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TRANSPORTATION & LOGISTICS
0
INDUSTRY UPDATE │ NOVEMBER 2015
PAGE |
www.harriswilliams.com
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 │ NOVEMBER 2015
TRUCKING | TRUCKLOAD RATE GROWTH EASES AS FREIGHT DEMAND SLOWS
The recent strong growth in rates is slowing as freight demand wanes andcapacity loosens, industry statistics show. The trend reflects a freight marketcharacterized in fleets’ comments about third-quarter earnings with words such as“soft” and “lackluster.” The shift also was illustrated last week when the CommerceDepartment reported gross domestic product rose at just a 1.5% annual pace inthe third quarter, far slower than the 3.9% second-quarter rate.
Transport Topics
MARINE | CARRIERS, SHIPPERS TEAM UP TO PREP FOR NEW REGULATIONS
Container lines, U.S. shippers and logistics providers are coming together to figureout the best way to prepare for the July 1 start of new global regulations requiringthe weighing of containers before they are allowed to be loaded onto a ship. TheAgriculture Transportation Coalition and the Transpacific Stabilization Agreementhave created a working committee to create best practices and respond toconcerns regarding the new amendments of the International Convention for theSafety of Life at Sea.Journal of Commerce
AIR | AIR FREIGHT MARKETS GROW SLIGHTLY IN SEPTEMBER
The International Air Transport Association (IATA) released data for global air freightmarkets showing very modest growth in September. Measured in Freight TonneKilometers, air cargo volumes rose 1.0% compared to the same month a year ago.This is a slight improvement on the August performance when volumes werebroadly stable. Overall, however, air cargo volumes remain 1.2% down from their2014 year-end peak.
IATA
RAIL | US SHIPPERS SHIFTING MORE FREIGHT FROM TRUCK TO RAIL
For the first time in nearly a year, more U.S. shippers say they are shifting freightfrom truck to rail than the other way around on improved intermodal service,according to a survey of roughly 600 shippers. Shippers said their expectations forintermodal volume growth through third quarter 2016 were their lowest in morethan three years, despite their belief that pricing gains will decelerate.Journal of Commerce
Fledgling companies are advancing the adaptation of Uber’s transportationmodel to arrange freight shipments, a step that experts believe offers acombination of opportunities in several trucking sectors as well as pitfalls. There aremajor differences between Uber’s model and the complex, specialized business-to-business world of trucking. Regulations in the trucking sector serve as the majorhurdle to overcome in the new business model.
Transport Topics
LOGISTICS | FIRMS TRY TO MIMIC UBER FOR FREIGHT SHIPMENTS
LOGISTICS | WAREHOUSE HIRING JUMPED IN OCTOBER
Warehousing companies added 5,100 jobs in October, the Labor Department saidFriday, the strongest employment growth in the sector since July in a sign of thegrowing impact of e-commerce in logistics hiring. The expansion in thewarehousing and storage jobs, part of a strong national jobs report for October,came as hiring at trucking, railroad and other shipping-related businesses slowedor contracted from September to October. But warehousing and storagebusinesses have added 18,200 jobs since June, and 46,100 jobs over the past 12months.Wall Street Journal
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Announced Sector Target Business Description Acquirer
11/4/2015 Logistics Juno Logistics Prov ides non-asset based, global third party logistics. Sojitz Logistics Corporation
11/2/2015 Logistics Copper Logistics, Inc. Prov ides domestic and international asset-light freight forwarding
serv ices.
Radiant Logistics, Inc.
11/2/2015 Logistics Dunbar Armored, Inc.,
Global Logistics
Operations
Prov ides armored logistics serv ices and cash management solutions. Loomis AB
10/29/2015 Logistics TransForce Waste
Management Segment
Prov ides an extended range of serv ices for residual materials
management in the residential, municipal, industrial, commercial,
and institutional sectors.
GFL Env ironmental Inc.
10/28/2015 Rail Pacific Imperial
Railroad, Inc.
Owns and operates shortline and freight railroad in California. Conatus Capital Group,
Inc.
10/21/2015 Logistics Courier Advisory Group
Inc.
Prov ides courier and managed delivery serv ices 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 serv ices to small to
midsized businesses.
Ridgemont Equity Partners
10/13/2015 Equipment Great Western Leasing
& Sales, Inc.
Prov ides full-serv ice, integrated solutions to the flatbed and
specialized trailer industy.
Argosy Capital; Argosy
Investment Partners V,
L.P.; Headhaul Capital
10/9/2015 Logistics UTi Worldwide Inc. Operates as a non-asset-based supply chain serv ices and solutions
company.
DSV A/S
10/7/2015 Air ACP Jets LLC Offers comprehensive aircraft charter and management serv ices. Jetflite International
10/6/2015 Logistics Torrey Pines
Transportation, Inc.
Prov ides chauffeured corporate ground transportation serv ices to
corporate travelers, group managers, and private indiv iduals in San
Diego.
Marcou Transportation
Group, LLC
10/5/2015 Logistics SMARTLogix, Inc. Prov ides petroleum management, inventory, and transportation
logistics solutions for the petroleum logistics business in North
America.
SkyBitz, Inc.
10/2/2015 Air Total Airport Serv ices,
Inc.
Prov ides av iation serv ices to airline carriers and airports in North
America.
CCR USA Airport
Management, Inc.
9/30/2015 Rail FreightCar Rail Serv ices,
LLC and FreightCar Short
Line, Inc.
Prov ide railcar maintenance, fleet management, railroad operations,
and railcar acquisition serv ices.
ARS Nebraska, LLC
9/22/2015 Rail A.Stucki Company Designs, manufactures, reconditions and supplies railcar dynamic
control products for the rail transportation market.
Stone Canyon Industries
9/17/2015 Logistics M33 Integrated
Solutions, Inc.
Prov ides logistics, supply chain, and transportation management
serv ices.
Transplace Inc.
9/16/2015 Logistics Pacific Alaska
Freightways, Inc.
Prov ides freight transportation serv ices to businesses and consumers
in Anchorage, Fairbanks, Kenai, Kodiak, and Southeast Alaska.
Span-Alaska
Transportation, Inc.
9/16/2015 Logistics Theodor Wille Intertrade
AG
Provides supply chain management serv ices for defense,
government, and energy sectors in Switzerland and internationally.
ADS, Inc.
9/14/2015 Logistics Global Shippers
Association
Combines the buying power of shippers to secure and maintain
competitive rates from the ship lines.
IMC Global Solutions, LLC
M&A TRANSACTIONS
2
RECENT M&A TRANSACTIONS1,2
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ NOVEMBER 2015
PAGE |
6.7%
7.2%
8.3%
10.2%
11.3%
Marine
Rail & Rail
Services
Transportation
Equipment
Logistics
Providers
Trucking
5.5%
7.4%
7.5%
14.2%
18.0%
Logistics Providers
Transportation
Equipment
Marine
Trucking
Rail & Rail Services
(4.3%)
2.1%
3.6%
3.9%
5.1%
Marine
Transportation
Equipment
Rail & Rail Services
Logistics Providers
Trucking
3.5%
6.4%
7.8%
8.7%
11.5%
Marine
Logistics Providers
Trucking
Transportation
Equipment
Rail & Rail Services
5.2x
6.2x
7.7x
8.2x
10.3x
Trucking
Transportation
Equipment
Marine
Rail & Rail Services
Logistics Providers
5.3x
5.7x
8.1x
10.2x
10.5x
Transportation
Equipment
Trucking
Rail & Rail Services
Logistics Providers
Marine
PUBLIC MARKETS OVERVIEW
3
TRANSPORTATION & LOGISTICS
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)
INDUSTRY UPDATE │ NOVEMBER 2015
PAGE |
(40%)
(30%)
(20%)
(10%)
0%
10%
20%
Nov-07-2014 Feb-07-2015 May-07-2015 Aug-07-2015 Nov-07-2015
Logistics Providers Trucking Rail and Rail Services
Marine Transportation Equipment S&P 500 Index
(28.2%)
(25.5%)
(19.2%)
(18.0%)
(4.6%)
Rail & Rail Services
Marine
Transportation Equipment
Trucking
Logistics Providers
(6.6%)
(1.6%)
1.2%
2.7%
5.0%
Transportation Equipment
Rail & Rail Services
Marine
Logistics Providers
Trucking
STOCK PRICE PERFORMANCE
4
TRANSPORTATION & LOGISTICS
(Indexed to November 7, 2014)
TRAILING TWELVE MONTHS
MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH)
INDUSTRY UPDATE │ NOVEMBER 2015
PAGE |
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
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 │ NOVEMBER 2015
a portfolio company of
has been acquired byhas been acquired by
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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
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
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has acquired
a portfolio company of
has been acquired by
Energy, Power& Infrastructure
IndustrialsHealthcare & Life Sciences
Transportation & Logistics
Aerospace, Defense & Government
Services
Business Services
Building Products & Materials
Technology, Media & Telecom
Specialty Distribution
Consumer
PAGE |
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Transportation & Logistics
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OUR FIRM
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ NOVEMBER 2015
PAGE |
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 Nov-14 May-15 Current 2015E 2016P
Transportation & Logistics
TEV / LTM EBITDA as of
Logistics Providers
Agility Public Warehousing Company K.S.C.P. $1,953 $1.68 (4.4%) (40.3%) $2.79 60.2% 9.9x 10.5x 7.6x 6.9x 6.5x
Air Transport Services Group, Inc. $928 $9.82 5.8% 15.0% $10.96 89.6% 5.2x 5.3x 4.8x 4.8x 4.4x
Atlas Air Worldwide Holdings, Inc. $2,434 $41.32 2.6% (0.9%) $59.47 69.5% 8.0x 7.9x 6.2x 6.5x 6.5x
CH Robinson Worldwide Inc. $10,838 $68.72 (2.1%) (3.8%) $77.49 88.7% 14.7x 13.0x 12.2x 11.8x 11.2x
Deutsche Post AG $39,670 $29.57 1.4% (4.6%) $33.51 88.2% 8.4x 11.5x 10.9x 8.7x 7.6x
DSV A/S $7,648 $41.44 7.7% 38.7% $41.60 99.6% 11.9x 15.3x 15.4x 14.9x 14.0x
Echo Global Logistics, Inc. $904 $24.31 8.3% (11.1%) $34.35 70.8% 19.6x NM NM 13.4x 9.7x
Expeditors International of Washington Inc. $8,252 $49.49 0.4% 11.9% $51.80 95.5% 12.1x 12.1x 11.0x 10.7x 10.4x
FedEx Corporation $49,568 $162.38 6.2% (5.2%) $185.19 87.7% 7.6x 7.3x 6.9x 7.2x 6.4x
Forward Air Corp. $1,519 $47.60 8.8% (0.7%) $57.65 82.6% 11.8x 12.9x 11.2x 11.1x 9.1x
Hub Group Inc. $1,365 $39.20 1.3% 4.4% $44.00 89.1% 10.0x 11.1x 9.7x 10.9x 9.5x
JB Hunt Transport Services Inc. $9,764 $76.58 2.9% (4.2%) $93.50 81.9% 11.5x 11.3x 9.4x 9.3x 8.5x
Kuehne + Nagel International AG $16,110 $138.34 6.1% 6.5% $147.99 93.5% 14.2x 15.7x 15.5x 15.4x 14.9x
Landstar System Inc. $2,734 $64.05 (0.8%) (16.5%) $81.80 78.3% 14.9x 11.0x 10.2x 10.2x 9.6x
Panalpina World Transport Holding Ltd. $2,432 $114.45 (0.1%) (14.1%) $147.30 77.7% 18.0x 19.3x 17.0x 13.4x 10.7x
Roadrunner Transportation Systems, Inc. $871 $11.04 (40.6%) (50.7%) $28.51 38.7% 11.6x 10.7x 6.9x 7.1x 6.4x
Ryder System, Inc. $9,216 $71.88 (3.0%) (21.4%) $100.64 71.4% 5.8x 5.9x 5.3x 5.1x 4.8x
TransForce Inc. $3,157 $18.87 (2.1%) (20.8%) $23.76 79.4% 10.6x 10.4x 8.1x 8.1x 8.0x
United Parcel Service, Inc. $101,081 $104.99 2.7% (3.1%) $114.40 91.8% 13.1x 13.8x 12.1x 10.4x 9.7x
Universal Truckload Services Inc. $692 $16.48 5.1% (37.3%) $29.06 56.7% 9.1x 7.1x 6.3x 6.4x 6.1x
UTi Worldwide Inc. $1,301 $7.09 45.3% (36.6%) $14.75 48.1% NM NM NM NM NM
World Fuel Services Corp. $3,481 $45.15 14.0% 2.3% $58.50 77.2% 11.5x 12.2x 11.5x 11.3x 10.3x
XPO Logistics, Inc. $6,202 $33.50 14.8% (13.7%) $50.96 65.7% NM NM 19.0x 12.3x 5.0x
Median 2.7% (4.6%) 79.4% 11.5x 11.2x 10.2x 10.3x 8.8x
Trucking
ArcBest Corporation $659 $28.06 5.0% (33.8%) $47.52 59.0% 7.0x 5.5x 3.8x 3.8x 3.3x
Celadon Group Inc. 1,001 14.75 (9.3%) (30.3%) 29.15 50.6% 7.9x 9.0x 8.3x 7.5x 5.8x
Covenant Transportation Group, Inc. 540 21.88 2.5% 2.1% 36.82 59.4% 7.4x 7.2x 4.3x 4.4x 4.1x
Heartland Express, Inc. 1,659 20.01 (3.4%) (20.2%) 27.96 71.6% 11.6x 8.6x 8.3x 7.3x 7.1x
Knight Transportation Inc. 2,349 27.54 8.9% (6.8%) 34.73 79.3% 11.3x 9.8x 8.4x 7.9x 7.2x
Marten Transport Ltd. 612 17.43 2.1% (15.9%) 24.92 69.9% 6.5x 6.1x 4.9x 4.6x 4.2x
Old Dominion Freight Line Inc. 5,765 65.55 5.3% (12.7%) 81.48 80.4% 12.2x 10.1x 8.8x 8.6x 7.8x
P.A.M. Transportation Services, Inc. 348 41.34 15.0% (3.5%) 67.61 61.1% 7.2x 8.5x 5.7x NA NA
Saia, Inc. 688 24.50 (23.7%) (52.3%) 57.60 42.5% 9.6x 7.6x 4.4x 4.5x 4.3x
Swift Transportation Company 3,879 17.52 8.6% (30.3%) 29.44 59.5% 9.1x 8.1x 6.3x 6.2x 5.8x
Universal Truckload Services Inc. 692 16.48 5.1% (37.3%) 29.06 56.7% 9.1x 7.1x 6.3x 6.4x 6.1x
USA Truck Inc. 266 18.93 (3.3%) 8.4% 32.14 58.9% 6.2x 5.8x 4.4x 4.5x 4.6x
Werner Enterprises Inc. 2,041 27.98 9.0% (1.1%) 33.42 83.7% 6.8x 6.0x 5.7x 5.2x 4.9x
YRC Worldwide Inc. 1,443 17.55 14.9% (26.8%) 25.40 69.1% 9.8x 6.1x 4.8x 4.1x 3.8x
Median 5.0% (18.0%) 60.3% 8.5x 7.4x 5.7x 5.2x 4.9x
PUBLIC COMPARABLES
7
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ NOVEMBER 2015
PAGE |
Rail and Rail Services
American Railcar Industries, Inc. $1,577 $55.32 35.3% (16.5%) $70.45 78.5% 8.0x 6.6x 6.3x 5.8x 6.3x
Canadian National Railway Company 54,543 59.14 (1.6%) (14.9%) 66.83 88.5% 13.2x 12.7x 11.6x 11.2x 10.6x
Canadian Pacific Railway Limited 26,735 134.29 (12.4%) (34.8%) 184.22 72.9% 16.6x 15.3x 11.4x 10.9x 10.0x
CSX Corp. 35,547 27.07 (4.6%) (23.6%) 37.99 71.3% 9.4x 9.2x 7.3x 7.4x 7.1x
FreightCar America Inc. 155 22.70 17.4% (32.0%) 35.05 64.8% NM 8.7x 3.7x 2.9x 3.2x
Genesee & Wyoming Inc. 6,036 69.86 5.0% (28.8%) 105.49 66.2% 12.5x 12.4x 10.4x 10.3x 9.3x
The Greenbrier Companies, Inc. 1,385 36.87 5.6% (38.5%) 67.45 54.7% 8.3x 6.7x 3.2x 3.2x 3.0x
Kansas City Southern 12,110 87.65 (9.4%) (28.9%) 126.49 69.3% 14.7x 12.3x 11.1x 11.0x 10.2x
Norfolk Southern Corporation 33,190 79.87 (1.6%) (29.2%) 117.64 67.9% 9.4x 8.8x 8.0x 8.2x 7.8x
Trinity Industries Inc. 7,204 27.44 6.2% (23.1%) 37.15 73.9% 6.8x 5.6x 4.8x 4.4x 5.4x
Union Pacific Corporation 85,678 85.98 (9.6%) (27.6%) 124.52 69.0% 11.3x 9.7x 8.2x 8.3x 7.8x
Westinghouse Air Brake Technologies Corporation 7,731 77.60 (16.7%) (13.1%) 105.10 73.8% 16.0x 15.9x 11.8x 11.5x 10.6x
Median (1.6%) (28.2%) 70.3% 11.3x 9.5x 8.1x 8.2x 7.8x
Marine
Aegean Marine Petroleum Network Inc. $1,089 $7.93 3.8% (15.5%) $15.71 50.5% 13.4x 13.0x 11.2x 9.6x 8.3x
Costamare Inc. 2,516 13.87 1.9% (33.3%) 21.20 65.4% 10.7x 9.9x 7.9x 7.3x 7.1x
Diana Shipping Inc. 865 6.20 (12.7%) (23.4%) 8.63 71.8% 17.1x 17.4x NM NM NM
Kirby Corporation 4,448 67.28 2.7% (36.2%) 106.73 63.0% 10.5x 8.5x 7.5x 7.7x 7.5x
Matson, Inc. 2,756 52.82 27.2% 81.6% 53.18 99.3% 8.1x 8.2x 10.5x 8.8x 8.4x
Neptune Orient Lines Limited 4,759 0.74 3.7% 24.2% 0.84 87.1% NM 16.2x 12.0x 15.2x 9.6x
Nordic American Tankers Limited 1,495 15.14 (8.0%) 79.4% 17.45 86.8% NM 13.6x 11.1x 6.8x 7.2x
Rand Logistics, Inc. 248 2.13 0.5% (59.9%) 5.35 39.8% 9.6x 8.1x 8.2x 7.0x 7.3x
SEACOR Holdings Inc. 1,570 56.64 (12.5%) (27.7%) 78.95 71.7% 8.8x 8.9x 8.7x 9.8x 7.3x
Wilh. Wilhelmsen ASA 1,883 4.49 (1.7%) (34.6%) 6.00 74.8% 18.0x 15.9x 10.6x 4.3x 4.2x
Median 1.2% (25.5%) 71.8% 10.6x 11.4x 10.5x 7.7x 7.3x
Transportation Equipment
Accuride Corp. $407 $2.59 (16.2%) (47.7%) $5.47 47.3% 7.9x 6.4x 5.3x 5.5x 5.0x
Dana Holding Corporation 3,248 16.45 (6.6%) (19.2%) 23.48 70.1% 5.5x 6.1x 4.9x 4.6x 4.8x
Gentherm Incorporated 1,716 47.95 0.5% 17.2% 57.95 82.7% 12.0x 13.9x 11.5x 12.8x 11.5x
Spartan Motors Inc. 125 4.10 (8.7%) (25.3%) 5.69 72.1% 15.1x 15.0x 17.2x 13.2x 15.4x
Wabash National Corp. 997 12.95 12.5% 21.7% 15.21 85.1% 6.6x 7.3x 5.0x 6.2x 4.6x
Median (6.6%) (19.2%) 72.1% 7.9x 7.3x 5.3x 6.2x 5.0x
PUBLIC COMPARABLES
8
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ NOVEMBER 2015
Stock Performance
Stock Price Change from 52-Week TEV / EBITDA EBITDA
($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Nov-14 May-15 Current 2015E 2016P
Transportation & Logistics
TEV / LTM EBITDA as of
PAGE |
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 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 $303 10.0% 6.9%
Air Transport Services Group, Inc. 730 607 580 590 590 630 (6.9%) 3.4% 181 163 158 179 194 210 (0.3%) 8.1%
Atlas Air Worldwide Holdings, Inc. 1,384 1,632 1,643 1,785 1,847 1,881 8.8% 2.7% 203 296 307 344 377 375 19.1% 4.3%
CH Robinson Worldwide Inc. 10,336 11,359 12,752 13,470 13,580 14,430 9.2% 3.5% 720 751 731 797 921 965 3.4% 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 5,236 9.7% 8.2%
DSV A/S 7,639 7,937 8,439 7,896 7,396 7,705 1.1% (1.2%) 498 519 543 486 513 544 (0.8%) 5.9%
Echo Global Logistics, Inc. 603 758 884 1,173 1,528 1,949 24.9% 28.9% 23 27 27 36 66 91 16.5% 58.8%
Expeditors International of Washington Inc. 6,162 5,992 6,080 6,565 6,735 7,018 2.1% 3.4% 655 571 600 644 769 794 (0.6%) 11.0%
FedEx Corporation 39,304 42,680 44,287 45,567 47,609 50,096 5.1% 4.9% 4,506 5,367 6,112 6,417 6,891 7,714 12.5% 9.6%
Forward Air Corp. 509 584 652 781 959 1,041 15.4% 15.4% 97 104 107 127 144 167 9.4% 15.0%
Hub Group Inc. 2,752 3,124 3,374 3,571 3,542 3,719 9.1% 2.0% 112 134 138 135 124 143 6.4% 2.8%
JB Hunt Transport Services Inc. 3,678 4,058 4,527 5,083 6,196 6,781 11.4% 15.5% 658 759 830 926 1,057 1,156 12.1% 11.7%
Kuehne + Nagel International AG 17,351 18,699 19,290 17,618 20,186 21,471 0.5% 10.4% 1,038 979 1,070 987 1,040 1,087 (1.7%) 5.0%
Landstar System Inc. 2,594 2,735 2,628 3,145 3,315 3,427 6.6% 4.4% 204 223 201 250 269 285 6.9% 6.8%
Panalpina World Transport Holding Ltd. 6,954 7,227 7,589 6,752 6,107 6,436 (1.0%) (2.4%) 220 92 161 150 179 222 (11.9%) 21.7%
Roadrunner Transportation Systems, Inc. 844 1,073 1,361 1,873 2,004 2,046 30.5% 4.5% 54 81 99 121 125 140 30.9% 7.6%
Ryder System, Inc. 6,051 6,257 6,419 6,639 6,581 6,924 3.1% 2.1% 1,290 1,396 1,459 1,628 1,799 1,912 8.1% 8.4%
TransForce Inc. 2,378 2,822 2,620 2,817 3,227 3,274 5.8% 7.8% 313 392 318 361 387 411 4.9% 6.6%
United Parcel Service, Inc. 53,105 54,127 55,438 58,232 58,602 61,699 3.1% 2.9% 7,830 3,201 8,868 6,864 9,757 10,421 (4.3%) 23.2%
Universal Truckload Services Inc. 991 1,037 1,033 1,192 1,121 1,153 6.3% (1.6%) 84 96 105 115 108 110 11.1% (1.9%)
UTi Worldwide Inc. 4,550 4,914 4,608 4,436 4,284 3,807 (0.8%) (7.4%) 183 213 146 84 96 67 (22.9%) (10.6%)
World Fuel Services Corp. 34,623 38,945 41,562 43,386 31,516 31,704 7.8% (14.5%) 291 287 301 319 305 350 3.0% 4.8%
XPO Logistics, Inc. 177 279 702 2,357 7,446 15,165 NM NM 3 (25) (20) 95 517 1,257 NM NM
Total $276,120 $295,078 $306,963 $308,106 $304,205 $325,167 6.4% 3.9% $22,746 $20,009 $27,672 $25,797 $30,547 $33,959 5.5% 10.2%
Trucking
ArcBest Corporation $1,908 $2,066 $2,300 $2,613 $2,670 $2,791 11.1% 3.4% $82 $70 $104 $155 $174 $194 23.5% 12.0%
Celadon Group Inc. 467 475 489 615 888 1,080 9.6% 32.5% 89 103 100 97 136 171 3.1% 32.5%
Covenant Transportation Group, Inc. 512 527 539 579 705 741 4.2% 13.2% 63 71 65 89 122 130 11.8% 21.2%
Heartland Express, Inc. 529 546 582 871 742 759 18.1% (6.6%) 132 138 149 208 227 233 16.3% 5.9%
Knight Transportation Inc. 697 752 792 926 1,208 1,301 9.9% 18.5% 169 184 192 239 301 326 12.3% 16.8%
Marten Transport Ltd. 604 638 659 673 671 732 3.7% 4.3% 97 101 110 115 133 146 5.9% 12.6%
Old Dominion Freight Line Inc. 1,904 2,135 2,338 2,788 2,986 3,211 13.6% 7.3% 326 396 460 587 670 738 21.6% 12.1%
P.A.M. Transportation Services, Inc. 284 298 313 317 NA NA 3.7% NA 29 41 50 55 NA NA 23.7% NA
Saia, Inc. 1,030 1,099 1,139 1,272 1,227 1,238 7.3% (1.3%) 65 107 126 145 151 149 30.3% 1.5%
Swift Transportation Company 3,779 3,976 4,118 4,299 4,255 4,434 4.4% 1.6% 549 573 577 583 629 677 2.0% 7.8%
Universal Truckload Services Inc. 991 1,037 1,033 1,192 1,121 1,153 6.3% (1.6%) 84 96 105 115 108 110 11.1% (1.9%)
USA Truck Inc. 411 512 555 602 520 541 13.6% (5.2%) 33 20 35 60 60 61 22.0% 1.2%
Werner Enterprises Inc. 2,003 2,036 2,029 2,139 2,111 2,216 2.2% 1.8% 311 318 296 318 391 415 0.7% 14.3%
YRC Worldwide Inc. 4,869 4,851 4,865 5,069 4,833 4,933 1.4% (1.4%) 49 198 199 197 351 393 NM NM
Total $19,987 $20,948 $21,752 $23,955 $23,937 $25,131 7.8% 5.1% $2,080 $2,415 $2,567 $2,962 $3,452 $3,744 14.2% 11.3%
PUBLIC COMPARABLES
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TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ NOVEMBER 2015
PAGE |
Rail and Rail Services
American Railcar Industries, Inc. $519 $712 $751 $733 $853 $823 12.2% 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 9,989 5.7% (2.4%) 4,112 4,624 4,568 4,900 4,843 5,126 6.0% 2.3%
Canadian Pacific Railway Limited 4,970 5,568 5,631 5,582 5,101 5,326 3.9% (2.3%) 1,378 1,778 2,190 2,434 2,459 2,671 20.9% 4.7%
CSX Corp. 11,795 11,763 12,026 12,669 11,934 12,054 2.4% (2.5%) 4,446 4,523 4,577 4,764 4,845 4,990 2.3% 2.3%
FreightCar America Inc. 487 677 290 599 812 731 7.1% 10.5% 12 41 (8) 17 55 50 NM NM
Genesee & Wyoming Inc. 829 875 1,569 1,639 2,008 2,216 25.5% 16.3% 252 277 534 574 593 651 31.6% 6.5%
The Greenbrier Companies, Inc. 1,174 1,736 1,685 2,121 2,652 2,786 21.8% 14.6% 97 152 145 237 431 466 34.5% 40.2%
Kansas City Southern 2,098 2,239 2,369 2,577 2,445 2,558 7.1% (0.4%) 772 872 962 1,106 1,089 1,189 12.7% 3.7%
Norfolk Southern Corporation 11,172 11,040 11,245 11,624 10,629 10,823 1.3% (3.5%) 4,082 4,046 4,179 4,531 4,053 4,269 3.5% (2.9%)
Trinity Industries Inc. 2,938 3,812 4,365 6,170 6,452 5,921 28.1% (2.0%) 575 730 963 1,400 1,644 1,381 34.6% (0.7%)
Union Pacific Corporation 18,508 19,686 20,684 22,560 22,186 22,893 6.8% 0.7% 7,341 8,505 9,223 10,657 10,297 11,032 13.2% 1.7%
Westinghouse Air Brake Technologies Corporation 1,968 2,391 2,566 3,044 3,318 3,526 15.7% 7.6% 334 436 485 588 675 718 20.8% 10.4%
Total $65,339 $70,451 $73,136 $79,795 $77,926 $79,646 11.5% 3.6% $23,455 $26,129 $27,997 $31,412 $31,254 $32,793 18.0% 7.2%
Marine
Aegean Marine Petroleum Network Inc. $6,965 $7,259 $6,335 $6,662 $4,470 $4,604 (1.5%) (16.9%) $75 $85 $75 $98 $115 $136 9.1% 17.6%
Costamare Inc. 382 386 414 484 491 508 8.2% 2.5% 236 238 258 318 343 358 10.4% 6.1%
Diana Shipping Inc. 256 221 164 176 161 174 (11.8%) (0.4%) 166 124 53 50 32 32 (32.9%) (19.5%)
Kirby Corporation 1,850 2,113 2,242 2,566 2,184 2,170 11.5% (8.0%) 445 509 582 647 577 588 13.3% (4.7%)
Matson, Inc. 1,463 1,560 1,637 1,714 1,907 2,078 5.4% 10.1% 142 175 172 203 309 330 12.8% 27.5%
Neptune Orient Lines Limited 9,211 9,512 8,831 8,617 6,041 5,764 (2.2%) (18.2%) (90) 96 131 294 307 449 NM 23.7%
Nordic American Tankers Limited 95 131 244 351 299 292 NM NM 10 13 (21) 60 220 201 NM NM
Rand Logistics, Inc. 98 109 119 129 149 143 9.9% 5.0% 16 28 25 29 35 34 23.3% 7.6%
SEACOR Holdings Inc. 1,032 1,308 1,247 1,319 1,074 1,102 8.5% (8.6%) 154 165 194 241 160 218 16.3% (5.0%)
Wilh. Wilhelmsen ASA 309 395 325 285 2,402 2,513 NM NM 147 227 154 140 436 458 NM NM
Total $21,661 $22,993 $21,559 $22,303 $19,179 $19,349 3.5% (4.3%) $1,299 $1,658 $1,624 $2,080 $2,534 $2,803 7.5% 6.7%
Transportation 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%) 720 753 706 705 675 695 (0.7%) (0.7%)
Gentherm Incorporated 370 555 662 811 860 946 30.0% 8.0% 46 67 84 135 149 166 42.6% 11.1%
Spartan Motors Inc. 426 471 470 507 536 553 6.0% 4.5% 14 16 6 9 8 11 (12.6%) 7.5%
Wabash National Corp. 1,187 1,462 1,636 1,863 1,990 1,963 16.2% 2.6% 33 108 142 161 214 210 NM 14.3%
Total $10,331 $10,506 $10,179 $10,504 $10,126 $10,265 8.7% 2.1% $888 $1,008 $981 $1,084 $1,128 $1,171 7.4% 8.3%
PUBLIC COMPARABLES
10
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ NOVEMBER 2015
Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth
($ in millions) 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P
Transportation & Logistics
PAGE |
TRANSPORTATION & LOGISTICS
SOURCES
TRANSPORTATION & LOGISTICS
1. Capital IQ.
2. MergerMarket.
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DISCLOSURES
11
INDUSTRY UPDATE │ NOVEMBER 2015