INDUSTRY UPDATE | FEBRUARY 2018 · PUBLIC MARKETS OVERVIEW ... 2/8/2018 Logistics Globegistics, Inc. Provides courier services including eCommerce Shipping Services, Domestic Parcel

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TRANSPORTATION & LOGISTICS

0

INDUSTRY UPDATE | FEBRUARY 2018

PAGE | 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 [email protected]

+1 (804) 915-0178

James O’MalleyVice President [email protected]+1 (804) 915-0165

Jon MeredithVice President [email protected]+1 (804) 887-6085

EUROPE

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


INDUSTRY UPDATE │ FEBRUARY 2018

WHAT WE’RE READING

RAIL | INTERMODAL OUTPACES WEEKLY CARLOADS

Total carloads slid to 251,058 carloads, down 0.5%, while intermodal volume was268,487 containers and trailers, up 3.7% on-year, AAR reported. Seven of the 10carload commodity groups posted an increase compared with the same week in2017. They included nonmetallic minerals, 6.9%; chemicals, 4%, and metallic oresand metals, 5.2%. Commodity groups declining were coal, 4.2%; motor vehiclesand parts, 10.6%, and grain, 7%. North American rail volume for the week on 12reporting U.S., Canadian and Mexican railroads totaled 344,660 carloads, off 1.6%from the 2017 week, and 348,177 intermodal units, up 2.8%. Total traffic was692,837 carloads and intermodal units, up 0.6%.

Railway Age

LOGISTICS | "INTERNET OF THINGS” IS CHANGING THE SUPPLY CHAINLANDSCAPE

In 2018, manufacturers will ramp up digital transformation to embrace newtechnologies that have the potential to change the supply chain landscape. In2018, companies will augment their ability to understand the condition of aproduct as it’s in-transit, instead of having to rely on testing upon arrival. This levelof transparency will enable companies to verify product condition during theentire trip from beginning to end. Across the logistics landscape, enterprises willderive very clear ROI as they continue to experiment with and develop bestpractices for the industrial Internet of Things.

Material Handling & Logistics

TRUCKING | TRUCKING COMPANIES ORDERED MOST BIG RIGS IN 12 YEARS

Trucking companies ordered the most new big rigs in nearly 12 years, as theyhustled to take advantage of one of the hottest freight markets. A nationwideshortage of available trucks has sent shipping costs soaring, with retailers andmanufacturers in some cases paying over 30% above typical rates to book last-minute transportation for cargo. Trucking companies, buoyed by strong demandand flush with cash following the recent tax overhaul, are accelerating plans toreplace or expand their fleets. The arrival of more trucks could stabilize the freightmarket, helping shippers. But relief could be months away. Many trucks ordered inJanuary won’t be delivered until the second half of the year, and fleets arehaving trouble recruiting enough drivers to fill seats in their existing big rigs.

WSJ

AIR | DEMAND IN GLOBAL AIR CARGO SUPPLY CHAIN REMAINS “ROBUST”

IATA reported that global air freight markets global demand grew by 9.0%. Thiswas more than double the 3.6% annual growth recorded in 2016. Meanwhile,freight capacity, rose by 3.0% in 2017. This was the slowest annual capacity growthseen since 2012.

Logistics Management

MARINE | PANJIVA POINTS TO STRONG IMPORT GROWTH TO START 2018

According to Panjiva, the U.S.-bound waterborne shipment activity had a strongstart to the year in January, up 7.7% annually compared to 934,447 in January2017. Panjiva said this marks the fastest rate of growth in a month going back toApril 2017, as well as outpacing the cumulative 4.1% growth rate for all of 2017,which it noted was a record year for U.S.-bound shipments in aggregate. Panjivapointed to a number of growth drivers for this ongoing stretch of growth, includingAmerican business confidence remaining high after the recently passed taxreform bill, which it said is leading suppliers to expect an increase in investment.

Logistics Management

mailto:[email protected]









https://www.railwayage.com/freight/intermodal-outpaces-weekly-carloads/?RAchannel=news

http://www.mhlnews.com/technology-automation/how-iot-changing-supply-chain-landscape

https://www.wsj.com/articles/trucking-companies-ordered-most-big-rigs-in-over-12-years-1517913000

http://www.logisticsmgmt.com/article/demand_in_the_global_air_cargo_supply_chain_remains_robust/airfreight

http://www.logisticsmgmt.com/article/panjiva_points_to_strong_import_growth_to_start_2018/oceanfreight

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M&A TRANSACTIONS(1,2,3)

2

RECENT M&A TRANSACTIONS


*Denotes pending transaction


2/23/2018 Trucking Central Arizona Freight Prov ides less than truckload transportation, logistics and freight

transportation serv ices

Red Arts Capital

2/19/2018 Logistics TSO Mobile Prov ides mobile logistics solutions Inverness Graham's

GPSTrackit

2/15/2018 Logistics Plains All American

Pipeline LP /Wamsutter

Pipeline Assets/

Prov ides pipeline transportation serv ices Andeavor Logistics LP

2/12/2018 Logistics DWS Logistics, Inc. Prov ides freight logistics serv ices Mullen Group Ltd.

2/9/2018 Logistics Thermo-Transit Danmark

A/S

Prov ides transportation serv ices Girteka Logistics UAB

2/8/2018 Logistics Globegistics, Inc. Prov ides courier serv ices including eCommerce Shipping Serv ices,

Domestic Parcel Serv ices, Royal Mail, International Courier and Air

Freight

Asendia Management SAS

2/5/2018 Marine Gill North America Ltd. Prov ides marine related serv ices YFM Private Equity Ltd.;

Douglas Gill International

Ltd.

2/5/2018 Rail GREX Manufactures cutting-edge equipment to the railroad industry Loram

2/5/2018 Marine Omni Packaging Corp. Distributes shipping and packaging materials to businesses

throughout the United States

Meridian Venture Partners

LLC; SupplyOne, Inc.;

Stephens Capital Partners

LLC2/4/2018 Marine Higman Marine, Inc. Prov ides inland marine transportation serv ices for bulk liquid

petroleum and chemical cargoes

Kirby Corp.

2/2/2018 Trucking Fore Transportation, Inc. Prov ides long-haul intermodal and truckload serv ices Mason Dixon Intermodal,

Inc.

1/31/2018 Logistics Al's Water Serv ice, Inc. Prov ides potable water transportation and serv ices tothe oil, gas,

and mining industries

Stallion Oilfield Serv ices

Ltd.

1/27/2018 Trucking "Euroterminal Slawków"

Sp zoo

Provides transportation logistics serv ices Government of Poland;

PKP Linia Hutnicza

Szerokotorowa Sp zoo

1/22/2018 Logistics Groome Holdings Prov ides specialty transportation serv ices, operating in both the

airport shuttle and closed-loop campus shuttle markets

Cortec Group

1/21/2018 Logistics Rossendale Transport Prov ides bus transportation serv ices Transdev

1/19/2018 Rail Roadway Worker

Training

Provider of safety, compliance and technical training, targeted

serv ices, and v ideos for the railroad industry

RailPros

PAGE |

6.4x

7.6x

8.5x

10.4x

10.7x

Trucking

Transportation

Equipment

Marine

Logistics Providers

Rail & Rail Services

8.3x

8.4x

10.3x

11.5x

12.5x

Transportation

Equipment

Trucking

Marine


Logistics Providers

PUBLIC MARKETS OVERVIEW(1)

3


TEV / LTM EBITDA TEV / 2018E EBITDA

AVERAGE REVENUE GROWTH (2014 – 2017) AVERAGE REVENUE GROWTH (2017 – 2019P)

AVERAGE EBITDA GROWTH (2014 – 2017) AVERAGE EBITDA GROWTH (2017 – 2019P)


(5.9%)

(4.1%)

(3.3%)

4.8%

9.9%

Trucking

Marine


Transportation Equipment

Logistics Providers

(5.7%)

2.0%

5.3%

9.0%

14.7%

Trucking

Logistics Providers



Marine

(42.3%)

(6.9%)

(0.8%)

12.7%

12.7%

Marine

Trucking


Logistics Providers

Transportation

Equipment

3.4%

6.2%

7.4%

23.0%

25.3%

Trucking


Logistics Providers

Transportation

Equipment

Marine

PAGE |

STOCK PRICE PERFORMANCE(1)

4


(Indexed to February 26th, 2017)

TRAILING TWELVE MONTHS

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


(7.4%)

(6.4%)

(4.6%)

(4.4%)

(2.7%)

(0.9%)

Trucking

Marine

Logistics Providers

S&P 500



0.8%

16.1%

17.0%

19.9%

29.6%

51.2%

Marine

S&P 500


Logistics Providers

Transportation

Equipment

Trucking

(40%)

(30%)

(20%)

(10%)

0%

10%

20%

30%

40%

50%

60%

Feb-17 Apr-17 Jun-17 Aug-17 Oct-17 Dec-17

Logistics Providers Trucking Rail and Rail Services

Marine Transportation Equipment S&P 500 Index

PAGE |

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.


5


RECENTLY CLOSED T&L TRANSACTIONS

a portfolio company of

has been acquired byhas merged with

a portfolio company of a portfolio company of

has been acquired by

has merged with

an operating company of

in a recapitalization by

and


a portfolio company ofa portfolio company of

is merging with


A portfolio company of

has been acquired by has been acquired by

a portfolio company ofa portfolio company of


has been

recapitalized byhas been acquired by

DEEP EXPERIENCE ACROSS T&L SECTORS

MARINE TRANSPORTATION

NICHE TRANSPORTATION

TRANSPORTATION EQUIPMENT

RAIL & RAIL SERVICES

AUTOMOTIVE & HEAVY DUTY

VEHICLE

THIRD-PARTY LOGISTICS

AIR TRANSPORTATION



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Energy, Power& Infrastructure

IndustrialsHealthcare & Life Sciences

Transportation & Logistics

Aerospace, Defense & Government

Services

Business Services

Building Products & Materials

Technology, Media & Telecom

Specialty Distribution

Consumer

PAGE |

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UNITED STATES EUROPE

NETWORK OFFICES

Beijing

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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 andcollaboration across the firm, and our commitment to learning what makes them unique. For moreinformation, visit our website at www.harriswilliams.com/industries

OUR FIRM



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PUBLIC COMPARABLES(1)

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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 Feb-17 Aug-17 Current 2018E 2019P


TEV / LTM EBITDA as of

Logistics Providers

Air Transport Services Group, Inc. 1,979 25.18 (2.1%) 47.9% 27.67 91.0% 7.6x 7.9x 8.8x 6.2x 5.6x

Atlas Air Worldwide Holdings, Inc. 3,575 63.95 6.9% 13.4% 68.70 93.1% 8.9x 9.7x 8.7x 7.0x 6.5x

C.H. Robinson Worldwide, Inc. 14,227 92.63 (4.2%) 15.6% 100.18 92.5% 13.6x 12.6x 16.8x 14.6x 13.5x

Deutsche Post AG 62,526 46.03 (5.0%) 35.3% 50.20 91.7% 9.1x 10.9x 12.7x 9.1x 8.5x

DSV A/S 15,966 79.64 (3.2%) 63.7% 83.59 95.3% 16.3x 19.6x 18.6x 15.9x 14.9x

Echo Global Logistics, Inc 932 26.95 (11.9%) 18.5% 32.95 81.8% 17.9x 14.8x NM 11.3x 10.0x

Expeditors International of Washington, Inc. 10,854 65.52 (2.3%) 15.6% 67.54 97.0% 13.1x 12.7x 15.0x 13.6x 12.8x

FedEx Corporation 81,277 252.22 (6.2%) 30.6% 274.66 91.8% 9.6x 8.0x 9.8x 8.3x 7.4x

Forward Air Corporation 1,686 55.04 (11.5%) 10.6% 64.80 84.9% 10.9x 10.6x 11.3x 10.4x 9.5x

Hub Group, Inc. Class A 1,783 45.25 (11.2%) (10.7%) 52.50 86.2% 10.5x 8.8x 12.5x 9.7x 8.6x

J.B. Hunt Transport Services, Inc. 14,520 121.11 (3.1%) 21.3% 126.49 95.7% 11.3x 11.0x 14.3x 11.9x 10.6x

Kuhne & Nagel International AG 20,295 174.39 (5.2%) 24.1% 188.37 92.6% 14.8x 19.1x 18.3x 14.9x 13.8x

Landstar System, Inc. 4,531 110.70 (2.3%) 26.2% 118.60 93.3% 14.1x 12.5x 14.6x 13.4x 12.4x

Panalpina Welttransport (Holding) AG 3,599 164.09 (2.4%) 31.8% 172.16 95.3% 15.3x 19.3x NM 17.6x 14.7x

Roadrunner Transportation Systems, Inc. 568 3.79 (48.6%) (48.4%) 9.75 38.9% NM NM NM NA NA

Ryder System, Inc. 9,276 74.54 (16.2%) (1.8%) 90.26 82.6% 5.4x 5.3x 5.3x 5.0x 4.7x

TFI International Inc. 3,635 26.40 4.8% 3.7% 27.99 94.3% 11.0x 9.4x 9.1x 7.9x 7.4x

United Parcel Service, Inc. Class B 112,659 105.61 (20.4%) (0.5%) 135.53 77.9% 14.5x 14.8x 11.5x 10.1x 9.5x

Universal Logistics Holdings, Inc. 888 23.10 (7.4%) 64.4% 25.65 90.1% 7.7x 9.2x 7.8x NA NA

XPO Logistics, Inc. 16,954 96.89 0.2% 92.2% 98.37 98.5% 9.5x 10.2x 12.9x 10.5x 9.5x

Median (4.6%) 19.9% 92.1% 11.0x 10.9x 12.5x 10.4x 9.5x

Trucking

ArcBest Corporation $965 $33.05 (14.9%) 12.0% $39.70 83.2% 6.1x 5.3x 6.3x 5.1x 4.6x

Celadon Group, Inc. 477 3.70 (36.2%) (54.3%) 9.20 40.2% 7.2x 0.0x 5.7x 3.4x NA

Covenant Transportation Group, Inc. Class A 682 26.32 (9.4%) 31.2% 30.61 86.0% 4.7x 5.3x 6.2x 5.7x 5.1x

Heartland Express, Inc. 1,597 20.07 (14.1%) (2.8%) 25.22 79.6% 8.7x 9.6x 10.3x 8.4x 7.3x

Knight-Swift Transportation Holdings Inc. Class A 5,924 48.60 4.1% 51.2% 51.94 93.6% 10.1x 12.1x NM 6.1x 5.6x

Marten Transport, Ltd. 1,207 22.30 (1.3%) 52.6% 29.60 75.3% 6.2x 6.4x 9.0x 7.6x 6.8x

Old Dominion Freight Line, Inc. 11,464 139.51 (6.9%) 52.1% 150.31 92.8% 11.2x 10.7x 15.0x 12.5x 11.3x

P.A.M. Transportation Services, Inc. 360 36.15 (5.8%) 91.0% 43.20 83.7% 5.1x 4.8x 6.9x NA NA

Saia, Inc. 2,060 74.05 (5.2%) 53.3% 80.25 92.3% 11.3x 11.7x 15.5x 9.0x 8.0x

Universal Logistics Holdings, Inc. 888 23.10 (7.4%) 64.4% 25.65 90.1% 7.7x 9.2x 14.4x NA NA

USA Truck, Inc. 315 26.31 31.5% 192.3% 27.45 95.8% 7.7x 11.8x 16.8x 6.4x 5.1x

Werner Enterprises, Inc. 2,840 38.00 (11.3%) 36.7% 43.95 86.5% 6.5x 6.6x 7.7x 6.8x 6.2x

YRC Worldwide Inc. 1,066 9.36 (45.5%) (25.6%) 17.61 53.2% 4.3x 4.4x 4.3x 3.6x 3.2x

Median (7.4%) 51.2% 86.0% 7.2x 6.6x 8.4x 6.4x 5.9x

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8



Rail and Rail Services

American Railcar Industries, Inc. $1,181 $39.43 (3.0%) (18.9%) $49.33 79.9% 7.2x 7.3x 8.6x 8.3x 7.9x

Canadian National Railway Company 66,674 77.21 (2.5%) 9.5% 85.68 90.1% 12.7x 13.1x 12.7x 12.0x 11.2x

Canadian Pacific Railway Limited 33,530 186.52 (0.2%) 25.9% 188.77 98.8% 11.9x 11.2x 12.6x 11.9x 11.2x

CSX Corporation 62,444 55.84 (3.6%) 15.2% 60.04 93.0% 12.3x 11.2x 12.3x 11.3x 10.4x

FreightCar America, Inc. 67 15.79 (2.4%) 7.9% 20.46 77.2% 6.0x 6.2x NM NM 4.9x

Genesee & Wyoming, Inc. Class A 6,723 71.60 (11.4%) (3.6%) 84.40 84.8% 12.5x 11.3x 10.5x 9.1x 8.5x

Greenbrier Companies, Inc. 1,891 53.30 1.5% 21.0% 54.45 97.9% 4.2x 4.6x 6.8x 5.9x 6.0x

Kansas City Southern 14,238 108.82 (4.1%) 23.2% 114.85 94.7% 10.8x 11.8x 11.5x 10.5x 9.7x

Norfolk Southern Corporation 50,829 142.62 (5.5%) 18.8% 157.15 90.8% 10.9x 10.2x 11.0x 10.7x 10.2x

Trinity Industries, Inc. 7,409 33.57 (7.8%) 22.7% 38.25 87.8% 6.7x 8.2x 9.1x 9.8x 8.8x

Union Pacific Corporation 123,784 134.97 0.6% 25.3% 143.05 94.4% 11.1x 10.1x 12.2x 11.7x 11.0x

Westinghouse Air Brake Technologies Corporation 9,626 83.40 1.4% 5.0% 93.81 88.9% 15.3x 13.2x 14.1x 14.4x 13.5x

Median (2.7%) 17.0% 90.4% 11.0x 10.7x 11.5x 10.7x 9.9x

Marine

Aegean Marine Petroleum Network Inc. $891 $2.50 (47.4%) (74.5%) $13.00 19.2% 5.3x 6.2x 6.7x 8.5x 8.3x

Costamare Inc. 1,665 6.25 (7.7%) 2.1% 8.18 76.4% 5.4x 6.0x 6.1x 7.1x 6.4x

Diana Shipping Inc. 885 3.65 (6.4%) 0.8% 6.20 58.9% NM NM NM 10.4x 7.0x

Kirby Corporation 5,225 76.45 (1.2%) 9.4% 80.90 94.5% 9.5x 9.2x 12.3x 10.6x 9.2x

Matson, Inc. 2,121 29.71 (4.8%) (11.0%) 40.32 73.7% 9.3x 8.1x 9.1x 7.4x 6.9x

Nordic American Tankers Limited 566 2.27 (9.2%) (70.7%) 8.68 26.2% 7.9x 10.0x 7.8x 8.4x 4.2x

Rand Logistics, Inc. 249 0.02 (68.1%) (97.8%) 1.93 1.0% 7.5x 10.1x 11.5x NA NA

SEACOR Holdings Inc. 1,318 44.64 (5.8%) 3.7% 71.89 62.1% 19.4x 11.9x 12.0x 9.5x 8.6x

Wallenius Wilhelmsen Logistics ASA 5,825 7.77 (5.6%) 56.6% 8.56 90.7% NM NM 16.6x 6.8x 6.1x

Median (6.4%) 0.8% 62.1% 7.9x 9.2x 10.3x 8.5x 7.0x


Dana Incorporated 5,419 28.01 (16.7%) 47.3% 35.27 79.4% 6.2x 7.1x 7.0x 5.8x 5.4x

Gentherm Incorporated 1,203 31.55 (1.6%) (13.7%) 40.80 77.3% 9.1x 7.1x 8.3x 7.5x 6.9x

Spartan Motors, Inc. 532 15.15 4.5% 114.9% 18.10 83.7% 11.6x NM NM 12.7x 8.0x

Wabash National Corporation 1,819 23.31 (0.2%) 11.8% 26.54 87.8% 6.0x 6.7x 10.1x 7.8x 7.7x

Median (0.9%) 29.6% 81.6% 7.7x 7.1x 8.3x 7.6x 7.3x

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 Feb-17 Aug-17 Current 2018E 2019P


TEV / LTM EBITDA as of

PAGE |


9



Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth

($ in millions) 2014 2015 2016 2017 2018E 2019P '14-17 '17-19P 2014 2015 2016 2017 2018E 2019P '14-17 '17-19P


Logistics Providers

Air Transport Services Group, Inc. 590 619 769 1,021 1,162 1,311 20.1% 13.3% 179 198 200 260 322 343 13.2% 14.9%

Atlas Air Worldwide Holdings, Inc. 1,799 1,823 1,840 2,156 2,156 2,538 6.2% 8.5% 327 271 349 413 413 558 8.2% 16.2%

C.H. Robinson Worldwide, Inc. 13,470 13,476 13,144 14,869 14,869 16,828 3.3% 6.4% 805 925 912 868 868 1,053 2.5% 10.1%

Deutsche Post AG 75,117 65,681 63,423 74,603 77,579 80,443 (0.2%) 3.8% 4,812 3,587 5,013 6,406 6,885 7,399 10.0% 7.5%

DSV A/S 8,645 7,563 10,066 11,358 11,358 13,554 9.5% 9.2% 560 532 631 859 859 1,080 15.3% 12.1%

Echo Global Logistics, Inc 1,173 1,512 1,716 1,943 1,943 2,467 18.3% 12.7% 44 54 48 52 52 94 5.9% 34.4%

Expeditors International of Washington, Inc. 6,565 6,617 6,098 6,921 6,921 7,823 1.8% 6.3% 644 767 717 750 750 858 5.2% 7.0%

FedEx Corporation 47,453 50,365 60,319 64,593 67,923 71,046 10.8% 4.9% 4,951 6,165 8,420 8,810 9,930 10,935 21.2% 11.4%

Forward Air Corporation 781 959 983 1,101 1,101 1,331 12.1% 10.0% 128 128 141 150 150 178 5.2% 8.9%

Hub Group, Inc. Class A 3,571 3,526 3,573 4,035 4,035 4,631 4.2% 7.1% 136 154 168 159 159 206 5.4% 13.8%

J.B. Hunt Transport Services, Inc. 6,165 6,188 6,555 7,190 7,190 8,982 5.3% 11.8% 920 1,054 1,088 1,018 1,018 1,381 3.4% 16.5%

Kuhne & Nagel International AG 19,118 17,376 16,774 19,552 20,925 21,936 0.8% 5.9% 1,073 1,069 1,084 1,232 1,365 1,459 4.7% 8.8%

Landstar System, Inc. 3,185 3,321 3,168 3,646 3,646 4,490 4.6% 11.0% 251 269 258 311 311 368 7.4% 8.8%

Panalpina Welttransport (Holding) AG 7,327 6,081 5,274 5,887 6,131 6,396 (7.0%) 4.2% 218 184 169 159 204 249 (9.9%) 24.9%

Roadrunner Transportation Systems, Inc. 1,873 1,992 2,033 0 0 0 NM NA 125 92 6 0 0 0 NM NA

Ryder System, Inc. 6,639 6,572 6,787 7,330 7,330 8,271 3.4% 6.2% 1,505 1,649 1,738 1,737 1,737 2,002 4.9% 7.4%

TFI International Inc. 3,363 3,150 3,038 3,653 3,653 3,890 2.8% 3.2% 372 332 328 404 455 493 2.8% 10.4%

United Parcel Service, Inc. Class B 58,256 58,050 60,502 65,837 65,837 73,985 4.2% 6.0% 7,991 9,429 7,295 9,776 9,776 11,919 7.0% 10.4%

Universal Logistics Holdings, Inc. 1,192 1,129 1,073 1,217 1,217 0 0.7% (100.0%) 114 108 83 72 72 0 (14.1%) (100.0%)

XPO Logistics, Inc. 2,357 7,623 14,619 15,381 15,381 17,512 86.9% 6.7% 92 474 1,158 1,315 1,315 1,776 142.4% 16.2%

Total $268,638 $263,623 $281,753 $312,292 $320,355 $347,434 9.9% 2.0% $25,247 $27,442 $29,807 $34,751 $36,640 $42,350 12.7% 7.4%

Trucking

ArcBest Corporation $2,613 $2,667 $2,700 $2,826 $2,826 $3,175 2.7% 6.0% $154 $167 $139 $157 $157 $207 0.6% 15.1%

Celadon Group, Inc. 742 901 1,065 0 0 0 (100.0%) NA 87 117 109 0 0 0 (100.0%) NA

Covenant Transportation Group, Inc. Class A 719 724 671 705 705 789 (0.7%) 5.8% 89 143 122 105 105 130 5.5% 11.5%

Heartland Express, Inc. 871 736 613 607 607 709 (11.3%) 8.0% 208 193 182 141 141 222 (12.2%) 25.7%

Knight-Swift Transportation Holdings Inc. Class A 1,102 1,183 1,118 2,425 2,425 5,842 30.1% 55.2% 256 312 259 441 441 1,095 19.9% 57.6%

Marten Transport, Ltd. 673 665 671 698 698 863 1.2% 11.2% 115 127 130 136 136 177 5.9% 14.0%

Old Dominion Freight Line, Inc. 2,788 2,972 2,992 3,358 3,358 4,192 6.4% 11.7% 606 676 690 782 782 1,027 8.9% 14.6%

P.A.M. Transportation Services, Inc. 411 417 433 438 438 0 2.1% (100.0%) 55 63 54 55 55 0 0.1% (100.0%)

Saia, Inc. 1,272 1,221 1,218 1,379 1,379 1,703 2.7% 11.1% 145 155 116 182 182 257 7.9% 18.9%

Universal Logistics Holdings, Inc. 1,192 1,129 1,073 1,217 1,217 0 0.7% (100.0%) 114 108 83 72 72 0 (14.1%) (100.0%)

USA Truck, Inc. 602 508 429 447 447 538 (9.5%) 9.8% 60 56 29 26 26 62 (24.7%) 56.0%

Werner Enterprises, Inc. 2,139 2,094 2,009 2,117 2,117 2,490 (0.4%) 8.5% 316 393 336 361 361 459 4.6% 12.7%

YRC Worldwide Inc. 5,069 4,832 4,698 4,891 4,891 5,355 (1.2%) 4.6% 197 259 270 246 246 320 7.6% 14.2%

Total $20,194 $20,050 $19,690 $21,108 $21,108 $25,655 (5.9%) (5.7%) $2,402 $2,768 $2,520 $2,702 $2,702 $3,958 (6.9%) 3.4%

PAGE |


10



Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth

($ in millions) 2014 2015 2016 2017 2018E 2019P '14-17 '17-19P 2014 2015 2016 2017 2018E 2019P '14-17 '17-19P


Rail and Rail Services

American Railcar Industries, Inc. $733 $889 $639 $477 $477 $546 (13.4%) 7.0% $204 $272 $182 $138 $138 $148 (12.2%) 3.6%

Canadian National Railway Company 10,986 9,857 9,085 10,047 10,047 11,459 (2.9%) 6.8% 5,137 5,021 4,934 5,269 5,269 5,973 0.8% 6.5%

Canadian Pacific Railway Limited 5,994 5,246 4,704 5,049 5,049 5,735 (5.6%) 6.6% 2,640 2,431 2,414 2,665 2,665 3,033 0.3% 6.7%

CSX Corporation 12,669 11,811 11,069 11,408 11,408 12,046 (3.4%) 2.8% 4,764 4,792 4,575 5,074 5,074 5,989 2.1% 8.6%

FreightCar America, Inc. 599 773 524 435 326 463 (10.1%) 3.2% 17 51 14 (10) (3) 10 NM NA

Genesee & Wyoming, Inc. Class A 1,639 2,000 2,002 2,208 2,208 2,534 10.4% 7.1% 579 586 554 664 664 797 4.7% 9.6%

Greenbrier Companies, Inc. 2,203 2,605 2,681 2,176 2,176 2,480 (0.4%) 6.7% 237 430 458 307 307 317 9.1% 1.6%

Kansas City Southern 2,577 2,419 2,397 2,627 2,627 2,957 0.6% 6.1% 1,106 1,098 1,121 1,243 1,243 1,473 4.0% 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 5,024 0.8% 4.0%

Trinity Industries, Inc. 6,170 6,393 4,588 3,663 3,663 3,928 (16.0%) 3.6% 1,402 1,528 1,008 758 758 843 (18.5%) 5.5%

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 3,882 3,882 4,289 8.4% 5.1% 588 701 572 611 665 716 1.3% 8.2%

Total $82,227 $77,625 $70,448 $73,763 $73,654 $81,140 (3.3%) 5.3% $31,857 $30,912 $29,272 $31,525 $31,586 $35,653 (0.8%) 6.2%

Marine

Aegean Marine Petroleum Network Inc. $6,662 $4,232 $4,076 $5,787 $6,560 $8,087 (4.6%) 18.2% $54 $81 $214 $75 $105 $107 11.3% 19.7%

Costamare Inc. 484 490 468 412 412 410 (5.2%) (0.3%) 326 325 317 266 266 263 (6.5%) (0.7%)

Diana Shipping Inc. 176 158 114 162 162 269 (2.7%) 28.8% 52 28 (12) (408) (408) 137 (298.9%) NA

Kirby Corporation 2,566 2,148 1,771 2,214 2,214 3,220 (4.8%) 20.6% 663 595 471 407 407 571 (15.0%) 18.4%

Matson, Inc. 1,714 1,885 1,942 2,047 2,047 2,094 6.1% 1.1% 203 298 238 222 222 305 3.1% 17.2%

Nordic American Tankers Limited 351 446 357 155 155 250 (23.9%) 27.2% 74 211 139 54 54 150 (9.8%) 65.9%

Rand Logistics, Inc. 153 148 115 0 0 0 (100.0%) NA 34 32 27 0 0 0 (100.0%) NA

SEACOR Holdings Inc. 1,319 1,055 831 631 629 669 (21.8%) 2.9% 245 150 95 101 139 154 (25.7%) 23.7%

Wallenius Wilhelmsen Logistics ASA 285 313 257 3,024 3,024 4,312 119.7% 19.4% 134 186 80 558 558 986 60.9% 32.9%

Total $13,710 $10,874 $9,932 $14,433 $15,203 $19,310 (4.1%) 14.7% $1,785 $1,906 $1,568 $1,276 $1,344 $2,672 (42.3%) 25.3%


Dana Incorporated 6,617 6,060 5,826 7,209 7,209 7,938 2.9% 4.9% 705 618 612 773 773 1,005 3.1% 14.0%

Gentherm Incorporated 812 856 918 986 986 1,142 6.7% 7.6% 135 155 146 143 143 174 1.9% 10.3%

Spartan Motors, Inc. 507 550 591 702 802 895 11.5% 12.9% 10 0 18 30 42 68 42.9% 51.2%

Wabash National Corporation 1,863 2,027 1,845 1,767 1,767 2,158 (1.8%) 10.5% 161 218 241 175 175 239 2.9% 16.6%

Total $9,799 $9,494 $9,180 $10,664 $10,764 $12,132 4.8% 9.0% $1,012 $991 $1,017 $1,121 $1,133 $1,486 12.7% 23.0%

PAGE |


SOURCES


1. FactSet.

2. MergerMarket.

3. Pitchbook.

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