TRUCKING & LOGISTICS REPORT THIRD QUARTER 2019

Bridgepoint Investment Banking is a division of Bridgepoint Holdings, LLC. Securities offered through an unaffiliated entity, M&A Securities Group, Inc., member FINRA/SIPC. This entity is not affiliated or associated with, authorized or sponsored by Bridgepoint Advisers Limited TRUCKING & LOGISTICS INDUSTRY UPDATE Q3 2019 bridgepointib.com BRIDGEPOINT INSIGHTS Volatility in the Truckload Freight Market; Stability on the Horizon

EXECUTIVE SUMMARY BIG PICTURE Trucking company median EBITDA Trucking company valuations and valuation multiples are currently at earnings are highly cyclical due to the 6.3x, near historical norms and well in nature of the industry and general excess of trough levels macroeconomic factors as well as Year-over-year truckload demand specific business characteristics has remained static, but carriers added too much capacity to capture the peak freight rates in 2018. Spot Cycle timing is critical to maximize market rates declined rapidly as a transaction value. Recent decline of 3.1x result while contract rates remained (32.6%) of public trucking companies’ flat – capacity utilization has receded, median TEV / EBTIDA multiple since and the driver shortage has increased September 2018 indicates that the slightly industry remains in the late stages of the Though there was solid growth with cycle private fleets, many for-hire trucking firms were down in the first-half of 2019, particularly small companies Bridgepoint Investment Banking advises trucking company owners seeking near- The Federal Motor Carrier Safety Administration (FMCSA) has proposed term liquidity or growth financing that it is changes to the hours-of-service imperative to consider exploring requirements which will impact monetization, financing and other capacity and rates in 2020 strategic options

Trucking & Logistics Valuation Cycle LTM TEV / EBITDA LTM TEV / Revenue 13.0x Current Median 6.3x 0.95x Historical Median 7.0x 0.86x 12.0x 1.70x Historical Peak 10.5x 1.24x 11.0x Historical Trough 4.9x 0.49x 1.50x TEV / RevenueTEV / 10.0x 1.30x 9.0x 8.0x 1.10x 7.0x 0.90x TEV / LTM EBITDA 6.0x 0.70x 5.0x 4.0x 0.50x Apr-11 Oct-11 Apr-17 Apr-12 Oct-17 Apr-13 Apr-19 Apr-10 Apr-15 Apr-14 Apr-16 Apr-18 Oct-12 Oct-13 Oct-19 Oct-10 Oct-15 Oct-14 Oct-16 Oct-18 Oct-07 Apr-09 Apr-08 Oct-09 Oct-08

Median TEV / EBITDA Historical TEV / EBITDA

Median TEV / Revenue Historical TEV / Revenue

Note: Composite composed of selected public comparables as listed on page 3. Source: Bridgepoint Investment Banking, Capital IQ, IBISWorld Bridgepoint Investment Banking is a division of Bridgepoint Holdings, LLC. Securities offered through an unaffiliated entity, M&A Securities Group, Inc., member FINRA/SIPC 1 TRUCKING & LOGISTICS INDUSTRY UPDATE Q3 2019 bridgepointib.com BRIDGEPOINT INSIGHTS

National Average Spot Rates 2019 Van and Reefer Spot Rates Begin to Improve as Holiday Freight Starts to Move

VAN FLATBED REEFER

$2.16 $1.84 $2.20 $2.20

$2.14 $2.17 $1.82 $1.81 $2.12 $2.13 $2.11 $1.80

Aug. Sept. Oct. Nov. Aug. Sept. Oct. Nov. Aug. Sept. Oct. Nov.

Source: DAT Industry Trends

Key Business Considerations KEY TRUCKING & LOGISTICS TRENDS VALUATION CONSIDERATIONS . Carriers will reduce fleet size to mitigate Smaller fleets that have exposure to spot rates are losses and many small fleets will at risk in the next 12-18 months with numerous experience significant pressure defaults already in 2019. Spot market rates have remained negative year-over-year and are No freight recession has lasted more expected to soften in Q4 2019 than 18 months and the freight market . ELDs represent a real value-add for companies that should be in full recovery by Q1 2020 have successfully transitioned and historically Drug & alcohol clearinghouse mandate utilized electronic logs and generated data in effect Jan. 2020 – will decrease . Firms registering their drivers with the new FMCSA capacity and put pressure on spot rates Drug & Alcohol Clearinghouse will be seen to have a value-add due to governmental compliance New trucking technology driving firms to . invest to retain their competitive edge Companies that have stable, robust EBITDA and and driver base cash flow generation will be prime targets for larger strategic acquirors . Driver pay expected to continue to Industry-wide driver shortage heightens focus on increase in order to attract and retain quality of drivers, driver retention rates and safety younger drivers history . Innovative, experienced and well-connected Contracted business has remained management teams are highly sought after in the healthy in 2019 – decline in prices, but trucking & logistics industry less than the spot market . Diversified and tenured customer base will garner The continued rise of e-commerce will higher valuations, especially those in recession ultimately lead to continued expansion resistant end markets / niches of the trucking industry

Source: Bridgepoint Investment Banking, Capital IQ, Bank of America Merrill Lynch, DAT, FRED St. Louis Fed 2 TRUCKING & LOGISTICS INDUSTRY UPDATE Q3 2019 bridgepointib.com BRIDGEPOINT INSIGHTS Selected Public Comparables ($ in millions, except per share data) 10/11/2019 Equity Enterprise P / E TEV / Revenue TEV / EBITDA TEV / EBIT Company Name Country Share Price Value Value LTM LTM LTM LTM ArcBest Corporation United States $28.81 $735.2 $790.9 9.0x 0.26x 3.6x 6.9x Covenant Transportation Group, Inc. United States $15.85 $292.6 $587.0 7.6x 0.62x 4.1x 9.1x Heartland Express, Inc. United States $21.64 $1,774.0 $1,568.3 22.1x 2.70x 9.1x 20.5x J.B. Hunt Transport Services, Inc. United States $110.35 $11,781.9 $13,270.5 25.6x 1.49x 11.6x 19.6x Knight- Holdings Inc. United States $36.12 $6,158.9 $7,238.5 14.8x 1.40x 7.2x 13.0x Landstar System, Inc. United States $114.03 $4,519.0 $4,384.9 17.8x 0.98x 11.6x 13.1x Marten Transport, Ltd. United States $21.21 $1,158.8 $1,077.0 19.6x 1.32x 6.7x 15.3x Old Dominion Freight Line, Inc. United States $171.00 $13,681.1 $13,565.6 21.7x 3.28x 12.3x 15.8x P.A.M. Transportation Services, Inc. United States $64.98 $374.1 $572.9 12.1x 1.06x 5.6x 11.5x Holding, Inc. United States $17.91 $60.0 $39.5 27.2x 0.35x 4.4x 147.9x Roadrunner Transportation Systems, Inc. United States $9.96 $374.9 $762.9 NM 0.37x NM NM , Inc. United States $95.56 $2,452.1 $2,704.4 22.3x 1.58x 10.3x 17.8x , Inc. United States $22.15 $3,923.1 $4,003.0 17.3x 0.80x 6.2x 11.3x TFI International Inc. Canada $30.81 $2,542.4 $4,244.2 11.0x 1.08x 7.7x 12.3x Universal Logistics Holdings, Inc. United States $24.15 $658.9 $1,094.6 11.2x 0.72x 6.4x 10.1x USA Truck, Inc. United States $7.94 $66.1 $258.7 6.6x 0.48x 5.1x 13.4x , Inc. United States $35.21 $2,436.4 $2,788.1 13.8x 1.12x 5.9x 11.8x XPO Logistics, Inc. United States $74.04 $6,825.1 $14,401.1 26.0x 0.84x 9.2x 17.0x YRC Worldwide Inc. United States $3.58 $129.9 $1,222.5 NM 0.24x 6.0x 23.1x Sub-$1bn TEV Total P / E TEV / Revenue TEV / EBITDA TEV / EBIT P / E TEV / Revenue TEV / EBITDA TEV / EBIT High 28.3x 1.25x 6.3x 157.2x High 28.3x 3.17x 11.9x 157.2x Mean 13.1x 0.62x 5.2x 30.6x Mean 16.3x 1.06x 7.2x 21.8x Median 10.7x 0.48x 5.3x 12.3x Median 16.7x 0.95x 6.3x 13.0x Low 6.4x 0.24x 3.5x 6.7x Low 6.4x 0.24x 3.5x 9.8x Selected Recent Industry Transactions Date Announced Target Acquiror 08/30/2019 Twin Eagle Transport Badlands Tank Lines 08/26/2019 Mills Transfer, Inc. Heartland Express, Inc. (NASDAQ:HTLD) Transactions by 07/31/2019 Wayne T. Fellows, Inc. / Fellows Truck Brothers, Inc. Kottke Trucking, Inc. Acquiror Type 07/29/2019 Piston Tank Corporation TFI International Inc. (TSX:TFII) 07/22/2019 Logicorp Enterprises, LLC Outwest Express, LLC YTD 2019 07/11/2019 Carlisle Carrier Corporation Cowan Systems, LLC 05/13/2019 Jetco , Inc. The GTI Group 05/04/2019 Maverick USA, Inc. KLLM Transport Services, Inc. 04/25/2019 Brookfield RPS Limited Relo Group, Inc. (TSE:8876) 04/22/2019 Michael's Cartage, Inc. Mason Dixon Intermodal, Inc. 04/02/2019 Sterling Transport Co, Inc. Grammer Industries, Inc. 23% 04/01/2019 Aulick Leasing TFI International Inc. (TSX:TFII) 02/28/2019 Riechmann Transport, Inc. PS Logistics, LLC 02/25/2019 Schilli Corporation TFI International Inc. (TSX:TFII) 01/21/2019 Reliable Source Logistics LLC Fitzmark, Inc. 01/21/2019 J&B Express LLC Kuhlhaus Logistics Systems 01/09/2019 All Assets of Joseph Cory Warehouses, Inc. J.B. Hunt Transport, Inc. 12/07/2018 Deco Logistics, Inc./Oaktree Logistics, Inc. Mason Dixon Intermodal, Inc. 11/05/2018 CaseStack, Inc. Hub Group, Inc. (NasdaqGS:HUBG) 10/25/2018 J & B Services, Inc. Milan Supply Chain Solutions 10/24/2018 Martin Transport, Inc. Martin Operating Partnership L.P. Davis Transfer Company Inc./Davis Transfer 77% 10/18/2018 USA Truck, Inc. (NasdaqGS:USAK) Logistics Inc./B & G Leasing, L.L.C. 10/18/2018 American Fast Freight, Inc. Odyssey Logistics & Technology Corporation Southern Counties Express, Inc./Aquarius 08/10/2018 Mason Dixon Intermodal, Inc. Financial, Inc. Strategic 08/08/2018 Capstan Hauling Ltd. ENTREC Corporation (TSX:ENT) 07/25/2018 Dacota Freight Services Ltd. Hi-Way 9 Group of Companies EVO Transportation & Energy Services, Inc. Financial / Private Equity 06/07/2018 Thunder Ridge Transport, Inc. (OTCPK:EVOA) 02/07/2018 Marshall Trucking Inc. Mullen Trucking Corp. 02/02/2018 Fore Transportation, Inc. Universal Logistics Holdings, Inc. (NasdaqGS:ULH)

Source: Bridgepoint Investment Banking, Capital IQ 3 TRUCKING & LOGISTICS INDUSTRY UPDATE Q3 2019 SECTORS EXECUTIVE SUMMARY

Sector-focused trucking, transportation and vehicular boutique investment bank focused on the middle market INDUSTRIALS & TRANSPORTATION Deep sector experience, completing more than $50 billion of transactions in the trucking, transportation and vehicular space Member of numerous state and national trucking associations CONSUMER & RETAIL Full-service investment banking capabilities spanning sell-side M&A, buy-side M&A and a market-leading leveraged finance practice Tenacious, creative and results-oriented boutique investment bank focused on HEALTHCARE impact and value creation for the companies we serve Confidential, independent and unconflicted capital solutions and strategic advice SOFTWARE & TECHNOLOGY SELECTED BRIDGEPOINT TRANSACTION EXPERIENCE

Has been acquired by

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USD 30 million USD 375 Million Debt capital raise to support acquisition and Senior secured credit global financing facilities/senior notes Sole Financial Advisor

Buy-side M&A Advisor

Has been acquired by Has been acquired by

Sole Financial Advisor Sole Financial Advisor

SENIOR LEADERSHIP

Matt Plooster Wm. Lee Merritt Gary Grote Mike Anderson Managing Managing Managing Managing Director Director Director Director

Adam Claypool Joe Liss Natasha Subhash Managing Managing Plooster Marineni Director Director COO Vice President

Lincoln Omaha Des Moines Denver Chicago

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