Transportation & Logistics Industry Update April 2013

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Transportation & Logistics Industry Update April 2013

Greetings from the HW&Co. Transportation & Logistics Team

Welcome to the April edition of the Harris Williams & Co. Transportation & Logistics (T&L) newsletter. We use this forum to keep you (investors, senior managers, entrepreneurs, and others focused on the T&L sector) up to speed on what we are seeing in our sector, apprised of industry news and events, and connected to the T&L companies that we are fortunate to work with everyday.

We will continue to bring you transcripts of relevant discussions we have with senior industry professionals, like this month’s discussion with Paul Thompson, Founder and Chairman of Transportation Insight. We also want to keep you apprised of the transactions we are executing in our various sub-sectors, including non-asset and asset- based logistics, air, rail, marine products and services, and infrastructure.

We hope you enjoy reviewing this edition and please continue to email and call us with your thoughts and opinions. We want to ensure that this newsletter is informative and helpful as you focus on the transportation and logistics space.

Regards,

Contacts Frank F. Mountcastle, III Jason D. Bass Joseph H. Conner, III Managing Director Managing Director Director [email protected] [email protected] [email protected] +1 (804) 915-0124 +1 (804) 915-0132 +1 (804) 915-0151

Richmond Boston Cleveland London Minneapolis Philadelphia P: +1 (804) 648-0072 P: +1 (617) 482-7501 P: +1 (216) 222-9870 P: +44 203 170 8838 P: +1 (612) 359-2700 P: +1 (267) 675-5900 P: +1 (415) 288-4260 F: +1 (804) 648-0073 F: +1 (617) 482-7503 F: +1 (216) 222-0158 F: +44 207 681 1907 F: +1 (612) 359-2701 F: +1 (267) 675-5901 F: +1 (415) 288-4269

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Transportation & Logistics

Industry Update

April 2013

Transportation Insight is a global, non-asset-based third party logistics Trade Lanes with provider. Founded in 1999, Transportation Insight has grown to become Paul Thompson, one of ’s leading providers of custom-tailored end-to-end Founder and supply chain solutions. Chairman, Transportation Bio: Insight Paul Thompson founded Transportation Insight in 1999, creating a full- service, client-focused company providing custom-tailored supply chain solutions. Mr. Thompson previously spent 15 years developing pricing models for some of the largest motor carriers in the United States. Mr. Thompson holds four executive officer/board-level positions and founded or co-founded six highly successful companies in the transportation and logistics industry. Paul is an Arkansas native with an Industrial Engineering degree from the University of Arkansas. ______

HW&Co.: In 2012, flat was the new up for revenues and profitability for many 3PLs. How did the first quarter of 2013 shape up for Transportation Insight?

Paul Thompson (PT): Looking back to 2012, Transportation Insight won 70 new enterprise clients. In 2003, 2004, and 2005 we were winning clients at the same high rate, but we spent considerably less time back then to achieve the same number. Our close rate is as high as it has ever been, but it’s more challenging to get in the boardroom in front of the decision-makers today. To cut through the noise in the 3PL marketplace, we’re applying more science and technology to our marketing strategies. In the first quarter of 2013, we achieved our financial plan. Our growth plan for the remainder of the year is directly related to the tremendous strides we are making in positioning ourselves with our marketing efforts. The outlook for 2013 is very positive.

HW&Co.: Transportation Insight has a much more consultative business model than most other 3PLs. What drove the development of that strategy and how much of a differentiator is it for you in the marketplace?

PT: The driver of our co-managed approach to doing business is based on my belief that most companies want all of the services that an enterprise 3PL can offer, but they don’t want to relinquish control of their customer experience. They want technology, rate leverage in the marketplace, and business insight. They want to outsource freight bill audit and payment. They want to implement best practices in their business. We can provide all of those things to clients with excellence, and we do it without clients having to give up the control they really want to keep within their four walls.

HW&Co.: Thanks to the success of global, full-service logistics companies like Kuehne + Nagel and CEVA, the idea of an ‘end-to-end’, integrated logistics offering has gained popularity over the past decade. Yet as others have tried to broaden their service offering, adding truck brokerage or international freight forwarding to standalone contract logistics business (or vice versa), the synergistic end-to-end model has proven difficult to replicate. How has Transportation Insight successfully been able to grow its broad service offering (domestic, international, TMS, warehousing)?

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Transportation & Logistics

Industry Update April 2013

Trade Lanes PT: The co-managed DNA of our business approach, along with an expanded suite of consultative continued services across logistics, such as LEAN consulting within the manufacturer’s walls and helping clients source packaging materials at lower cost, are all designed to bolster our end-to-end service model. Originally, our focus was on carrier sourcing and helping our clients achieve the best transportation rates available in the marketplace. The primary reason for expanding our service offering to include all of these services was as much about client retention then as it is about new client development and expansion today. We now manage warehousing services, provide international shipping, engage in private fleet consultation, and provide consulting across the entire extended supply chain from the suppliers’ suppliers to the customers’ customers. And we do this from a LEAN perspective to drive waste out of the entire supply chain.

In addition, we provide a tremendous amount of business insight into supply chain data that clients can marry with other internal data to see their entire enterprise at a granular level. With Insight Fusion™, our business portal application, we give clients the ability to take a holistic approach and use their many data sources to make critical business decisions accurately and quickly. Insight Fusion™ closes the loop on our end-to-end service concept.

HW&Co.: Have you felt the ripple effect of an improving housing market in your freight volumes?

PT: We have seen customer volumes turn up slightly, but overall, we have noticed very little effect network-wide. The areas where we see increases are the localized areas where we’re seeing real estate rebound. We believe we’ll see a widespread impact into the future, but not as of yet.

HW&Co.: In 4Q2012, Transportation Insight appointed Chris Baltz as President and CEO and Laura Easley as COO. With this augmented c-suite, what strategic topics are the board and management focused on?

PT: Transportation Insight has grown from a startup company to more than $1 billion in spend under management in less than 15 years. With the size of the company and the number of moving parts in our enterprise, it’s really no longer possible for one person to manage the entire engine. Our new alignment places Chris Baltz in a position to run our core business and Laura Easley to focus on our operations within that core. My focus has now turned to expansion, investigating potential mergers, acquisitions, and partnerships to extend our reach.

HW&Co.: The kickoff to the college football season may be 5 months away, but the Red & White Spring Game at Arkansas is just around the corner. Will your Razorbacks return to national prominence for the upcoming campaign after a rebuilding year in 2012?

PT: I’m a hardcore Arkansas Razorbacks fan, but I’m also a hardcore SEC football fan since my kids have attended the University of Georgia and the University of Alabama. I honestly don’t know what will happen with the Razorbacks in 2013. I do know that we have the best football facilities in the country, and we have assembled one of the best coaching staffs in the history of college football. Setting aside 2013, I see a lot of promise in 2014 and beyond for the Razorbacks.

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Transportation & Logistics Industry Update

April 2013

Recent HW&Co. T&L Deal Profile

Harris Williams & Co. advised Total Quality, Inc. in its sale to strategic buyer Forward Air Corporation.

• Total Quality, Inc. is the market-leading provider of temperature a portfolio company of controlled, maximum security logistics to the pharmaceutical and life sciences industries. has been acquired by • Founded in 1992 and headquartered in Grand Haven, MI, Total Quality, Inc. serves many of the world’s largest pharmaceutical companies with an unmatched track record for safety, temperature integrity, and reliability.

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Transportation & Logistics

Industry Update

April 2013

What We’re . Transportation equipment demand boosts U.S. durable orders – Reuters reports that according to the Commerce Department, February’s rebound in transportation equipment demand pushed durable goods orders Reading up 5.7% after a decline in January. Excluding transportation, durable goods orders slipped 0.5% in February. Transportation equipment was led by a sharp increase in aircraft demand.

. Owner-operator population set to rise as the economy expands – Overdrive reports that the owner- operator population grew 6.2% in 2012 as capacity continues to tighten and the economy shows improvement. Researchers believe this trend should continue in 2013 as sluggish-to-moderate freight growth will continue to stimulate demand for owner-operator trucking services. . The global container shipping industry could face a wave of consolidation – Bloomberg reports that the industry’s struggling financial performance as a result of overcapacity, slumping demand, and low freight could create an opportunity for shippers to consolidate to realize economies of scale. Four of the world’s largest carriers carry 41% of global capacity; a share analysts believe could rise over the next few years. . Rail capacity and spending soar – reports that more than $14 billion in capital investment this year is heralding a construction boom in railroad infrastructure unlike anything since the Gilded Age of the 19th century. Annual capital spending has more than doubled from ten years ago with 2013 serving as the third consecutive record spending year. Rail capacity expansion will be important in order to serve the expected 50% freight growth by 2040, led by coal, chemicals, farm products, and energy products.

Date Announced Acquirer Target Sector Target Description Transportation Pending Cox Transfer Horton Trucking Trucking Provides flatbed trucking services.

& Logistics Pending Erickson Air-Crane Evergreen Helicopters Logistics Provides air transportation services through a fleet M&A of medium and heavy lift helicopters. 4/3/2013 Lineage Logistics SCS Rerigerated Services Logistics Provides temperature-regulated warehouse services in the Pacific Northwest. 4/2/2013 Continental Express Ranger Refrigerated Express Trucking Provides refrigerated trucking services.

3/18/2013 Tepper Holdings Fastfrate Holdings Logistics Provides third party logistics services.

3/4/2013 Forward Air Corporation Total Quality, Inc. Trucking Provides temperature-controlled, maximum security transportation for the pharmaceutical industry. 3/4/2013 CitySprint Sameday UK Limited Logistics Offers point-to-point courier services in the UK.

3/1/2013 Comvest Partners AutoInfo Logistics Provides non-asset based brokerage and contract carrier transportation services. 3/1/2013 Lion Equity Partners IMEX Global Solutions Logistics Provides mail logistics and distribution services globally. 2/27/2013 XPO Logistics Covered Logistics & Logistics Provides freight brokerage services. Transportation 2/26/2013 Constable Capital PeopLease Corporation Logistics Provides employee-related services for business owners in the trucking and transportation industry. 2/13/2013 Greatwide Logistics Cardinal Logistics Logistics Provides third party logistics and carraige services Management in North America. 2/13/2013 DSV A / S Seatainers Group A/S Logistics Provides global air and sea freight logistics.

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Transportation & Logistics Industry Update April 2013

Stock Trailing Five Year Stock Price Performance

120.0% Performance Overview 80.0%

40.0%

0.0%

(40.0%)

(80.0%) (120.0%)

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

Source: Capital IQ Source: Capital IQ Key Trading Statistics

Stock Price % Change TEV / LTM EBITDA as of TEV / EB ITDA P / E 1 Month 12 Month Feb-1 2 Aug-12 Current 2013E 2013E

Category

Logistics Providers (1.7%) 5.7% 9.9x 9.1x 10.3x 7.2x 14.0x Marine (2.8%) (12.8%) 10.1x 9.2x 9.1x 7.0x 10.8x Rail and Rail Services (2.8%) 26.8% 7.7x 7.5x 8.2x 7.1x 13.6x Trucking Providers (2.1%) (1.1%) 5.9x 5.4x 6.0x 5.1x 12.6x Transportation Equipment 1.7% (33.2%) 10.5x 9.2x 9.0x 4.6x 10.6x Source: Capital IQ Current Valuations Versus Historical Five-Year Average (Current TEV/LTM EBITDA multiple as a % of Five-Year Average) 160%

140% 134%

113% 120% 108% 100% 95%

80% 73%

60% 40% 20%

0% Logistics Providers Ma rine Ra il a nd Ra il Services Trucking Providers Transportation Equipment

Source: Capital IQ 6 of 9

Transportation & Logistics Industry Update April 2013

Price at 52 Week As a % of 52 Week As a % of Market Cash & Net Enterprise EV/ EV/ Price/ LTM EBITDA Total Debt/ Net Debt/ ($ in millions, except per share data) Ticker 4/8/13 High 52-wk High Low 52-wk Low Cap Debt Equiv. Debt Val ue (EV) LTM EBITDA 2013E EBITDA 2013E EPS Margin LTM EBITDA LTM EBITDA Trading Logistics Providers Statistics Detail Agility Public Warehousing Company KSC KWSE:AGLTY $2.13 $2.17 98.4% $1.19 179.4% $2,121 $304 $534 ($231) $1,891 7.2x 6.2x 7.1x 5.2% 1.2x 0.0x Air Transport Services Group, Inc. Nasdaq:ATSG 5.69 6.09 93.4% 3.38 168.3% 367 368 15 352 720 4.4x 4.1x 7.1x 26.9% 2.3x 2.2x Atlas Air Worldwide Holdings Inc. Nasdaq:AAWW 40.03 57.00 70.2% 38.35 104.4% 1,057 1,304 420 884 1,941 6.2x 5.3x 7.3x 19.0% 4.2x 2.8x CH Robinson Worldwide Inc. Nasdaq:CHRW 58.98 67.93 86.8% 50.81 116.1% 9,391 254 210 44 9,435 12.3x 10.0x 16.9x 6.8% 0.3x 0.1x Deutsche Post AG XTRA:DPW 22.54 24.56 91.8% 16.47 136.8% 27,246 6,350 3,340 3,010 30,256 7.9x 3.7x 12.5x 5.2% 1.7x 0.8x DSV A/S CPSE:DSV 23.95 26.04 91.9% 18.79 127.4% 4,264 1,252 98 1,154 5,418 10.0x 8.0x 14.0x 6.8% 2.3x 2.1x Echo Global Logistics, Inc. Nasdaq:ECHO 21.06 22.25 94.7% 15.50 135.9% 491 0 42 (42) 449 16.7x 8.1x 18.3x 3.5% 0.0x 0.0x of Washington Inc. Nasdaq:EXPD 36.21 47.48 76.3% 34.20 105.9% 7,480 0 1,261 (1,261) 6,220 10.9x 8.6x 17.8x 9.5% 0.0x 0.0x FedEx Corporation NYSE:FDX 95.50 109.66 87.1% 83.80 114.0% 30,261 2,242 3,372 (1,130) 29,131 5.4x 4.6x 12.6x 12.3% 0.4x 0.0x Forward Air Corp. Nasdaq:FWRD 36.94 39.58 93.3% 29.65 124.6% 1,109 0 112 (112) 997 9.6x 7.3x 16.0x 17.7% 0.0x 0.0x Hub Group Inc. Nasdaq:HUBG 38.03 41.18 92.4% 27.26 139.5% 1,432 23 71 (48) 1,384 10.3x 9.1x 16.1x 4.3% 0.2x 0.0x JB Hunt Transport Services Inc. Nasdaq:JBHT 73.40 75.73 96.9% 50.56 145.2% 8,628 685 6 680 9,308 12.3x 9.7x 20.7x 15.0% 0.9x 0.9x Kuehne + Nagel International AG SWX:KNIN 108.41 131.03 82.7% 99.83 108.6% 12,980 74 1,216 (1,141) 11,839 12.1x 7.9x 18.4x 5.2% 0.1x 0.0x Inc. Nasdaq:LSTR 55.55 59.97 92.6% 46.01 120.7% 2,583 148 110 38 2,621 11.4x 9.6x 16.7x 8.2% 0.6x 0.2x Pacer International, Inc. Nasdaq:PACR 4.81 7.04 68.3% 3.00 160.3% 169 0 20 (20) 149 8.8x 5.1x 12.2x 1.2% 0.0x 0.0x Panalpina World Transport Holding Ltd. SWX:PWTN 97.74 113.98 85.7% 82.89 117.9% 2,311 2 433 (431) 1,881 14.2x 4.7x 17.0x 1.8% 0.0x 0.0x Roadrunner Transportation Systems, Inc. NYSE:RRTS 23.02 23.71 97.1% 15.00 153.5% 806 163 12 151 957 11.8x 8.2x 13.9x 7.5% 2.0x 1.9x System, Inc. NYSE:R 57.83 61.68 93.8% 32.76 176.5% 3,001 3,821 68 3,753 6,754 4.8x 4.2x 10.6x 22.3% 2.7x 2.7x TransForce Inc. TSX:TFI 20.34 22.73 89.5% 15.76 129.1% 1,887 838 0 838 2,725 7.0x 6.1x 10.2x 12.4% 2.1x 2.1x , Inc. NYSE:UPS 83.54 85.95 97.2% 69.56 120.1% 79,029 12,925 7,925 5,000 84,029 11.9x NA 14.7x 13.1% 1.8x 0.7x Universal Truckload Services Inc. Nasdaq:UACL 23.32 25.38 91.9% 12.46 187.2% 701 146 13 133 834 8.7x 7.1x 13.1x 9.2% 1.5x 1.4x UTi Worldwide Inc. Nasdaq:UTIW 14.39 17.91 80.3% 12.31 116.9% 1,496 375 237 138 1,634 11.2x 7.1x 17.3x 3.2% 2.6x 0.9x World Fuel Services Corp. NYSE:INT 38.00 45.20 84.1% 33.65 112.9% 2,744 380 173 208 2,951 10.3x 8.0x 11.5x 0.7% 1.3x 0.7x Mean 9.8x 6.9x 14.0x 9.4% 1.2x 0.8x Median 10.3x 7.2x 14.0x 7.5% 1.2x 0.7x Trucking Arkansas Best Corporation NasdaqGS:ABFS $11.36 $19.25 59.0% $6.43 176.7% $291 $170 $120 $50 $341 4.7x 2.7x 12.8x 3.5% 2.3x 0.7x Celadon Group Inc. NYSE:CGI 18.54 21.99 84.3% 13.51 137.2% 420 238 8 230 650 5.8x 5.8x 11.7x 18.2% 2.1x 2.1x Con-way Inc. NYSE:CNW 34.01 38.78 87.7% 25.97 131.0% 1,915 772 433 339 2,254 5.2x 4.1x 11.9x 7.8% 1.8x 0.8x Covenant Transportation Group, Inc. NasdaqGS:CVTI 6.15 6.55 93.9% 2.92 210.6% 91 175 7 168 259 3.6x 3.3x 11.8x 10.6% 2.5x 2.4x Heartland Express, Inc. NasdaqGS:HTLD 13.37 14.71 90.9% 12.43 107.6% 1,133 0 120 (120) 1,014 7.4x 6.0x 15.9x 25.2% 0.0x 0.0x Knight Transportation Inc. NYSE:KNX 15.89 17.38 91.4% 13.74 115.6% 1,269 80 6 74 1,343 7.3x 5.8x 14.9x 19.7% 0.4x 0.4x Marten Transport Ltd. NasdaqGS:MRTN 19.57 22.39 87.4% 16.75 116.8% 433 3 3 (1) 432 4.3x 3.5x 12.8x 15.9% 0.0x 0.0x Old Dominion Freight Line Inc. NasdaqGS:ODFL 37.32 38.76 96.3% 26.12 142.9% 3,216 240 13 228 3,443 8.7x NA 14.5x 18.8% 0.6x 0.6x P.A.M. Transportation Services, Inc. NasdaqGM:PTSI 10.65 11.75 90.6% 8.81 120.9% 93 118 18 100 193 4.7x NM NM 10.8% 2.9x 2.4x Quality Distribution Inc. NasdaqGM:QLTY 8.07 13.68 59.0% 4.91 164.4% 218 419 3 416 634 8.6x 6.2x 7.6x 8.8% 5.7x 5.6x Saia, Inc. NasdaqGS:SAIA 34.76 36.90 94.2% 16.20 214.6% 553 61 0 60 614 5.8x NA 12.3x 9.7% 0.6x 0.6x Swift Transportation Company NYSE:SWFT 13.72 15.67 87.6% 7.47 183.7% 1,918 1,588 54 1,534 3,453 6.5x 5.6x 10.9x 15.1% 3.0x 2.9x Universal Truckload Services Inc. NasdaqGS:UACL 23.32 25.38 91.9% 12.46 187.2% 701 146 13 133 834 8.7x 7.1x 13.1x 9.2% 1.5x 1.4x USA Truck Inc. NasdaqGS:USAK 4.98 7.56 65.8% 2.65 187.8% 51 143 2 142 193 9.8x 3.8x NM 3.8% 7.3x 7.2x Vitran Corp Inc. TSX:VTN 5.20 8.58 60.6% 3.53 147.2% 85 105 0 105 190 NM 6.5x 11.2x NM NM NM Werner Enterprises Inc. NasdaqGS:WERN 23.66 25.02 94.6% 20.63 114.7% 1,733 90 15 75 1,808 5.7x 4.6x 13.7x 15.6% 0.3x 0.2x YRC Worldwide Inc. NasdaqGS:YRCW 6.79 9.60 70.7% 4.56 148.9% 62 1,375 209 1,167 1,229 6.2x 3.9x NM 4.1% 6.9x 5.9x Mean 6.4x 4.9x 12.5x 12.3% 2.4x 2.1x Median 6.0x 5.1x 12.6x 10.7% 1.9x 1.1x Rail and Rail Services American Railcar Industries, Inc. NasdaqGS:ARII $40.78 $47.1 86.6% $20.3 201.3% $871 $275 $218 $57 $928 6.4x 5.0x 9.6x 20.4% 1.9x 0.4x Canadian National Railway Company TSX:CNR 96.49 104.45 92.4% 74.33 129.8% 41,142 6,922 156 6,767 47,909 10.4x 9.1x 14.3x 46.5% 1.5x 1.5x Canadian Pacific Railway Limited TSX:CP 120.50 130.40 92.4% 70.25 171.5% 21,043 4,705 334 4,371 25,414 14.3x 9.7x 16.1x 31.1% 2.6x 2.5x CSX Corp. NYSE:CSX 23.84 24.69 96.6% 18.88 126.3% 24,354 9,832 1,371 8,461 32,815 7.3x 6.6x 11.7x 38.4% 2.2x 1.9x FreightCar America Inc. NasdaqGS:RAIL 21.07 25.15 83.8% 17.16 122.8% 253 0 140 (140) 113 2.8x 3.4x 14.8x 6.0% 0.0x 0.0x Genesee & Wyoming Inc. NYSE:GWR 87.87 94.80 92.7% 47.08 186.6% 4,670 1,863 65 1,798 6,468 23.4x 10.1x 16.7x 31.6% 6.7x 6.5x The Greenbrier Companies, Inc. NYSE:GBX 20.98 23.08 90.9% 13.10 160.2% 571 478 56 422 993 6.7x 5.0x 8.6x 8.3% 3.2x 2.8x Kansas City Southern NYSE:KSU 104.73 112.25 93.3% 61.36 170.7% 11,541 1,609 73 1,536 13,077 15.0x 11.4x 20.9x 38.9% 1.8x 1.8x Norfolk Southern Corp. NYSE:NSC 74.52 77.42 96.3% 56.05 133.0% 23,436 8,815 668 8,147 31,583 7.8x 7.0x 11.7x 36.6% 2.2x 2.0x Trinity Industries Inc. NYSE:TRN 41.60 45.67 91.1% 21.53 193.2% 3,294 3,098 573 2,525 5,819 7.8x 6.2x 9.7x 19.7% 4.1x 3.4x Union Pacific Corporation NYSE:UNP 138.54 143.00 96.9% 104.08 133.1% 64,889 8,997 1,063 7,934 72,823 8.6x 7.2x 12.9x 40.6% 1.1x 0.9x Wabtec Corporation NYSE:WAB 99.02 102.38 96.7% 68.27 145.0% 4,762 318 216 102 4,864 11.1x 9.1x 15.0x 18.3% 0.7x 0.2x Mean 10.1x 7.5x 13.5x 28.0% 2.3x 2.0x Median 8.2x 7.1x 13.6x 31.4% 2.0x 1.8x Marine A.P. Møller - Mærsk A/S CPSE:MAERSK B $7,571.67 $8,298.77 91.2% $6,117.46 123.8% $32,402 $19,627 $2,681 $16,946 $49,348 4.0x 3.4x 8.9x 20.7% 1.6x 1.4x Aegean Marine Petroleum Network Inc. NYSE:ANW 6.21 7.93 78.3% 4.28 145.1% 289 654 77 577 866 9.3x 7.5x 6.1x 1.3% 7.0x 6.2x Costamare Inc. NYSE:CMRE 15.61 16.71 93.4% 12.08 129.2% 1,168 1,743 267 1,475 2,643 11.1x 7.5x 7.8x 61.6% 7.3x 6.2x Diana Shipping Inc. NYSE:DSX 9.69 11.09 87.4% 5.89 164.5% 797 460 447 13 810 6.7x 12.9x NM 54.2% 3.8x 0.1x Kirby Corporation NYSE:KEX 73.83 78.04 94.6% 42.78 172.6% 4,188 1,137 11 1,126 5,313 10.4x 8.4x 15.6x 24.1% 2.2x 2.2x Matson, Inc. NYSE:MATX 23.25 53.71 43.3% 19.96 116.5% 1,119 319 20 299 1,418 8.1x 2.2x 15.5x 11.2% 1.8x 1.7x Neptune Orient Lines Ltd. SGX:N03 0.93 1.15 80.7% 0.81 115.0% 2,397 3,997 897 3,100 5,497 61.6x 8.5x 15.5x 0.9% NM NM Nordic American Tankers Limited NYSE:NAT 9.71 15.02 64.6% 8.15 119.1% 627 250 56 194 821 NM NM NM 5.3% NM NM Rand Logistics, Inc. NasdaqCM:RLOG 5.54 9.25 59.9% 5.31 104.3% 98 156 6 149 248 8.8x 6.6x 10.8x 17.9% 5.5x 5.3x Seacor Holdings Inc. NYSE:CKH 72.36 96.53 75.0% 67.76 106.8% 1,439 967 289 678 2,117 9.0x 6.5x 12.6x 14.9% 4.1x 2.9x Wilh. Wilhelmsen ASA OB:WWASA 8.79 9.80 89.7% 6.25 140.8% 1,935 1,534 474 1,060 2,995 13.3x 5.0x 4.3x 57.2% 6.8x 4.7x Mean 14.2x 6.8x 10.8x 24.5% 4.5x 3.4x Median 9.1x 7.0x 10.8x 17.9% 4.1x 2.9x

Transportation Equipment Accuride Corp. NYSE:ACW $4.78 $8.37 57.1% $2.21 216.3% $227 $324 $27 $297 $524 10.6x 4.6x 10.6x 5.3% 6.5x 6.0x Dana Holding Corporation NYSE:DAN 16.34 18.24 89.6% 11.13 146.8% 2,416 904 1,119 (215) 2,201 2.9x 2.5x 7.8x 10.4% 1.2x 0.0x Gentherm Incorporated NasdaqGS:THRM 15.42 17.22 89.5% 10.06 153.3% 512 73 58 15 527 7.5x 6.0x 12.0x 12.6% 1.0x 0.2x Spartan Motors Inc. NasdaqGS:SPAR 5.05 5.95 84.9% 4.01 125.9% 171 5 22 (16) 155 10.0x 4.4x 11.2x 3.3% 0.3x 0.0x Wabash National Corp. NYSE:WNC 9.44 11.00 85.8% 5.65 167.1% 646 425 81 344 990 9.0x 5.1x 8.6x 7.6% 3.8x 3.1x Mean 8.0x 4.5x 10.1x 7.8% 2.6x 1.9x Median 9.0x 4.6x 10.6x 7.6% 1.2x 0.2x

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Transportation & Logistics

Industry Update April 2013

Recent portfolio companies of a portfolio company of a portfolio company of a portfolio company of a portfolio company of HW&Co. T&L A portfolio company of Transactions have completed a merger with has been acquired by has been acquired by has been acquired by has been acquired by has been acquired by a portfolio company of

Our Professionals have deep expertise across the spectrum of Transportation & Logistics sectors.

Third -Party Logistics

Surface Transportation

Rail

Aviation

Marine

Transportation Equipment

Automotive

Companies above represent select experience of Harris Williams & Co. professionals.

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Transportation & Logistics

Industry Update April 2013

Harris Williams & Co.’s Transportation & Logistics Group has industry-leading experience in a broad range of Contact Us attractive niches, including third party logistics, surface transportation, airport and aviation services, marine transportation, automotive and heavy duty vehicles, transportation equipment, and transportation infrastructure. Frank Mountcastle Our middle market leadership and sell-side execution excellence deliver unmatched results for our clients. For Managing Director [email protected] more information, contact one of our professionals. +1 804-915-0124

Jason Bass Managing Director [email protected] +1 804-915-0132

Joseph Conner Director [email protected] +1 804-915-0151 Jeff Burkett Vice President [email protected] +1 804-932-1334

Jershon Jones Sources: Vice President [email protected] • Capital IQ +1 804-932-1356 • Thomson Financial • S&P • Reuters

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.

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