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 authorised 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 DELIVERING WITH DATA: HOW LOGISTICS COMPANIES ARE SHIPPING With the immediacy technology has brought to life, customer service expectations are at an all-time high. No industry is immune from those expectations, including the logistics industry, where delivery services face greater pressure to get packages to their destination in the most timely and efficient way possible. This rang true over the 2014 holiday season, when trends such as omnichannel retailing and same-day delivery pressured carriers to improve delivery systems or risk losing customers. Forbes TRUCKING DRIVER SHORTAGE MAKES CAPITALIZING ON LOW OIL HARD A chronic shortage of drivers means America's long-haul trucking companies are struggling to capitalize on cheap fuel prices that could allow them to take goods shipments away from railroads. A 50 percent fall in oil prices from their peak last year should have erased some of the cost advantage railroads enjoy, especially for longer hauls. But for customers hoping to save money by switching from train to truck, the lack of drivers makes that harder. Reuters RAIL IANA OFFERS BRIGHT FORECAST FOR 2015 INTERMODAL GROWTH Neither U.S. West Coast port congestion nor the East Coast winter weather could stop intermodal volume growth in 2014 and they won t be able to this year either, the Intermodal Association of North America says. Intermodal volume increased 4.8 percent in 2014 and will likely see similar-sized gains this year, thanks in large part to a boost in consumer spending driven by plunging oil prices and a strengthening U.S. dollar. Journal of Commerce RAIL FOR 2015, FREIGHT RAIL WILL CARRY THE ECONOMY The U.S. economy continues to grow, and strong demand for rail service demonstrates that the freight rail industry is integral to this growth. By providing cost-effective transportation of goods, from lumber to oil to auto parts, freight rail is playing a central role in positive economic trends including rising gross domestic product, improving employment statistics and low gasoline prices. In 2015, the nation s major freight railroads plan to spend an estimated $29 billion which would set an annual record to build, maintain and grow the rail network. AAR MARINE CARRIER ON-TIME RELIABILITY PLUNGES TO NEW LOW AS RATES RISE U.S. West Coast port congestion and the phasing in of major shipping alliances pulled global carrier reliability to a record low, adding an extra sting to rising rates hitting shippers, according to Drewry s most recent Carrier Performance Insight report. The sliver of good news in the report, released Sunday, is that Drewry expects carrier reliability to improve in the coming months, as new alliance services settle down and each carrier group seeks to make their new services more attractive to customers. Journal of Commerce 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) AIR AIR CARGO ENDS 2014 ON A POSITIVE NOTE The International Air Transport Association (IATA) released full-year air cargo data for 2014 showing 4.5% demand growth compared to 2013 measured by freight tonne kilometers (FTKs). That is a significant acceleration from the 1.4% recorded in 2013 over Air cargo market expansion gathered momentum as 2014 progressed. The year finished on a positive note, with growth in December accelerating to 4.9%, compared to December IATA PAGE 1

3 M&A TRANSACTIONS RECENT M&A TRANSACTIONS 1,2 Date Sector Target Business Description Acquirer Pending Logistics Toll Holdings Limited Provides integrated logistics services in the Asia-Pacific region and internationally. Japan Post Bank Co., Ltd. Pending Logistics APL Logistics Ltd Provides global supply chain and logistics services across all modes of transportation. Pending CLP Towne Inc. Doing business as Towne Air Freight. Provides full-service trucking solutions and specializes in time-definite airport-to-airport trucking. Kintetsu World Express, Inc. Forward Air, Inc. Pending Logistics Wheels Group Inc. Provides third party logistics and supply chain solutions in North America. Radiant Global Logistics Pending Logistics Charter Brokerage LLC Non-asset based third party logistics provider to the petroleum and chemical industries. Berkshire Hathaway Inc. Pending Horizon Lines, Inc. Engages in Jones Act container shipping with primary service to ports within the continental United States, Alaska, Hawaii, and Puerto Rico. Matson Navigation Company, Inc. Pending Logistics Neovia Logistics Services, LLC Provides third party contract logistics services, including warehouse management, fulfillment, and distribution solutions. The Goldman Sachs Group Rhone Capital L.L.C. 2/9/2015 Logistics UX Specialized Logistics Provides non-asset based, last mile logistics services including home delivery, assembly and installation, and same-day delivery. XPO Last Mile, Inc. 2/5/2015 Logistics Xpress Solutions, Inc. Provides non-asset based less-than-truckload and truckload solutions with a regional focus in the Midwest. Echo Global Logistics, Inc. 2/4/2015 Rail Railroad Controls Limited Provides railroad signal construction services to the freight and commuter rail industry. 2/2/2015 Logistics Lazer Spot, Inc. Provides outsourced yard management services including trailer spotting and shuttling. Westinghouse Air Brake Technologies Corporation Greenbriar Equity Group 2/2/2015 Logistics PODS Enterprises, Inc. Provides container-based moving and storage services. Ontario Teachers' Pension Plan 2/2/2015 Logistics Linkex, Inc. Provides asset-light, third party logistics services including supply chain design, transportation, warehousing, and last mile solutions. Saia, Inc. 1/30/2015 Logistics GENCO Distribution Systems, Inc. Provides product lifecycle and reverse logistics solutions in North America and internationally. FedEx Corporation 1/26/2015 Cronos Ltd. Provides intermodal marine container leasing services. Bohai Leasing Co., Ltd. 1/26/2015 Taylor Express, Inc. Provides regional dry van, dry bulk for-hire, and dedicated truckload services. Celadon Group Inc. 1/9/2015 Gardewine Group Inc. Provides regional less-than truckload, truckload, and specialized truckload services primarily in Manitoba and Ontario. Mullen Group Ltd. 1/5/2015 Logistics Freightquote.com, Inc. Largest provider of online freight brokerage services in the United States. C.H. Robinson Company, Inc. PAGE 2

4 PUBLIC MARKETS OVERVIEW TEV / LTM EBITDA TEV / 2015P EBITDA 11.5x 10.6x 11.3x 9.5x 10.5x 8.2x 8.4x 7.1x 8.1x 6.2x AVERAGE REVENUE GROWTH ( E) AVERAGE REVENUE GROWTH (2014E 2016P) 11.8% 6.7% 9.8% 6.3% 8.7% 6.2% 7.6% 5.8% 6.0% 5.5% AVERAGE EBITDA GROWTH ( E) AVERAGE EBITDA GROWTH (2014E 2016P) 18.8% 14.9% 12.9% 11.2% 9.0% 10.9% 8.5% 10.8% 7.9% 10.6% PAGE 3

5 STOCK PRICE PERFORMANCE MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH) 12.6% 24.3% Rail & Rail Services 10.7% 21.6% 4.2% 15.0% Logistics Providers 4.2% 13.3% 2.5% (9.3%) TRAILING TWELVE MONTHS (Indexed to February 18, 2014) 40% 30% 20% 10% 0% (10%) (20%) (30%) 2/18/14 5/18/14 8/18/14 11/18/14 2/18/15 S&P 500 Index PAGE 4

6 OUR GROUP Harris Williams & Co. is a leading advisor to the transportation and logistics M&A market. Our & Logistics Group has experience across a broad range of sectors, including third-party logistics, rail and rail services, marine transportation, transportation equipment, niche transportation, automotive and heavy duty vehicle, and airport and aviation services. RECENTLY CLOSED T&L TRANSACTIONS RCL Services Group in partnership with and has sold and to DEEP EXPERIENCE ACROSS T&L SECTORS THIRD-PARTY LOGISTICS RAIL & RAIL SERVICES MARINE TRANSPORTATION TRANSPORTATION EQUIPMENT NICHE TRANSPORTATION AUTOMOTIVE & HEAVY DUTY VEHICLE AIRPORT & AVIATION SERVICES PAGE 5

7 OUR FIRM Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities. Our clients benefit from our deep-sector experience, integrated industry intelligence and collaboration across the firm, and our commitment to learning what makes them unique. For more information, visit our website at Aerospace, Defense & Government Services Building Products & Materials Business Services Consumer Energy & Power Healthcare & Life Sciences Industrials Specialty Distribution Technology, Media & Telecom & Logistics HARRIS WILLIAMS & CO. OFFICE LOCATIONS Boston Two International Place 24th Floor Boston, Massachusetts Phone: +1 (617) Fax: +1 (617) Cleveland 1900 East 9th Street 20th Floor Cleveland, Ohio Phone: +1 (216) Fax: +1 (216) Minneapolis 222 South 9th Street Suite 3350 Minneapolis, Minnesota Phone: +1 (612) Fax: +1 (612) UNITED STATES Philadelphia 1600 Market Street 21st Floor Philadelphia, Pennsylvania Phone: +1 (267) Fax: +1 (267) Richmond (U.S. Headquarters) 1001 Haxall Point 9th Floor Richmond, Virginia Phone: +1 (804) Fax: +1 (804) San Francisco 575 Market Street 31st Floor San Francisco, California 94105, USA Phone: +1 (415) Fax: +1 (415) EUROPE Frankfurt Bockenheimer Landstrasse Frankfurt Germany Phone: Fax: London 63 Brook Street London W1K 4HS, England Phone: +44 (0) Fax: +44 (0) Beijing Hong Kong Mumbai NETWORK OFFICES New Delhi Shanghai PAGE 6

8 PUBLIC COMPARABLES & Logistics Stock Performance Stock Price Change from 52-Week TEV / LTM EBITDA as of TEV / EBITDA TEV Current Prior Month Prior Year High % of High Feb-14 Aug-14 Current 2014E 2015P Agility Public Warehousing Company KSC $2,799 $ % 18.1% $ % 7.7x 9.9x 8.9x NA NA Air Transport Services Group, Inc % 39.4% % 5.0x 5.3x 5.2x 5.1x 4.9x Atlas Air Worldwide Holdings, Inc. 2, % 48.3% % 7.1x 7.8x 8.3x 8.9x 8.3x CH Robinson Worldwide Inc. 11, (2.8%) 31.2% % 12.1x 14.8x 14.2x 14.2x 12.7x Deutsche Post AG 43, % (9.6%) % 10.2x 9.2x 10.1x 8.2x 8.3x DSV A/S 6, % 2.9% % 12.0x 11.8x 13.0x 12.0x 12.1x Echo Global Logistics, Inc (1.4%) 62.7% % 12.3x NM 14.7x 13.7x 11.1x Expeditors International of Washington Inc. 7, % 8.9% % 12.0x 11.6x 12.5x 12.2x 11.2x FedEx Corporation 53, % 35.4% % 6.9x 7.4x 8.3x 8.9x 7.8x Forward Air Corp. 1, % 18.6% % 11.7x 12.3x 12.4x 12.2x 10.1x Hub Group Inc. 1, % (4.1%) % 10.5x 12.6x 10.5x 12.6x 11.5x JB Hunt Transport Services Inc. 10, % 15.0% % 11.1x 11.5x 11.5x 11.6x 10.2x Kuehne + Nagel International AG 16, % 3.4% % 14.3x 14.2x 15.5x 15.7x 14.7x Landstar System Inc. 3, % 15.9% % 13.0x 14.0x 12.0x 12.1x 10.8x Panalpina World Transport Holding Ltd. 2, % (20.4%) % NM 18.9x 18.0x 15.1x 11.9x Roadrunner Systems, Inc. 1, % 12.8% % 10.4x 12.2x 11.3x 11.4x 9.3x Ryder System, Inc. 9, % 31.2% % 5.4x 6.1x 5.8x 5.7x 5.3x TransForce Inc. 3, (5.4%) 10.6% % 8.7x 10.4x 10.2x 9.4x 7.4x United Parcel Service, Inc. 99, (7.0%) 6.4% % 10.8x 12.4x 14.5x 10.9x 10.4x Universal Truckload Services Inc (3.3%) (12.3%) % 9.1x 9.2x 8.6x 8.3x 7.1x UTi Worldwide Inc. 1, % (21.0%) % NM 17.8x NM 17.3x 19.3x World Fuel Services Corp. 4, % 21.9% % 11.2x 12.1x 13.6x 13.2x 11.8x XPO Logistics, Inc. 3, % 51.4% % NM NM NM NM 14.7x Median 4.2% 15.0% 94.0% 10.6x 11.8x 11.5x 12.0x 10.6x ArcBest Corporation $977 $39.78 (5.3%) 23.4% $ % 7.8x 6.7x 6.1x 6.3x 4.9x Celadon Group Inc. 1, % 18.7% % 8.2x 7.3x 9.6x 10.0x 7.8x Con-way Inc. 3, % 16.9% % 6.7x 6.9x 6.4x 6.3x 5.7x Covenant Group, Inc % 193.1% % 5.2x 5.6x 8.3x 8.6x 6.6x Heartland Express, Inc. 2, (3.6%) 28.9% % 12.2x 12.2x 11.1x 9.4x 8.6x Knight Inc. 2, % 50.9% % 9.2x 10.0x 11.0x 11.2x 9.0x Marten Transport Ltd % 16.6% % 5.8x 6.5x 6.9x 6.8x 5.7x Old Dominion Freight Line Inc. 6, % 44.1% % 10.4x 11.8x 11.6x 11.7x 9.8x P.A.M. Services, Inc (5.3%) 181.6% % 4.9x 7.2x 8.5x NA NA Quality Distribution Inc % (22.1%) % 10.5x 11.5x 9.6x 8.5x 7.5x Saia, Inc. 1, (8.8%) 40.2% % 6.9x 9.9x 8.3x 8.3x 6.8x Swift Company 5, (0.8%) 12.2% % 8.6x 8.2x 9.0x 8.7x 7.7x Universal Truckload Services Inc (3.3%) (12.3%) % 9.1x 9.2x 8.6x 8.3x 7.1x USA Truck Inc % 132.4% % 8.3x 7.4x 7.3x 7.8x 7.1x Werner Enterprises Inc. 2, % 19.7% % 6.5x 6.1x 6.9x 7.0x 6.1x YRC Worldwide Inc. 1, % (4.1%) % 8.7x 10.8x 7.9x 7.1x 4.8x Median 2.5% 21.6% 90.5% 8.3x 7.8x 8.4x 8.3x 7.1x PAGE 7

9 PUBLIC COMPARABLES CONT. & Logistics TRANSPORTATION & LOGISTICS Stock Performance Stock Price Change from 52-Week TEV / LTM EBITDA as of TEV / EBITDA TEV Current Prior Month Prior Year High % of High Feb-14 Aug-14 Current 2014E 2015P Rail and Rail Services American Railcar Industries, Inc. $1,519 $ % 10.6% $ % 6.5x 9.5x 7.4x 7.5x 6.8x Canadian National Railway Company 63, % 26.5% % 11.7x 13.1x 13.1x 13.3x 12.7x Canadian Pacific Railway Limited 37, % 22.5% % 14.4x 15.9x 15.0x 15.0x 13.6x CSX Corp. 43, % 29.1% % 7.9x 8.7x 9.2x 9.2x 8.5x FreightCar America Inc % 26.0% % NM NM 12.3x 10.4x 4.0x Genesee & Wyoming Inc. 6, % (0.5%) % 12.4x 13.2x 11.6x 11.4x 10.3x The Greenbrier Companies, Inc. 1, % 48.2% % 9.0x 11.1x 7.5x 7.7x 4.8x Kansas City Southern 15, % 30.2% % 12.7x 14.2x 14.0x 14.0x 12.4x Norfolk Southern Corporation 42, % 21.7% % 8.7x 9.3x 9.4x 9.3x 8.9x Trinity Industries Inc. 7, % (0.5%) % 7.9x 8.1x 5.2x 5.0x 4.8x Union Pacific Corporation 118, % 38.4% % 9.7x 10.5x 11.1x 11.2x 10.1x Westinghouse Air Brake Technologies Corporation 9, % 22.3% % 15.5x 15.9x 15.7x 15.8x 14.1x Median 10.7% 24.3% 93.8% 9.7x 11.1x 11.3x 10.8x 9.5x Aegean Petroleum Network Inc. $1,480 $ % 54.0% $ % 14.1x 14.7x 15.3x 14.0x 10.9x Costamare Inc. 3, % (4.6%) % 13.1x 11.8x 10.0x 9.6x 9.7x Diana Shipping Inc % (42.0%) % NM NM 17.9x 14.3x 11.3x Kirby Corporation 5, % (21.7%) % 11.4x 12.2x 8.1x 8.1x 8.4x Matson, Inc. 1, % 50.6% % 7.6x 8.3x 10.5x 8.6x 8.0x Neptune Orient Lines Limited 6, % (5.5%) % NM NM NM NM 9.9x Nordic American Tankers Limited 1, (10.7%) 4.1% % NM NM 14.1x 12.7x 7.0x Rand Logistics, Inc % (48.4%) % 10.0x 11.2x 7.7x 7.8x 7.0x SEACOR Holdings Inc. 1, % (13.0%) % 10.7x 8.7x 8.1x 7.7x 6.8x Wilh. Wilhelmsen ASA 2, (2.7%) (41.1%) % NM NM 15.8x 5.4x 5.4x Median 4.2% (9.3%) 79.7% 11.0x 11.5x 10.5x 8.6x 8.2x Accuride Corp. $557 $ % 31.1% $ % 11.6x 9.3x 8.1x 7.1x 6.2x Dana Holding Corporation 4, % 13.3% % 5.6x 6.1x 6.1x 5.8x 5.6x Gentherm Incorporated 1, % 57.9% % 11.8x 15.0x 12.3x 11.8x 10.3x Spartan Motors Inc % (4.4%) % NM 17.6x 14.6x 15.6x 8.2x Wabash National Corp. 1, % 6.0% % 8.3x 8.3x 7.3x 7.1x 6.2x Median 12.6% 13.3% 92.1% 10.0x 9.3x 8.1x 7.1x 6.2x PAGE 8

10 PUBLIC COMPARABLES CONT. & Logistics Agility Public Warehousing Company KSC $4,775 $5,039 $4,873 NA NA NA NA NA $199 $254 $296 NA NA NA NA NA Air Transport Services Group, Inc (7.2%) 2.8% (0.5%) 3.3% Atlas Air Worldwide Holdings, Inc. 1,384 1,632 1,643 1,806 1,734 1, % 1.0% % 2.6% CH Robinson Worldwide Inc. 10,336 11,359 12,752 13,441 14,883 16, % 9.1% % 10.0% Deutsche Post AG 68,631 73,191 75,859 68,190 67,082 69,495 (0.2%) 1.0% 3,384 4,129 4,719 5,260 5,241 5, % 4.5% DSV A/S 7,639 7,937 8,439 7,895 7,908 8, % 1.9% % 2.8% Echo Global Logistics, Inc ,175 1,357 1, % 16.9% % 20.6% Expeditors International of Washington Inc. 6,162 5,992 6,080 6,555 6,948 7, % 6.3% (1.0%) 7.6% FedEx Corporation 39,304 42,680 44,287 45,371 47,700 50, % 5.5% 4,506 5,367 5,597 6,023 6,869 7, % 14.4% Forward Air Corp , % 17.4% % 18.9% Hub Group Inc. 2,752 3,124 3,374 3,550 3,802 4, % 6.8% % 11.6% JB Hunt Transport Services Inc. 3,678 4,058 4,527 6,176 6,786 7, % 10.4% ,039 1, % 12.6% Kuehne + Nagel International AG 17,351 18,699 19,290 21,397 21,226 22, % 2.8% 1, ,070 1,022 1,091 1,182 (0.5%) 7.6% Landstar System Inc. 2,628 2,771 2,665 3,158 3,479 3, % 8.7% % 9.2% Panalpina World Transport Holding Ltd. 6,954 7,227 7,589 6,790 7,473 7,806 (0.8%) 7.2% (5.4%) 25.0% Roadrunner Systems, Inc ,073 1,361 1,826 2,227 2, % 14.8% % 18.3% Ryder System, Inc. 6,051 6,257 6,419 6,663 6,847 7, % 4.3% 1,290 1,396 1,459 1,637 1,764 1, % 7.8% TransForce Inc. 2,378 2,822 2,620 3,168 3,660 3, % 9.0% % 15.6% United Parcel Service, Inc. 53,105 54,127 55,438 58,098 60,195 63, % 4.4% 7,830 3,182 8,864 9,063 9,581 10, % 6.6% Universal Truckload Services Inc ,037 1,033 1,191 1,253 1, % 4.6% % 12.8% UTi Worldwide Inc. 4,550 4,914 4,608 4,450 4,284 4,392 (0.7%) (0.7%) NM NM World Fuel Services Corp. 34,623 38,945 41,562 45,255 40,121 43, % (2.2%) % 11.7% XPO Logistics, Inc ,301 4,187 6,150 NM NM 3 (20) (28) NM NM Total $276,154 $295,087 $307,211 $309,820 $314,728 $334, % 6.3% $22,746 $19,995 $26,747 $28,208 $30,503 $33, % 11.2% Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth E 2015P 2016P '11-14E '14E-16P E 2015E 2016P '11-14E '14E-16P ArcBest Corporation $1,908 $2,066 $2,300 $2,598 $2,804 $3, % 8.0% $82 $70 $104 $154 $199 $ % 22.0% Celadon Group Inc % 11.9% % 19.8% Con-way Inc. 5,290 5,580 5,473 5,812 6,188 6, % 6.1% % 9.9% Covenant Group, Inc % 5.6% % 22.0% Heartland Express, Inc % 0.5% % 10.3% Knight Inc ,089 1,282 1, % 14.0% % 18.8% Marten Transport Ltd % 4.0% % 13.7% Old Dominion Freight Line Inc. 1,904 2,135 2,338 2,780 3,132 3, % 11.5% % 16.9% P.A.M. Services, Inc NA NA NA NA NA NA NA NA NA NA Quality Distribution Inc ,035 1, % 5.9% % 9.8% Saia, Inc. 1,030 1,099 1,139 1,275 1,327 1, % 6.2% % 18.1% Swift Company 3,779 3,976 4,118 4,291 4,548 4, % 7.0% % 11.3% Universal Truckload Services Inc ,037 1,033 1,191 1,253 1, % 4.6% % 12.8% USA Truck Inc % 5.2% % 12.9% Werner Enterprises Inc. 2,003 2,036 2,029 2,139 2,219 2, % 4.6% % 10.7% YRC Worldwide Inc. 4,869 4,851 4,865 5,100 5,265 5, % 4.7% NM NM Total $25,905 $27,143 $27,919 $30,905 $32,804 $35, % 6.7% $2,536 $2,917 $3,080 $3,598 $4,274 $4, % 14.9% PAGE 9

11 PUBLIC COMPARABLES CONT. & Logistics Rail and Rail Services American Railcar Industries, Inc. $519 $712 $751 $749 $842 $ % 5.8% $55 $145 $179 $203 $227 $239 NM 8.7% Canadian National Railway Company 8,881 9,952 9,954 10,372 10,388 11, % 3.5% 4,112 4,624 4,568 4,820 5,046 5, % 6.1% Canadian Pacific Railway Limited 4,970 5,568 5,631 5,693 5,730 6, % 4.9% 1,378 1,778 2,190 2,470 2,729 3, % 10.5% CSX Corp. 11,795 11,763 12,026 12,666 12,917 13, % 3.7% 4,446 4,523 4,577 4,779 5,122 5, % 7.3% FreightCar America Inc % NM (8) % NM Genesee & Wyoming Inc ,569 1,641 1,627 1, % 3.2% % 9.6% The Greenbrier Companies, Inc. 1,174 1,736 1,685 2,209 2,605 2, % 12.9% % 33.2% Kansas City Southern 2,098 2,239 2,369 2,593 2,720 2, % 7.0% ,109 1,246 1, % 12.8% Norfolk Southern Corporation 11,172 11,040 11,245 11,675 11,655 12, % 3.2% 4,073 4,036 4,169 4,547 4,780 5, % 6.5% Trinity Industries Inc. 2,938 3,812 4,365 6,123 6,640 6, % 2.4% ,469 1,517 1, % (0.2%) Union Pacific Corporation 18,508 19,686 20,684 23,966 24,957 26, % 5.6% 7,341 8,505 9,223 10,581 11,778 12, % 10.3% Westinghouse Air Brake Technologies Corporation 1,968 2,391 2,566 3,031 3,321 3, % 8.8% % 12.3% Total $65,339 $70,451 $73,136 $81,296 $84,229 $89, % 5.5% $23,446 $26,139 $27,989 $31,420 $34,208 $37, % 10.6% Aegean Petroleum Network Inc. $6,965 $7,259 $6,335 $6,977 $7,121 $7, % 5.4% $75 $85 $75 $111 $138 $ % 18.1% Costamare Inc % 3.0% % 5.0% Diana Shipping Inc (11.9%) 19.1% (31.2%) 17.3% Kirby Corporation 1,850 2,113 2,242 2,495 2,439 2, % 0.9% % 1.1% Matson, Inc. 1,463 1,560 1,637 1,730 1,879 2, % 9.2% % 9.6% Neptune Orient Lines Limited 9,211 9,512 8,831 8,716 8,704 9,268 (1.8%) 3.1% (90) NM NM Nordic American Tankers Limited % 16.5% 10 7 (22) NM 22.9% Rand Logistics, Inc % 0.7% % 11.1% SEACOR Holdings Inc. 1,032 1,308 1,247 1,322 1,392 1, % 3.2% % 7.6% Wilh. Wilhelmsen ASA ,603 2,562 2,640 NM 0.7% NM 5.0% Total $21,661 $22,993 $21,559 $24,812 $25,184 $26, % 6.2% $1,301 $1,648 $1,626 $2,411 $2,868 $3, % 10.9% Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth E 2015P 2016P '11-14E '14E-16P E 2015E 2016P '11-14E '14E-16P Accuride Corp. $805 $795 $643 $705 $740 $744 (4.3%) 2.8% $74 $65 $43 $78 $90 $94 1.8% 9.5% Dana Holding Corporation 7,544 7,224 6,769 6,618 6,762 7,193 (4.3%) 4.3% % 7.0% Gentherm Incorporated , % 12.6% % 16.3% Spartan Motors Inc % 5.7% (9.5%) NM Wabash National Corp. 1,187 1,462 1,636 1,859 2,003 1, % 3.7% NM 10.5% Total $10,331 $10,506 $10,179 $10,503 $10,958 $11, % 5.8% $888 $1,011 $972 $1,124 $1,214 $1, % 10.8% PAGE 10

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