transportation & logistics - harris williams
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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 │ JUNE 2015
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www.harriswilliams.com
LOGISTICS | INVESTMENTS MADE TO BUILD INTEGRATED COLD CHAIN
WHAT WE'RE READING
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 │ JUNE 2015
TRUCKING | TRUCKING COMES UP SHORT IN SEARCH FOR YOUNG DRIVERS
The trucking industry is beginning to feel the impact of a shortfall of some 35,000 to40,000 drivers needed to move goods, according to the American TruckingAssociation. Some believe this will grow to as much as 240,000 drivers by 2022.Experts say there are many reasons behind the shortage, including more stringentwork requirements as safety regulations have expanded and low pay that, despiterecent gains, has made the tough working conditions tougher to bear.
The Wall Street Journal
MARINE | SMALL SHIP CAPACITY DECLINE COULD SPARK NEWBUILD SURGE
Although the overall capacity of the container ship fleet is growing, the number ofsmaller capacity ships has declined, which could trigger newbuilding orders in thesector, a senior shipping analyst said. "Since 2009, the size of the fleets of containerships between 1,000 TEUs and 3,000 TEUs of capacity have all experienced a fallingtrend,” said Peter Sand, chief shipping analyst at BIMCO in Denmark. “Since early2013, the decline has increased. Today those fleets are on average 6 percentsmaller than just 2 ½ years ago, and the trend is set to continue.”
Journal of Commerce
AIR | AIRLINES' PROFITS IMPROVE BUT NOT IN CARGO
Tony Tyler (IATA CEO), commented that “for the first time in IATA’s records, theindustry as a whole is earning its cost of capital…[but] cargo remains in thedoldrums.” Much of the improvement in the sector’s profitability was driven by thefall in the price of fuel, with US airlines benefitting most.
Transport Intelligence
RAIL | 2015 RAIL ROUNDTABLE: BIG INVESTMENT IS PAYING OFF
Faced with service issues and declining performance metrics, rail and intermodalproviders are keeping investment levels at record highs as they continue to workthrough the current challenges to get back to prior performance levels. Accordingto the Association of American Railroads, the U.S. freight railroads are set to spend$29 billion on the country’s rail network in 2015 and hire roughly 15,000 newemployees.
Logistics Management
The number of job openings at U.S. transportation, warehousing, and utilitycompanies jumped 70.3 percent year-over-year in April, climbing to 269,000 byApril 31, the highest point in a decade, according to data released today by theU.S. Bureau of Labor Statistics. The growth in job openings and hiring at transportand logistics operators in the first four months of 2015 indicates confidence thatmore goods — whether imports, exports or domestic, industrial or consumer — willbe moving across the U.S. this summer and into the holiday season.
Journal of Commerce
LOGISTICS | U.S. TRANSPORT, WAREHOUSE JOB OPENINGS SURGE
LOGISTICS | RETAILERS INVESTING HEAVILY IN OMNI-CHANNEL SELLING
A new JDA study reveals an enormous amount of money, energy, and timeretailers and consumer goods manufacturers are spending to improve their omni-channel sales capabilities. While this may not be surprising given the currentbusiness environment, the JDA report reveals a surprising fact: despite thesesignificant investments, only 16 percent of companies say they can fulfill omni-channel demand profitably today.
Supply Chain Digital
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M&A TRANSACTIONS
2
RECENT M&A TRANSACTIONS1,2
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ JUNE 2015
Announced Sector Target Business Description Acquirer
6/19/2015 Logistics Orbis Logistics Operates warehouses in four states and provides final-mile delivery
and distribution serv ices in the Midwest and Southeast.
Dicom Transportation
Group, L.P.
6/18/2015 Trucking The Kenan Advantage
Group, Inc.
North America's largest tank truck transporter and logistics prov ider,
delivering fuel, chemicals, industrial gases, and food-grade products.
OMERS Private Equity
6/15/2015 Logistics Parcel Pro Inc. Prov ider of insured shipping and risk management serv ices
worldwide.
UPS Capital Corporation
6/8/2015 Logistics Serv ice By Air, Inc. Prov ides transportation and logistics serv ices through its network of
exclusive agent and company-owned offices across North America.
Radiant Logistics, Inc.
6/8/2015 Logistics RoadOne
IntermodaLogistics, LLC
Provides full-serv ice intermodal transportation solutions for domestic
and international shippers.
Tritium Partners
6/1/2015 Logistics Haas Industries, Inc. Prov ides freight forwarding and logistics serv ices. Lynden International Inc.
6/1/2015 Logistics ABC Fulfillment, LLC Provides e-commerce serv ices, specializing in high volume direct-to-
consumer order fulfillment and customer serv ice.
TAGG Logistics, LLC
5/25/2015 Trucking Hodges Trucking
Company, L.L.C.
Operates as an oilfield carrier and heavy haul transportation
company.
Aveda Transportation and
Energy Serv ices Inc.
5/22/2015 Equipment Crane Rental
Corporation
Provides heavy haul, specialized rigging, and crane serv ices in the
Southeast United States.
Maxim Crane Works, L.P.
5/21/2015 Trucking Horizon Tank Lines, Inc. Operates as a bulk chemical hauler in North Carolina. Heniff Transportation
Systems, LLC
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.
5/6/2015 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
5/5/2015 Logistics Borderfree, Inc. Prov ides cross-border e-commerce solutions, including customs
clearance, fulfillment, marketing, and multicurrency pricing.
Pitney Bowes
International Holdings,
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
5/4/2015 Logistics Bridge Terminal Transport
Inc.
Prov ides asset-light drayage serv ices. XPO Logistics, Inc.
5/1/2015 Equipment Dakota Trailer
Manufacturing, Inc.
Manufactures aluminum grain trailers for the agricultural market. Trail King Industries, Inc.
4/28/2015 Logistics Norbert Dentressangle
S.A.
Prov ides contract logistics, e-commerce fulfillment, freight brokerage
and transportation, and global forwarding serv ices.
XPO Logistics, Inc.
4/27/2015 Air WFS Global SAS Provides cargo handling, ground handling, and technical serv ices to
airlines and airports globally.
Platinum Equity, LLC
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PUBLIC MARKETS OVERVIEW
3
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ JUNE 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)
6.6x
7.4x
9.0x
11.5x
11.5x
Transportation
Equipment
Trucking
Rail & Rail Services
Marine
Logistics Providers
5.6x
6.4x
8.8x
9.0x
11.0x
Transportation
Equipment
Trucking
Marine
Rail & Rail Services
Logistics Providers
3.5%
6.4%
7.7%
8.7%
11.5%
Marine
Logistics Providers
Trucking
Transportation
Equipment
Rail & Rail Services
6.8%
7.4%
7.5%
13.0%
17.5%
Logistics Providers
Transportation
Equipment
Marine
Trucking
Rail & Rail Services
10.2%
12.2%
14.5%
14.8%
15.4%
Rail & Rail Services
Transportation
Equipment
Marine
Logistics Providers
Trucking
(0.2%)
5.2%
7.2%
7.5%
8.3%
Marine
Transportation
Equipment
Logistics Providers
Rail & Rail Services
Trucking
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STOCK PRICE PERFORMANCE
4
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ JUNE 2015
(Indexed to June 23, 2014)
TRAILING TWELVE MONTHS
MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH)
(3.1%)
(2.5%)
(0.7%)
(0.3%)
1.0%
Rail & Rail Services
Trucking
Logistics Providers
Marine
Transportation
Equipment
(16.3%)
(8.9%)
(8.5%)
0.2%
4.1%
Marine
Rail & Rail Services
Transportation
Equipment
Trucking
Logistics Providers
(25%)
(20%)
(15%)
(10%)
(5%)
0%
5%
10%
15%
20%
25%
6/23/14 9/23/14 12/23/14 3/23/15 6/23/15
Logistics Providers Trucking Rail & Rail Services
Marine Transportation Equipment S&P 500 Index
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OUR GROUP
Harris Williams & Co. is a leading advisor to the transportation and logistics M&A market. Our Transportation & LogisticsGroup serves companies in a broad range of attractive niches, including third-party logistics (3PL), truck, rail, marineand air transportation, transportation equipment, and the automotive and heavy duty vehicle market.
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ JUNE 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
has been acquired by
a portfolio company of
THIRD-PARTY LOGISTICS
AIR TRANSPORTATION
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
Energy & Power
IndustrialsHealthcare & Life Sciences
Transportation & Logistics
Aerospace, Defense & Government
Services
Business Services
Building Products & Materials
Technology, Media & Telecom
Specialty Distribution
Consumer
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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 │ JUNE 2015
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PUBLIC COMPARABLES
7
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ JUNE 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 Jun-14 Dec-14 Current 2014 2015E
Transportation & Logistics
TEV / LTM EBITDA as of
Logistics Providers
Agility Public Warehousing Company KSC $2,494 $2.41 (4.0%) (13.9%) $2.64 91.2% 9.2x 8.5x 9.6x 9.4x 8.8x
Air Transport Services Group, Inc. 1,002 10.51 (2.2%) 28.6% 10.96 95.9% 5.5x 5.2x 5.4x 5.6x 5.3x
Atlas Air Worldwide Holdings, Inc. 2,914 56.11 (1.8%) 54.7% 59.47 94.4% 8.3x 8.4x 7.9x 8.5x 7.4x
CH Robinson Worldwide Inc. 10,294 63.77 (0.4%) (0.1%) 77.49 82.3% 14.2x 15.6x 12.5x 12.9x 11.7x
Deutsche Post AG 40,692 30.76 (3.5%) (13.6%) 34.90 88.1% 9.9x 10.7x 10.5x 9.2x 8.1x
DSV A/S 6,703 34.08 (1.3%) 5.3% 36.21 94.1% 12.2x 12.3x 15.1x 13.8x 13.0x
Echo Global Logistics, Inc. 969 34.14 7.8% 80.4% 34.35 99.4% 15.2x NM NM NM 13.0x
Expeditors International of Washington Inc. 8,135 47.92 2.4% 8.1% 49.51 96.8% 12.4x 12.2x 12.0x 12.6x 11.1x
FedEx Corporation 53,239 175.27 0.1% 17.7% 185.19 94.6% 7.6x 8.2x 7.5x 8.8x 7.7x
Forward Air Corp. 1,736 53.71 1.3% 18.5% 57.65 93.2% 12.6x 12.4x 14.2x 13.7x 11.1x
Hub Group Inc. 1,569 43.06 2.2% (14.3%) 51.47 83.7% 13.7x 9.8x 11.6x 11.6x 12.6x
JB Hunt Transport Services Inc. 11,082 87.59 2.8% 15.1% 93.50 93.7% 11.6x 12.1x 11.3x 12.0x 10.5x
Kuehne + Nagel International AG 15,040 136.20 (3.8%) 2.2% 159.35 85.5% 13.4x 15.2x 14.9x 15.2x 13.8x
Landstar System Inc. 2,996 67.94 7.4% 6.9% 81.80 83.1% 14.0x 14.5x 11.8x 12.0x 11.0x
Panalpina World Transport Holding Ltd. 2,804 133.20 (2.9%) (12.2%) 158.60 84.0% 18.7x 18.2x 18.2x 18.7x 12.6x
Roadrunner Transportation Systems, Inc. 1,461 27.25 9.0% (3.6%) 29.02 93.9% 13.6x 11.7x 11.3x 12.1x 9.6x
Ryder System, Inc. 9,406 93.32 (0.9%) 6.9% 100.64 92.7% 5.8x 5.9x 5.7x 5.8x 5.2x
TransForce Inc. 3,531 21.13 (4.9%) (7.0%) 25.66 82.4% 10.6x 10.7x 9.8x 9.8x 8.1x
United Parcel Service, Inc. 97,623 100.75 (0.7%) (1.7%) 114.40 88.1% 11.2x 13.5x 13.9x 14.2x 10.1x
Universal Truckload Services Inc. 874 22.16 10.0% (8.3%) 29.06 76.3% 9.2x 9.6x 7.5x 7.6x 7.3x
UTi Worldwide Inc. 1,680 10.22 6.5% 0.3% 14.75 69.3% NM NM NM 19.9x 17.7x
World Fuel Services Corp. 3,907 49.68 (2.6%) 4.1% 58.50 84.9% 12.4x 12.3x 11.8x 12.3x 11.0x
XPO Logistics, Inc. 4,519 47.55 (5.5%) 74.0% 50.96 93.3% NM NM NM NM 11.9x
Median (0.7%) 4.1% 91.2% 12.2x 11.9x 11.5x 12.0x 11.0x
Trucking
ArcBest Corporation $844 $34.09 (4.5%) (19.3%) $47.52 71.7% 9.1x 7.9x 5.1x 5.5x 4.4x
Celadon Group Inc. 1,074 22.62 (6.7%) 3.0% 29.15 77.6% 7.9x 8.2x 9.2x 10.3x 8.0x
Con-way Inc. 2,623 40.25 (4.1%) (17.8%) 53.54 75.2% 7.3x 6.4x 5.1x 5.3x 4.7x
Covenant Transportation Group, Inc. 668 28.16 (7.6%) 121.7% 36.82 76.5% 6.0x 9.5x 6.7x 7.5x 5.5x
Heartland Express, Inc. 1,771 20.77 (0.0%) (4.0%) 27.96 74.3% 12.3x 12.4x 8.5x 8.5x 7.2x
Knight Transportation Inc. 2,366 28.01 (6.3%) 18.2% 34.73 80.7% 9.8x 12.7x 9.1x 9.9x 7.5x
Marten Transport Ltd. 697 21.41 (3.4%) (2.5%) 24.92 85.9% 6.5x 6.9x 5.8x 6.1x 4.9x
Old Dominion Freight Line Inc. 6,115 70.88 (0.5%) 12.8% 81.48 87.0% 11.6x 12.7x 9.9x 10.4x 9.0x
P.A.M. Transportation Services, Inc. 504 57.99 (1.1%) 107.8% 67.61 85.8% 6.1x 8.1x 8.5x 9.2x NA
Quality Distribution Inc. 767 15.73 (0.6%) 4.2% 15.86 99.2% 11.3x 9.2x 11.2x 10.9x 8.9x
Saia, Inc. 1,098 39.80 (6.1%) (8.0%) 57.60 69.1% 8.8x 10.2x 7.2x 7.6x 6.4x
Swift Transportation Company 4,703 23.70 (4.0%) (7.6%) 29.44 80.5% 9.2x 10.0x 7.7x 8.1x 7.0x
Universal Truckload Services Inc. 874 22.16 10.0% (8.3%) 29.06 76.3% 9.2x 9.6x 7.5x 7.6x 7.3x
USA Truck Inc. 363 24.47 4.7% 27.2% 32.14 76.1% 8.9x 7.7x 5.7x 6.0x 5.5x
Werner Enterprises Inc. 2,001 27.62 1.0% 5.1% 33.42 82.7% 6.5x 7.4x 6.0x 6.3x 5.3x
YRC Worldwide Inc. 1,407 13.90 (1.6%) (48.5%) 29.21 47.6% 12.1x 9.4x 6.0x 7.1x 4.6x
Median (2.5%) 0.2% 77.0% 9.0x 9.3x 7.4x 7.6x 6.4x
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PUBLIC COMPARABLES
8
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ JUNE 2015
Stock Performance
Stock Price Change from 52-Week TEV / EBITDA EBITDA
($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Jun-14 Dec-14 Current 2014 2015E
Transportation & Logistics
TEV / LTM EBITDA as of
Rail and Rail Services
American Railcar Industries, Inc. $1,436 $52.71 (4.0%) (23.0%) $82.82 63.6% 8.8x 6.4x 6.2x 7.0x 5.7x
Canadian National Railway Company 56,549 61.08 0.8% (3.1%) 72.17 84.6% 13.3x 12.9x 12.0x 11.5x 11.2x
Canadian Pacific Railway Limited 32,698 168.05 (5.2%) (8.1%) 201.00 83.6% 16.7x 15.4x 13.9x 13.4x 11.8x
CSX Corp. 43,387 34.86 (1.7%) 13.1% 37.99 91.8% 8.9x 9.6x 8.9x 9.1x 8.8x
FreightCar America Inc. 198 23.35 1.7% (8.1%) 37.48 62.3% NM NM 8.2x 11.6x 5.3x
Genesee & Wyoming Inc. 6,046 80.42 (5.7%) (23.5%) 106.02 75.9% 13.9x 11.7x 10.2x 10.5x 10.0x
The Greenbrier Companies, Inc. 1,886 53.30 (13.9%) (9.7%) 78.32 68.1% 9.6x 6.4x 5.9x 7.9x 4.6x
Kansas City Southern 12,949 95.62 1.8% (10.6%) 126.49 75.6% 14.0x 14.6x 11.7x 11.7x 11.4x
Norfolk Southern Corporation 36,827 92.31 (3.4%) (10.7%) 117.64 78.5% 9.6x 9.3x 8.2x 8.1x 8.6x
Trinity Industries Inc. 7,899 30.33 (3.5%) (28.6%) 50.77 59.7% 8.1x 5.8x 5.6x 5.6x 5.1x
Union Pacific Corporation 99,602 101.15 (2.9%) 0.5% 124.52 81.2% 10.5x 11.4x 9.2x 9.3x 9.1x
Westinghouse Air Brake Technologies Corporation 9,773 99.36 (2.1%) 19.8% 105.10 94.5% 16.2x 15.6x 15.8x 16.6x 14.6x
Median (3.1%) (8.9%) 77.2% 10.5x 11.4x 9.0x 9.9x 9.0x
Marine
Aegean Marine Petroleum Network Inc. $1,301 $13.53 (4.9%) 28.5% $15.71 86.1% 15.2x 14.3x 13.0x 13.3x 10.0x
Costamare Inc. 3,150 20.28 1.5% (13.7%) 24.94 81.3% 12.7x 9.9x 9.9x 9.9x 9.4x
Diana Shipping Inc. 952 7.75 12.5% (30.9%) 11.32 68.5% NM 17.3x 19.9x 19.0x NM
Kirby Corporation 5,140 80.36 (0.4%) (30.4%) 124.12 64.7% 12.5x 8.5x 8.0x 7.9x 8.8x
Matson, Inc. 1,913 42.98 3.1% 71.3% 43.84 98.0% 7.5x 9.2x 8.2x 9.4x 7.8x
Neptune Orient Lines Limited 5,915 0.62 (21.1%) (18.9%) 0.90 69.6% NM NM 14.0x NM 11.3x
Nordic American Tankers Limited 1,488 14.80 13.8% 53.8% 14.94 99.1% NM NM 17.5x NM 8.8x
Rand Logistics, Inc. 242 3.25 (6.1%) (46.7%) 6.65 48.9% 10.1x 8.7x 8.0x 8.3x 6.8x
SEACOR Holdings Inc. 1,807 71.79 (0.3%) (13.5%) 83.88 85.6% 10.1x 8.1x 8.5x 7.4x 9.1x
Wilh. Wilhelmsen ASA 2,298 6.09 (6.4%) (30.1%) 7.10 85.8% 19.7x 16.7x 14.9x 16.4x 5.2x
Median (0.3%) (16.3%) 83.5% 12.5x 9.6x 11.5x 9.7x 8.8x
Transportation Equipment
Accuride Corp. $504 $4.06 1.0% (18.1%) $5.75 70.6% 10.3x 7.5x 6.5x 6.8x 5.5x
Dana Holding Corporation 4,010 21.88 (1.1%) (8.5%) 24.82 88.2% 6.1x 6.3x 5.7x 5.7x 5.4x
Gentherm Incorporated 2,081 57.42 9.2% 33.9% 57.49 99.9% 15.8x 11.5x 15.4x 15.5x 13.8x
Spartan Motors Inc. 162 4.94 11.8% (3.1%) 5.71 86.5% 15.8x 14.3x 17.5x 17.2x 15.3x
Wabash National Corp. 1,112 13.20 (8.7%) (9.3%) 15.21 86.8% 9.0x 7.7x 6.6x 6.9x 5.6x
Median 1.0% (8.5%) 86.8% 10.3x 7.7x 6.6x 6.9x 5.6x
PAGE |
PUBLIC COMPARABLES
9
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ JUNE 2015
Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth
($ 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 $4,613 $4,824 (1.0%) 2.0% $199 $254 $296 $265 $284 $304 10.0% 7.2%
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 1,850 8.8% 1.8% 203 296 307 344 378 375 19.1% 4.4%
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 67,220 70,140 (0.0%) 1.2% 3,384 4,129 5,108 4,424 5,011 5,514 9.3% 11.6%
DSV A/S 7,639 7,937 8,439 7,896 7,755 8,055 1.1% 1.0% 498 519 543 486 520 550 (0.8%) 6.4%
Echo Global Logistics, Inc. 603 758 884 1,173 1,687 2,262 24.9% 38.8% 23 27 27 36 74 107 16.5% 72.6%
Expeditors International of Washington Inc. 6,162 5,992 6,080 6,565 7,105 7,573 2.1% 7.4% 655 571 600 644 733 791 (0.6%) 10.8%
FedEx Corporation 39,304 42,680 44,287 45,567 47,609 50,519 5.1% 5.3% 4,506 5,367 5,597 6,033 6,891 7,890 10.2% 14.4%
Forward Air Corp. 509 584 652 781 993 1,080 15.4% 17.6% 97 104 107 127 158 184 9.4% 20.7%
Hub Group Inc. 2,752 3,124 3,374 3,571 3,673 3,915 9.1% 4.7% 112 134 138 135 123 142 6.4% 2.4%
JB Hunt Transport Services Inc. 3,678 4,058 4,527 5,083 6,458 7,259 11.4% 19.5% 658 759 830 926 1,059 1,182 12.1% 13.0%
Kuehne + Nagel International AG 17,351 18,699 19,290 17,618 22,682 23,648 0.5% 15.9% 1,038 979 1,070 987 1,096 1,167 (1.7%) 8.8%
Landstar System Inc. 2,594 2,735 2,628 3,145 3,377 3,635 6.6% 7.5% 204 223 201 250 272 297 6.9% 9.1%
Panalpina World Transport Holding Ltd. 6,954 7,227 7,589 6,752 7,086 7,425 (1.0%) 4.9% 220 92 161 150 224 277 (11.9%) 35.9%
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 3,614 3,714 5.8% 14.8% 313 392 318 361 439 474 4.9% 14.6%
United Parcel Service, Inc. 53,105 54,127 55,438 58,232 59,700 62,754 3.1% 3.8% 7,830 3,201 8,868 6,864 9,670 10,371 (4.3%) 22.9%
Universal Truckload Services Inc. 991 1,037 1,033 1,192 1,169 1,234 6.3% 1.8% 84 96 105 115 118 129 11.1% 6.1%
UTi Worldwide Inc. 4,550 4,914 4,608 4,436 4,284 4,157 (0.8%) (3.2%) 183 213 146 84 96 111 NM 14.6%
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 6,649 10,671 NM NM 3 (25) (20) 95 377 697 NM NM
Total $276,120 $295,077 $306,963 $308,106 $313,220 $335,160 6.4% 7.2% $22,746 $20,009 $27,149 $25,368 $30,902 $34,188 6.8% 14.8%
Trucking
ArcBest Corporation $1,908 $2,066 $2,300 $2,613 $2,761 $2,946 11.1% 6.2% $82 $70 $104 $155 $193 $219 23.5% 19.1%
Celadon Group Inc. 467 475 489 615 889 997 9.6% 27.3% 89 103 106 104 135 157 5.4% 22.8%
Con-way Inc. 5,290 5,580 5,473 5,806 5,954 6,286 3.2% 4.1% 386 428 427 493 557 611 8.5% 11.4%
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 1,422 9.9% 23.9% 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 3,053 3,432 13.6% 11.0% 326 396 460 587 679 777 21.6% 15.0%
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 4,418 4,787 4.4% 5.5% 549 573 577 583 671 742 2.0% 12.9%
Universal Truckload Services Inc. 991 1,037 1,033 1,192 1,169 1,234 6.3% 1.8% 84 96 105 115 118 129 11.1% 6.1%
USA Truck Inc. 411 512 555 602 589 639 13.6% 3.0% 33 20 35 60 67 74 22.0% 10.8%
Werner Enterprises Inc. 2,003 2,036 2,029 2,139 2,162 2,296 2.2% 3.6% 311 318 296 318 382 410 0.7% 13.6%
YRC Worldwide Inc. 4,869 4,851 4,865 5,069 5,085 5,329 1.4% 2.5% 49 198 199 197 308 349 NM NM
Total $25,905 $27,247 $28,030 $30,615 $31,821 $34,179 7.7% 8.3% $2,536 $2,913 $3,073 $3,532 $4,188 $4,668 13.0% 15.4%
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PUBLIC COMPARABLES
10
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ JUNE 2015
Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth
($ 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 $849 12.2% 7.6% $55 $145 $179 $204 $253 $242 NM 8.8%
Canadian National Railway Company 8,881 9,952 9,954 10,478 10,316 11,066 5.7% 2.8% 4,112 4,624 4,568 4,900 5,022 5,445 6.0% 5.4%
Canadian Pacific Railway Limited 4,970 5,568 5,631 5,582 5,673 6,206 3.9% 5.4% 1,378 1,778 2,190 2,434 2,742 3,030 20.9% 11.6%
CSX Corp. 11,795 11,763 12,026 12,669 12,449 13,034 2.4% 1.4% 4,446 4,523 4,577 4,764 4,911 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 2,102 2,358 25.5% 19.9% 252 277 534 574 612 708 31.6% 11.1%
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 2,527 2,770 7.1% 3.7% 772 872 962 1,106 1,134 1,289 12.7% 8.0%
Norfolk Southern Corporation 11,172 11,040 11,245 11,624 11,034 11,647 1.3% 0.1% 4,073 4,036 4,169 4,522 4,244 4,604 3.5% 0.9%
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 23,509 25,120 6.8% 5.5% 7,341 8,505 9,223 10,657 10,905 11,964 13.2% 6.0%
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 $82,364 $87,149 11.5% 7.5% $23,446 $26,119 $27,987 $31,403 $32,514 $35,324 17.5% 10.2%
Marine
Aegean Marine Petroleum Network Inc. $6,965 $7,259 $6,335 $6,662 $4,296 $5,037 (1.5%) (13.0%) $75 $85 $75 $98 $134 $149 9.1% 23.4%
Costamare Inc. 382 386 414 484 490 510 8.2% 2.6% 236 238 258 318 336 349 10.4% 4.8%
Diana Shipping Inc. 256 221 164 176 162 187 (11.8%) 3.2% 166 124 53 50 35 48 (32.9%) (2.2%)
Kirby Corporation 1,850 2,113 2,242 2,566 2,268 2,376 11.5% (3.8%) 445 509 582 647 583 627 13.3% (1.5%)
Matson, Inc. 1,463 1,560 1,637 1,714 1,849 2,082 5.4% 10.2% 142 175 172 203 244 283 12.8% 18.1%
Neptune Orient Lines Limited 9,211 9,512 8,831 8,617 7,033 7,098 (2.2%) (9.2%) (90) 96 131 294 545 548 NM NM
Nordic American Tankers Limited 95 131 244 351 241 237 NM NM 10 13 (21) 60 166 156 NM 61.4%
Rand Logistics, Inc. 98 109 119 129 149 152 9.9% 8.3% 16 28 25 29 35 36 23.3% 11.0%
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 2,488 2,571 NM NM 147 227 154 140 453 447 NM NM
Total $21,661 $22,993 $21,559 $22,303 $20,176 $21,571 3.5% (0.2%) $1,301 $1,658 $1,627 $2,083 $2,729 $2,892 7.5% 14.5%
Transportation Equipment
Accuride Corp. $805 $795 $643 $705 $750 $755 (4.3%) 3.4% $74 $65 $43 $75 $90 $97 0.2% 13.9%
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% 16.0%
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 $10,574 $11,048 8.7% 5.2% $888 $1,008 $981 $1,084 $1,190 $1,300 7.4% 12.2%
PAGE |
TRANSPORTATION & LOGISTICS
SOURCES
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ JUNE 2015
1. Capital IQ.
2. MergerMarket.
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DISCLOSURES
11