TRANSPORTATION & LOGISTICS

Transcription

1 Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

2 WHAT WE RE READING LOGISTICS GROWTH OF WEB-BASED SALES LIFTS HOLIDAY SEASON The early holiday shipping season featured more online purchases, which could help to ensure smooth package delivery flow, experts said. Research firm ShopperTrak calculated retailers in-store sales fell 10% to $20.4 billion on Nov. 27, the day after Thanksgiving known as Black Friday. But on Cyber Monday, which was the next business day, Nov. 30, online sales rose 6% to $3 billion, according to Adobe Systems Inc. One sign that shipping patterns will be spread out was the 26% rise in online transactions for the Nov weekend, and an 18% rise on Cyber Monday, according to International Business Machines Corp. Transport Topics TRUCKING ELECTRONIC LOGGING DEVICE MANDATE SET A federal rule to require truck operators to use electronic logging devices to keep records of duty status is slated to be published in the Federal Register on Friday, the Federal Motor Carrier Safety Administration has announced. The rule will take effect Dec. 11, 2017, giving carriers and drivers a two-year window to comply with the rule s requirements. Upon beginning use of an ELD, drivers will no longer be required to keep and maintain paper logs. They will, however, be required to maintain supporting documentation and submit them to their carrier or, for owneroperators, keep them on file. Commercial Carrier Journal MARINE NEW SHIPPING CONTAINER RULE RILES EXPORTERS Retailers, manufacturers and farmers world-wide are protesting a new marine shipping safety rule they say will raise transport costs and cause delays at ports worldwide. The rule, which kicks in next July in 171 countries, requires exporters to certify the weight of containers before they re loaded onto ships. Carriers say accurate weights are needed because overloaded containers frequently damage cargo and even cause ships to capsize. But shippers in many countries say they are ill-equipped to weigh so many containers. Some say they learned about the rule only recently and are still in the dark about key details, including how it will be enforced. Wall Street Journal RAIL RAIL REFORM BILL ON TRACK TO CLEAR CONGRESS THIS WEEK U.S. lawmakers are expected to pass an overhaul of the Surface Board, giving the nation s main freight rail regulator more teeth to crackdown on service issues and boost competition in the industry. The bill s sponsors say they are confident the legislation will arrive on President Obama s desk before the new year. Sens. John Thune, R-S.D., and Bill Nelson, D-Fla, introduced the Surface Board Reauthorization Act of 2015 in March. Under Thune and Nelson s plan, the STB would gain expanded investigative powers, additional funding and two more chairs, bringing the total membership from three to five. Journal of Commerce CONTENTS M&A TRANSACTIONS PUBLIC MARKETS OVERVIEW STOCK PRICE PERFORMANCE OUR GROUP CONTACTS UNITED STATES Frank Mountcastle Managing Director fmountcastle@harriswilliams.com +1 (804) Jason Bass Managing Director jbass@harriswilliams.com +1 (804) Joe Conner Managing Director jconner@harriswilliams.com +1 (804) Jeff Burkett Director jburkett@harriswilliams.com +1 (804) Jershon Jones Director jjones@harriswilliams.com +1 (804) Jeff Kidd Vice President jkidd@harriswilliams.com +1 (804) EUROPE Jeffery Perkins Managing Director jperkins@harriswilliams.com +49 (0) AIR AIR CARGO MARKET FORECAST TO STAY SUBDUED IN 2016 The air cargo market will remain weak through 2016 due to sluggish world trade growth, the International Air Transport Association said. Demand is expected to accelerate next year to 3 percent from 1.9 percent in 2015, slightly ahead of GDP growth, which is set to average 2.7 percent, IATA forecast in its 2016 industry outlook. A tough global economic environment and feeble world trade have subdued air cargo demand, the industry body said. Emerging markets have struggled a slowdown in China has sent commodity exporters wobbling. Journal of Commerce PAGE 1

3 M&A TRANSACTIONS RECENT M&A TRANSACTIONS 1,2 Date Sector Target Business Description Acquirer 12/9/2015 Logistics United Co LLC, Motor Fuel Delivery Fleet 12/7/2015* Neptune Orient Lines Limited Provides motor fuel delivery services. Owns and operates charter vessels and other related assets and provides global cargo container transportation services. Sentinel LLC CMA CGM S.A. 12/1/2015 Logistics Optimal Freight, LLC Provides truckload, less-than-truckload, intermodal, air, ocean, and freight management services. Transport America, Inc. 12/1/2015 Logistics Bear Services, LP Provides less-than-truckload and truckload freight brokerage services. ABF Logistics II, Inc. 11/18/2015 Logistics The Secor Group, Inc. Provides moving, stroage, and logistics services. The Suddath Companies 11/9/2015* Equipment TAL International Group, Inc. Leases intermodal transportation equipment and provides maritime container management services worldwide. Triton Container International Limited 11/4/2015 Logistics Juno Logistics Provides non-asset based, global third party logistics. Sojitz Logistics Corporation 11/2/2015 Logistics Copper Logistics, Inc. Provides domestic and international asset-light freight forwarding services. Radiant Logistics, Inc. 11/2/2015 Logistics Dunbar Armored, Inc., Global Logistics Operations 10/29/2015* Logistics TransForce Waste Management Segment 10/28/2015 Rail Pacific Imperial Railroad, Inc. Provides armored logistics services and cash management solutions. Provides an extended range of services for residual materials management in the residential, municipal, industrial, commercial, and institutional sectors. Owns and operates shortline and freight railroad in California. Loomis AB GFL Environmental Inc. Conatus Capital Group, Inc. 10/21/2015 Logistics Courier Advisory Group Inc. Provides courier and managed delivery services for pharmacy, medical, retail, optical, and banking industries. R.R. Donnelley Logistics, Inc. 10/20/2015 Logistics Unishippers Global Logistics, LLC Provides non-asset based, third party logistics services to small to midsized businesses. Ridgemont Equity Partners 10/13/2015 Equipment Great Western Leasing & Sales, Inc. Provides full-service, integrated solutions to the flatbed and specialized trailer industy. 10/9/2015* Logistics UTi Worldwide Inc. Operates as a non-asset-based supply chain services and solutions company. Argosy Capital; Argosy Investment Partners V, L.P.; Headhaul Capital DSV A/S 10/7/2015 Air ACP Jets LLC Offers comprehensive aircraft charter and management services. Jetflite International 10/6/2015 Logistics Torrey Pines Provides chauffeured corporate ground transportation services to, Inc. corporate travelers, group managers, and private individuals in San Diego. 10/5/2015 Logistics SMARTLogix, Inc. Provides petroleum management, inventory, and transportation 10/2/2015 Air Total Airport Services, Inc. *Denotes pending transactions logistics solutions for the petroleum logistics business in North America. Provides aviation services to airline carriers and airports in North America. Marcou Group, LLC SkyBitz, Inc. CCR USA Airport Management, Inc. PAGE 2

4 PUBLIC MARKETS OVERVIEW TEV / LTM EBITDA TEV / 2015E EBITDA 9.8x 9.7x 9.3x 8.2x 8.0x 7.2x Equipment 5.0x Equipment 5.4x 5.0x 4.7x AVERAGE REVENUE GROWTH ( ) AVERAGE REVENUE GROWTH ( P) 11.5% 5.1% Equipment 8.7% 3.9% 7.8% 3.6% 6.4% Equipment 2.1% 3.5% (4.3%) AVERAGE EBITDA GROWTH ( ) AVERAGE EBITDA GROWTH ( P) 15.8% 11.3% 14.2% 10.2% 7.5% Equipment 8.3% Equipment 7.4% 6.7% 5.5% 3.9% PAGE 3

5 STOCK PRICE PERFORMANCE MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH) S&P 500 (1.3%) S&P % (5.6%) (15.5%) (9.6%) (22.0%) (9.8%) Equipment (26.9%) Equipment (10.6%) (26.9%) (12.5%) (32.9%) TRAILING TWELVE MONTHS (Indexed to December 10, 2014) 30% 20% 10% 0% (10%) (20%) (30%) (40%) Dec Mar Jun Sep Dec Rail and Rail Services Equipment S&P 500 Index PAGE 4

6 OUR GROUP Harris Williams & Co. is a leading advisor to the transportation and logistics M&A market. Our & 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 acquired RCL Services Group in partnership with and has sold and to 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

7 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 Aerospace, Defense & Government Services Building Products & Materials Business Services Consumer Energy, Power & Infrastructure Healthcare & Life Sciences Industrials Specialty Distribution Technology, Media & Telecom & Logistics HARRIS WILLIAMS & CO. OFFICE LOCATIONS Boston Two International Place 24th Floor Boston, Massachusetts Phone: +1 (617) Cleveland 1900 East 9th Street 20th Floor Cleveland, Ohio Phone: +1 (216) Minneapolis 222 South 9th Street Suite 3350 Minneapolis, Minnesota Phone: +1 (612) UNITED STATES Richmond (Headquarters) 1001 Haxall Point 9th Floor Richmond, Virginia Phone: +1 (804) San Francisco 575 Market Street 31st Floor San Francisco, California Phone: +1 (415) EUROPE Frankfurt Bockenheimer Landstrasse Frankfurt Germany Phone: London 63 Brook Street London W1K 4HS, England Phone: +44 (0) Beijing Hong Kong Mumbai NETWORK OFFICES New Delhi Shanghai PAGE 6

8 INDUSTRY UPDATE NOVEMBER 2015 PUBLIC COMPARABLES Stock Performance Stock Price Change from 52-Week TEV / LTM EBITDA as of TEV / EBITDA ($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Dec-14 Jun-15 Current 2015E 2016P & Logistics Agility Public Warehousing Company K.S.C.P. $1,892 $1.65 (1.7%) (36.0%) $ % 9.0x 9.8x 7.1x NA NA Air Transport Services Group, Inc. $890 $9.25 (4.4%) 16.2% $ % 5.0x 5.4x 4.6x 4.6x 4.2x Atlas Air Worldwide Holdings, Inc. $2,408 $ % (13.8%) $ % 8.4x 7.8x 6.2x 6.4x 6.5x CH Robinson Worldwide Inc. $9,728 $61.51 (9.3%) (14.3%) $ % 14.6x 12.5x 11.0x 10.6x 10.1x Deutsche Post AG $36,730 $27.37 (6.0%) (16.1%) $ % 9.0x 10.8x 10.7x 8.3x 6.9x DSV A/S $8,091 $39.82 (2.1%) 29.7% $ % 12.1x 15.6x 16.3x 15.4x 14.7x Echo Global Logistics, Inc. $808 $21.19 (11.2%) (21.0%) $ % 19.2x NM 18.4x 12.0x 8.8x Expeditors International of Washington Inc. $7,767 $46.89 (4.2%) 6.2% $ % 12.1x 11.9x 10.4x 10.1x 9.8x FedEx Corporation $45,646 $ (7.5%) (15.9%) $ % 7.6x 7.8x 6.3x 6.6x 5.9x Forward Air Corp. $1,423 $44.49 (2.5%) (9.5%) $ % 12.1x 13.4x 10.5x 10.3x 8.5x Hub Group Inc. $1,218 $35.15 (8.9%) (1.1%) $ % 9.5x 11.7x 8.6x 9.7x 8.4x JB Hunt Transport Services Inc. $9,444 $73.79 (1.5%) (7.7%) $ % 11.5x 11.2x 9.1x 9.0x 8.2x Kuehne + Nagel International AG $15,899 $ % 1.1% $ % 14.8x 15.7x 15.3x 14.9x 14.4x Landstar System Inc. $2,457 $57.63 (8.9%) (22.2%) $ % 14.4x 11.7x 9.2x 9.1x 8.7x Panalpina World Transport Holding Ltd. $2,407 $ (0.5%) (15.5%) $ % 18.1x 19.2x 16.8x 13.1x 10.6x Roadrunner Systems, Inc. $846 $10.38 (5.6%) (49.0%) $ % 10.9x 11.5x 6.6x 6.7x 6.1x Ryder System, Inc. $8,473 $57.98 (18.0%) (34.7%) $ % 5.7x 5.8x 4.9x 4.7x 4.4x TransForce Inc. $2,947 $17.02 (9.6%) (32.7%) $ % 11.1x 9.9x 7.6x 7.7x 7.6x United Parcel Service, Inc. $98,411 $ (3.4%) (8.7%) $ % 13.3x 13.8x 11.7x 10.1x 9.4x Universal Truckload Services Inc. $615 $13.77 (11.7%) (49.7%) $ % 9.4x 7.6x 5.6x 5.7x 5.4x UTi Worldwide Inc. $1,288 $6.96 (1.1%) (39.3%) $ % NM NM NM NM NM World Fuel Services Corp. $3,163 $40.65 (8.9%) (13.5%) $ % 12.2x 11.7x 10.4x 10.3x 9.4x XPO Logistics, Inc. $5,725 $28.52 (14.9%) (22.8%) $ % NM NM 18.0x 12.2x 4.6x Median (5.6%) (15.5%) 77.0% 11.5x 11.6x 9.8x 9.7x 8.4x ArcBest Corporation $497 $21.77 (16.1%) (50.0%) $ % 7.2x 5.2x 2.9x 2.8x 2.5x Celadon Group Inc (25.3%) (48.7%) % 8.4x 9.2x 7.2x 6.6x 5.2x Covenant Group, Inc (7.4%) (22.4%) % 8.1x 7.0x 4.8x 4.6x 4.3x Heartland Express, Inc. 1, (11.6%) (31.8%) % 11.8x 8.8x 7.0x 6.2x 6.0x Knight Inc. 2, (8.6%) (21.3%) % 12.0x 9.5x 7.3x 7.0x 6.5x Marten Transport Ltd (2.6%) (20.2%) % 6.6x 6.3x 4.7x 4.4x 4.0x Old Dominion Freight Line Inc. 5, (4.3%) (21.2%) % 12.6x 9.8x 8.1x 8.0x 7.3x P.A.M. Services, Inc (28.7%) (42.5%) % 8.2x 8.8x 4.8x NA NA Saia, Inc (7.7%) (59.9%) % 10.1x 7.5x 4.0x 4.0x 3.9x Swift Company 3, (12.5%) (47.8%) % 9.7x 7.9x 5.6x 5.5x 5.1x Universal Truckload Services Inc (11.7%) (49.7%) % 9.4x 7.6x 5.6x 5.7x 5.4x USA Truck Inc (4.0%) (17.4%) % 7.0x 5.6x 4.1x 4.2x 4.4x Werner Enterprises Inc. 1, (7.6%) (16.6%) % 7.2x 6.2x 5.1x 4.7x 4.5x YRC Worldwide Inc. 1, (10.5%) (34.1%) % 9.6x 6.1x 4.5x 3.9x 3.6x Median (9.6%) (32.9%) 53.3% 8.9x 7.5x 5.0x 4.7x 4.5x PAGE 7

9 INDUSTRY UPDATE NOVEMBER 2015 PUBLIC COMPARABLES Stock Performance Stock Price Change from 52-Week TEV / LTM EBITDA as of TEV / EBITDA ($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Dec-14 Jun-15 Current 2015E 2016P & Logistics Rail and Rail Services American Railcar Industries, Inc. $1,474 $50.15 (8.4%) 2.1% $ % 6.2x 6.4x 5.9x 5.4x 5.9x Canadian National Railway Company 50, (9.4%) (15.7%) % 12.3x 11.7x 10.7x 10.7x 10.1x Canadian Pacific Railway Limited 25, (11.1%) (28.2%) % 14.4x 13.8x 10.9x 10.5x 9.7x CSX Corp. 33, (11.1%) (29.4%) % 9.3x 8.7x 6.8x 6.9x 6.7x FreightCar America Inc (4.4%) (11.6%) % NM 7.7x 3.4x 2.7x 2.8x Genesee & Wyoming Inc. 5, (21.4%) (36.8%) % 11.3x 11.7x 9.1x 9.2x 8.3x The Greenbrier Companies, Inc. 1, (17.0%) (32.1%) % 6.0x 5.7x 2.7x 2.8x 2.6x Kansas City Southern 10, (16.8%) (33.5%) % 13.5x 11.4x 9.8x 9.8x 9.1x Norfolk Southern Corporation 35, (1.1%) (13.4%) % 8.6x 8.1x 8.5x 8.7x 8.3x Trinity Industries Inc. 6, (8.9%) (12.7%) % 5.8x 5.5x 4.4x 4.1x 5.1x Union Pacific Corporation 78, (10.1%) (31.9%) % 10.8x 9.1x 7.5x 7.6x 7.2x Westinghouse Air Brake Technologies Corporation 7, (4.9%) (14.6%) % 15.2x 16.0x 11.0x 10.7x 9.9x Median (9.8%) (22.0%) 66.8% 10.8x 8.9x 8.0x 8.2x 7.8x Aegean Petroleum Network Inc. $1,020 $ % (15.8%) $ % 13.0x 13.6x 10.2x 8.8x 7.5x Costamare Inc. 2, (22.1%) (42.3%) % 9.9x 9.8x 7.4x 7.0x 6.7x Diana Shipping Inc (35.8%) (41.2%) % 16.8x 18.3x 18.5x NM NM Kirby Corporation 3, (14.0%) (34.6%) % 8.8x 7.9x 6.5x 6.8x 6.7x Matson, Inc. 2, (12.0%) 33.8% % 9.4x 7.9x 9.3x 7.8x 7.5x Neptune Orient Lines Limited 5, % 36.7% % NM NM NM NM NM Nordic American Tankers Limited 1, (3.1%) 66.9% % NM 16.3x 9.5x 7.0x 7.4x Rand Logistics, Inc (17.3%) (48.1%) % 8.8x 8.1x 8.1x 6.9x 7.3x SEACOR Holdings Inc. 1, (0.6%) (21.2%) % 8.1x 8.8x 8.7x 9.7x 7.8x Wilh. Wilhelmsen ASA 1, (13.0%) (32.6%) % 16.9x 15.1x 9.8x 7.4x 4.3x Median (12.5%) (26.9%) 65.1% 9.6x 9.8x 9.3x 7.2x 7.3x Equipment Accuride Corp. $389 $2.22 (10.5%) (52.4%) $ % 7.7x 6.6x 5.0x 5.2x 4.7x Dana Holding Corporation 2, (10.6%) (30.1%) % 5.5x 6.1x 4.4x 4.2x 4.4x Gentherm Incorporated 1, % 36.1% % 10.2x 14.6x 11.3x 12.6x 11.3x Spartan Motors Inc (14.3%) (26.9%) % 13.3x 17.0x 11.3x 11.4x 13.2x Wabash National Corp (14.3%) 2.3% % 6.6x 6.8x 4.4x 5.4x 4.1x Median (10.6%) (26.9%) 63.1% 7.7x 6.8x 5.0x 5.4x 4.7x PAGE 8

10 INDUSTRY UPDATE NOVEMBER 2015 PUBLIC COMPARABLES Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) E 2016P '11-14 '14-16P E 2016P '11-14 '14-16P & Logistics Agility Public Warehousing Company K.S.C.P. $4,775 $5,039 $4,873 $4,633 $4,592 $4,803 (1.0%) 1.8% $199 $254 $296 $265 $283 $ % 6.9% Air Transport Services Group, Inc (6.9%) 3.4% (0.3%) 8.1% Atlas Air Worldwide Holdings, Inc. 1,384 1,632 1,643 1,785 1,847 1, % 2.7% % 4.3% CH Robinson Worldwide Inc. 10,336 11,359 12,752 13,470 13,580 14, % 3.5% % 10.1% Deutsche Post AG 68,631 73,191 75,621 68,547 65,243 68,008 (0.0%) (0.4%) 3,384 4,129 5,116 4,469 4,625 5, % 8.2% DSV A/S 7,639 7,937 8,439 7,896 7,396 7, % (1.2%) (0.8%) 5.9% Echo Global Logistics, Inc ,173 1,528 1, % 28.9% % 58.8% Expeditors International of Washington Inc. 6,162 5,992 6,080 6,565 6,735 7, % 3.4% (0.6%) 11.0% FedEx Corporation 39,304 42,680 44,287 45,567 47,609 50, % 4.9% 4,506 5,367 6,112 6,417 6,891 7, % 9.6% Forward Air Corp , % 15.4% % 15.0% Hub Group Inc. 2,752 3,124 3,374 3,571 3,542 3, % 2.0% % 2.8% JB Hunt Transport Services Inc. 3,678 4,058 4,527 5,083 6,196 6, % 15.5% ,057 1, % 11.7% Kuehne + Nagel International AG 17,351 18,699 19,290 17,618 20,186 21, % 10.4% 1, , ,040 1,087 (1.7%) 5.0% Landstar System Inc. 2,594 2,735 2,628 3,145 3,315 3, % 4.4% % 6.8% Panalpina World Transport Holding Ltd. 6,954 7,227 7,589 6,752 6,107 6,436 (1.0%) (2.4%) (11.9%) 21.7% Roadrunner Systems, Inc ,073 1,361 1,873 2,004 2, % 4.5% % 7.6% Ryder System, Inc. 6,051 6,257 6,419 6,639 6,581 6, % 2.1% 1,290 1,396 1,459 1,628 1,799 1, % 8.4% TransForce Inc. 2,378 2,822 2,620 2,817 3,227 3, % 7.8% % 6.6% United Parcel Service, Inc. 53,105 54,127 55,438 58,232 58,602 61, % 2.9% 7,830 3,201 8,868 6,864 9,757 10,421 (4.3%) 23.2% Universal Truckload Services Inc ,037 1,033 1,192 1,121 1, % (1.6%) % (1.9%) UTi Worldwide Inc. 4,550 4,914 4,608 4,436 4,284 3,807 (0.8%) (7.4%) (22.9%) (10.6%) World Fuel Services Corp. 34,623 38,945 41,562 43,386 31,516 31, % (14.5%) % 4.8% XPO Logistics, Inc ,357 7,446 15,165 NM NM 3 (25) (20) ,257 NM NM Total $276,120 $295,078 $306,963 $308,106 $304,205 $325, % 3.9% $22,746 $20,009 $27,672 $25,797 $30,547 $33, % 10.2% ArcBest Corporation $1,908 $2,066 $2,300 $2,613 $2,670 $2, % 3.4% $82 $70 $104 $155 $174 $ % 12.0% Celadon Group Inc , % 32.5% % 32.5% Covenant Group, Inc % 13.2% % 21.2% Heartland Express, Inc % (6.6%) % 5.9% Knight Inc ,208 1, % 18.5% % 16.8% Marten Transport Ltd % 4.3% % 12.6% Old Dominion Freight Line Inc. 1,904 2,135 2,338 2,788 2,986 3, % 7.3% % 12.1% P.A.M. Services, Inc NA NA 3.7% NA NA NA 23.7% NA Saia, Inc. 1,030 1,099 1,139 1,272 1,227 1, % (1.3%) % 1.5% Swift Company 3,779 3,976 4,118 4,299 4,255 4, % 1.6% % 7.8% Universal Truckload Services Inc ,037 1,033 1,192 1,121 1, % (1.6%) % (1.9%) USA Truck Inc % (5.2%) % 1.2% Werner Enterprises Inc. 2,003 2,036 2,029 2,139 2,111 2, % 1.8% % 14.3% YRC Worldwide Inc. 4,869 4,851 4,865 5,069 4,833 4, % (1.4%) NM NM Total $19,987 $20,948 $21,752 $23,955 $23,937 $25, % 5.1% $2,080 $2,415 $2,567 $2,962 $3,452 $3, % 11.3% PAGE 9

11 INDUSTRY UPDATE NOVEMBER 2015 PUBLIC COMPARABLES Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth ($ in millions) E 2016P '11-14 '14-16P E 2016P '11-14 '14-16P & Logistics Rail and Rail Services American Railcar Industries, Inc. $519 $712 $751 $733 $853 $ % 6.0% $55 $145 $179 $204 $270 $250 NM 10.7% Canadian National Railway Company 8,881 9,952 9,954 10,478 9,536 9, % (2.4%) 4,112 4,624 4,568 4,900 4,843 5, % 2.3% Canadian Pacific Railway Limited 4,970 5,568 5,631 5,582 5,101 5, % (2.3%) 1,378 1,778 2,190 2,434 2,459 2, % 4.7% CSX Corp. 11,795 11,763 12,026 12,669 11,934 12, % (2.5%) 4,446 4,523 4,577 4,764 4,845 4, % 2.3% FreightCar America Inc % 10.5% (8) % NM Genesee & Wyoming Inc ,569 1,639 2,008 2, % 16.3% % 6.5% The Greenbrier Companies, Inc. 1,174 1,736 1,685 2,121 2,652 2, % 14.6% NM NM Kansas City Southern 2,098 2,239 2,369 2,577 2,445 2, % (0.4%) ,106 1,089 1, % 3.7% Norfolk Southern Corporation 11,172 11,040 11,245 11,624 10,629 10, % (3.5%) 4,082 4,046 4,179 4,531 4,053 4, % (2.9%) Trinity Industries Inc. 2,938 3,812 4,365 6,170 6,452 5, % (2.0%) ,400 1,644 1, % (0.7%) Union Pacific Corporation 18,508 19,686 20,684 22,560 22,186 22, % 0.7% 7,341 8,505 9,223 10,657 10,297 11, % 1.7% Westinghouse Air Brake Technologies Corporation 1,968 2,391 2,566 3,044 3,318 3, % 7.6% % 10.4% Total $65,339 $70,451 $73,136 $79,795 $77,926 $79, % 3.6% $23,455 $26,129 $27,997 $31,412 $31,254 $32, % 3.9% Aegean Petroleum Network Inc. $6,965 $7,259 $6,335 $6,662 $4,470 $4,604 (1.5%) (16.9%) $75 $85 $75 $98 $115 $ % 17.6% Costamare Inc % 2.5% % 6.1% Diana Shipping Inc (11.8%) (0.4%) (32.9%) (19.5%) Kirby Corporation 1,850 2,113 2,242 2,566 2,184 2, % (8.0%) % (4.7%) Matson, Inc. 1,463 1,560 1,637 1,714 1,907 2, % 10.1% % 27.5% Neptune Orient Lines Limited 9,211 9,512 8,831 8,617 6,041 5,764 (2.2%) (18.2%) (90) NM 23.7% Nordic American Tankers Limited NM NM (21) NM NM Rand Logistics, Inc % 5.0% % 7.6% SEACOR Holdings Inc. 1,032 1,308 1,247 1,319 1,074 1, % (8.6%) % (5.0%) Wilh. Wilhelmsen ASA ,402 2,513 NM NM NM NM Total $21,661 $22,993 $21,559 $22,303 $19,179 $19, % (4.3%) $1,299 $1,658 $1,624 $2,080 $2,534 $2, % 6.7% Equipment Accuride Corp. $805 $795 $643 $705 $688 $693 (4.3%) (0.9%) $74 $65 $43 $75 $82 $89 0.2% 9.0% Dana Holding Corporation 7,544 7,224 6,769 6,617 6,052 6,110 (4.3%) (3.9%) (0.7%) (0.7%) Gentherm Incorporated % 8.0% % 11.1% Spartan Motors Inc % 4.5% (12.6%) 7.5% Wabash National Corp. 1,187 1,462 1,636 1,863 1,990 1, % 2.6% NM 14.3% Total $10,331 $10,506 $10,179 $10,504 $10,126 $10, % 2.1% $888 $1,008 $981 $1,084 $1,128 $1, % 8.3% PAGE 10

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