M&A MARKET MONITORTRANSPORTATION JANUARY 2019

5 Yr

4 Yr

3 Yr

2 Yr

1 Yr

23,382 23,405 21,379

19,365 19,608

11.1x 11.1x 10.8x11.8x

11.3x

-

5,000

10,000

15,000

20,000

25,000

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

18.0x

2014 2015 2016 2017 2018

Dea

l C

oun

t

Med

ian

TE

V/

LT

M E

BIT

DA

M

ult

iple

Deal Count Median TEV/ LTM EBITDA Multiple

About the DataThe information presented in this report is an analysis of deals in the United States or Canada. A deal is described as any c losed or announced M&A transaction where the target is headquartered in the United States or Canada, financial terms of the transaction have been disclosed, and the target has an industry classification that falls into the subject industry group and as such may not be representative of your company's market valuation. Past performance is not indicative of future result s. Certain adjustments have been made to the information to exclude transactions which are not specific to the industry or incorporate relevant transactions for which an industry classi fication was omitted.

US & Canada M&A Market Overview

Overall Market Transactions

Source: S&P Capital IQ; ArkMalibu; Other publicly available sources

As of 12/31/2018

Transportation

5 Yr

4 Yr

3 Yr

2 Yr

1 Yr

About the DataThe information presented in this report is an analysis of deals in the United States or Canada. A deal is described as any closed or announced M&A transaction where the target is headquartered in the United States or Canada, financial terms of the transaction have been disclosed, and the target has an industry classification that falls into the subject industry group and as such may not be representative of your company's market valuation. Past performance is not indicative of future results. Certain adjustments have been made to the information to exclude transactions which are not specific to the industry or incorporate relevant transactions for which an industry classification was omitted.

Source: S&P Capital IQ; ArkMalibu; Other publicly available sources

As of 12/31/2018

US & Canada M&A Market Overview

Transportation Transactions

317 319

259 252 274

8.7x

10.6x

8.3x

10.6x 10.6x

-

50

100

150

200

250

300

350

2014 2015 2016 2017 2018

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

Dea

l C

oun

t

Med

ian

TE

V/

LT

M E

BIT

DA

M

ult

iple

Deal Count Median TEV/ LTM EBITDA Multiple

Public Companies' Trading Metrics | TransportationAs of: 12/31/2018

USD in millions except per share price

Last Equity Enterprise EBITDA

Price Value Value Margin 2017A LTM NTM 2017A LTMLast Sale PriceMarket CapitalizationTotal Enterprise ValueLTM EBITDA Margin %CY - 1 TEV/Total RevenuesLTM TEV/Total RevenuesNTM TEV/Forward Total RevenueCY - 1 TEV/EBITDALTM TEV/EBITDANTM TEV/Forward EBITDA

Air Freight and Logistics

United Parcel Service, Inc. 97.53 83,780 102,329 14.2% 1.8 1.5 1.4 14.9 10.3

FedEx Corporation 161.33 42,114 57,282 12.6% 1.3 0.8 0.8 9.6 6.6

XPO Logistics, Inc. 57.04 7,241 11,466 8.6% 1.1 0.7 0.6 12.9 7.8

C.H. Robinson Worldwide, Inc. 84.09 11,563 12,606 5.8% 1.0 0.8 0.7 16.3 13.3

Expeditors International of Washington, Inc. 68.09 11,752 10,763 10.6% 1.6 1.4 1.3 14.5 13.0

Ryder System, Inc. 48.15 2,556 8,779 23.3% 1.4 1.1 1.0 5.5 4.6

Atlas Air Worldwide Holdings, Inc. 42.19 1,080 3,383 20.0% 1.7 1.3 1.2 7.9 6.6

Forward Air Corporation 54.85 1,602 1,614 12.7% 1.6 1.3 1.2 11.8 10.4

Air Transport Services Group, Inc. 22.81 1,348 1,846 31.4% 1.9 2.0 1.6 8.3 6.5

Hub Group, Inc. 37.07 1,271 1,315 4.7% 0.5 0.3 0.3 13.3 6.2

Echo Global Logistics, Inc. 20.33 580 737 3.2% 0.5 0.3 0.3 30.5 9.6

Cargojet Inc. 51.88 700 1,088 24.1% 3.2 3.4 3.2 14.3 14.0

Radiant Logistics, Inc. 4.25 210 248 3.4% 0.3 0.3 0.3 9.8 8.5

Median 51.88 1,602 3,383 12.6% 1.4 1.1 1.0 12.9 8.5

Less Than Truck Load (LTL)

Old Dominion Freight Line, Inc. 123.49 10,095 9,963 24.6% 3.4 2.5 2.3 14.5 10.4

Saia, Inc. 55.82 1,422 1,543 14.5% 1.4 1.0 0.9 11.1 6.7

ArcBest Corporation 34.26 880 917 7.5% 0.4 0.3 0.3 6.6 4.0

YRC Worldwide Inc. 3.15 107 802 4.9% 0.3 0.2 0.2 5.0 3.2

Roadrunner Transportation Systems, Inc. 0.50 19 537 -1.0% 0.4 0.2 NM 6.9 NM

Median 34.26 880 917 7.5% 0.4 0.3 0.6 6.9 5.4

NM

4.7

5.8

3.5

2.6

4.7

5.6

7.4

10.6

6.6

9.2

NTM

Category / Company Valuation Statistics Multiples Data

EV / Revenue (x) EV / EBITDA (x)

9.9

6.5

6.3

6.6

4.3

6.1

9.4

12.0

12.4

Source: SP Capital IQ; ArkMalibu;

EV = enterprise value; LTM = last twelve months; NTM = next twelve months

NM = Not Meaningful

Public Companies' Trading Metrics | TransportationAs of: 12/31/2018

USD in millions except per share price

Last Equity Enterprise EBITDA

Price Value Value Margin 2017A LTM NTM 2017A LTMLast Sale PriceMarket CapitalizationTotal Enterprise ValueLTM EBITDA Margin %CY - 1 TEV/Total RevenuesLTM TEV/Total RevenuesNTM TEV/Forward Total RevenueCY - 1 TEV/EBITDALTM TEV/EBITDANTM TEV/Forward EBITDA

NTM

Category / Company Valuation Statistics Multiples Data

EV / Revenue (x) EV / EBITDA (x)

Marine Freight

Kirby Corporation 67.36 4,033 5,432 15.8% 2.6 1.8 1.8 12.4 11.6

Seaspan Corporation 7.83 1,383 5,298 60.6% 4.5 5.2 4.5 7.7 8.6

Matson, Inc. 32.02 1,367 2,263 10.2% 1.0 1.0 1.0 7.9 8.7

Navios Maritime Holdings Inc. 2.74 32 1,603 32.2% 4.1 3.1 2.9 NM 10.3

Costamare Inc. 4.39 489 1,489 57.5% 4.0 4.0 3.9 6.3 6.6

SEACOR Holdings Inc. 37.00 675 978 19.4% 1.5 1.3 1.2 13.2 6.6

Diana Shipping Inc. 3.18 343 772 49.2% 7.2 3.6 3.1 169.4 7.4

Genco Shipping & Trading Limited 7.89 329 717 31.2% 4.6 2.2 2.3 43.1 7.0

Eagle Bulk Shipping Inc. 4.61 335 576 20.7% 2.8 1.9 2.3 71.2 9.3

Logistec Corporation 31.71 389 519 11.4% 1.5 1.3 NM 10.8 9.9

Algoma Central Corporation 9.29 357 555 21.0% 1.9 1.5 1.5 9.2 6.8

Pangaea Logistics Solutions, Ltd. 3.03 133 328 14.2% 1.0 0.9 0.8 10.7 6.2

Median 7.86 373 875 20.9% 2.7 1.9 2.3 10.8 8.0

Rail Freight

Union Pacific Corporation 138.23 101,846 122,357 47.8% 5.7 5.4 5.2 12.1 11.4

Canadian National Railway Company 74.10 53,966 62,450 49.8% 6.8 6.2 5.6 12.7 12.4

CSX Corporation 62.13 52,464 64,974 49.9% 5.2 5.4 5.2 11.7 10.4

Norfolk Southern Corporation 149.54 40,727 51,413 44.8% 4.9 4.6 4.3 11.6 10.2

Canadian Pacific Railway Limited 177.53 25,315 31,278 51.6% 6.4 6.1 5.6 12.5 11.8

Kansas City Southern 95.45 9,707 12,616 48.4% 5.5 4.7 4.4 11.2 9.7

Genesee & Wyoming Inc. 74.02 4,362 6,837 30.9% 3.5 2.9 2.8 11.6 9.4

Median 95.45 40,727 51,413 48.4% 5.5 5.4 5.2 11.7 10.4 10.1

4.2

5.4

5.3

6.3

10.9

8.9

9.2

10.1

9.8

11.4

7.6

8.2

6.3

NM

11.3

10.0

6.9

6.2

6.8

6.3

Source: SP Capital IQ; ArkMalibu;

EV = enterprise value; LTM = last twelve months; NTM = next twelve months

NM = Not Meaningful

Public Companies' Trading Metrics | TransportationAs of: 12/31/2018

USD in millions except per share price

Last Equity Enterprise EBITDA

Price Value Value Margin 2017A LTM NTM 2017A LTMLast Sale PriceMarket CapitalizationTotal Enterprise ValueLTM EBITDA Margin %CY - 1 TEV/Total RevenuesLTM TEV/Total RevenuesNTM TEV/Forward Total RevenueCY - 1 TEV/EBITDALTM TEV/EBITDANTM TEV/Forward EBITDA

NTM

Category / Company Valuation Statistics Multiples Data

EV / Revenue (x) EV / EBITDA (x)

Truck Load (TL)

J.B. Hunt Transport Services, Inc. 93.04 10,158 11,220 13.7% 2.0 1.4 1.2 13.1 9.9

Knight-Swift Transportation Holdings Inc. 25.07 4,346 5,229 17.0% 6.4 1.0 0.9 32.3 5.8

Schneider National, Inc. 18.67 3,305 3,322 13.3% 1.2 0.7 0.6 10.2 5.1

Landstar System, Inc. 95.67 3,933 3,835 8.0% 1.2 0.9 0.8 15.3 10.7

TFI International Inc. 25.87 2,261 3,344 12.9% 1.0 0.9 0.9 8.8 7.2

Werner Enterprises, Inc. 29.54 2,103 2,218 16.9% 1.4 0.9 0.8 8.3 5.5

Mullen Group Ltd. 8.95 938 1,296 14.3% 1.9 1.4 1.3 12.0 9.9

Heartland Express, Inc. 18.30 1,499 1,379 24.4% 3.3 2.2 2.2 12.3 9.0

Universal Logistics Holdings, Inc. 18.09 513 830 8.4% 0.8 0.6 0.5 11.4 7.1

Marten Transport, Ltd. 16.19 882 846 19.2% 1.6 1.1 1.0 8.3 5.7

Daseke, Inc. 3.68 237 953 10.5% 1.4 0.7 0.5 14.0 6.4

Covenant Transportation Group, Inc. 19.20 352 568 15.6% 1.1 0.7 0.6 7.1 4.2

P.A.M. Transportation Services, Inc. 39.41 235 419 15.2% 0.8 0.8 NM 6.7 5.5

USA Truck, Inc. 14.97 122 218 8.7% 0.6 0.4 0.4 13.4 4.8

ENTREC Corporation 0.11 12 125 8.1% 1.2 1.0 NM 24.0 12.6

Titanium Transportation Group Inc. 0.94 34 74 11.5% 0.8 0.6 0.5 7.7 4.9

Patriot Transportation Holding, Inc. 19.71 66 49 9.2% 0.4 0.4 NM 3.8 4.7

Median 18.67 882 953 13.3% 1.2 0.9 0.8 11.4 5.8 5.0

5.3

4.9

4.9

3.6

NM

4.6

NM

3.4

7.2

8.1

5.0

4.6

9.8

8.3

6.9

6.5

4.5

Source: SP Capital IQ; ArkMalibu;

EV = enterprise value; LTM = last twelve months; NTM = next twelve months

NM = Not Meaningful

ABOUTArkMalibu advises business owners by making highly informed and relevant recommendations on steps towards finding a great partner or monetizing their businesses. We help you maximize value by effectively conveying your company’s investment merits and minimizing the buyers’ perceived investment risks. As one of the most trusted boutique investment banking firms, we leverage our proprietary process to serve our privately-owned clients based on our experience, creativity, and avoidance of conflicts of interest. We focus our energy and talent on turning culture into capital so that we can creatively deliver value beyond our clients’ expectations.

Sell-Side Focused• ArkMalibu’s unique business model is to focus solely

on sell-side clients• Experienced and expert negotiators motivated to

meet all your goals• No conflicts of interest – other investment banks often

find themselves negotiating against their regular clients on the buyside

Art of the Possible• ArkMalibu has a strong track record of achieving

maximum value for our clients• Creativity to explore less obvious avenues for meeting

our client’s goals and achieving maximum value

Four Boxes Methodology• Proprietary process minimizes buyers’ perceived risks

and unlocks value for your company• Focus on your corporate culture fit

Client Focus• Active senior banker involvement• Financial advocates – effectively execute the client’s

chosen deal strategy• Financial confidants – confidentiality is of utmost

importance

Experienced Team• Our team has decades of M&A experience• Decades of operations, leadership, and strategic