INDUSTRY UPDATE | JANUARY 2018 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

www.harriswilliams.com

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 a private limitedcompany 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 andWales (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which HarrisWilliams LLC and Harris Williams & Co. Ltd conduct business.

TRANSPORTATION & LOGISTICS

0

INDUSTRY UPDATE | JANUARY 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 │ JANUARY 2018

WHAT WE’RE READING

RAIL | NEW CSX CHIEF HAS UNFINISHED WORK ON RAILROAD

Jim Foote will address investors on CSX’s quarterly earnings call to reassureinvestors that the railroad can complete Hunter Harrison’s unfinished work. Citiestimates 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 ashortage in both drivers and capacity, a new federal safety regulation is expectedto further tighten the truck market, which could help switch some freight traffic tothe rails.

The Wall Street Journal

LOGISTICS | DEMAND FOR WAREHOUSE SPACE WILL BE STRONG IN 2018

Prime logistics is an attractive asset class for investors that provides a high returnand stable cash flow due to the strong user fundamentals, which is largely fueledby e-commerce growth and demand for last-mile logistics," says CBRE report. Acombination of factors will come together in 2018 that will result in strong investorappetite for logistics real estate. Strong interest in prime logistics assets continues inmost industrial hubs around the world, with $85.8 billion in total investment volumein 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. Freightvolumes in December hit near-record levels for that time of year, on the back of astrengthening economy. Retailers are replenishing stocks after one of the strongestholiday sales seasons in recent years. Manufacturers are also shipping morecargo; in December, industrial production had the largest year-over-year gainsince 2010, according to the Federal Reserve.

What’s more, bad weather and a new federal safety rule that took effect inDecember have crimped the supply of available trucks. Diesel prices are near athree-year high, adding to transportation costs.

In the spot market, where shippers hire trucks on short notice, there were about 10loads 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 freightmarketplace DAT Solutions LLC.


AIR | WHY AIRFREIGHT TRAFFIC IS UP

Companies are shipping more items by plane to meet customers’ risingexpectations for rapid delivery, prompting a scramble for cargo space that hassent airfreight rates soaring and pushed Amazon.com Inc. and others into theairline business. Global airfreight traffic climbed almost 9% year-over-year inNovember, the start of the peak shipping season, and rates for airfreight were up17% annually for the month, the biggest price increase since the aftermath of thefinancial crisis, according to cargo data provider WorldACD.


MARINE | MAERSK AND IBM PARTNER TO ROLL OUT BLOCKCHAIN JV

With a focus on providing more efficient and secure methods for conductingglobal trade through the usage of blockchain technology, ocean cargo giant A.P.Moller-Maersk and technology powerhouse IBM announced plans this week for ajoint venture (JV).

IBM and Maersk said that the objective of this JV is to provide a jointly developedglobal trade digitization platform that is built on open standards and designed foruse by the entire global shipping ecosystem, adding that it will address the need toprovide more transparency and simplicity in the movement of goods acrossborders and trading zones.

Logistics Management

mailto:[email protected]









https://www.wsj.com/articles/new-csx-chief-has-unfinished-work-on-railroad-1515844800

http://www.mhlnews.com/warehousing/demand-warehouse-space-will-be-strong-2018

https://www.wsj.com/articles/a-shortage-of-trucks-is-forcing-companies-to-cut-shipments-or-pay-up-1516789800

https://www.wsj.com/articles/why-airfreight-traffic-is-up-dog-food-and-semiconductors-are-vying-for-space-1515493800?mod=djemlogistics

http://www.logisticsmgmt.com/article/maersk_and_ibm_roll_out_blockchain_based_joint_venture_with_a_global_trade

PAGE |

M&A TRANSACTIONS(1,2,3)

2

RECENT M&A TRANSACTIONS


*Denotes pending transaction


Date Sector Target Business Description Acquirer

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

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 Transportation LLC Freight brokerage and logistics company GlobalTranz Enterprises,

Inc.

1/9/2018 Logistics Brambles Ltd Provides supply chain support serv ices and information management

solutions

Grey Mountain Partners

1/8/2018 Logistics The I rwin Brown Offers customs brokerage and international freight forwarding CH Powell

1/4/2018 Trucking ASF Transportation

Group LLC

Provides freight transportation serv ices ContainerPort Group, Inc.

1/4/2018 Trucking Complete Disposal Co.,

Inc.

Prov ides integrated solid waste serv ices Casella Waste Systems,

Inc.

1/2/2018 Logistics Redwood Logistics LLC Provides freight transportation serv ices CI Capital Partners LLC;

Simplified Logistics LLC

1/2/2018 Trucking Belmont Enterprises, Inc. Prov ides trucking and logistics serv ices Smokey Point Distributing,

Inc.

12/14/2017 Logistics Channel Distribution

Corp.

Operates as a full serv ice warehouse and distribution center Wind Point Advisors LLC;

St. George Logistics Corp.

12/13/2017 Logistics Shipt, Inc. Prov ides 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 serv ices AB Transport Group BV

12/11/2017 Logistics Grocontinental Ltd. Prov ides logistics serv ices for food industry AGRO Merchants Group

12/11/2017 Logistics MR Coal Marketing &

Trading LLC

Provides logistics serv ices Blackjewel LLC

PAGE |

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)


8.7x

8.8x

9.7x

12.1x

13.8x

Trucking

Transportation

Equipment

Marine

Rail & Rail Services

Logistics Providers

6.9x

7.4x

8.6x

11.3x

11.5x

Trucking

Transportation

Equipment

Marine


Logistics Providers

(3.3%)

2.0%

4.7%

8.4%

10.4%


Trucking

Transportation Equipment

Marine

Logistics Providers

5.0%

6.4%

8.4%

12.9%

13.7%


Logistics Providers

Transportation

Equipment

Trucking

Marine

(0.4%)

3.0%

3.4%

13.6%

14.4%


Trucking

Marine

Transportation

Equipment

Logistics Providers

6.4%

12.8%

19.7%

21.5%

30.4%


Logistics Providers

Transportation

Equipment

Trucking

Marine

PAGE |

STOCK PRICE PERFORMANCE(1)

4


(Indexed to January 19th, 2017)

TRAILING TWELVE MONTHS

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


2.2%

2.3%

2.4%

4.4%

4.7%

6.1%

Transportation

Equipment

Marine


Trucking

S&P 500

Logistics Providers

(40%)

(30%)

(20%)

(10%)

0%

10%

20%

30%

40%

50%

60%

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

Logistics Providers Trucking Rail and Rail Services Marine Transportation Equipment S&P 500 Index

(1.5%)

19.9%

23.7%

30.0%

52.5%

56.2%

Marine


S&P 500

Logistics Providers

Transportation

Equipment

Trucking

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



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

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



6

PAGE |

PUBLIC COMPARABLES(1)

7



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 Jan-17 Jul-17 Current 2018E 2019P


TEV / LTM EBITDA as of

Logistics Providers

Air Transport Services Group, Inc. 2,026 25.97 12.5% 69.8% 26.75 97.1% 7.0x 8.4x 9.0x 6.3x 5.6x

Atlas Air Worldwide Holdings, Inc. 3,486 62.05 3.2% 22.0% 68.70 90.3% 8.5x 9.3x 8.6x 7.2x 6.5x

C.H. Robinson Worldwide, Inc. 14,591 95.16 7.3% 29.3% 95.28 99.9% 12.6x 12.0x 17.2x 15.3x 14.3x

Deutsche Post AG 67,615 50.07 4.5% 48.8% 50.11 99.9% 9.0x 10.3x 13.7x 9.9x 9.2x

DSV A/S 16,531 81.86 6.0% 74.3% 83.09 98.5% 15.8x 18.0x NM 16.5x 15.5x

Echo Global Logistics, Inc 1,008 29.70 4.0% 20.7% 29.75 99.8% 19.1x 17.9x NM 13.9x 11.7x

Expeditors International of Washington, Inc. 11,040 66.40 2.5% 24.6% 66.83 99.4% 12.2x 13.7x 15.3x 14.2x 13.4x

FedEx Corporation 87,288 274.32 9.7% 47.7% 274.66 99.9% 9.3x 8.1x 10.6x 8.9x 8.0x

Forward Air Corporation 1,912 62.90 9.0% 27.8% 63.94 98.4% 10.8x 11.2x 12.9x 11.4x 10.5x

Hub Group, Inc. Class A 1,995 51.45 6.4% 16.1% 52.50 98.0% 9.2x 9.2x 14.0x 11.1x 10.4x

J.B. Hunt Transport Services, Inc. 14,798 123.61 7.9% 30.8% 123.87 99.8% 10.7x 10.4x 14.0x 12.2x 10.8x

Kuhne & Nagel International AG 21,401 183.63 6.1% 38.9% 186.78 98.3% 13.9x 19.0x 19.3x 16.1x 15.0x

Landstar System, Inc. 4,508 110.60 4.9% 31.6% 110.65 100.0% 13.5x 13.0x 16.4x 13.9x 13.0x

Panalpina Welttransport (Holding) AG 3,623 165.12 10.4% 37.0% 168.93 97.7% 14.8x 18.9x NM 18.2x 15.1x

Roadrunner Transportation Systems, Inc. 701 7.88 (1.5%) (27.0%) 11.88 66.3% NA NA 7.4x NA NA

Ryder System, Inc. 9,972 88.82 4.7% 19.0% 90.02 98.7% 5.4x 5.2x 5.8x 5.4x 5.0x

TFI International Inc. 3,633 26.38 1.9% 2.8% 27.99 94.2% 11.1x 9.1x 9.1x 7.7x 7.3x

United Parcel Service, Inc. Class B 130,791 133.08 12.2% 15.8% 135.53 98.2% 15.6x 14.8x 17.0x 11.5x 10.9x

Universal Logistics Holdings, Inc. 936 24.95 3.5% 70.9% 25.65 97.3% 7.9x 9.0x 15.2x NA NA

XPO Logistics, Inc. 17,043 95.95 6.6% 122.2% 95.95 100.0% 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

Trucking

ArcBest Corporation $1,096 $37.85 2.2% 24.9% $38.75 97.7% 6.2x 4.5x 7.1x 5.9x 5.5x

Celadon Group, Inc. 536 5.85 (8.6%) (32.4%) 9.50 61.6% 7.4x NA 6.4x NA NA

Covenant Transportation Group, Inc. Class A 743 28.86 (0.4%) 47.5% 30.61 94.3% 4.7x 4.5x 6.7x 5.9x 5.3x

Heartland Express, Inc. 1,900 23.56 0.2% 17.6% 25.22 93.4% 8.4x 9.8x 12.3x 9.2x 8.1x

Knight-Swift Transportation Holdings Inc. Class A 5,284 46.53 4.9% 40.4% 46.64 99.8% 10.4x 11.4x NM 6.0x 5.3x

Marten Transport, Ltd. 1,209 22.05 8.1% 58.7% 22.35 98.7% 5.9x 6.7x 9.0x 7.6x 6.7x

Old Dominion Freight Line, Inc. 12,207 147.97 11.5% 69.0% 148.04 100.0% 10.7x 11.0x 15.9x 13.6x 12.4x

P.A.M. Transportation Services, Inc. 370 37.80 2.8% 56.8% 43.20 87.5% 5.8x 4.8x 7.1x NA NA

Saia, Inc. 2,167 78.10 10.3% 64.2% 78.95 98.9% 11.1x 11.5x 16.3x 9.9x 8.8x

Universal Logistics Holdings, Inc. 936 24.95 3.5% 70.9% 25.65 97.3% 7.9x 9.0x 15.2x NA NA

USA Truck, Inc. 285 20.49 11.4% 123.0% 21.98 93.2% 7.7x 11.5x 15.2x 6.3x 5.5x

Werner Enterprises, Inc. 3,073 41.40 4.4% 56.2% 41.65 99.4% 6.2x 6.2x 8.4x 7.5x 6.8x

YRC Worldwide Inc. 1,298 17.01 13.1% 24.7% 17.08 99.6% 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 |


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 Jan-17 Jul-17 Current 2018E 2019P


TEV / LTM EBITDA as of

Rail and Rail Services

American Railcar Industries, Inc. $1,189 $39.83 (1.5%) (13.7%) $49.33 80.7% 6.9x 7.5x 7.6x 8.2x 7.7x

Canadian National Railway Company 69,091 81.11 (0.5%) 15.7% 85.68 94.7% 12.6x 13.5x 13.1x 11.9x 11.1x

Canadian Pacific Railway Limited 33,663 187.43 3.2% 24.0% 188.58 99.4% 12.1x 11.7x 12.6x 11.7x 11.1x

CSX Corporation 63,936 57.49 4.5% 29.7% 60.04 95.8% 10.9x 11.2x 12.1x 11.6x 10.6x

FreightCar America, Inc. 74 16.39 (2.3%) 11.3% 20.46 80.1% 6.0x 6.0x NM NM 5.4x

Genesee & Wyoming, Inc. Class A 7,734 81.83 4.7% 9.0% 84.40 97.0% 12.6x 11.4x 12.1x 10.3x 9.7x

Greenbrier Companies, Inc. 1,860 52.35 (1.0%) 10.2% 54.45 96.1% 4.5x 4.7x 6.7x 5.8x 5.9x

Kansas City Southern 14,423 110.00 1.7% 25.1% 114.85 95.8% 10.8x 11.8x 11.9x 10.7x 9.9x

Norfolk Southern Corporation 53,266 151.40 4.8% 33.3% 157.15 96.3% 10.4x 10.2x 12.1x 11.3x 10.6x

Trinity Industries, Inc. 8,161 36.66 (1.6%) 28.7% 38.25 95.8% 6.8x 8.0x 10.0x 10.4x 9.4x

Union Pacific Corporation 127,557 141.25 5.0% 30.1% 142.19 99.3% 11.2x 10.1x 12.9x 11.9x 11.3x

Westinghouse Air Brake Technologies Corporation 9,639 82.80 4.0% (3.9%) 93.81 88.3% 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

Marine

Aegean Marine Petroleum Network Inc. $979 $4.80 17.1% (55.6%) $13.00 36.9% 5.5x 6.3x 7.4x 9.2x 7.8x

Costamare Inc. 1,745 6.33 8.0% 3.1% 8.18 77.4% 5.4x 6.2x 6.4x 7.0x 6.5x

Diana Shipping Inc. 994 4.00 (1.7%) (1.5%) 6.20 64.5% NM NM NM 11.5x 7.7x

Kirby Corporation 5,118 74.55 7.4% 13.6% 75.85 98.3% 9.0x 9.5x 12.1x 10.7x 9.6x

Matson, Inc. 2,150 30.92 1.9% (15.3%) 37.32 82.9% 9.7x 9.0x 9.1x 7.0x 6.6x

Nordic American Tankers Limited 681 2.63 2.3% (71.1%) 8.97 29.3% 8.8x 11.4x 9.3x 7.4x 5.2x

Rand Logistics, Inc. 250 0.06 (63.9%) (93.8%) 1.93 3.0% 7.6x 10.1x 10.1x NA NA

SEACOR Holdings Inc. 1,359 46.93 (0.3%) 3.6% 75.87 61.9% NM 11.6x 12.3x 9.8x 8.8x

Wallenius Wilhelmsen Logistics ASA 6,681 8.16 18.2% 65.6% 8.19 99.6% 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 6,274 33.51 3.7% 72.9% 35.27 95.0% 6.3x 7.2x 8.8x 6.8x 6.4x

Gentherm Incorporated 1,189 32.40 0.6% (4.6%) 40.80 79.4% 8.5x 9.4x 8.2x 7.2x 6.8x

Spartan Motors, Inc. 525 14.95 (13.1%) 80.1% 18.10 82.6% 14.0x NM NM 12.5x 7.9x

Wabash National Corporation 1,783 22.25 6.4% 32.0% 24.16 92.1% 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 |


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% 179 198 200 260 324 360 13.2% 17.7%

Atlas Air Worldwide Holdings, Inc. 1,799 1,823 1,840 2,123 2,295 2,318 5.7% 4.5% 327 271 349 413 480 566 8.1% 17.0%

C.H. Robinson Worldwide, Inc. 13,470 13,476 13,144 14,660 15,623 16,354 2.9% 5.6% 805 925 912 850 951 1,022 1.8% 9.7%

Deutsche Post AG 75,117 65,681 63,423 75,358 78,307 81,315 0.1% 3.9% 4,812 3,587 5,013 6,479 6,962 7,465 10.4% 7.3%

DSV A/S 8,645 7,563 10,066 12,462 13,061 13,606 13.0% 4.5% 560 532 631 942 1,027 1,081 19.0% 7.1%

Echo Global Logistics, Inc 1,173 1,512 1,716 1,877 2,084 2,294 17.0% 10.5% 44 54 48 56 72 95 8.9% 29.7%

Expeditors International of Washington, Inc. 6,565 6,617 6,098 6,820 7,228 7,600 1.3% 5.6% 644 767 717 725 782 831 4.0% 7.1%

FedEx Corporation 47,453 50,365 60,319 64,593 67,923 71,030 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 1,096 1,189 1,256 12.0% 7.1% 128 128 141 152 167 186 5.7% 10.8%

Hub Group, Inc. Class A 3,571 3,526 3,573 3,973 4,348 4,640 3.6% 8.1% 136 154 168 141 172 184 1.2% 14.4%

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 1,007 1,007 1,381 3.1% 17.1%

Kuhne & Nagel International AG 19,118 17,376 16,774 19,564 20,946 21,959 0.8% 5.9% 1,073 1,069 1,084 1,233 1,366 1,460 4.8% 8.8%

Landstar System, Inc. 3,185 3,321 3,168 3,604 3,941 4,179 4.2% 7.7% 251 269 258 283 322 348 4.2% 10.9%

Panalpina Welttransport (Holding) AG 7,327 6,081 5,274 5,881 6,137 6,402 (7.1%) 4.3% 218 184 169 159 204 249 (10.0%) 25.0%

Roadrunner Transportation Systems, Inc. 1,873 1,995 1,959 0 0 0 NM NA 125 130 95 0 0 0 NM NA

Ryder System, Inc. 6,639 6,572 6,787 7,225 7,532 7,941 2.9% 4.8% 1,505 1,649 1,738 1,727 1,844 2,002 4.7% 7.7%

TFI International Inc. 3,363 3,150 3,038 3,865 3,948 3,998 4.7% 1.7% 372 332 328 424 476 498 4.4% 8.4%

United Parcel Service, Inc. Class B 58,256 58,050 60,502 65,230 68,656 72,640 3.8% 5.5% 7,991 9,429 7,295 10,636 11,409 12,040 10.0% 6.4%

Universal Logistics Holdings, Inc. 1,192 1,129 1,073 0 0 0 NM NA 114 108 83 0 0 0 NM NA

XPO Logistics, Inc. 2,357 7,623 14,619 15,086 16,024 16,800 85.7% 5.5% 92 474 1,158 1,365 1,603 1,759 145.5% 13.5%

Total $268,638 $263,626 $281,679 $311,628 $327,595 $344,625 10.4% 6.4% $25,247 $27,480 $29,896 $35,662 $39,097 $42,461 14.4% 12.8%

Trucking

ArcBest Corporation $2,613 $2,667 $2,700 $2,839 $3,038 $3,155 2.8% 5.4% $154 $167 $139 $155 $189 $201 0.1% 13.9%

Celadon Group, Inc. 742 901 1,065 0 0 0 NM NA 87 117 109 0 0 0 NM NA

Covenant Transportation Group, Inc. Class A 719 724 671 702 743 791 (0.8%) 6.2% 89 143 122 106 126 139 6.1% 14.3%

Heartland Express, Inc. 871 736 613 621 744 755 (10.7%) 10.3% 208 193 182 171 209 239 (6.3%) 18.1%

Knight-Swift Transportation Holdings Inc. Class A 1,102 1,183 1,118 2,424 5,445 5,751 30.0% 54.0% 256 312 259 422 927 991 18.1% 53.3%

Marten Transport, Ltd. 673 665 671 698 788 863 1.2% 11.2% 115 127 130 136 158 177 5.9% 14.0%

Old Dominion Freight Line, Inc. 2,788 2,972 2,992 3,347 3,746 4,048 6.3% 10.0% 606 676 690 787 901 987 9.1% 12.0%

P.A.M. Transportation Services, Inc. 411 417 433 0 0 0 NM NA 55 63 54 0 0 0 NM NA

Saia, Inc. 1,272 1,221 1,218 1,369 1,521 1,664 2.5% 10.3% 145 155 116 182 220 247 8.0% 16.3%

Universal Logistics Holdings, Inc. 1,192 1,129 1,073 0 0 0 NM NA 114 108 83 0 0 0 NM NA

USA Truck, Inc. 602 508 429 440 487 527 (9.9%) 9.4% 60 56 29 25 46 52 (25.5%) 44.3%

Werner Enterprises, Inc. 2,139 2,094 2,009 2,104 2,262 2,413 (0.6%) 7.1% 316 393 336 361 407 448 4.5% 11.5%

YRC Worldwide Inc. 5,069 4,832 4,698 4,894 5,175 5,459 (1.2%) 5.6% 197 259 270 265 324 365 10.3% 17.4%

Total $20,194 $20,050 $19,690 $19,437 $23,950 $25,426 2.0% 12.9% $2,402 $2,768 $2,520 $2,610 $3,506 $3,845 3.0% 21.5%

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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 $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 6,175 0.8% 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 3,114 0.3% 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 5,989 2.2% 8.5%

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 2,204 2,344 2,482 10.4% 6.1% 579 586 554 674 753 806 5.2% 9.4%

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 1,474 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 3,779 3,723 3,712 (15.1%) (0.9%) 1,402 1,528 1,008 846 784 855 (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 4,162 7.7% 4.6% 588 701 572 616 688 744 1.5% 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%

Marine

Aegean Marine Petroleum Network Inc. $6,662 $4,232 $4,076 $5,792 $6,560 $8,087 (4.6%) 18.2% $54 $81 $214 $84 $110 $126 15.6% 22.8%

Costamare Inc. 484 490 468 412 412 407 (5.2%) (0.7%) 326 325 317 266 266 263 (6.5%) (0.7%)

Diana Shipping Inc. 176 158 114 153 212 273 (4.6%) 33.8% 52 28 (12) 36 94 148 (11.4%) 102.7%

Kirby Corporation 2,566 2,148 1,771 2,113 2,760 2,910 (6.3%) 17.4% 663 595 471 403 488 530 (15.3%) 14.7%

Matson, Inc. 1,714 1,885 1,942 2,038 2,089 2,186 5.9% 3.6% 203 298 238 298 305 327 13.6% 4.8%

Nordic American Tankers Limited 351 446 357 156 196 238 (23.7%) 23.6% 74 211 139 59 86 130 (7.5%) 48.8%

Rand Logistics, Inc. 153 148 115 0 0 0 NM NA 34 32 27 0 0 0 NM 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 3,335 3,984 4,121 127.0% 11.2% 134 186 80 592 831 948 64.1% 26.5%

Total $13,710 $10,874 $9,932 $14,629 $16,842 $18,890 8.4% 13.7% $1,785 $1,906 $1,568 $1,838 $2,319 $2,626 3.4% 30.4%


Dana Incorporated 6,617 6,060 5,826 7,200 7,643 7,933 2.9% 5.0% 705 618 612 835 920 1,010 5.8% 10.0%

Gentherm Incorporated 812 856 918 982 1,050 1,139 6.5% 7.7% 135 155 146 144 169 165 2.0% 7.3%

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 1,755 2,022 2,050 (2.0%) 8.1% 161 218 241 180 231 219 3.8% 10.3%

Total $9,799 $9,494 $9,180 $10,639 $11,517 $12,016 4.7% 8.4% $1,012 $991 $1,017 $1,189 $1,362 $1,462 13.6% 19.7%

PAGE |


SOURCES


1. FactSet.

2. MergerMarket.

3. Pitchbook.

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