,060 5,826 7,200 7,643 7, % 5.0% , % 10.0% Gentherm Incorporated ,050 1, % 7.7% % 7.3% Spartan Motors, Inc % 12.9% % 51.2% Wabash National Corporation 1,863 2,027 1,845 1,755 2,022 2,050 (2.0%) 8.1% % 10.3% Total $9,799 $9,494 $9,180 $10,639 $11,517 $12, % 8.4% $1,012 $991 $1,017 $1,189 $1,362 $1, % 19.7% 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. Harris Williams & Co. Ltd is a private limited company authorised and regulated by the Financial Conduct Authority, 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 under company number Directors: Mr. Ned Valentine, Mr. Paul Poggi, Mr. Thierry Monjauze and Mr. Aadil Khan. 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. THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US. The information and views contained in this report were prepared by Harris Williams & Co. ( Harris Williams ). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams judgment and are subject to change without notice. The financial instruments discussed in this report may not be suitable for all investors, and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams prior written consent. Copyright 2018 Harris Williams & Co., all rights reserved. PAGE 11