Transportation and Logistics Industry Update | Spring 2020

INDUSTRY UPDATE | Spring 2020 Houlihan Lokey Transportation and Logistics Update

Dear Clients and Friends, Houlihan Lokey is pleased to present its Transportation and Logistics Spring 2020 Industry Update. As the COVID-19 curve begins to flatten, national and local governments ease restrictions and economies start to open at different rates around the globe, the outlook for subsectors within the transportation and logistics industry is varied. Coupled with unprecedented turmoil in energy markets, uncertainty is likely to persist until the duration and overall impact of recent events can be determined. We have included in this newsletter important news stories, transaction announcements, a public markets overview, and industry insights to help you stay ahead in our dynamic and constantly evolving industry. As the market environment has shifted in light of COVID-19, so too have our conversations with clients. A pre-crisis focus on sellside M&A has given way to discussions regarding debt capital markets, liquidity preservation, and opportunistic buyside M&A strategies. We hope this quarterly update serves as a valuable resource to you in staying abreast of the market, and we look forward to staying in touch with you. Regards,

Kris Hopkins Phil Keffer, CFA Director Vice President Head of Transportation Transportation and and Logistics Logistics Houlihan Lokey [email protected] [email protected] 245 Park Avenue, 20th Floor O: 212.497.7856 O: 212.497.7851 New York, NY 10167 M: 617.784.7934 M: 973.224.3476

Additional Contacts

Jason Weisbaum Matt Glaswand Yash Srivastav Coleman Kraemer Associate Associate Financial Analyst Financial Analyst [email protected] [email protected] [email protected] [email protected] 212.497.4265 212.497.4158 212.497.7863 646.259.7448

Industry Subsectors Covered

Asset-Light/ Asset-Based Transportation Marine Services and Third-Party Logistics Trucking Equipment Leasing Transportation

Helicopter Operators Rail and Related Passenger Tech-Enabled and Other Aviation Services Transportation Services

2 Houlihan Lokey is the trusted advisor to more top decision-makers than any other independent global investment bank. Houlihan Lokey is the trusted advisor to more top decision makers than any other independent global Financial and Valuation Corporate Finance investmentFinancial bank. Restructuring Advisory

2019 M&A Advisory Rankings 2019 Global Distressed Debt & Bankruptcy 2000 to 2019 Global M&A Fairness All U.S. Transactions Restructuring Rankings Advisory Rankings Adv isor Deals Advisor Deals Adv isor Deals

1 Houlihan Lokey 184 1 Houlihan Lokey 76 1 Houlihan Lokey 1,057 2 Goldman Sachs & Co 167 2 PJT Partners Inc 43 2 JP Morgan 929 3 JP Morgan 141 3 Moelis & Co 36 3 Duff & Phelps 734 4 Morgan Stanley 122 4 Lazard 29 4 Morgan Stanley 621 5 Evercore Partners 112 5 AlixPartners 19 5 Bank of America Merrill Lynch 612 Refinitiv (formerly known as Thomson Reuters). Announced Source: Refinitiv (formerly known as Thomson Reuters) Source: Refinitiv (formerly known as Thomson Reuters) or completed transactions.

No. 1 U.S. M&A Advisor No. 1 Global Investment Banking No. 1 Global M&A Fairness Opinion Restructuring Advisor Advisor Over the Past 20 Years Top 10 Global M&A Advisor 1,000+ Transactions Completed 1,000+ Annual Valuation Engagements Leading Capital Markets Advisor Valued at More Than $2.5 Trillion Collectively Selected Transactions

has confirmed a Chapter 11 has merged with has completed a restructuring has acquired Plan of Reorganization, raising Series A through English schemes of $225 million pre- and post- Senior Secured Notes arrangement, a U.S. Chapter 15 has been acquired by affiliates petition financing and $385 filing and Canadian CCAA of Solus Alternative Asset million of equity via rights Growth Capital Management through an in- offering each a portfolio company of court asset sale pursuant to Section 363 of the Bankruptcy Code

$50,000,000

Exclusive Financial Advisor & Placement Agent Creditor Advisor Buyside Advisor Company Advisor Company Advisor Fairness Opinion

a joint venture of has sold substantially all of its assets for $650 million, pursuant to has confirmed a Chapter 11 a portfolio company of a court-approved sale to Plan of Reorganization, restructuring $700 million of has divested its subsidiary has been acquired by debt and raising $225 million of new debt and up to $75 has been acquired by million of new equity has acquired and secured lenders of certain debt facilities pursuant to Section 363(k) of the US Bankruptcy Code

Company Advisor Buyside Advisor Sellside Advisor Sellside Advisor Company Advisor Sellside Advisor

3 Significant News Stories

LOGISTICS Divided Supply Chains Are Challenging Producers, Retailers (The Wall Street Journal, April 15, 2020) “Experts say there is plenty of toilet paper and food in the U.S. But rerouting goods to consumers that were produced at industrial scale—big toilet paper rolls for college dormitories or yogurt bound for factories that churn out breakfast parfaits—involves more than a phone call or quick email exchange. … Wholesalers that sell to both retail and food-service customers can try and leverage existing relationships with grocers to offload some bulk products. But stores configured to sell consumer-size goods may not have space to store and display hefty sacks of rice and giant jars of mayonnaise.” (Link to article)

Online Grocers Are Getting a Preview of Their Future (The Wall Street Journal, March 27, 2020) “Since the pandemic began, the websites of major food retailers have been as inundated as their physical stores. … The number of U.S. households ordering groceries online roughly doubled this month to 40 million compared with levels recorded in August 2019, data released Thursday by consulting firm Brick Meets Click shows. Although supermarkets have invested heavily in their online businesses in recent years, they are not ready for current levels of demand. Infrastructure is still immature globally: 7.6% of groceries in the U.K. were bought over the web before the outbreak, while in Spain just 2.4% of sales have moved online, according to Kantar data. The U.S. has around 3.1% penetration.” (Link to article)

Costco Acquires Last-Mile Specialist Innovel for $1 Billion (Supermarket News, March 17, 2020) “Boosting its last-mile capabilities, Costco Wholesale Corp. has bought third-party delivery and logistics provider Innovel Solutions for $1 billion in cash. … Innovel has for decades provided Sears with ‘final mile’ delivery of big and bulky products, along with installation and ‘white glove’ support services, across the United States and Puerto Rico. More recently, Innovel has begun serving other customers, including Costco since 2015. Products delivered and serviced by Innovel include major appliances, furniture, mattresses, televisions, grills, patio, fitness equipment and wine cellars.” (Link to article)

CRST Buys New Jersey-Based Final-Mile Logistics Company NAL Group (Transport Topics, March 3, 2020) “CRST International on March 2 announced it had acquired final-mile specialist NAL Group. Financial terms of the agreement were not made public. NAL Group is headquartered in Edison, N.J., and most of the company’s business is in warehousing services and final-mile delivery of big and bulky consumer durables, complex in- home installation and assembly services and express courier services.” (Link to article)

ASSET-BASED TRUCKING For America’s Small Truckers, Demand Is ‘Falling Off a Cliff’ (The Wall Street Journal, April 21, 2020) “Sam Trucking is among thousands of small trucking companies that move the vast majority of the goods in U.S. freight markets. With light cash flow, limited reserves and uncertain access to credit, many of those carriers now are struggling under an upheaval in shipping markets created by lockdowns on economic activity meant to control the coronavirus pandemic. … Fleets of all sizes are getting hit by the downturn, and some big national trucking companies are slashing executive pay and pulling back spending.” (Link to article)

4 Significant News Stories (cont.)

MARINE Oil Traders Are Scrambling to Book Tankers for Storage (The Wall Street Journal, April 21, 2020) “The growing surplus of oil on world markets has traders racing to find supertankers to use for storage, pushing rates for the mammoth vessels sharply higher even as prices for crude continue to dive. … Robert Hvide Macleod, chief executive of Norway-based Frontline Management AS, one of the world’s biggest tanker owners, said average daily freight rates for VLCCs are hovering at around $150,000, compared with average rates of about $10,000 a day in April 2019. … Daily freight rates are far above the average $25,000 daily break-even costs for VLCCs, but shipping executives say they expect the windfall won’t last long because crumbling oil prices will push producers to slash output in the coming months.” (Link to article)

Maersk Buying US Warehousing and Distribution Company (American Shipper, February 19, 2020) “A.P. Møller – Maersk said Wednesday it had agreed to buy U.S. warehousing and distribution firm Performance Team in a $545 million deal. … ‘With this acquisition we invest in premium operational capabilities to significantly boost our existing Warehousing and Distribution offering. This will strengthen our ability to deliver products and solutions that meet our customers’ end-to-end supply chain needs,’ Maersk Ocean and Logistics CEO Vincent Clerc said in a statement. … Maersk said it is targeting the Warehousing and Distribution component to offer more supply chain options and flexibility to its Ocean customers and noted that e-commerce in North America is growing at a rate of 12% annually.” (Link to article)

AUTOMOBILES Automakers Will Need Months to Restart Factories (Transport Topics, April 15, 2020) “Automakers are anxious to get their assembly lines rolling again, especially since leaving factories idle is costing them billions of dollars by the week. But the experience many of them have had in China illustrates just how long a slog it’s going to be before plants are producing at anywhere near pre-shutdown levels. It took almost two months for most of China’s industry to return to some semblance of normalcy—and that was with the benefit of mobile apps the government installed on citizens’ cellphones to track their movements and potential exposure to COVID-19 infected people.” (Link to article)

TRANSPORTATION EQUIPMENT LEASING Stonepeak Infrastructure Partners to Acquire TRAC Intermodal (American Shipper, February 20, 2020) “Private equity firm Stonepeak Infrastructure Partners, which is based in New York City, has signed an agreement to acquire TRAC Intermodal from a Fortress Investment Group affiliate. Financial terms for the agreement, which is subject to customary closing conditions and regulatory approvals, were not disclosed. TRAC’s existing management team will remain to run the business, TRAC said on Feb. 18. Both parties will benefit from the acquisition, according to Princeton, New Jersey-based TRAC. Stonepeak’s support will enable TRAC to grow the company’s presence in North America. TRAC operates 180,000 marine chassis nationwide, with an operating footprint of over 650 locations. TRAC also has three subsidiaries: TRAC Tire Services, which supplies tires and parts; FYX, an emergency fleet roadside assistance offering; and TRAC Services, which provides maintenance, repair and depot services to intermodal and over-the-road customers.” (Link to article)

5 Significant News Stories (cont.)

AVIATION AND AIR CARGO FAA Issues Guidance for Cargo in Passenger Cabin (American Shipper, April 16, 2020) “The Federal Aviation Administration is giving airlines the greenlight to carry cargo in the passenger cabin to maximize efficiency and relaxing takeoff and landing quotas at congested airports. The agency on Thursday issued guidelines for commercial carriers to follow if they transport cargo in stowage bins, passenger seats or on the floor, with the seats removed. The safety alert essentially tells carriers they can carry shipments up top as long as they adhere to all regulatory requirements for the safe carriage of cargo. Passenger cabins are not designed for all-cargo configurations, but the rules allow goods to be carried there if all normal requirements for the safe carriage of cargo are followed.” (Link to article)

Crippled Airline Industry to Get $25 Billion Bailout, Part of It as Loans (The New York Times, April 14, 2020) “The Trump administration has reached an agreement in principle with major airlines over the terms of a $25 billion bailout to prop up an industry hobbled by the coronavirus pandemic. … The stimulus, passed late last month, largely incorporated the assistance that the industry had sought, including the $25 billion in payroll support and another $25 billion in loans for passenger airlines and more than $10 billion in grants and loans for cargo airlines and aviation contractors. But the aid came with some strings attached, including giving Mr. Mnuchin the authority to take an equity stake in airlines that receive the grants. Treasury officials determined that 70 percent of the grants to airlines would benefit taxpayers through payroll and income tax receipts and by reducing the unemployment insurance payments that the government would have paid to airline workers had they lost their jobs. The remaining 30 percent would not directly benefit taxpayers, and therefore would be repaid as a loan over a period of 10 years, a senior Treasury official said on Tuesday.” (Link to article)

TECH-ENABLED SERVICES Lyft Launches ‘Essential Deliveries,’ but It’s Not an Uber Eats Competitor (Fast Company, April 15, 2020) “As demand for rides plummets during the coronavirus pandemic, Lyft says it’s now delivering food, medical supplies, and other necessities with a new pilot service called ‘Essential Deliveries.’ And, no, it’s currently not a clone of Uber Eats. Instead, Lyft is recruiting drivers to deliver ‘meals, groceries, life-sustaining medical supplies, hygiene products and home necessities’ for nonprofit groups, government agencies, and—Lyft wrote on its blog—’businesses and healthcare organizations.’ Lyft says the deliveries will be ‘contact-free,’ and it plans to pay drivers as if they were fulfilling standard rides.” (Link to article)

FourKites Buys Yard Management Suite From TrackX Solutions (Logistics Management, March 25, 2020) “Chicago-based FourKites, a provider of real-time tracking and visibility solutions across transportation modes and digital platforms, said today it has acquired the yard management service offerings from Denver-based TrackX Holdings Inc., an enterprise asset management company deploying SaaS-based solutions geared towards the tracking and managing of physical assets. A purchase price was not disclosed. FourKites officials said that this acquisition will enable it to develop a new supply chain visibility offering focused on extending real- time visibility into the yard, with TrackX’s Yard Management, Dock Management, and Gate Control solutions, which are the key components of the acquisition.” (Link to article)

6 Recent M&A Transactions

Announced Acquirer Target Target Target Transaction Date Description Sector Value ($M)

Apr-20 Prologis Logistics Facilities of Nippon Four Japanese logistics facilities Logistics $477 Express

Apr-20 Rhenus Freight Forwarding Provides freight forwarding services Logistics N/A Business of L.W. Cretschmar

Apr-20 Alpine Air Express Inc. (AE Substantially All Assets of Regional airline company headquartered in Cheyenne, WY Aviation N/A Industrials) Great Lakes Aviation, Ltd.

Apr-20 J.H. Rose Logistics, LLC Stagecoach Cartage and Provides transportation and warehousing services Logistics N/A Distribution, LLC (Roadrunner Transportation Systems)

Mar-20 FourKites, Inc. Yard Management Business Provides yard management services Logistics N/A of TrackX Holdings Inc.

Mar-20 Central Freight Lines, Inc. Volunteer Express, Inc. Provides truckload freight services Logistics N/A

Mar-20 The Jordan Company, L.P. Transportation Impact LLC Provides small parcel negotiations and freight management Logistics N/A services

Mar-20 VeeZu Limited Go Beyond Group Ltd Develops and offers Go Carz, an application for booking and Passenger N/A hiring taxis Transportation

Mar-20 Bulkmatic Transport Assets of Paris Transport Provides logistics services through its trucks, dry vans, and Logistics N/A Company Inc. Inc. pneumatics tanks for hauling local grain products

Mar-20 Costco Wholesale Innovel Solutions, Inc. Provides supply chain solutions to retail, manufacturing, Logistics $1,000 Corporation (Transform Holdco LLC) commercial, and military markets in the U.S.

Mar-20 XPO Logistics Majority of Contract Provides integrated logistics services in the U.K. Logistics N/A Logistics Operations in the UK of Kuehne + Nagel International

Mar-20 National Express Limited Lucketts Travel Ltd Provides coach and bus travel services Passenger N/A Transportation

Mar-20 American Trailer Rental Advantage Trailer, LLC Provides semi-trailer rental and sales services Equipment Leasing N/A Group (Milton Street Capital)

Mar-20 CRST International, Inc. NAL Group, Inc. (Graycliff Provides last-mile delivery, dispatch, simple and complex Logistics N/A Partners) installation, warehousing, and direct fulfillment services

Mar-20 TFI International Inc. Courier Services Business Provides courier services to the pharmaceutical, healthcare, Logistics N/A Of R. R. Donnelley & Sons retail, financial, and transportation industries Company

Mar-20 WillScot Corporation (TDR Mobile Mini, Inc. Provides portable storage and specialty containment solutions Equipment Leasing $2,176 Capital)

Feb-20 Blue-Grace Logistics LLC Anthym Logistics, LLC Provides freight brokerage services Logistics N/A (Warburg Pincus)

Feb-20 Errands Plus, Inc. U.S. Business of Addison Provides private taxicab and courier services Passenger N/A Lee Transportation

Feb-20 Team Drive-Away, Inc. IXT Logistics, LLC Provides drive-away truck transportation services Asset-Based Trucking N/A (United Road)

Feb-20 Team Drive-Away, Inc. Transportation Booking Truck transportation company that offers single unit relocation Specialty Trucking N/A (United Road) Services LLC drive-away services

Feb-20 Atlas Logistics, Inc. (Altas TopHAT Logistical Solutions, Provides commercial logistics services Logistics N/A World Group) LLC

Feb-20 Surf Air Inc. Blackbird Air Inc. Online aviation marketplace that connects passengers, private Aviation N/A plane owners, and charter operators

Feb-20 A.P. Møller - Mærsk A/S Performance Team LLC Provides logistics and transportation services Logistics $545

Feb-20 Stonepeak Partners LP TRAC Intermodal Holding Operates as a marine chassis pool manager and equipment Marine N/A Corp. (Fortress Investment provider Group)

7 Sources: S&P Capital IQ, Mergermarket Public Markets Overview

Median TEV/LTM EBITDA

12.8x 11.1x 11.5x 10.5x 9.6x 8.9x 8.8x 8.6x 7.8x 7.0x 7.4x 6.4x

4.5x 4.5x

Logistics Asset-Based Marine Rail Transportation Aviation Passenger Trucking Equipment Transportation Leasing April 2019 April 2020

12-Month Indexed Stock Price Performance

30%

10% 10.6%

(3.5%) (8.1%) (10%) (11.2%)

(23.5%) (25.8%) (30%) (28.7%)

(42.3%) (50%) (57.3%)

(70%) Apr-19 Jul-19 Oct-19 Jan-20 Apr-20

Logistics Asset-Based Trucking Marine Rail Transportation Equipment Leasing Aviation Passenger Transportation S&P 500 Dow Jones Transportation Index

Note: All data as of April 27, 2020. 8 Source: S&P Capital IQ Macroeconomic Data

Quarter on Quarter Real GDP Growth(1)(2) Inventory/Sales Ratio(1)

6% 1.42

4% 1.38

2% 1.34

1% ∆ MoM: +0.0% ∆ YoY: (1.4%) 0% 1.30

Source: Bureau of Economic Analysis Source: U.S. Census Bureau

Housing Starts (000s)(1)(2) ISM Manufacturing Index(1)

1,700 60% 1,600 58% 1,500 56% 1,400 54%

1,300 52% 50% 1,200 48% 1,100 46% 1,000 ∆ MoM: (22.3%) ∆ MoM: (1.0%) ∆ YoY: +1.4% 44% ∆ YoY: (6.2%) 900 42%

Source: United States Census Bureau Source: Institute for Supply Management

Consumer Price Index Consumer Sentiment Index

265 105

260 100 95 255 90 250 85 245 80 240 75 235 ∆ MoM: (0.2)% ∆ MoM: (11.8%) ∆ YoY: +1.5% 70 ∆ YoY: (9.5%) 230 65

Source: Bureau of Labor Statistics Source: University of Michigan

(1) Seasonally adjusted. (2) Annualized. 9 Relevant Transportation and Logistics Sector Data

Cass Freight Index Intermodal Volume (000s of Containers)(1)

Shipments Expenditures 1.4 ∆ MoM: +0.0% ∆ MoM: (4.8%) 3.2 1,300 ∆ YoY: (8.9%) ∆ YoY: (11.7%) 1.3 3.0 2.8 Expenditures 1.2 1,200 2.6 1.1 2.4

1.0 2.2 1,100

0.9 2.0 ∆ MoM: (1.6%) ∆ YoY: (7.9%) 1,000

Shipments Expenditures

Source: Cass Information Systems, Inc. Source: Association of American Railroads

ATA Tonnage Index(1) Driver Turnover(2)

125 100%

120 95%

115 90%

110 85%

105 80%

100 75%

95 ∆ MoM: +1.1% 70% ∆ QoQ: +9.0% ∆ YoY: +6.4% ∆ YoY: +9.0% 90 65%

Source: American Trucking Association Source: American Trucking Association

Diesel and Gasoline Prices ($/gal) Class 8 Tractor Orders(3)

Diesel Gasoline $4.50 ∆ QoQ: (17.5%) ∆ QoQ: (25.7%) 60,000 ∆ QoQ: (63.0%) ∆ YoY: (20.3%) ∆ YoY: (33.3%) ∆ YoY: (51.3%) $4.00 50,000 $3.50 40,000 $3.00 30,000 $2.50 20,000 $2.00 U.S. Retail Diesel Prices $1.50 10,000 U.S. Retail Gasoline Prices $1.00 0

Source: U.S. Energy Information Administration Source: FTR Transportation Intelligence

(1) Seasonally adjusted. (2) Annualized driver turnover for truckload fleets with more than $30 million in annual revenue. (3) Total North American Class 8 orders includes U.S., Canada, Mexico, and North America export sales. 10 Public Comparables Logistics and Asset-Based Trucking

Logistics

($ in millions, except per-share prices) As of 4/27/20 % of 52- Total LTM TEV/ Week Equity Enterprise Gross EBITDA Debt/ LTM NFY (1) Company Name Stock Price High Value Value Revenue Margin EBITDA Margin ROIC Net Debt EBITDA EBITDA EBITDA Asset-Light/Third-Party Logistics Agility Public Warehousing Company K.S.C.P. $1.82 86.3% $3,022.9 $4,147.6 $5,207.4 32.2% $497.5 9.6% 5.1% $991.6 2.9x 8.3x 6.3x C.H. Robinson Worldwide, Inc. 74.04 81.2% 9,724.4 10,832.6 15,309.5 8.4% 873.4 5.7% 25.4% 1,108.2 1.8x 12.4x 15.1x CJ Logistics Corporation 122.55 88.8% 2,224.7 5,047.9 9,021.4 9.2% 629.7 7.0% 2.8% 2,418.4 4.3x 8.0x 8.8x DSV Panalpina A/S 98.14 84.1% 22,048.6 24,729.0 14,222.2 25.1% 1,085.0 7.6% 15.8% 2,786.3 2.9x 22.8x 15.7x Echo Global Logistics, Inc. 16.56 67.6% 440.7 605.5 2,197.9 17.2% 47.5 2.2% 5.3% 164.8 4.3x 12.8x 9.9x Expeditors International of Washington, Inc. 72.29 88.5% 12,143.9 11,307.3 8,175.4 12.8% 817.6 10.0% 28.8% (838.8) 0.5x 13.8x 14.9x Forward Air Corporation 52.00 72.1% 1,458.9 1,620.0 1,410.4 23.4% 160.2 11.4% 12.2% 161.1 1.4x 10.1x 13.2x Hub Group, Inc. 48.55 80.4% 1,647.8 1,802.6 3,668.1 14.2% 269.3 7.3% 8.4% 154.8 1.2x 6.7x 7.3x Kerry Logistics Network Limited 1.30 68.6% 2,324.1 3,595.5 5,281.6 13.1% 427.5 8.1% 4.5% 743.7 3.6x 8.4x 7.3x Kintetsu World Express, Inc. 14.28 75.3% 1,026.7 1,729.2 5,106.3 17.0% 306.4 6.0% 6.2% 599.4 4.4x 5.6x 5.6x Kuehne + Nagel International AG 139.90 81.2% 16,759.0 18,009.8 21,554.7 37.9% 1,220.5 5.7% 9.3% 1,259.9 1.8x 14.8x 12.0x Landstar System, Inc. 108.03 90.1% 4,145.2 4,072.2 3,984.2 21.3% 315.3 7.9% 22.4% (72.9) 0.4x 12.9x 16.3x Radiant Logistics, Inc. 4.02 55.3% 199.7 245.2 813.2 20.0% 35.7 4.4% 8.6% 45.3 1.5x 6.9x 7.2x Universal Logistics Holdings, Inc. 13.93 50.7% 378.3 908.0 1,512.0 17.4% 164.9 10.9% 8.3% 529.7 3.3x 5.5x 6.7x Wincanton plc 2.98 75.2% 368.7 540.7 1,417.6 6.5% 82.3 5.8% 51.3% 170.3 2.7x 6.6x 4.3x XPO Logistics, Inc. 66.47 66.4% 6,055.8 13,407.8 16,648.0 16.0% 1,617.0 9.7% 7.5% 7,158.0 4.7x 8.3x 8.1x Parcel Delivery Deutsche Post AG $28.98 76.4% $35,753.2 $50,915.2 $71,359.0 15.8% $5,431.5 7.6% 6.7% $15,394.5 3.5x 9.4x 5.9x FedEx Corporation 127.29 66.8% 33,254.5 64,930.5 69,666.0 20.7% 4,019.0 5.8% 0.6% 31,676.0 8.3x 16.2x 9.7x PostNL N.V. 1.54 60.1% 758.4 1,281.8 3,191.6 14.3% 246.9 7.7% 7.7% 538.7 4.4x 5.2x 4.1x Royal Mail plc 1.87 57.6% 1,871.9 3,600.9 13,340.3 36.8% 1,056.6 7.9% 5.4% 1,714.2 1.9x 3.4x 3.4x United Parcel Service, Inc. 102.55 81.8% 88,033.7 110,487.7 74,094.0 18.4% 7,896.0 10.7% 8.4% 22,438.0 3.6x 14.0x 12.0x ZTO Express (Cayman) Inc. 29.23 98.7% 22,913.2 20,682.2 3,175.4 29.9% 966.2 30.4% 16.5% (2,245.5) 0.1x 21.4x 17.9x

Median $5,244.5 17.3% $563.6 7.7% 8.3% $671.5 2.9x 8.9x 8.4x Mean $15,925.3 19.4% $1,280.3 8.6% 12.1% $3,949.8 2.9x 10.6x 9.6x

Asset-Based Trucking

($ in millions, except per-share prices) As of 4/27/20 % of 52- Total LTM TEV/ Week Equity Enterprise Operating EBITDA Debt/ LTM NFY Company Name Stock Price High Value Value Revenue Ratio EBITDA Margin ROIC(1) Net Debt EBITDA EBITDA EBITDA Less-Than-Truckload ArcBest Corporation $19.65 60.5% $473.5 $551.7 $2,988.3 97.4% $188.3 6.3% 4.4% $78.2 2.1x 2.9x 3.3x Old Dominion Freight Line, Inc. 142.81 94.3% 16,823.3 16,511.4 4,105.7 79.9% 1,077.5 26.2% 14.3% (312.0) 0.0x 15.3x 16.7x Saia, Inc. 85.60 80.0% 2,102.7 2,344.1 1,786.7 91.5% 271.3 15.2% 7.7% 241.4 0.9x 8.6x 8.4x YRC Worldwide Inc. 1.58 20.6% 58.3 1,181.9 4,871.2 99.8% 160.0 3.3% 0.3% 1,123.6 7.7x 7.4x 8.4x Specialty Trucking Marten Transport, Ltd. $23.55 99.0% $1,208.7 $1,173.2 $862.9 92.1% $164.5 19.1% 5.7% ($35.5) 0.0x 7.1x 6.9x Mullen Group Ltd. 3.55 46.8% 363.9 761.0 901.0 93.0% 134.3 14.9% 4.0% 394.9 3.4x 5.7x 7.0x TFI International Inc. 26.75 77.4% 2,244.4 3,566.3 3,660.5 91.2% 528.1 14.4% 10.5% 1,314.4 2.7x 6.8x 6.9x Truckload Covenant Transportation Group, Inc. $8.32 39.9% $126.6 $431.2 $894.5 98.2% $96.6 10.8% 1.3% $304.6 3.6x 4.5x 5.3x Daseke, Inc. 1.54 27.3% 91.7 858.8 1,737.0 99.8% 155.8 9.0% 0.2% 702.1 5.1x 5.5x 5.5x Heartland Express, Inc. 20.43 90.0% 1,609.0 1,544.8 623.6 89.7% 167.7 26.9% 6.6% (64.2) N/M 9.2x 8.4x J.B. Hunt Transport Services, Inc. 104.65 85.6% 10,714.8 11,969.1 9,356.5 92.0% 1,248.2 13.3% 9.5% 1,254.3 1.0x 9.6x 10.2x Knight-Swift Transportation Holdings Inc. 37.38 92.4% 6,091.5 7,046.2 4,764.2 91.2% 893.6 18.8% 5.0% 952.5 1.2x 7.9x 8.1x P.A.M. Transportation Services, Inc. 33.70 47.1% 170.3 391.9 514.6 97.4% 69.1 13.4% 4.2% 221.6 3.6x 5.7x 4.5x Schneider National, Inc. 22.12 90.7% 3,719.5 3,563.5 4,747.0 92.7% 638.6 13.5% 7.5% (156.0) 0.7x 5.6x 6.3x USA Truck, Inc. 4.69 30.2% 34.6 225.0 522.6 99.4% 40.2 7.7% 0.6% 190.5 4.7x 5.6x 5.9x U.S. Xpress Enterprises, Inc. 4.32 61.2% 191.5 858.8 1,707.4 98.5% 111.6 6.5% 1.7% 666.7 6.0x 7.7x 7.3x Werner Enterprises, Inc. 41.99 99.1% 2,769.7 3,055.0 2,463.7 91.7% 453.4 18.4% 6.2% 285.3 0.7x 6.7x 7.0x

Median $1,786.7 92.7% $167.7 13.5% 5.0% $285.3 2.4x 6.8x 7.0x Mean $2,735.7 93.9% $376.4 14.0% 5.3% $421.3 2.7x 7.2x 7.4x

Source: S&P Capital IQ (1) ROIC defined as NOPAT over average total assets less cash, goodwill, and accounts payable. 11 Public Comparables Marine and Rail

Marine

($ in millions, except per-share prices) As of 4/27/20 % of 52- Total LTM TEV/ Week Equity Enterprise Gross EBITDA Debt/ LTM NFY (1) Company Name Stock Price High Value Value Revenue Margin EBITDA Margin ROIC Net Debt EBITDA EBITDA EBITDA Container A.P. Møller - Mærsk A/S $930.48 60.7% $17,846.6 $30,158.9 $38,890.0 15.0% $4,456.0 11.5% 2.2% $11,983.0 3.8x 6.8x 5.9x COSCO SHIPPING Development Co., Ltd. 0.10 70.3% 2,553.4 17,047.1 2,043.6 24.4% 736.5 36.0% 1.0% 14,421.0 21.7x 23.1x N/M Evergreen Marine Corporation (Taiwan) Ltd. 0.34 69.4% 1,632.9 6,363.5 6,371.0 7.6% 438.8 6.9% 1.2% 4,635.5 13.6x 14.5x 12.9x Hapag-Lloyd Aktiengesellschaft 135.23 100.0% 23,881.6 30,274.0 14,148.7 17.6% 1,673.5 11.8% 3.8% 6,604.8 4.3x 18.1x 17.6x Atlas Corp. 7.45 51.0% 1,748.3 6,114.2 1,131.5 66.1% 709.2 62.7% 3.9% 4,365.6 6.4x 8.6x 7.8x Yang Ming Marine Transport Corporation 0.19 61.7% 492.3 3,288.0 4,986.8 4.1% 157.5 3.2% (0.6%) 2,788.9 21.6x 20.9x 11.5x Dry Bulk Diana Shipping Inc. $1.82 43.9% $144.4 $512.1 $220.7 52.8% $83.8 38.0% 2.3% $367.7 5.7x 6.1x 9.6x Eagle Bulk Shipping Inc. 1.58 26.7% 113.5 527.3 292.4 27.4% 38.9 13.3% 0.3% 413.8 12.0x 13.6x 6.6x Genco Shipping & Trading Limited 5.81 49.2% 233.6 572.0 389.5 26.7% 66.5 17.1% (0.0%) 338.3 7.4x 8.6x 6.0x Navios Maritime Holdings Inc. 2.27 28.1% 28.6 1,942.5 482.4 42.2% 174.6 36.2% 2.0% 1,798.7 10.8x 11.1x N/M Safe Bulkers, Inc. 1.09 45.8% 112.5 624.4 197.8 58.7% 94.4 47.7% 2.7% 494.7 6.4x 6.6x 9.7x Offshore Vessel Operators Bourbon Corporation SA $4.02 62.1% $311.3 $2,881.6 $740.7 38.4% ($82.8) (11.2%) (5.2%) $2,608.7 N/M N/M N/M Tidewater Inc. 5.80 23.1% 230.2 307.3 486.5 31.8% 37.9 7.8% (1.7%) 75.4 7.8x 8.1x 6.0x Jones Act American Shipping Company ASA $2.48 69.9% $150.3 $584.4 $87.8 100.0% $84.7 96.4% 4.2% $521.6 6.7x 6.9x 6.5x Kirby Corporation 51.03 55.3% 2,941.6 4,456.4 2,838.4 28.5% 462.2 16.3% 3.1% 1,511.8 3.3x 9.6x 9.4x Matson, Inc. 31.04 73.6% 1,227.9 2,429.7 2,203.1 14.8% 211.4 9.6% 3.3% 1,201.8 5.8x 11.5x 10.1x SEACOR Holdings Inc. 26.38 51.3% 525.8 900.2 800.0 27.0% 110.8 13.9% 2.0% 373.6 4.1x 8.1x 8.3x Tanker Ardmore Shipping Corporation $7.13 72.8% $211.6 $584.4 $230.0 29.0% $48.5 21.1% 1.3% $372.7 8.8x 12.1x 6.7x Capital Product Partners L.P. 9.97 70.2% 180.7 390.3 108.4 69.1% 83.8 77.3% 2.4% 201.0 3.1x 4.7x 4.3x Frontline Ltd. 10.78 80.9% 2,095.5 3,983.7 956.6 41.4% 352.9 36.9% 4.5% 1,887.9 5.9x 11.3x 4.8x GasLog Ltd. 3.59 21.5% 306.1 4,351.7 664.4 75.4% 447.9 67.4% 3.6% 3,084.1 7.5x 9.7x 8.8x Navigator Holdings Ltd. 6.53 46.7% 353.9 1,111.0 301.4 44.7% 100.9 33.5% 1.1% 757.0 8.2x 11.0x 8.6x Scorpio Tankers Inc. 26.64 65.9% 1,377.8 4,297.9 704.3 56.7% 291.4 41.4% 1.7% 2,920.1 10.7x 14.7x 6.6x Teekay Corporation 4.19 72.7% 385.0 7,053.8 1,945.4 39.0% 633.7 32.6% 3.0% 4,579.0 7.8x 11.1x N/M Tsakos Energy Navigation Limited 4.02 86.3% 331.0 1,756.8 597.5 47.0% 242.3 40.5% 2.3% 1,386.2 6.5x 7.3x 4.5x

Median $704.3 38.4% $174.6 32.6% 2.2% $1,511.8 7.1x 10.4x 7.8x Mean $3,272.8 39.4% $466.2 30.7% 1.8% $2,787.7 8.3x 11.0x 8.2x

Rail

($ in millions, except per-share prices) As of 4/27/20 % of 52- Total LTM TEV/ Week Equity Enterprise Gross EBITDA Debt/ LTM NFY Company Name Stock Price High Value Value Revenue Margin EBITDA Margin ROIC(1) Net Debt EBITDA EBITDA EBITDA Canadian National Railway Company $81.00 88.9% $56,313.0 $66,411.6 $10,524.6 54.2% $5,356.1 50.9% 8.4% $10,701.0 2.1x 12.4x 13.5x Canadian Pacific Railway Limited 230.32 88.5% 31,102.7 38,072.4 5,692.0 57.7% 3,159.2 55.5% 10.5% 6,930.1 2.2x 12.1x 13.7x CSX Corporation 66.41 82.3% 48,852.0 63,608.0 11,779.0 53.1% 6,260.0 53.1% 8.3% 14,739.0 2.8x 10.2x 11.2x Kansas City Southern 131.90 73.9% 12,486.6 16,020.6 2,922.9 51.1% 1,473.7 50.4% 7.3% 3,204.5 2.2x 10.9x 11.5x Norfolk Southern Corporation 166.87 75.9% 41,311.6 53,745.6 11,296.0 45.9% 5,191.0 46.0% 6.9% 12,434.0 2.5x 10.4x 11.2x Union Pacific Corporation 158.96 84.1% 105,917.7 134,268.7 21,553.0 56.0% 11,012.0 51.1% 8.8% 28,351.0 2.7x 12.2x 13.3x

Median $10,910.3 53.7% $5,273.6 51.0% 8.4% $11,567.5 2.4x 11.5x 12.4x Mean $10,627.9 53.0% $5,408.7 51.2% 8.4% $12,726.6 2.4x 11.3x 12.4x

Source: S&P Capital IQ (1) ROIC defined as NOPAT over average total assets less cash, goodwill, and accounts payable. 12 Public Comparables Leasing, Aviation, and Passenger Transportation

Transportation Equipment Leasing

Median $1,393.8 43.9% $1,194.2 32.8% 2.8% $4,025.7 5.6x 8.5x 8.8x Mean $3,084.0 51.0% $1,039.0 45.9% 4.0% $4,415.4 6.6x 9.3x 8.4x

Aviation

($ in millions, except per-share prices) As of 4/27/20 % of 52- Total LTM TEV/ Week Equity Enterprise Gross EBITDA Debt/ LTM NFY Company Name Stock Price High Value Value Revenue Margin EBITDA Margin ROIC(1) Net Debt EBITDA EBITDA EBITDA Airlines Air Canada $13.55 36.1% $3,376.9 $5,755.9 $14,749.8 32.1% $2,124.8 14.4% 6.3% $2,585.1 3.4x 2.7x N/M Alaska Air Group, Inc. 27.85 38.6% 3,433.6 5,128.6 8,781.0 28.4% 1,494.0 17.0% 7.6% 1,695.0 2.2x 3.4x 19.5x Allegiant Travel Company 69.62 38.0% 1,118.5 2,106.5 1,841.0 36.6% 473.1 25.7% 9.3% 988.0 3.1x 4.5x 12.3x American Airlines Group Inc. 10.02 28.6% 4,392.7 34,010.7 45,768.0 27.4% 6,207.0 13.6% 4.7% 29,618.0 5.4x 5.5x N/M Delta Air Lines, Inc. 22.16 34.9% 14,235.9 32,337.9 45,127.0 25.8% 7,627.0 16.9% 6.6% 18,102.0 3.2x 4.2x N/M Hawaiian Holdings, Inc. 11.52 36.8% 525.7 1,269.2 2,832.2 27.1% 458.8 16.2% 6.7% 743.5 3.0x 2.8x N/M JetBlue Airways Corporation 8.12 37.5% 2,144.2 3,968.2 8,094.0 33.8% 1,287.0 15.9% 4.9% 1,824.0 2.4x 3.1x N/M SkyWest, Inc. 27.11 40.8% 1,295.1 4,122.1 2,972.0 38.6% 902.2 30.4% 5.8% 2,827.0 3.7x 4.6x 6.6x Southwest Airlines Co. 29.11 49.5% 14,922.2 14,852.2 22,428.0 31.3% 3,990.0 17.8% 9.0% (70.0) 1.0x 3.7x N/M Spirit Airlines, Inc. 12.25 22.2% 831.7 3,305.4 3,830.5 34.6% 674.4 17.6% 6.3% 2,473.7 5.3x 4.9x 26.0x United Airlines Holdings, Inc. 25.00 26.0% 7,323.1 22,829.1 43,259.0 34.2% 6,721.0 15.5% 7.0% 15,506.0 3.0x 3.4x N/M Airport Services Air Transport Services Group, Inc. $19.58 76.5% $1,165.6 $2,657.5 $1,452.2 40.8% $436.1 30.0% 4.8% $1,492.0 3.5x 6.1x 5.7x Signature Aviation plc 2.10 41.4% 1,736.2 3,810.8 2,260.5 20.0% 406.0 18.0% 4.8% 2,209.6 5.7x 9.4x 9.2x Fraport AG 40.26 46.9% 3,720.1 9,136.3 4,201.2 35.4% 1,250.6 29.8% 3.8% 5,407.4 5.1x 7.3x 15.4x SATS Ltd. 2.12 55.2% 2,370.8 2,562.0 1,471.8 31.8% 256.6 17.4% 7.7% 64.6 0.9x 10.0x 12.2x Helicopter Operators Era Group Inc. 4.67 39.0% 93.8 149.0 226.1 31.6% 33.2 14.7% (0.4%) 52.4 5.1x 4.5x 2.4x

Median $4,015.9 32.0% $1,076.4 17.2% 6.3% $2,016.8 3.3x 4.5x 12.2x Mean $13,080.9 31.8% $2,146.4 19.4% 5.9% $5,344.9 3.5x 5.0x 12.2x

Passenger Transportation

Median $3,634.7 97.0% $299.9 10.4% 7.0% $508.1 4.5x 4.5x 3.8x Mean $5,792.2 114.8% ($1,199.8) 0.8% 1.3% ($34.7) 3.6x 4.8x 3.9x

Source: S&P Capital IQ (1) ROIC defined as NOPAT over average total assets less cash, goodwill, and accounts payable. 13 About Houlihan Lokey

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