transportation & logistics - harriswilliams.com · automotive dealerships only capture ......

www.harriswilliams.com

Investment banking services are provided by Harris W illiams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris W illiams & Co. Ltd, which is authorised andregulat ed bythe Financial Conduct Authority. HarrisWilliams &Co.is atrade name underwhich HarrisWilliams LLC and HarrisWilliams &Co. Ltd conduct business.

TRANSPORTATION & LOGISTICS

AUTOMOTIVE AFTERMARKET SECTOR UPDATE │ AUGUST 2016

PAGE |

www.harriswilliams.com



3D PRINTING IS REVOLUTIONIZING TRUCK PARTS

3D printing as of right now is bringing new possibilities and meaningful changes inareas like truck parts av ailability / inventory, production costs, and time-to-marketfor new ideas. The latest dev elopments in 3D printing hav e made replacementparts easily accessible and of “consistent manufacturer’s quality.” The ability tomake a single giv en part on-demand is exponentially less expensiv e than atraditional manufacturing run for that part, and once a 3D printer is in place for aspecific locality or region, it also eliminates the typical requisite supply anddistribution network to make such parts av ailable.

Fleet Owner

E-COMMERCE CONTINUES TO EXPAND IN THE AFTERMARKET

Consumers expect their auto parts buying experience to be enhanced withconv enient, online tools. Roughly half of 1,000 v ehicle owners surv eyed by eBayhad purchased auto parts online, and nearly one in fiv e have purchased av ehicle online in the last fiv e years. “Growth in v ehicle and auto parts sales online ismuch higher than for regula r e-commerce,” says Sree Menon, general managerof eBay Motors. “Automotiv e aftermarket retailers hav e to understand that theycan’t ignore hav ing a digital strategy in place… we’re in an era where online andoffline really hav e to come together.”

Auto Serv ice World

1

CONTENTS

M &A TRANSACTIONS

PUBLIC M ARKETS OVERVIEW

STOCK PRICE PERFORM ANCE

OUR GROUP

CONTACTS

UNITED STATES

Frank MountcastleM anaging [email protected]+1 (804) 915-0124

Jason BassM anaging Directorjbass@harrisw illiams.com+1 (804) 915-0132

Joe ConnerM anaging Director jconner@harrisw illiams.com+1 (804) 915-0151

Jershon JonesDirector jjones@harrisw illiams.com+1 (804) 932-1356

Jeff BurkettDirector [email protected] +1 (804) 932-1334

Jeff KiddVice President jkidd@harrisw illiams.com +1 (804) 915-0178

James O’MalleyVice President [email protected]+1 (804) 915-0165

EUROPE

Jeffery PerkinsM anaging Director jperkins@harrisw illiams.com+49 (0) 69 3650638 00

Automotiv e dealerships only capture approximately 30% of total serv ice v isits, andare missing out on bill ions in serv ice rev enue annually, according to the CoxAutomotiv e 2016 Maintenance and Repair Study. The study found that 25% ofrespondents took their v ehicles to a general repair shop, while 14% utilized quicklube locations and 11% went to tire stores. The remaining 20% were split amongretailers, specialists (like Midas), body shops or “other.” The top fiv e reasons thatserv ice customers did not go to the dealer were total cost, fears they would beov ercharged, unreasonable labor charges, unreasonable parts charges anddistance/location.

Auto Serv ice World

MAINTENANCE & REPAIR STUDY REVEALS AN OFFER WORTH BILLIONS

DRIVERLESS CARS CAN DRIVE UP THE BOTTOM LINE AT REPAIR SHOPS

Repair shops, and the parts manufacturers, wholesalers and retailers that supplythem, will be among the beneficiaries of the shift to autonomous v ehicles. Today,the v ehicles entering shops for maintenance or repairs sit parked 95 percent of thetime. Tomorrow, fleets of driv erless cars will spend nearly all their time on the road,with an increase in wear and tear and a proportionate need for maintenanceand repair.

Aftermarket Business World

Between 2016 and 2020, automotiv e OEMs and other ecosystem players willcontinue to inv est heavily in dedicated connected car programs that go beyondtraditional telematics. Multiple automotiv e OEMs are beginning to integrate in-v ehicle payment capabilities with their connected car platforms to make itpossible for driv ers to pay for serv ices such as fuel, parking, food and tolling,without hav ing to leave their v ehicles. By the end of 2016, research estimates thatconnected car serv ices will account for $14 billion in annual rev enue. Although themarket is presently dominated by infotainment and telematics, connected driv erassistance systems and autonomous driv ing applications will witness the highestgrowth rate ov er the next four years.

Yahoo Finance

CONNECTED CAR MARKET EXPECTED TO GROW AT 31% CAGR TO 2020

WHAT WE’RE READING

http://www.harriswilliams.com/

http://fleetowner.com/technology/three-ways-3d-printing-quietly-revolutionizing-trucking/

http://www.autoserviceworld.com/jobbernews/e-commerce-continues-expand/

mailto:[email protected]








http://www.autoserviceworld.com/jobbernews/maintenance-repair-study-reveals-multibillion-dollar-opportunity-dealers/

http://www.searchautoparts.com/aftermarket-business/opinion-commentary-distribution/driverless-cars-can-drive-bottom-line-repair-sh

http://finance.yahoo.com/news/connected-car-market-grow-31-123000410.html

PAGE |

Date Target Business Description Acquirer

8/2/2016 Experi-Metal, Inc. Prov ides metal formed parts and assemblies for the automotive,

aerospace, and other industries.

The Watermill Group

8/1/2016 Aftermarket Telematics

Technologies LLC

Developer of automotive telematics software and serv ices for the

automotive aftermarket.

Innova Electronics Corp.

7/26/2016 Powertrain Industries, Inc. Supplies automotive replacement parts, automotive hardware, brake

products and household hardware.

Dorman Products, Inc.

7/25/2016 Rubber Enterprises, Inc. Manufactures a line of v ibration control products. Anand Nvh Products Private

Limited

7/21/2016 Novita Technologies, Inc. Manufactures automotive LED modules. Osram GmbH

7/6/2016 Baja Designs, Inc. Develops and manufactures specialty aftermarket motorcycle and

automotive lighting systems.

Bestop, Inc.

7/1/2016 ABC Group, Inc. (Canada) Designs, develops, and produces plastic automotive systems. Cerberus Capital

Management LP

7/1/2016 Jayco, Inc. Develops, markets, and manufactures recreational vehicles and

accessories.

Thor Industries, Inc.

6/28/2016 UQM Technologies Inc. Manufactures electrical motors, generators and hybrid systems for

passenger and commercial vehicles.

American Compass Inc.

6/21/2016* Auto-Camping Ltd. Distributes imported OEM automobile parts and fluids in Canada. Genuine Parts Co.

6/16/2016* Dejana Truck & Utility Equipment

Co., Inc.

Offers a variety of truck equipment. Douglas Dynamics, Inc.

6/2/2016* FTE Automotive GmbH Manufactures brake and clutch actuation systems. Valeo SA

6/2/2016* OEConnection LLC Provides original equipment replacement parts solutions. Prov idence Equity Partners,

Inc.

5/23/2016* Bridgestone Firestone

Venezolana CA

Offers tires and rubber products in Venezuela. Corimon CA

5/17/2016 4Knines Manufactures and supplies dog seat covers for cars. Hall Capital Partners

5/16/2016 Rear View Safety, Inc. Prov ides back up camera systems and v ideo-based road safety

solutions for passenger vehicles.

Safe Fleet Acquisition Corp.

5/11/2016 Grand Rapids Auto Auction, Inc. Prov ides dealer-to-dealer auto auction serv ices within the used car

remarketing industry.

XLerate Group / Huron

Capital Partners

5/9/2016 Johann Hay GmbH und Co. KG

Automobiltechnik

Manufactures and supplies machined and forged components for

automotive, commercial vehicles, and bearing industries in Germany

and internationally.

Musashi Seimitsu Industry

Co., Ltd.

M&A TRANSACTIONS

2

RECENT M&A TRANSACTIONS1,2,3



*Denot es pending t ransactions

PAGE |

(2.3%)

7.9%

10.7%

17.0%

Vehicle Manufacturers

Dealerships and Services

Providers

Suppliers

Distributors and Retailers

4.7%

5.9%

7.0%

16.1%


Suppliers



Providers

(0.4%)

4.3%

5.1%

6.1%


Suppliers



Providers

(1.8%)

(0.7%)

6.6%

13.9%

Suppliers




Providers

6.3x

9.9x

11.7x

12.3x

Suppliers



Providers


6.9x

8.2x

11.4x

12.7x

Suppliers



Providers


PUBLIC MARKETS OVERVIEW

3


TEV / LTM EBITDA TEV / 2016P EBITDA

AVERAGE REVENUE GROWTH (2012 – 2015) AVERAGE REVENUE GROWTH (2015 – 2017P)

AVERAGE EBITDA GROWTH (2012 – 2015) AVERAGE EBITDA GROWTH (2015 – 2017P)


PAGE |

(18.2%)

(8.7%)

(5.3%)

4.8%

11.5%

Dealerships and

Service Providers

Vehicle

Manufacturers

Suppliers

S&P 500

Distributors and

Retailers

(1.0%)

1.3%

2.3%

9.8%

10.2%

Distributors and

Retailers

Dealerships and

Service Providers

S&P 500

Suppliers

Vehicle

Manufacturers

STOCK PRICE PERFORMANCE

4


(Indexed t o August 11th, 2015)

TRAILING TWELVE MONTHS

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


(40%)

(30%)

(20%)

(10%)

0%

10%

20%

30%

40%

Aug-15 Nov-15 Feb-16 May-16 Aug-16

Suppliers Distributors and Retailers

Dealerships and Service Providers Vehicle Manufacturers

S&P 500 Index

PAGE |

OUR GROUP

Harris Will iams & Co. is a leading adv isor to the transportation and logistics M&A market. Our Transportation & LogisticsGroup serv es companies in a broad range of attractiv e niches, including third-party logistics (3PL), truck, rail, marineand air transportation, transportation equipment, and the automotiv e and heav y duty v ehicle market.


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

AIR TRANSPORTATION

5

INDUSTRY UPDATE │ AUGUST 2016

has been acquired by

a portfolio company of

and

in partnership with

and

RCL Services Group

has sold

tohas been acquired by









has acquired





has merged with

an operating company of

in a recapitalization by

and





http://www.portlogisticsgroup.com/

http://www.portlogisticsgroup.com/

http://corpjetfin.live.subhub.com/custom/Hawker_Beechcraft_black_h_logo.jpg

http://corpjetfin.live.subhub.com/custom/Hawker_Beechcraft_black_h_logo.jpg

Energy, Pow er& Infrastructure

IndustrialsHealthcare & Life Sciences

Transportation & Logistics

Aerospace, Defense & Government

Services

Business Services

Building Products & M aterials

Technology, M edia & Telecom

Specialty Distribution

Consumer

PAGE |

HARRIS WILLIAMS & CO. OFFICE LOCATIONS

UNITED STATES EUROPE

BostonTw o International Place24th FloorBoston, M assachusetts 02110Phone: +1 (617) 482-7501

Cleveland1900 East 9th Street20th FloorCleveland, Ohio 44114Phone: +1 (216) 689-2400

Minneapolis222 South 9th StreetSuite 3350M inneapolis, M innesota 55402Phone: +1 (612) 359-2700

Richmond (Headquarters)1001 Haxall Point9th FloorRichmond, Virginia 23219Phone: +1 (804) 648-0072

San Francisco575 M arket Street31st FloorSan Francisco, California 94105Phone: +1 (415) 288-4260

FrankfurtBockenheimer Landstrasse 33-3560325 FrankfurtGermanyPhone: +49 069 3650638 00

London63 Brook StreetLondon W1K 4HS, EnglandPhone: +44 (0) 20 7518 8900

NETWORK OFFICES

Beijing

Hong Kong

Mumbai

New Delhi

Shanghai

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.

6

OUR FIRM



PAGE |

Suppliers

BorgWarner Inc. $9,581 $34.00 9.6% (27.3%) $48.64 69.9% 8.5x 6.7x 6.8x 6.4x 6.2x

Cooper Tire & Rubber Company 1,824 34.16 10.7% (9.2%) 43.40 78.7% 4.4x 3.6x 3.2x 3.6x 4.0x

Dorman Products, Inc. 2,058 61.97 9.2% 21.0% 65.06 95.3% 11.6x 8.6x 11.9x 11.3x 10.6x

Federal-Mogul Holdings Corp 4,446 8.90 1.9% (8.6%) 10.06 88.5% 8.7x 6.4x 7.1x 6.1x 5.7x

Goodyear Tire & Rubber Company 13,238 29.53 10.8% (5.9%) 35.30 83.7% 5.9x 5.9x 6.3x 5.0x 4.9x

Modine Manufacturing Company 597 10.23 9.9% 7.9% 11.75 87.1% 5.4x 7.3x 2.6x 4.8x 4.2x

Motorcar Parts of America, Inc. 609 30.15 9.9% (4.6%) 41.03 73.5% 15.3x 13.8x 13.1x 6.7x 5.8x

Standard Motor Products, Inc. 1,073 42.82 4.1% 21.5% 45.72 93.7% 8.6x 8.9x 9.8x 8.9x 8.7x

Tenneco Inc. 4,350 55.82 14.5% 11.9% 57.73 96.7% 5.5x 4.5x 5.3x 5.2x 4.8x

Visteon Corporation 2,113 71.09 7.3% (30.4%) 121.65 58.4% 4.1x 1.6x 9.9x 6.5x 5.9x

Median 9.8% (5.3%) 85.4% 7.2x 6.6x 6.9x 6.3x 5.8x


Advance Auto Parts, Inc. $13,438 $166.71 1.8% (3.1%) $201.24 82.8% 11.0x 9.9x 11.6x 10.9x 10.1x

AutoZone, Inc. 29,095 801.24 (1.0%) 11.1% 819.54 97.8% 10.2x 11.6x 12.6x 12.3x 11.5x

Genuine Parts Company 15,857 102.00 (3.1%) 16.4% 105.97 96.3% 11.1x 10.8x 12.7x 12.3x 11.1x

LKQ Corporation 13,778 34.69 3.0% 11.5% 35.51 97.7% 13.4x 10.6x 14.7x 12.9x 11.2x

O'Reilly Automotive, Inc. 29,515 288.10 3.7% 16.5% 292.84 98.4% 16.4x 14.5x 16.1x 15.4x 14.0x

U.S. Auto Parts Network, Inc. 165 3.96 (10.6%) 75.2% 4.49 88.2% NA NA 18.3x 12.8x 11.1x

Uni-Select Inc. 1,176 24.04 (6.9%) 4.8% 27.45 87.6% 8.9x 10.2x 11.9x 10.9x 9.9x

Median (1.0%) 11.5% 96.3% 11.1x 10.7x 12.7x 12.3x 11.1x

Dealerships and Service Providers

Asbury Automotive Group, Inc. $3,082 $56.65 1.3% (31.0%) $87.63 64.6% 11.5x 9.2x 9.5x 9.5x 9.3x

AutoNation, Inc. 11,580 49.46 (2.6%) (18.2%) 65.51 75.5% 12.7x 11.4x 11.5x 11.7x 11.4x

Boyd Group Income Fund 1,216 60.67 5.6% 36.6% 61.88 98.0% 11.1x 10.7x 16.2x 12.9x 11.2x

CarMax, Inc. 21,981 59.17 11.0% (5.3%) 64.07 92.4% NM NM NM 18.0x 17.2x

Copart, Inc. 6,462 50.68 1.3% 40.7% 51.48 98.5% 12.5x 11.6x 14.9x 14.2x 13.3x

Group 1 Automotive, Inc. 4,136 61.39 16.8% (34.1%) 94.45 65.0% 11.9x 9.9x 9.9x 11.0x 10.5x

KAR Auction Services, Inc. 7,796 41.08 (3.5%) 5.9% 43.91 93.6% 11.5x 10.0x 11.3x 10.3x 9.5x

Lithia Motors, Inc. Class A 4,153 83.82 7.4% (27.2%) 126.56 66.2% 15.2x 10.5x 10.6x 10.3x 9.7x

Monro Muffler Brake, Inc. 2,244 57.49 (18.2%) (12.1%) 77.00 74.7% 15.9x 15.2x 14.0x 13.0x 11.5x

Penske Automotive Group, Inc. 8,155 41.30 26.1% (21.3%) 54.09 76.3% 14.5x 11.5x 12.3x 12.1x 11.3x

Sonic Automotive, Inc. Class A 3,120 17.46 (4.7%) (20.6%) 25.77 67.8% 11.2x 10.1x 10.2x 10.7x 10.4x

Median 1.3% (18.2%) 75.5% 12.2x 10.6x 11.4x 11.7x 11.2x

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 Aug-15 Feb-16 Current 2016P 2017P

Automotive Aftermarket

TEV / LTM EBITDA as of

PUBLICCOMPARABLES

7



PAGE |

PUBLICCOMPARABLES

8



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 Aug-15 Feb-16 Current 2016P 2017P


TEV / LTM EBITDA as of


Bayerische Motoren Werke AG $155,829 $89.84 16.1% (6.7%) $113.02 79.5% 7.7x 7.3x 7.7x 9.5x 9.3x

Daimler AG 174,984 70.51 15.6% (17.1%) 91.03 77.5% 6.4x 6.4x 7.1x 8.7x 7.8x

Ford Motor Company 149,928 12.31 (7.2%) (16.1%) 15.84 77.7% 17.8x 9.2x 10.2x 11.8x 11.5x

General Motors Company 101,125 31.75 5.4% 2.9% 36.88 86.1% 6.0x 5.4x 5.4x 6.1x 6.2x

Harley-Davidson, Inc. 15,866 53.78 10.5% (8.3%) 60.33 89.1% 12.8x 10.5x 12.2x 12.5x 11.8x

Navistar International Corporation 5,509 13.32 8.3% (27.3%) 19.91 66.9% 12.0x 9.5x 9.6x 9.8x 9.0x

Oshkosh Corp 4,884 53.35 9.9% 34.8% 55.63 95.9% 7.3x 6.7x 10.1x 10.0x 8.5x

PACCAR Inc 25,311 57.90 9.2% (7.8%) 63.17 91.7% 8.7x 7.0x 8.1x 11.8x 12.1x

Toyota Motor Corp. 302,277 58.66 13.6% (9.0%) 65.20 90.0% 8.7x 8.0x 8.3x 10.1x 9.6x

Volkswagen AG Pref 203,182 142.08 13.5% (28.6%) 202.41 70.2% 6.6x 7.6x 7.9x 6.9x 6.2x

Median 10.2% (8.7%) 82.8% 8.2x 7.5x 8.2x 9.9x 9.1x

PAGE |

Suppliers

BorgWarner Inc. $7,178 $7,435 $8,304 $8,025 $9,136 $9,508 3.8% 8.8% $1,106 $1,224 $1,385 $1,330 $1,493 $1,553 6.4% 8.1%

Cooper Tire & Rubber Company 4,201 3,439 3,421 2,959 2,956 3,046 (11.0%) 1.5% 526 394 436 541 514 485 1.0% (5.3%)

Dorman Products, Inc. 570 664 751 803 859 943 12.1% 8.4% 112 138 153 162 182 197 13.0% 10.1%

Federal-Mogul Holdings Corp 6,664 6,786 7,317 7,419 7,467 7,725 3.6% 2.0% 448 569 573 570 725 776 8.4% 16.7%

Goodyear Tire & Rubber Company 20,992 19,540 18,138 16,443 15,632 15,948 (7.8%) (1.5%) 1,824 2,107 2,251 2,085 2,655 2,684 4.6% 13.5%

Modine Manufacturing Company 1,376 1,478 1,496 1,463 1,353 1,380 2.1% (2.9%) 101 121 110 224 124 141 30.3% (20.7%)

Motorcar Parts of America, Inc. 406 259 302 369 433 478 (3.2%) 13.8% 0 46 38 49 91 103 NM 44.5%

Standard Motor Products, Inc. 949 984 980 972 1,061 1,112 0.8% 7.0% 89 107 113 92 121 124 1.4% 15.9%

Tenneco Inc. 7,363 7,964 8,420 8,209 8,609 9,063 3.7% 5.1% 649 707 752 785 848 917 6.5% 8.1%

Visteon Corporation 6,857 7,439 7,509 3,245 3,164 3,291 (22.1%) 0.7% 493 590 663 265 325 356 (18.7%) 15.9%

Total $56,556 $55,988 $56,639 $49,906 $50,669 $52,493 (1.8%) 4.3% $5,348 $6,002 $6,475 $6,104 $7,077 $7,336 5.9% 10.7%


Advance Auto Parts, Inc. $6,205 $6,494 $9,844 $9,737 $9,380 $9,564 16.2% (0.9%) $847 $901 $1,244 $1,147 $1,244 $1,332 10.6% 7.8%

AutoZone, Inc. 8,604 9,148 9,475 10,187 10,663 11,184 5.8% 4.8% 1,841 2,002 2,081 2,223 2,365 2,529 6.5% 6.7%

Genuine Parts Company 13,014 14,078 15,342 15,280 15,479 16,038 5.5% 2.5% 1,122 1,117 1,273 1,266 1,286 1,382 4.1% 4.5%

LKQ Corporation 4,123 5,063 6,740 7,193 9,161 10,309 20.4% 19.7% 493 627 790 852 1,071 1,224 20.0% 19.8%

O'Reilly Automotive, Inc. 6,182 6,649 7,216 7,967 8,593 9,163 8.8% 7.2% 1,154 1,287 1,465 1,743 1,919 2,108 14.7% 10.0%

U.S. Auto Parts Network, Inc. 304 255 284 291 303 318 (1.4%) 4.4% 8 5 5 6 13 15 (8.5%) 58.6%

Uni-Select Inc. 1,821 1,788 1,784 1,355 1,220 1,300 (9.4%) (2.1%) 90 92 104 94 108 118 1.5% 11.8%

Total $40,253 $43,474 $50,685 $52,010 $54,799 $57,876 6.6% 5.1% $5,554 $6,031 $6,961 $7,331 $8,006 $8,708 7.0% 17.0%

Dealerships and Service Providers

Asbury Automotive Group, Inc. $4,640 $5,335 $5,868 $6,588 $6,526 $6,721 12.4% 1.0% $209 $270 $313 $331 $328 $334 16.6% 0.5%

AutoNation, Inc. 15,669 17,518 19,109 20,862 21,884 22,755 10.0% 4.4% 737 843 909 998 989 993 10.6% (0.3%)

Boyd Group Income Fund 435 561 764 918 1,056 1,172 28.3% 13.0% 30 40 77 79 94 109 38.5% 16.9%

CarMax, Inc. 10,963 12,574 14,269 15,150 15,881 17,223 11.4% 6.6% 529 595 724 804 1,227 1,299 15.0% 27.1%

Copart, Inc. 924 1,046 1,163 1,146 1,256 1,337 7.4% 8.0% 346 342 363 394 453 491 4.4% 11.6%

Group 1 Automotive, Inc. 7,476 8,919 9,938 10,633 11,064 11,378 12.5% 3.4% 269 346 375 407 380 394 14.8% (1.6%)

KAR Auction Services, Inc. 1,963 2,173 2,365 2,640 3,052 3,277 10.4% 11.4% 457 451 574 640 752 824 11.9% 13.5%

Lithia Motors, Inc. Class A 3,316 4,006 5,390 7,864 8,523 8,982 33.4% 6.9% 166 207 266 377 397 426 31.5% 6.3%

Monro Muffler Brake, Inc. 732 831 894 944 1,001 1,083 8.8% 7.1% 103 127 147 161 171 193 16.0% 9.5%

Penske Automotive Group, Inc. 13,164 14,705 17,177 19,285 20,310 20,938 13.6% 4.2% 419 498 574 645 675 710 15.4% 5.0%

Sonic Automotive, Inc. Class A 8,365 8,843 9,197 9,624 9,574 9,918 4.8% 1.5% 289 300 294 307 290 300 2.0% (1.1%)

Total $67,648 $76,512 $86,134 $95,653 $100,129 $104,782 13.9% 6.1% $3,553 $4,019 $4,617 $5,142 $5,757 $6,072 16.1% 7.9%

Revenue Revenue Growth EBITDA EBITDA Growth

($ in millions) 2012 2013 2014 2015 2016P 2017P '12-15 '15-17P 2012 2013 2014 2015 2016P 2017P '12-15 '15-17P


PUBLICCOMPARABLES

9



PAGE |


Bayerische Motoren Werke AG $98,709 $100,976 $106,648 $102,215 $104,982 $107,682 1.2% 2.6% $20,286 $19,443 $21,734 $19,303 $16,162 $16,608 (1.6%) (7.2%)

Daimler AG 146,811 156,635 172,268 165,747 171,255 175,416 4.1% 2.9% 19,691 21,079 24,558 25,604 20,651 22,491 9.1% (6.3%)

Ford Motor Company 134,266 146,917 144,077 149,558 142,456 145,048 3.7% (1.5%) 12,958 13,183 11,324 15,557 12,500 13,485 6.3% (6.9%)

General Motors Company 152,256 155,427 155,929 152,356 150,617 149,476 0.0% (0.9%) 10,670 12,708 8,853 15,518 17,181 16,224 13.3% 2.2%

Harley-Davidson, Inc. 5,581 5,900 6,229 5,995 5,286 5,398 2.4% (5.1%) 1,183 1,324 1,452 1,330 1,276 1,321 4.0% (0.3%)

Navistar International Corporation 12,948 10,775 10,806 10,140 8,437 8,353 (7.8%) (9.2%) (374) (192) 295 567 565 600 NM 2.9%

Oshkosh Corp 8,181 7,665 6,808 6,098 6,101 6,628 (9.3%) 4.3% 500 644 622 523 486 557 1.5% 3.2%

PACCAR Inc 17,051 17,124 18,997 19,115 17,200 16,752 3.9% (6.4%) 2,458 2,648 2,899 3,198 2,084 2,107 9.2% (18.8%)

Toyota Motor Corp. 266,131 256,480 247,980 236,533 265,482 275,352 (3.9%) 7.9% 30,332 35,160 38,164 36,457 29,539 31,718 6.3% (6.7%)

Volkswagen AG Pref 247,486 261,550 268,549 236,524 236,073 242,635 (1.5%) 1.3% 29,739 30,822 33,686 24,722 29,135 32,902 (6.0%) 15.4%

Total $1,089,420 $1,119,448 $1,138,291 $1,084,281 $1,107,889 $1,132,740 (0.7%) (0.4%) $127,443 $136,819 $143,587 $142,779 $129,578 $138,012 4.7% (2.3%)

PUBLICCOMPARABLES

10



Revenue Revenue Growth EBITDA EBITDA Growth

($ in millions) 2012 2013 2014 2015 2016P 2017P '12-15 '15-17P 2012 2013 2014 2015 2016P 2017P '12-15 '15-17P


PAGE |


SOURCES


1. FactSet .

2. MergerMarket.

3. Pitchbook.

Harris W illiams & Co. (www.harriswilliams.com) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global t ransaction expertise, and an unw avering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.

Investment banking services are provided by Harris Williams LLC, a registered broker -dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, w hich is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a t rade name under w hich Harris Williams LLC and Harris W illiams & Co. Ltd conduct business.

THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISS UER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE AN Y LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINAN CIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS.

The information and v iew s contained in this report w ere prepared by Harris Williams & Co. (“Harris Williams”). It is not a re search report, as such term is defined by applicable law and regulat ions, and is provided for informational purposes only. It is not to be construed as an o ffer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The i nformation contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris W illiams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies ment ioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addit ion, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securit ies, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report const itute Harris Williams’ judgment and are subject to change w ithout notice. The financial instruments discussed in this re port may not be suitable for all investors, and investors must make their ow n investment decisions using their own independent advisors as they believe ne cessary and based upon their specific financial situat ions and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, w ithout Harris Williams’ prior w ritten consent.

Copyr ight © 2016 Harris Williams & Co., all rights reserved.

DISCLOSURES

11


http://www.harriswilliams.com/

transportation & logistics - harriswilliams.com · automotive dealerships only capture ......

Documents