Transportation & Logistics Industry Update

TRANSPORTATION & LOGISTICS

INDUSTRY UPDATE │ JULY 2015

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0 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2015

WHAT WE'RE READING

CONTENTS LOGISTICSLOGISTICS || INVESTMENTSU.S. TRANSPORTMADEJOBTOOPENINGSBUILD INTEGRATEDSPIKE 59 PERCENTCOLD CHAIN . M&A TRANSACTIONS Second-quarter economic growth in the U.S. is generating strong demand for . PUBLIC MARKETS OVERVIEW transportation labor. Employers, however, are having a difficult time satisfying the . STOCK PRICE PERFORMANCE new demand. With 269,000 new job postings in May, the industry is experiencing a 59.2% year-over-year increase in transport job openings. As unemployment . OUR GROUP continues to drop, approaching 5%, transport employers continue to experience difficulty filling openings, only satisfying approximately 65% of open positions in the industry. CONTACTS Journal of Commerce UNITED STATES LOGISTICS | 26TH ANNUAL STATE OF LOGISTICS Frank Mountcastle The logistics industry as a whole experienced the best year in freight transportation Managing Director since the Great Recession, primarily derived through increased efficiencies that [email protected] drove U.S. economic growth. Capacity issues, however, persist, causing +1 (804) 915-0124 apprehension from shippers. Concerned with rate hikes, carriers continue to create strategic partnerships. Logistic expenses were, however, held to historically Jason Bass Managing Director low levels as a percentage of GDP, highlighting the industry focus on efficiency. [email protected] Logistics Management +1 (804) 915-0132 Joe Conner TRUCKING | TOP 100 CARRIERS GET MORE SELECTIVE WITH FREIGHT Managing Director [email protected] The nation’s largest for-hire carriers are becoming more selective about the freight +1 (804) 915-0151 they haul, taking steps to minimize delays and focusing on better utilization of Jeff Burkett equipment and personnel as strong demand and a shortage of drivers continue to Director strain capacity. Tight capacity, however, does not necessarily harm growth within [email protected] the trucking industry, as the number of companies with annual revenue of at least +1 (804) 932-1334 $1 billion increased to 35 from 30 the previous year. Jershon Jones Transport Topics Director [email protected] MARINE | SHIPPERS VIEW ALLIANCES AS BULWARKS FOR COMPETITION +1 (804) 932-1356 Jeff Kidd The grouping of the world’s largest container lines into four large alliances covering Vice President all east-west trades has yielded an unexpected result. Shippers no longer view [email protected] alliances as vehicles for rate collusion but as vehicles to “prop up” smaller lines that +1 (804) 915-0178 are finding it increasingly difficult to compete with the three largest carriers. Bruce Carlton, president and CEO of the National Industrial Transportation League, noted EUROPE “with some time to observe actual performance, there’s less to be afraid of than we once thought.” Jeffery Perkins Journal of Commerce Managing Director [email protected] RAIL | INTERMODAL SEES HIGHEST-VOLUME MONTH IN HISTORY +49 (0) 69 3650638 00

The Association of American Railroads (AAR) reported that intermodal traffic numbers reached a historic monthly high at 1,117,149 containers and trailers, representing a gain of nearly 4% for the month. John T. Gray (AAR SVP of Policy and Economics) believes “the growth in rail intermodal units is one of America’s best transportation-related success stories” and “2015 will almost certainly set another annual record, breaking the record set last year.” Railway Age

AIR | AIRLINES' PROFITS IMPROVE BUT NOT IN CARGO

The International Air Transport Association (IATA) released data for global air freight markets showing that growth continued to slow throughout May. Tony Tyler (IATA CEO) considers “some economic fundamentals still point to a rebound… but we have to recognize that business confidence is flat and export orders are in decline.” IATA

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PAGE | 1 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2015

M&A TRANSACTIONS

RECENT M&A TRANSACTIONS1,2

Announced Sector Target Business Description Acquirer 7/21/2015 Logistics Extra Express Asset-light provider of B2B last mile services based in Los Angeles, Dicom Transportation CA. Group, L.P.

7/20/2015 Equipment Allstate Utility Trailers Inc. Provides utility trailers, cargo trailers, car trailers, and dump trailers, Mobile Mini, Inc. parts, and accessories nationwide.

7/16/2015 Logistics G4S International Provides secure transportation and delivery for high value goods. UPS Capital Corporation Logistics, Insured Parcel Services Business 7/14/2015 Rail Transportation Engineering and logistics company specializing in handling all aspects BNSF Logistics LLC Technology Services, of shipping by rail. Inc. 7/10/2015 Equipment US Trailer Holdings and US Trailer Holdings specializes in leasing highway trailers, domestic Milestone Equipment Quest Capital Group containers, and chassis. Quest Capital Group provides business and Holdings, LLC equipment financing to businesses in the United States. 7/8/2015 Air Fraport Cargo Services Provides independent cargo handling services at Frankfurt Airport, WFS Global SAS GmbH Europe's joint largest cargo airport alongside Paris CDG.

7/6/2015 Logistics TransForce, Inc. Specialized staffing and recruiting company that provides qualified Palladium Equity Partners commercial truck drivers to third-party logistics companies, private fleets, and trucking companies. 7/1/2015 Trucking Bulldog Hiway Express Provides truck load and intermodal carrier services in the U.S. and Daseke, Inc. Canada operating several hundred power units and more than 400 trailers. 6/25/2015 Logistics ReTrans, Inc. Provides multimodal transportation management solutions in the U.S. Kuehne + Nagel and internationally. International AG

6/18/2015 Trucking The Kenan Advantage North America's largest tank truck transporter and logistics provider, OMERS Private Equity Group, Inc. delivering fuel, chemicals, industrial gases, and food-grade products.

6/17/2015 Logistics Orbis Logistics, Inc. Operates warehouses in four states and provides final-mile delivery Dicom Transportation and distribution services in the Midwest and Southeast. Group, L.P.

6/15/2015 Logistics Parcel Pro Inc. Provider of insured shipping and risk management services UPS Capital Corporation worldwide.

6/8/2015 Logistics Service By Air, Inc. Provides transportation and logistics services through its network of Radiant Logistics, Inc. exclusive agent and company-owned offices across North America.

6/8/2015 Logistics RoadOne Provides full-service intermodal transportation solutions for domestic Tritium Partners IntermodaLogistics, LLC and international shippers.

6/1/2015 Logistics Haas Industries, Inc. Provides freight forwarding and logistics services. Lynden International Inc.

6/1/2015 Logistics ABC Fulfillment, LLC Provides e-commerce services, specializing in high volume direct-to- TAGG Logistics, LLC consumer order fulfillment and customer service.

5/25/2015 Trucking Hodges Trucking Operates as an oilfield carrier and heavy haul transportation Aveda Transportation and Company, L.L.C. company. Energy Services Inc.

5/22/2015 Equipment Crane Rental Provides heavy haul, specialized rigging, and crane services in the Maxim Crane Works, L.P. Corporation Southeast United States.

PAGE | 2 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2015

PUBLIC MARKETS OVERVIEW

TEV / LTM EBITDA TEV / 2015E EBITDA

Logistics Providers 10.7x Logistics Providers 10.3x

Marine 9.3x Rail & Rail Services 8.9x

Rail & Rail Services 8.6x Marine 8.5x

Trucking 7.2x Trucking 6.4x

Transportation Transportation 6.3x 5.4x Equipment Equipment

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

Rail & Rail Services 11.5% Trucking 8.5%

Transportation 8.7% Rail & Rail Services 6.6% Equipment

Trucking 7.7% Logistics Providers 6.1%

Transportation Logistics Providers 6.4% 5.2% Equipment

Marine 3.5% Marine (0.4%)

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

Rail & Rail Services 17.5% Marine 15.6%

Trucking 13.0% Trucking 15.1%

Marine 7.5% Logistics Providers 14.0%

Transportation Transportation 7.4% 11.6% Equipment Equipment

Logistics Providers 6.9% Rail & Rail Services 8.8%

PAGE | 3 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2015

STOCK PRICE PERFORMANCE

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

Logistics Providers (3.3%) Logistics Providers 1.8%

Marine (4.0%) Trucking (5.4%)

Transportation Trucking (4.5%) (11.2%) Equipment

Rail & Rail Services (7.6%) Rail & Rail Services (17.3%)

Transportation (11.0%) Marine (20.6%) Equipment

TRAILING TWELVE MONTHS

(Indexed to July 20, 2014)

20%

15%

10%

(5%)

(10%)

(15%)

(20%)

(25%)

(30%) Jul-20-2014 Oct-20-2014 Jan-20-2015 Apr-20-2015 Jul-20-2015

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

PAGE | 4 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2015

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

RCL Services Group

in partnership with a portfolio company of and a portfolio company of a portfolio company of a portfolio company of a portfolio company of has sold has been acquired by

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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 │ JULY 2015

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.

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PAGE | 6 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2015

PUBLIC COMPARABLES

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 Jun-14 Dec-14 Current 2014 2015E Transportation & Logistics

Logistics Providers Agility Public Warehousing Company KSC $2,197 $2.14 (8.2%) (17.5%) $2.89 74.2% 8.5x 10.2x 8.5x 8.3x 7.7x Air Transport Services Group, Inc. 987 10.28 (1.2%) 26.6% 10.96 93.8% 5.2x 5.0x 5.3x 5.5x 5.2x Atlas Air Worldwide Holdings, Inc. 2,782 50.83 (7.1%) 41.0% 59.47 85.5% 8.1x 8.4x 7.5x 8.1x 7.4x CH Robinson Worldwide Inc. 10,280 63.67 (0.8%) (1.8%) 77.49 82.2% 14.2x 14.4x 12.5x 12.9x 11.7x Deutsche Post AG 41,359 31.40 5.9% (8.7%) 33.84 92.8% 9.8x 9.5x 10.7x 9.3x 8.6x DSV A/S 6,760 34.74 2.6% 7.5% 35.10 99.0% 12.1x 12.6x 15.3x 13.9x 13.5x Echo Global Logistics, Inc. 929 32.77 (1.3%) 60.8% 34.35 95.4% 15.1x 17.7x NM NM 12.4x Expeditors International of Washington Inc. 7,573 44.98 (6.4%) 0.6% 49.51 90.9% 12.5x 11.4x 11.2x 11.8x 10.3x FedEx Corporation 51,577 170.21 (3.3%) 11.3% 185.19 91.9% 7.1x 8.2x 7.2x 8.0x 7.5x Forward Air Corp. 1,672 51.66 (4.1%) 8.0% 57.65 89.6% 12.5x 11.2x 13.7x 13.2x 10.7x Hub Group Inc. 1,420 39.01 (9.5%) (19.1%) 49.31 79.1% 12.9x 9.2x 10.5x 10.5x 11.4x JB Hunt Transport Services Inc. 10,633 83.61 (4.0%) 7.0% 93.50 89.4% 11.7x 11.0x 10.6x 11.5x 10.1x Kuehne + Nagel International AG 15,954 136.58 0.1% 1.8% 154.44 88.4% 14.1x 15.9x 15.1x 16.2x 15.0x Landstar System Inc. 2,981 67.61 0.2% 4.4% 81.80 82.7% 13.3x 11.5x 11.7x 11.9x 11.0x Panalpina World Transport Holding Ltd. 2,550 122.04 (8.3%) (19.8%) 153.72 79.4% 19.1x 18.4x 16.6x 17.0x 12.3x Roadrunner Transportation Systems, Inc. 1,397 25.50 (5.0%) (7.9%) 28.61 89.1% 12.9x 10.5x 10.8x 11.6x 9.2x Ryder System, Inc. 9,521 91.71 (1.9%) 2.5% 100.64 91.1% 5.9x 5.6x 5.8x 5.8x 5.3x TransForce Inc. 3,254 19.11 (8.9%) (17.9%) 24.35 78.5% 10.0x 9.6x 9.0x 9.0x 7.9x United Parcel Service, Inc. 94,772 97.59 (3.2%) (6.0%) 114.40 85.3% 12.8x 15.5x 13.5x 13.8x 9.8x Universal Truckload Services Inc. 849 21.33 (4.0%) (14.8%) 29.06 73.4% 9.1x 7.6x 7.3x 7.4x 7.1x UTi Worldwide Inc. 1,508 8.60 (15.9%) (15.0%) 14.75 58.3% NM NM NM 17.9x 15.9x World Fuel Services Corp. 3,841 48.77 (0.1%) 2.5% 58.50 83.4% 12.6x 11.7x 11.6x 12.1x 10.8x XPO Logistics, Inc. 4,403 46.29 (2.6%) 70.1% 50.96 90.8% NM NM NM NM 11.5x Median (3.3%) 1.8% 88.4% 12.5x 11.0x 10.7x 11.6x 10.3x Trucking ArcBest Corporation $751 $30.49 (11.1%) (27.7%) $47.52 64.2% 7.9x 6.7x 4.6x 4.8x 4.0x Celadon Group Inc. 1,038 21.55 (5.1%) (3.9%) 29.15 73.9% 7.9x 7.9x 8.9x 10.0x 7.7x Con-way Inc. 2,438 37.03 (7.4%) (24.4%) 53.54 69.2% 6.8x 5.7x 4.8x 4.9x 4.5x Covenant Transportation Group, Inc. 679 25.48 (6.5%) 99.8% 36.82 69.2% 5.6x 8.0x 6.8x 7.7x 5.5x Heartland Express, Inc. 1,670 19.62 (4.6%) (10.7%) 27.96 70.2% 11.3x 11.3x 8.0x 8.0x 6.9x Knight Transportation Inc. 2,319 27.44 (2.4%) 12.6% 34.73 79.0% 9.8x 11.2x 8.9x 9.7x 7.4x Marten Transport Ltd. 648 19.40 (11.7%) (8.4%) 24.92 77.8% 6.6x 6.4x 5.3x 5.6x 4.7x Old Dominion Freight Line Inc. 5,914 68.54 (4.4%) 10.9% 81.48 84.1% 10.8x 10.9x 9.6x 10.1x 8.7x P.A.M. Transportation Services, Inc. 509 58.70 4.4% 79.8% 67.61 86.8% 6.6x 9.0x 8.5x 9.3x NA Quality Distribution Inc. 770 15.84 0.8% 6.0% 15.88 99.7% 11.7x 8.7x 11.2x 11.0x 9.0x Saia, Inc. 1,088 39.40 (2.3%) (12.9%) 57.60 68.4% 9.0x 8.9x 7.2x 7.5x 6.4x Swift Transportation Company 4,581 22.84 (1.7%) (6.9%) 29.44 77.6% 9.1x 9.1x 7.5x 7.9x 6.8x Universal Truckload Services Inc. 849 21.33 (4.0%) (14.8%) 29.06 73.4% 9.1x 7.6x 7.3x 7.4x 7.1x USA Truck Inc. 317 20.10 (17.6%) 14.4% 32.14 62.5% 7.3x 6.9x 5.0x 5.3x 4.8x Werner Enterprises Inc. 1,995 27.54 (0.2%) 4.4% 33.42 82.4% 6.4x 6.9x 5.8x 6.3x 5.2x YRC Worldwide Inc. 1,374 12.90 (8.4%) (53.3%) 28.29 45.6% 12.0x 7.5x 5.8x 7.0x 4.5x Median (4.5%) (5.4%) 73.7% 8.5x 7.9x 7.2x 7.6x 6.4x

PAGE | 7 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2015

PUBLIC COMPARABLES

Rail and Rail Services American Railcar Industries, Inc. $1,254 $44.18 (15.8%) (33.8%) $82.82 53.3% 8.0x 6.2x 5.5x 6.1x 5.0x Canadian National Railway Company 55,315 60.02 (2.2%) (11.8%) 68.49 87.6% 13.2x 12.4x 11.3x 11.3x 11.8x Canadian Pacific Railway Limited 30,949 158.99 (5.2%) (18.4%) 190.74 83.4% 15.7x 14.1x 13.1x 12.7x 12.0x CSX Corp. 40,501 32.00 (8.5%) 2.9% 37.99 84.2% 8.8x 9.1x 8.2x 8.5x 8.2x FreightCar America Inc. 150 19.47 (16.6%) (14.8%) 37.48 51.9% NM 12.0x 6.2x 8.8x 4.1x Genesee & Wyoming Inc. 6,297 71.84 (10.2%) (30.4%) 105.49 68.1% 13.4x 10.8x 10.7x 11.0x 10.5x The Greenbrier Companies, Inc. 1,720 43.99 (17.7%) (33.2%) 78.32 56.2% 10.6x 6.9x 4.7x 7.2x 4.0x Kansas City Southern 13,159 97.40 2.3% (16.3%) 126.49 77.0% 14.6x 13.0x 12.1x 11.9x 12.0x Norfolk Southern Corporation 34,930 86.09 (6.7%) (18.9%) 117.64 73.2% 9.4x 8.8x 7.8x 7.7x 8.5x Trinity Industries Inc. 7,192 25.77 (12.7%) (42.7%) 50.77 50.8% 7.7x 5.2x 5.1x 5.1x 4.6x Union Pacific Corporation 97,106 98.31 (2.8%) (3.0%) 124.52 79.0% 10.2x 10.2x 9.0x 9.1x 9.2x Westinghouse Air Brake Technologies Corporation 9,361 95.10 (3.7%) 17.3% 105.10 90.5% 15.1x 14.1x 15.1x 15.9x 14.0x Median (7.6%) (17.3%) 75.1% 10.6x 10.5x 8.6x 8.9x 8.9x Marine Aegean Marine Petroleum Network Inc. $1,214 $11.77 (10.3%) 20.7% $15.71 74.9% 13.8x 13.0x 12.2x 12.4x 9.3x Costamare Inc. 2,988 18.12 (7.0%) (24.2%) 24.94 72.7% 12.0x 9.1x 9.3x 9.4x 9.0x Diana Shipping Inc. 967 7.93 3.8% (22.9%) 11.04 71.8% 19.8x 14.3x NM 19.3x NM Kirby Corporation 5,022 75.23 (4.0%) (36.7%) 124.12 60.6% 12.0x 7.9x 7.8x 7.8x 8.6x Matson, Inc. 1,865 41.88 (1.6%) 46.2% 43.84 95.5% 8.7x 8.1x 8.0x 9.2x 7.6x Neptune Orient Lines Limited 6,012 0.68 7.9% (9.9%) 0.88 77.5% NM NM 14.2x NM 12.6x Nordic American Tankers Limited 1,649 16.61 16.5% 78.6% 17.19 96.6% NM 19.9x 19.4x NM 7.5x Rand Logistics, Inc. 241 3.17 (3.9%) (45.9%) 6.65 47.7% 8.7x 6.9x 7.9x 8.2x 6.8x SEACOR Holdings Inc. 1,698 64.95 (8.1%) (18.3%) 83.12 78.1% 8.9x 7.5x 8.0x 6.9x 8.5x Wilh. Wilhelmsen ASA 2,191 5.81 (4.8%) (27.4%) 6.75 86.1% NM 15.4x 14.2x 15.7x 5.0x Median (4.0%) (20.6%) 76.2% 12.0x 9.1x 9.3x 9.3x 8.5x Transportation Equipment Accuride Corp. $486 $3.70 (7.7%) (27.7%) $5.75 64.3% 9.6x 7.0x 6.3x 6.5x 5.4x Dana Holding Corporation 3,838 19.35 (11.0%) (14.9%) 24.82 78.0% 6.0x 6.2x 5.5x 5.4x 5.2x Gentherm Incorporated 1,792 49.36 (12.4%) 4.4% 57.95 85.2% 14.9x 10.3x 13.2x 13.3x 11.9x Spartan Motors Inc. 139 4.26 (13.8%) (6.6%) 5.71 74.6% 16.1x 16.9x 15.0x 14.8x 13.1x Wabash National Corp. 1,027 11.95 (7.9%) (11.2%) 15.21 78.6% 8.3x 6.9x 6.1x 6.4x 5.2x Median (11.0%) (11.2%) 78.0% 9.6x 7.0x 6.3x 6.5x 5.4x

PAGE | 8 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2015

PUBLIC COMPARABLES

Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P Transportation & Logistics Logistics Providers Agility Public Warehousing Company KSC $4,775 $5,039 $4,873 $4,633 $4,603 $4,815 (1.0%) 1.9% $199 $254 $296 $265 $284 $303 10.0% 7.1% Air Transport Services Group, Inc. 730 607 580 590 605 623 (6.9%) 2.8% 181 163 158 179 191 199 (0.3%) 5.3% Atlas Air Worldwide Holdings, Inc. 1,384 1,632 1,643 1,785 1,834 1,872 8.8% 2.4% 203 296 307 344 376 373 19.1% 4.1% CH Robinson Worldwide Inc. 10,336 11,359 12,752 13,470 14,270 15,278 9.2% 6.5% 720 751 731 797 880 926 3.4% 7.8% Deutsche Post AG 68,631 73,191 75,621 68,547 65,236 67,747 (0.0%) (0.6%) 3,384 4,129 5,108 4,424 4,819 5,332 9.3% 9.8% DSV A/S 7,639 7,937 8,439 7,896 7,523 7,819 1.1% (0.5%) 498 519 543 486 503 537 (0.8%) 5.2% Echo Global Logistics, Inc. 603 758 884 1,173 1,684 2,255 24.9% 38.6% 23 27 27 36 74 107 16.5% 72.6% Expeditors International of Washington Inc. 6,162 5,992 6,080 6,565 7,089 7,585 2.1% 7.5% 655 571 600 644 731 787 (0.6%) 10.6% FedEx Corporation 39,304 42,680 44,287 45,567 47,609 50,467 5.1% 5.2% 4,506 5,367 6,112 6,417 6,891 7,899 12.5% 10.9% Forward Air Corp. 509 584 652 781 992 1,080 15.4% 17.6% 97 104 107 127 158 184 9.4% 20.7% Hub Group Inc. 2,752 3,124 3,374 3,571 3,673 3,912 9.1% 4.7% 112 134 138 135 123 142 6.4% 2.4% JB Hunt Transport Services Inc. 3,678 4,058 4,527 5,083 6,280 NA 11.4% NA 658 759 830 926 1,056 1,181 12.1% 12.9% Kuehne + Nagel International AG 17,351 18,699 19,290 17,618 21,399 22,623 0.5% 13.3% 1,038 979 1,070 987 1,065 1,116 (1.7%) 6.4% Landstar System Inc. 2,594 2,735 2,628 3,145 3,377 3,620 6.6% 7.3% 204 223 201 250 271 297 6.9% 9.0% Panalpina World Transport Holding Ltd. 6,954 7,227 7,589 6,752 6,877 7,172 (1.0%) 3.1% 220 92 161 150 208 266 (11.9%) 33.1% Roadrunner Transportation Systems, Inc. 844 1,073 1,361 1,873 2,144 2,293 30.5% 10.7% 54 81 99 121 151 169 30.9% 18.4% Ryder System, Inc. 6,051 6,257 6,419 6,639 6,708 7,135 3.1% 3.7% 1,290 1,396 1,459 1,628 1,790 1,946 8.1% 9.3% TransForce Inc. 2,378 2,822 2,620 2,817 3,429 3,518 5.8% 11.8% 313 392 318 361 415 448 4.9% 11.4% United Parcel Service, Inc. 53,105 54,127 55,438 58,232 59,696 62,766 3.1% 3.8% 7,830 3,201 8,868 6,864 9,647 10,333 (4.3%) 22.7% Universal Truckload Services Inc. 991 1,037 1,033 1,192 1,166 1,234 6.3% 1.8% 84 96 105 115 118 129 11.1% 6.1% UTi Worldwide Inc. 4,550 4,914 4,608 4,436 4,284 4,157 (0.8%) (3.2%) 183 213 146 84 96 111 NM 14.6% World Fuel Services Corp. 34,623 38,945 41,562 43,386 31,998 35,056 7.8% (10.1%) 291 287 301 319 362 377 3.0% 8.7% XPO Logistics, Inc. 177 279 702 2,357 6,705 10,617 NM NM 3 (25) (20) 95 381 698 NM NM Total $276,120 $295,078 $306,963 $308,106 $309,181 $323,643 6.4% 6.1% $22,746 $20,009 $27,664 $25,752 $30,591 $33,862 6.9% 14.0% Trucking ArcBest Corporation $1,908 $2,066 $2,300 $2,613 $2,760 $2,941 11.1% 6.1% $82 $70 $104 $155 $190 $216 23.5% 18.1% Celadon Group Inc. 467 475 489 615 888 997 9.6% 27.3% 89 103 106 104 136 158 5.4% 23.3% Con-way Inc. 5,290 5,580 5,473 5,806 5,922 6,252 3.2% 3.8% 386 428 427 493 547 600 8.5% 10.3% Covenant Transportation Group, Inc. 512 527 539 579 736 782 4.2% 16.2% 63 71 65 89 123 133 11.8% 22.4% Heartland Express, Inc. 529 546 582 871 780 832 18.1% (2.3%) 132 138 149 208 240 268 16.3% 13.5% Knight Transportation Inc. 697 752 792 926 1,269 1,406 9.9% 23.2% 169 184 192 239 314 353 12.3% 21.5% Marten Transport Ltd. 604 638 659 673 684 755 3.7% 5.9% 97 101 110 115 139 152 5.9% 15.0% Old Dominion Freight Line Inc. 1,904 2,135 2,338 2,788 3,051 3,409 13.6% 10.6% 326 396 460 587 676 774 21.6% 14.8% P.A.M. Transportation Services, Inc. 284 298 313 317 NA NA 3.7% NA 29 41 50 55 NA NA 23.7% NA Quality Distribution Inc. 628 719 805 854 1,020 1,093 10.8% 13.1% 70 69 72 70 84 92 0.0% 14.7% Saia, Inc. 1,030 1,099 1,139 1,272 1,249 1,348 7.3% 2.9% 65 107 126 145 169 190 30.3% 14.6% Swift Transportation Company 3,779 3,976 4,118 4,299 4,417 4,787 4.4% 5.5% 549 573 577 583 666 742 2.0% 12.8% Universal Truckload Services Inc. 991 1,037 1,033 1,192 1,166 1,234 6.3% 1.8% 84 96 105 115 118 129 11.1% 6.1% USA Truck Inc. 411 512 555 602 589 639 13.6% 3.0% 33 20 35 60 67 74 22.0% 10.7% Werner Enterprises Inc. 2,003 2,036 2,029 2,139 NA NA 2.2% NA 311 318 296 318 380 408 0.7% 13.3% YRC Worldwide Inc. 4,869 4,851 4,865 5,069 5,072 5,294 1.4% 2.2% 49 198 199 197 312 343 NM NM Total $25,905 $27,247 $28,030 $30,615 $29,604 $31,769 7.7% 8.5% $2,536 $2,913 $3,073 $3,532 $4,161 $4,631 13.0% 15.1%

PAGE | 9 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2015

PUBLIC COMPARABLES

Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P Transportation & Logistics Rail and Rail Services American Railcar Industries, Inc. $519 $712 $751 $733 $925 $849 12.2% 7.6% $55 $145 $179 $204 $253 $242 NM 8.8% Canadian National Railway Company 8,881 9,952 9,954 10,478 9,765 10,394 5.7% (0.4%) 4,112 4,624 4,568 4,900 4,721 5,124 6.0% 2.3% Canadian Pacific Railway Limited 4,970 5,568 5,631 5,582 5,320 5,747 3.9% 1.5% 1,378 1,778 2,190 2,434 2,556 2,794 20.9% 7.1% CSX Corp. 11,795 11,763 12,026 12,669 12,185 12,638 2.4% (0.1%) 4,446 4,523 4,577 4,764 4,934 5,265 2.3% 5.1% FreightCar America Inc. 487 677 290 599 745 798 7.1% 15.5% 12 41 (8) 17 36 48 12.2% NM Genesee & Wyoming Inc. 829 875 1,569 1,639 2,075 2,346 25.5% 19.7% 252 277 534 574 609 693 31.6% 10.0% The Greenbrier Companies, Inc. 1,174 1,736 1,685 2,121 2,647 2,830 21.8% 15.5% 97 152 145 237 427 472 34.5% 41.0% Kansas City Southern 2,098 2,239 2,369 2,577 2,473 2,669 7.1% 1.8% 772 872 962 1,106 1,095 1,234 12.7% 5.6% Norfolk Southern Corporation 11,172 11,040 11,245 11,624 10,938 11,469 1.3% (0.7%) 4,082 4,036 4,169 4,522 4,108 4,471 3.5% (0.6%) Trinity Industries Inc. 2,938 3,812 4,365 6,170 7,081 6,872 28.1% 5.5% 575 730 963 1,400 1,566 1,439 34.6% 1.4% Union Pacific Corporation 18,508 19,686 20,684 22,560 23,106 24,586 6.8% 4.4% 7,341 8,505 9,223 10,657 10,559 11,519 13.2% 4.0% Westinghouse Air Brake Technologies Corporation 1,968 2,391 2,566 3,044 3,363 3,627 15.7% 9.1% 334 436 485 588 670 743 20.8% 12.4% Total $65,339 $70,451 $73,136 $79,795 $80,623 $84,825 11.5% 6.6% $23,455 $26,119 $27,987 $31,403 $31,533 $34,043 17.5% 8.8% Marine Aegean Marine Petroleum Network Inc. $6,965 $7,259 $6,335 $6,662 $4,297 $5,037 (1.5%) (13.0%) $75 $85 $75 $98 $134 $149 9.1% 23.4% Costamare Inc. 382 386 414 484 490 513 8.2% 3.0% 236 238 258 318 334 354 10.4% 5.6% Diana Shipping Inc. 256 221 164 176 163 187 (11.8%) 3.1% 166 124 53 50 35 43 (32.9%) (6.9%) Kirby Corporation 1,850 2,113 2,242 2,566 2,268 2,376 11.5% (3.8%) 445 509 582 647 583 627 13.3% (1.5%) Matson, Inc. 1,463 1,560 1,637 1,714 1,896 2,082 5.4% 10.2% 142 175 172 203 244 275 12.8% 16.4% Neptune Orient Lines Limited 9,211 9,512 8,831 8,617 6,945 6,868 (2.2%) (10.7%) (90) 96 131 294 478 544 NM NM Nordic American Tankers Limited 95 131 244 351 283 255 NM NM 10 13 (21) 60 219 186 NM 76.5% Rand Logistics, Inc. 98 109 119 129 149 152 9.9% 8.3% 16 28 25 29 35 36 23.3% 11.0% SEACOR Holdings Inc. 1,032 1,308 1,247 1,319 1,199 1,322 8.5% 0.1% 155 164 197 245 199 248 16.4% 0.6% Wilh. Wilhelmsen ASA 309 395 325 285 2,488 2,571 NM NM 147 227 154 140 453 447 NM NM Total $21,661 $22,993 $21,559 $22,303 $20,178 $21,361 3.5% (0.4%) $1,301 $1,658 $1,627 $2,083 $2,713 $2,911 7.5% 15.6% Transportation Equipment Accuride Corp. $805 $795 $643 $705 $750 $755 (4.3%) 3.4% $74 $65 $43 $75 $90 $94 0.2% 12.4% Dana Holding Corporation 7,544 7,224 6,769 6,617 6,360 6,702 (4.3%) 0.6% 720 753 706 705 740 797 (0.7%) 6.3% Gentherm Incorporated 370 555 662 811 907 1,028 30.0% 12.5% 46 67 84 135 151 181 42.6% 16.0% Spartan Motors Inc. 426 471 470 507 535 570 6.0% 6.1% 14 16 6 9 11 16 (12.6%) NM Wabash National Corp. 1,187 1,462 1,636 1,863 2,024 1,996 16.2% 3.5% 33 108 142 161 200 200 NM 11.6% Total $10,331 $10,506 $10,179 $10,504 $10,576 $11,050 8.7% 5.2% $888 $1,008 $981 $1,084 $1,191 $1,288 7.4% 11.6%

PAGE | 10 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2015

TRANSPORTATION & LOGISTICS

SOURCES

1. Capital IQ.

2. MergerMarket.

DISCLOSURES

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