Transportation & Logistics

TRANSPORTATION & LOGISTICS

INDUSTRY UPDATE │ JUNE 2017

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0 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JUNE 2017

WHAT WE’RE READING

CONTENTS LOGISTICS | FORTUNE 500 HIGHLIGHTS E-COMMERCE LOGISTICS IMPACT . M&A TRANSACTIONS This year’s Fortune 500 list of largest US publicly owned companies, released June . PUBLIC MARKETS OVERVIEW 7, underscores a growing rift in the transportation sector: Those companies . STOCK PRICE PERFORMANCE involved in e-commerce, last-mile delivery, and supply-chain solutions continue to . OUR GROUP grow faster than traditional freight-moving competitors. That is a sign of the growing impact of what is been called the “Amazon Effect” on distribution and order fulfillment, and greater specialization in last-mile and dedicated transportation. It also reaffirms those more dependent on traditional freight CONTACTS markets suffered as those markets stagnated in 2016. That shift is likely to touch more of the Fortune 500 transport operators in 2017. UNITED STATES Journal of Commerce Frank Mountcastle TRUCKING | TRUCKERS STRUGGLE WITH CHOPPY FREIGHT DEMAND Managing Director [email protected] Freight demand has not been as robust as executives expected. While freight +1 (804) 915-0124 volumes and rates are rising modestly, more freight is being diverted through e- Jason Bass commerce channels. That’s to the chagrin of traditional truckload haulers, as Managing Director online shopping and "free shipping" continue to grow. Some evidence for an [email protected] overall freight buildup comes from the Cass Freight Index, a barometer of freight +1 (804) 915-0132 demand and expenditures. It rose 3.7 percent in April from March and 4 percent Joe Conner on a year-over-year. Spot market dry van truckloads also rose in May, before the Managing Director Memorial Day holiday. The Cass Shipper Expenditures Index rose 3.1 percent from [email protected] March and 6 percent from a year ago, reflecting in part higher fuel surcharges. +1 (804) 915-0151 Logistics Management Jeff Burkett Director [email protected] MARINE | MERGERS, MEGA-SHIPS WEIGH ON PORT PROFITS +1 (804) 932-1334 The forecasted 4 percent growth in global container terminal throughput in 2017 is Jershon Jones expected to hold into 2018 on the back of a strengthening global economic Director outlook led by the United States and emerging markets, according to shipping [email protected] consultants Drewry, but ports and terminal operators expect less shipping lines and +1 (804) 932-1356 greater infrastructure demands will be a drag on profits. Throughput at a sample of Jeff Kidd global ports selected by the London-based company grew by 3.6 percent year Vice President over year in the first quarter, a significant pick up from the 2.1 percent achieved in [email protected] the final quarter of 2016. +1 (804) 915-0178 Journal of Commerce James O’Malley Vice President [email protected] RAIL | RAIL FREIGHT POSTS STEADY GAINS +1 (804) 915-0165 Energy carloads showed two sides of the same coin for the week of June 10 as coal continued to climb while petroleum shipments were weaker on-year. Total U.S. weekly rail traffic was 545,317 carloads and intermodal units, up 6.2% for the week ending June 10 compared with the same week in 2016, according to the EUROPE Association of American Railroads. Traffic totaled 265,717 carloads, up 7.1%, while intermodal volume was 279,600 containers and trailers, up 5.3%. Jeffery Perkins RailwayAge Managing Director [email protected] +49 (0) 69 3650638 00 AIR | AIRPORTS AROUND THE WORLD REGISTER STRONG FIRST-QUARTER

More evidence is in that air freight demand has turned the corner, and the question now is how long the demand will last. Airports Council International (ACI), the trade association of the world’s airports registered freight volumes rising by 8.3 percent, year-over-year in the first quarter of 2017 and 10.9 percent for the month of March. Rising demand for airfreight increased in conjunction with an increase in export orders and inventory build-ups in key markets. Air Cargo World

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PAGE | 1 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JUNE 2017

M&A TRANSACTIONS(1,2,3)

RECENT M&A TRANSACTIONS

Date Sector Target Business Description Acquirer 6/16/2017 Logistics Worthington Logistics Provides freight brokerage services. GlobalTranz Enterprises Solutions Inc.

6/15/2017 Logistics Partner Logistics Operates six cold storage facilities in the UK, Netherlands and Lineage Logistics, LLC Belgium.

6/13/2017 Marine Stewart & Stevenson Designer, manufacturer and distributor of specialized equipment for Kirby Corporation the oil and gas, marine, construction, power generation, transportation, mining and agricultural industries. 6/2/2017 Logistics Dedicated Logistics Provides warehousing services under Radiant’s Service by Air brand. Radiant Logistics, Inc. Technologies

5/30/2017 Trucking Estenson Logistics Provides dedicated contract transportation services. Hub Group, Inc.

5/30/2017 Equipment DexKo Global Manufactures trailer and chassis components. KPS Capital

5/16/2017 Logistics Logistics Planning Provides freight brokerage services. GlobalTranz Enterprises Services Inc.

5/9/2017 Logistics Dicom Transportation - Provides comprehensive warehousing and related delivery services. St. George Logistics Extra Express Division

5/3/2017 Equipment Truck Bodies and Manufactures dump bodies, landscape bodies, grain bodies, Federal Signal Equipment International, platforms, hoists, and truck and trailer equipment and accessories. Corporation Inc. 5/3/2017 Logistics Nightline Logistics Group Provides express delivery services in Ireland. United Parcel Service, Inc.

5/3/2017 Logistics Carelog Freight Services Provides freight forwarding and logistics services focusing the Panalpina World Transport A/S furniture and fashion industry in Denmark. Ltd.

5/3/2017 Logistics Air Connection Provides freight forwarding services in Kenya. Panalpina World Transport Ltd.

5/2/2017 Air GAT Airline Ground Provides outsourced airline services at airports across the United Atlantic Street Capital Support, Inc. States.

5/1/2017 Trucking Big Freight Systems Inc. Provides trucking services in Canada. Daseke, Inc.

5/1/2017 Trucking Schilli Companies Provides trucking services in Indiana. Daseke, Inc.

4/24/2017 Marine Orion Marine Provides project steamship agent and broker services. OL International Holdings Corporation LLC

4/24/2017 Rail Semvac Supplier of sanitary systems to the railway industry. Wabtec Corporation

4/24/2017 Logistics Masterpiece Provides customs brokerage and international logistics services. Magnate Worldwide, LLC International

4/21/2017 Logistics Transportation Provides training, certification, consulting, regulatory, compliance, Hallcon Corporation Certification Services, and staffing for the transit and rail industries. Inc. *Denotes minority investment

PAGE | 2 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JUNE 2017

PUBLIC MARKETS OVERVIEW(1)

TEV / LTM EBITDA TEV / 2017E EBITDA

Rail & Rail Services 11.2x Rail & Rail Services 10.6x

Logistics Providers 10.1x Logistics Providers 9.1x

Marine 9.6x Marine 8.6x

Transportation Transportation 8.5x 7.7x Equipment Equipment

Trucking 7.3x Trucking 6.7x

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

Logistics Providers 7.8% Transportation Equipment 4.7%

Marine 7.3% Logistics Providers 4.2%

Trucking 4.4% Trucking 2.6%

Transportation 4.2% Rail & Rail Services 2.1% Equipment

Marine (4.3%) Rail & Rail Services (0.5%)

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

Transportation Transportation 19.4% 14.1% Equipment Equipment

Rail & Rail Services 6.0% Logistics Providers 12.1%

Logistics Providers 5.3% Trucking 9.4%

Trucking 4.4% Rail & Rail Services 3.3%

Marine (4.3%) Marine 3.3%

PAGE | 3 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JUNE 2017

STOCK PRICE PERFORMANCE(1)

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

Trucking 7.5% Transportation Equipment 39.1%

Rail & Rail Services 3.3% Rail & Rail Services 18.2%

Logistics Providers 1.6% S&P 500 14.8%

S&P 500 1.4% Trucking 11.8%

Transportation Equipment 0.5% Logistics Providers 11.6%

Marine (12.4%) Marine (9.2%)

TRAILING TWELVE MONTHS

(Indexed to June 8th, 2016)

50%

40%

30%

20%

10%

(10%)

(20%)

(30%) Jun-16 Aug-16 Oct-16 Dec-16 Feb-17 Apr-17 Jun-17

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

PAGE | 4 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JUNE 2017

OUR GROUP

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

RECENTLY CLOSED T&L TRANSACTIONS

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

an operating company of is merging with

in a recapitalization by has been acquired by has been acquired by has merged with has been acquired by a portfolio company of and

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

has acquired has been acquired by

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

DEEP EXPERIENCE ACROSS T&L SECTORS

THIRD-PARTY LOGISTICS

RAIL & RAIL SERVICES

MARINE TRANSPORTATION

TRANSPORTATION EQUIPMENT

NICHE TRANSPORTATION

AUTOMOTIVE & HEAVY DUTY VEHICLE

AIR TRANSPORTATION

PAGE | 5 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JUNE 2017

OUR FIRM

Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities. Our clients benefit from our deep-sector experience, integrated industry intelligence and collaboration across the firm, and our commitment to learning what makes them unique. For more information, visit our website at www.harriswilliams.com/industries

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PAGE | 6 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JUNE 2017

PUBLIC COMPARABLES(1)

Stock Performance Stock Price Change from 52-Week TEV / LTM EBITDA as of TEV / EBITDA EBITDA ($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Jun-16 Dec-16 Current 2017E 2018P Transportation & Logistics Logistics Providers Agility Public Warehousing Co. K.S.C. $3,069 $2.42 20.6% 51.6% $2.52 95.8% 6.2x 7.9x 8.6x 7.9x 6.6x Air Transport Services Group, Inc. 1,979 23.07 0.6% 69.0% 24.21 95.3% 6.1x 6.9x 9.6x 7.5x 6.2x Atlas Air Worldwide Holdings, Inc. 3,208 52.50 0.2% 12.7% 60.10 87.4% 11.0x 16.0x 9.2x 7.7x 6.9x C.H. Robinson Worldwide, Inc. 10,510 66.97 (6.3%) (9.1%) 81.16 82.5% 12.1x 12.9x 11.6x 11.7x 11.0x Deutsche Post AG 48,116 35.85 (0.9%) 18.6% 37.01 96.9% 10.8x 8.9x 9.5x 8.2x 7.7x DSV A/S 12,676 61.42 6.2% 32.7% 62.26 98.6% 18.8x 16.1x 18.6x 15.7x 14.5x Echo Global Logistics, Inc 723 19.25 (0.3%) (18.9%) 28.90 66.6% 14.8x 17.1x 17.5x 11.1x 8.8x Expeditors International of Washington, Inc. 8,775 54.52 1.6% 9.4% 57.75 94.4% 10.8x 12.5x 12.3x 12.3x 11.5x FedEx Corporation 67,368 205.84 7.7% 24.9% 206.93 99.5% 9.1x 9.7x 10.1x 7.3x 6.6x Forward Air Corporation 1,597 53.06 3.1% 14.3% 54.73 96.9% 10.6x 10.9x 11.2x 10.4x 9.3x Hub Group, Inc. Class A 1,184 35.25 (5.5%) (13.8%) 52.50 67.1% 8.3x 8.9x 7.5x 8.3x 7.0x J.B. Hunt Transport Services, Inc. 10,819 88.20 0.4% 6.0% 102.38 86.1% 9.7x 11.4x 10.1x 9.9x 8.9x Kuhne & Nagel International AG 18,552 161.92 3.6% 12.5% 164.24 98.6% 15.1x 13.8x 17.1x 15.4x 14.5x Landstar System, Inc. 3,433 84.65 1.6% 25.4% 90.80 93.2% 10.4x 14.4x 13.0x 12.2x 11.1x Panalpina Welttransport (Holding) AG 2,893 138.45 6.2% 11.6% 146.33 94.6% 13.8x 14.2x 17.7x 15.9x 13.1x Roadrunner Transportation Systems, Inc. 662 6.85 3.3% (16.9%) 11.88 57.7% 6.2x 8.7x 7.0x 5.7x 5.2x Ryder System, Inc. 8,765 65.11 (3.9%) (6.7%) 85.42 76.2% 5.5x 5.8x 5.0x 5.1x 4.7x TFI International Inc. 3,212 20.88 1.3% 9.0% 27.30 76.5% 8.0x 10.1x 9.2x 7.7x 7.0x United Parcel Service, Inc. Class B 107,380 106.75 (0.7%) 2.0% 120.44 88.6% 10.7x 11.8x 14.6x 10.2x 9.5x Universal Logistics Holdings, Inc. 646 14.35 6.3% (2.1%) 17.70 81.1% 5.9x 7.3x 8.0x 7.2x 6.5x XPO Logistics, Inc. 12,384 59.42 9.9% 97.8% 60.52 98.2% 13.3x 10.2x 10.3x 9.1x 7.8x Median 1.6% 11.6% 93.2% 10.6x 10.9x 10.1x 9.1x 7.8x Trucking ArcBest Corporation $612 $20.45 11.7% 16.2% $33.95 60.2% 2.8x 6.9x 4.4x 4.0x 3.5x Celadon Group, Inc. 434 2.15 (4.4%) (79.2%) 12.03 17.9% 6.8x 7.2x 5.2x 7.0x 4.6x Covenant Transportation Group, Inc. Class A 539 18.62 5.1% (20.2%) 23.93 77.8% 4.4x 4.7x 4.6x 5.0x 4.5x Heartland Express, Inc. 1,510 20.19 4.0% 7.5% 22.69 89.0% 7.7x 9.4x 8.7x 8.2x 7.7x Knight Transportation, Inc. 2,785 34.80 4.2% 28.9% 38.80 89.7% 7.4x 10.5x 11.3x 11.1x 9.7x Marten Transport, Ltd. 874 26.90 11.6% 34.7% 27.05 99.4% 5.0x 6.5x 6.6x 6.1x 5.6x Old Dominion Freight Line, Inc. 7,777 93.75 9.8% 49.0% 94.97 98.7% 7.9x 11.3x 11.0x 10.5x 9.4x P.A.M. Transportation Services, Inc. 259 18.98 13.7% (4.2%) 28.43 66.8% 4.3x 5.7x 4.8x 4.6x 3.8x Saia, Inc. 1,468 50.50 14.0% 88.6% 50.80 99.4% 5.2x 8.4x 12.3x 8.3x 7.3x Swift Transportation Company Class A 4,202 24.90 4.3% 52.9% 27.18 91.6% 5.6x 8.4x 8.9x 8.2x 7.0x Universal Logistics Holdings, Inc. 646 14.35 6.3% (2.1%) 17.70 81.1% 5.9x 7.3x 8.0x 7.2x 6.5x USA Truck, Inc. 181 6.45 (1.7%) (67.3%) 20.64 31.3% 5.6x 6.1x 8.8x 6.4x 4.4x Werner Enterprises, Inc. 2,186 28.80 8.7% 14.4% 30.20 95.4% 4.8x 6.2x 6.5x 6.2x 5.6x YRC Worldwide Inc. 1,119 10.41 27.7% 9.2% 16.97 61.3% 4.4x 5.2x 4.4x 4.0x 3.4x Median 7.5% 11.8% 85.0% 5.4x 7.0x 7.3x 6.7x 5.6x

PAGE | 7 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JUNE 2017

PUBLIC COMPARABLES(1)

Stock Performance Stock Price Change from 52-Week TEV / LTM EBITDA as of TEV / EBITDA EBITDA ($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Jun-16 Dec-16 Current 2017E 2018P Transportation & Logistics Rail and Rail Services American Railcar Industries, Inc. $1,065 $35.42 (7.8%) (15.5%) $51.10 69.3% 4.7x 6.2x 6.5x 7.2x 7.1x Canadian National Railway Company 68,347 79.40 6.8% 30.5% 79.40 100.0% 11.0x 12.6x 13.5x 12.9x 12.1x Canadian Pacific Railway Limited 29,051 154.61 (0.4%) 13.1% 160.80 96.2% 11.3x 13.0x 11.6x 11.2x 10.6x CSX Corporation 60,033 53.76 3.8% 99.1% 55.06 97.6% 7.6x 10.1x 12.0x 11.6x 10.4x FreightCar America, Inc. 90 16.69 (0.2%) 11.2% 18.19 91.8% 1.4x 4.6x 8.3x 12.9x NM Genesee & Wyoming, Inc. Class A 6,650 64.60 3.2% 0.4% 80.73 80.0% 10.3x 12.0x 11.5x 9.6x 8.9x Greenbrier Companies, Inc. 1,657 46.90 9.5% 54.0% 49.50 94.7% 2.4x 4.0x 4.2x 5.1x 5.7x Kansas City Southern 13,264 98.85 7.5% 6.5% 100.69 98.2% 11.5x 10.5x 11.6x 10.9x 10.1x Norfolk Southern Corporation 44,706 120.43 4.0% 40.1% 125.31 96.1% 8.6x 10.3x 10.7x 10.1x 9.5x Trinity Industries, Inc. 6,566 26.01 (3.4%) 37.3% 30.13 86.3% 3.9x 6.2x 7.1x 8.6x 8.7x Union Pacific Corporation 103,392 109.84 (0.2%) 23.4% 115.15 95.4% 9.0x 11.0x 11.0x 10.3x 9.6x Westinghouse Air Brake Technologies Corporation 9,756 84.89 3.5% 8.6% 89.18 95.2% 11.0x 12.6x 16.1x 14.1x 12.6x Median 3.3% 18.2% 95.3% 8.8x 10.4x 11.2x 10.6x 9.6x Marine Aegean Marine Petroleum Network Inc. $1,078 $5.95 (42.0%) (4.2%) $13.10 45.4% 10.0x 7.3x 10.6x 10.3x 8.5x Costamare Inc. 1,798 6.64 (15.9%) (34.3%) 10.45 63.5% 6.6x 5.5x 5.9x 6.5x 7.0x Diana Shipping Inc. 875 3.86 (3.0%) 49.0% 6.20 62.3% NM NM NM NM 9.9x Kirby Corporation 4,307 67.75 (3.4%) (6.8%) 74.50 90.9% 8.1x 8.7x 9.7x 10.8x 9.1x Matson, Inc. 2,080 30.40 (5.1%) (9.2%) 43.00 70.7% 6.5x 9.2x 9.5x 7.2x 6.7x Nordic American Tankers Limited 1,003 5.94 (12.4%) (62.1%) 16.07 37.0% 7.9x 6.7x 8.8x 10.0x 6.9x Rand Logistics, Inc. 214 0.38 (42.7%) (69.4%) 2.95 12.9% 7.1x 8.2x 7.2x 6.1x NA SEACOR Holdings Inc. 1,357 35.78 (13.2%) (10.2%) 76.32 46.9% 11.0x 15.1x 16.0x 15.7x 11.9x Wallenius Wilhelmsen Logistics ASA 2,276 5.82 13.5% 80.8% 6.04 96.4% 17.2x 12.8x 14.7x 4.8x 5.4x Median (12.4%) (9.2%) 62.3% 8.0x 8.4x 9.6x 8.6x 7.8x Transportation Equipment Dana Incorporated 4,719 21.85 3.8% 77.2% 22.26 98.2% 4.5x 6.0x 7.2x 6.5x 6.0x Gentherm Incorporated 1,475 39.40 5.6% 0.7% 39.85 98.9% 8.8x 8.3x 9.7x 8.9x 8.3x Spartan Motors, Inc. 289 8.65 (2.8%) 36.3% 10.50 82.4% NM NM 16.6x 10.6x 8.2x Wabash National Corporation 1,352 20.91 (4.2%) 42.0% 24.16 86.5% 4.6x 4.2x 6.1x 6.3x 6.7x Median 0.5% 39.1% 92.4% 4.6x 6.0x 8.5x 7.7x 7.5x

PAGE | 8 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JUNE 2017

PUBLIC COMPARABLES(1)

Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) 2013 2014 2015 2016 2017E 2018P '13-16 '16-18P 2013 2014 2015 2016 2017E 2018P '13-16 '16-18P Transportation & Logistics Logistics Providers Agility Public Warehousing Co. K.S.C. $4,846 $4,767 $4,330 NA NA NA NA NA $289 $276 $292 NA NA NA NA NA Air Transport Services Group, Inc. 580 590 619 769 769 1,073 9.9% 18.1% 158 179 198 200 200 311 8.4% 24.6% Atlas Air Worldwide Holdings, Inc. 1,657 1,799 1,823 1,840 1,840 2,217 3.5% 9.8% 292 327 271 349 349 468 6.1% 15.7% C.H. Robinson Worldwide, Inc. 12,752 13,470 13,476 13,144 13,144 15,125 1.0% 7.3% 740 805 925 912 912 957 7.2% 2.4% Deutsche Post AG 73,132 75,117 65,681 63,423 63,423 70,605 (4.6%) 5.5% 3,887 4,812 3,587 5,013 5,013 6,243 8.8% 11.6% DSV A/S 8,137 8,645 7,563 10,066 10,066 11,487 7.3% 6.8% 543 560 532 631 631 874 5.1% 17.7% Echo Global Logistics, Inc 884 1,173 1,512 1,716 1,716 2,101 24.7% 10.6% 34 44 54 48 48 79 12.0% 28.4% Expeditors International of Washington, Inc. 6,080 6,565 6,617 6,098 6,098 6,910 0.1% 6.4% 600 644 767 717 717 763 6.1% 3.1% FedEx Corporation 45,567 47,453 50,365 60,165 63,236 66,052 9.7% 4.8% 6,033 4,951 6,165 8,432 9,290 10,283 11.8% 10.4% Forward Air Corporation 652 781 959 983 983 1,157 14.6% 8.5% 109 128 128 141 141 171 8.9% 10.1% Hub Group, Inc. Class A 3,374 3,571 3,526 3,573 3,573 4,074 1.9% 6.8% 137 136 154 168 168 169 6.9% 0.2% J.B. Hunt Transport Services, Inc. 5,585 6,165 6,188 6,555 6,555 7,779 5.5% 8.9% 825 920 1,054 1,088 1,088 1,207 9.7% 5.3% Kuhne & Nagel International AG 18,529 19,118 17,376 16,774 16,774 22,587 (3.3%) 16.0% 1,028 1,073 1,069 1,084 1,084 1,294 1.8% 9.2% Landstar System, Inc. 2,665 3,185 3,321 3,168 3,168 3,631 5.9% 7.1% 203 251 269 258 258 308 8.3% 9.3% Panalpina Welttransport (Holding) AG 7,289 7,327 6,081 5,274 5,274 5,751 (10.2%) 4.4% 172 218 184 169 169 223 (0.7%) 14.9% Roadrunner Transportation Systems, Inc. 1,361 1,873 1,995 NA 2,044 2,153 NA NA 103 125 130 NA 117 128 NA NA Ryder System, Inc. 6,419 6,639 6,572 6,787 6,787 7,387 1.9% 4.3% 1,361 1,505 1,649 1,738 1,738 1,855 8.5% 3.3% 0 0 0 0 0 0 0 NA NA 0 0 0 0 0 0 NA NA United Parcel Service, Inc. Class B 55,491 58,256 58,050 60,502 60,502 67,416 2.9% 5.6% 8,765 7,991 9,429 7,295 7,295 11,312 (5.9%) 24.5% Universal Logistics Holdings, Inc. 1,033 1,192 1,129 1,073 1,073 1,195 1.3% 5.6% 123 114 108 83 83 100 (12.3%) 9.7% XPO Logistics, Inc. 702 2,357 7,623 14,619 14,619 15,792 NM 3.9% (17) 92 474 1,158 1,158 1,575 NM 16.6% Total $256,738 $270,042 $264,805 $276,528 $281,643 $314,490 4.2% 7.8% $25,386 $25,150 $27,440 $29,485 $30,460 $38,317 5.3% 12.1% Trucking ArcBest Corporation $2,300 $2,613 $2,667 $2,700 $2,700 $2,992 5.5% 5.3% $107 $154 $167 $139 $139 $181 9.3% 13.8% Celadon Group, Inc. 614 742 901 1,065 1,065 1,097 20.2% 1.5% 99 87 117 109 109 95 3.2% (7.0%) Covenant Transportation Group, Inc. Class A 685 719 724 671 671 736 (0.7%) 4.7% 63 89 143 122 122 119 24.2% (1.2%) Heartland Express, Inc. 582 871 736 613 613 578 1.7% (2.9%) 149 208 193 182 182 197 7.0% 4.1% Knight Transportation, Inc. 969 1,102 1,183 1,118 1,118 1,248 4.9% 5.6% 193 256 312 259 259 287 10.4% 5.2% Marten Transport, Ltd. 659 673 665 671 671 769 0.6% 7.0% 110 115 127 130 130 158 5.6% 10.0% Old Dominion Freight Line, Inc. 2,338 2,788 2,972 2,992 2,992 3,498 8.6% 8.1% 466 606 676 690 690 818 14.0% 8.9% P.A.M. Transportation Services, Inc. 403 411 417 433 433 459 2.4% 3.0% 50 55 63 54 54 68 3.0% 12.1% Saia, Inc. 1,139 1,272 1,221 1,218 1,218 1,448 2.3% 9.0% 125 145 155 116 116 199 (2.4%) 30.7% Swift Transportation Company Class A 4,118 4,299 4,229 4,032 4,032 4,335 (0.7%) 3.7% 577 583 611 508 508 588 (4.1%) 7.5% Universal Logistics Holdings, Inc. 1,033 1,192 1,129 1,073 1,073 1,195 1.3% 5.6% 123 114 108 83 83 100 (12.3%) 9.7% USA Truck, Inc. 555 602 508 429 429 446 (8.2%) 2.0% 41 60 56 29 29 42 (10.2%) 19.5% Werner Enterprises, Inc. 2,029 2,139 2,094 2,009 2,009 2,191 (0.3%) 4.4% 295 316 393 336 336 391 4.5% 7.9% YRC Worldwide Inc. 4,865 5,069 4,832 4,698 4,698 5,137 (1.2%) 4.6% 205 197 259 270 270 331 9.6% 10.7% Total $22,289 $24,492 $24,279 $23,721 $23,721 $26,128 2.6% 4.4% $2,603 $2,984 $3,380 $3,029 $3,029 $3,572 4.4% 9.4%

PAGE | 9 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JUNE 2017

PUBLIC COMPARABLES(1)

Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) 2013 2014 2015 2016 2017E 2018P '13-16 '16-18P 2013 2014 2015 2016 2017E 2018P '13-16 '16-18P Transportation & Logistics Rail and Rail Services American Railcar Industries, Inc. $751 $733 $889 $639 $639 $414 (5.2%) (19.5%) $179 $204 $272 $182 $182 $151 0.6% (9.0%) Canadian National Railway Company 10,263 10,986 9,857 9,085 9,085 10,419 (4.0%) 7.1% 4,710 5,137 5,021 4,934 4,934 5,643 1.6% 6.9% Canadian Pacific Railway Limited 5,952 5,994 5,246 4,704 4,704 5,178 (7.5%) 4.9% 2,340 2,640 2,431 2,414 2,414 2,762 1.0% 7.0% CSX Corporation 12,026 12,669 11,811 11,069 11,069 11,987 (2.7%) 4.1% 4,534 4,764 4,792 4,805 4,805 5,757 2.0% 9.5% FreightCar America, Inc. 290 599 773 524 524 328 21.7% (20.8%) (4) 17 51 14 14 (1) NM NA Genesee & Wyoming, Inc. Class A 1,569 1,639 2,000 2,002 2,002 2,295 8.5% 7.1% 533 579 586 554 554 750 1.3% 16.4% Greenbrier Companies, Inc. 1,755 2,203 2,605 2,681 2,681 1,958 15.2% (14.5%) 143 237 430 458 458 295 47.5% (19.8%) Kansas City Southern 2,369 2,577 2,419 2,397 2,397 2,661 0.4% 5.4% 962 1,106 1,098 1,121 1,121 1,308 5.2% 8.0% Norfolk Southern Corporation 11,245 11,624 10,511 9,888 9,888 10,934 (4.2%) 5.2% 4,173 4,526 3,938 4,131 4,131 4,724 (0.3%) 6.9% Trinity Industries, Inc. 4,365 6,170 6,393 4,588 4,588 3,665 1.7% (10.6%) 963 1,402 1,528 1,008 1,008 761 1.5% (13.1%) Union Pacific Corporation 21,963 23,988 21,813 19,941 19,941 22,021 (3.2%) 5.1% 9,223 10,657 10,064 9,310 9,310 10,732 0.3% 7.4% Westinghouse Air Brake Technologies Corporation 2,566 3,044 3,308 2,931 2,931 4,237 4.5% 20.2% 489 588 701 572 572 774 5.4% 16.3% Total $75,115 $82,227 $77,625 $70,448 $70,448 $76,098 2.1% (0.5%) $28,243 $31,857 $30,912 $29,502 $29,502 $33,654 6.0% 3.3% Marine Aegean Marine Petroleum Network Inc. $6,335 $6,662 $4,232 $4,076 $4,076 $6,165 (13.7%) 23.0% $84 $54 $81 $101 $101 $126 6.4% 11.5% Costamare Inc. 414 484 490 468 468 386 4.2% (9.2%) 267 330 325 317 317 253 5.9% (10.7%) Diana Shipping Inc. 164 176 158 114 114 214 (11.4%) 36.8% 55 52 28 (12) (12) 92 NM NA Kirby Corporation 2,242 2,566 2,148 1,771 1,771 2,221 (7.6%) 12.0% 582 663 595 471 471 444 (6.8%) (2.9%) Matson, Inc. 1,637 1,714 1,885 1,942 1,942 2,097 5.8% 3.9% 182 203 298 238 238 305 9.4% 13.2% Nordic American Tankers Limited 244 351 446 357 357 261 13.6% (14.6%) (7) 74 211 139 139 136 NM (1.1%) Rand Logistics, Inc. 156 153 148 115 118 NA (9.6%) NA 33 34 32 32 35 NA (1.1%) NA SEACOR Holdings Inc. 1,247 1,319 1,055 831 831 820 (12.7%) (0.7%) 197 245 150 95 95 114 (21.7%) 9.8% Wallenius Wilhelmsen Logistics ASA 325 285 313 257 257 NA (7.5%) NA 170 134 186 80 80 432 (22.3%) NM Total $12,764 $13,710 $10,874 $9,932 $9,935 $12,163 (4.3%) 7.3% $1,562 $1,789 $1,906 $1,460 $1,464 $1,902 (4.3%) 3.3% Transportation Equipment Dana Incorporated 6,769 6,617 6,060 5,826 5,826 6,632 (4.9%) 6.7% 706 705 618 612 612 779 (4.7%) 12.8% Gentherm Incorporated 662 812 856 918 918 1,069 11.5% 7.9% 83 135 155 146 146 180 20.5% 11.2% Spartan Motors, Inc. 470 507 550 591 591 691 8.0% 8.2% 6 10 0 18 18 36 42.4% 40.7% Wabash National Corporation 1,636 1,863 2,027 1,845 1,845 1,637 4.1% (5.8%) 142 161 218 241 241 202 19.2% (8.4%) Total $9,536 $9,799 $9,494 $9,180 $9,180 $10,028 4.7% 4.2% $938 $1,012 $991 $1,017 $1,017 $1,197 19.4% 14.1%

PAGE | 10 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JUNE 2017

TRANSPORTATION & LOGISTICS

SOURCES

1. FactSet.

2. MergerMarket.

3. Pitchbook.

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