TRANSPORTATION & LOGISTICS...Pending Logistics Wheels Group Inc. Provides third party logistics and supply chain solutions in North America. Radiant Global Logistics Pending Logistics

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 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 │ FEBRUARY 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



LOGISTICS | DELIVERING WITH DATA: HOW LOGISTICS COMPANIES ARE SHIPPING…

With the immediacy technology has brought to life, customer service expectationsare at an all-time high. No industry is immune from those expectations, includingthe logistics industry, where delivery services face greater pressure to getpackages to their destination in the most timely and efficient way possible. Thisrang true over the 2014 holiday season, when trends such as omnichannel retailingand same-day delivery pressured carriers to improve delivery systems or risk losingcustomers.

Forbes

TRUCKING | DRIVER SHORTAGE MAKES CAPITALIZING ON LOW OIL HARD…

A chronic shortage of drivers means America's long-haul trucking companies arestruggling to capitalize on cheap fuel prices that could allow them to take goodsshipments away from railroads. A 50 percent fall in oil prices from their peak lastyear should have erased some of the cost advantage railroads enjoy, especiallyfor longer hauls. But for customers hoping to save money by switching from train totruck, the lack of drivers makes that harder.

Reuters

RAIL | IANA OFFERS BRIGHT FORECAST FOR 2015 INTERMODAL GROWTH

Neither U.S. West Coast port congestion nor the East Coast winter weather couldstop intermodal volume growth in 2014 and they won’t be able to this year either,the Intermodal Association of North America says. Intermodal volume increased4.8 percent in 2014 and will likely see similar-sized gains this year, thanks in largepart to a boost in consumer spending driven by plunging oil prices and astrengthening U.S. dollar.

Journal of Commerce

MARINE | CARRIER ON-TIME RELIABILITY PLUNGES TO NEW LOW AS RATES RISE

U.S. West Coast port congestion and the phasing in of major shipping alliancespulled global carrier reliability to a record low, adding an extra sting to rising rateshitting shippers, according to Drewry’s most recent Carrier Performance Insightreport. The sliver of good news in the report, released Sunday, is that Drewryexpects carrier reliability to improve in the coming months, as “new allianceservices settle down and each carrier group seeks to make their new servicesmore attractive to customers.”

Journal of Commerce

RAIL | FOR 2015, FREIGHT RAIL WILL CARRY THE ECONOMY

The U.S. economy continues to grow, and strong demand for rail servicedemonstrates that the freight rail industry is integral to this growth. By providingcost-effective transportation of goods, from lumber to oil to auto parts, freight rail isplaying a central role in positive economic trends — including rising gross domesticproduct, improving employment statistics and low gasoline prices. In 2015, thenation’s major freight railroads plan to spend an estimated $29 billion — whichwould set an annual record — to build, maintain and grow the rail network.

AAR

AIR | AIR CARGO ENDS 2014 ON A POSITIVE NOTE

The International Air Transport Association (IATA) released full-year air cargo datafor 2014 showing 4.5% demand growth compared to 2013 measured by freighttonne kilometers (FTKs). That is a significant acceleration from the 1.4% recorded in2013 over 2012. Air cargo market expansion gathered momentum as 2014progressed. The year finished on a positive note, with growth in Decemberaccelerating to 4.9%, compared to December 2013.

IATA

http://www.harriswilliams.com/

mailto:[email protected]







http://www.forbes.com/sites/samsungbusiness/2015/02/16/delivering-with-data-how-logistics-companies-are-shipping-on-time/

http://www.reuters.com/article/2015/02/06/usa-truckers-railways-idUSL1N0VF1ZY20150206

http://www.joc.com/rail-intermodal/intermodal-shipping/iana-offers-bright-forecast-2015-intermodal-growth_20150217.html

http://www.joc.com/maritime-news/container-lines/us-west-coast-congestion-alliance-phase-ins-pull-carrier-reliability-new-low-drewry-says_20150216

https://www.aar.org/Pages/2015-Annual-Outlook.aspx

http://www.iata.org/pressroom/pr/Pages/2015-02-04-01.aspx

PAGE |

Date Sector Target Business Description Acquirer

Pending Logistics Toll Holdings Limited Provides integrated logistics serv ices in the Asia-Pacific region and

internationally.

Japan Post Bank Co., Ltd.

Pending Logistics APL Logistics Ltd Provides global supply chain and logistics serv ices across all modes

of transportation.

Kintetsu World Express,

Inc.

Pending Trucking CLP Towne Inc. Doing business as Towne Air Freight. Prov ides full-serv ice trucking

solutions and specializes in time-definite airport-to-airport trucking.

Forward Air, Inc.

Pending Logistics Wheels Group Inc. Prov ides third party logistics and supply chain solutions in North

America.

Radiant Global Logistics

Pending Logistics Charter Brokerage LLC Non-asset based third party logistics prov ider to the petroleum and

chemical industries.

Berkshire Hathaway Inc.

Pending Marine Horizon Lines, Inc. Engages in Jones Act container shipping with primary serv ice to ports

within the continental United States, Alaska, Hawaii, and Puerto Rico.

Matson Navigation

Company, Inc.

Pending Logistics Neovia Logistics

Serv ices, LLC

Provides third party contract logistics serv ices, including warehouse

management, fulfillment, and distribution solutions.

The Goldman Sachs Group

Rhone Capital L.L.C.

2/9/2015 Logistics UX Specialized Logistics Prov ides non-asset based, last mile logistics serv ices including home

delivery, assembly and installation, and same-day delivery.

XPO Last Mile, Inc.

2/5/2015 Logistics Xpress Solutions, Inc. Prov ides non-asset based less-than-truckload and truckload solutions

with a regional focus in the Midwest.

Echo Global Logistics, Inc.

2/4/2015 Rail Railroad Controls Limited Provides railroad signal construction serv ices to the freight and

commuter rail industry.

Westinghouse Air Brake

Technologies Corporation

2/2/2015 Logistics Lazer Spot, Inc. Prov ides outsourced yard management serv ices including trailer

spotting and shuttling.

Greenbriar Equity Group

2/2/2015 Logistics PODS Enterprises, Inc. Prov ides container-based moving and storage serv ices. Ontario Teachers' Pension

Plan

2/2/2015 Logistics Linkex, Inc. Prov ides asset-light, third party logistics serv ices including supply

chain design, transportation, warehousing, and last mile solutions.

Saia, Inc.

1/30/2015 Logistics GENCO Distribution

Systems, Inc.

Prov ides product lifecycle and reverse logistics solutions in North

America and internationally.

FedEx Corporation

1/26/2015 Marine Cronos Ltd. Prov ides intermodal marine container leasing serv ices. Bohai Leasing Co., Ltd.

1/26/2015 Trucking Taylor Express, Inc. Prov ides regional dry van, dry bulk for-hire, and dedicated truckload

serv ices.

Celadon Group Inc.

1/9/2015 Trucking Gardewine Group Inc. Prov ides regional less-than truckload, truckload, and specialized

truckload serv ices primarily in Manitoba and Ontario.

Mullen Group Ltd.

1/5/2015 Logistics Freightquote.com, Inc. Largest prov ider of online freight brokerage serv ices in the United

States.

C.H. Robinson Company,

Inc.

M&A TRANSACTIONS

2

RECENT M&A TRANSACTIONS1,2



PAGE |

PUBLIC MARKETS OVERVIEW

3



TEV / LTM EBITDA TEV / 2015P EBITDA

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

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

8.1x

8.4x

10.5x

11.3x

11.5x

Transportation

Equipment

Trucking

Marine

Rail & Rail Services

Logistics Providers

6.2x

7.1x

8.2x

9.5x

10.6x

Transportation

Equipment

Trucking

Marine


Logistics Providers

6.0%

7.6%

8.7%

9.8%

11.8%

Marine

Logistics Providers

Transportation

Equipment

Trucking


5.5%

5.8%

6.2%

6.3%

6.7%


Transportation

Equipment

Marine

Logistics Providers

Trucking

7.9%

8.5%

9.0%

12.9%

18.8%

Logistics Providers

Transportation

Equipment

Marine

Trucking


10.6%

10.8%

10.9%

11.2%

14.9%


Transportation

Equipment

Marine

Logistics Providers

Trucking

PAGE |

STOCK PRICE PERFORMANCE

4



(Indexed to February 18, 2014)

TRAILING TWELVE MONTHS

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

2.5%

4.2%

4.2%

10.7%

12.6%

Trucking

Logistics

Providers

Marine

Rail & Rail

Services

Transportation

Equipment

(9.3%)

13.3%

15.0%

21.6%

24.3%

Marine

Transportation

Equipment

Logistics Providers

Trucking


(30%)

(20%)

(10%)

0%

10%

20%

30%

40%

2/18/14 5/18/14 8/18/14 11/18/14 2/18/15

Logistics Providers Trucking Rail & 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 has experience across a broad range of sectors, including third-party logistics, rail and rail services, marinetransportation, transportation equipment, niche transportation, automotive and heavy duty vehicle, and airport andaviation services.



RECENTLY CLOSED T&L TRANSACTIONS

DEEP EXPERIENCE ACROSS T&L SECTORS

MARINE TRANSPORTATION

NICHE TRANSPORTATION

TRANSPORTATION EQUIPMENT

RAIL & RAIL SERVICES

AUTOMOTIVE & HEAVY DUTY

VEHICLE

has been acquired by

a portfolio company of

and












a portfolio company ofa portfolio company of

has been acquired byhas been acquired by


THIRD-PARTY LOGISTICS

AIRPORT & AVIATION SERVICES

5

in partnership with

and



RCL Services Group

has sold

to

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

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

Cleveland1900 East 9th Street20th FloorCleveland, Ohio 44114Phone: +1 (216) 689-2400Fax: +1 (216) 689-2401

Minneapolis222 South 9th StreetSuite 3350Minneapolis, Minnesota 55402Phone: +1 (612) 359-2700Fax: +1 (612) 359-2701

Philadelphia1600 Market Street21st FloorPhiladelphia, Pennsylvania 19103Phone: +1 (267) 675-5900Fax: +1 (267) 675-5901

Richmond (U.S. 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

London63 Brook StreetLondon W1K 4HS, EnglandPhone: +44 (0) 20 7518 8900Fax: +44 (0) 20 7526 2187

NETWORK OFFICES

Beijing

Hong Kong

Mumbai

New Delhi

Shanghai


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

http://www.harriswilliams.com/industries

PAGE |

PUBLIC COMPARABLES

7



Stock Performance

Stock Price Change from 52-Week TEV / EBITDA EBITDA

TEV Current Prior Month Prior Year High % of High Feb-14 Aug-14 Current 2014E 2015P


TEV / LTM EBITDA as of

Logistics Providers

Agility Public Warehousing Company KSC $2,799 $2.67 3.2% 18.1% $3.11 85.9% 7.7x 9.9x 8.9x NA NA

Air Transport Services Group, Inc. 908 8.77 0.7% 39.4% 9.57 91.6% 5.0x 5.3x 5.2x 5.1x 4.9x

Atlas Air Worldwide Holdings, Inc. 2,846 47.93 4.3% 48.3% 51.00 94.0% 7.1x 7.8x 8.3x 8.9x 8.3x

CH Robinson Worldwide Inc. 11,430 71.38 (2.8%) 31.2% 77.49 92.1% 12.1x 14.8x 14.2x 14.2x 12.7x

Deutsche Post AG 43,538 33.04 4.2% (9.6%) 33.81 97.7% 10.2x 9.2x 10.1x 8.2x 8.3x

DSV A/S 6,292 31.82 4.1% 2.9% 32.11 99.1% 12.0x 11.8x 13.0x 12.0x 12.1x

Echo Global Logistics, Inc. 609 27.00 (1.4%) 62.7% 30.18 89.5% 12.3x NM 14.7x 13.7x 11.1x

Expeditors International of Washington Inc. 7,773 45.60 5.1% 8.9% 47.24 96.5% 12.0x 11.6x 12.5x 12.2x 11.2x

FedEx Corporation 53,403 179.78 1.7% 35.4% 183.51 98.0% 6.9x 7.4x 8.3x 8.9x 7.8x

Forward Air Corp. 1,587 53.44 13.3% 18.6% 54.60 97.9% 11.7x 12.3x 12.4x 12.2x 10.1x

Hub Group Inc. 1,418 38.40 13.1% (4.1%) 51.47 74.6% 10.5x 12.6x 10.5x 12.6x 11.5x

JB Hunt Transport Services Inc. 10,620 83.14 4.2% 15.0% 85.54 97.2% 11.1x 11.5x 11.5x 11.6x 10.2x

Kuehne + Nagel International AG 16,013 141.33 1.3% 3.4% 147.26 96.0% 14.3x 14.2x 15.5x 15.7x 14.7x

Landstar System Inc. 3,014 68.51 5.4% 15.9% 81.80 83.8% 13.0x 14.0x 12.0x 12.1x 10.8x

Panalpina World Transport Holding Ltd. 2,829 133.80 0.8% (20.4%) 159.44 83.9% NM 18.9x 18.0x 15.1x 11.9x

Roadrunner Transportation Systems, Inc. 1,377 25.26 15.1% 12.8% 29.02 87.0% 10.4x 12.2x 11.3x 11.4x 9.3x

Ryder System, Inc. 9,433 93.82 6.2% 31.2% 95.82 97.9% 5.4x 6.1x 5.8x 5.7x 5.3x

TransForce Inc. 3,312 23.94 (5.4%) 10.6% 25.05 95.6% 8.7x 10.4x 10.2x 9.4x 7.4x

United Parcel Service, Inc. 99,652 102.62 (7.0%) 6.4% 114.40 89.7% 10.8x 12.4x 14.5x 10.9x 10.4x

Universal Truckload Services Inc. 957 24.60 (3.3%) (12.3%) 29.49 83.4% 9.1x 9.2x 8.6x 8.3x 7.1x

UTi Worldwide Inc. 1,843 12.39 8.6% (21.0%) 16.51 75.0% NM 17.8x NM 17.3x 19.3x

World Fuel Services Corp. 4,322 54.44 16.7% 21.9% 54.50 99.9% 11.2x 12.1x 13.6x 13.2x 11.8x

XPO Logistics, Inc. 3,227 41.79 11.3% 51.4% 43.40 96.3% NM NM NM NM 14.7x

Median 4.2% 15.0% 94.0% 10.6x 11.8x 11.5x 12.0x 10.6x

Trucking

ArcBest Corporation $977 $39.78 (5.3%) 23.4% $47.52 83.7% 7.8x 6.7x 6.1x 6.3x 4.9x

Celadon Group Inc. 1,021 25.40 13.6% 18.7% 25.72 98.8% 8.2x 7.3x 9.6x 10.0x 7.8x

Con-way Inc. 3,277 43.97 1.7% 16.9% 53.54 82.1% 6.7x 6.9x 6.4x 6.3x 5.7x

Covenant Transportation Group, Inc. 733 29.10 4.8% 193.1% 30.70 94.8% 5.2x 5.6x 8.3x 8.6x 6.6x

Heartland Express, Inc. 2,276 25.84 (3.6%) 28.9% 27.96 92.4% 12.2x 12.2x 11.1x 9.4x 8.6x

Knight Transportation Inc. 2,774 32.72 0.3% 50.9% 34.69 94.3% 9.2x 10.0x 11.0x 11.2x 9.0x

Marten Transport Ltd. 786 22.80 7.9% 16.6% 25.71 88.7% 5.8x 6.5x 6.9x 6.8x 5.7x

Old Dominion Freight Line Inc. 6,748 76.91 6.2% 44.1% 81.48 94.4% 10.4x 11.8x 11.6x 11.7x 9.8x

P.A.M. Transportation Services, Inc. 468 55.55 (5.3%) 181.6% 63.70 87.2% 4.9x 7.2x 8.5x NA NA

Quality Distribution Inc. 662 10.92 20.5% (22.1%) 15.83 69.0% 10.5x 11.5x 9.6x 8.5x 7.5x

Saia, Inc. 1,198 45.58 (8.8%) 40.2% 57.60 79.1% 6.9x 9.9x 8.3x 8.3x 6.8x

Swift Transportation Company 5,264 27.29 (0.8%) 12.2% 29.44 92.7% 8.6x 8.2x 9.0x 8.7x 7.7x

Universal Truckload Services Inc. 957 24.60 (3.3%) (12.3%) 29.49 83.4% 9.1x 9.2x 8.6x 8.3x 7.1x

USA Truck Inc. 444 31.79 9.7% 132.4% 31.99 99.4% 8.3x 7.4x 7.3x 7.8x 7.1x

Werner Enterprises Inc. 2,304 31.26 3.4% 19.7% 31.71 98.6% 6.5x 6.1x 6.9x 7.0x 6.1x

YRC Worldwide Inc. 1,559 19.85 12.1% (4.1%) 29.21 68.0% 8.7x 10.8x 7.9x 7.1x 4.8x

Median 2.5% 21.6% 90.5% 8.3x 7.8x 8.4x 8.3x 7.1x

PAGE |

PUBLIC COMPARABLES CONT.

8



Rail and Rail Services

American Railcar Industries, Inc. $1,519 $56.12 14.8% 10.6% $82.82 67.8% 6.5x 9.5x 7.4x 7.5x 6.8x

Canadian National Railway Company 63,966 70.79 6.2% 26.5% 71.03 99.6% 11.7x 13.1x 13.1x 13.3x 12.7x

Canadian Pacific Railway Limited 37,370 192.16 7.7% 22.5% 198.91 96.6% 14.4x 15.9x 15.0x 15.0x 13.6x

CSX Corp. 43,861 35.39 1.5% 29.1% 37.99 93.2% 7.9x 8.7x 9.2x 9.2x 8.5x

FreightCar America Inc. 210 30.78 32.9% 26.0% 37.48 82.1% NM NM 12.3x 10.4x 4.0x

Genesee & Wyoming Inc. 6,627 94.12 11.3% (0.5%) 106.02 88.8% 12.4x 13.2x 11.6x 11.4x 10.3x

The Greenbrier Companies, Inc. 1,933 56.10 11.1% 48.2% 78.32 71.6% 9.0x 11.1x 7.5x 7.7x 4.8x

Kansas City Southern 15,460 119.35 8.5% 30.2% 126.49 94.4% 12.7x 14.2x 14.0x 14.0x 12.4x

Norfolk Southern Corporation 42,520 111.21 7.4% 21.7% 117.64 94.5% 8.7x 9.3x 9.4x 9.3x 8.9x

Trinity Industries Inc. 7,281 30.14 18.0% (0.5%) 50.77 59.4% 7.9x 8.1x 5.2x 5.0x 4.8x

Union Pacific Corporation 118,600 123.35 10.2% 38.4% 124.52 99.1% 9.7x 10.5x 11.1x 11.2x 10.1x

Westinghouse Air Brake Technologies Corporation 9,240 92.77 11.4% 22.3% 94.97 97.7% 15.5x 15.9x 15.7x 15.8x 14.1x

Median 10.7% 24.3% 93.8% 9.7x 11.1x 11.3x 10.8x 9.5x

Marine

Aegean Marine Petroleum Network Inc. $1,480 $14.60 6.1% 54.0% $15.11 96.6% 14.1x 14.7x 15.3x 14.0x 10.9x

Costamare Inc. 3,176 19.35 18.1% (4.6%) 24.94 77.6% 13.1x 11.8x 10.0x 9.6x 9.7x

Diana Shipping Inc. 776 7.23 11.1% (42.0%) 13.93 51.9% NM NM 17.9x 14.3x 11.3x

Kirby Corporation 5,199 79.60 1.8% (21.7%) 124.12 64.1% 11.4x 12.2x 8.1x 8.1x 8.4x

Matson, Inc. 1,802 38.46 10.7% 50.6% 38.47 100.0% 7.6x 8.3x 10.5x 8.6x 8.0x

Neptune Orient Lines Limited 6,089 0.75 4.8% (5.5%) 0.78 95.8% NM NM NM NM 9.9x

Nordic American Tankers Limited 1,069 10.31 (10.7%) 4.1% 12.08 85.3% NM NM 14.1x 12.7x 7.0x

Rand Logistics, Inc. 248 3.49 3.6% (48.4%) 7.49 46.6% 10.0x 11.2x 7.7x 7.8x 7.0x

SEACOR Holdings Inc. 1,867 74.13 3.6% (13.0%) 90.69 81.7% 10.7x 8.7x 8.1x 7.7x 6.8x

Wilh. Wilhelmsen ASA 2,199 5.70 (2.7%) (41.1%) 8.07 70.6% NM NM 15.8x 5.4x 5.4x

Median 4.2% (9.3%) 79.7% 11.0x 11.5x 10.5x 8.6x 8.2x

Transportation Equipment

Accuride Corp. $557 $5.18 15.1% 31.1% $5.91 87.6% 11.6x 9.3x 8.1x 7.1x 6.2x

Dana Holding Corporation 4,321 23.08 12.6% 13.3% 24.82 93.0% 5.6x 6.1x 6.1x 5.8x 5.6x

Gentherm Incorporated 1,527 41.69 10.7% 57.9% 52.29 79.7% 11.8x 15.0x 12.3x 11.8x 10.3x

Spartan Motors Inc. 163 5.47 2.2% (4.4%) 5.94 92.1% NM 17.6x 14.6x 15.6x 8.2x

Wabash National Corp. 1,174 14.32 15.1% 6.0% 14.91 96.0% 8.3x 8.3x 7.3x 7.1x 6.2x

Median 12.6% 13.3% 92.1% 10.0x 9.3x 8.1x 7.1x 6.2x

Stock Performance

Stock Price Change from 52-Week TEV / EBITDA EBITDA

TEV Current Prior Month Prior Year High % of High Feb-14 Aug-14 Current 2014E 2015P


TEV / LTM EBITDA as of

PAGE |


9



Logistics Providers

Agility Public Warehousing Company KSC $4,775 $5,039 $4,873 NA NA NA NA NA $199 $254 $296 NA NA NA NA NA

Air Transport Services Group, Inc. 730 607 580 583 589 616 (7.2%) 2.8% 181 163 158 178 186 190 (0.5%) 3.3%

Atlas Air Worldwide Holdings, Inc. 1,384 1,632 1,643 1,806 1,734 1,844 9.3% 1.0% 203 296 307 329 346 346 17.3% 2.6%

CH Robinson Worldwide Inc. 10,336 11,359 12,752 13,441 14,883 16,005 9.1% 9.1% 720 751 731 804 896 974 3.8% 10.0%

Deutsche Post AG 68,631 73,191 75,859 68,190 67,082 69,495 (0.2%) 1.0% 3,384 4,129 4,719 5,260 5,241 5,747 15.8% 4.5%

DSV A/S 7,639 7,937 8,439 7,895 7,908 8,200 1.1% 1.9% 498 519 543 518 518 547 1.3% 2.8%

Echo Global Logistics, Inc. 603 758 884 1,175 1,357 1,604 24.9% 16.9% 23 27 27 45 55 65 25.3% 20.6%

Expeditors International of Washington Inc. 6,162 5,992 6,080 6,555 6,948 7,406 2.1% 6.3% 655 571 600 636 690 737 (1.0%) 7.6%

FedEx Corporation 39,304 42,680 44,287 45,371 47,700 50,474 4.9% 5.5% 4,506 5,367 5,597 6,023 6,869 7,884 10.2% 14.4%

Forward Air Corp. 509 558 626 781 988 1,076 15.4% 17.4% 97 104 107 130 157 184 10.4% 18.9%

Hub Group Inc. 2,752 3,124 3,374 3,550 3,802 4,050 8.9% 6.8% 112 134 138 113 124 141 0.1% 11.6%

JB Hunt Transport Services Inc. 3,678 4,058 4,527 6,176 6,786 7,524 18.9% 10.4% 658 759 830 916 1,039 1,162 11.6% 12.6%

Kuehne + Nagel International AG 17,351 18,699 19,290 21,397 21,226 22,603 7.2% 2.8% 1,038 979 1,070 1,022 1,091 1,182 (0.5%) 7.6%

Landstar System Inc. 2,628 2,771 2,665 3,158 3,479 3,730 6.3% 8.7% 204 223 201 250 280 298 6.9% 9.2%

Panalpina World Transport Holding Ltd. 6,954 7,227 7,589 6,790 7,473 7,806 (0.8%) 7.2% 220 92 161 186 241 291 (5.4%) 25.0%

Roadrunner Transportation Systems, Inc. 844 1,073 1,361 1,826 2,227 2,404 29.4% 14.8% 54 81 99 121 150 169 30.9% 18.3%

Ryder System, Inc. 6,051 6,257 6,419 6,663 6,847 7,254 3.3% 4.3% 1,290 1,396 1,459 1,637 1,764 1,902 8.3% 7.8%

TransForce Inc. 2,378 2,822 2,620 3,168 3,660 3,763 10.0% 9.0% 313 392 317 351 445 469 3.9% 15.6%

United Parcel Service, Inc. 53,105 54,127 55,438 58,098 60,195 63,373 3.0% 4.4% 7,830 3,182 8,864 9,063 9,581 10,300 5.0% 6.6%

Universal Truckload Services Inc. 991 1,037 1,033 1,191 1,253 1,303 6.3% 4.6% 84 96 105 115 136 146 11.1% 12.8%

UTi Worldwide Inc. 4,550 4,914 4,608 4,450 4,284 4,392 (0.7%) (0.7%) 183 213 146 106 97 180 NM NM

World Fuel Services Corp. 34,623 38,945 41,562 45,255 40,121 43,327 9.3% (2.2%) 291 287 301 330 377 412 4.3% 11.7%

XPO Logistics, Inc. 177 279 702 2,301 4,187 6,150 NM NM 3 (20) (28) 76 220 386 NM NM

Total $276,154 $295,087 $307,211 $309,820 $314,728 $334,399 7.6% 6.3% $22,746 $19,995 $26,747 $28,208 $30,503 $33,711 7.9% 11.2%

Trucking

ArcBest Corporation $1,908 $2,066 $2,300 $2,598 $2,804 $3,029 10.9% 8.0% $82 $70 $104 $154 $199 $229 23.2% 22.0%

Celadon Group Inc. 467 475 489 762 877 953 17.7% 11.9% 89 103 106 101 130 145 4.3% 19.8%

Con-way Inc. 5,290 5,580 5,473 5,812 6,188 6,548 3.2% 6.1% 386 428 427 522 575 631 10.6% 9.9%

Covenant Transportation Group, Inc. 512 527 539 704 731 786 11.2% 5.6% 63 71 65 83 111 124 9.5% 22.0%

Heartland Express, Inc. 529 546 582 887 844 897 18.8% 0.5% 132 138 149 241 268 293 22.2% 10.3%

Knight Transportation Inc. 697 752 792 1,089 1,282 1,415 16.0% 14.0% 169 184 192 245 308 345 13.1% 18.8%

Marten Transport Ltd. 604 638 659 677 689 732 3.9% 4.0% 97 101 110 116 137 150 6.1% 13.7%

Old Dominion Freight Line Inc. 1,904 2,135 2,338 2,780 3,132 3,455 13.5% 11.5% 326 396 460 577 684 790 21.0% 16.9%

P.A.M. Transportation Services, Inc. 284 298 313 NA NA NA NA NA 29 41 50 NA NA NA NA NA

Quality Distribution Inc. 628 719 805 992 1,035 1,112 16.4% 5.9% 70 74 73 79 88 96 4.1% 9.8%

Saia, Inc. 1,030 1,099 1,139 1,275 1,327 1,438 7.4% 6.2% 65 107 126 145 177 202 30.3% 18.1%

Swift Transportation Company 3,779 3,976 4,118 4,291 4,548 4,913 4.3% 7.0% 549 573 577 605 687 750 3.3% 11.3%

Universal Truckload Services Inc. 991 1,037 1,033 1,191 1,253 1,303 6.3% 4.6% 84 96 105 115 136 146 11.1% 12.8%

USA Truck Inc. 411 409 444 607 611 672 13.9% 5.2% 33 20 35 57 63 73 20.1% 12.9%

Werner Enterprises Inc. 2,003 2,036 2,029 2,139 2,219 2,339 2.2% 4.6% 311 318 296 331 377 406 2.1% 10.7%

YRC Worldwide Inc. 4,869 4,851 4,865 5,100 5,265 5,594 1.6% 4.7% 49 198 205 226 335 356 NM NM

Total $25,905 $27,143 $27,919 $30,905 $32,804 $35,186 9.8% 6.7% $2,536 $2,917 $3,080 $3,598 $4,274 $4,736 12.9% 14.9%

Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth

2011 2012 2013 2014E 2015P 2016P '11-14E '14E-16P 2011 2012 2013 2014E 2015E 2016P '11-14E '14E-16P


PAGE |


10



Rail and Rail Services

American Railcar Industries, Inc. $519 $712 $751 $749 $842 $838 13.0% 5.8% $55 $145 $179 $203 $227 $239 NM 8.7%

Canadian National Railway Company 8,881 9,952 9,954 10,372 10,388 11,118 5.3% 3.5% 4,112 4,624 4,568 4,820 5,046 5,428 5.4% 6.1%

Canadian Pacific Railway Limited 4,970 5,568 5,631 5,693 5,730 6,260 4.6% 4.9% 1,378 1,778 2,190 2,470 2,729 3,016 21.5% 10.5%

CSX Corp. 11,795 11,763 12,026 12,666 12,917 13,623 2.4% 3.7% 4,446 4,523 4,577 4,779 5,122 5,502 2.4% 7.3%

FreightCar America Inc. 487 677 290 581 826 853 6.0% NM 12 41 (8) 21 58 67 20.9% NM

Genesee & Wyoming Inc. 829 875 1,569 1,641 1,627 1,748 25.6% 3.2% 252 277 533 581 641 698 32.2% 9.6%

The Greenbrier Companies, Inc. 1,174 1,736 1,685 2,209 2,605 2,815 23.5% 12.9% 97 152 145 252 400 448 37.3% 33.2%

Kansas City Southern 2,098 2,239 2,369 2,593 2,720 2,968 7.3% 7.0% 772 872 962 1,109 1,246 1,411 12.8% 12.8%

Norfolk Southern Corporation 11,172 11,040 11,245 11,675 11,655 12,424 1.5% 3.2% 4,073 4,036 4,169 4,547 4,780 5,162 3.7% 6.5%

Trinity Industries Inc. 2,938 3,812 4,365 6,123 6,640 6,420 27.7% 2.4% 575 751 963 1,469 1,517 1,463 36.8% (0.2%)

Union Pacific Corporation 18,508 19,686 20,684 23,966 24,957 26,735 9.0% 5.6% 7,341 8,505 9,223 10,581 11,778 12,863 13.0% 10.3%

Westinghouse Air Brake Technologies Corporation 1,968 2,391 2,566 3,031 3,321 3,591 15.5% 8.8% 334 436 489 586 665 739 20.7% 12.3%

Total $65,339 $70,451 $73,136 $81,296 $84,229 $89,392 11.8% 5.5% $23,446 $26,139 $27,989 $31,420 $34,208 $37,035 18.8% 10.6%

Marine

Aegean Marine Petroleum Network Inc. $6,965 $7,259 $6,335 $6,977 $7,121 $7,753 0.1% 5.4% $75 $85 $75 $111 $138 $155 13.8% 18.1%

Costamare Inc. 382 386 414 482 496 511 8.0% 3.0% 236 238 258 329 328 363 11.7% 5.0%

Diana Shipping Inc. 256 221 164 175 207 248 (11.9%) 19.1% 166 121 53 54 64 74 (31.2%) 17.3%

Kirby Corporation 1,850 2,113 2,242 2,495 2,439 2,537 10.5% 0.9% 445 509 582 640 619 654 12.9% 1.1%

Matson, Inc. 1,463 1,560 1,637 1,730 1,879 2,062 5.8% 9.2% 142 175 172 208 226 250 13.7% 9.6%

Neptune Orient Lines Limited 9,211 9,512 8,831 8,716 8,704 9,268 (1.8%) 3.1% (90) 96 131 299 619 642 NM NM

Nordic American Tankers Limited 95 131 244 158 234 215 18.6% 16.5% 10 7 (22) 86 151 130 NM 22.9%

Rand Logistics, Inc. 98 109 119 155 149 157 16.6% 0.7% 16 28 25 32 35 39 26.7% 11.1%

SEACOR Holdings Inc. 1,032 1,308 1,247 1,322 1,392 1,409 8.6% 3.2% 155 164 197 240 272 278 15.6% 7.6%

Wilh. Wilhelmsen ASA 309 395 325 2,603 2,562 2,640 NM 0.7% 147 227 154 412 416 454 NM 5.0%

Total $21,661 $22,993 $21,559 $24,812 $25,184 $26,798 6.0% 6.2% $1,301 $1,648 $1,626 $2,411 $2,868 $3,039 9.0% 10.9%

Transportation Equipment

Accuride Corp. $805 $795 $643 $705 $740 $744 (4.3%) 2.8% $74 $65 $43 $78 $90 $94 1.8% 9.5%

Dana Holding Corporation 7,544 7,224 6,769 6,618 6,762 7,193 (4.3%) 4.3% 720 753 698 745 767 853 1.1% 7.0%

Gentherm Incorporated 370 555 662 813 915 1,029 30.0% 12.6% 46 70 83 129 148 174 40.5% 16.3%

Spartan Motors Inc. 426 471 470 510 538 569 6.2% 5.7% 14 15 6 10 20 32 (9.5%) NM

Wabash National Corp. 1,187 1,462 1,636 1,859 2,003 1,998 16.1% 3.7% 33 108 142 162 189 198 NM 10.5%

Total $10,331 $10,506 $10,179 $10,503 $10,958 $11,534 8.7% 5.8% $888 $1,011 $972 $1,124 $1,214 $1,351 8.5% 10.8%

Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth

2011 2012 2013 2014E 2015P 2016P '11-14E '14E-16P 2011 2012 2013 2014E 2015E 2016P '11-14E '14E-16P


PAGE |


SOURCES



1. Capital IQ.

2. MergerMarket.

Harris Williams & Co. (www.harriswilliams.com) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS.

The information and views contained in this report were prepared by Harris Williams & Co. (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The financial instruments discussed in this report may not be suitable for all investors, and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.

Copyright© 2015 Harris Williams & Co., all rights reserved.

DISCLOSURES

11

http://www.harriswilliams.com/

TRANSPORTATION & LOGISTICS...Pending Logistics Wheels Group Inc. Provides third party logistics and supply chain solutions in North America. Radiant Global Logistics Pending Logistics

Documents