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www.harriswilliams.com
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 andregulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.
TRANSPORTATION & LOGISTICS
0
INDUSTRY UPDATE │ MAY 2015
PAGE |
www.harriswilliams.com
TRANSPORTATION & LOGISTICS OVERVIEW
1
CONTENTS
M&A TRANSACTIONS
PUBLIC MARKETS OVERVIEW
STOCK PRICE PERFORMANCE
OUR GROUP
CONTACTS
UNITED STATES
Frank MountcastleManaging [email protected]+1 (804) 915-0124
Jason BassManaging [email protected]+1 (804) 915-0132
Joe ConnerManaging Director [email protected]+1 (804) 915-0151
Jeff BurkettDirector [email protected] +1 (804) 932-1334
Jershon JonesDirector [email protected]+1 (804) 932-1356
Jeff KiddVice President [email protected] +1 (804) 915-0178
EUROPE
Jeffery PerkinsManaging Director [email protected]+49 (0) 69 3650638 00
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ MAY 2015
LOGISTICS | INVESTMENTS MADE TO BUILD INTEGRATED COLD CHAIN
The global cold chain is in the midst of rapid expansion. Growing volumes ofperishable imports and exports are impacting stakeholders throughout the globalcold chain, especially as more refrigerated cargo migrates to the intermodalsector. One of the key takeaways for beneficial cargo owners is that stakeholdersview refrigerated cargo as a growing and profitable segment of their business andsizable investments are occurring on multiple fronts to build and strengthen theintegrated global cold chain.
Journal of Commerce
TRUCKING | REVENUE FOR U.S. TRUCKING COMPANIES REACHES RECORD
A shortage of drivers and persistently low fuel charges are driving greenbacks tothe pockets of trucking companies, as the industry reported a record $700.4 billionin revenue in 2014. Trucking revenue rose 2.6% last year, according to theAmerican Trucking Associations’ “American Trucking Trends” report.
The Wall Street Journal
MARINE | STRONG U.S. DOLLAR AWAKENS NORTH ATLANTIC TRADE
Evidence continues to mount that the North Atlantic, for long the “sleeping dog“of container trades, is “waking up,” as rising European imports on the back of astrong U.S. dollar lift freight rates and attract new services, according to DrewryMaritime Research. Volumes on the head-haul westbound leg rose 8.4 percent inthe first quarter from a year ago, matching the increase recorded through 2014,the London-based consultant said.
Journal of Commerce
AIR | AIR FREIGHT RESUMES MODEST GROWTH TREND
The IATA released data for global air freight markets, showing a modest 1.6% rise involumes in March compared to a year ago, measured in Freight Tonne Kilometers(FTK). The industry’s March performance stands in sharp contrast to theexceptionally strong 12.2% rise reported for February.
IATA
HARRIS WILLIAMS & CO. DEAL SPOTLIGHT
has been acquired by
a portfolio company ofHarris Williams & Co. advised Marquette TransportationCompany (“Marquette”), a portfolio company of KRGCapital Partners, on its sale to BDT Capital Partners.Marquette is a leading provider of towing services on theinland waterways of the United States.
Press Release
Marquette Transportation Company
RAIL | AMTRAK ORDERED TO IMPROVE SAFETY ALONG NE CORRIDOR
The Federal Railroad Administration on Saturday said it ordered Amtrak to takeimmediate steps to improve safety along its Northeast Corridor betweenWashington and Boston, including modifying a signal system that safety expertssaid could have averted the deadly derailment in Philadelphia this week.
The Wall Street Journal
WHAT WE’RE READING
PAGE |
Date Sector Target Business Description Acquirer
Pending Logistics Quality Distribution Inc. Operates the largest chemical bulk logistics network in N.A. and
provides intermodal tank container and depot serv ices.
Apax Partners LLP
Pending Logistics Borderfree, Inc. Prov ides cross-border e-commerce solutions including, customs
clearance, fulfillment, marketing, and multicurrency pricing.
Pitney Bowes
International Holdings,
Inc.
Pending Logistics Bridge Terminal
Transport, Inc.
Prov ides asset-light drayage serv ices. XPO Logistics, Inc.
Pending Logistics Norbert Dentressangle
S.A.
Prov ides contract logistics, e-commerce fulfillment, freight brokerage
and transportation, and global forwarding serv ices.
XPO Logistics, Inc.
Pending Air WFS Global SAS Provides cargo handling, ground handling, and technical serv ices to
airlines and airports globally.
Platinum Equity, LLC
Pending Equipment B&G Crane Serv ice, LLC Supplier of operated and maintained crane serv ices, specialized
rigging, and heavy haul transportation in Louisiana and Texas.
NCSG Crane & Heavy
Haul Holdings Inc.
Pending Logistics Command
Transportation, LLC
Provides truckload brokerage and non-asset based transportation
serv ices.
Echo Global Logistics, Inc.
Pending Marine Baltic Trading Limited Transports iron ore, coal, grain, steel products, and other drybulk
cargo along global shipping routes.
Genco Shipping & Trading
Ltd.
Pending Logistics TNT Express N.V. Prov ides express delivery serv ices in Europe, the Middle East and
Africa, Asia-Pacific, and the Americas.
FedEx Corporation
Pending Logistics Air Medical Group
Holdings, Inc.
Prov ides air ambulance serv ices. KKR & Co.
Pending Logistics Toll Holdings Limited Provides integrated logistics serv ices in the Asia-Pacific region and
internationally.
Japan Post Bank Co., Ltd.
Pending Logistics APL Logistics Ltd Provides global supply chain and logistics serv ices across all modes
of transportation.
Kintetsu World Express,
Inc.
Pending Marine Horizon Lines, Inc. Engages in Jones Act container shipping with primary serv ice to ports
within the continental United States, Alaska, Hawaii, and Puerto Rico.
Matson Navigation
Company, Inc.
5/8/2015 Logistics Caribbean Shipping
Serv ices, Inc.
Prov ides refrigerated freight forwarding serv ices in the Puerto Rico
market.
American Fast Freight, Inc.
5/8/2015 Logistics Transfreight North
America
Provides third-party logistics and supply chain solutions. Penske Logistics, Inc.
5/5/2015 Logistics SEKO Worldwide, LLC Provides tech-enabled supply chain solutions, including
transportation management, contract logistics, forwarding and
warehousing serv ices.
Greenbriar Equity Group
LLC
5/1/2015 Equipment Dakota Trailer
Manufacturing, Inc.
Manufactures aluminum grain trailers for the agricultural market. Trail King Industries, Inc.
3/31/2015 Marine Marquette
Transportation Company
Provides towing serv ices on inland waterways of the United States. BDT Capital Partners, LLC
M&A TRANSACTIONS
2
RECENT M&A TRANSACTIONS1,2
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ MAY 2015
PAGE |
PUBLIC MARKETS OVERVIEW
3
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ MAY 2015
TEV / LTM EBITDA TEV / 2015E EBITDA
AVERAGE REVENUE GROWTH (2011 – 2014) AVERAGE REVENUE GROWTH (2014 – 2016P)
AVERAGE EBITDA GROWTH (2011 – 2014) AVERAGE EBITDA GROWTH (2014 – 2016P)
7.2x
7.3x
9.2x
10.9x
11.3x
Transportation
Equipment
Trucking
Rail & Rail Services
Marine
Logistics Providers
6.1x
6.6x
9.0x
9.2x
10.6x
Transportation
Equipment
Trucking
Rail & Rail Services
Marine
Logistics Providers
3.5%
6.4%
7.7%
8.7%
11.5%
Marine
Logistics Providers
Trucking
Transportation
Equipment
Rail & Rail Services
1.1%
5.1%
6.9%
8.1%
8.4%
Marine
Transportation
Equipment
Logistics Providers
Rail & Rail Services
Trucking
6.8%
7.4%
8.1%
13.0%
17.5%
Logistics Providers
Transportation
Equipment
Marine
Trucking
Rail & Rail Services
11.2%
11.7%
13.6%
15.0%
15.4%
Rail & Rail Services
Transportation
Equipment
Marine
Logistics Providers
Trucking
PAGE |
STOCK PRICE PERFORMANCE
4
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ MAY 2015
(Indexed to May 19, 2014)
TRAILING TWELVE MONTHS
MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH)
(4.9%)
(3.6%)
1.5%
5.0%
5.7%
Rail & Rail Services
Trucking
Marine
Logistics Providers
Transportation
Equipment
(7.1%)
2.5%
5.4%
7.4%
11.1%
Marine
Rail & Rail Services
Transportation
Equipment
Logistics Providers
Trucking
(20%)
(15%)
(10%)
(5%)
0%
5%
10%
15%
20%
25%
30%
5/19/14 8/19/14 11/19/14 2/19/15 5/19/15
Logistics Providers Trucking Rail & Rail Services
Marine Transportation Equipment S&P 500 Index
PAGE |
OUR GROUP
Harris Williams & Co. is a leading advisor to the transportation and logistics M&A market. Our Transportation & LogisticsGroup has experience across a broad range of sectors, including third-party logistics, rail and rail services, marinetransportation, transportation equipment, niche transportation, automotive and heavy duty vehicle, and airport andaviation services.
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ MAY 2015
RECENTLY CLOSED T&L TRANSACTIONS
DEEP EXPERIENCE ACROSS T&L SECTORS
MARINE TRANSPORTATION
NICHE TRANSPORTATION
TRANSPORTATION EQUIPMENT
RAIL & RAIL SERVICES
AUTOMOTIVE & HEAVY DUTY
VEHICLE
THIRD-PARTY LOGISTICS
AIRPORT & AVIATION SERVICES
5
has been acquired by
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company ofa portfolio company of
has been acquired byhas been acquired by
a portfolio company of
has been acquired by
a portfolio company of
and
in partnership with
and
RCL Services Group
has sold
tohas been acquired by
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
Energy & Power
IndustrialsHealthcare & Life Sciences
Transportation & Logistics
Aerospace, Defense & Government
Services
Business Services
Building Products & Materials
Technology, Media & Telecom
Specialty Distribution
Consumer
PAGE |
HARRIS WILLIAMS & CO. OFFICE LOCATIONS
UNITED STATES EUROPE
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Transportation & Logistics
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 andcollaboration across the firm, and our commitment to learning what makes them unique. For moreinformation, visit our website at www.harriswilliams.com/industries.
OUR FIRM
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ MAY 2015
6
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PUBLIC COMPARABLES
7
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ MAY 2015
Stock Performance
Stock Price Change from 52-Week TEV / EBITDA EBITDA
($ in millions except per share data) TEV Current Prior Month Prior Year High % of High May-14 Nov-14 Current 2014 2015E
Transportation & Logistics
TEV / LTM EBITDA as of
Logistics Providers
Agility Public Warehousing Company KSC $2,650 $2.55 0.2% (10.0%) $2.65 96.2% 9.4x 9.9x 10.2x 10.0x 9.3x
Air Transport Services Group, Inc. 1,022 10.82 15.7% 24.1% 10.75 100.7% 5.7x 5.0x 5.5x 5.7x 5.4x
Atlas Air Worldwide Holdings, Inc. 2,980 58.76 35.8% 59.8% 57.98 101.3% 8.3x 8.0x 8.1x 8.7x 7.6x
CH Robinson Worldwide Inc. 10,533 65.41 (4.6%) 11.1% 77.49 84.4% 13.2x 14.9x 12.8x 13.2x 12.0x
Deutsche Post AG 42,448 32.17 1.2% (11.7%) 35.41 90.9% 9.8x 9.5x 9.1x 9.6x 8.3x
DSV A/S 6,868 34.84 7.2% 7.1% 36.73 94.9% 12.3x 12.0x 15.5x 14.1x 13.1x
Echo Global Logistics, Inc. 878 31.00 21.6% 67.7% 34.29 90.4% 14.8x 19.7x NM NM 13.9x
Expeditors International of Washington Inc. 8,141 47.95 5.2% 3.7% 49.51 96.9% 13.0x 12.0x 12.0x 12.6x 11.1x
FedEx Corporation 54,026 177.18 5.5% 28.2% 183.51 96.6% 7.2x 8.2x 8.0x 9.0x 7.8x
Forward Air Corp. 1,731 53.56 5.5% 24.6% 57.65 92.9% 12.0x 12.2x 14.2x 13.7x 11.1x
Hub Group Inc. 1,579 43.34 16.3% (4.0%) 51.47 84.2% 12.3x 9.8x 11.6x 11.7x 12.7x
JB Hunt Transport Services Inc. 11,243 88.97 (1.3%) 15.7% 93.50 95.2% 11.7x 11.6x 11.5x 12.1x 10.6x
Kuehne + Nagel International AG 16,146 145.54 (1.2%) 9.7% 161.15 90.3% 13.3x 14.4x 16.0x 16.4x 14.6x
Landstar System Inc. 2,840 64.43 0.5% 2.1% 81.80 78.8% 13.6x 14.8x 11.2x 11.4x 10.4x
Panalpina World Transport Holding Ltd. 2,969 140.34 (4.8%) (7.5%) 161.69 86.8% 18.7x 18.4x 19.3x 19.8x 13.2x
Roadrunner Transportation Systems, Inc. 1,419 26.14 6.3% 5.8% 29.02 90.1% 12.3x 11.6x 10.9x 11.8x 9.4x
Ryder System, Inc. 9,794 96.84 2.5% 17.2% 100.64 96.2% 5.9x 5.9x 5.9x 6.0x 5.4x
TransForce Inc. 3,764 22.83 (4.4%) 7.4% 26.00 87.8% 10.0x 10.9x 10.4x 10.4x 8.5x
United Parcel Service, Inc. 98,585 101.91 6.8% 0.6% 114.40 89.1% 11.1x 12.9x 14.0x 14.4x 10.2x
Universal Truckload Services Inc. 831 20.73 (2.9%) (11.3%) 29.06 71.3% 9.0x 9.1x 7.1x 7.2x 6.9x
UTi Worldwide Inc. 1,528 9.67 5.0% 1.8% 14.75 65.6% 15.6x NM NM 18.1x 16.1x
World Fuel Services Corp. 4,029 51.38 (8.5%) 14.3% 58.50 87.8% 11.7x 11.5x 12.2x 12.6x 11.3x
XPO Logistics, Inc. 3,976 50.04 19.0% 114.7% 50.24 99.6% NM NM NM NM 13.8x
Median 5.0% 7.4% 90.4% 11.9x 11.6x 11.3x 11.8x 10.6x
Trucking
ArcBest Corporation $902 $36.31 (2.3%) (10.1%) $47.52 76.4% 8.7x 7.0x 5.5x 5.8x 4.7x
Celadon Group Inc. 1,059 25.30 (6.7%) 15.6% 29.15 86.8% 8.1x 8.1x 9.1x 10.2x 7.9x
Con-way Inc. 2,752 42.48 1.0% (5.1%) 53.54 79.3% 6.7x 6.2x 5.4x 5.6x 4.9x
Covenant Transportation Group, Inc. 705 30.16 (6.6%) 212.2% 36.82 81.9% 5.3x 7.4x 7.0x 7.9x 5.8x
Heartland Express, Inc. 1,810 21.21 (7.4%) 4.1% 27.96 75.9% 11.6x 11.7x 8.7x 8.7x 7.4x
Knight Transportation Inc. 2,555 30.31 (4.4%) 33.1% 34.73 87.3% 9.4x 11.8x 9.9x 10.7x 8.1x
Marten Transport Ltd. 736 22.56 (4.5%) 1.0% 25.08 90.0% 6.7x 6.8x 6.1x 6.4x 5.2x
Old Dominion Freight Line Inc. 6,236 72.30 (0.7%) 17.5% 81.48 88.7% 11.4x 12.6x 10.1x 10.6x 9.1x
P.A.M. Transportation Services, Inc. 497 57.10 (0.6%) 139.2% 67.61 84.5% 5.4x 7.2x 8.3x 9.1x NA
Quality Distribution Inc. 769 15.80 54.4% 20.0% 15.86 99.6% 10.6x 9.9x 11.2x 10.9x 9.0x
Saia, Inc. 1,148 42.16 0.3% 0.5% 57.60 73.2% 8.6x 9.8x 7.5x 7.9x 6.6x
Swift Transportation Company 4,904 25.11 (1.5%) 13.8% 29.44 85.3% 8.3x 9.2x 8.0x 8.4x 7.3x
Universal Truckload Services Inc. 831 20.73 (2.9%) (11.3%) 29.06 71.3% 9.0x 9.1x 7.1x 7.2x 6.9x
USA Truck Inc. 357 23.93 (11.4%) 56.1% 32.14 74.5% 7.8x 6.5x 5.6x 6.0x 5.6x
Werner Enterprises Inc. 2,015 27.82 (8.8%) 8.4% 33.42 83.3% 6.3x 6.8x 6.0x 6.3x 5.3x
YRC Worldwide Inc. 1,440 14.90 (7.3%) (28.8%) 29.21 51.0% 10.9x 9.4x 6.1x 7.3x 4.7x
Median (3.6%) 11.1% 82.6% 8.4x 8.6x 7.3x 7.9x 6.6x
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PUBLIC COMPARABLES
8
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ MAY 2015
Rail and Rail Services
American Railcar Industries, Inc. $1,536 $57.36 9.8% (6.3%) $82.82 69.3% 7.9x 8.0x 6.7x 7.5x 6.1x
Canadian National Railway Company 57,773 61.68 (7.0%) 4.4% 73.14 84.3% 12.6x 13.5x 12.3x 11.8x 11.1x
Canadian Pacific Railway Limited 34,707 177.53 (6.4%) 10.9% 203.71 87.2% 14.9x 16.4x 14.7x 14.3x 12.1x
CSX Corp. 44,247 35.73 7.3% 22.1% 37.99 94.1% 8.6x 9.7x 9.1x 9.3x 8.9x
FreightCar America Inc. 217 24.92 (15.4%) (0.6%) 37.48 66.5% NM NM 9.0x 12.7x 5.8x
Genesee & Wyoming Inc. 7,071 87.42 (5.7%) (9.4%) 106.02 82.5% 12.8x 12.7x 12.0x 12.3x 10.9x
The Greenbrier Companies, Inc. 2,132 62.60 (1.4%) 22.7% 78.32 79.9% 10.4x 8.6x 6.6x 9.0x 5.2x
Kansas City Southern 12,841 94.65 (9.4%) (8.6%) 126.49 74.8% 13.7x 14.9x 11.6x 11.6x 11.2x
Norfolk Southern Corporation 38,552 97.97 (2.7%) 0.6% 117.64 83.3% 9.2x 9.7x 8.6x 8.5x 8.9x
Trinity Industries Inc. 8,023 31.13 (12.8%) (23.2%) 50.77 61.3% 7.9x 6.7x 5.6x 5.7x 5.1x
Union Pacific Corporation 101,731 103.95 (4.1%) 6.5% 124.52 83.5% 10.2x 11.4x 9.4x 9.5x 9.0x
Westinghouse Air Brake Technologies Corporation 10,041 102.14 7.4% 37.3% 105.10 97.2% 14.5x 15.9x 16.2x 17.1x 15.0x
Median (4.9%) 2.5% 82.9% 10.4x 11.4x 9.2x 10.6x 9.0x
Marine
Aegean Marine Petroleum Network Inc. $1,325 $14.80 3.0% 59.0% $15.71 94.2% 14.1x 13.4x 12.0x 12.0x 10.1x
Costamare Inc. 3,137 20.11 3.1% (6.6%) 24.94 80.6% 12.2x 10.3x 9.8x 9.9x 9.4x
Diana Shipping Inc. 900 6.95 14.3% (36.4%) 12.20 57.0% NM 16.9x 18.8x 18.0x NM
Kirby Corporation 5,379 81.63 (0.2%) (22.8%) 124.12 65.8% 11.3x 10.4x 8.3x 8.3x 9.2x
Matson, Inc. 1,927 43.29 7.2% 83.6% 43.84 98.7% 7.2x 9.4x 8.2x 9.5x 8.3x
Neptune Orient Lines Limited 6,389 0.78 (6.6%) (0.3%) 0.91 85.8% NM NM 15.1x NM 11.3x
Nordic American Tankers Limited 1,276 12.43 (1.9%) 49.8% 13.15 94.5% NM NM 15.3x NM 7.7x
Rand Logistics, Inc. 246 3.40 0.0% (43.5%) 6.73 50.5% 8.9x 9.3x 7.7x 8.4x 7.0x
SEACOR Holdings Inc. 1,852 73.43 (3.3%) (7.7%) 84.25 87.2% 9.8x 8.5x 8.7x 7.6x 9.3x
Wilh. Wilhelmsen ASA 2,504 6.76 6.4% (22.9%) 7.73 87.4% NM 18.4x 16.3x 17.9x 5.7x
Median 1.5% (7.1%) 86.5% 10.5x 10.3x 10.9x 9.7x 9.2x
Transportation Equipment
Accuride Corp. $499 $3.97 (11.0%) (24.5%) $5.90 67.3% 10.7x 7.8x 6.4x 6.7x 5.5x
Dana Holding Corporation 4,283 22.08 6.0% 5.4% 24.82 89.0% 5.5x 5.6x 6.1x 6.1x 5.8x
Gentherm Incorporated 1,966 54.20 7.3% 36.2% 55.50 97.7% 14.7x 11.9x 14.5x 14.6x 13.0x
Spartan Motors Inc. 151 4.60 (4.8%) (6.7%) 5.71 80.6% 15.2x 15.0x 16.3x 16.0x 14.2x
Wabash National Corp. 1,210 14.72 5.7% 11.2% 15.21 96.8% 8.4x 6.8x 7.2x 7.5x 6.1x
Median 5.7% 5.4% 89.0% 10.7x 7.8x 7.2x 7.5x 6.1x
Stock Performance
Stock Price Change from 52-Week TEV / EBITDA EBITDA
($ in millions except per share data) TEV Current Prior Month Prior Year High % of High May-14 Nov-14 Current 2014 2015E
Transportation & Logistics
TEV / LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
9
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ MAY 2015
Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth
($ in millions) 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P
Transportation & Logistics
Logistics Providers
Agility Public Warehousing Company KSC $4,775 $5,039 $4,873 $4,633 $4,632 $4,844 (1.0%) 2.3% $199 $254 $296 $265 $285 $305 10.0% 7.4%
Air Transport Services Group, Inc. 730 607 580 590 605 623 (6.9%) 2.8% 181 163 158 179 191 199 (0.3%) 5.3%
Atlas Air Worldwide Holdings, Inc. 1,384 1,632 1,643 1,785 1,823 1,860 8.8% 2.1% 203 296 307 344 378 374 19.1% 4.3%
CH Robinson Worldwide Inc. 10,336 11,359 12,752 13,470 14,270 15,331 9.2% 6.7% 720 751 731 797 880 944 3.4% 8.9%
Deutsche Post AG 68,631 73,191 75,621 68,547 68,124 70,518 (0.0%) 1.4% 3,384 4,129 5,108 4,424 5,137 5,652 9.3% 13.0%
DSV A/S 7,639 7,937 8,439 7,896 7,883 8,170 1.1% 1.7% 498 519 543 486 525 558 (0.8%) 7.2%
Echo Global Logistics, Inc. 603 758 884 1,173 1,376 1,880 24.9% 26.6% 23 27 27 36 63 97 16.5% 64.3%
Expeditors International of Washington Inc. 6,162 5,992 6,080 6,565 7,111 7,609 2.1% 7.7% 655 571 600 644 733 791 (0.6%) 10.8%
FedEx Corporation 39,304 42,680 44,287 45,567 47,627 50,600 5.1% 5.4% 4,506 5,367 5,597 6,033 6,868 7,875 10.2% 14.2%
Forward Air Corp. 509 584 652 781 994 1,087 15.4% 18.0% 97 104 107 127 158 184 9.4% 20.7%
Hub Group Inc. 2,752 3,124 3,374 3,571 3,673 3,922 9.1% 4.8% 112 134 138 135 122 140 6.4% 1.7%
JB Hunt Transport Services Inc. 3,678 4,058 4,527 5,083 6,465 7,263 11.4% 19.5% 658 759 830 926 1,060 1,179 12.1% 12.8%
Kuehne + Nagel International AG 17,351 18,699 19,290 17,618 22,948 23,938 0.5% 16.6% 1,038 979 1,070 987 1,108 1,181 (1.7%) 9.4%
Landstar System Inc. 2,594 2,735 2,628 3,145 3,373 3,620 6.6% 7.3% 204 223 201 250 273 298 6.9% 9.2%
Panalpina World Transport Holding Ltd. 6,954 7,227 7,589 6,752 7,166 7,509 (1.0%) 5.5% 220 92 161 150 226 280 (11.9%) 36.6%
Roadrunner Transportation Systems, Inc. 844 1,073 1,361 1,873 2,144 2,301 30.5% 10.8% 54 81 99 121 151 167 30.9% 17.7%
Ryder System, Inc. 6,051 6,257 6,419 6,639 6,707 7,135 3.1% 3.7% 1,290 1,396 1,459 1,628 1,796 1,939 8.1% 9.2%
TransForce Inc. 2,378 2,822 2,620 2,817 3,663 3,758 5.8% 15.5% 313 392 318 361 444 481 4.9% 15.4%
United Parcel Service, Inc. 53,105 54,127 55,438 58,232 59,672 62,754 3.1% 3.8% 7,830 3,201 8,868 6,864 9,649 10,371 (4.3%) 22.9%
Universal Truckload Services Inc. 991 1,037 1,033 1,192 1,175 1,239 6.3% 2.0% 84 96 105 115 119 130 11.1% 6.6%
UTi Worldwide Inc. 4,550 4,914 4,608 4,436 4,284 4,224 (0.8%) (2.4%) 183 213 146 84 96 127 NM 22.8%
World Fuel Services Corp. 34,623 38,945 41,562 43,386 31,998 35,056 7.8% (10.1%) 291 287 301 319 362 377 3.0% 8.7%
XPO Logistics, Inc. 177 279 702 2,357 4,043 6,186 NM NM 3 (25) (20) 95 273 596 NM NM
Total $276,120 $295,077 $306,963 $308,106 $311,752 $331,425 6.4% 6.9% $22,746 $20,009 $27,149 $25,368 $30,899 $34,245 6.8% 15.0%
Trucking
ArcBest Corporation $1,908 $2,066 $2,300 $2,613 $2,760 $2,952 11.1% 6.3% $82 $70 $104 $155 $194 $226 23.5% 20.9%
Celadon Group Inc. 467 475 489 615 888 999 9.6% 27.4% 89 103 106 104 136 155 5.4% 21.8%
Con-way Inc. 5,290 5,580 5,473 5,806 5,963 6,291 3.2% 4.1% 386 428 427 493 557 615 8.5% 11.7%
Covenant Transportation Group, Inc. 512 527 539 579 735 789 4.2% 16.8% 63 71 65 89 123 133 11.8% 22.4%
Heartland Express, Inc. 529 546 582 871 780 845 18.1% (1.5%) 132 138 149 208 244 273 16.3% 14.5%
Knight Transportation Inc. 697 752 792 926 1,272 1,417 9.9% 23.7% 169 184 192 239 314 354 12.3% 21.7%
Marten Transport Ltd. 604 638 659 673 684 735 3.7% 4.5% 97 101 110 115 142 153 5.9% 15.3%
Old Dominion Freight Line Inc. 1,904 2,135 2,338 2,788 3,066 3,438 13.6% 11.1% 326 396 460 587 683 784 21.6% 15.6%
P.A.M. Transportation Services, Inc. 284 298 313 317 NA NA 3.7% NA 29 41 50 55 NA NA 23.7% NA
Quality Distribution Inc. 628 719 805 854 1,020 1,095 10.8% 13.2% 70 69 72 70 85 92 0.0% 14.7%
Saia, Inc. 1,030 1,099 1,139 1,272 1,251 1,346 7.3% 2.9% 65 107 126 145 170 194 30.3% 15.8%
Swift Transportation Company 3,779 3,976 4,118 4,299 4,417 4,775 4.4% 5.4% 549 573 577 583 673 743 2.0% 12.9%
Universal Truckload Services Inc. 991 1,037 1,033 1,192 1,175 1,239 6.3% 2.0% 84 96 105 115 119 130 11.1% 6.6%
USA Truck Inc. 411 512 555 602 580 644 13.6% 3.4% 33 20 35 60 64 71 22.0% 8.6%
Werner Enterprises Inc. 2,003 2,036 2,029 2,139 2,169 2,304 2.2% 3.8% 311 318 296 318 382 410 0.7% 13.6%
YRC Worldwide Inc. 4,869 4,851 4,865 5,069 5,084 5,312 1.4% 2.4% 49 198 199 197 306 355 NM NM
Total $25,905 $27,247 $28,030 $30,615 $31,843 $34,180 7.7% 8.4% $2,536 $2,913 $3,073 $3,532 $4,192 $4,687 13.0% 15.4%
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PUBLIC COMPARABLES
10
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ MAY 2015
Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth
($ in millions) 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P
Transportation & Logistics
Rail and Rail Services
American Railcar Industries, Inc. $519 $712 $751 $733 $925 $852 12.2% 7.8% $55 $145 $179 $204 $254 $241 NM 8.7%
Canadian National Railway Company 8,881 9,952 9,954 10,478 10,661 11,404 5.7% 4.3% 4,112 4,624 4,568 4,900 5,181 5,604 6.0% 6.9%
Canadian Pacific Railway Limited 4,970 5,568 5,631 5,582 5,853 6,351 3.9% 6.7% 1,378 1,778 2,190 2,434 2,843 3,140 20.9% 13.6%
CSX Corp. 11,795 11,763 12,026 12,669 12,519 13,034 2.4% 1.4% 4,446 4,523 4,577 4,764 4,953 5,295 2.3% 5.4%
FreightCar America Inc. 487 677 290 599 777 779 7.1% 14.1% 12 41 (8) 17 36 54 12.2% NM
Genesee & Wyoming Inc. 829 875 1,569 1,639 2,155 2,458 25.5% 22.5% 252 277 534 574 651 749 31.6% 14.3%
The Greenbrier Companies, Inc. 1,174 1,736 1,685 2,121 2,636 2,798 21.8% 14.9% 97 152 145 237 409 467 34.5% 40.3%
Kansas City Southern 2,098 2,239 2,369 2,577 2,589 2,790 7.1% 4.0% 772 872 962 1,106 1,152 1,309 12.7% 8.8%
Norfolk Southern Corporation 11,172 11,040 11,245 11,624 11,142 11,729 1.3% 0.5% 4,073 4,036 4,169 4,522 4,358 4,751 3.5% 2.5%
Trinity Industries Inc. 2,938 3,812 4,365 6,170 7,057 6,895 28.1% 5.7% 575 730 963 1,400 1,577 1,488 34.6% 3.1%
Union Pacific Corporation 18,508 19,686 20,684 22,560 24,000 25,638 6.8% 6.6% 7,341 8,505 9,223 10,657 11,309 12,245 13.2% 7.2%
Westinghouse Air Brake Technologies Corporation 1,968 2,391 2,566 3,044 3,361 3,627 15.7% 9.1% 334 436 485 588 670 738 20.8% 12.0%
Total $65,339 $70,451 $73,136 $79,795 $83,674 $88,356 11.5% 8.1% $23,446 $26,119 $27,987 $31,403 $33,392 $36,081 17.5% 11.2%
Marine
Aegean Marine Petroleum Network Inc. $6,965 $7,259 $6,335 $6,662 $5,322 $5,974 (1.5%) (5.3%) $75 $85 $75 $110 $133 $143 13.4% 14.1%
Costamare Inc. 382 386 414 484 490 510 8.2% 2.6% 236 238 258 318 333 354 10.4% 5.6%
Diana Shipping Inc. 256 221 164 176 163 188 (11.8%) 3.6% 166 124 53 50 35 49 (32.9%) (1.6%)
Kirby Corporation 1,850 2,113 2,242 2,566 2,265 2,338 11.5% (4.5%) 445 509 582 647 584 621 13.3% (2.0%)
Matson, Inc. 1,463 1,560 1,637 1,714 1,815 2,061 5.4% 9.7% 142 175 172 203 231 272 12.8% 15.7%
Neptune Orient Lines Limited 9,211 9,512 8,831 8,617 7,072 7,491 (2.2%) (6.8%) (90) 96 131 294 568 610 NM NM
Nordic American Tankers Limited 95 131 244 351 240 239 NM NM 10 13 (21) 58 166 152 NM 61.2%
Rand Logistics, Inc. 98 109 119 129 149 156 9.9% 9.7% 16 28 25 29 35 39 23.3% 14.9%
SEACOR Holdings Inc. 1,032 1,308 1,247 1,319 1,199 1,322 8.5% 0.1% 155 164 197 245 199 248 16.4% 0.6%
Wilh. Wilhelmsen ASA 309 395 325 285 2,476 2,582 NM NM 147 227 154 140 440 454 NM NM
Total $21,661 $22,993 $21,559 $22,304 $21,193 $22,861 3.5% 1.1% $1,301 $1,658 $1,627 $2,094 $2,725 $2,940 8.1% 13.6%
Transportation Equipment
Accuride Corp. $805 $795 $643 $705 $751 $746 (4.3%) 2.9% $74 $65 $43 $75 $90 $93 0.2% 11.9%
Dana Holding Corporation 7,544 7,224 6,769 6,617 6,355 6,700 (4.3%) 0.6% 720 753 706 705 740 805 (0.7%) 6.9%
Gentherm Incorporated 370 555 662 811 909 1,028 30.0% 12.5% 46 67 84 135 151 181 42.6% 15.9%
Spartan Motors Inc. 426 471 470 507 535 570 6.0% 6.1% 14 16 6 9 11 16 (12.6%) NM
Wabash National Corp. 1,187 1,462 1,636 1,863 2,025 1,996 16.2% 3.5% 33 108 142 161 199 201 NM 11.9%
Total $10,331 $10,506 $10,179 $10,504 $10,575 $11,040 8.7% 5.1% $888 $1,008 $981 $1,084 $1,190 $1,297 7.4% 11.7%
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TRANSPORTATION & LOGISTICS
SOURCES
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ MAY 2015
1. Capital IQ.
2. MergerMarket.
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DISCLOSURES
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