Transportation & Logistics

TRANSPORTATION & LOGISTICS

INDUSTRY UPDATE │ MARCH 2017

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 limited company 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 and Wales (registration number 7078852). Harris Williams & Co. Ltd is authorized 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.

0 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MARCH 2017

WHAT WE’RE READING

CONTENTS LOGISTICS | U.S. RETAILERS DESTOCK, RESTOCK FASTER, BOOSTING FREIGHT . M&A TRANSACTIONS Evidence of inventory destocking at least partially responsible for the recent surge . PUBLIC MARKETS OVERVIEW in US imports and rising domestic freight volumes is showing up in retailers’ earnings . STOCK PRICE PERFORMANCE reports, with several store chains claiming reduced stockpiles helped boost pricing . OUR GROUP and profit in late 2016. But transportation executives say destocking is far from even across the retail world, let alone other industries. Although some are enjoying an earlier-than-usual uptick in freight demand in the first quarter, others are still waiting for an event big enough to jog the demand dial. The largest US retailer, CONTACTS Wal-Mart Stores, reported a big reduction in US inventories this week, company- wide and on a comparable store basis. “We’re entering the new year in a very UNITED STATES solid inventory position,” Brett Biggs, CFO, said Feb. 21. Journal of Commerce Frank Mountcastle Managing Director TRUCKING | FEBRUARY BOASTS SOLID SPOT TRUCKLOAD VOLUMES [email protected] +1 (804) 915-0124 Despite spot truckload rates softening compared to January, February's total Jason Bass freight volume was up 48% compared to February 2016. “Volume on the spot Managing Director market in February was robust for what is traditionally a slow month for freight,” [email protected] said Don Thornton, senior vice president of DAT Solutions. “The strong freight +1 (804) 915-0132 volumes attracted an unusual number of contract carriers, and the added capacity helped keep rates down on many high-traffic van and reefer lanes until Joe Conner late in February, when national average contract rates began to firm up.” Managing Director [email protected] According to DAT solutions, February's spot van and refrigerated freight rates were +1 (804) 915-0151 held down by an influx of capacity from contract carriers. Today's Trucking Jeff Burkett Director [email protected] MARINE | NEW ALLIANCES WILL HAVE FEWER DIRECT PORT CALLS +1 (804) 932-1334

As carriers begin extricating themselves from their current vessel sharing Jershon Jones Director agreements and reposition ships in preparation for the launch of the new Ocean [email protected] Alliance and THE Alliance on April 1, an analysis of the new networks has revealed +1 (804) 932-1356 a surprising loss of direct port connections. Now that the complete network details have finally been made available by the carriers, maritime analyst SeaIntel found Jeff Kidd that on Asia-Europe and the Trans-Pacific, a significant number of direct port-to- Vice President port combinations will be removed. With 78 port-pairs lost, Northeast Asia- [email protected] +1 (804) 915-0178 Mediterranean is the sub-trade that will see the largest loss of connectivity and product differentiation with the launch of the new alliances, SeaIntel found. James O’Malley Journal of Commerce Vice President [email protected] +1 (804) 915-0165 RAIL | RAIL FREIGHT—INCLUDING COAL—REGISTERS ANOTHER GAIN

The Association of American Railroads (AAR), in reporting U.S. rail traffic for the week ending March 11, 2017, noted that total U.S. weekly rail traffic was 510,638 carloads and intermodal units, up 4.4% compared with the same week last year. EUROPE Coal, seemingly on the rebound, rose nearly 12%. Total carloads for the week ending March 11 were 253,664 carloads, up 4.3% compared with the same week Jeffery Perkins in 2016, while U.S. weekly intermodal volume was 256,974 containers and trailers, Managing Director up 4.5% compared to 2016. [email protected] RailwayAge +49 (0) 69 3650638 00

AIR | AIR CARGO OFF TO A SOLID START IN 2017

The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), rose 6.9% in January 2017 compared to the year-earlier period. While this was down from the 10% annual growth recorded in December 2016 it still was well above the average annual growth rate of 3% over the past five years. Growth in freight capacity, measured in available freight tonne kilometers (AFTKs), slowed to 3.5% in January 2017. IATA www.harriswilliams.com

PAGE | 1 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MARCH 2017

M&A TRANSACTIONS(1,2,3)

RECENT M&A TRANSACTIONS

Date Sector Target Business Description Acquirer 3/16/2017 Logistics Supply Chain Coach, Provides supply chain and logistics solutions. Rockfarm Supply Chain Inc. Solutions

3/15/2017 Rail Aero Transportation Manufacturers hatch covers and outlet gates for freight cars. Wabtec Corporation Products

3/6/2017 Logistics Simplified Logistics Provides third party logistics services with a focus on less-than- CI Capital Partners truckload transportation management services.

3/2/2017 Logistics AsepTrans Provides tank transportation and cleaning services. Odyssey Logistics & Technology

3/2/2017 Rail Appalachian Railcar Provides railcar repair, railcar storage, plant loading and unloading, GenNx360 Capital Services and short line switching and operations. Partners

2/23/2017 Logistics Quick International Provides courier and priority freight services. The Jordan Company Courier

2/21/2017 Logistics Zentral Archiv Service Provides archiving services and logistics services in Germany. Rhenus Archive Services

2/15/2017 Logistics Transfreight Automotive Provides cross-docking, transportation and manufacturing plant Yusen Logistics Logistics Europe logistical support and operations services.

2/13/2017 Marine Marine Trading Services Provides regional port logistics services in New Jersey. Ship Supply International Inc

2/9/2017 Logistics Evans Network of Provides intermodal, flatbed, brokerage, and van trucking services. Calera Capital Companies

2/7/2017 Rail Atlantic Western Operates 219 miles of railway track leased from the Georgia Genesee & Wyoming Inc. Transportation Department of Transportation.

2/7/2017 Marine Settoon Towing - Liquid Purchased assets include 35 towboats and 63 liquid tank barges with Savage Companies Bulk Marine Assets a total capacity of nearly 2 million barrels.

2/3/2017 Logistics Worldwide Express Provides non-asset based third party logistics solutions to small and Ridgemont Equity Partners medium sized businesses.

2/1/2017 Equipment Tie Down Engineering - Manufactures axle, brake, and actuation products. DexKo Global Axle Business Assets

2/1/2017 Marine Veson Nautical Provides commercial maritime operations software and data Pamlico Capital solutions.

1/31/2017 Logistics American Cargo Express Provides domestic and international freight forwarding, warehousing OIA Global and trade management services.

1/30/2017 Logistics Cavalier Transportation Provides LTL and truckload services, brokerage, and warehousing. TFI International Services

1/13/2017 Transportation Randall Manufacturing Manufactures specialty products used primarily in refrigerated semi- Safe Fleet Equipment LLC trailers in connection with the transportation of food and beverages.

1/10/2017 Logistics Global Freight Source Provides logistics and freight forwarding services. GlobalTranz Enterprises Inc. Inc.

*Denotes minority investment

PAGE | 2 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MARCH 2017

PUBLIC MARKETS OVERVIEW(1)

TEV / LTM EBITDA TEV / 2017E EBITDA

Rail & Rail Services 10.9x Rail & Rail Services 10.3x

Logistics Providers 10.4x Logistics Providers 9.5x

Marine 9.3x Marine 8.8x

Transportation Transportation 7.6x 7.5x Equipment Equipment

Trucking 7.3x Trucking 6.5x

AVERAGE REVENUE GROWTH (2013 – 2016) AVERAGE REVENUE GROWTH (2016 – 2018P)

Transportation 4.7% Marine 8.1% Equipment

Logistics Providers 4.5% Logistics Providers 6.5%

Trucking 2.6% Trucking 4.9%

Transportation Rail & Rail Services 2.1% 4.0% Equipment

Marine (6.0%) Rail & Rail Services (1.9%)

AVERAGE EBITDA GROWTH (2013 – 2016) AVERAGE EBITDA GROWTH (2016 – 2018P)

Transportation 19.4% Marine 20.8% Equipment

Rail & Rail Services 5.9% Logistics Providers 12.6%

Transportation Trucking 5.1% 11.3% Equipment

Logistics Providers 4.7% Trucking 9.6%

Marine (2.4%) Rail & Rail Services (3.2%)

PAGE | 3 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MARCH 2017

STOCK PRICE PERFORMANCE(1)

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

S&P 500 2.5% Transportation Equipment 56.1%

Logistics Providers (0.6%) Rail & Rail Services 18.2%

Transportation Equipment (2.5%) Logistics Providers 18.1%

Rail & Rail Services (3.4%) S&P 500 17.4%

Trucking (3.8%) Marine 12.9%

Marine (5.6%) Trucking 12.5%

TRAILING TWELVE MONTHS

(Indexed to March 11th, 2016)

70%

60%

50%

40%

30%

20%

10%

(10%)

(20%)

(30%) Mar-16 Jun-16 Sep-16 Dec-16 Mar-17

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

PAGE | 4 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MARCH 2017

OUR GROUP

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

RECENTLY CLOSED T&L TRANSACTIONS

has merged with a portfolio company of a portfolio company of a portfolio company of a portfolio company of

has received a growth an operating company of investment from

has been acquired by has merged with has been acquired by has been acquired by in a recapitalization by

and

a portfolio company of a portfolio company of a portfolio company of a portfolio company of a portfolio company of

has acquired has been acquired by

has been acquired by has been acquired by has been acquired by has been acquired by a portfolio company of

DEEP EXPERIENCE ACROSS T&L SECTORS

THIRD-PARTY LOGISTICS

RAIL & RAIL SERVICES

MARINE TRANSPORTATION

TRANSPORTATION EQUIPMENT

NICHE TRANSPORTATION

AUTOMOTIVE & HEAVY DUTY VEHICLE

AIR TRANSPORTATION

PAGE | 5 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MARCH 2017

OUR FIRM

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

Aerospace, Defense Building Products Business Consumer Energy, Power & Government & Materials Services & Infrastructure Services

Healthcare Industrials Specialty Technology, Transportation & Life Sciences Distribution Media & Telecom & Logistics

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PAGE | 6 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MARCH 2017

PUBLIC COMPARABLES(1)

Stock Performance Stock Price Change from 52-Week TEV / LTM EBITDA as of TEV / EBITDA EBITDA ($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Mar-16 Sep-16 Current 2017E 2018P Transportation & Logistics Logistics Providers Agility Public Warehousing Co. K.S.C. $2,443 $1.90 (17.2%) 26.8% $2.52 75.3% 5.9x 6.5x 7.9x NA NA Air Transport Services Group, Inc. 1,479 16.45 0.2% 14.9% 17.81 92.4% 6.2x 6.4x 7.4x 5.7x 4.8x Atlas Air Worldwide Holdings, Inc. 3,062 53.85 3.8% 32.4% 59.60 90.4% 9.1x 12.0x 8.8x 6.7x 6.1x C.H. Robinson Worldwide, Inc. 12,333 79.31 3.6% 9.2% 81.16 97.7% 12.3x 11.2x 13.5x 13.3x 12.6x Deutsche Post AG 44,660 33.09 (0.9%) 26.1% 34.78 95.1% 9.8x 9.8x 8.9x 8.0x 7.5x DSV A/S 10,518 49.90 2.0% 18.1% 51.16 97.5% 13.6x 18.3x 16.7x 14.3x 12.8x Echo Global Logistics, Inc 796 20.80 (11.5%) (20.6%) 28.90 72.0% 16.3x 13.9x 16.7x 10.9x 8.8x Expeditors International of Washington, Inc. 9,402 56.78 3.7% 18.1% 57.35 99.0% 10.9x 11.1x 13.1x 12.6x 11.9x FedEx Corporation 62,679 193.12 1.2% 33.7% 201.57 95.8% 8.3x 8.4x 9.6x 6.8x 6.3x Forward Air Corporation 1,467 47.53 (4.3%) 12.3% 51.51 92.3% 10.7x 9.8x 10.4x 9.7x 8.8x Hub Group, Inc. Class A 1,695 48.55 (2.5%) 29.2% 52.50 92.5% 8.4x 8.1x 10.1x 9.3x 8.8x J.B. Hunt Transport Services, Inc. 11,778 95.25 (5.1%) 15.7% 102.38 93.0% 10.1x 9.0x 10.8x 10.2x 9.3x Kuhne & Nagel International AG 15,842 138.75 1.0% 0.4% 147.27 94.2% 14.7x 15.3x 14.6x 13.6x 12.9x Landstar System, Inc. 3,564 86.05 (1.0%) 36.1% 90.80 94.8% 10.3x 10.8x 13.8x 12.9x 11.8x Panalpina Welttransport (Holding) AG 2,515 121.57 (0.6%) 16.1% 146.33 83.1% 11.4x 16.1x 14.9x 13.2x 11.0x Roadrunner Transportation Systems, Inc. 665 6.93 (1.4%) (43.8%) 13.67 50.7% 7.0x 7.8x 7.0x 6.1x 5.6x Ryder System, Inc. 9,340 75.17 (1.7%) 22.4% 85.42 88.0% 5.3x 5.3x 5.4x 5.2x 4.9x TFI International Inc. 3,451 23.79 (10.5%) 39.4% 27.30 87.1% 8.8x 8.4x 10.5x 7.7x 7.3x United Parcel Service, Inc. Class B 106,876 107.49 0.1% 6.6% 120.44 89.2% 10.7x 10.7x 14.7x 10.0x 9.5x Universal Logistics Holdings, Inc. 642 13.95 3.0% (18.4%) 18.31 76.2% 6.4x 5.4x 7.7x 7.6x 7.1x XPO Logistics, Inc. 11,037 50.34 7.1% 83.9% 54.70 92.0% 18.5x 10.1x 9.5x 8.0x 6.9x Median (0.6%) 18.1% 92.3% 10.1x 9.8x 10.4x 9.5x 8.8x Trucking ArcBest Corporation $790 $27.35 (13.3%) 21.4% $33.95 80.6% 3.5x 3.5x 5.7x 4.6x 4.1x Celadon Group, Inc. 598 8.10 (2.4%) (17.9%) 12.03 67.3% 6.6x 6.2x 7.2x 7.4x 6.1x Covenant Transportation Group, Inc. Class A 549 18.65 (9.2%) (14.0%) 25.77 72.4% 4.5x 4.0x 4.5x 4.8x 4.3x Heartland Express, Inc. 1,530 20.01 (3.9%) 6.8% 22.69 88.2% 8.3x 8.1x 8.4x 8.1x 7.5x Knight Transportation, Inc. 2,664 32.65 (3.4%) 25.1% 38.80 84.1% 7.2x 7.5x 10.3x 9.7x 8.7x Marten Transport, Ltd. 783 23.75 2.4% 32.0% 27.05 87.8% 5.1x 5.4x 6.0x 5.5x 5.0x Old Dominion Freight Line, Inc. 7,521 89.31 (3.2%) 29.8% 94.97 94.0% 8.9x 8.6x 10.9x 10.2x 9.2x P.A.M. Transportation Services, Inc. 271 17.78 (14.6%) (43.2%) 31.94 55.7% 5.7x 4.6x 5.0x 4.7x 3.8x Saia, Inc. 1,245 45.65 (6.0%) 66.8% 50.80 89.9% 4.9x 6.1x 8.0x 7.2x 6.3x Swift Transportation Company Class A 3,790 20.77 (12.1%) 18.1% 27.18 76.4% 6.1x 6.6x 7.5x 6.9x 6.0x Universal Logistics Holdings, Inc. 642 13.95 3.0% (18.4%) 18.31 76.2% 6.4x 5.4x 7.7x 7.6x 7.1x USA Truck, Inc. 224 8.90 5.7% (50.2%) 21.46 41.5% 5.2x 5.1x 7.6x 6.0x 5.0x Werner Enterprises, Inc. 2,132 27.20 (3.7%) (1.2%) 29.05 93.6% 5.2x 4.8x 6.3x 5.9x 5.4x YRC Worldwide Inc. 1,118 11.64 (13.5%) 22.9% 16.97 68.6% 4.5x 4.4x 4.1x 3.6x 3.2x Median (3.8%) 12.5% 78.5% 5.4x 5.4x 7.3x 6.5x 5.7x

PAGE | 7 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MARCH 2017

PUBLIC COMPARABLES(1)

Stock Performance Stock Price Change from 52-Week TEV / LTM EBITDA as of TEV / EBITDA EBITDA ($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Mar-16 Sep-16 Current 2017E 2018P Transportation & Logistics Rail and Rail Services American Railcar Industries, Inc. $1,121 $38.82 (15.4%) (7.1%) $51.10 76.0% 4.6x 4.7x 6.2x 6.9x 7.4x Canadian National Railway Company 64,324 72.73 2.9% 20.6% 73.01 99.6% 11.1x 11.4x 13.0x 12.5x 11.9x Canadian Pacific Railway Limited 28,659 148.21 0.1% 12.3% 156.98 94.4% 11.2x 12.5x 11.9x 11.3x 10.6x CSX Corporation 55,868 48.08 0.6% 84.2% 50.31 95.6% 7.3x 8.0x 12.2x 11.5x 10.6x FreightCar America, Inc. 59 12.87 (12.0%) (20.1%) 18.03 71.4% 1.6x 1.7x 4.4x NM 8.3x Genesee & Wyoming, Inc. Class A 6,705 70.13 (5.5%) 15.9% 80.73 86.9% 9.8x 10.5x 12.1x 9.4x 8.8x Greenbrier Companies, Inc. 1,562 41.75 (6.5%) 55.2% 49.50 84.3% 2.1x 2.8x 4.0x 5.1x 6.3x Kansas City Southern 12,051 87.44 1.9% 2.5% 100.69 86.8% 10.9x 11.1x 10.8x 10.0x 9.2x Norfolk Southern Corporation 44,917 119.53 (1.3%) 51.3% 125.00 95.6% 8.5x 9.0x 10.9x 10.3x 9.7x Trinity Industries, Inc. 6,507 25.95 (7.7%) 36.6% 30.13 86.1% 3.7x 5.0x 6.5x 8.3x 8.5x Union Pacific Corporation 102,598 106.45 (1.3%) 31.0% 111.38 95.6% 8.3x 9.6x 11.0x 10.3x 9.6x Westinghouse Air Brake Technologies Corporation 8,654 78.27 (10.3%) 0.6% 89.18 87.8% 11.2x 10.4x 15.1x 12.4x 11.5x Median (3.4%) 18.2% 87.3% 8.4x 9.3x 10.9x 10.3x 9.4x Marine Aegean Marine Petroleum Network Inc. $1,665 $11.30 4.1% 47.9% $13.10 86.3% 11.3x 8.8x 16.4x 11.9x 11.3x Costamare Inc. 1,734 6.35 13.8% (27.2%) 11.00 57.7% 6.4x 6.0x 5.3x 6.5x 7.1x Diana Shipping Inc. 835 4.16 5.3% 57.0% 4.97 83.7% NM NM NM NM 14.3x Kirby Corporation 4,360 68.00 (5.6%) 12.9% 73.40 92.6% 7.1x 7.4x 9.7x 10.9x 9.8x Matson, Inc. 2,145 32.65 (10.5%) (13.8%) 43.00 75.9% 7.0x 7.2x 9.0x 7.4x 7.0x Nordic American Tankers Limited 1,157 7.81 (7.6%) (43.7%) 16.18 48.3% 7.3x 6.4x 7.0x 10.1x 7.1x Rand Logistics, Inc. 219 0.66 (30.3%) (37.7%) 2.95 22.4% 7.7x 7.7x 7.4x 6.2x NA SEACOR Holdings Inc. 1,744 66.27 (9.8%) 27.8% 76.32 86.8% 9.6x 11.5x 15.1x 11.1x 9.7x Wilh. Wilhelmsen ASA 2,711 4.72 (0.4%) 82.5% 5.55 85.0% 14.2x 12.5x 19.2x 5.8x 6.3x Median (5.6%) 12.9% 83.7% 7.5x 7.5x 9.3x 8.8x 8.4x Transportation Equipment Dana Incorporated 3,835 19.23 (1.8%) 47.8% 20.62 93.3% 4.5x 4.9x 6.3x 5.4x 5.0x Gentherm Incorporated 1,312 36.00 1.4% (9.3%) 44.62 80.7% 9.0x 7.3x 9.0x 8.4x 7.7x Spartan Motors, Inc. 208 7.00 (13.6%) 80.4% 10.50 66.7% NM NM 11.6x 7.9x 6.1x Wabash National Corporation 1,435 20.69 (3.1%) 64.5% 22.21 93.2% 4.6x 3.8x 6.0x 7.1x 7.5x Median (2.5%) 56.1% 86.9% 4.6x 4.9x 7.6x 7.5x 6.8x

PAGE | 8 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ MARCH 2017

PUBLIC COMPARABLES(1)

Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) 2013 2014 2015 2016 2017E 2018P '13-16 '16-18P 2013 2014 2015 2016 2017E 2018P '13-16 '16-18P Transportation & Logistics Logistics Providers Agility Public Warehousing Co. K.S.C. $4,846 $4,767 $4,330 NA NA NA NA NA $289 $276 $292 NA NA NA NA NA Air Transport Services Group, Inc. 580 590 619 769 769 1,006 9.9% 14.4% 158 179 198 200 200 301 8.4% 22.5% Atlas Air Worldwide Holdings, Inc. 1,657 1,799 1,823 1,840 1,840 2,230 3.5% 10.1% 292 327 271 349 349 488 6.1% 18.2% C.H. Robinson Worldwide, Inc. 12,752 13,470 13,476 13,144 13,144 14,876 1.0% 6.4% 740 805 925 912 912 994 7.2% 4.4% Deutsche Post AG 73,132 75,117 65,681 63,423 63,423 66,481 (4.6%) 2.4% 3,887 4,812 3,587 5,013 5,013 5,954 8.8% 9.0% DSV A/S 8,137 8,645 7,563 10,066 10,066 10,918 7.3% 4.1% 543 560 532 631 631 829 5.1% 14.6% Echo Global Logistics, Inc 884 1,173 1,512 1,716 1,716 2,141 24.7% 11.7% 34 44 54 48 48 89 12.0% 36.8% Expeditors International of Washington, Inc. 6,080 6,565 6,617 6,098 6,098 6,825 0.1% 5.8% 600 644 767 717 717 785 6.1% 4.6% FedEx Corporation 45,567 47,453 50,365 60,041 62,979 65,842 9.6% 4.7% 6,033 4,951 6,165 8,470 9,191 9,889 12.0% 8.1% Forward Air Corporation 652 781 959 983 983 1,091 14.6% 5.4% 109 128 128 141 141 166 8.9% 8.8% Hub Group, Inc. Class A 3,374 3,571 3,526 3,573 3,573 4,105 1.9% 7.2% 137 136 154 168 168 194 6.9% 7.5% J.B. Hunt Transport Services, Inc. 5,585 6,165 6,188 6,555 6,555 7,817 5.5% 9.2% 825 920 1,054 1,088 1,088 1,269 9.7% 8.0% Kuhne & Nagel International AG 18,529 19,118 17,376 16,774 16,774 21,616 (3.3%) 13.5% 1,028 1,073 1,069 1,084 1,084 1,237 1.8% 6.8% Landstar System, Inc. 2,665 3,185 3,321 3,168 3,168 3,530 5.9% 5.6% 203 251 269 258 258 298 8.3% 7.6% Panalpina Welttransport (Holding) AG 7,289 7,327 6,081 5,274 5,274 5,590 (10.2%) 3.0% 172 218 184 169 169 220 (0.7%) 14.4% Roadrunner Transportation Systems, Inc. 1,361 1,873 1,995 1,991 2,044 2,129 13.5% 3.4% 103 125 130 97 117 119 (1.9%) 10.8% Ryder System, Inc. 6,419 6,639 6,572 6,787 6,787 7,367 1.9% 4.2% 1,361 1,505 1,649 1,738 1,738 1,929 8.5% 5.3% TFI International Inc. 3,018 3,363 3,150 3,038 3,038 3,559 0.2% 8.2% 319 372 332 328 328 473 0.9% 20.1% United Parcel Service, Inc. Class B 55,491 58,256 58,050 60,502 60,502 67,561 2.9% 5.7% 8,765 6,889 9,429 7,295 7,295 11,230 (5.9%) 24.1% Universal Logistics Holdings, Inc. 1,033 1,192 1,129 1,073 1,073 1,122 1.3% 2.3% 123 114 108 83 83 90 (12.3%) 4.1% XPO Logistics, Inc. 702 2,357 7,623 14,619 14,619 15,730 NM 3.7% (17) 92 474 1,158 1,158 1,575 NM 16.6% Total $259,756 $273,405 $267,955 $281,433 $284,425 $311,537 4.5% 6.5% $25,705 $24,421 $27,772 $29,948 $30,689 $38,128 4.7% 12.6% Trucking ArcBest Corporation $2,300 $2,613 $2,667 $2,700 $2,700 $3,046 5.5% 6.2% $107 $154 $167 $139 $139 $188 9.3% 16.1% Celadon Group, Inc. 614 742 901 1,065 1,065 1,099 20.2% 1.5% 99 87 117 109 109 97 3.2% (6.0%) Covenant Transportation Group, Inc. Class A 685 719 724 671 671 766 (0.7%) 6.9% 63 89 143 122 122 126 24.2% 1.6% Heartland Express, Inc. 582 871 736 613 613 628 1.7% 1.2% 149 208 193 182 182 203 7.0% 5.6% Knight Transportation, Inc. 969 1,102 1,183 1,118 1,118 1,270 4.9% 6.6% 193 256 312 259 259 300 10.4% 7.6% Marten Transport, Ltd. 659 673 665 671 671 760 0.6% 6.4% 110 115 127 130 130 160 5.6% 10.9% Old Dominion Freight Line, Inc. 2,338 2,788 2,972 2,992 2,992 3,454 8.6% 7.5% 466 606 676 690 690 808 14.0% 8.3% P.A.M. Transportation Services, Inc. 403 411 417 433 433 471 2.4% 4.3% 50 55 63 54 54 72 3.0% 15.3% Saia, Inc. 1,139 1,272 1,221 1,218 1,218 1,380 2.3% 6.4% 125 145 155 156 156 195 7.6% 11.8% Swift Transportation Company Class A 4,118 4,299 4,229 4,032 4,032 4,374 (0.7%) 4.2% 577 583 611 508 508 632 (4.1%) 11.5% Universal Logistics Holdings, Inc. 1,033 1,192 1,129 1,073 1,073 1,122 1.3% 2.3% 123 114 108 83 83 90 (12.3%) 4.1% USA Truck, Inc. 555 602 508 429 429 486 (8.2%) 6.4% 41 60 56 29 29 47 (10.2%) 25.7% Werner Enterprises, Inc. 2,029 2,139 2,094 2,009 2,009 2,182 (0.3%) 4.2% 295 316 393 336 336 395 4.5% 8.5% YRC Worldwide Inc. 4,865 5,069 4,832 4,698 4,698 5,071 (1.2%) 3.9% 205 197 259 270 270 343 9.6% 12.8% Total $22,289 $24,492 $24,279 $23,721 $23,721 $26,108 2.6% 4.9% $2,603 $2,984 $3,380 $3,068 $3,068 $3,657 5.1% 9.6%

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PUBLIC COMPARABLES(1)

Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) 2013 2014 2015 2016 2017E 2018P '13-16 '16-18P 2013 2014 2015 2016 2017E 2018P '13-16 '16-18P Transportation & Logistics Rail and Rail Services American Railcar Industries, Inc. $751 $733 $889 $639 $639 $397 (5.2%) (21.2%) $179 $204 $272 $182 $182 $151 0.6% (9.0%) Canadian National Railway Company 10,263 10,986 9,857 9,085 9,085 10,003 (4.0%) 4.9% 4,710 5,137 5,021 4,934 4,934 5,442 1.6% 5.0% Canadian Pacific Railway Limited 5,952 5,994 5,246 4,704 4,704 5,113 (7.5%) 4.3% 2,340 2,640 2,431 2,414 2,414 2,698 1.0% 5.7% CSX Corporation 12,026 12,669 11,811 10,954 10,954 11,934 (3.1%) 4.4% 4,534 4,764 4,792 4,575 4,575 5,285 0.3% 7.5% FreightCar America, Inc. 290 599 773 524 524 292 21.7% (25.4%) (4) 17 51 14 14 2 NM (58.8%) Genesee & Wyoming, Inc. Class A 1,569 1,639 2,000 2,002 2,002 2,285 8.5% 6.8% 533 579 586 554 554 752 1.3% 16.5% Greenbrier Companies, Inc. 1,755 2,203 2,605 2,681 2,681 1,896 15.2% (15.9%) 143 237 430 458 458 240 47.5% (27.7%) Kansas City Southern 2,369 2,577 2,419 2,397 2,397 2,612 0.4% 4.4% 962 1,106 1,098 1,121 1,121 1,302 5.2% 7.8% Norfolk Southern Corporation 11,245 11,624 10,511 9,888 9,888 10,828 (4.2%) 4.6% 4,173 4,526 3,938 4,131 4,131 4,672 (0.3%) 6.3% Trinity Industries, Inc. 4,365 6,170 6,393 4,588 4,588 3,334 1.7% (14.8%) 963 1,402 1,528 1,008 1,008 765 1.5% (12.9%) Union Pacific Corporation 21,963 23,988 21,813 19,941 19,941 21,864 (3.2%) 4.7% 9,223 10,657 10,064 9,310 9,310 10,693 0.3% 7.2% Westinghouse Air Brake Technologies Corporation 2,566 3,044 3,308 2,931 2,931 4,207 4.5% 19.8% 489 588 701 572 572 738 5.4% 13.5% Total $75,115 $82,227 $77,625 $70,333 $70,333 $74,765 2.1% (1.9%) $28,243 $31,857 $30,912 $29,272 $29,272 $32,741 5.9% (3.2%) Marine Aegean Marine Petroleum Network Inc. $6,335 $6,662 $4,232 $4,076 $4,076 $5,544 (13.7%) 16.6% $84 $54 $81 $101 $101 $145 6.4% 19.7% Costamare Inc. 414 484 490 468 468 394 4.2% (8.3%) 267 330 325 317 317 258 5.9% (9.7%) Diana Shipping Inc. 164 176 158 114 114 183 (11.4%) 26.7% 55 52 28 (12) (12) 59 NM NA Kirby Corporation 2,242 2,566 2,148 1,771 1,771 1,940 (7.6%) 4.7% 582 646 573 451 451 436 (8.1%) (1.7%) Matson, Inc. 1,637 1,714 1,885 1,942 1,942 2,020 5.8% 2.0% 182 203 298 238 238 305 9.4% 13.2% Nordic American Tankers Limited 244 351 446 231 231 283 (1.7%) 10.6% (7) 74 211 139 139 165 NM 8.9% Rand Logistics, Inc. 156 153 148 115 118 NA (9.6%) NA 33 34 32 32 35 NA (1.1%) NA SEACOR Holdings Inc. 1,247 1,319 1,055 831 893 907 (12.7%) 4.5% 197 245 150 101 160 179 (20.0%) 33.1% Wilh. Wilhelmsen ASA 325 285 313 257 257 NA (7.5%) NA 170 134 186 127 127 421 (9.4%) 82.1% Total $12,764 $13,710 $10,874 $9,805 $9,871 $11,272 (6.0%) 8.1% $1,562 $1,772 $1,884 $1,494 $1,557 $1,969 (2.4%) 20.8% Transportation Equipment Dana Incorporated 6,769 6,617 6,060 5,826 5,826 6,561 (4.9%) 6.1% 706 705 618 612 612 760 (4.7%) 11.4% Gentherm Incorporated 662 812 856 918 918 1,064 11.5% 7.7% 83 135 155 146 146 171 20.5% 8.3% Spartan Motors, Inc. 470 507 550 591 591 692 8.0% 8.2% 6 10 0 18 18 34 42.4% 37.6% Wabash National Corporation 1,636 1,863 2,027 1,845 1,845 1,632 4.1% (6.0%) 142 161 218 241 241 186 19.2% (12.0%) Total $9,536 $9,799 $9,494 $9,180 $9,180 $9,949 4.7% 4.0% $938 $1,012 $991 $1,017 $1,017 $1,152 19.4% 11.3%

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TRANSPORTATION & LOGISTICS

SOURCES

1. FactSet.

2. MergerMarket.

3. Pitchbook.

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