Transportation & Logistics Industry Update

TRANSPORTATION & LOGISTICS

INDUSTRY UPDATE │ JANUARY 2017

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0 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JANUARY 2017

WHAT WE’RE READING

CONTENTS LOGISTICS | ONLINE HOLIDAY SHOPPING DRIVES RECORD RETURNS . M&A TRANSACTIONS Ecommerce sales are causing a record in returns. National Returns Day, January 5, . PUBLIC MARKETS OVERVIEW will reach a new peak, according to UPS. Holiday shoppers are projected to . STOCK PRICE PERFORMANCE return 1.3 million packages with UPS on National Returns Day and more than 5.8 . OUR GROUP million packages during the first full week of January 2017. In 2016, shoppers returned more than 1 million packages on National Returns Day and 5 million packages during the peak returns week. The process of returning packages has seen improvement, according to the UPS Pulse of the Online Shopper study. CONTACTS Material Handling & Logistics UNITED STATES TRUCKING | TRUCKLOAD SPOT RATES SHOW TRUCKING INDUSTRY REBOUND Frank Mountcastle An index that measures truckload pricing showed that spot rates continue to Managing Director exceed contract rates, which analysts predict will result in a rebound in the [email protected] industry in 2017. The Cowen-Chainalytics Freight Indices report, distributed by +1 (804) 915-0124 Cowen analyst Jason Seidl, showed that dry-van spot rates were 4.5% higher than Jason Bass contract rates late November, which was the biggest gap of 2016. “The trend may Managing Director be because of capacity constraints related to the peak shipping season,” Seidl [email protected] explained in the report. “Notably, we did not see this type of activity last year in +1 (804) 915-0132 the dry-van market.” Joe Conner Transport Topics Managing Director [email protected] MARINE | SHIPPING ALLIANCES SHORE UP INDUSTRY, UNSETTLE CUSTOMERS +1 (804) 915-0151 Jeff Burkett A tumultuous year in the container-shipping industry, which included one big Director operator going under and others bundling together to stay afloat, ended with [email protected] three major alliances poised to dominate ocean trade for years to come. +1 (804) 932-1334 Container shipping, which moves 95% of all manufactured goods, is estimated by industry executives to be worth $1 trillion a year. Traditionally controlled by Jershon Jones sovereign-wealth funds and deep-pocketed individuals, it has been a fragmented Director [email protected] industry over the past 30 years, with dozens of operators regularly undercutting +1 (804) 932-1356 each other on price. But overcapacity and sluggish global trade have forced the biggest players to merge or form alliances, allowing them to cut operating costs Jeff Kidd by hundreds of millions of dollars by sharing ships and port calls. Vice President [email protected] Wall Street Journal +1 (804) 915-0178 RAIL | GLOBAL RAIL LOGISTICS TO SURPASS $210 BILLION BY 2021 James O’Malley Vice President According to the latest market study released by Technavio, the global rail [email protected] logistics market is expected to grow at a compound annual growth rate (CAGR) +1 (804) 915-0165 of nearly four percent between 2017 and 2021. This research report provides an analysis of the market in terms of revenue and emerging market trends and includes analysis and forecasts for various market segments and all geographical regions. The important market drivers responsible for the growth of the global rail EUROPE logistics market are the increased efficiency of rail freight over truck freight, reduction in traffic and road congestion on highways, and growth of rail Jeffery Perkins intermodal transportation. Managing Director Global Trade Magazine [email protected] +49 (0) 69 3650638 00 AIR | AIR CARGO SURGE COULD CONTINUE THROUGH 2017

Global air freight traffic increased 6.8% in November from a year earlier, driven by strong growth in most regions, particularly Europe, and could continue rising through 2017, the International Air Transport Association said. The uptick in growth coincides with an increase in the shipment of silicon materials used in high-value consumer electronics products shipped by air and an “apparent” turnaround in new export orders, IATA said. The modal shift to air cargo following the collapse of Sout Korean container line Hanjin Shipping in August may have also contributed to the increase in demand for air cargo. Journal of Commerce www.harriswilliams.com

PAGE | 1 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JANUARY 2017

M&A TRANSACTIONS

RECENT M&A TRANSACTIONS1,2

Date Sector Target Business Description Acquirer 1/17/2017 Logistics Worldwide Express Provides non-asset based third party logistics solutions to small and Ridgemont Equity Partners medium sized businesses.

1/13/2017 Transportation Randall Manufacturing Manufactures specialty products used primarily in refrigerated semi- Safe Fleet Equipment LLC trailers in connection with the transportation of food and beverages.

1/10/2017 Logistics Global Freight Source Provides logistics and freight forwarding services. GlobalTranz Enterprises Inc. Inc.

1/9/2017 Logistics Freightex Ltd. Provides cross-channel and international freight, freight prices, and United Parcel Service, truck capacity across Europe. Inc.

1/9/2017* Rail RailPros Offers construction/project management, railroad coordination, Bow River Capital training and inspections. Partners

1/5/2017 Logistics Lomas Logistics, Inc. Provides logistics, packaging, warehousing, and storage services. Radiant Logistics, Inc.

1/5/2017 Logistics C&S Carpet Distribution, Provides delivery services for manufacturers of carpet and floor Best Services Group, Inc. Inc. coverings.

1/4/2017 Logistics Elite Express Provides less-than truckload, truckload and temperature-controlled Linx Partners freight services.

1/4/2017 Transportation NEBR Provides mass transit repair and maintenance services. Linx Partners Equipment

1/4/2017 Logistics TTS, LLC Provides multimodal, agent-based freight management services. Sunteck Transport Group

1/3/2017 Air PEMCO World Air Provides aircraft maintenance and engineered services to Air Transport Services Services, Inc. commercial air carriers. Group, Inc.

12/29/2016 Logistics National Fast Freight, Offers less than truckload shipping services throughout Canada. TransForce, Inc. Inc.

12/22/2016 Trucking Daseke, Inc. Provides trucking and logistics services. Hennessy Capital Acquisition Corp. II

12/22/2016 Trucking Interide Transportation Provides refrigerated food transportation throughout the western KJM Capital LLC LLC United States.

12/22/2016 Trucking Blue Sky Logistics LLC Operates dry van and refrigerated trucks in the western United KJM Capital LLC States.

12/21/2016 Logistics Continental Traffic Provides supply chain management solutions. BlueGrace Logistics Company

12/20/2016 Rail Workhorse Rail LLC Engages in the manufacture and supply of freight car parts. Westinghouse Air Brake Technologies Corporation

12/12/2016 Marine Pentalver Transport Operates off-dock container terminals. Genesee & Wyoming Inc. Limited

12/8/2016 Logistics JS Logistics Provides product, storage, distribution and on-demand rush delivery USPack Logistics services. *Denotes minority investment

PAGE | 2 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JANUARY 2017

PUBLIC MARKETS OVERVIEW

TEV / LTM EBITDA TEV / 2017E EBITDA

Logistics Providers 10.6x Logistics Providers 9.3x

Rail & Rail Services 10.2x Rail & Rail Services 9.3x

Marine 8.8x Marine 7.9x

Transportation Trucking 6.5x 7.2x Equipment Transportation 5.9x Equipment Trucking 6.4x

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

Logistics Providers 4.5% Logistics Providers 5.9%

Marine 3.5% Trucking 4.7%

Transportation Transportation 3.0% 2.1% Equipment Equipment

Trucking 2.6% Rail & Rail Services (0.4%)

Rail & Rail Services 1.8% Marine (2.4%)

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

Transportation 14.2% Logistics Providers 10.0% Equipment

Logistics Providers 6.8% Trucking 8.2%

Rail & Rail Services 6.4% Marine 3.6%

Transportation Trucking 6.1% 0.3% Equipment

Marine 5.9% Rail & Rail Services (2.8%)

PAGE | 3 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JANUARY 2017

STOCK PRICE PERFORMANCE

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

Marine 0.5% Transportation Equipment 50.8%

S&P 500 0.4% Rail & Rail Services 33.6%

Transportation Equipment (0.9%) Logistics Providers 27.2%

Rail & Rail Services (1.7%) Trucking 23.4%

Logistics Providers (4.0%) S&P 500 18.0%

Trucking (8.6%) Marine 6.6%

TRAILING TWELVE MONTHS

(Indexed to January 11th, 2016)

70% 65% 60% 55% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% (5%) (10%) (15%) (20%) (25%) (30%) Jan-16 Apr-16 Jul-16 Oct-16 Jan-17

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

PAGE | 4 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JANUARY 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

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an operating company of is merging with

has merged with has been acquired by has been acquired by has been acquired by in a recapitalization 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

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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 │ JANUARY 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

Aerospace, Defense Building Products Business Consumer Energy, Power & Government & Materials Services & Infrastructure Services

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PAGE | 6 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JANUARY 2017

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 Jan-16 Jul-16 Current 2017E 2018P Transportation & Logistics Logistics Providers Agility Public Warehousing Co. K.S.C. $2,666 $2.09 10.1% 42.9% $2.19 95.6% 5.7x 6.6x 8.6x NA NA Air Transport Services Group, Inc. 1,347 15.67 (5.4%) 64.9% 17.29 90.6% 4.6x 6.1x 6.6x 5.0x 4.5x Atlas Air Worldwide Holdings, Inc. 3,022 51.00 (3.4%) 44.8% 57.77 88.3% 8.6x 12.3x 16.0x 6.6x 6.5x C.H. Robinson Worldwide, Inc. 11,454 73.16 (5.0%) 15.9% 77.89 93.9% 10.8x 12.0x 12.3x 12.4x 11.7x Deutsche Post AG 47,312 33.37 5.0% 27.2% 33.86 98.6% 9.8x 8.7x 9.8x 8.5x 8.0x DSV A/S 9,824 45.44 5.8% 17.5% 51.16 88.8% 12.4x 15.8x 16.5x 13.6x 12.1x Echo Global Logistics, Inc 886 24.70 (13.0%) 19.6% 28.90 85.5% 13.4x 13.1x 15.7x 10.6x 9.0x Expeditors International of Washington, Inc. 8,651 53.04 (4.0%) 24.0% 56.37 94.1% 9.6x 10.9x 12.0x 11.6x 10.9x FedEx Corporation 61,820 189.69 (3.5%) 40.8% 201.57 94.1% 8.1x 8.7x 9.6x 6.7x 6.3x Forward Air Corporation 1,500 48.40 (2.3%) 13.3% 50.72 95.4% 10.8x 9.8x 10.6x 9.7x 9.1x Hub Group, Inc. Class A 1,493 44.05 (3.1%) 45.8% 46.15 95.4% 6.7x 7.8x 8.7x 8.9x 8.1x J.B. Hunt Transport Services, Inc. 11,920 96.87 (2.4%) 42.1% 102.38 94.6% 8.5x 9.8x 11.0x 10.2x 9.3x Kuhne & Nagel International AG 15,284 133.39 1.6% 4.0% 147.27 90.6% 13.6x 14.6x 14.0x 13.3x 12.6x Landstar System, Inc. 3,476 83.95 (5.0%) 47.8% 90.80 92.5% 9.2x 11.4x 13.7x 12.8x 12.0x Panalpina Welttransport (Holding) AG 2,572 124.53 1.2% 16.8% 146.33 85.1% 11.7x 13.4x 14.1x 12.2x 10.3x Roadrunner Transportation Systems, Inc. 803 10.53 (8.4%) 17.1% 13.67 77.0% 6.0x 7.8x 8.5x 7.1x 6.4x Ryder System, Inc. 9,458 75.31 (8.4%) 49.0% 85.42 88.2% 4.9x 5.2x 5.5x 5.1x 4.7x TFI International Inc. 3,048 25.45 (4.6%) 52.8% 26.84 94.8% 8.6x 7.8x 9.9x 6.5x 6.3x United Parcel Service, Inc. Class B 111,563 114.77 (4.0%) 25.6% 120.44 95.3% 9.8x 10.9x 11.4x 10.3x 9.8x Universal Logistics Holdings, Inc. 637 14.20 (18.2%) 7.9% 18.31 77.6% 5.5x 5.9x 6.8x 7.3x 6.6x XPO Logistics, Inc. 10,770 43.29 (10.2%) 86.2% 49.86 86.8% 17.5x 9.1x 9.7x 7.9x 6.9x Median (4.0%) 27.2% 92.5% 9.2x 9.8x 10.6x 9.3x 8.6x Trucking ArcBest Corporation $782 $28.05 (13.6%) 50.2% $33.95 82.6% 2.9x 3.1x 5.9x 4.6x 4.3x Celadon Group, Inc. 666 8.25 (9.8%) 4.7% 12.03 68.6% 6.1x 6.1x 6.9x 7.5x 6.3x Covenant Transportation Group, Inc. Class A 557 18.52 (16.3%) 13.0% 25.77 71.9% 3.9x 4.0x 4.3x 4.8x 4.4x Heartland Express, Inc. 1,566 20.00 (6.9%) 24.5% 22.69 88.1% 7.1x 7.6x 8.4x 8.1x 7.4x Knight Transportation, Inc. 2,692 32.70 (9.0%) 48.6% 38.80 84.3% 6.8x 8.3x 10.0x 9.4x 8.5x Marten Transport, Ltd. 759 22.95 (12.4%) 41.8% 27.05 84.8% 4.6x 5.4x 5.8x 5.4x 5.1x Old Dominion Freight Line, Inc. 7,269 85.63 (3.9%) 56.0% 91.69 93.4% 7.1x 7.9x 10.6x 9.8x 8.9x P.A.M. Transportation Services, Inc. 311 26.43 (2.4%) 4.6% 32.23 82.0% 5.0x 4.1x 5.6x 4.8x 4.0x Saia, Inc. 1,225 44.10 (7.3%) 121.4% 48.85 90.3% 3.7x 5.4x 8.0x 7.0x 6.3x Swift Transportation Company Class A 4,228 23.72 (2.5%) 78.5% 27.18 87.3% 5.1x 5.7x 7.7x 7.1x 6.5x Universal Logistics Holdings, Inc. 637 14.20 (18.2%) 7.9% 18.31 77.6% 5.5x 5.9x 6.8x 7.3x 6.6x USA Truck, Inc. 227 9.46 (8.2%) (40.5%) 21.46 44.1% 4.8x 6.6x 6.2x 5.7x 5.3x Werner Enterprises, Inc. 2,077 26.80 (3.4%) 22.3% 29.05 92.3% 4.2x 5.0x 5.9x 5.9x 5.3x YRC Worldwide Inc. 1,163 13.32 (17.0%) 9.3% 16.97 78.5% 4.8x 4.2x 4.8x 3.6x 3.3x Median (8.6%) 23.4% 83.5% 4.9x 5.5x 6.5x 6.4x 5.8x

PAGE | 7 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JANUARY 2017

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 Jan-16 Jul-16 Current 2017E 2018P Transportation & Logistics Rail and Rail Services American Railcar Industries, Inc. $1,250 $46.20 (2.2%) 12.6% $51.10 90.4% 4.6x 4.9x 6.1x 7.3x 8.4x Canadian National Railway Company 61,008 68.86 (1.1%) 34.2% 70.15 98.2% 9.6x 11.0x 12.6x 11.7x 11.1x Canadian Pacific Railway Limited 28,279 145.66 (6.8%) 29.2% 156.98 92.8% 9.9x 11.5x 12.4x 10.8x 10.2x CSX Corporation 44,660 36.99 (0.8%) 57.5% 37.73 98.1% 6.8x 7.7x 10.1x 9.2x 8.8x FreightCar America, Inc. 138 14.98 (7.4%) (15.7%) 20.23 74.0% 2.0x 1.9x 4.3x 8.9x 10.6x Genesee & Wyoming, Inc. Class A 6,149 70.68 (11.7%) 52.2% 80.73 87.6% 8.5x 9.9x 11.2x 9.0x 8.5x Greenbrier Companies, Inc. 1,745 47.40 12.7% 93.0% 48.45 97.8% 2.4x 2.4x 4.5x 5.8x 7.4x Kansas City Southern 11,370 81.55 (5.2%) 17.0% 100.69 81.0% 9.3x 10.8x 10.1x 9.4x 8.7x Norfolk Southern Corporation 41,296 109.18 (1.3%) 40.4% 112.99 96.6% 8.4x 8.7x 10.3x 9.5x 9.0x Trinity Industries, Inc. 6,834 28.09 (0.8%) 31.5% 29.31 95.8% 3.9x 4.5x 6.0x 8.7x 9.0x Union Pacific Corporation 98,607 102.42 (2.4%) 38.7% 106.62 96.1% 7.7x 9.4x 10.6x 9.9x 9.4x Westinghouse Air Brake Technologies Corporation 7,953 84.06 0.8% 33.1% 89.18 94.3% 9.1x 9.7x 12.1x 11.0x 10.1x Median (1.7%) 33.6% 95.0% 8.0x 9.0x 10.2x 9.3x 9.0x Marine Aegean Marine Petroleum Network Inc. $1,237 $10.35 (11.5%) 46.0% $13.10 79.0% 11.0x 7.1x 9.6x 8.3x 8.5x Costamare Inc. 1,814 5.86 0.5% (28.4%) 11.00 53.3% 6.3x 5.7x 5.5x 6.3x 6.7x Diana Shipping Inc. 775 3.69 26.4% 6.6% 4.97 74.2% NM NM NM NM 13.6x Kirby Corporation 4,229 65.45 (5.6%) 39.7% 73.25 89.4% 5.8x 8.0x 8.9x 10.3x 9.5x Matson, Inc. 2,343 35.80 (8.8%) (7.5%) 43.24 82.8% 7.1x 6.5x 8.7x 7.6x 7.1x Nordic American Tankers Limited 1,050 8.49 (10.6%) (42.0%) 16.18 52.5% 7.6x 7.7x 6.3x 9.4x 8.1x Rand Logistics, Inc. 226 0.91 5.7% (26.0%) 2.95 30.8% 7.8x 7.8x 8.2x 6.5x NA SEACOR Holdings Inc. 1,856 72.87 5.2% 58.7% 76.32 95.5% 8.9x 11.2x 16.1x 11.8x 10.4x Wilh. Wilhelmsen ASA 2,590 4.40 22.1% 109.6% 5.55 79.2% 12.5x 11.2x 18.3x 7.5x 6.6x Median 0.5% 6.6% 79.0% 7.7x 7.8x 8.8x 7.9x 8.3x Transportation Equipment Accuride Corporation NA NA NA NA $2.84 NA 4.7x 5.3x NA NA NA Dana Incorporated 3,664 19.05 (3.5%) 53.3% 19.85 96.0% 4.4x 4.0x 5.9x 5.4x 5.0x Gentherm Incorporated 1,249 33.90 0.3% (19.3%) 44.62 76.0% 9.6x 8.3x 8.4x 7.9x 7.4x Spartan Motors, Inc. 276 9.05 (2.2%) 190.1% 10.50 86.2% NM NM NM 12.6x 8.4x Wabash National Corporation 1,150 16.01 2.4% 48.4% 16.49 97.1% 4.1x 3.8x 4.5x 6.5x 7.2x Median (0.9%) 50.8% 91.1% 4.6x 4.7x 5.9x 7.2x 7.3x

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PUBLIC COMPARABLES

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. 580 590 619 757 894 963 9.3% 12.8% 158 179 198 217 272 300 11.2% 17.7% Atlas Air Worldwide Holdings, Inc. 1,657 1,799 1,823 1,828 1,975 2,104 3.3% 7.3% 292 327 271 376 425 463 8.8% 11.0% C.H. Robinson Worldwide, Inc. 12,752 13,470 13,476 13,048 13,974 14,593 0.8% 5.8% 740 805 925 914 928 985 7.3% 3.8% Deutsche Post AG 73,132 75,117 65,681 61,172 63,687 65,582 (5.8%) 3.5% 3,887 4,812 3,587 5,178 5,534 5,899 10.0% 6.7% DSV A/S 8,137 8,645 7,563 9,637 10,158 10,539 5.8% 4.6% 543 560 532 612 729 818 4.1% 15.6% Echo Global Logistics, Inc 884 1,173 1,512 1,725 1,913 2,153 24.9% 11.7% 34 44 54 73 82 94 29.1% 13.7% Expeditors International of Washington, Inc. 6,080 6,565 6,617 6,066 6,435 6,789 (0.1%) 5.8% 600 644 767 712 740 801 5.9% 6.0% FedEx Corporation 45,567 47,453 50,365 59,913 62,651 65,570 9.6% 4.6% 6,033 4,951 6,165 8,621 9,118 9,971 12.6% 7.5% Forward Air Corporation 652 781 959 975 1,021 1,071 14.3% 4.8% 109 128 128 139 154 165 8.5% 8.8% Hub Group, Inc. Class A 3,374 3,571 3,526 3,530 3,757 3,964 1.5% 6.0% 137 136 154 167 169 181 6.7% 4.1% J.B. Hunt Transport Services, Inc. 5,585 6,165 6,188 6,554 7,140 7,813 5.5% 9.2% 825 920 1,054 1,080 1,168 1,284 9.4% 9.0% Kuhne & Nagel International AG 18,529 19,118 17,376 19,759 20,511 21,417 2.2% 4.1% 1,028 1,073 1,069 1,084 1,152 1,213 1.8% 5.8% Landstar System, Inc. 2,665 3,185 3,321 3,100 3,251 3,414 5.2% 4.9% 203 251 269 254 270 288 7.8% 6.4% Panalpina Welttransport (Holding) AG 7,289 7,327 6,081 5,149 5,450 5,599 (10.9%) 4.3% 172 218 184 168 214 255 (0.8%) 23.1% Roadrunner Transportation Systems, Inc. 1,361 1,873 1,995 1,961 2,044 2,146 12.9% 4.6% 103 125 130 97 117 127 (1.9%) 14.3% Ryder System, Inc. 6,419 6,639 6,572 6,762 6,979 7,347 1.7% 4.2% 1,361 1,505 1,660 1,782 1,854 1,976 9.4% 5.3% TransForce Inc. 3,018 3,363 3,150 3,064 3,533 3,609 0.5% 8.5% 319 372 332 349 473 492 3.0% 18.7% United Parcel Service, Inc. Class B 55,491 58,256 58,050 60,983 63,930 66,916 3.2% 4.8% 8,765 6,889 9,429 10,510 10,867 11,543 6.2% 4.8% Universal Logistics Holdings, Inc. 1,033 1,192 1,129 1,076 1,100 1,126 1.4% 2.3% 123 114 108 89 89 97 (10.5%) 4.8% XPO Logistics, Inc. 702 2,357 7,623 14,629 14,923 15,749 NM 3.8% (17) 92 474 1,247 1,354 1,575 NM 12.4% Total $259,756 $273,405 $267,955 $281,688 $295,326 $308,462 4.5% 5.9% $25,705 $24,421 $27,783 $33,668 $35,710 $38,526 6.8% 10.0% Trucking ArcBest Corporation $2,300 $2,613 $2,667 $2,691 $2,857 $3,006 5.4% 5.7% $107 $154 $167 $137 $168 $182 8.6% 15.4% Celadon Group, Inc. 614 742 901 1,065 1,065 1,102 20.2% 1.7% 99 87 117 109 109 106 3.2% (1.6%) Covenant Transportation Group, Inc. Class A 685 719 724 668 699 773 (0.8%) 7.6% 63 89 143 106 122 125 18.5% 8.7% Heartland Express, Inc. 582 871 736 623 624 652 2.3% 2.3% 149 208 193 190 190 209 8.5% 4.8% Knight Transportation, Inc. 969 1,102 1,183 1,112 1,177 1,265 4.7% 6.7% 193 256 281 269 286 317 11.8% 8.6% Marten Transport, Ltd. 659 673 665 666 700 753 0.3% 6.4% 110 115 127 140 141 149 8.2% 3.2% Old Dominion Freight Line, Inc. 2,338 2,788 2,972 2,983 3,205 3,480 8.5% 8.0% 466 606 676 676 739 815 13.3% 9.8% P.A.M. Transportation Services, Inc. 403 411 417 434 464 476 2.5% 4.7% 50 55 63 62 67 78 7.4% 12.4% Saia, Inc. 1,139 1,272 1,221 1,215 1,280 1,368 2.2% 6.1% 125 145 155 157 176 191 7.9% 10.3% Swift Transportation Company Class A 4,118 4,299 4,229 4,039 4,156 4,376 (0.6%) 4.1% 577 583 611 556 604 638 (1.3%) 7.2% Universal Logistics Holdings, Inc. 1,033 1,192 1,129 1,076 1,100 1,126 1.4% 2.3% 123 114 108 89 89 97 (10.5%) 4.8% USA Truck, Inc. 555 602 508 434 438 457 (7.8%) 2.5% 41 60 56 34 39 43 (5.9%) 12.9% Werner Enterprises, Inc. 2,029 2,139 2,094 1,999 2,072 2,176 (0.5%) 4.3% 295 316 393 328 353 391 3.7% 9.2% YRC Worldwide Inc. 4,865 5,069 4,832 4,686 4,842 5,070 (1.2%) 4.0% 205 197 259 292 316 345 12.6% 8.7% Total $22,289 $24,492 $24,279 $23,692 $24,679 $26,081 2.6% 4.7% $2,603 $2,984 $3,349 $3,145 $3,399 $3,687 6.1% 8.2%

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PUBLIC COMPARABLES

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 $626 $531 $454 (5.9%) (14.9%) $179 $204 $273 $197 $170 $149 3.4% (13.0%) Canadian National Railway Company 10,263 10,986 9,857 9,105 9,605 10,140 (3.9%) 5.5% 4,710 5,137 5,021 4,945 5,191 5,475 1.6% 5.2% Canadian Pacific Railway Limited 5,952 5,994 5,246 4,786 5,057 5,246 (7.0%) 4.7% 2,340 2,640 2,431 2,483 2,653 2,780 2.0% 5.8% CSX Corporation 12,026 12,669 11,811 10,859 11,283 11,854 (3.3%) 4.5% 4,534 4,764 4,792 4,512 4,780 5,118 (0.2%) 6.5% FreightCar America, Inc. 290 599 773 504 409 331 20.2% (19.0%) (4) 17 51 18 15 6 NM (42.6%) Genesee & Wyoming, Inc. Class A 1,569 1,639 2,000 1,977 2,093 2,248 8.0% 6.6% 533 579 586 563 675 734 1.9% 14.2% Greenbrier Companies, Inc. 1,755 2,203 2,605 2,681 2,681 1,859 15.2% (16.7%) 143 237 430 458 458 222 47.5% (30.3%) Kansas City Southern 2,369 2,577 2,419 2,334 2,473 2,641 (0.5%) 6.4% 962 1,106 1,098 1,131 1,229 1,307 5.5% 7.5% Norfolk Southern Corporation 11,245 11,624 10,511 9,870 10,324 10,783 (4.3%) 4.5% 4,173 4,526 3,938 4,089 4,354 4,599 (0.7%) 6.1% Trinity Industries, Inc. 4,365 6,170 6,393 4,591 3,414 3,535 1.7% (12.2%) 963 1,402 1,528 999 783 758 1.2% (12.9%) Union Pacific Corporation 21,963 23,988 21,813 19,885 20,854 21,676 (3.3%) 4.4% 9,223 10,657 10,064 9,248 9,899 10,551 0.1% 6.8% Westinghouse Air Brake Technologies Corporation 2,566 3,044 3,308 2,952 4,168 4,316 4.8% 20.9% 489 588 701 607 723 784 7.5% 13.6% Total $75,115 $82,227 $77,625 $70,168 $72,890 $75,081 1.8% (0.4%) $28,243 $31,857 $30,912 $29,249 $30,930 $32,484 6.4% (2.8%) Marine Aegean Marine Petroleum Network Inc. $6,335 $6,662 $4,232 $4,031 $5,091 $6,902 (14.0%) 30.8% $84 $54 $81 $140 $150 $146 18.5% 2.0% Costamare Inc. 414 484 490 462 435 409 3.7% (5.9%) 267 330 325 323 288 272 6.6% (8.2%) Diana Shipping Inc. 164 176 158 101 135 188 (15.0%) 36.6% 55 52 28 (15) 6 47 NM NA Kirby Corporation 2,242 2,566 2,148 1,754 1,758 1,907 (7.9%) 4.3% 582 646 573 440 416 438 (8.9%) (0.3%) Matson, Inc. 1,637 1,714 1,885 1,921 1,998 2,051 5.5% 3.3% 182 203 298 292 314 327 17.1% 5.8% Nordic American Tankers Limited 244 351 446 238 226 249 (0.7%) 2.2% (7) 74 211 144 110 123 NM (7.7%) Rand Logistics, Inc. 156 153 148 117 118 NA (9.0%) NA 33 34 32 32 35 NA (0.6%) NA SEACOR Holdings Inc. 1,247 1,319 1,055 831 893 907 (12.7%) 4.5% 197 245 150 101 160 179 (20.0%) 33.1% Wilh. Wilhelmsen ASA 325 285 313 1,957 1,890 2,063 81.9% 2.7% 170 134 186 360 336 365 28.3% 0.6% Total $12,764 $13,710 $10,874 $11,412 $12,544 $14,675 3.5% (2.4%) $1,562 $1,772 $1,884 $1,817 $1,816 $1,896 5.9% 3.6% Transportation Equipment Accuride Corporation $643 $705 $686 $590 $577 $640 (2.8%) 4.2% $43 $75 $77 $72 $67 $85 18.9% 8.4% Dana Incorporated 6,769 6,617 6,060 5,772 6,003 6,246 (5.2%) 4.0% 706 705 618 654 687 740 (2.5%) 6.4% Gentherm Incorporated 662 812 856 918 982 1,080 11.5% 8.5% 83 135 155 148 158 169 21.0% 7.1% Spartan Motors, Inc. 470 507 550 585 604 632 7.6% 3.9% 6 10 0 18 22 33 NM NM Wabash National Corporation 1,636 1,863 2,027 1,824 1,592 1,479 3.7% (10.0%) 142 161 218 242 184 152 19.4% (20.8%) Total $10,179 $10,504 $10,180 $9,688 $9,758 $10,077 3.0% 2.1% $981 $1,086 $1,068 $1,134 $1,118 $1,179 14.2% 0.3%

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TRANSPORTATION & LOGISTICS

SOURCES

1. FactSet.

2. MergerMarket.

3. Pitchbook.

DISCLOSURES

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