TRUCKING & LOGISTICS INDUSTRY UPDATE DECEMBER 2018 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 DECEMBER 2018 bridgepointib.com BRIDGEPOINT INSIGHTS Industry In Late Stages of a Strong Valuation Cycle KEY TAKEAWAYS EXECUTIVE SUMMARY Trucking company valuations and earnings are highly cyclical due to the nature of the Trucking company median valuation industry and general macroeconomic multiples are currently at 7.2x, up 54.3% from the most recent cycle trough of factors as well as specific business 4.6x in January 2016 characteristics; cycle timing is critical to maximize transaction value According to ATA Chief Economist Bob Costello, we are currently in one of the Understanding and appropriately best, if not the best, truck freight communicating the Company’s unique markets we have ever seen. This has business mix is critical to a successful caused demand to outpace the ability of trucking companies to find process and maximization of value drivers Industry valuations have remained The level of for-hire freight shipments steadfast over the past two years and there as measured by the Transportation continues to be significant industry Services Index was up 4.7% from tailwinds indicating strong 2019 projections September 2017 showing growing demand for freight service Bridgepoint Investment Banking advises The ATA tonnage index dropped 0.8% trucking company owners seeking liquidity in September 2018 to 111.8 from or growth financing that timing is attractive August’s 112.7 level, but increased 5.2% to consider exploring monetization, for the same period compared to 2017 financing and other strategic options Trucking & Logistics Valuation Cycle Total <$1bn TEV Total <$1bn TEV TEV / TEV / TEV / TEV / EBITDA EBITDA Revenue Revenue Current Median 7.2x 5.9x 0.95x 0.72x Historical Median 8.5x 6.2x 1.00x 0.59x 14.0x Peak Median 11.8x 9.0x 1.26x 0.80x 1.40x Trough Median 4.6x 4.1x 0.71x 0.44x TEV / LTM REVENUE 12.0x 1.20x 10.0x 1.00x 8.0x 0.80x 6.0x 0.60x TEV / LTM EBITDA 4.0x 0.40x 2.0x 0.20x 0.0x 0.00x TEV / Revenue TEV / EBITDA Historical TEV / EBITDA 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 DECEMBER 2018 bridgepointib.com BRIDGEPOINT INSIGHTS Transportation ATA Tonnage Index LTM Services Index (2015 = 100, SA) 140 118 116.1 130 116 115.0 113.8 120 114 113.0 112.7 113.6 111.6 111.8 110 112 111.2 112.8 100 110 110.1 109.4 90 108 80 106 Source: U.S. Bureau of Transportation Statistics Source: American Trucking Association Key Business Considerations KEY TRUCKING & LOGISTICS TRENDS VALUATION CONSIDERATIONS . Economic growth and more goods ordered online Solid Freight Volume and Lack of by consumers have contributed to the heightened Capacity Driving Capital Expenditures freight volume and driving high freight costs Electronic Logging Device Mandate in . ELDs represents a real value-add for companies Effect – Truck Capacity Beginning to that have successfully transitioned and historically Increase utilized electronic logs Record New Class 8 Truck Orders to . Investing in their fleet is one strategy trucking firms Combat Tight Capacity and Add to can use to differentiate themselves and effectively Driver Satisfaction recruit talent in this tight labor market . Increased Costs due to New Engine Industry-wide driver shortage heightens focus on Technology and Maintenance quality of drivers, driver retention rates and safety Complexity history . Facilitating effective loading and unloading will Driver Pay Expected to Continue to allow drivers to spend more time on the road and Follow Rates increase capacity Operators Looking to Diversify Revenue . Drive synergistic value through complementary or Base with diversifying service offerings and / or economies of Asset Light Offerings scale through consolidation Corporate Tax Overhaul Significantly . As businesses increase investments, demand in the Increases Book and Cash Earnings transportation and logistics industry will increase Source: Bridgepoint Investment Banking, Capital IQ, Bank of America Merrill Lynch 2 TRUCKING & LOGISTICS INDUSTRY UPDATE DECEMBER 2018 bridgepointib.com BRIDGEPOINT INSIGHTS Selected Public Comparables ($ in millions, except per share data) 11/19/2018 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 $39.69 $1,019.6 $1,056.9 12.0x 0.35x 4.7x 8.7x Covenant Transportation Group, Inc. United States $24.09 $442.0 $658.0 5.9x 0.81x 4.9x 11.0x Heartland Express, Inc. United States $20.31 $1,663.9 $1,543.9 18.9x 2.45x 10.1x 32.3x J.B. Hunt Transport Services, Inc. United States $108.51 $11,846.7 $12,908.7 15.3x 1.56x 11.4x 18.3x Knight-Swift Transportation Holdings Inc. United States $32.22 $5,623.7 $6,506.2 8.1x 1.23x 7.2x 13.5x Landstar System, Inc. United States $106.28 $4,369.6 $4,271.4 17.6x 0.95x 11.9x 13.6x Marten Transport, Ltd. United States $19.85 $1,081.1 $1,045.4 10.5x 1.36x 7.1x 17.5x Old Dominion Freight Line, Inc. United States $134.31 $10,979.9 $10,847.4 17.1x 2.78x 11.3x 14.6x P.A.M. Transportation Services, Inc. United States $59.53 $355.6 $539.6 7.5x 1.07x 7.0x 16.8x Patriot Transportation Holding, Inc. United States $20.00 $66.6 $49.5 14.2x 0.44x 4.5x 40.2x Roadrunner Transportation Systems, Inc. United States $0.60 $23.3 $541.4 NM 0.24x NM NM Saia, Inc. United States $62.54 $1,592.9 $1,713.7 12.9x 1.08x 7.5x 13.0x Schneider National, Inc. United States $22.34 $3,954.2 $3,972.0 8.5x 0.82x 6.1x 11.1x TFI International Inc. Canada $33.44 $2,931.1 $4,051.9 12.0x 1.09x 8.4x 13.9x Universal Logistics Holdings, Inc. United States $24.07 $682.9 $999.2 10.1x 0.72x 8.6x 15.8x USA Truck, Inc. United States $20.85 $169.3 $265.6 7.9x 0.51x 5.9x 16.2x Werner Enterprises, Inc. United States $34.15 $2,431.3 $2,546.6 9.7x 1.07x 6.3x 14.3x XPO Logistics, Inc. United States $73.70 $9,356.0 $13,580.6 20.1x 0.79x 9.3x 17.6x YRC Worldwide Inc. United States $6.01 $203.4 $898.3 NM 0.18x 3.6x 8.8x Sub-$1bn TEV Total P / E TEV / Revenue TEV / EBITDA TEV / EBIT P / E TEV / Revenue TEV / EBITDA TEV / EBIT High 12.0x 1.36x 8.6x 17.5x High 20.1x 2.78x 11.9x 40.2x Mean 9.0x 0.71x 6.0x 13.6x Mean 12.2x 1.03x 7.5x 16.5x Median 9.0x 0.72x 5.9x 15.8x Median 12.0x 0.95x 7.2x 14.5x Low 5.9x 0.18x 3.6x 8.7x Low 5.9x 0.18x 3.6x 8.8x ($ in millions) Selected Recent Industry Transactions Date TEV TEV / LTM Announced Target Acquiror ($mm) Sales EBITDA 11/29/2018 Sellland Auto Transport Jack Cooper Holdings Corp $255.0 1.1x 11.6x 11/28/2018 Equipment Transport, LLC PWT LLC - 11/05/2018 CaseStack, Inc. Hub Group, Inc. (NasdaqGS:HUBG) $255.0 1.1x 11.6x 10/24/2018 Southwest International Freight Central States Trucking $16.3 0.8x 5.4x 10/24/2018 Martin Transport, Inc. Martin Operating Partnership L.P. $145.0 - - 10/18/2018 Davis Transfer Company Inc. USA Truck, Inc. (NasdaqGS:USAK) $53.0 1.1x - 10/18/2018 American Fast Freight, Inc. Odyssey Logistics & Technology Corporation $465.0 - - 09/25/2018 Smith Transporation Services LLC Post Capital Partners LLC - - - 08/10/2018 Southern Counties Express, Inc. Mason Dixon Intermodal, Inc. $65.0 - - 08/01/2018 Builders Transportation ENTREC Corporation (TSX:ENT) $53.8 0.7x 5.6x 07/25/2018 Dacota Freight Services Ltd. Hi-Way 9 Group of Companies $1.8 - - 07/10/2018 MNX Global Logistics Audax Group LP - - - 06/27/2018 Prime EFS LLC Transportation and Logistics Systems, Inc. $0.5 0.1x - 06/07/2018 Thunder Ridge Transport, Inc. EVO Transportation & Energy Services, Inc. $3.0 - - 05/15/2018 Schuh Transport Inc Kenan Advantage Group Inc - - - 02/23/2018 Central Arizona Freight Red Arts Capital - - - 02/07/2018 Marshall Trucking Inc. Mullen Trucking Corp. $7.8 - - 02/06/2018 ATC Drivetrain LLC Crestview Partners LP - - - 02/02/2018 Fore Transportation, Inc. Universal Logistics Holdings, Inc. (NasdaqGS:ULH) $34.9 1.1x - 12/07/2017 Keen Transport, Inc. Wallenius Wilhelmsen ASA (OB:WALWIL) $64.0 0.8x 6.4x 11/01/2017 Indiana Transport, Inc. Patrick Industries, Inc. (NasdaqGS:PATK) $59.0 - - 09/05/2017 RDK Transportation Co. Inc. Mullen Group Ltd. (TSX:MTL) $10.9 - - 08/31/2017 Milgram & Company Ltd. C.H. Robinson Worldwide, Inc. (NasdaqGS:CHRW) $49.5 0.4x - 07/18/2017 Commodity Forwarders Inc. Kuehne + Nagel International AG (SWX:KNIN) $94.4 0.5x - 07/06/2017 Interstate Distributor Co., Inc. Heartland Express, Inc.