transportation & logistics · 2/9/2015 logistics ux specialized logistics provides non-asset...
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www.harriswilliams.de
Harris Williams & Co. Ltd is a private limited company incorporated under English law having its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered withthe Registrar of Companies for England and Wales under company number 7078852. Directors: Mr. Christopher Williams, Mr. Ned Valentine, Mr. Paul Poggi and Mr. Thierry Monjauze,authorised and regulated by the Financial Conduct Authority.
Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main,Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany. Permanent Representative(Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins.
TRANSPORTATION & LOGISTICS
0
INDUSTRY UPDATE │ MARCH 2015
PAGE |
www.harriswilliams.de
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 │ MARCH 2015
LOGISTICS | MANAGING MOUNTAIN OF DATA A CHALLENGE TO VISIBILITY
The quality, availability and management of data has to improve if the supplychain is to efficiently handle the mountain of information that is now available tocarriers and their customers, panelists said at the 15th annual TPM Conference inLong Beach, California. Bill Schwebel, president of INTTRA Data, said theinformation management business was at a “lucky” time, with the cloud basedtechnology and all the analytics that were available. But with so much dataavailable, one of the greatest challenges being faced by carriers, forwarders andsoftware providers was how to manage it without being buried under the tsunamiof information.
Journal of Commerce
LOGISTICS | SIDECAR'S DELIVERY SERVICE NOW ACCOUNTS FOR 25% OF SF RIDES
Sidecar is turning into a delivery company. The San Francisco based start-up reported today that 25 percent of its total rides provided in the Bay Area arenow deliveries, up 15 percent from last month. Sidecar is working with e-commerce, food, flower, and grocery companies to deliver items that are often inthe trunk of a car that’s also shuttling people around town. Sidecar said it can offera cheaper price point and faster deliveries than traditional companies in thedelivery industry.
Geek Wire
RAIL | WEST COAST INTERMODAL VOLUME SURGE TESTS INLAND HUBS
Tightening Chicago drayage capacity is causing rates to spike, as shippers havelittle choice but to pay for more local trucking to avoid demurrage charges thatrailroads impose if loads aren’t removed from terminals after two days. Drayagerates for the largest North American freight hub have spiked at least 10 percentover the last several weeks, largely because there are not enough drivers tohandle the surges of international intermodal cargo moving from West Coast ports.
Journal of Commerce
MARINE | CONTAINER LINE FINANCIALS GRADUALLY IMPROVING
Container line financials are gradually improving thanks to asset sales, reducedoperating expenses, debt reduction and effects of a 50 percent drop in bunkerfuel, says the consulting firm Alix Partners. Yet the industry remains challenged andhas yet to demonstrate that the recent improvements are sustainable, EsbenChristensen, director, told a webcast organized by Stifel Capital Markets on Friday.
Journal of Commerce
TRUCKING | INTERMODAL FREIGHT MARKET FACING BIG CHALLENGES
Intermodal freight movements are finally recovering since a tentativeagreement was worked out about three weeks ago between West Coast Portworkers and shipping companies, but diversions of freight from this part of thecountry are expected to continue. That was one of the messages on Thursdaycoming from intermodal and rail expert and senior consultant to FTR, Larry Gross,during a webinar hosted by the freight forecasting firm.
Trucking Info
AIR | THREE PRIORITIES FOR AIR CARGO
The International Air Transport Association (IATA) called for further action on threevital aspects of the air cargo business: transitioning to paperless freight processes,a focus on global handling standards for pharmaceutical freight, and toughaction to ensure the continued safe transportation of lithium batteries by air.
IATA
PAGE |
Date Sector Target Business Description Acquirer
Pending Logistics Air Medical Group
Holdings, Inc.
Prov ides air ambulance serv ices. KKR & Co.
Pending Rail Freightliner Group Ltd Provides international freight rail serv ices with operations in the
United Kingdom, Poland, Germany, the Netherlands, and Australia.
Genesee & Wyoming Inc.
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 Logistics Wheels Group Inc. Prov ides third party logistics and supply chain solutions in North
America.
Radiant Global Logistics
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.
3/9/2015 Trucking CLP Towne Inc. Doing business as Towne Air Freight. Prov ides full-serv ice trucking
solutions and specializes in time-definite airport-to-airport trucking.
Forward Air, Inc.
3/3/2015 Equipment Milestone Equipment
Holdings, LLC
Transportation equipment lessor specializing in highway trailers,
intermodal trailers, domestic intermodal containers, and chassis.
Wood Creek Capital
Management, LLC
3/3/2015 Logistics Neovia Logistics
Serv ices, LLC
Provides third party contract logistics serv ices, including warehouse
management, fulfillment, and distribution solutions.
The Goldman Sachs Group
Rhone Capital L.L.C.
3/2/2015 Logistics Pegasus Transportation,
Inc.
Prov ides regional truckload serv ices, with a focus on the high-
security, temperature sensitive, health sciences sector and the
automotive industry.
CRST International, Inc.
2/26/2015 Logistics ITS Logistics LLC Provides a variety of serv ices in supply chain management,
transportation, warehousing, brokerage logistics, and transportation
management.
McNally Capital, LLC
Coughlin Capital, LLC
2/9/2015 Logistics UX Specialized Logistics Prov ides non-asset based, last mile logistics serv ices including home
delivery, assembly and installation, and same-day delivery.
XPO Last Mile, Inc.
2/5/2015 Logistics Xpress Solutions, Inc. Prov ides non-asset based less-than-truckload and truckload solutions
with a regional focus in the Midwest.
Echo Global Logistics, Inc.
2/4/2015 Rail Railroad Controls Limited Provides railroad signal construction serv ices to the freight and
commuter rail industry.
Westinghouse Air Brake
Technologies Corporation
2/9/2015 Logistics Lazer Spot, Inc. Prov ides outsourced yard management serv ices including trailer
spotting and shuttling.
Greenbriar Equity Group
2/2/2015 Logistics PODS Enterprises, Inc. Prov ides container-based moving and storage serv ices. Ontario Teachers' Pension
Plan
2/2/2015 Logistics Linkex, Inc. Prov ides asset-light, third party logistics serv ices including supply
chain design, transportation, warehousing, and last mile solutions.
Saia, Inc.
1/30/2015 Logistics GENCO Distribution
Systems, Inc.
Prov ides product lifecycle and reverse logistics solutions in North
America and internationally.
FedEx Corporation
M&A TRANSACTIONS
2
RECENT M&A TRANSACTIONS1,2
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ MARCH 2015
PAGE |
PUBLIC MARKETS OVERVIEW
3
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ MARCH 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)
7.5x
8.7x
9.4x
11.3x
11.8x
Transportation
Equipment
Trucking
Marine
Rail & Rail Services
Logistics Providers
6.4x
7.3x
8.3x
9.1x
10.6x
Transportation
Equipment
Trucking
Marine
Rail & Rail Services
Logistics Providers
5.4%
7.4%
7.7%
8.7%
12.2%
Marine
Logistics Providers
Trucking
Transportation
Equipment
Rail & Rail Services
5.2%
5.8%
8.0%
8.7%
9.7%
Transportation
Equipment
Marine
Logistics Providers
Rail & Rail Services
Trucking
7.2%
7.4%
7.7%
13.0%
18.4%
Logistics Providers
Transportation
Equipment
Marine
Trucking
Rail & Rail Services
11.1%
12.5%
12.6%
13.9%
16.0%
Transportation
Equipment
Rail & Rail Services
Marine
Logistics Providers
Trucking
PAGE |
STOCK PRICE PERFORMANCE
4
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ MARCH 2015
(Indexed to March 17, 2014)
TRAILING TWELVE MONTHS
MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH)
(6.5%)
(4.6%)
(1.6%)
3.6%
3.7%
Transportation
Equipment
Marine
Rail & Rail Services
Trucking
Logistics Providers
(12.4%)
(2.5%)
13.8%
18.6%
21.2%
Marine
Transportation
Equipment
Trucking
Rail & Rail Services
Logistics Providers
(30%)
(20%)
(10%)
0%
10%
20%
30%
40%
3/17/14 6/17/14 9/17/14 12/17/14 3/17/15
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 │ MARCH 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
and
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
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
THIRD-PARTY LOGISTICS
AIRPORT & AVIATION SERVICES
5
in partnership with
and
has been acquired by
a portfolio company of
RCL Services Group
has sold
to
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 and collaboration across the firm, and our commitment to learning what makes them unique. For more information, visit our website.
OUR FIRM
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ MARCH 2015
6
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PUBLIC COMPARABLES
7
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ MARCH 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 Mar-14 Sep-14 Current 2014 2015E
Transportation & Logistics
TEV / LTM EBITDA as of
Logistics Providers
Agility Public Warehousing Company KSC $872 $0.83 3.7% 32.0% $0.92 90.2% 7.6x 10.4x 9.6x NA NA
Air Transport Services Group, Inc. 896 8.97 5.8% 21.2% 9.72 92.3% 5.3x 5.2x 5.0x 5.0x 4.9x
Atlas Air Worldwide Holdings, Inc. 2,810 46.48 (2.3%) 45.9% 51.00 91.1% 7.0x 8.0x 8.2x 8.2x 8.2x
CH Robinson Worldwide Inc. 11,724 73.45 2.3% 43.6% 77.49 94.8% 11.4x 14.5x 14.7x 14.7x 13.1x
Deutsche Post AG 37,289 29.10 0.6% 15.4% 30.78 94.6% 8.7x 9.9x 10.2x 10.2x 8.1x
DSV A/S 42,849 218.10 4.9% 30.3% 221.90 98.3% 12.0x 11.8x 14.3x 14.3x 12.7x
Echo Global Logistics, Inc. 645 28.45 7.9% 66.4% 30.18 94.3% 12.7x NM 17.9x 17.9x 11.8x
Expeditors International of Washington Inc. 8,248 48.04 6.0% 23.2% 49.02 98.0% 11.0x 11.9x 12.8x 12.8x 11.6x
FedEx Corporation 51,573 173.32 (1.7%) 26.7% 183.51 94.4% 7.1x 7.3x 8.0x 8.5x 7.4x
Forward Air Corp. 1,599 53.77 (0.0%) 21.2% 54.63 98.4% 11.6x 12.4x 12.6x 12.6x 10.0x
Hub Group Inc. 1,474 39.97 1.3% (2.0%) 51.47 77.7% 10.8x 11.0x 10.9x 10.9x 12.0x
JB Hunt Transport Services Inc. 11,036 86.76 6.1% 21.4% 87.90 98.7% 10.9x 11.3x 11.9x 11.9x 10.6x
Kuehne + Nagel International AG 16,098 144.10 8.4% 21.0% 144.60 99.7% 13.7x 14.7x 16.4x 16.4x 15.6x
Landstar System Inc. 2,983 67.83 (1.2%) 12.0% 81.80 82.9% 13.3x 14.8x 11.9x 11.9x 10.7x
Panalpina World Transport Holding Ltd. 3,060 144.20 17.2% 4.5% 149.20 96.6% NM 18.7x NM NM 13.8x
Roadrunner Transportation Systems, Inc. 1,402 25.82 1.7% 4.5% 29.02 89.0% 11.3x 12.3x 11.6x 11.6x 9.5x
Ryder System, Inc. 9,396 93.12 (0.4%) 20.6% 95.82 97.2% 5.6x 6.2x 5.8x 5.8x 5.3x
TransForce Inc. 4,766 30.50 1.4% 32.0% 31.60 96.5% 8.7x 10.7x 11.4x 11.4x 8.6x
United Parcel Service, Inc. 96,491 98.53 (2.8%) 2.3% 114.40 86.1% 10.7x 12.3x 14.1x 14.1x 10.0x
Universal Truckload Services Inc. 1,020 26.82 8.3% (6.1%) 29.49 91.0% 10.3x 9.0x 9.0x 9.0x 7.7x
UTi Worldwide Inc. 1,947 13.38 12.9% 15.8% 14.75 90.7% 16.5x 19.8x NM NM NM
World Fuel Services Corp. 4,297 54.10 5.2% 22.1% 55.56 97.4% 11.2x 11.4x 13.5x 13.5x 11.7x
XPO Logistics, Inc. 3,681 46.48 11.9% 48.9% 46.85 99.2% NM NM NM NM 16.8x
Median 3.7% 21.2% 94.6% 10.9x 11.4x 11.8x 11.9x 10.6x
Trucking
ArcBest Corporation $1,002 $40.85 4.2% 14.9% $47.52 86.0% 8.7x 6.6x 6.5x 6.5x 5.0x
Celadon Group Inc. 1,043 26.35 4.4% 9.6% 26.86 98.1% 8.8x 7.1x 9.8x 10.0x 8.0x
Con-way Inc. 2,868 44.51 0.8% 12.8% 53.54 83.1% 5.9x 7.2x 5.8x 5.8x 5.0x
Covenant Transportation Group, Inc. 844 36.55 22.8% 226.6% 36.70 99.6% 5.4x 6.2x 9.5x 9.5x 7.3x
Heartland Express, Inc. 2,156 24.47 (3.5%) 11.4% 27.96 87.5% 13.3x 12.6x 10.4x 10.4x 8.1x
Knight Transportation Inc. 2,806 32.77 4.4% 44.9% 34.69 94.5% 9.7x 10.6x 11.7x 11.7x 9.1x
Marten Transport Ltd. 791 22.92 3.0% 12.9% 25.71 89.1% 6.0x 6.1x 6.9x 6.9x 5.7x
Old Dominion Freight Line Inc. 6,839 78.19 3.9% 38.1% 81.48 96.0% 11.0x 12.3x 11.7x 11.7x 10.0x
P.A.M. Transportation Services, Inc. 458 54.29 (3.3%) 144.2% 63.70 85.2% 5.5x 6.9x 8.4x 8.4x NA
Quality Distribution Inc. 651 10.73 3.4% (18.6%) 15.83 67.8% 10.3x 11.5x 9.3x 9.3x 7.5x
Saia, Inc. 1,188 44.97 0.8% 14.6% 57.60 78.1% 8.2x 10.1x 8.2x 8.2x 6.8x
Swift Transportation Company 5,422 28.33 7.2% 10.6% 29.44 96.2% 9.0x 8.2x 9.3x 9.3x 7.9x
Universal Truckload Services Inc. 1,020 26.82 8.3% (6.1%) 29.49 91.0% 10.3x 9.0x 9.0x 9.0x 7.7x
USA Truck Inc. 418 28.56 (5.4%) 93.2% 32.14 88.9% 8.6x 7.1x 7.0x 7.0x 6.7x
Werner Enterprises Inc. 2,355 31.94 4.5% 25.4% 32.65 97.8% 6.3x 6.3x 7.4x 7.4x 6.2x
YRC Worldwide Inc. 1,500 17.72 (8.8%) (22.2%) 29.21 60.7% 9.3x 10.4x 7.6x 7.6x 4.5x
Median 3.6% 13.8% 89.0% 8.8x 7.7x 8.7x 8.7x 7.3x
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PUBLIC COMPARABLES CONT.
8
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ MARCH 2015
Stock Performance
Stock Price Change from 52-Week TEV / EBITDA EBITDA
($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Mar-14 Sep-14 Current 2014 2015E
Transportation & Logistics
TEV / LTM EBITDA as of
Rail and Rail Services
American Railcar Industries, Inc. $1,361 $48.70 (11.0%) (32.0%) $82.82 58.8% 9.1x 9.0x 6.7x 6.7x 5.8x
Canadian National Railway Company 78,213 86.37 (1.9%) 39.4% 88.89 97.2% 12.2x 14.3x 13.8x 13.8x 12.4x
Canadian Pacific Railway Limited 44,453 236.18 1.2% 38.9% 247.56 95.4% 14.7x 16.7x 15.8x 15.8x 12.9x
CSX Corp. 42,613 34.13 (6.7%) 20.3% 37.99 89.8% 8.1x 8.8x 8.9x 8.9x 8.3x
FreightCar America Inc. 207 30.46 14.0% 28.0% 37.48 81.3% NM NM 12.1x 12.1x 4.0x
Genesee & Wyoming Inc. 7,136 103.28 8.6% 6.8% 106.02 97.4% 12.6x 13.2x 12.4x 12.4x 10.2x
The Greenbrier Companies, Inc. 1,899 54.84 (5.1%) 18.6% 78.32 70.0% 10.1x 9.7x 7.4x 8.0x 4.7x
Kansas City Southern 14,917 114.43 (3.0%) 18.5% 126.49 90.5% 13.2x 14.4x 13.5x 13.5x 11.9x
Norfolk Southern Corporation 41,733 108.65 (1.3%) 14.9% 117.64 92.4% 8.9x 9.4x 9.2x 9.2x 8.7x
Trinity Industries Inc. 8,286 33.94 15.2% (5.7%) 50.77 66.8% 8.7x 8.2x 5.9x 5.9x 5.3x
Union Pacific Corporation 110,819 114.52 (7.5%) 23.7% 124.52 92.0% 10.0x 10.7x 10.4x 10.4x 9.4x
Westinghouse Air Brake Technologies Corporation 9,104 93.49 4.7% 17.6% 97.16 96.2% 16.1x 15.5x 15.5x 15.5x 13.9x
Median (1.6%) 18.6% 91.2% 10.1x 10.7x 11.3x 11.3x 9.1x
Marine
Aegean Marine Petroleum Network Inc. $1,426 $13.49 (8.0%) 37.1% $15.11 89.3% 15.8x 14.8x 14.7x 13.4x 10.5x
Costamare Inc. 3,043 18.57 (3.8%) (10.0%) 24.94 74.5% 13.2x 11.7x 9.6x 9.6x 9.2x
Diana Shipping Inc. 717 6.48 (8.3%) (47.5%) 12.77 50.7% NM 19.7x 16.4x 16.4x 15.4x
Kirby Corporation 4,804 73.61 (5.7%) (27.6%) 124.12 59.3% 11.3x 12.4x 7.4x 7.4x 7.8x
Matson, Inc. 1,865 41.15 9.4% 65.9% 41.70 98.7% 7.2x 8.4x 9.2x 9.2x 8.3x
Neptune Orient Lines Limited 8,085 0.95 (5.5%) (5.0%) 1.07 88.7% NM NM NM NM 12.1x
Nordic American Tankers Limited 1,078 10.41 3.1% 4.0% 12.08 86.2% NM NM 14.2x 14.2x 7.1x
Rand Logistics, Inc. 241 3.13 (12.8%) (57.1%) 7.44 42.1% 10.3x 11.0x 7.5x 8.2x 6.8x
SEACOR Holdings Inc. 1,773 69.66 (3.8%) (14.9%) 88.29 78.9% 10.3x 8.5x 7.2x 7.2x 7.4x
Wilh. Wilhelmsen ASA 16,817 44.10 0.7% (22.6%) 60.75 72.6% NM NM NM NM NM
Median (4.6%) (12.4%) 76.7% 10.8x 11.7x 9.4x 9.4x 8.3x
Transportation Equipment
Accuride Corp. $521 $4.76 (6.5%) (2.5%) $5.91 80.5% 12.3x 8.9x 7.0x 7.0x 5.7x
Dana Holding Corporation 3,892 20.71 (10.0%) (4.8%) 24.82 83.4% 6.0x 5.7x 5.5x 5.5x 5.2x
Gentherm Incorporated 1,675 46.33 13.5% 45.6% 52.29 88.6% 13.8x 16.4x 12.5x 12.5x 11.2x
Spartan Motors Inc. 145 4.94 (9.5%) (7.8%) 5.71 86.5% NM 18.5x 15.3x 15.3x 9.1x
Wabash National Corp. 1,199 14.74 8.1% 8.8% 14.96 98.5% 8.4x 8.2x 7.5x 7.5x 6.4x
Median (6.5%) (2.5%) 86.5% 10.3x 8.9x 7.5x 7.5x 6.4x
PAGE |
PUBLIC COMPARABLES CONT.
9
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ MARCH 2015
Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth
($ 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 $1,331 $1,418 $1,376 NA NA NA NA NA $55 $72 $84 NA NA NA NA NA
Air Transport Services Group, Inc. 730 607 580 590 591 619 (6.9%) 2.4% 181 163 158 179 183 193 (0.3%) 3.7%
Atlas Air Worldwide Holdings, Inc. 1,384 1,632 1,643 1,785 1,765 1,844 8.8% 1.6% 203 296 307 344 346 346 19.1% 0.3%
CH Robinson Worldwide Inc. 10,336 11,359 12,752 13,470 14,883 16,005 9.2% 9.0% 720 751 731 797 896 974 3.4% 10.6%
Deutsche Post AG 52,829 55,512 54,912 56,630 58,700 61,093 2.3% 3.9% 2,605 3,132 3,709 3,655 4,572 5,042 12.0% 17.5%
DSV A/S 43,710 44,912 45,710 48,582 51,386 53,706 3.6% 5.1% 2,848 2,937 2,940 2,988 3,379 3,578 1.6% 9.4%
Echo Global Logistics, Inc. 603 758 884 1,173 1,349 1,604 24.9% 16.9% 23 27 27 36 54 65 16.5% 34.6%
Expeditors International of Washington Inc. 6,162 5,992 6,080 6,565 7,027 7,506 2.1% 6.9% 655 571 600 644 707 765 (0.6%) 9.0%
FedEx Corporation 39,304 42,680 44,287 45,567 47,721 50,544 5.1% 5.3% 4,506 5,367 5,597 6,033 6,869 7,896 10.2% 14.4%
Forward Air Corp. 509 584 652 781 988 1,076 15.4% 17.4% 97 104 107 127 159 184 9.4% 20.4%
Hub Group Inc. 2,752 3,124 3,374 3,571 3,802 4,050 9.1% 6.5% 112 134 138 135 124 141 6.4% 1.9%
JB Hunt Transport Services Inc. 3,678 4,058 4,527 5,083 6,786 7,523 11.4% 21.7% 658 759 830 926 1,039 1,162 12.1% 12.0%
Kuehne + Nagel International AG 16,218 17,120 17,178 17,501 21,324 22,249 2.6% 12.8% 970 896 953 980 1,028 1,092 0.3% 5.6%
Landstar System Inc. 2,628 2,771 2,665 3,185 3,474 3,735 6.6% 8.3% 204 223 201 250 279 301 6.9% 9.7%
Panalpina World Transport Holding Ltd. 6,500 6,617 6,758 6,707 6,737 7,192 1.1% 3.6% 206 84 143 149 224 272 (10.1%) 35.1%
Roadrunner Transportation Systems, Inc. 844 1,073 1,361 1,873 2,227 2,404 30.5% 13.3% 54 81 99 121 150 169 30.9% 18.4%
Ryder System, Inc. 6,051 6,257 6,419 6,639 6,847 7,254 3.1% 4.5% 1,290 1,396 1,459 1,628 1,764 1,902 8.1% 8.1%
TransForce Inc. 2,418 2,812 2,783 3,263 4,526 4,649 10.5% 19.4% 318 391 336 417 553 588 9.5% 18.7%
United Parcel Service, Inc. 53,105 54,127 55,438 58,232 60,195 63,373 3.1% 4.3% 7,830 3,201 8,868 6,864 9,588 10,300 (4.3%) 22.5%
Universal Truckload Services Inc. 991 1,037 1,033 1,192 1,295 1,351 6.3% 6.5% 84 96 105 113 133 142 10.5% 12.0%
UTi Worldwide Inc. 4,550 4,914 4,608 4,441 4,284 4,395 (0.8%) (0.5%) 183 213 146 92 96 180 NM NM
World Fuel Services Corp. 34,623 38,945 41,562 43,386 40,121 43,327 7.8% (0.1%) 291 287 301 319 377 412 3.0% 13.7%
XPO Logistics, Inc. 177 279 702 2,357 4,235 6,498 NM NM 3 (25) (20) 95 219 392 NM NM
Total $291,430 $308,590 $317,285 $332,571 $350,261 $371,997 7.4% 8.0% $24,097 $21,155 $27,819 $26,891 $32,740 $36,095 7.2% 13.9%
Trucking
ArcBest Corporation $1,908 $2,066 $2,300 $2,613 $2,804 $3,029 11.1% 7.7% $82 $70 $104 $155 $199 $229 23.5% 21.6%
Celadon Group Inc. 467 475 489 615 877 953 9.6% 24.4% 89 103 106 104 130 145 5.4% 18.1%
Con-way Inc. 5,290 5,580 5,473 5,806 6,183 6,548 3.2% 6.2% 386 428 427 493 575 631 8.5% 13.2%
Covenant Transportation Group, Inc. 512 527 539 579 759 825 4.2% 19.4% 63 71 65 89 115 128 11.8% 20.3%
Heartland Express, Inc. 529 546 582 871 853 905 18.1% 1.9% 132 138 149 208 268 291 16.3% 18.3%
Knight Transportation Inc. 697 752 792 926 1,282 1,412 9.9% 23.5% 169 184 192 239 306 343 12.3% 19.7%
Marten Transport Ltd. 604 638 659 673 689 732 3.7% 4.3% 97 101 110 115 137 150 5.9% 14.2%
Old Dominion Freight Line Inc. 1,904 2,135 2,338 2,788 3,132 3,458 13.6% 11.4% 326 396 460 587 684 789 21.6% 15.9%
P.A.M. Transportation Services, Inc. 284 298 313 317 NA NA 3.7% NA 29 41 50 55 NA NA 23.8% NA
Quality Distribution Inc. 628 719 805 854 1,028 1,073 10.8% 12.1% 70 69 72 70 85 94 0.0% 15.4%
Saia, Inc. 1,030 1,099 1,139 1,272 1,327 1,438 7.3% 6.3% 65 107 126 145 177 202 30.3% 18.1%
Swift Transportation Company 3,779 3,976 4,118 4,299 4,548 4,913 4.4% 6.9% 549 573 577 583 687 750 2.0% 13.4%
Universal Truckload Services Inc. 991 1,037 1,033 1,192 1,295 1,351 6.3% 6.5% 84 96 105 113 133 142 10.5% 12.0%
USA Truck Inc. 411 512 555 602 611 672 13.6% 5.6% 33 20 35 60 63 73 22.0% 10.2%
Werner Enterprises Inc. 2,003 2,036 2,029 2,139 2,198 2,338 2.2% 4.5% 311 318 296 318 379 408 0.7% 13.3%
YRC Worldwide Inc. 4,869 4,851 4,865 5,069 5,288 5,565 1.4% 4.8% 49 198 199 197 340 356 NM NM
Total $25,905 $27,247 $28,030 $30,615 $32,874 $35,211 7.7% 9.7% $2,536 $2,913 $3,073 $3,530 $4,277 $4,731 13.0% 16.0%
PAGE |
PUBLIC COMPARABLES CONT.
10
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ MARCH 2015
Revenue Avg. Revenue Growth EBITDA Avg. EBITDA Growth
($ 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 $844 $805 12.2% 4.8% $55 $145 $179 $204 $240 $238 NM 7.9%
Canadian National Railway Company 9,028 9,920 10,575 12,134 12,929 13,913 10.4% 7.1% 4,180 4,609 4,853 5,674 6,277 6,760 10.7% 9.2%
Canadian Pacific Railway Limited 5,052 5,550 5,982 6,464 7,133 7,792 8.6% 9.8% 1,401 1,772 2,327 2,819 3,401 3,756 26.2% 15.4%
CSX Corp. 11,795 11,763 12,026 12,669 12,878 13,570 2.4% 3.5% 4,446 4,523 4,577 4,764 5,118 5,514 2.3% 7.6%
FreightCar America Inc. 487 677 290 599 842 893 7.1% NM 12 41 (8) 17 55 66 12.2% NM
Genesee & Wyoming Inc. 829 875 1,569 1,639 2,217 2,506 25.5% 23.6% 252 277 534 574 708 793 31.6% 17.6%
The Greenbrier Companies, Inc. 1,174 1,736 1,685 2,121 2,605 2,815 21.8% 15.2% 97 152 145 237 400 448 34.5% 37.3%
Kansas City Southern 2,098 2,239 2,369 2,577 2,725 2,968 7.1% 7.3% 772 872 962 1,106 1,251 1,411 12.7% 13.0%
Norfolk Southern Corporation 11,172 11,040 11,245 11,624 11,649 12,371 1.3% 3.2% 4,073 4,036 4,169 4,522 4,751 5,109 3.5% 6.3%
Trinity Industries Inc. 2,938 3,812 4,365 6,170 6,851 6,602 28.1% 3.4% 575 730 963 1,400 1,552 1,468 34.6% 2.4%
Union Pacific Corporation 18,508 19,686 20,684 22,560 24,922 26,696 6.8% 8.8% 7,341 8,505 9,223 10,657 11,773 12,883 13.2% 9.9%
Westinghouse Air Brake Technologies Corporation 1,968 2,391 2,566 3,044 3,350 3,616 15.7% 9.0% 334 436 485 588 662 731 20.8% 11.5%
Total $65,569 $70,401 $74,108 $82,334 $88,945 $94,545 12.2% 8.7% $23,537 $26,098 $28,408 $32,562 $36,189 $39,176 18.4% 12.5%
Marine
Aegean Marine Petroleum Network Inc. $6,965 $7,259 $6,335 $6,977 $7,121 $7,753 0.1% 5.4% $75 $85 $75 $111 $138 $155 13.8% 18.1%
Costamare Inc. 382 386 414 484 499 511 8.2% 2.7% 236 238 258 318 328 352 10.4% 5.2%
Diana Shipping Inc. 256 221 164 176 170 200 (11.8%) 6.7% 166 121 53 44 45 56 (35.8%) 13.5%
Kirby Corporation 1,850 2,113 2,242 2,566 2,420 2,522 11.5% (0.9%) 445 509 582 647 618 653 13.3% 0.5%
Matson, Inc. 1,463 1,560 1,637 1,714 1,801 2,059 5.4% 9.6% 142 175 172 203 226 260 12.8% 13.1%
Neptune Orient Lines Limited 9,211 9,512 8,831 8,617 8,333 9,023 (2.2%) 2.3% (90) 96 131 280 619 609 NM NM
Nordic American Tankers Limited 95 131 244 158 234 215 18.6% 16.5% 10 7 (22) 76 151 130 NM 31.0%
Rand Logistics, Inc. 98 109 119 129 149 157 9.9% 10.1% 16 28 25 29 35 39 23.3% 15.8%
SEACOR Holdings Inc. 1,032 1,308 1,247 1,319 1,287 1,319 8.5% (0.0%) 155 164 197 245 239 262 16.4% 3.4%
Wilh. Wilhelmsen ASA 309 395 325 285 2,546 2,562 NM NM 147 227 154 139 416 454 NM NM
Total $21,661 $22,993 $21,559 $22,426 $24,562 $26,318 5.4% 5.8% $1,301 $1,648 $1,626 $2,092 $2,814 $2,970 7.7% 12.6%
Transportation Equipment
Accuride Corp. $805 $795 $643 $705 $744 $744 (4.3%) 2.7% $74 $65 $43 $75 $90 $94 0.2% 12.1%
Dana Holding Corporation 7,544 7,224 6,769 6,617 6,478 6,853 (4.3%) 1.8% 720 753 698 705 745 815 (0.7%) 7.5%
Gentherm Incorporated 370 555 662 811 913 1,032 30.0% 12.8% 46 67 84 135 150 175 42.6% 14.0%
Spartan Motors Inc. 426 471 470 507 530 561 6.0% 5.2% 14 16 6 9 16 29 (12.6%) NM
Wabash National Corp. 1,187 1,462 1,636 1,863 2,003 1,998 16.2% 3.6% 33 108 142 161 189 198 NM 11.0%
Total $10,331 $10,506 $10,179 $10,504 $10,669 $11,188 8.7% 5.2% $888 $1,008 $973 $1,084 $1,191 $1,310 7.4% 11.1%
Note: 2014 revenue and EBITDA estimates for Aegean Marine Petroleum Network Inc. and Nordic American Tankers Limited.
PAGE |
TRANSPORTATION & LOGISTICS
SOURCES
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ MARCH 2015
1. Capital IQ.
2. MergerMarket.
DISCLOSURES
11
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