transportation & logistics · the rule’srequirements. upon beginning use of an eld, drivers...

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TRANSPORTATION & LOGISTICS

0

INDUSTRY UPDATE │ DECEMBER 2015

PAGE |

www.harriswilliams.com

WHAT WE’RE READING

1

CONTENTS

M&A TRANSACTIONS

PUBLIC MARKETS OVERVIEW

STOCK PRICE PERFORMANCE

OUR GROUP

CONTACTS

UNITED STATES

Frank MountcastleManaging [email protected]+1 (804) 915-0124

Jason BassManaging [email protected]+1 (804) 915-0132

Joe ConnerManaging Director [email protected]+1 (804) 915-0151

Jeff BurkettDirector [email protected] +1 (804) 932-1334

Jershon JonesDirector [email protected]+1 (804) 932-1356

Jeff KiddVice President [email protected] +1 (804) 915-0178

EUROPE

Jeffery PerkinsManaging Director [email protected]+49 (0) 69 3650638 00



TRUCKING | ELECTRONIC LOGGING DEVICE MANDATE SET

A federal rule to require truck operators to use electronic logging devices to keeprecords of duty status is slated to be published in the Federal Register on Friday,the Federal Motor Carrier Safety Administration has announced. The rule will takeeffect Dec. 11, 2017, giving carriers and drivers a two-year window to comply withthe rule’s requirements. Upon beginning use of an ELD, drivers will no longer berequired to keep and maintain paper logs. They will, however, be required tomaintain supporting documentation and submit them to their carrier or, for owner-operators, keep them on file.

Commercial Carrier Journal

MARINE | NEW SHIPPING CONTAINER RULE RILES EXPORTERS

Retailers, manufacturers and farmers world-wide are protesting a new marineshipping safety rule they say will raise transport costs and cause delays at portsworldwide. The rule, which kicks in next July in 171 countries, requires exporters tocertify the weight of containers before they’re loaded onto ships. Carriers sayaccurate weights are needed because overloaded containers frequentlydamage cargo and even cause ships to capsize. But shippers in many countriessay they are ill-equipped to weigh so many containers. Some say they learnedabout the rule only recently and are still in the dark about key details, includinghow it will be enforced.

Wall Street Journal

AIR | AIR CARGO MARKET FORECAST TO STAY SUBDUED IN 2016

The air cargo market will remain weak through 2016 due to sluggish world tradegrowth, the International Air Transport Association said. Demand is expected toaccelerate next year to 3 percent from 1.9 percent in 2015, slightly ahead of GDPgrowth, which is set to average 2.7 percent, IATA forecast in its 2016 industryoutlook. “A tough global economic environment and feeble world trade havesubdued air cargo demand,” the industry body said. “Emerging markets havestruggled — a slowdown in China has sent commodity exporters wobbling.”

Journal of Commerce

RAIL | RAIL REFORM BILL ON TRACK TO CLEAR CONGRESS THIS WEEK

U.S. lawmakers are expected to pass an overhaul of the Surface TransportationBoard, giving the nation’s main freight rail regulator more teeth to crackdown onservice issues and boost competition in the industry. The bill’s sponsors say they areconfident the legislation will arrive on President Obama’s desk before the newyear. Sens. John Thune, R-S.D., and Bill Nelson, D-Fla, introduced the SurfaceTransportation Board Reauthorization Act of 2015 in March. Under Thune andNelson’s plan, the STB would gain expanded investigative powers, additionalfunding and two more chairs, bringing the total membership from three to five.

Journal of Commerce

The early holiday shipping season featured more online purchases, which couldhelp to ensure smooth package delivery flow, experts said. Research firmShopperTrak calculated retailers’ in-store sales fell 10% to $20.4 billion on Nov. 27,the day after Thanksgiving known as Black Friday. But on Cyber Monday, whichwas the next business day, Nov. 30, online sales rose 6% to $3 billion, according toAdobe Systems Inc. One sign that shipping patterns will be spread out was the 26%rise in online transactions for the Nov. 28-29 weekend, and an 18% rise on CyberMonday, according to International Business Machines Corp.

Transport Topics

LOGISTICS | GROWTH OF WEB-BASED SALES LIFTS HOLIDAY SEASON

http://www.harriswilliams.com/

mailto:[email protected]







http://www.ccjdigital.com/electronic-logging-device-mandate-set-for-publication-will-take-effect-dec-2017/

http://www.wsj.com/articles/new-shipping-container-rule-riles-exporters-1449243222

http://www.joc.com/air-cargo/air-cargo-market-stay-subdued-2016-iata-says_20151210.html

http://www.joc.com/regulation-policy/transportation-regulations/us-transportation-regulations/rail-reform-bill-track-clear-congress-week_20151209.html

http://www.ttnews.com/articles/petemplate.aspx?storyid=40223&t=Growth-of-Web-Based-Sales-Lifts-Start-of-Holiday-Season-

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Date Sector Target Business Description Acquirer

12/9/2015 Logistics United Transportation

Co LLC, Motor Fuel

Delivery Fleet

Prov ides motor fuel delivery serv ices. Sentinel Transportation LLC

12/7/2015* Marine Neptune Orient Lines

Limited

Owns and operates charter vessels and other related assets and

provides global cargo container transportation serv ices.

CMA CGM S.A.

12/1/2015 Logistics Optimal Freight, LLC Provides truckload, less-than-truckload, intermodal, air, ocean, and

freight management serv ices.

Transport America, Inc.

12/1/2015 Logistics Bear Transportation

Serv ices, LP

Prov ides less-than-truckload and truckload freight brokerage

serv ices.

ABF Logistics I I , Inc.

11/18/2015 Logistics The Secor Group, Inc. Prov ides moving, stroage, and logistics serv ices. The Suddath Companies

11/9/2015* Equipment TAL International Group,

Inc.

Leases intermodal transportation equipment and provides maritime

container management serv ices worldwide.

Triton Container

International Limited

11/4/2015 Logistics Juno Logistics Prov ides non-asset based, global third party logistics. Sojitz Logistics Corporation

11/2/2015 Logistics Copper Logistics, Inc. Prov ides domestic and international asset-light freight forwarding

serv ices.

Radiant Logistics, Inc.

11/2/2015 Logistics Dunbar Armored, Inc.,

Global Logistics

Operations

Prov ides armored logistics serv ices and cash management solutions. Loomis AB

10/29/2015* Logistics TransForce Waste

Management Segment

Prov ides an extended range of serv ices for residual materials

management in the residential, municipal, industrial, commercial,

and institutional sectors.

GFL Env ironmental Inc.

10/28/2015 Rail Pacific Imperial

Railroad, Inc.

Owns and operates shortline and freight railroad in California. Conatus Capital Group,

Inc.

10/21/2015 Logistics Courier Advisory Group

Inc.

Prov ides courier and managed delivery serv ices for pharmacy,

medical, retail, optical, and banking industries.

R.R. Donnelley Logistics,

Inc.

10/20/2015 Logistics Unishippers Global

Logistics, LLC

Provides non-asset based, third party logistics serv ices to small to

midsized businesses.

Ridgemont Equity Partners

10/13/2015 Equipment Great Western Leasing

& Sales, Inc.

Prov ides full-serv ice, integrated solutions to the flatbed and

specialized trailer industy.

Argosy Capital; Argosy

Investment Partners V,

L.P.; Headhaul Capital

10/9/2015* Logistics UTi Worldwide Inc. Operates as a non-asset-based supply chain serv ices and solutions

company.

DSV A/S

10/7/2015 Air ACP Jets LLC Offers comprehensive aircraft charter and management serv ices. Jetflite International

10/6/2015 Logistics Torrey Pines

Transportation, Inc.

Prov ides chauffeured corporate ground transportation serv ices to

corporate travelers, group managers, and private indiv iduals in San

Diego.

Marcou Transportation

Group, LLC

10/5/2015 Logistics SMARTLogix, Inc. Prov ides petroleum management, inventory, and transportation

logistics solutions for the petroleum logistics business in North

America.

SkyBitz, Inc.

10/2/2015 Air Total Airport Serv ices,

Inc.

Prov ides av iation serv ices to airline carriers and airports in North

America.

CCR USA Airport

Management, Inc.

M&A TRANSACTIONS

2

RECENT M&A TRANSACTIONS1,2



*Denotes pending transactions

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3.9%

6.7%

8.3%

10.2%

11.3%

Rail & Rail Services

Marine

Transportation

Equipment

Logistics Providers

Trucking

5.5%

7.4%

7.5%

14.2%

15.8%

Logistics Providers

Transportation

Equipment

Marine

Trucking


(4.3%)

2.1%

3.6%

3.9%

5.1%

Marine

Transportation

Equipment


Logistics Providers

Trucking

3.5%

6.4%

7.8%

8.7%

11.5%

Marine

Logistics Providers

Trucking

Transportation

Equipment


4.7x

5.4x

7.2x

8.2x

9.7x

Trucking

Transportation

Equipment

Marine


Logistics Providers

5.0x

5.0x

8.0x

9.3x

9.8x

Trucking

Transportation

Equipment


Marine

Logistics Providers

PUBLIC MARKETS OVERVIEW

3


TEV / LTM EBITDA TEV / 2015E EBITDA

AVERAGE REVENUE GROWTH (2011 – 2014) AVERAGE REVENUE GROWTH (2014 – 2016P)

AVERAGE EBITDA GROWTH (2011 – 2014) AVERAGE EBITDA GROWTH (2014 – 2016P)


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(32.9%)

(26.9%)

(26.9%)

(22.0%)

(15.5%)

1.3%

Trucking

Marine

Transportation Equipment


Logistics Providers

S&P 500

(12.5%)

(10.6%)

(9.8%)

(9.6%)

(5.6%)

(1.3%)

Marine



Trucking

Logistics Providers

S&P 500

(40%)

(30%)

(20%)

(10%)

0%

10%

20%

30%

Dec-10-2014 Mar-10-2015 Jun-10-2015 Sep-10-2015 Dec-10-2015

Logistics Providers Trucking Rail and Rail Services

Marine Transportation Equipment S&P 500 Index

STOCK PRICE PERFORMANCE

4


(Indexed to December 10, 2014)

TRAILING TWELVE MONTHS

MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH)


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OUR GROUP

Harris Williams & Co. is a leading advisor to the transportation and logistics M&A market. Our Transportation & LogisticsGroup serves companies in a broad range of attractive niches, including third-party logistics (3PL), truck, rail, marineand air transportation, transportation equipment, and the automotive and heavy duty vehicle market.


RECENTLY CLOSED T&L TRANSACTIONS

DEEP EXPERIENCE ACROSS T&L SECTORS

MARINE TRANSPORTATION

NICHE TRANSPORTATION

TRANSPORTATION EQUIPMENT

RAIL & RAIL SERVICES

AUTOMOTIVE & HEAVY DUTY

VEHICLE

THIRD-PARTY LOGISTICS

AIR TRANSPORTATION

5


a portfolio company of

has been acquired byhas been acquired by


has been acquired by


and

in partnership with

and

RCL Services Group

has sold

tohas been acquired by













has acquired



http://www.portlogisticsgroup.com/

http://www.portlogisticsgroup.com/

http://corpjetfin.live.subhub.com/custom/Hawker_Beechcraft_black_h_logo.jpg

http://corpjetfin.live.subhub.com/custom/Hawker_Beechcraft_black_h_logo.jpg

Energy, Power& Infrastructure

IndustrialsHealthcare & Life Sciences

Transportation & Logistics

Aerospace, Defense & Government

Services

Business Services

Building Products & Materials

Technology, Media & Telecom

Specialty Distribution

Consumer

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6

OUR FIRM



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Logistics Providers

Agility Public Warehousing Company K.S.C.P. $1,892 $1.65 (1.7%) (36.0%) $2.61 63.3% 9.0x 9.8x 7.1x NA NA

Air Transport Services Group, Inc. $890 $9.25 (4.4%) 16.2% $10.96 84.4% 5.0x 5.4x 4.6x 4.6x 4.2x

Atlas Air Worldwide Holdings, Inc. $2,408 $40.27 1.5% (13.8%) $59.47 67.7% 8.4x 7.8x 6.2x 6.4x 6.5x

CH Robinson Worldwide Inc. $9,728 $61.51 (9.3%) (14.3%) $77.49 79.4% 14.6x 12.5x 11.0x 10.6x 10.1x

Deutsche Post AG $36,730 $27.37 (6.0%) (16.1%) $34.11 80.2% 9.0x 10.8x 10.7x 8.3x 6.9x

DSV A/S $8,091 $39.82 (2.1%) 29.7% $42.49 93.7% 12.1x 15.6x 16.3x 15.4x 14.7x

Echo Global Logistics, Inc. $808 $21.19 (11.2%) (21.0%) $34.35 61.7% 19.2x NM 18.4x 12.0x 8.8x

Expeditors International of Washington Inc. $7,767 $46.89 (4.2%) 6.2% $51.80 90.5% 12.1x 11.9x 10.4x 10.1x 9.8x

FedEx Corporation $45,646 $148.49 (7.5%) (15.9%) $185.19 80.2% 7.6x 7.8x 6.3x 6.6x 5.9x

Forward Air Corp. $1,423 $44.49 (2.5%) (9.5%) $57.65 77.2% 12.1x 13.4x 10.5x 10.3x 8.5x

Hub Group Inc. $1,218 $35.15 (8.9%) (1.1%) $44.00 79.9% 9.5x 11.7x 8.6x 9.7x 8.4x

JB Hunt Transport Services Inc. $9,444 $73.79 (1.5%) (7.7%) $93.50 78.9% 11.5x 11.2x 9.1x 9.0x 8.2x

Kuehne + Nagel International AG $15,899 $136.65 0.4% 1.1% $150.40 90.9% 14.8x 15.7x 15.3x 14.9x 14.4x

Landstar System Inc. $2,457 $57.63 (8.9%) (22.2%) $74.88 77.0% 14.4x 11.7x 9.2x 9.1x 8.7x

Panalpina World Transport Holding Ltd. $2,407 $113.58 (0.5%) (15.5%) $149.69 75.9% 18.1x 19.2x 16.8x 13.1x 10.6x

Roadrunner Transportation Systems, Inc. $846 $10.38 (5.6%) (49.0%) $28.51 36.4% 10.9x 11.5x 6.6x 6.7x 6.1x

Ryder System, Inc. $8,473 $57.98 (18.0%) (34.7%) $100.64 57.6% 5.7x 5.8x 4.9x 4.7x 4.4x

TransForce Inc. $2,947 $17.02 (9.6%) (32.7%) $23.25 73.2% 11.1x 9.9x 7.6x 7.7x 7.6x

United Parcel Service, Inc. $98,411 $100.45 (3.4%) (8.7%) $114.40 87.8% 13.3x 13.8x 11.7x 10.1x 9.4x

Universal Truckload Services Inc. $615 $13.77 (11.7%) (49.7%) $29.06 47.4% 9.4x 7.6x 5.6x 5.7x 5.4x

UTi Worldwide Inc. $1,288 $6.96 (1.1%) (39.3%) $14.18 49.1% NM NM NM NM NM

World Fuel Services Corp. $3,163 $40.65 (8.9%) (13.5%) $58.50 69.5% 12.2x 11.7x 10.4x 10.3x 9.4x

XPO Logistics, Inc. $5,725 $28.52 (14.9%) (22.8%) $50.96 56.0% NM NM 18.0x 12.2x 4.6x

Median (5.6%) (15.5%) 77.0% 11.5x 11.6x 9.8x 9.7x 8.4x

Trucking

ArcBest Corporation $497 $21.77 (16.1%) (50.0%) $47.52 45.8% 7.2x 5.2x 2.9x 2.8x 2.5x

Celadon Group Inc. 887 10.67 (25.3%) (48.7%) 29.15 36.6% 8.4x 9.2x 7.2x 6.6x 5.2x

Covenant Transportation Group, Inc. 565 18.98 (7.4%) (22.4%) 36.82 51.5% 8.1x 7.0x 4.8x 4.6x 4.3x

Heartland Express, Inc. 1,417 17.40 (11.6%) (31.8%) 27.96 62.2% 11.8x 8.8x 7.0x 6.2x 6.0x

Knight Transportation Inc. 2,103 24.63 (8.6%) (21.3%) 34.73 70.9% 12.0x 9.5x 7.3x 7.0x 6.5x

Marten Transport Ltd. 588 16.71 (2.6%) (20.2%) 24.92 67.1% 6.6x 6.3x 4.7x 4.4x 4.0x

Old Dominion Freight Line Inc. 5,345 61.13 (4.3%) (21.2%) 80.96 75.5% 12.6x 9.8x 8.1x 8.0x 7.3x

P.A.M. Transportation Services, Inc. 292 28.07 (28.7%) (42.5%) 67.61 41.5% 8.2x 8.8x 4.8x NA NA

Saia, Inc. 620 21.75 (7.7%) (59.9%) 56.50 38.5% 10.1x 7.5x 4.0x 4.0x 3.9x

Swift Transportation Company 3,446 14.49 (12.5%) (47.8%) 29.21 49.6% 9.7x 7.9x 5.6x 5.5x 5.1x

Universal Truckload Services Inc. 615 13.77 (11.7%) (49.7%) 29.06 47.4% 9.4x 7.6x 5.6x 5.7x 5.4x

USA Truck Inc. 249 17.72 (4.0%) (17.4%) 32.14 55.1% 7.0x 5.6x 4.1x 4.2x 4.4x

Werner Enterprises Inc. 1,837 25.15 (7.6%) (16.6%) 33.42 75.3% 7.2x 6.2x 5.1x 4.7x 4.5x

YRC Worldwide Inc. 1,358 14.97 (10.5%) (34.1%) 24.65 60.7% 9.6x 6.1x 4.5x 3.9x 3.6x

Median (9.6%) (32.9%) 53.3% 8.9x 7.5x 5.0x 4.7x 4.5x

Stock Performance

Stock Price Change from 52-Week TEV / EBITDA EBITDA

($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Dec-14 Jun-15 Current 2015E 2016P


TEV / LTM EBITDA as of

PUBLIC COMPARABLES

7


INDUSTRY UPDATE │ NOVEMBER 2015

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Rail and Rail Services

American Railcar Industries, Inc. $1,474 $50.15 (8.4%) 2.1% $67.31 74.5% 6.2x 6.4x 5.9x 5.4x 5.9x

Canadian National Railway Company 50,351 54.08 (9.4%) (15.7%) 65.40 82.7% 12.3x 11.7x 10.7x 10.7x 10.1x

Canadian Pacific Railway Limited 25,391 126.40 (11.1%) (28.2%) 180.29 70.1% 14.4x 13.8x 10.9x 10.5x 9.7x

CSX Corp. 33,236 24.70 (11.1%) (29.4%) 37.89 65.2% 9.3x 8.7x 6.8x 6.9x 6.7x

FreightCar America Inc. 144 21.79 (4.4%) (11.6%) 32.07 67.9% NM 7.7x 3.4x 2.7x 2.8x

Genesee & Wyoming Inc. 5,413 54.35 (21.4%) (36.8%) 105.49 51.5% 11.3x 11.7x 9.1x 9.2x 8.3x

The Greenbrier Companies, Inc. 1,197 30.15 (17.0%) (32.1%) 66.50 45.3% 6.0x 5.7x 2.7x 2.8x 2.6x

Kansas City Southern 10,695 74.69 (16.8%) (33.5%) 123.96 60.3% 13.5x 11.4x 9.8x 9.8x 9.1x

Norfolk Southern Corporation 35,522 87.68 (1.1%) (13.4%) 116.84 75.0% 8.6x 8.1x 8.5x 8.7x 8.3x

Trinity Industries Inc. 6,737 24.38 (8.9%) (12.7%) 37.15 65.6% 5.8x 5.5x 4.4x 4.1x 5.1x

Union Pacific Corporation 78,393 77.45 (10.1%) (31.9%) 124.52 62.2% 10.8x 9.1x 7.5x 7.6x 7.2x

Westinghouse Air Brake Technologies Corporation 7,210 72.20 (4.9%) (14.6%) 105.10 68.7% 15.2x 16.0x 11.0x 10.7x 9.9x

Median (9.8%) (22.0%) 66.8% 10.8x 8.9x 8.0x 8.2x 7.8x

Marine

Aegean Marine Petroleum Network Inc. $1,020 $8.97 16.2% (15.8%) $15.71 57.1% 13.0x 13.6x 10.2x 8.8x 7.5x

Costamare Inc. 2,336 10.59 (22.1%) (42.3%) 20.50 51.7% 9.9x 9.8x 7.4x 7.0x 6.7x

Diana Shipping Inc. 671 3.94 (35.8%) (41.2%) 8.27 47.6% 16.8x 18.3x 18.5x NM NM

Kirby Corporation 3,896 56.97 (14.0%) (34.6%) 88.99 64.0% 8.8x 7.9x 6.5x 6.8x 6.7x

Matson, Inc. 2,445 45.68 (12.0%) 33.8% 53.18 85.9% 9.4x 7.9x 9.3x 7.8x 7.5x

Neptune Orient Lines Limited 5,155 0.87 17.5% 36.7% 0.88 98.4% NM NM NM NM NM

Nordic American Tankers Limited 1,538 14.97 (3.1%) 66.9% 17.45 85.8% NM 16.3x 9.5x 7.0x 7.4x

Rand Logistics, Inc. 245 2.05 (17.3%) (48.1%) 4.17 49.2% 8.8x 8.1x 8.1x 6.9x 7.3x

SEACOR Holdings Inc. 1,558 55.97 (0.6%) (21.2%) 78.95 70.9% 8.1x 8.8x 8.7x 9.7x 7.8x

Wilh. Wilhelmsen ASA 1,838 3.95 (13.0%) (32.6%) 5.96 66.2% 16.9x 15.1x 9.8x 7.4x 4.3x

Median (12.5%) (26.9%) 65.1% 9.6x 9.8x 9.3x 7.2x 7.3x


Accuride Corp. $389 $2.22 (10.5%) (52.4%) $5.47 40.6% 7.7x 6.6x 5.0x 5.2x 4.7x

Dana Holding Corporation 2,941 14.44 (10.6%) (30.1%) 23.48 61.5% 5.5x 6.1x 4.4x 4.2x 4.4x

Gentherm Incorporated 1,695 47.37 0.9% 36.1% 57.95 81.7% 10.2x 14.6x 11.3x 12.6x 11.3x

Spartan Motors Inc. 107 3.59 (14.3%) (26.9%) 5.69 63.1% 13.3x 17.0x 11.3x 11.4x 13.2x

Wabash National Corp. 866 10.98 (14.3%) 2.3% 15.21 72.2% 6.6x 6.8x 4.4x 5.4x 4.1x

Median (10.6%) (26.9%) 63.1% 7.7x 6.8x 5.0x 5.4x 4.7x

PUBLIC COMPARABLES

8



Stock Performance

Stock Price Change from 52-Week TEV / EBITDA EBITDA

($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Dec-14 Jun-15 Current 2015E 2016P


TEV / LTM EBITDA as of

PAGE |

Logistics Providers

Agility Public Warehousing Company K.S.C.P. $4,775 $5,039 $4,873 $4,633 $4,592 $4,803 (1.0%) 1.8% $199 $254 $296 $265 $283 $303 10.0% 6.9%

Air Transport Services Group, Inc. 730 607 580 590 590 630 (6.9%) 3.4% 181 163 158 179 194 210 (0.3%) 8.1%

Atlas Air Worldwide Holdings, Inc. 1,384 1,632 1,643 1,785 1,847 1,881 8.8% 2.7% 203 296 307 344 377 375 19.1% 4.3%

CH Robinson Worldwide Inc. 10,336 11,359 12,752 13,470 13,580 14,430 9.2% 3.5% 720 751 731 797 921 965 3.4% 10.1%

Deutsche Post AG 68,631 73,191 75,621 68,547 65,243 68,008 (0.0%) (0.4%) 3,384 4,129 5,116 4,469 4,625 5,236 9.7% 8.2%

DSV A/S 7,639 7,937 8,439 7,896 7,396 7,705 1.1% (1.2%) 498 519 543 486 513 544 (0.8%) 5.9%

Echo Global Logistics, Inc. 603 758 884 1,173 1,528 1,949 24.9% 28.9% 23 27 27 36 66 91 16.5% 58.8%

Expeditors International of Washington Inc. 6,162 5,992 6,080 6,565 6,735 7,018 2.1% 3.4% 655 571 600 644 769 794 (0.6%) 11.0%

FedEx Corporation 39,304 42,680 44,287 45,567 47,609 50,096 5.1% 4.9% 4,506 5,367 6,112 6,417 6,891 7,714 12.5% 9.6%

Forward Air Corp. 509 584 652 781 959 1,041 15.4% 15.4% 97 104 107 127 144 167 9.4% 15.0%

Hub Group Inc. 2,752 3,124 3,374 3,571 3,542 3,719 9.1% 2.0% 112 134 138 135 124 143 6.4% 2.8%

JB Hunt Transport Services Inc. 3,678 4,058 4,527 5,083 6,196 6,781 11.4% 15.5% 658 759 830 926 1,057 1,156 12.1% 11.7%

Kuehne + Nagel International AG 17,351 18,699 19,290 17,618 20,186 21,471 0.5% 10.4% 1,038 979 1,070 987 1,040 1,087 (1.7%) 5.0%

Landstar System Inc. 2,594 2,735 2,628 3,145 3,315 3,427 6.6% 4.4% 204 223 201 250 269 285 6.9% 6.8%

Panalpina World Transport Holding Ltd. 6,954 7,227 7,589 6,752 6,107 6,436 (1.0%) (2.4%) 220 92 161 150 179 222 (11.9%) 21.7%

Roadrunner Transportation Systems, Inc. 844 1,073 1,361 1,873 2,004 2,046 30.5% 4.5% 54 81 99 121 125 140 30.9% 7.6%

Ryder System, Inc. 6,051 6,257 6,419 6,639 6,581 6,924 3.1% 2.1% 1,290 1,396 1,459 1,628 1,799 1,912 8.1% 8.4%

TransForce Inc. 2,378 2,822 2,620 2,817 3,227 3,274 5.8% 7.8% 313 392 318 361 387 411 4.9% 6.6%

United Parcel Service, Inc. 53,105 54,127 55,438 58,232 58,602 61,699 3.1% 2.9% 7,830 3,201 8,868 6,864 9,757 10,421 (4.3%) 23.2%

Universal Truckload Services Inc. 991 1,037 1,033 1,192 1,121 1,153 6.3% (1.6%) 84 96 105 115 108 110 11.1% (1.9%)

UTi Worldwide Inc. 4,550 4,914 4,608 4,436 4,284 3,807 (0.8%) (7.4%) 183 213 146 84 96 67 (22.9%) (10.6%)

World Fuel Services Corp. 34,623 38,945 41,562 43,386 31,516 31,704 7.8% (14.5%) 291 287 301 319 305 350 3.0% 4.8%

XPO Logistics, Inc. 177 279 702 2,357 7,446 15,165 NM NM 3 (25) (20) 95 517 1,257 NM NM

Total $276,120 $295,078 $306,963 $308,106 $304,205 $325,167 6.4% 3.9% $22,746 $20,009 $27,672 $25,797 $30,547 $33,959 5.5% 10.2%

Trucking

ArcBest Corporation $1,908 $2,066 $2,300 $2,613 $2,670 $2,791 11.1% 3.4% $82 $70 $104 $155 $174 $194 23.5% 12.0%

Celadon Group Inc. 467 475 489 615 888 1,080 9.6% 32.5% 89 103 100 97 136 171 3.1% 32.5%

Covenant Transportation Group, Inc. 512 527 539 579 705 741 4.2% 13.2% 63 71 65 89 122 130 11.8% 21.2%

Heartland Express, Inc. 529 546 582 871 742 759 18.1% (6.6%) 132 138 149 208 227 233 16.3% 5.9%

Knight Transportation Inc. 697 752 792 926 1,208 1,301 9.9% 18.5% 169 184 192 239 301 326 12.3% 16.8%

Marten Transport Ltd. 604 638 659 673 671 732 3.7% 4.3% 97 101 110 115 133 146 5.9% 12.6%

Old Dominion Freight Line Inc. 1,904 2,135 2,338 2,788 2,986 3,211 13.6% 7.3% 326 396 460 587 670 738 21.6% 12.1%

P.A.M. Transportation Services, Inc. 284 298 313 317 NA NA 3.7% NA 29 41 50 55 NA NA 23.7% NA

Saia, Inc. 1,030 1,099 1,139 1,272 1,227 1,238 7.3% (1.3%) 65 107 126 145 151 149 30.3% 1.5%

Swift Transportation Company 3,779 3,976 4,118 4,299 4,255 4,434 4.4% 1.6% 549 573 577 583 629 677 2.0% 7.8%

Universal Truckload Services Inc. 991 1,037 1,033 1,192 1,121 1,153 6.3% (1.6%) 84 96 105 115 108 110 11.1% (1.9%)

USA Truck Inc. 411 512 555 602 520 541 13.6% (5.2%) 33 20 35 60 60 61 22.0% 1.2%

Werner Enterprises Inc. 2,003 2,036 2,029 2,139 2,111 2,216 2.2% 1.8% 311 318 296 318 391 415 0.7% 14.3%

YRC Worldwide Inc. 4,869 4,851 4,865 5,069 4,833 4,933 1.4% (1.4%) 49 198 199 197 351 393 NM NM

Total $19,987 $20,948 $21,752 $23,955 $23,937 $25,131 7.8% 5.1% $2,080 $2,415 $2,567 $2,962 $3,452 $3,744 14.2% 11.3%

Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth

($ in millions) 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P


PUBLIC COMPARABLES

9



PAGE |

Rail and Rail Services

American Railcar Industries, Inc. $519 $712 $751 $733 $853 $823 12.2% 6.0% $55 $145 $179 $204 $270 $250 NM 10.7%

Canadian National Railway Company 8,881 9,952 9,954 10,478 9,536 9,989 5.7% (2.4%) 4,112 4,624 4,568 4,900 4,843 5,126 6.0% 2.3%

Canadian Pacific Railway Limited 4,970 5,568 5,631 5,582 5,101 5,326 3.9% (2.3%) 1,378 1,778 2,190 2,434 2,459 2,671 20.9% 4.7%

CSX Corp. 11,795 11,763 12,026 12,669 11,934 12,054 2.4% (2.5%) 4,446 4,523 4,577 4,764 4,845 4,990 2.3% 2.3%

FreightCar America Inc. 487 677 290 599 812 731 7.1% 10.5% 12 41 (8) 17 55 50 12.2% NM

Genesee & Wyoming Inc. 829 875 1,569 1,639 2,008 2,216 25.5% 16.3% 252 277 534 574 593 651 31.6% 6.5%

The Greenbrier Companies, Inc. 1,174 1,736 1,685 2,121 2,652 2,786 21.8% 14.6% 97 152 145 237 431 466 NM NM

Kansas City Southern 2,098 2,239 2,369 2,577 2,445 2,558 7.1% (0.4%) 772 872 962 1,106 1,089 1,189 12.7% 3.7%

Norfolk Southern Corporation 11,172 11,040 11,245 11,624 10,629 10,823 1.3% (3.5%) 4,082 4,046 4,179 4,531 4,053 4,269 3.5% (2.9%)

Trinity Industries Inc. 2,938 3,812 4,365 6,170 6,452 5,921 28.1% (2.0%) 575 730 963 1,400 1,644 1,381 34.6% (0.7%)

Union Pacific Corporation 18,508 19,686 20,684 22,560 22,186 22,893 6.8% 0.7% 7,341 8,505 9,223 10,657 10,297 11,032 13.2% 1.7%

Westinghouse Air Brake Technologies Corporation 1,968 2,391 2,566 3,044 3,318 3,526 15.7% 7.6% 334 436 485 588 675 718 20.8% 10.4%

Total $65,339 $70,451 $73,136 $79,795 $77,926 $79,646 11.5% 3.6% $23,455 $26,129 $27,997 $31,412 $31,254 $32,793 15.8% 3.9%

Marine

Aegean Marine Petroleum Network Inc. $6,965 $7,259 $6,335 $6,662 $4,470 $4,604 (1.5%) (16.9%) $75 $85 $75 $98 $115 $136 9.1% 17.6%

Costamare Inc. 382 386 414 484 491 508 8.2% 2.5% 236 238 258 318 343 358 10.4% 6.1%

Diana Shipping Inc. 256 221 164 176 161 174 (11.8%) (0.4%) 166 124 53 50 32 32 (32.9%) (19.5%)

Kirby Corporation 1,850 2,113 2,242 2,566 2,184 2,170 11.5% (8.0%) 445 509 582 647 577 588 13.3% (4.7%)

Matson, Inc. 1,463 1,560 1,637 1,714 1,907 2,078 5.4% 10.1% 142 175 172 203 309 330 12.8% 27.5%

Neptune Orient Lines Limited 9,211 9,512 8,831 8,617 6,041 5,764 (2.2%) (18.2%) (90) 96 131 294 307 449 NM 23.7%

Nordic American Tankers Limited 95 131 244 351 299 292 NM NM 10 13 (21) 60 220 201 NM NM

Rand Logistics, Inc. 98 109 119 129 149 143 9.9% 5.0% 16 28 25 29 35 34 23.3% 7.6%

SEACOR Holdings Inc. 1,032 1,308 1,247 1,319 1,074 1,102 8.5% (8.6%) 154 165 194 241 160 218 16.3% (5.0%)

Wilh. Wilhelmsen ASA 309 395 325 285 2,402 2,513 NM NM 147 227 154 140 436 458 NM NM

Total $21,661 $22,993 $21,559 $22,303 $19,179 $19,349 3.5% (4.3%) $1,299 $1,658 $1,624 $2,080 $2,534 $2,803 7.5% 6.7%


Accuride Corp. $805 $795 $643 $705 $688 $693 (4.3%) (0.9%) $74 $65 $43 $75 $82 $89 0.2% 9.0%

Dana Holding Corporation 7,544 7,224 6,769 6,617 6,052 6,110 (4.3%) (3.9%) 720 753 706 705 675 695 (0.7%) (0.7%)

Gentherm Incorporated 370 555 662 811 860 946 30.0% 8.0% 46 67 84 135 149 166 42.6% 11.1%

Spartan Motors Inc. 426 471 470 507 536 553 6.0% 4.5% 14 16 6 9 8 11 (12.6%) 7.5%

Wabash National Corp. 1,187 1,462 1,636 1,863 1,990 1,963 16.2% 2.6% 33 108 142 161 214 210 NM 14.3%

Total $10,331 $10,506 $10,179 $10,504 $10,126 $10,265 8.7% 2.1% $888 $1,008 $981 $1,084 $1,128 $1,171 7.4% 8.3%

PUBLIC COMPARABLES

10



Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth

($ in millions) 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P


PAGE |


SOURCES


1. Capital IQ.

2. MergerMarket.

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