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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 andregulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.
TRANSPORTATION & LOGISTICS
0
INDUSTRY UPDATE │ JULY 2015
PAGE |
www.harriswilliams.com
LOGISTICS | INVESTMENTS MADE TO BUILD INTEGRATED COLD CHAIN
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
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ JULY 2015
TRUCKING | TOP 100 CARRIERS GET MORE SELECTIVE WITH FREIGHT
The nation’s largest for-hire carriers are becoming more selective about the freightthey haul, taking steps to minimize delays and focusing on better utilization ofequipment and personnel as strong demand and a shortage of drivers continue tostrain capacity. Tight capacity, however, does not necessarily harm growth withinthe trucking industry, as the number of companies with annual revenue of at least$1 billion increased to 35 from 30 the previous year.
Transport Topics
MARINE | SHIPPERS VIEW ALLIANCES AS BULWARKS FOR COMPETITION
The grouping of the world’s largest container lines into four large alliances coveringall east-west trades has yielded an unexpected result. Shippers no longer viewalliances as vehicles for rate collusion but as vehicles to “prop up” smaller lines thatare finding it increasingly difficult to compete with the three largest carriers. BruceCarlton, president and CEO of the National Industrial Transportation League, noted“with some time to observe actual performance, there’s less to be afraid of thanwe once thought.”
Journal of Commerce
AIR | AIRLINES' PROFITS IMPROVE BUT NOT IN CARGO
The International Air Transport Association (IATA) released data for global air freightmarkets showing that growth continued to slow throughout May. Tony Tyler (IATACEO) considers “some economic fundamentals still point to a rebound… but wehave to recognize that business confidence is flat and export orders are indecline.”
IATA
RAIL | INTERMODAL SEES HIGHEST-VOLUME MONTH IN HISTORY
The Association of American Railroads (AAR) reported that intermodal trafficnumbers reached a historic monthly high at 1,117,149 containers and trailers,representing a gain of nearly 4% for the month. John T. Gray (AAR SVP of Policyand Economics) believes “the growth in rail intermodal units is one of America’sbest transportation-related success stories” and “2015 will almost certainly setanother annual record, breaking the record set last year.”
Railway Age
Second-quarter economic growth in the U.S. is generating strong demand fortransportation labor. Employers, however, are having a difficult time satisfying thenew demand. With 269,000 new job postings in May, the industry is experiencing a59.2% year-over-year increase in transport job openings. As unemploymentcontinues to drop, approaching 5%, transport employers continue to experiencedifficulty filling openings, only satisfying approximately 65% of open positions in theindustry.
Journal of Commerce
LOGISTICS | U.S. TRANSPORT JOB OPENINGS SPIKE 59 PERCENT
LOGISTICS | 26TH ANNUAL STATE OF LOGISTICS
The logistics industry as a whole experienced the best year in freight transportationsince the Great Recession, primarily derived through increased efficiencies thatdrove U.S. economic growth. Capacity issues, however, persist, causingapprehension from shippers. Concerned with rate hikes, carriers continue tocreate strategic partnerships. Logistic expenses were, however, held to historicallylow levels as a percentage of GDP, highlighting the industry focus on efficiency.
Logistics Management
PAGE |
Announced Sector Target Business Description Acquirer
7/21/2015 Logistics Extra Express Asset-light prov ider of B2B last mile serv ices based in Los Angeles,
CA.
Dicom Transportation
Group, L.P.
7/20/2015 Equipment Allstate Utility Trailers Inc. Prov ides utility trailers, cargo trailers, car trailers, and dump trailers,
parts, and accessories nationwide.
Mobile Mini, Inc.
7/16/2015 Logistics G4S International
Logistics, Insured Parcel
Serv ices Business
Prov ides secure transportation and delivery for high value goods. UPS Capital Corporation
7/14/2015 Rail Transportation
Technology Serv ices,
Inc.
Engineering and logistics company specializing in handling all aspects
of shipping by rail.
BNSF Logistics LLC
7/10/2015 Equipment US Trailer Holdings and
Quest Capital Group
US Trailer Holdings specializes in leasing highway trailers, domestic
containers, and chassis. Quest Capital Group provides business and
equipment financing to businesses in the United States.
Milestone Equipment
Holdings, LLC
7/8/2015 Air Fraport Cargo Serv ices
GmbH
Provides independent cargo handling serv ices at Frankfurt Airport,
Europe's joint largest cargo airport alongside Paris CDG.
WFS Global SAS
7/6/2015 Logistics TransForce, Inc. Specialized staffing and recruiting company that prov ides qualified
commercial truck drivers to third-party logistics companies, private
fleets, and trucking companies.
Palladium Equity Partners
7/1/2015 Trucking Bulldog Hiway Express Prov ides truck load and intermodal carrier serv ices in the U.S. and
Canada operating several hundred power units and more than 400
trailers.
Daseke, Inc.
6/25/2015 Logistics ReTrans, Inc. Prov ides multimodal transportation management solutions in the U.S.
and internationally.
Kuehne + Nagel
International AG
6/18/2015 Trucking The Kenan Advantage
Group, Inc.
North America's largest tank truck transporter and logistics prov ider,
delivering fuel, chemicals, industrial gases, and food-grade products.
OMERS Private Equity
6/17/2015 Logistics Orbis Logistics, Inc. Operates warehouses in four states and provides final-mile delivery
and distribution serv ices in the Midwest and Southeast.
Dicom Transportation
Group, L.P.
6/15/2015 Logistics Parcel Pro Inc. Prov ider of insured shipping and risk management serv ices
worldwide.
UPS Capital Corporation
6/8/2015 Logistics Serv ice By Air, Inc. Prov ides transportation and logistics serv ices through its network of
exclusive agent and company-owned offices across North America.
Radiant Logistics, Inc.
6/8/2015 Logistics RoadOne
IntermodaLogistics, LLC
Provides full-serv ice intermodal transportation solutions for domestic
and international shippers.
Tritium Partners
6/1/2015 Logistics Haas Industries, Inc. Prov ides freight forwarding and logistics serv ices. Lynden International Inc.
6/1/2015 Logistics ABC Fulfillment, LLC Provides e-commerce serv ices, specializing in high volume direct-to-
consumer order fulfillment and customer serv ice.
TAGG Logistics, LLC
5/25/2015 Trucking Hodges Trucking
Company, L.L.C.
Operates as an oilfield carrier and heavy haul transportation
company.
Aveda Transportation and
Energy Serv ices Inc.
5/22/2015 Equipment Crane Rental
Corporation
Provides heavy haul, specialized rigging, and crane serv ices in the
Southeast United States.
Maxim Crane Works, L.P.
M&A TRANSACTIONS
2
RECENT M&A TRANSACTIONS1,2
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ JULY 2015
PAGE |
8.8%
11.6%
14.0%
15.1%
15.6%
Rail & Rail Services
Transportation
Equipment
Logistics Providers
Trucking
Marine
6.9%
7.4%
7.5%
13.0%
17.5%
Logistics Providers
Transportation
Equipment
Marine
Trucking
Rail & Rail Services
(0.4%)
5.2%
6.1%
6.6%
8.5%
Marine
Transportation
Equipment
Logistics Providers
Rail & Rail Services
Trucking
3.5%
6.4%
7.7%
8.7%
11.5%
Marine
Logistics Providers
Trucking
Transportation
Equipment
Rail & Rail Services
5.4x
6.4x
8.5x
8.9x
10.3x
Transportation
Equipment
Trucking
Marine
Rail & Rail Services
Logistics Providers
6.3x
7.2x
8.6x
9.3x
10.7x
Transportation
Equipment
Trucking
Rail & Rail Services
Marine
Logistics Providers
PUBLIC MARKETS OVERVIEW
3
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ JULY 2015
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)
PAGE |
(30%)
(25%)
(20%)
(15%)
(10%)
(5%)
0%
5%
10%
15%
20%
Jul-20-2014 Oct-20-2014 Jan-20-2015 Apr-20-2015 Jul-20-2015
Logistics Providers Trucking Rail & Rail Services
Marine Transportation Equipment S&P 500 Index
(20.6%)
(17.3%)
(11.2%)
(5.4%)
1.8%
Marine
Rail & Rail Services
Transportation
Equipment
Trucking
Logistics Providers
(11.0%)
(7.6%)
(4.5%)
(4.0%)
(3.3%)
Transportation
Equipment
Rail & Rail Services
Trucking
Marine
Logistics Providers
STOCK PRICE PERFORMANCE
4
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ JULY 2015
(Indexed to July 20, 2014)
TRAILING TWELVE MONTHS
MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH)
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.
TRANSPORTATION & LOGISTICS
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
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company ofa portfolio company of
has been acquired byhas been acquired by
a portfolio company of
has been acquired by
a portfolio company of
and
in partnership with
and
RCL Services Group
has sold
tohas been acquired by
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
a portfolio company of
has been acquired by
a portfolio company of
INDUSTRY UPDATE │ JULY 2015
Energy & Power
IndustrialsHealthcare & Life Sciences
Transportation & Logistics
Aerospace, Defense & Government
Services
Business Services
Building Products & Materials
Technology, Media & Telecom
Specialty Distribution
Consumer
PAGE |
HARRIS WILLIAMS & CO. OFFICE LOCATIONS
UNITED STATES EUROPE
BostonTwo International Place24th FloorBoston, Massachusetts 02110Phone: +1 (617) 482-7501Fax: +1 (617) 482-7503
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Richmond (Headquarters)1001 Haxall Point9th FloorRichmond, Virginia 23219Phone: +1 (804) 648-0072Fax: +1 (804) 648-0073
San Francisco575 Market Street31st FloorSan Francisco, California 94105, USAPhone: +1 (415) 288-4260Fax: +1 (415) 288-4269
FrankfurtBockenheimer Landstrasse 33-3560325 FrankfurtGermanyPhone: +49 069 3650638 00Fax: +49 069 3650638 01
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NETWORK OFFICES
Beijing
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Transportation & Logistics
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
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ JULY 2015
6
PAGE |
Logistics Providers
Agility Public Warehousing Company KSC $2,197 $2.14 (8.2%) (17.5%) $2.89 74.2% 8.5x 10.2x 8.5x 8.3x 7.7x
Air Transport Services Group, Inc. 987 10.28 (1.2%) 26.6% 10.96 93.8% 5.2x 5.0x 5.3x 5.5x 5.2x
Atlas Air Worldwide Holdings, Inc. 2,782 50.83 (7.1%) 41.0% 59.47 85.5% 8.1x 8.4x 7.5x 8.1x 7.4x
CH Robinson Worldwide Inc. 10,280 63.67 (0.8%) (1.8%) 77.49 82.2% 14.2x 14.4x 12.5x 12.9x 11.7x
Deutsche Post AG 41,359 31.40 5.9% (8.7%) 33.84 92.8% 9.8x 9.5x 10.7x 9.3x 8.6x
DSV A/S 6,760 34.74 2.6% 7.5% 35.10 99.0% 12.1x 12.6x 15.3x 13.9x 13.5x
Echo Global Logistics, Inc. 929 32.77 (1.3%) 60.8% 34.35 95.4% 15.1x 17.7x NM NM 12.4x
Expeditors International of Washington Inc. 7,573 44.98 (6.4%) 0.6% 49.51 90.9% 12.5x 11.4x 11.2x 11.8x 10.3x
FedEx Corporation 51,577 170.21 (3.3%) 11.3% 185.19 91.9% 7.1x 8.2x 7.2x 8.0x 7.5x
Forward Air Corp. 1,672 51.66 (4.1%) 8.0% 57.65 89.6% 12.5x 11.2x 13.7x 13.2x 10.7x
Hub Group Inc. 1,420 39.01 (9.5%) (19.1%) 49.31 79.1% 12.9x 9.2x 10.5x 10.5x 11.4x
JB Hunt Transport Services Inc. 10,633 83.61 (4.0%) 7.0% 93.50 89.4% 11.7x 11.0x 10.6x 11.5x 10.1x
Kuehne + Nagel International AG 15,954 136.58 0.1% 1.8% 154.44 88.4% 14.1x 15.9x 15.1x 16.2x 15.0x
Landstar System Inc. 2,981 67.61 0.2% 4.4% 81.80 82.7% 13.3x 11.5x 11.7x 11.9x 11.0x
Panalpina World Transport Holding Ltd. 2,550 122.04 (8.3%) (19.8%) 153.72 79.4% 19.1x 18.4x 16.6x 17.0x 12.3x
Roadrunner Transportation Systems, Inc. 1,397 25.50 (5.0%) (7.9%) 28.61 89.1% 12.9x 10.5x 10.8x 11.6x 9.2x
Ryder System, Inc. 9,521 91.71 (1.9%) 2.5% 100.64 91.1% 5.9x 5.6x 5.8x 5.8x 5.3x
TransForce Inc. 3,254 19.11 (8.9%) (17.9%) 24.35 78.5% 10.0x 9.6x 9.0x 9.0x 7.9x
United Parcel Service, Inc. 94,772 97.59 (3.2%) (6.0%) 114.40 85.3% 12.8x 15.5x 13.5x 13.8x 9.8x
Universal Truckload Services Inc. 849 21.33 (4.0%) (14.8%) 29.06 73.4% 9.1x 7.6x 7.3x 7.4x 7.1x
UTi Worldwide Inc. 1,508 8.60 (15.9%) (15.0%) 14.75 58.3% NM NM NM 17.9x 15.9x
World Fuel Services Corp. 3,841 48.77 (0.1%) 2.5% 58.50 83.4% 12.6x 11.7x 11.6x 12.1x 10.8x
XPO Logistics, Inc. 4,403 46.29 (2.6%) 70.1% 50.96 90.8% NM NM NM NM 11.5x
Median (3.3%) 1.8% 88.4% 12.5x 11.0x 10.7x 11.6x 10.3x
Trucking
ArcBest Corporation $751 $30.49 (11.1%) (27.7%) $47.52 64.2% 7.9x 6.7x 4.6x 4.8x 4.0x
Celadon Group Inc. 1,038 21.55 (5.1%) (3.9%) 29.15 73.9% 7.9x 7.9x 8.9x 10.0x 7.7x
Con-way Inc. 2,438 37.03 (7.4%) (24.4%) 53.54 69.2% 6.8x 5.7x 4.8x 4.9x 4.5x
Covenant Transportation Group, Inc. 679 25.48 (6.5%) 99.8% 36.82 69.2% 5.6x 8.0x 6.8x 7.7x 5.5x
Heartland Express, Inc. 1,670 19.62 (4.6%) (10.7%) 27.96 70.2% 11.3x 11.3x 8.0x 8.0x 6.9x
Knight Transportation Inc. 2,319 27.44 (2.4%) 12.6% 34.73 79.0% 9.8x 11.2x 8.9x 9.7x 7.4x
Marten Transport Ltd. 648 19.40 (11.7%) (8.4%) 24.92 77.8% 6.6x 6.4x 5.3x 5.6x 4.7x
Old Dominion Freight Line Inc. 5,914 68.54 (4.4%) 10.9% 81.48 84.1% 10.8x 10.9x 9.6x 10.1x 8.7x
P.A.M. Transportation Services, Inc. 509 58.70 4.4% 79.8% 67.61 86.8% 6.6x 9.0x 8.5x 9.3x NA
Quality Distribution Inc. 770 15.84 0.8% 6.0% 15.88 99.7% 11.7x 8.7x 11.2x 11.0x 9.0x
Saia, Inc. 1,088 39.40 (2.3%) (12.9%) 57.60 68.4% 9.0x 8.9x 7.2x 7.5x 6.4x
Swift Transportation Company 4,581 22.84 (1.7%) (6.9%) 29.44 77.6% 9.1x 9.1x 7.5x 7.9x 6.8x
Universal Truckload Services Inc. 849 21.33 (4.0%) (14.8%) 29.06 73.4% 9.1x 7.6x 7.3x 7.4x 7.1x
USA Truck Inc. 317 20.10 (17.6%) 14.4% 32.14 62.5% 7.3x 6.9x 5.0x 5.3x 4.8x
Werner Enterprises Inc. 1,995 27.54 (0.2%) 4.4% 33.42 82.4% 6.4x 6.9x 5.8x 6.3x 5.2x
YRC Worldwide Inc. 1,374 12.90 (8.4%) (53.3%) 28.29 45.6% 12.0x 7.5x 5.8x 7.0x 4.5x
Median (4.5%) (5.4%) 73.7% 8.5x 7.9x 7.2x 7.6x 6.4x
PUBLIC COMPARABLES
7
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ JULY 2015
Stock Performance
Stock Price Change from 52-Week TEV / EBITDA EBITDA
($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Jun-14 Dec-14 Current 2014 2015E
Transportation & Logistics
TEV / LTM EBITDA as of
PAGE |
Rail and Rail Services
American Railcar Industries, Inc. $1,254 $44.18 (15.8%) (33.8%) $82.82 53.3% 8.0x 6.2x 5.5x 6.1x 5.0x
Canadian National Railway Company 55,315 60.02 (2.2%) (11.8%) 68.49 87.6% 13.2x 12.4x 11.3x 11.3x 11.8x
Canadian Pacific Railway Limited 30,949 158.99 (5.2%) (18.4%) 190.74 83.4% 15.7x 14.1x 13.1x 12.7x 12.0x
CSX Corp. 40,501 32.00 (8.5%) 2.9% 37.99 84.2% 8.8x 9.1x 8.2x 8.5x 8.2x
FreightCar America Inc. 150 19.47 (16.6%) (14.8%) 37.48 51.9% NM 12.0x 6.2x 8.8x 4.1x
Genesee & Wyoming Inc. 6,297 71.84 (10.2%) (30.4%) 105.49 68.1% 13.4x 10.8x 10.7x 11.0x 10.5x
The Greenbrier Companies, Inc. 1,720 43.99 (17.7%) (33.2%) 78.32 56.2% 10.6x 6.9x 4.7x 7.2x 4.0x
Kansas City Southern 13,159 97.40 2.3% (16.3%) 126.49 77.0% 14.6x 13.0x 12.1x 11.9x 12.0x
Norfolk Southern Corporation 34,930 86.09 (6.7%) (18.9%) 117.64 73.2% 9.4x 8.8x 7.8x 7.7x 8.5x
Trinity Industries Inc. 7,192 25.77 (12.7%) (42.7%) 50.77 50.8% 7.7x 5.2x 5.1x 5.1x 4.6x
Union Pacific Corporation 97,106 98.31 (2.8%) (3.0%) 124.52 79.0% 10.2x 10.2x 9.0x 9.1x 9.2x
Westinghouse Air Brake Technologies Corporation 9,361 95.10 (3.7%) 17.3% 105.10 90.5% 15.1x 14.1x 15.1x 15.9x 14.0x
Median (7.6%) (17.3%) 75.1% 10.6x 10.5x 8.6x 8.9x 8.9x
Marine
Aegean Marine Petroleum Network Inc. $1,214 $11.77 (10.3%) 20.7% $15.71 74.9% 13.8x 13.0x 12.2x 12.4x 9.3x
Costamare Inc. 2,988 18.12 (7.0%) (24.2%) 24.94 72.7% 12.0x 9.1x 9.3x 9.4x 9.0x
Diana Shipping Inc. 967 7.93 3.8% (22.9%) 11.04 71.8% 19.8x 14.3x NM 19.3x NM
Kirby Corporation 5,022 75.23 (4.0%) (36.7%) 124.12 60.6% 12.0x 7.9x 7.8x 7.8x 8.6x
Matson, Inc. 1,865 41.88 (1.6%) 46.2% 43.84 95.5% 8.7x 8.1x 8.0x 9.2x 7.6x
Neptune Orient Lines Limited 6,012 0.68 7.9% (9.9%) 0.88 77.5% NM NM 14.2x NM 12.6x
Nordic American Tankers Limited 1,649 16.61 16.5% 78.6% 17.19 96.6% NM 19.9x 19.4x NM 7.5x
Rand Logistics, Inc. 241 3.17 (3.9%) (45.9%) 6.65 47.7% 8.7x 6.9x 7.9x 8.2x 6.8x
SEACOR Holdings Inc. 1,698 64.95 (8.1%) (18.3%) 83.12 78.1% 8.9x 7.5x 8.0x 6.9x 8.5x
Wilh. Wilhelmsen ASA 2,191 5.81 (4.8%) (27.4%) 6.75 86.1% NM 15.4x 14.2x 15.7x 5.0x
Median (4.0%) (20.6%) 76.2% 12.0x 9.1x 9.3x 9.3x 8.5x
Transportation Equipment
Accuride Corp. $486 $3.70 (7.7%) (27.7%) $5.75 64.3% 9.6x 7.0x 6.3x 6.5x 5.4x
Dana Holding Corporation 3,838 19.35 (11.0%) (14.9%) 24.82 78.0% 6.0x 6.2x 5.5x 5.4x 5.2x
Gentherm Incorporated 1,792 49.36 (12.4%) 4.4% 57.95 85.2% 14.9x 10.3x 13.2x 13.3x 11.9x
Spartan Motors Inc. 139 4.26 (13.8%) (6.6%) 5.71 74.6% 16.1x 16.9x 15.0x 14.8x 13.1x
Wabash National Corp. 1,027 11.95 (7.9%) (11.2%) 15.21 78.6% 8.3x 6.9x 6.1x 6.4x 5.2x
Median (11.0%) (11.2%) 78.0% 9.6x 7.0x 6.3x 6.5x 5.4x
PUBLIC COMPARABLES
8
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ JULY 2015
Stock Performance
Stock Price Change from 52-Week TEV / EBITDA EBITDA
($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Jun-14 Dec-14 Current 2014 2015E
Transportation & Logistics
TEV / LTM EBITDA as of
PAGE |
Logistics Providers
Agility Public Warehousing Company KSC $4,775 $5,039 $4,873 $4,633 $4,603 $4,815 (1.0%) 1.9% $199 $254 $296 $265 $284 $303 10.0% 7.1%
Air Transport Services Group, Inc. 730 607 580 590 605 623 (6.9%) 2.8% 181 163 158 179 191 199 (0.3%) 5.3%
Atlas Air Worldwide Holdings, Inc. 1,384 1,632 1,643 1,785 1,834 1,872 8.8% 2.4% 203 296 307 344 376 373 19.1% 4.1%
CH Robinson Worldwide Inc. 10,336 11,359 12,752 13,470 14,270 15,278 9.2% 6.5% 720 751 731 797 880 926 3.4% 7.8%
Deutsche Post AG 68,631 73,191 75,621 68,547 65,236 67,747 (0.0%) (0.6%) 3,384 4,129 5,108 4,424 4,819 5,332 9.3% 9.8%
DSV A/S 7,639 7,937 8,439 7,896 7,523 7,819 1.1% (0.5%) 498 519 543 486 503 537 (0.8%) 5.2%
Echo Global Logistics, Inc. 603 758 884 1,173 1,684 2,255 24.9% 38.6% 23 27 27 36 74 107 16.5% 72.6%
Expeditors International of Washington Inc. 6,162 5,992 6,080 6,565 7,089 7,585 2.1% 7.5% 655 571 600 644 731 787 (0.6%) 10.6%
FedEx Corporation 39,304 42,680 44,287 45,567 47,609 50,467 5.1% 5.2% 4,506 5,367 6,112 6,417 6,891 7,899 12.5% 10.9%
Forward Air Corp. 509 584 652 781 992 1,080 15.4% 17.6% 97 104 107 127 158 184 9.4% 20.7%
Hub Group Inc. 2,752 3,124 3,374 3,571 3,673 3,912 9.1% 4.7% 112 134 138 135 123 142 6.4% 2.4%
JB Hunt Transport Services Inc. 3,678 4,058 4,527 5,083 6,280 NA 11.4% NA 658 759 830 926 1,056 1,181 12.1% 12.9%
Kuehne + Nagel International AG 17,351 18,699 19,290 17,618 21,399 22,623 0.5% 13.3% 1,038 979 1,070 987 1,065 1,116 (1.7%) 6.4%
Landstar System Inc. 2,594 2,735 2,628 3,145 3,377 3,620 6.6% 7.3% 204 223 201 250 271 297 6.9% 9.0%
Panalpina World Transport Holding Ltd. 6,954 7,227 7,589 6,752 6,877 7,172 (1.0%) 3.1% 220 92 161 150 208 266 (11.9%) 33.1%
Roadrunner Transportation Systems, Inc. 844 1,073 1,361 1,873 2,144 2,293 30.5% 10.7% 54 81 99 121 151 169 30.9% 18.4%
Ryder System, Inc. 6,051 6,257 6,419 6,639 6,708 7,135 3.1% 3.7% 1,290 1,396 1,459 1,628 1,790 1,946 8.1% 9.3%
TransForce Inc. 2,378 2,822 2,620 2,817 3,429 3,518 5.8% 11.8% 313 392 318 361 415 448 4.9% 11.4%
United Parcel Service, Inc. 53,105 54,127 55,438 58,232 59,696 62,766 3.1% 3.8% 7,830 3,201 8,868 6,864 9,647 10,333 (4.3%) 22.7%
Universal Truckload Services Inc. 991 1,037 1,033 1,192 1,166 1,234 6.3% 1.8% 84 96 105 115 118 129 11.1% 6.1%
UTi Worldwide Inc. 4,550 4,914 4,608 4,436 4,284 4,157 (0.8%) (3.2%) 183 213 146 84 96 111 NM 14.6%
World Fuel Services Corp. 34,623 38,945 41,562 43,386 31,998 35,056 7.8% (10.1%) 291 287 301 319 362 377 3.0% 8.7%
XPO Logistics, Inc. 177 279 702 2,357 6,705 10,617 NM NM 3 (25) (20) 95 381 698 NM NM
Total $276,120 $295,078 $306,963 $308,106 $309,181 $323,643 6.4% 6.1% $22,746 $20,009 $27,664 $25,752 $30,591 $33,862 6.9% 14.0%
Trucking
ArcBest Corporation $1,908 $2,066 $2,300 $2,613 $2,760 $2,941 11.1% 6.1% $82 $70 $104 $155 $190 $216 23.5% 18.1%
Celadon Group Inc. 467 475 489 615 888 997 9.6% 27.3% 89 103 106 104 136 158 5.4% 23.3%
Con-way Inc. 5,290 5,580 5,473 5,806 5,922 6,252 3.2% 3.8% 386 428 427 493 547 600 8.5% 10.3%
Covenant Transportation Group, Inc. 512 527 539 579 736 782 4.2% 16.2% 63 71 65 89 123 133 11.8% 22.4%
Heartland Express, Inc. 529 546 582 871 780 832 18.1% (2.3%) 132 138 149 208 240 268 16.3% 13.5%
Knight Transportation Inc. 697 752 792 926 1,269 1,406 9.9% 23.2% 169 184 192 239 314 353 12.3% 21.5%
Marten Transport Ltd. 604 638 659 673 684 755 3.7% 5.9% 97 101 110 115 139 152 5.9% 15.0%
Old Dominion Freight Line Inc. 1,904 2,135 2,338 2,788 3,051 3,409 13.6% 10.6% 326 396 460 587 676 774 21.6% 14.8%
P.A.M. Transportation Services, Inc. 284 298 313 317 NA NA 3.7% NA 29 41 50 55 NA NA 23.7% NA
Quality Distribution Inc. 628 719 805 854 1,020 1,093 10.8% 13.1% 70 69 72 70 84 92 0.0% 14.7%
Saia, Inc. 1,030 1,099 1,139 1,272 1,249 1,348 7.3% 2.9% 65 107 126 145 169 190 30.3% 14.6%
Swift Transportation Company 3,779 3,976 4,118 4,299 4,417 4,787 4.4% 5.5% 549 573 577 583 666 742 2.0% 12.8%
Universal Truckload Services Inc. 991 1,037 1,033 1,192 1,166 1,234 6.3% 1.8% 84 96 105 115 118 129 11.1% 6.1%
USA Truck Inc. 411 512 555 602 589 639 13.6% 3.0% 33 20 35 60 67 74 22.0% 10.7%
Werner Enterprises Inc. 2,003 2,036 2,029 2,139 NA NA 2.2% NA 311 318 296 318 380 408 0.7% 13.3%
YRC Worldwide Inc. 4,869 4,851 4,865 5,069 5,072 5,294 1.4% 2.2% 49 198 199 197 312 343 NM NM
Total $25,905 $27,247 $28,030 $30,615 $29,604 $31,769 7.7% 8.5% $2,536 $2,913 $3,073 $3,532 $4,161 $4,631 13.0% 15.1%
PUBLIC COMPARABLES
9
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ JULY 2015
Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth
($ in millions) 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P
Transportation & Logistics
PAGE |
Rail and Rail Services
American Railcar Industries, Inc. $519 $712 $751 $733 $925 $849 12.2% 7.6% $55 $145 $179 $204 $253 $242 NM 8.8%
Canadian National Railway Company 8,881 9,952 9,954 10,478 9,765 10,394 5.7% (0.4%) 4,112 4,624 4,568 4,900 4,721 5,124 6.0% 2.3%
Canadian Pacific Railway Limited 4,970 5,568 5,631 5,582 5,320 5,747 3.9% 1.5% 1,378 1,778 2,190 2,434 2,556 2,794 20.9% 7.1%
CSX Corp. 11,795 11,763 12,026 12,669 12,185 12,638 2.4% (0.1%) 4,446 4,523 4,577 4,764 4,934 5,265 2.3% 5.1%
FreightCar America Inc. 487 677 290 599 745 798 7.1% 15.5% 12 41 (8) 17 36 48 12.2% NM
Genesee & Wyoming Inc. 829 875 1,569 1,639 2,075 2,346 25.5% 19.7% 252 277 534 574 609 693 31.6% 10.0%
The Greenbrier Companies, Inc. 1,174 1,736 1,685 2,121 2,647 2,830 21.8% 15.5% 97 152 145 237 427 472 34.5% 41.0%
Kansas City Southern 2,098 2,239 2,369 2,577 2,473 2,669 7.1% 1.8% 772 872 962 1,106 1,095 1,234 12.7% 5.6%
Norfolk Southern Corporation 11,172 11,040 11,245 11,624 10,938 11,469 1.3% (0.7%) 4,082 4,036 4,169 4,522 4,108 4,471 3.5% (0.6%)
Trinity Industries Inc. 2,938 3,812 4,365 6,170 7,081 6,872 28.1% 5.5% 575 730 963 1,400 1,566 1,439 34.6% 1.4%
Union Pacific Corporation 18,508 19,686 20,684 22,560 23,106 24,586 6.8% 4.4% 7,341 8,505 9,223 10,657 10,559 11,519 13.2% 4.0%
Westinghouse Air Brake Technologies Corporation 1,968 2,391 2,566 3,044 3,363 3,627 15.7% 9.1% 334 436 485 588 670 743 20.8% 12.4%
Total $65,339 $70,451 $73,136 $79,795 $80,623 $84,825 11.5% 6.6% $23,455 $26,119 $27,987 $31,403 $31,533 $34,043 17.5% 8.8%
Marine
Aegean Marine Petroleum Network Inc. $6,965 $7,259 $6,335 $6,662 $4,297 $5,037 (1.5%) (13.0%) $75 $85 $75 $98 $134 $149 9.1% 23.4%
Costamare Inc. 382 386 414 484 490 513 8.2% 3.0% 236 238 258 318 334 354 10.4% 5.6%
Diana Shipping Inc. 256 221 164 176 163 187 (11.8%) 3.1% 166 124 53 50 35 43 (32.9%) (6.9%)
Kirby Corporation 1,850 2,113 2,242 2,566 2,268 2,376 11.5% (3.8%) 445 509 582 647 583 627 13.3% (1.5%)
Matson, Inc. 1,463 1,560 1,637 1,714 1,896 2,082 5.4% 10.2% 142 175 172 203 244 275 12.8% 16.4%
Neptune Orient Lines Limited 9,211 9,512 8,831 8,617 6,945 6,868 (2.2%) (10.7%) (90) 96 131 294 478 544 NM NM
Nordic American Tankers Limited 95 131 244 351 283 255 NM NM 10 13 (21) 60 219 186 NM 76.5%
Rand Logistics, Inc. 98 109 119 129 149 152 9.9% 8.3% 16 28 25 29 35 36 23.3% 11.0%
SEACOR Holdings Inc. 1,032 1,308 1,247 1,319 1,199 1,322 8.5% 0.1% 155 164 197 245 199 248 16.4% 0.6%
Wilh. Wilhelmsen ASA 309 395 325 285 2,488 2,571 NM NM 147 227 154 140 453 447 NM NM
Total $21,661 $22,993 $21,559 $22,303 $20,178 $21,361 3.5% (0.4%) $1,301 $1,658 $1,627 $2,083 $2,713 $2,911 7.5% 15.6%
Transportation Equipment
Accuride Corp. $805 $795 $643 $705 $750 $755 (4.3%) 3.4% $74 $65 $43 $75 $90 $94 0.2% 12.4%
Dana Holding Corporation 7,544 7,224 6,769 6,617 6,360 6,702 (4.3%) 0.6% 720 753 706 705 740 797 (0.7%) 6.3%
Gentherm Incorporated 370 555 662 811 907 1,028 30.0% 12.5% 46 67 84 135 151 181 42.6% 16.0%
Spartan Motors Inc. 426 471 470 507 535 570 6.0% 6.1% 14 16 6 9 11 16 (12.6%) NM
Wabash National Corp. 1,187 1,462 1,636 1,863 2,024 1,996 16.2% 3.5% 33 108 142 161 200 200 NM 11.6%
Total $10,331 $10,506 $10,179 $10,504 $10,576 $11,050 8.7% 5.2% $888 $1,008 $981 $1,084 $1,191 $1,288 7.4% 11.6%
PUBLIC COMPARABLES
10
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ JULY 2015
Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth
($ in millions) 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P
Transportation & Logistics
PAGE |
TRANSPORTATION & LOGISTICS
SOURCES
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ JULY 2015
1. Capital IQ.
2. MergerMarket.
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DISCLOSURES
11
