wwwmercercapitalcom
Second Quarter 2018
VALUE FOCUS
Transportation amp LogisticsThird Quarter 2019 | Article Tariff Time
In This Issue
Tariff Time 1
Industry Macro Trends 3
Trucking 7
Rail amp Intermodal 10
MampA Activity 12
Public Company Performance 15
copy 2019 Mercer Capital wwwmercercapitalcom 1
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Will they Or wonrsquot they The imposition of tariffs and the broadness of their application has been a hot topic Uncertainty
over when they would come into effect which countries would be subject to them and which products or goods would be
exempt has contributed to market swings As the health of the transportation and logistics industry is closely tied to the
overall health of the economy the impact of tariffs could be large
FEATURE ARTICLE
Tariff Time
US Tariffs Imposed on Imports from China
China Tariffs Imposed on Imports from US
copy 2019 Mercer Capital wwwmercercapitalcom 2
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Paul Bingham Director of Transportation Consulting at IHS Markit noted that the threat of impending tariffs could have
been partially responsible for the flurry of shipping seen in 2018 especially when compared to slow first quarter of 2019
As companies accelerated freight shipments to avoid tariffs rates grew and capacity filled After the implementation of
tariffs rates fell in trucking rail and intermodal Grain and soybean carloads declined The USMCA (the successor to
NAFTA) could encourage more investment and production in Mexico as opposed to China which may be a boon to truck-
ing and rail shippers
Tariffs would also directly impact marine transportation A reduction in goods shipped means fewer container ships enter-
ing ports This in turn impacts the trucking industry which distributes imported goods from port cities across the country
DAT Solutions estimate that 7 of container volume from China could be impacted by tariffs The timing of tariffs also
impacts the transportation industry as shippers may rush to get products shipped before the imposition of additional tariffs
or delay shipping if they think the tariffs may be reduced
Between decreased freight demand which has contributed to lower spot rates many trucking firms have failed during
2019 Donald Broughton of Broughton Capital estimates that over 600 freight companies went out of business before
September Although spot rates have fallen most companies have not reduced driver pay resulting in cash flow issues
On the plus side for the transportation industry 53-foot containers (but not the cargo within) officially excluded from tariff
lists As there are no longer any American-based manufacturers of 53-foot containers the American Trucking Association
estimates that the logistics industry would have had nearly $750 million in additional expenses over the next decade had
a tariff been applied Additionally President Trump has indicated that some key consumer products including computers
and toys may not be subject to tariffs until mid-December potentially preventing downward pressure on holiday sales
FEATURE ARTICLE
Tariff Time(continued)
copy 2019 Mercer Capital wwwmercercapitalcom 3
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Industry Macro TrendsIndustrial Production IndexDemand for services in the logistics
industry is tied to the level of domestic
industrial production The Industrial
Production Index is an economic
measure of all real output from
manufacturing mining electric and gas
utilities The index value in September
2019 rose to 1095 up 019 from
1093 in June 2019 but down 014
on a year-over-year basis September
2019 also reversed two quarters of
declines Utilities and nonindustrial
supplies posted the largest gains from
June through September
Industrial Production Index (seasonally adjusted)
copy 2019 Mercer Capital wwwmercercapitalcom 4
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Industry Macro TrendsTransportation Services IndexThe Transportation Services Index
which measures freight traffic in the
United States increased in August
2019 The index rose to 1406 up 015
from 1381 in May 2019 and up 392
from 1353 in August 2018 The use of
freight transportation has generally kept
pace with industrial output over the last
20 years
Cass Freight IndexThe Cass Freight Index of shipments and
expenditures is considered one of the
best indicators of overall US freight activ-
ity Although shipments were at record
highs in early 2018 the first nine months
of 2019 have recorded consecutive
year-over-year declines September 2019
marked the second consecutive month
of monthly gains though it remains to be
seen if this trend will continue
Transportation Services Index (freight seasonally adjusted)
Cass Freight Index
copy 2019 Mercer Capital wwwmercercapitalcom 5
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
IndustryMacro TrendsShipmentsShipments in the third quarter of 2019 increased relative to the second quarter but continued to lag behind the level recorded at this point last year After an exceptionally strong year in 2018 the index began declining on a year-over-year basis in December 2018 which has continued through the second quarter The Cass Report notes that decreases in the shipments index beginning in the second quarter of 2019 signal an economic contraction Increases and declines in the level of freight shipments are frequent precursors to economic activity signaling economic expansion and contraction respectively On a year-over-year basis the Cass Freight
Shipment Index declined 34
Shipments
copy 2019 Mercer Capital wwwmercercapitalcom 6
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Industry Macro Trends
ExpendituresThe Expenditures Index hit 2854 in
September 2019 an increase over
August 2019 but 22 lower than
its level in June 2019 The rate of
expenditure growth has slowed in recent
months and has been negative on a
year-over-year basis since July 2019
The decreasing cost of diesel fuel has
contributed to the Expenditures index
decline however The Cass Report
notes that spot pricing has fallen
significantly over the past fifteen months
and capacity has continued to increase
Expenditures
copy 2019 Mercer Capital wwwmercercapitalcom 7
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Trucking
Truck Tonnage (seasonally adjusted)
Truck TonnageThe Truck Tonnage Index reached a high level in July 2019 at 1193 compared to a low of 748 in April 2009 during the Great
Recession The July increase is the seventh consecutive month of increase and is 11 higher than June 2019 and 51
higher than July 2018 The American Trucking Association estimates that freight tonnage will grow 26 from 2019 to 2030
and industry revenues are expected to increase by over 50
copy 2019 Mercer Capital wwwmercercapitalcom 8
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
TruckingSpot vs Contract RatesThe Spot vs Contract Rates chart
depicts monthly national average line
haul rates and fuel surcharges from
DAT Shippers enter contracts that lock
in a static contract rate for a period of
time Spot rates on the other hand are
one-time shipping quotes for a specific
transaction or series of transactions
Excess capacity has contributed to
spot rates below contract rates in
recent months and a larger than normal
divergence between the two rates
Reefer flatbed and dry van spot rates
all declined relative to June 2019 Reefer
spot rates decreased 10cent to $216 in
September 2019 from $226 in June
2019 Dry van spot rates fell 5cent to $184
from $189 Flatbed rates decreased 9cent
to $215 from $224
Spot vs Contract Rates
copy 2019 Mercer Capital wwwmercercapitalcom 9
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
TruckingLoad-to-Truck RatioThe load-to-truck ratio is calculated
by dividing the total number of loads for
shipment by the total number of trucks
available As a result the load-to-truck
ratio can signal a shortage or excess
of capacity which in turn influences
changes in freight An increase in the
ratio (ie a higher number of loads
relative to the level of available trucks)
is typically associated with shipping
rate increases While economic factors
typically push supply and demand
compression or expansion that occurs
faster in the shipping industry can
accelerate movements faster than the
overall economy
The load-to-truck ratio declined sharply
in the third quarter 2019 for all three
types of trucks tracked by DAT The van
ratio fell 24 the reefer ratio fell 13
and the flatbed ratio fell 31
Dry Van Load-to-Truck
Reefer Load-to-Truck
Flatbed Load-to-Truck
Source DAT
copy 2019 Mercer Capital wwwmercercapitalcom 10
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Rail amp Intermodal
Rail Freight Intermodal Traffic
Rail Freight Intermodal TrafficIntermodal shipments increased in July 2019 relative to June 2019 with intermodal freight volumes up 15 from June
However on an annual basis rail carloads declined 51 from August 2018 American Association of Railroads Senior Vice
President of Policy and Economics John Gray indicated that the year-over-year decline was due largely to reduced traffic in
the three largest rail segments ndash coal grain and intermodal Low natural gas prices cooled demand for coal and ongoing
trade concerns with China depressed the grain and international markets (50 of rail intermodal involves international
shipments)
copy 2019 Mercer Capital wwwmercercapitalcom 11
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Rail amp IntermodalCass Intermodal IndexThe Cass Intermodal Index measures
changes in per-mile US domestic
intermodal costs The index in Sep-
tember 2019 was 1423 relatively un-
changed from 1420 in June 2019 and
a 01 increase on a year-to-year ba-
sis Cass indicates that declining fuel
costs once again impacted the index
value
Cass Intermodal Index Historical Trend
Cass Intermodal Index Annual Comparison
copy 2019 Mercer Capital wwwmercercapitalcom 12
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
MampA ActivityFeatured Transactions
Genesee amp Wyoming Inc (NYSEGWR) acquired by
Brookfield Asset Management
EVO Transportation amp Energy Services Inc
acquired multiple transportation companies
Brookfield Asset Management acquired GWR for
$95 billion on August 26 at a multiple of 41x sales
and 141x EBITDA GWR is an owner and operator
of freight railroads in the US Canada Britain and
Europe GWR had grown rapidly in part through
acquisition of short-line railroads and faced increased
maintenance costs
EVO Transportation closed on at least three acquisi-
tions during the third quarter EVO Transportation ac-
quired Courtlandt and Brown Enterprises LLCFinkle
Transport Inc for $120 million and Ritter Transporta-
tion for $137 million EVO also acquired an LLC that
owns vehicles for leasing
Senior management team purchases
Premium Transportation Logistics
Heartland Express Inc (HTLD) acquired
Millis Transfer Inc
The senior management team of Premium
Transportation Logistics acquired PTL from its parent
company PTL is a expedited ground shipping
company The deal closed in July 2019
Heartland Express acquired Millis Transfer for a total
purchase price of $150 million at a multiple of 10x
revenue Millis is a regional dry van truckload company
based in Iowa Millis was previously family-owned
and operated and Heartland intends to retain the
management team
copy 2019 Mercer Capital wwwmercercapitalcom 13
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Select Transactions
Date Announced
Deal Status
Total Deal Value
Deal Value to
Target Buyer Sales EBITDA
TruckingBWP Transport Inc AampR Logistics Inc 7119 Closed - - -
Carlisle Carrier Corporation Cowan Systems LLC 71119 Closed - - -
Logicorp Enterprises LLC Outwest Express LLC 72219 Closed - - -
Courtlandt and Brown Enterprises LLCFinkle Transport IncEVO Transportation amp Energy Services Inc (OTCP-KEVOA)
72519 Closed $120 - -
Piston Tank Corporation TFI International Inc (TSXTFII) 72919 Closed - - -
Wayne T Fellows IncFellows Truck Brokers Inc Kottke Trucking Inc 73119 Closed - - -
Millis Transfer Inc Heartland Express Inc (NasdaqGSHTLD) 82619 Closed $1500 10x -
DR Graham Trucking LLC Energy amp Environmental Services Inc 82719 Closed - - -
Schindewolf Express Inc Quest Liner Inc 82019 Closed - - -
RailGenesee amp Wyoming Inc (NYSEGWR) DJP XX LLC (Brookfield Asset Management) 7119 Announced $94789 41x 141x
Winchester amp Western Railroad Company Inc OmniTRAX Inc 72619 Closed $1050 - -
Patriot Rail Company LLC First State Investments (Us) Llc MidRail LLC 82619 Announced - - -
The Cleveland Commercial Railroad Company LLC OmniTRAX Inc 82719 Announced - - -
Massena Rail Line of CSX Corporation Canadian National Railway Company (TSXCNR) 82919 Announced - - -
Arrow Material Services LLC Precision Terminal Logistics LLC 9619 Closed - - -
Source SampP Global Market Intelligencein USD millions
copy 2019 Mercer Capital wwwmercercapitalcom 14
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Date Announced
Deal Status
Total Deal Value
Deal Value to
Target Buyer Sales EBITDA
MarineNone during third quarter 2019
Air Freight amp LogisticsPremium Transportation Logistics LLC Senior Management 7119 Closed - - -
Argus Carriers LtdInter-Urban Delivery Service Ltd Mullen Group Ltd (TSXMTL) 7219 Closed - - -
Worldwide Perishables Canada Co Kuehne + Nagel International AG (SWXKNIN) 72419 Closed - - -
Unitrans International Corporation AIT Worldwide Logistics Inc 8519 Closed - - -
GTO Global Logistics Inc Air Menzies International Limited 81219 Closed $23 - -
Ritter Transportation Systems IncRitter Transport IncEVO Transportation amp Energy Services Inc (OTCP-KEVOA)
92019 Closed $137 - -
Source SampP Global Market Intelligencein USD millions
Select Transactions (continued)
copy 2019 Mercer Capital wwwmercercapitalcom 15
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Public Company Performance
Monthly Median TEVEBITDA Multiples (as of Sept 30 2019)
copy 2019 Mercer Capital wwwmercercapitalcom 16
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
TruckloadJB Hunt Transport Services Inc JBHT $11065 21 $13303 11 830 $9033 13 15x 115x 257x 101x 206x
TFI International Inc TFII $3064 -11 $4222 40 660 $3924 14 11x 77x 107x 66x 103x
Ryder System Inc R $5177 11 $10550 74 337 $8905 27 12x 44x 213x 48x 491x
Knight-Swift Transportation Holdings Inc KNX $3630 4 $7269 15 399 $5042 19 14x 75x 157x 77x 162x
Landstar System Inc LSTR $11258 1 $4327 -3 1429 $4277 8 10x 120x 181x 124x 191x
Werner Enterprises Inc WERN $3530 19 $2794 13 674 $2488 19 11x 59x 141x 60x 151x
Schneider National Inc SNDR $2172 14 $3927 2 584 $4912 13 08x 61x 219x 65x 169x
Heartland Express Inc HTLD $2151 19 $1558 -13 519 $577 29 27x 92x 213x 77x 216x
Daseke Inc DSKE $250 -31 $968 77 8 $1781 9 05x 61x nm 59x nm
Marten Transport Ltd MRTN $2078 4 $1054 -8 562 $830 19 13x 65x 186x 61x 188x
Universal Logistics Holdings Inc ULH $2328 14 $1071 41 772 $1522 11 07x 62x 168x 65x 97x
Covenant Transportation Group Inc CVTI $1644 12 $598 49 276 $934 13 06x 51x 127x 61x 216x
PAM Transportation Services Inc PTSI $5911 -5 $539 37 581 $529 19 10x 55x 123x 53x 117x
USA Truck Inc USAK $803 -21 $259 74 283 $540 9 05x 54x 123x 58x 824x
Titanium Transportation Group Inc TTR $098 -3 $98 63 240 $126 9 08x 86x 173x 70x 290x
Patriot Transportation Holding Inc PATI $1790 5 $39 -52 24 $111 8 04x 44x 273x nm nm
Median 5 26 130 10x 61x 173x 65x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 17
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Less-Than-TruckloadOld Dominion Freight Line Inc ODFL $16997 14 $13483 -1 1448 $4127 27 33x 122x 216x 124x 220x
Saia Inc SAIA $9370 45 $2657 9 791 $1750 16 15x 97x 204x 96x 213x
ArcBest Corporation ARCB $3045 8 $833 7 356 $3045 7 03x 42x 128x 41x 119x
YRC Worldwide Inc YRCW $302 -25 $1202 91 138 $4959 4 02x 62x nm 59x nm
Roadrunner Transportation Systems Inc RRTS $1036 8 $778 50 -708 $1999 -2 04x -248x nm -344x nm
Median 8 9 7 04x 62x 204x 59x 213x
Air FreightAtlas Air Worldwide Holdings Inc AAWW $2523 -43 $3520 81 228 $2757 18 13x 70x 20x 74x 56x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Cargojet Inc CJT $7110 11 $1459 35 409 $362 25 40x 164x 565x 125x 674x
Median -3 44 21 17x 96x 163x 97x 180x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 18
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
MarineKirby Corporation KEX $8216 4 $6663 26 307 $2904 18 23x 129x 427x 132x 283x
Triton International Limited TRTN $3384 3 $9951 73 453 $1420 93 70x 75x 74x 80x 74x
Matson Inc MATX $3751 -3 $2674 40 269 $2227 9 12x 128x 183x 99x 194x
Seaspan Corporation SSW $1063 8 $6540 65 380 $1138 63 57x 91x 53x 92x 135x
Textainer Group Holdings Limited TGH $991 -2 $3963 86 286 $706 67 56x 84x 142x 85x 101x
Costamare Inc CMRE $607 18 $2328 69 410 $460 64 51x 79x 86x 71x 70x
Eagle Bulk Shipping Inc EGLE $438 -17 $653 49 139 $308 17 21x 124x nm 113x nm
Navios Maritime Partners LP NMM $1773 31 $650 69 230 $216 47 30x 64x 1495x 57x 67x
Pangaea Logistics Solutions Ltd PANL $321 -4 $350 59 424 $384 13 09x 70x 92x 69x 68x
Global Ship Lease Inc GSL $765 4 $918 86 638 $244 58 38x 65x nm 58x 48x
Sino-Global Shipping America Ltd SINO $076 7 $4 -197 -1710 $47 -8 01x -11x nm nm nm
Median 4 65 30x 79x 117x 83x 74x
RailroadsUnion Pacific Corporation UNP $16198 -4 $140317 19 891 $22253 49 63x 129x 188x 129x 190x
Canadian National Railway Company CNR $8986 -3 $74929 14 915 $11437 51 66x 129x 190x 135x 201x
CSX Corporation CSX $6927 -10 $69900 21 833 $12195 52 57x 109x 162x 109x 165x
Norfolk Southern Corporation NSC $17966 -10 $59393 20 706 $11502 46 52x 112x 172x 115x 177x
Canadian Pacific Railway Limited CP $22240 -6 $37519 18 1002 $5838 54 64x 119x 176x 128x 181x
Kansas City Southern KSU $13301 9 $16407 19 670 $2831 49 58x 119x 232x 117x 191x
Genesee amp Wyoming Inc GWR $11051 11 $9310 32 308 $2289 29 41x 142x 296x 139x 267x
Median -4 19 58x 119x 188x 128x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 19
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Logistics amp IntermodalUnited Parcel Service Inc UPS $11982 16 $124013 17 704 $73374 11 17x 157x 206x 118x 159x
FedEx Corporation FDX $14557 -11 $68386 44 155 $69200 13 10x 78x 104x 81x 95x
Expeditors International of Washington Inc EXPD $7429 -2 $11979 -6 1426 $8366 10 14x 140x 201x 141x 210x
XPO Logistics Inc XPO $7157 24 $14173 53 407 $16901 9 08x 89x 164x 85x 180x
CH Robinson Worldwide Inc CHRW $8478 1 $12647 9 1244 $15654 6 08x 127x 173x 134x 191x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Hub Group Inc HUBG $4650 11 $1773 11 542 $3786 7 05x 65x 124x 66x 137x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Echo Global Logistics Inc ECHO $2265 9 $794 22 308 $2236 3 04x 118x 304x 97x 156x
Radiant Logistics Inc RLGT $517 -16 $288 11 502 $920 4 03x 76x 154x 71x 128x
Median 4 14 09x 103x 168x 91x 158x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
Mercer CapitalTransportation amp Logistics Industry Services
Contact Us
Copyright copy 2019 Mercer Capital Management Inc All rights reserved It is illegal under Federal law to reproduce this publication or any portion of its contents without the publisherrsquos permission Media quotations with source attribution are encouraged
Reporters requesting additional information or editorial comment should contact Barbara Walters Price at 9016852120 Mercer Capitalrsquos Industry Focus is published quarterly and does not constitute legal or financial consulting advice It is offered as an
information service to our clients and friends Those interested in specific guidance for legal or accounting matters should seek competent professional advice Inquiries to discuss specific valuation matters are welcomed To add your name to our mailing
list to receive this complimentary publication visit our web site at wwwmercercapitalcom
Mercer Capital provides valuation and transaction advisory services to the transportation amp logistics industry
Industry Segments
Mercer Capital serves the following industry
segments
bull Trucking
bull Air Freight
bull Marine
bull Railroads
bull Logistics amp Intermodal
Contact a Mercer Capital professional to discuss your needs in confidence
Timothy R Lee ASA
9013229740
leetmercercapitalcom
Nicholas J Heinz ASA
9016852120
heinznmercercapitalcom
Scott A Womack ASA MAFF
6153450234
womacksmercercapitalcom
Samantha L Albert ASA
9013229702
albertsmercercapitalcom
wwwmercercapitalcom
BUSINESS VALUATION amp FINANCIAL ADVISORY SERVICES
Services Provided
bull Valuation of transportation and logistics companies
bull Transaction advisory for acquisitions and
divestitures
bull Valuations for purchase accounting and impairment
testing
bull Fairness and solvency opinions
bull Litigation support for economic damages and
valuation and shareholder disputes
Mercer Capitalwwwmercercapitalcom
copy 2019 Mercer Capital wwwmercercapitalcom 1
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Will they Or wonrsquot they The imposition of tariffs and the broadness of their application has been a hot topic Uncertainty
over when they would come into effect which countries would be subject to them and which products or goods would be
exempt has contributed to market swings As the health of the transportation and logistics industry is closely tied to the
overall health of the economy the impact of tariffs could be large
FEATURE ARTICLE
Tariff Time
US Tariffs Imposed on Imports from China
China Tariffs Imposed on Imports from US
copy 2019 Mercer Capital wwwmercercapitalcom 2
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Paul Bingham Director of Transportation Consulting at IHS Markit noted that the threat of impending tariffs could have
been partially responsible for the flurry of shipping seen in 2018 especially when compared to slow first quarter of 2019
As companies accelerated freight shipments to avoid tariffs rates grew and capacity filled After the implementation of
tariffs rates fell in trucking rail and intermodal Grain and soybean carloads declined The USMCA (the successor to
NAFTA) could encourage more investment and production in Mexico as opposed to China which may be a boon to truck-
ing and rail shippers
Tariffs would also directly impact marine transportation A reduction in goods shipped means fewer container ships enter-
ing ports This in turn impacts the trucking industry which distributes imported goods from port cities across the country
DAT Solutions estimate that 7 of container volume from China could be impacted by tariffs The timing of tariffs also
impacts the transportation industry as shippers may rush to get products shipped before the imposition of additional tariffs
or delay shipping if they think the tariffs may be reduced
Between decreased freight demand which has contributed to lower spot rates many trucking firms have failed during
2019 Donald Broughton of Broughton Capital estimates that over 600 freight companies went out of business before
September Although spot rates have fallen most companies have not reduced driver pay resulting in cash flow issues
On the plus side for the transportation industry 53-foot containers (but not the cargo within) officially excluded from tariff
lists As there are no longer any American-based manufacturers of 53-foot containers the American Trucking Association
estimates that the logistics industry would have had nearly $750 million in additional expenses over the next decade had
a tariff been applied Additionally President Trump has indicated that some key consumer products including computers
and toys may not be subject to tariffs until mid-December potentially preventing downward pressure on holiday sales
FEATURE ARTICLE
Tariff Time(continued)
copy 2019 Mercer Capital wwwmercercapitalcom 3
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Industry Macro TrendsIndustrial Production IndexDemand for services in the logistics
industry is tied to the level of domestic
industrial production The Industrial
Production Index is an economic
measure of all real output from
manufacturing mining electric and gas
utilities The index value in September
2019 rose to 1095 up 019 from
1093 in June 2019 but down 014
on a year-over-year basis September
2019 also reversed two quarters of
declines Utilities and nonindustrial
supplies posted the largest gains from
June through September
Industrial Production Index (seasonally adjusted)
copy 2019 Mercer Capital wwwmercercapitalcom 4
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Industry Macro TrendsTransportation Services IndexThe Transportation Services Index
which measures freight traffic in the
United States increased in August
2019 The index rose to 1406 up 015
from 1381 in May 2019 and up 392
from 1353 in August 2018 The use of
freight transportation has generally kept
pace with industrial output over the last
20 years
Cass Freight IndexThe Cass Freight Index of shipments and
expenditures is considered one of the
best indicators of overall US freight activ-
ity Although shipments were at record
highs in early 2018 the first nine months
of 2019 have recorded consecutive
year-over-year declines September 2019
marked the second consecutive month
of monthly gains though it remains to be
seen if this trend will continue
Transportation Services Index (freight seasonally adjusted)
Cass Freight Index
copy 2019 Mercer Capital wwwmercercapitalcom 5
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
IndustryMacro TrendsShipmentsShipments in the third quarter of 2019 increased relative to the second quarter but continued to lag behind the level recorded at this point last year After an exceptionally strong year in 2018 the index began declining on a year-over-year basis in December 2018 which has continued through the second quarter The Cass Report notes that decreases in the shipments index beginning in the second quarter of 2019 signal an economic contraction Increases and declines in the level of freight shipments are frequent precursors to economic activity signaling economic expansion and contraction respectively On a year-over-year basis the Cass Freight
Shipment Index declined 34
Shipments
copy 2019 Mercer Capital wwwmercercapitalcom 6
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Industry Macro Trends
ExpendituresThe Expenditures Index hit 2854 in
September 2019 an increase over
August 2019 but 22 lower than
its level in June 2019 The rate of
expenditure growth has slowed in recent
months and has been negative on a
year-over-year basis since July 2019
The decreasing cost of diesel fuel has
contributed to the Expenditures index
decline however The Cass Report
notes that spot pricing has fallen
significantly over the past fifteen months
and capacity has continued to increase
Expenditures
copy 2019 Mercer Capital wwwmercercapitalcom 7
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Trucking
Truck Tonnage (seasonally adjusted)
Truck TonnageThe Truck Tonnage Index reached a high level in July 2019 at 1193 compared to a low of 748 in April 2009 during the Great
Recession The July increase is the seventh consecutive month of increase and is 11 higher than June 2019 and 51
higher than July 2018 The American Trucking Association estimates that freight tonnage will grow 26 from 2019 to 2030
and industry revenues are expected to increase by over 50
copy 2019 Mercer Capital wwwmercercapitalcom 8
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
TruckingSpot vs Contract RatesThe Spot vs Contract Rates chart
depicts monthly national average line
haul rates and fuel surcharges from
DAT Shippers enter contracts that lock
in a static contract rate for a period of
time Spot rates on the other hand are
one-time shipping quotes for a specific
transaction or series of transactions
Excess capacity has contributed to
spot rates below contract rates in
recent months and a larger than normal
divergence between the two rates
Reefer flatbed and dry van spot rates
all declined relative to June 2019 Reefer
spot rates decreased 10cent to $216 in
September 2019 from $226 in June
2019 Dry van spot rates fell 5cent to $184
from $189 Flatbed rates decreased 9cent
to $215 from $224
Spot vs Contract Rates
copy 2019 Mercer Capital wwwmercercapitalcom 9
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
TruckingLoad-to-Truck RatioThe load-to-truck ratio is calculated
by dividing the total number of loads for
shipment by the total number of trucks
available As a result the load-to-truck
ratio can signal a shortage or excess
of capacity which in turn influences
changes in freight An increase in the
ratio (ie a higher number of loads
relative to the level of available trucks)
is typically associated with shipping
rate increases While economic factors
typically push supply and demand
compression or expansion that occurs
faster in the shipping industry can
accelerate movements faster than the
overall economy
The load-to-truck ratio declined sharply
in the third quarter 2019 for all three
types of trucks tracked by DAT The van
ratio fell 24 the reefer ratio fell 13
and the flatbed ratio fell 31
Dry Van Load-to-Truck
Reefer Load-to-Truck
Flatbed Load-to-Truck
Source DAT
copy 2019 Mercer Capital wwwmercercapitalcom 10
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Rail amp Intermodal
Rail Freight Intermodal Traffic
Rail Freight Intermodal TrafficIntermodal shipments increased in July 2019 relative to June 2019 with intermodal freight volumes up 15 from June
However on an annual basis rail carloads declined 51 from August 2018 American Association of Railroads Senior Vice
President of Policy and Economics John Gray indicated that the year-over-year decline was due largely to reduced traffic in
the three largest rail segments ndash coal grain and intermodal Low natural gas prices cooled demand for coal and ongoing
trade concerns with China depressed the grain and international markets (50 of rail intermodal involves international
shipments)
copy 2019 Mercer Capital wwwmercercapitalcom 11
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Rail amp IntermodalCass Intermodal IndexThe Cass Intermodal Index measures
changes in per-mile US domestic
intermodal costs The index in Sep-
tember 2019 was 1423 relatively un-
changed from 1420 in June 2019 and
a 01 increase on a year-to-year ba-
sis Cass indicates that declining fuel
costs once again impacted the index
value
Cass Intermodal Index Historical Trend
Cass Intermodal Index Annual Comparison
copy 2019 Mercer Capital wwwmercercapitalcom 12
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
MampA ActivityFeatured Transactions
Genesee amp Wyoming Inc (NYSEGWR) acquired by
Brookfield Asset Management
EVO Transportation amp Energy Services Inc
acquired multiple transportation companies
Brookfield Asset Management acquired GWR for
$95 billion on August 26 at a multiple of 41x sales
and 141x EBITDA GWR is an owner and operator
of freight railroads in the US Canada Britain and
Europe GWR had grown rapidly in part through
acquisition of short-line railroads and faced increased
maintenance costs
EVO Transportation closed on at least three acquisi-
tions during the third quarter EVO Transportation ac-
quired Courtlandt and Brown Enterprises LLCFinkle
Transport Inc for $120 million and Ritter Transporta-
tion for $137 million EVO also acquired an LLC that
owns vehicles for leasing
Senior management team purchases
Premium Transportation Logistics
Heartland Express Inc (HTLD) acquired
Millis Transfer Inc
The senior management team of Premium
Transportation Logistics acquired PTL from its parent
company PTL is a expedited ground shipping
company The deal closed in July 2019
Heartland Express acquired Millis Transfer for a total
purchase price of $150 million at a multiple of 10x
revenue Millis is a regional dry van truckload company
based in Iowa Millis was previously family-owned
and operated and Heartland intends to retain the
management team
copy 2019 Mercer Capital wwwmercercapitalcom 13
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Select Transactions
Date Announced
Deal Status
Total Deal Value
Deal Value to
Target Buyer Sales EBITDA
TruckingBWP Transport Inc AampR Logistics Inc 7119 Closed - - -
Carlisle Carrier Corporation Cowan Systems LLC 71119 Closed - - -
Logicorp Enterprises LLC Outwest Express LLC 72219 Closed - - -
Courtlandt and Brown Enterprises LLCFinkle Transport IncEVO Transportation amp Energy Services Inc (OTCP-KEVOA)
72519 Closed $120 - -
Piston Tank Corporation TFI International Inc (TSXTFII) 72919 Closed - - -
Wayne T Fellows IncFellows Truck Brokers Inc Kottke Trucking Inc 73119 Closed - - -
Millis Transfer Inc Heartland Express Inc (NasdaqGSHTLD) 82619 Closed $1500 10x -
DR Graham Trucking LLC Energy amp Environmental Services Inc 82719 Closed - - -
Schindewolf Express Inc Quest Liner Inc 82019 Closed - - -
RailGenesee amp Wyoming Inc (NYSEGWR) DJP XX LLC (Brookfield Asset Management) 7119 Announced $94789 41x 141x
Winchester amp Western Railroad Company Inc OmniTRAX Inc 72619 Closed $1050 - -
Patriot Rail Company LLC First State Investments (Us) Llc MidRail LLC 82619 Announced - - -
The Cleveland Commercial Railroad Company LLC OmniTRAX Inc 82719 Announced - - -
Massena Rail Line of CSX Corporation Canadian National Railway Company (TSXCNR) 82919 Announced - - -
Arrow Material Services LLC Precision Terminal Logistics LLC 9619 Closed - - -
Source SampP Global Market Intelligencein USD millions
copy 2019 Mercer Capital wwwmercercapitalcom 14
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Date Announced
Deal Status
Total Deal Value
Deal Value to
Target Buyer Sales EBITDA
MarineNone during third quarter 2019
Air Freight amp LogisticsPremium Transportation Logistics LLC Senior Management 7119 Closed - - -
Argus Carriers LtdInter-Urban Delivery Service Ltd Mullen Group Ltd (TSXMTL) 7219 Closed - - -
Worldwide Perishables Canada Co Kuehne + Nagel International AG (SWXKNIN) 72419 Closed - - -
Unitrans International Corporation AIT Worldwide Logistics Inc 8519 Closed - - -
GTO Global Logistics Inc Air Menzies International Limited 81219 Closed $23 - -
Ritter Transportation Systems IncRitter Transport IncEVO Transportation amp Energy Services Inc (OTCP-KEVOA)
92019 Closed $137 - -
Source SampP Global Market Intelligencein USD millions
Select Transactions (continued)
copy 2019 Mercer Capital wwwmercercapitalcom 15
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Public Company Performance
Monthly Median TEVEBITDA Multiples (as of Sept 30 2019)
copy 2019 Mercer Capital wwwmercercapitalcom 16
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
TruckloadJB Hunt Transport Services Inc JBHT $11065 21 $13303 11 830 $9033 13 15x 115x 257x 101x 206x
TFI International Inc TFII $3064 -11 $4222 40 660 $3924 14 11x 77x 107x 66x 103x
Ryder System Inc R $5177 11 $10550 74 337 $8905 27 12x 44x 213x 48x 491x
Knight-Swift Transportation Holdings Inc KNX $3630 4 $7269 15 399 $5042 19 14x 75x 157x 77x 162x
Landstar System Inc LSTR $11258 1 $4327 -3 1429 $4277 8 10x 120x 181x 124x 191x
Werner Enterprises Inc WERN $3530 19 $2794 13 674 $2488 19 11x 59x 141x 60x 151x
Schneider National Inc SNDR $2172 14 $3927 2 584 $4912 13 08x 61x 219x 65x 169x
Heartland Express Inc HTLD $2151 19 $1558 -13 519 $577 29 27x 92x 213x 77x 216x
Daseke Inc DSKE $250 -31 $968 77 8 $1781 9 05x 61x nm 59x nm
Marten Transport Ltd MRTN $2078 4 $1054 -8 562 $830 19 13x 65x 186x 61x 188x
Universal Logistics Holdings Inc ULH $2328 14 $1071 41 772 $1522 11 07x 62x 168x 65x 97x
Covenant Transportation Group Inc CVTI $1644 12 $598 49 276 $934 13 06x 51x 127x 61x 216x
PAM Transportation Services Inc PTSI $5911 -5 $539 37 581 $529 19 10x 55x 123x 53x 117x
USA Truck Inc USAK $803 -21 $259 74 283 $540 9 05x 54x 123x 58x 824x
Titanium Transportation Group Inc TTR $098 -3 $98 63 240 $126 9 08x 86x 173x 70x 290x
Patriot Transportation Holding Inc PATI $1790 5 $39 -52 24 $111 8 04x 44x 273x nm nm
Median 5 26 130 10x 61x 173x 65x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 17
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Less-Than-TruckloadOld Dominion Freight Line Inc ODFL $16997 14 $13483 -1 1448 $4127 27 33x 122x 216x 124x 220x
Saia Inc SAIA $9370 45 $2657 9 791 $1750 16 15x 97x 204x 96x 213x
ArcBest Corporation ARCB $3045 8 $833 7 356 $3045 7 03x 42x 128x 41x 119x
YRC Worldwide Inc YRCW $302 -25 $1202 91 138 $4959 4 02x 62x nm 59x nm
Roadrunner Transportation Systems Inc RRTS $1036 8 $778 50 -708 $1999 -2 04x -248x nm -344x nm
Median 8 9 7 04x 62x 204x 59x 213x
Air FreightAtlas Air Worldwide Holdings Inc AAWW $2523 -43 $3520 81 228 $2757 18 13x 70x 20x 74x 56x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Cargojet Inc CJT $7110 11 $1459 35 409 $362 25 40x 164x 565x 125x 674x
Median -3 44 21 17x 96x 163x 97x 180x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 18
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
MarineKirby Corporation KEX $8216 4 $6663 26 307 $2904 18 23x 129x 427x 132x 283x
Triton International Limited TRTN $3384 3 $9951 73 453 $1420 93 70x 75x 74x 80x 74x
Matson Inc MATX $3751 -3 $2674 40 269 $2227 9 12x 128x 183x 99x 194x
Seaspan Corporation SSW $1063 8 $6540 65 380 $1138 63 57x 91x 53x 92x 135x
Textainer Group Holdings Limited TGH $991 -2 $3963 86 286 $706 67 56x 84x 142x 85x 101x
Costamare Inc CMRE $607 18 $2328 69 410 $460 64 51x 79x 86x 71x 70x
Eagle Bulk Shipping Inc EGLE $438 -17 $653 49 139 $308 17 21x 124x nm 113x nm
Navios Maritime Partners LP NMM $1773 31 $650 69 230 $216 47 30x 64x 1495x 57x 67x
Pangaea Logistics Solutions Ltd PANL $321 -4 $350 59 424 $384 13 09x 70x 92x 69x 68x
Global Ship Lease Inc GSL $765 4 $918 86 638 $244 58 38x 65x nm 58x 48x
Sino-Global Shipping America Ltd SINO $076 7 $4 -197 -1710 $47 -8 01x -11x nm nm nm
Median 4 65 30x 79x 117x 83x 74x
RailroadsUnion Pacific Corporation UNP $16198 -4 $140317 19 891 $22253 49 63x 129x 188x 129x 190x
Canadian National Railway Company CNR $8986 -3 $74929 14 915 $11437 51 66x 129x 190x 135x 201x
CSX Corporation CSX $6927 -10 $69900 21 833 $12195 52 57x 109x 162x 109x 165x
Norfolk Southern Corporation NSC $17966 -10 $59393 20 706 $11502 46 52x 112x 172x 115x 177x
Canadian Pacific Railway Limited CP $22240 -6 $37519 18 1002 $5838 54 64x 119x 176x 128x 181x
Kansas City Southern KSU $13301 9 $16407 19 670 $2831 49 58x 119x 232x 117x 191x
Genesee amp Wyoming Inc GWR $11051 11 $9310 32 308 $2289 29 41x 142x 296x 139x 267x
Median -4 19 58x 119x 188x 128x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 19
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Logistics amp IntermodalUnited Parcel Service Inc UPS $11982 16 $124013 17 704 $73374 11 17x 157x 206x 118x 159x
FedEx Corporation FDX $14557 -11 $68386 44 155 $69200 13 10x 78x 104x 81x 95x
Expeditors International of Washington Inc EXPD $7429 -2 $11979 -6 1426 $8366 10 14x 140x 201x 141x 210x
XPO Logistics Inc XPO $7157 24 $14173 53 407 $16901 9 08x 89x 164x 85x 180x
CH Robinson Worldwide Inc CHRW $8478 1 $12647 9 1244 $15654 6 08x 127x 173x 134x 191x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Hub Group Inc HUBG $4650 11 $1773 11 542 $3786 7 05x 65x 124x 66x 137x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Echo Global Logistics Inc ECHO $2265 9 $794 22 308 $2236 3 04x 118x 304x 97x 156x
Radiant Logistics Inc RLGT $517 -16 $288 11 502 $920 4 03x 76x 154x 71x 128x
Median 4 14 09x 103x 168x 91x 158x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
Mercer CapitalTransportation amp Logistics Industry Services
Contact Us
Copyright copy 2019 Mercer Capital Management Inc All rights reserved It is illegal under Federal law to reproduce this publication or any portion of its contents without the publisherrsquos permission Media quotations with source attribution are encouraged
Reporters requesting additional information or editorial comment should contact Barbara Walters Price at 9016852120 Mercer Capitalrsquos Industry Focus is published quarterly and does not constitute legal or financial consulting advice It is offered as an
information service to our clients and friends Those interested in specific guidance for legal or accounting matters should seek competent professional advice Inquiries to discuss specific valuation matters are welcomed To add your name to our mailing
list to receive this complimentary publication visit our web site at wwwmercercapitalcom
Mercer Capital provides valuation and transaction advisory services to the transportation amp logistics industry
Industry Segments
Mercer Capital serves the following industry
segments
bull Trucking
bull Air Freight
bull Marine
bull Railroads
bull Logistics amp Intermodal
Contact a Mercer Capital professional to discuss your needs in confidence
Timothy R Lee ASA
9013229740
leetmercercapitalcom
Nicholas J Heinz ASA
9016852120
heinznmercercapitalcom
Scott A Womack ASA MAFF
6153450234
womacksmercercapitalcom
Samantha L Albert ASA
9013229702
albertsmercercapitalcom
wwwmercercapitalcom
BUSINESS VALUATION amp FINANCIAL ADVISORY SERVICES
Services Provided
bull Valuation of transportation and logistics companies
bull Transaction advisory for acquisitions and
divestitures
bull Valuations for purchase accounting and impairment
testing
bull Fairness and solvency opinions
bull Litigation support for economic damages and
valuation and shareholder disputes
Mercer Capitalwwwmercercapitalcom
copy 2019 Mercer Capital wwwmercercapitalcom 2
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Paul Bingham Director of Transportation Consulting at IHS Markit noted that the threat of impending tariffs could have
been partially responsible for the flurry of shipping seen in 2018 especially when compared to slow first quarter of 2019
As companies accelerated freight shipments to avoid tariffs rates grew and capacity filled After the implementation of
tariffs rates fell in trucking rail and intermodal Grain and soybean carloads declined The USMCA (the successor to
NAFTA) could encourage more investment and production in Mexico as opposed to China which may be a boon to truck-
ing and rail shippers
Tariffs would also directly impact marine transportation A reduction in goods shipped means fewer container ships enter-
ing ports This in turn impacts the trucking industry which distributes imported goods from port cities across the country
DAT Solutions estimate that 7 of container volume from China could be impacted by tariffs The timing of tariffs also
impacts the transportation industry as shippers may rush to get products shipped before the imposition of additional tariffs
or delay shipping if they think the tariffs may be reduced
Between decreased freight demand which has contributed to lower spot rates many trucking firms have failed during
2019 Donald Broughton of Broughton Capital estimates that over 600 freight companies went out of business before
September Although spot rates have fallen most companies have not reduced driver pay resulting in cash flow issues
On the plus side for the transportation industry 53-foot containers (but not the cargo within) officially excluded from tariff
lists As there are no longer any American-based manufacturers of 53-foot containers the American Trucking Association
estimates that the logistics industry would have had nearly $750 million in additional expenses over the next decade had
a tariff been applied Additionally President Trump has indicated that some key consumer products including computers
and toys may not be subject to tariffs until mid-December potentially preventing downward pressure on holiday sales
FEATURE ARTICLE
Tariff Time(continued)
copy 2019 Mercer Capital wwwmercercapitalcom 3
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Industry Macro TrendsIndustrial Production IndexDemand for services in the logistics
industry is tied to the level of domestic
industrial production The Industrial
Production Index is an economic
measure of all real output from
manufacturing mining electric and gas
utilities The index value in September
2019 rose to 1095 up 019 from
1093 in June 2019 but down 014
on a year-over-year basis September
2019 also reversed two quarters of
declines Utilities and nonindustrial
supplies posted the largest gains from
June through September
Industrial Production Index (seasonally adjusted)
copy 2019 Mercer Capital wwwmercercapitalcom 4
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Industry Macro TrendsTransportation Services IndexThe Transportation Services Index
which measures freight traffic in the
United States increased in August
2019 The index rose to 1406 up 015
from 1381 in May 2019 and up 392
from 1353 in August 2018 The use of
freight transportation has generally kept
pace with industrial output over the last
20 years
Cass Freight IndexThe Cass Freight Index of shipments and
expenditures is considered one of the
best indicators of overall US freight activ-
ity Although shipments were at record
highs in early 2018 the first nine months
of 2019 have recorded consecutive
year-over-year declines September 2019
marked the second consecutive month
of monthly gains though it remains to be
seen if this trend will continue
Transportation Services Index (freight seasonally adjusted)
Cass Freight Index
copy 2019 Mercer Capital wwwmercercapitalcom 5
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
IndustryMacro TrendsShipmentsShipments in the third quarter of 2019 increased relative to the second quarter but continued to lag behind the level recorded at this point last year After an exceptionally strong year in 2018 the index began declining on a year-over-year basis in December 2018 which has continued through the second quarter The Cass Report notes that decreases in the shipments index beginning in the second quarter of 2019 signal an economic contraction Increases and declines in the level of freight shipments are frequent precursors to economic activity signaling economic expansion and contraction respectively On a year-over-year basis the Cass Freight
Shipment Index declined 34
Shipments
copy 2019 Mercer Capital wwwmercercapitalcom 6
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Industry Macro Trends
ExpendituresThe Expenditures Index hit 2854 in
September 2019 an increase over
August 2019 but 22 lower than
its level in June 2019 The rate of
expenditure growth has slowed in recent
months and has been negative on a
year-over-year basis since July 2019
The decreasing cost of diesel fuel has
contributed to the Expenditures index
decline however The Cass Report
notes that spot pricing has fallen
significantly over the past fifteen months
and capacity has continued to increase
Expenditures
copy 2019 Mercer Capital wwwmercercapitalcom 7
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Trucking
Truck Tonnage (seasonally adjusted)
Truck TonnageThe Truck Tonnage Index reached a high level in July 2019 at 1193 compared to a low of 748 in April 2009 during the Great
Recession The July increase is the seventh consecutive month of increase and is 11 higher than June 2019 and 51
higher than July 2018 The American Trucking Association estimates that freight tonnage will grow 26 from 2019 to 2030
and industry revenues are expected to increase by over 50
copy 2019 Mercer Capital wwwmercercapitalcom 8
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
TruckingSpot vs Contract RatesThe Spot vs Contract Rates chart
depicts monthly national average line
haul rates and fuel surcharges from
DAT Shippers enter contracts that lock
in a static contract rate for a period of
time Spot rates on the other hand are
one-time shipping quotes for a specific
transaction or series of transactions
Excess capacity has contributed to
spot rates below contract rates in
recent months and a larger than normal
divergence between the two rates
Reefer flatbed and dry van spot rates
all declined relative to June 2019 Reefer
spot rates decreased 10cent to $216 in
September 2019 from $226 in June
2019 Dry van spot rates fell 5cent to $184
from $189 Flatbed rates decreased 9cent
to $215 from $224
Spot vs Contract Rates
copy 2019 Mercer Capital wwwmercercapitalcom 9
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
TruckingLoad-to-Truck RatioThe load-to-truck ratio is calculated
by dividing the total number of loads for
shipment by the total number of trucks
available As a result the load-to-truck
ratio can signal a shortage or excess
of capacity which in turn influences
changes in freight An increase in the
ratio (ie a higher number of loads
relative to the level of available trucks)
is typically associated with shipping
rate increases While economic factors
typically push supply and demand
compression or expansion that occurs
faster in the shipping industry can
accelerate movements faster than the
overall economy
The load-to-truck ratio declined sharply
in the third quarter 2019 for all three
types of trucks tracked by DAT The van
ratio fell 24 the reefer ratio fell 13
and the flatbed ratio fell 31
Dry Van Load-to-Truck
Reefer Load-to-Truck
Flatbed Load-to-Truck
Source DAT
copy 2019 Mercer Capital wwwmercercapitalcom 10
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Rail amp Intermodal
Rail Freight Intermodal Traffic
Rail Freight Intermodal TrafficIntermodal shipments increased in July 2019 relative to June 2019 with intermodal freight volumes up 15 from June
However on an annual basis rail carloads declined 51 from August 2018 American Association of Railroads Senior Vice
President of Policy and Economics John Gray indicated that the year-over-year decline was due largely to reduced traffic in
the three largest rail segments ndash coal grain and intermodal Low natural gas prices cooled demand for coal and ongoing
trade concerns with China depressed the grain and international markets (50 of rail intermodal involves international
shipments)
copy 2019 Mercer Capital wwwmercercapitalcom 11
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Rail amp IntermodalCass Intermodal IndexThe Cass Intermodal Index measures
changes in per-mile US domestic
intermodal costs The index in Sep-
tember 2019 was 1423 relatively un-
changed from 1420 in June 2019 and
a 01 increase on a year-to-year ba-
sis Cass indicates that declining fuel
costs once again impacted the index
value
Cass Intermodal Index Historical Trend
Cass Intermodal Index Annual Comparison
copy 2019 Mercer Capital wwwmercercapitalcom 12
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
MampA ActivityFeatured Transactions
Genesee amp Wyoming Inc (NYSEGWR) acquired by
Brookfield Asset Management
EVO Transportation amp Energy Services Inc
acquired multiple transportation companies
Brookfield Asset Management acquired GWR for
$95 billion on August 26 at a multiple of 41x sales
and 141x EBITDA GWR is an owner and operator
of freight railroads in the US Canada Britain and
Europe GWR had grown rapidly in part through
acquisition of short-line railroads and faced increased
maintenance costs
EVO Transportation closed on at least three acquisi-
tions during the third quarter EVO Transportation ac-
quired Courtlandt and Brown Enterprises LLCFinkle
Transport Inc for $120 million and Ritter Transporta-
tion for $137 million EVO also acquired an LLC that
owns vehicles for leasing
Senior management team purchases
Premium Transportation Logistics
Heartland Express Inc (HTLD) acquired
Millis Transfer Inc
The senior management team of Premium
Transportation Logistics acquired PTL from its parent
company PTL is a expedited ground shipping
company The deal closed in July 2019
Heartland Express acquired Millis Transfer for a total
purchase price of $150 million at a multiple of 10x
revenue Millis is a regional dry van truckload company
based in Iowa Millis was previously family-owned
and operated and Heartland intends to retain the
management team
copy 2019 Mercer Capital wwwmercercapitalcom 13
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Select Transactions
Date Announced
Deal Status
Total Deal Value
Deal Value to
Target Buyer Sales EBITDA
TruckingBWP Transport Inc AampR Logistics Inc 7119 Closed - - -
Carlisle Carrier Corporation Cowan Systems LLC 71119 Closed - - -
Logicorp Enterprises LLC Outwest Express LLC 72219 Closed - - -
Courtlandt and Brown Enterprises LLCFinkle Transport IncEVO Transportation amp Energy Services Inc (OTCP-KEVOA)
72519 Closed $120 - -
Piston Tank Corporation TFI International Inc (TSXTFII) 72919 Closed - - -
Wayne T Fellows IncFellows Truck Brokers Inc Kottke Trucking Inc 73119 Closed - - -
Millis Transfer Inc Heartland Express Inc (NasdaqGSHTLD) 82619 Closed $1500 10x -
DR Graham Trucking LLC Energy amp Environmental Services Inc 82719 Closed - - -
Schindewolf Express Inc Quest Liner Inc 82019 Closed - - -
RailGenesee amp Wyoming Inc (NYSEGWR) DJP XX LLC (Brookfield Asset Management) 7119 Announced $94789 41x 141x
Winchester amp Western Railroad Company Inc OmniTRAX Inc 72619 Closed $1050 - -
Patriot Rail Company LLC First State Investments (Us) Llc MidRail LLC 82619 Announced - - -
The Cleveland Commercial Railroad Company LLC OmniTRAX Inc 82719 Announced - - -
Massena Rail Line of CSX Corporation Canadian National Railway Company (TSXCNR) 82919 Announced - - -
Arrow Material Services LLC Precision Terminal Logistics LLC 9619 Closed - - -
Source SampP Global Market Intelligencein USD millions
copy 2019 Mercer Capital wwwmercercapitalcom 14
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Date Announced
Deal Status
Total Deal Value
Deal Value to
Target Buyer Sales EBITDA
MarineNone during third quarter 2019
Air Freight amp LogisticsPremium Transportation Logistics LLC Senior Management 7119 Closed - - -
Argus Carriers LtdInter-Urban Delivery Service Ltd Mullen Group Ltd (TSXMTL) 7219 Closed - - -
Worldwide Perishables Canada Co Kuehne + Nagel International AG (SWXKNIN) 72419 Closed - - -
Unitrans International Corporation AIT Worldwide Logistics Inc 8519 Closed - - -
GTO Global Logistics Inc Air Menzies International Limited 81219 Closed $23 - -
Ritter Transportation Systems IncRitter Transport IncEVO Transportation amp Energy Services Inc (OTCP-KEVOA)
92019 Closed $137 - -
Source SampP Global Market Intelligencein USD millions
Select Transactions (continued)
copy 2019 Mercer Capital wwwmercercapitalcom 15
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Public Company Performance
Monthly Median TEVEBITDA Multiples (as of Sept 30 2019)
copy 2019 Mercer Capital wwwmercercapitalcom 16
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
TruckloadJB Hunt Transport Services Inc JBHT $11065 21 $13303 11 830 $9033 13 15x 115x 257x 101x 206x
TFI International Inc TFII $3064 -11 $4222 40 660 $3924 14 11x 77x 107x 66x 103x
Ryder System Inc R $5177 11 $10550 74 337 $8905 27 12x 44x 213x 48x 491x
Knight-Swift Transportation Holdings Inc KNX $3630 4 $7269 15 399 $5042 19 14x 75x 157x 77x 162x
Landstar System Inc LSTR $11258 1 $4327 -3 1429 $4277 8 10x 120x 181x 124x 191x
Werner Enterprises Inc WERN $3530 19 $2794 13 674 $2488 19 11x 59x 141x 60x 151x
Schneider National Inc SNDR $2172 14 $3927 2 584 $4912 13 08x 61x 219x 65x 169x
Heartland Express Inc HTLD $2151 19 $1558 -13 519 $577 29 27x 92x 213x 77x 216x
Daseke Inc DSKE $250 -31 $968 77 8 $1781 9 05x 61x nm 59x nm
Marten Transport Ltd MRTN $2078 4 $1054 -8 562 $830 19 13x 65x 186x 61x 188x
Universal Logistics Holdings Inc ULH $2328 14 $1071 41 772 $1522 11 07x 62x 168x 65x 97x
Covenant Transportation Group Inc CVTI $1644 12 $598 49 276 $934 13 06x 51x 127x 61x 216x
PAM Transportation Services Inc PTSI $5911 -5 $539 37 581 $529 19 10x 55x 123x 53x 117x
USA Truck Inc USAK $803 -21 $259 74 283 $540 9 05x 54x 123x 58x 824x
Titanium Transportation Group Inc TTR $098 -3 $98 63 240 $126 9 08x 86x 173x 70x 290x
Patriot Transportation Holding Inc PATI $1790 5 $39 -52 24 $111 8 04x 44x 273x nm nm
Median 5 26 130 10x 61x 173x 65x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 17
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Less-Than-TruckloadOld Dominion Freight Line Inc ODFL $16997 14 $13483 -1 1448 $4127 27 33x 122x 216x 124x 220x
Saia Inc SAIA $9370 45 $2657 9 791 $1750 16 15x 97x 204x 96x 213x
ArcBest Corporation ARCB $3045 8 $833 7 356 $3045 7 03x 42x 128x 41x 119x
YRC Worldwide Inc YRCW $302 -25 $1202 91 138 $4959 4 02x 62x nm 59x nm
Roadrunner Transportation Systems Inc RRTS $1036 8 $778 50 -708 $1999 -2 04x -248x nm -344x nm
Median 8 9 7 04x 62x 204x 59x 213x
Air FreightAtlas Air Worldwide Holdings Inc AAWW $2523 -43 $3520 81 228 $2757 18 13x 70x 20x 74x 56x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Cargojet Inc CJT $7110 11 $1459 35 409 $362 25 40x 164x 565x 125x 674x
Median -3 44 21 17x 96x 163x 97x 180x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 18
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
MarineKirby Corporation KEX $8216 4 $6663 26 307 $2904 18 23x 129x 427x 132x 283x
Triton International Limited TRTN $3384 3 $9951 73 453 $1420 93 70x 75x 74x 80x 74x
Matson Inc MATX $3751 -3 $2674 40 269 $2227 9 12x 128x 183x 99x 194x
Seaspan Corporation SSW $1063 8 $6540 65 380 $1138 63 57x 91x 53x 92x 135x
Textainer Group Holdings Limited TGH $991 -2 $3963 86 286 $706 67 56x 84x 142x 85x 101x
Costamare Inc CMRE $607 18 $2328 69 410 $460 64 51x 79x 86x 71x 70x
Eagle Bulk Shipping Inc EGLE $438 -17 $653 49 139 $308 17 21x 124x nm 113x nm
Navios Maritime Partners LP NMM $1773 31 $650 69 230 $216 47 30x 64x 1495x 57x 67x
Pangaea Logistics Solutions Ltd PANL $321 -4 $350 59 424 $384 13 09x 70x 92x 69x 68x
Global Ship Lease Inc GSL $765 4 $918 86 638 $244 58 38x 65x nm 58x 48x
Sino-Global Shipping America Ltd SINO $076 7 $4 -197 -1710 $47 -8 01x -11x nm nm nm
Median 4 65 30x 79x 117x 83x 74x
RailroadsUnion Pacific Corporation UNP $16198 -4 $140317 19 891 $22253 49 63x 129x 188x 129x 190x
Canadian National Railway Company CNR $8986 -3 $74929 14 915 $11437 51 66x 129x 190x 135x 201x
CSX Corporation CSX $6927 -10 $69900 21 833 $12195 52 57x 109x 162x 109x 165x
Norfolk Southern Corporation NSC $17966 -10 $59393 20 706 $11502 46 52x 112x 172x 115x 177x
Canadian Pacific Railway Limited CP $22240 -6 $37519 18 1002 $5838 54 64x 119x 176x 128x 181x
Kansas City Southern KSU $13301 9 $16407 19 670 $2831 49 58x 119x 232x 117x 191x
Genesee amp Wyoming Inc GWR $11051 11 $9310 32 308 $2289 29 41x 142x 296x 139x 267x
Median -4 19 58x 119x 188x 128x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 19
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Logistics amp IntermodalUnited Parcel Service Inc UPS $11982 16 $124013 17 704 $73374 11 17x 157x 206x 118x 159x
FedEx Corporation FDX $14557 -11 $68386 44 155 $69200 13 10x 78x 104x 81x 95x
Expeditors International of Washington Inc EXPD $7429 -2 $11979 -6 1426 $8366 10 14x 140x 201x 141x 210x
XPO Logistics Inc XPO $7157 24 $14173 53 407 $16901 9 08x 89x 164x 85x 180x
CH Robinson Worldwide Inc CHRW $8478 1 $12647 9 1244 $15654 6 08x 127x 173x 134x 191x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Hub Group Inc HUBG $4650 11 $1773 11 542 $3786 7 05x 65x 124x 66x 137x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Echo Global Logistics Inc ECHO $2265 9 $794 22 308 $2236 3 04x 118x 304x 97x 156x
Radiant Logistics Inc RLGT $517 -16 $288 11 502 $920 4 03x 76x 154x 71x 128x
Median 4 14 09x 103x 168x 91x 158x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
Mercer CapitalTransportation amp Logistics Industry Services
Contact Us
Copyright copy 2019 Mercer Capital Management Inc All rights reserved It is illegal under Federal law to reproduce this publication or any portion of its contents without the publisherrsquos permission Media quotations with source attribution are encouraged
Reporters requesting additional information or editorial comment should contact Barbara Walters Price at 9016852120 Mercer Capitalrsquos Industry Focus is published quarterly and does not constitute legal or financial consulting advice It is offered as an
information service to our clients and friends Those interested in specific guidance for legal or accounting matters should seek competent professional advice Inquiries to discuss specific valuation matters are welcomed To add your name to our mailing
list to receive this complimentary publication visit our web site at wwwmercercapitalcom
Mercer Capital provides valuation and transaction advisory services to the transportation amp logistics industry
Industry Segments
Mercer Capital serves the following industry
segments
bull Trucking
bull Air Freight
bull Marine
bull Railroads
bull Logistics amp Intermodal
Contact a Mercer Capital professional to discuss your needs in confidence
Timothy R Lee ASA
9013229740
leetmercercapitalcom
Nicholas J Heinz ASA
9016852120
heinznmercercapitalcom
Scott A Womack ASA MAFF
6153450234
womacksmercercapitalcom
Samantha L Albert ASA
9013229702
albertsmercercapitalcom
wwwmercercapitalcom
BUSINESS VALUATION amp FINANCIAL ADVISORY SERVICES
Services Provided
bull Valuation of transportation and logistics companies
bull Transaction advisory for acquisitions and
divestitures
bull Valuations for purchase accounting and impairment
testing
bull Fairness and solvency opinions
bull Litigation support for economic damages and
valuation and shareholder disputes
Mercer Capitalwwwmercercapitalcom
copy 2019 Mercer Capital wwwmercercapitalcom 3
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Industry Macro TrendsIndustrial Production IndexDemand for services in the logistics
industry is tied to the level of domestic
industrial production The Industrial
Production Index is an economic
measure of all real output from
manufacturing mining electric and gas
utilities The index value in September
2019 rose to 1095 up 019 from
1093 in June 2019 but down 014
on a year-over-year basis September
2019 also reversed two quarters of
declines Utilities and nonindustrial
supplies posted the largest gains from
June through September
Industrial Production Index (seasonally adjusted)
copy 2019 Mercer Capital wwwmercercapitalcom 4
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Industry Macro TrendsTransportation Services IndexThe Transportation Services Index
which measures freight traffic in the
United States increased in August
2019 The index rose to 1406 up 015
from 1381 in May 2019 and up 392
from 1353 in August 2018 The use of
freight transportation has generally kept
pace with industrial output over the last
20 years
Cass Freight IndexThe Cass Freight Index of shipments and
expenditures is considered one of the
best indicators of overall US freight activ-
ity Although shipments were at record
highs in early 2018 the first nine months
of 2019 have recorded consecutive
year-over-year declines September 2019
marked the second consecutive month
of monthly gains though it remains to be
seen if this trend will continue
Transportation Services Index (freight seasonally adjusted)
Cass Freight Index
copy 2019 Mercer Capital wwwmercercapitalcom 5
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
IndustryMacro TrendsShipmentsShipments in the third quarter of 2019 increased relative to the second quarter but continued to lag behind the level recorded at this point last year After an exceptionally strong year in 2018 the index began declining on a year-over-year basis in December 2018 which has continued through the second quarter The Cass Report notes that decreases in the shipments index beginning in the second quarter of 2019 signal an economic contraction Increases and declines in the level of freight shipments are frequent precursors to economic activity signaling economic expansion and contraction respectively On a year-over-year basis the Cass Freight
Shipment Index declined 34
Shipments
copy 2019 Mercer Capital wwwmercercapitalcom 6
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Industry Macro Trends
ExpendituresThe Expenditures Index hit 2854 in
September 2019 an increase over
August 2019 but 22 lower than
its level in June 2019 The rate of
expenditure growth has slowed in recent
months and has been negative on a
year-over-year basis since July 2019
The decreasing cost of diesel fuel has
contributed to the Expenditures index
decline however The Cass Report
notes that spot pricing has fallen
significantly over the past fifteen months
and capacity has continued to increase
Expenditures
copy 2019 Mercer Capital wwwmercercapitalcom 7
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Trucking
Truck Tonnage (seasonally adjusted)
Truck TonnageThe Truck Tonnage Index reached a high level in July 2019 at 1193 compared to a low of 748 in April 2009 during the Great
Recession The July increase is the seventh consecutive month of increase and is 11 higher than June 2019 and 51
higher than July 2018 The American Trucking Association estimates that freight tonnage will grow 26 from 2019 to 2030
and industry revenues are expected to increase by over 50
copy 2019 Mercer Capital wwwmercercapitalcom 8
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
TruckingSpot vs Contract RatesThe Spot vs Contract Rates chart
depicts monthly national average line
haul rates and fuel surcharges from
DAT Shippers enter contracts that lock
in a static contract rate for a period of
time Spot rates on the other hand are
one-time shipping quotes for a specific
transaction or series of transactions
Excess capacity has contributed to
spot rates below contract rates in
recent months and a larger than normal
divergence between the two rates
Reefer flatbed and dry van spot rates
all declined relative to June 2019 Reefer
spot rates decreased 10cent to $216 in
September 2019 from $226 in June
2019 Dry van spot rates fell 5cent to $184
from $189 Flatbed rates decreased 9cent
to $215 from $224
Spot vs Contract Rates
copy 2019 Mercer Capital wwwmercercapitalcom 9
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
TruckingLoad-to-Truck RatioThe load-to-truck ratio is calculated
by dividing the total number of loads for
shipment by the total number of trucks
available As a result the load-to-truck
ratio can signal a shortage or excess
of capacity which in turn influences
changes in freight An increase in the
ratio (ie a higher number of loads
relative to the level of available trucks)
is typically associated with shipping
rate increases While economic factors
typically push supply and demand
compression or expansion that occurs
faster in the shipping industry can
accelerate movements faster than the
overall economy
The load-to-truck ratio declined sharply
in the third quarter 2019 for all three
types of trucks tracked by DAT The van
ratio fell 24 the reefer ratio fell 13
and the flatbed ratio fell 31
Dry Van Load-to-Truck
Reefer Load-to-Truck
Flatbed Load-to-Truck
Source DAT
copy 2019 Mercer Capital wwwmercercapitalcom 10
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Rail amp Intermodal
Rail Freight Intermodal Traffic
Rail Freight Intermodal TrafficIntermodal shipments increased in July 2019 relative to June 2019 with intermodal freight volumes up 15 from June
However on an annual basis rail carloads declined 51 from August 2018 American Association of Railroads Senior Vice
President of Policy and Economics John Gray indicated that the year-over-year decline was due largely to reduced traffic in
the three largest rail segments ndash coal grain and intermodal Low natural gas prices cooled demand for coal and ongoing
trade concerns with China depressed the grain and international markets (50 of rail intermodal involves international
shipments)
copy 2019 Mercer Capital wwwmercercapitalcom 11
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Rail amp IntermodalCass Intermodal IndexThe Cass Intermodal Index measures
changes in per-mile US domestic
intermodal costs The index in Sep-
tember 2019 was 1423 relatively un-
changed from 1420 in June 2019 and
a 01 increase on a year-to-year ba-
sis Cass indicates that declining fuel
costs once again impacted the index
value
Cass Intermodal Index Historical Trend
Cass Intermodal Index Annual Comparison
copy 2019 Mercer Capital wwwmercercapitalcom 12
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
MampA ActivityFeatured Transactions
Genesee amp Wyoming Inc (NYSEGWR) acquired by
Brookfield Asset Management
EVO Transportation amp Energy Services Inc
acquired multiple transportation companies
Brookfield Asset Management acquired GWR for
$95 billion on August 26 at a multiple of 41x sales
and 141x EBITDA GWR is an owner and operator
of freight railroads in the US Canada Britain and
Europe GWR had grown rapidly in part through
acquisition of short-line railroads and faced increased
maintenance costs
EVO Transportation closed on at least three acquisi-
tions during the third quarter EVO Transportation ac-
quired Courtlandt and Brown Enterprises LLCFinkle
Transport Inc for $120 million and Ritter Transporta-
tion for $137 million EVO also acquired an LLC that
owns vehicles for leasing
Senior management team purchases
Premium Transportation Logistics
Heartland Express Inc (HTLD) acquired
Millis Transfer Inc
The senior management team of Premium
Transportation Logistics acquired PTL from its parent
company PTL is a expedited ground shipping
company The deal closed in July 2019
Heartland Express acquired Millis Transfer for a total
purchase price of $150 million at a multiple of 10x
revenue Millis is a regional dry van truckload company
based in Iowa Millis was previously family-owned
and operated and Heartland intends to retain the
management team
copy 2019 Mercer Capital wwwmercercapitalcom 13
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Select Transactions
Date Announced
Deal Status
Total Deal Value
Deal Value to
Target Buyer Sales EBITDA
TruckingBWP Transport Inc AampR Logistics Inc 7119 Closed - - -
Carlisle Carrier Corporation Cowan Systems LLC 71119 Closed - - -
Logicorp Enterprises LLC Outwest Express LLC 72219 Closed - - -
Courtlandt and Brown Enterprises LLCFinkle Transport IncEVO Transportation amp Energy Services Inc (OTCP-KEVOA)
72519 Closed $120 - -
Piston Tank Corporation TFI International Inc (TSXTFII) 72919 Closed - - -
Wayne T Fellows IncFellows Truck Brokers Inc Kottke Trucking Inc 73119 Closed - - -
Millis Transfer Inc Heartland Express Inc (NasdaqGSHTLD) 82619 Closed $1500 10x -
DR Graham Trucking LLC Energy amp Environmental Services Inc 82719 Closed - - -
Schindewolf Express Inc Quest Liner Inc 82019 Closed - - -
RailGenesee amp Wyoming Inc (NYSEGWR) DJP XX LLC (Brookfield Asset Management) 7119 Announced $94789 41x 141x
Winchester amp Western Railroad Company Inc OmniTRAX Inc 72619 Closed $1050 - -
Patriot Rail Company LLC First State Investments (Us) Llc MidRail LLC 82619 Announced - - -
The Cleveland Commercial Railroad Company LLC OmniTRAX Inc 82719 Announced - - -
Massena Rail Line of CSX Corporation Canadian National Railway Company (TSXCNR) 82919 Announced - - -
Arrow Material Services LLC Precision Terminal Logistics LLC 9619 Closed - - -
Source SampP Global Market Intelligencein USD millions
copy 2019 Mercer Capital wwwmercercapitalcom 14
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Date Announced
Deal Status
Total Deal Value
Deal Value to
Target Buyer Sales EBITDA
MarineNone during third quarter 2019
Air Freight amp LogisticsPremium Transportation Logistics LLC Senior Management 7119 Closed - - -
Argus Carriers LtdInter-Urban Delivery Service Ltd Mullen Group Ltd (TSXMTL) 7219 Closed - - -
Worldwide Perishables Canada Co Kuehne + Nagel International AG (SWXKNIN) 72419 Closed - - -
Unitrans International Corporation AIT Worldwide Logistics Inc 8519 Closed - - -
GTO Global Logistics Inc Air Menzies International Limited 81219 Closed $23 - -
Ritter Transportation Systems IncRitter Transport IncEVO Transportation amp Energy Services Inc (OTCP-KEVOA)
92019 Closed $137 - -
Source SampP Global Market Intelligencein USD millions
Select Transactions (continued)
copy 2019 Mercer Capital wwwmercercapitalcom 15
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Public Company Performance
Monthly Median TEVEBITDA Multiples (as of Sept 30 2019)
copy 2019 Mercer Capital wwwmercercapitalcom 16
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
TruckloadJB Hunt Transport Services Inc JBHT $11065 21 $13303 11 830 $9033 13 15x 115x 257x 101x 206x
TFI International Inc TFII $3064 -11 $4222 40 660 $3924 14 11x 77x 107x 66x 103x
Ryder System Inc R $5177 11 $10550 74 337 $8905 27 12x 44x 213x 48x 491x
Knight-Swift Transportation Holdings Inc KNX $3630 4 $7269 15 399 $5042 19 14x 75x 157x 77x 162x
Landstar System Inc LSTR $11258 1 $4327 -3 1429 $4277 8 10x 120x 181x 124x 191x
Werner Enterprises Inc WERN $3530 19 $2794 13 674 $2488 19 11x 59x 141x 60x 151x
Schneider National Inc SNDR $2172 14 $3927 2 584 $4912 13 08x 61x 219x 65x 169x
Heartland Express Inc HTLD $2151 19 $1558 -13 519 $577 29 27x 92x 213x 77x 216x
Daseke Inc DSKE $250 -31 $968 77 8 $1781 9 05x 61x nm 59x nm
Marten Transport Ltd MRTN $2078 4 $1054 -8 562 $830 19 13x 65x 186x 61x 188x
Universal Logistics Holdings Inc ULH $2328 14 $1071 41 772 $1522 11 07x 62x 168x 65x 97x
Covenant Transportation Group Inc CVTI $1644 12 $598 49 276 $934 13 06x 51x 127x 61x 216x
PAM Transportation Services Inc PTSI $5911 -5 $539 37 581 $529 19 10x 55x 123x 53x 117x
USA Truck Inc USAK $803 -21 $259 74 283 $540 9 05x 54x 123x 58x 824x
Titanium Transportation Group Inc TTR $098 -3 $98 63 240 $126 9 08x 86x 173x 70x 290x
Patriot Transportation Holding Inc PATI $1790 5 $39 -52 24 $111 8 04x 44x 273x nm nm
Median 5 26 130 10x 61x 173x 65x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 17
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Less-Than-TruckloadOld Dominion Freight Line Inc ODFL $16997 14 $13483 -1 1448 $4127 27 33x 122x 216x 124x 220x
Saia Inc SAIA $9370 45 $2657 9 791 $1750 16 15x 97x 204x 96x 213x
ArcBest Corporation ARCB $3045 8 $833 7 356 $3045 7 03x 42x 128x 41x 119x
YRC Worldwide Inc YRCW $302 -25 $1202 91 138 $4959 4 02x 62x nm 59x nm
Roadrunner Transportation Systems Inc RRTS $1036 8 $778 50 -708 $1999 -2 04x -248x nm -344x nm
Median 8 9 7 04x 62x 204x 59x 213x
Air FreightAtlas Air Worldwide Holdings Inc AAWW $2523 -43 $3520 81 228 $2757 18 13x 70x 20x 74x 56x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Cargojet Inc CJT $7110 11 $1459 35 409 $362 25 40x 164x 565x 125x 674x
Median -3 44 21 17x 96x 163x 97x 180x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 18
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
MarineKirby Corporation KEX $8216 4 $6663 26 307 $2904 18 23x 129x 427x 132x 283x
Triton International Limited TRTN $3384 3 $9951 73 453 $1420 93 70x 75x 74x 80x 74x
Matson Inc MATX $3751 -3 $2674 40 269 $2227 9 12x 128x 183x 99x 194x
Seaspan Corporation SSW $1063 8 $6540 65 380 $1138 63 57x 91x 53x 92x 135x
Textainer Group Holdings Limited TGH $991 -2 $3963 86 286 $706 67 56x 84x 142x 85x 101x
Costamare Inc CMRE $607 18 $2328 69 410 $460 64 51x 79x 86x 71x 70x
Eagle Bulk Shipping Inc EGLE $438 -17 $653 49 139 $308 17 21x 124x nm 113x nm
Navios Maritime Partners LP NMM $1773 31 $650 69 230 $216 47 30x 64x 1495x 57x 67x
Pangaea Logistics Solutions Ltd PANL $321 -4 $350 59 424 $384 13 09x 70x 92x 69x 68x
Global Ship Lease Inc GSL $765 4 $918 86 638 $244 58 38x 65x nm 58x 48x
Sino-Global Shipping America Ltd SINO $076 7 $4 -197 -1710 $47 -8 01x -11x nm nm nm
Median 4 65 30x 79x 117x 83x 74x
RailroadsUnion Pacific Corporation UNP $16198 -4 $140317 19 891 $22253 49 63x 129x 188x 129x 190x
Canadian National Railway Company CNR $8986 -3 $74929 14 915 $11437 51 66x 129x 190x 135x 201x
CSX Corporation CSX $6927 -10 $69900 21 833 $12195 52 57x 109x 162x 109x 165x
Norfolk Southern Corporation NSC $17966 -10 $59393 20 706 $11502 46 52x 112x 172x 115x 177x
Canadian Pacific Railway Limited CP $22240 -6 $37519 18 1002 $5838 54 64x 119x 176x 128x 181x
Kansas City Southern KSU $13301 9 $16407 19 670 $2831 49 58x 119x 232x 117x 191x
Genesee amp Wyoming Inc GWR $11051 11 $9310 32 308 $2289 29 41x 142x 296x 139x 267x
Median -4 19 58x 119x 188x 128x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 19
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Logistics amp IntermodalUnited Parcel Service Inc UPS $11982 16 $124013 17 704 $73374 11 17x 157x 206x 118x 159x
FedEx Corporation FDX $14557 -11 $68386 44 155 $69200 13 10x 78x 104x 81x 95x
Expeditors International of Washington Inc EXPD $7429 -2 $11979 -6 1426 $8366 10 14x 140x 201x 141x 210x
XPO Logistics Inc XPO $7157 24 $14173 53 407 $16901 9 08x 89x 164x 85x 180x
CH Robinson Worldwide Inc CHRW $8478 1 $12647 9 1244 $15654 6 08x 127x 173x 134x 191x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Hub Group Inc HUBG $4650 11 $1773 11 542 $3786 7 05x 65x 124x 66x 137x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Echo Global Logistics Inc ECHO $2265 9 $794 22 308 $2236 3 04x 118x 304x 97x 156x
Radiant Logistics Inc RLGT $517 -16 $288 11 502 $920 4 03x 76x 154x 71x 128x
Median 4 14 09x 103x 168x 91x 158x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
Mercer CapitalTransportation amp Logistics Industry Services
Contact Us
Copyright copy 2019 Mercer Capital Management Inc All rights reserved It is illegal under Federal law to reproduce this publication or any portion of its contents without the publisherrsquos permission Media quotations with source attribution are encouraged
Reporters requesting additional information or editorial comment should contact Barbara Walters Price at 9016852120 Mercer Capitalrsquos Industry Focus is published quarterly and does not constitute legal or financial consulting advice It is offered as an
information service to our clients and friends Those interested in specific guidance for legal or accounting matters should seek competent professional advice Inquiries to discuss specific valuation matters are welcomed To add your name to our mailing
list to receive this complimentary publication visit our web site at wwwmercercapitalcom
Mercer Capital provides valuation and transaction advisory services to the transportation amp logistics industry
Industry Segments
Mercer Capital serves the following industry
segments
bull Trucking
bull Air Freight
bull Marine
bull Railroads
bull Logistics amp Intermodal
Contact a Mercer Capital professional to discuss your needs in confidence
Timothy R Lee ASA
9013229740
leetmercercapitalcom
Nicholas J Heinz ASA
9016852120
heinznmercercapitalcom
Scott A Womack ASA MAFF
6153450234
womacksmercercapitalcom
Samantha L Albert ASA
9013229702
albertsmercercapitalcom
wwwmercercapitalcom
BUSINESS VALUATION amp FINANCIAL ADVISORY SERVICES
Services Provided
bull Valuation of transportation and logistics companies
bull Transaction advisory for acquisitions and
divestitures
bull Valuations for purchase accounting and impairment
testing
bull Fairness and solvency opinions
bull Litigation support for economic damages and
valuation and shareholder disputes
Mercer Capitalwwwmercercapitalcom
copy 2019 Mercer Capital wwwmercercapitalcom 4
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Industry Macro TrendsTransportation Services IndexThe Transportation Services Index
which measures freight traffic in the
United States increased in August
2019 The index rose to 1406 up 015
from 1381 in May 2019 and up 392
from 1353 in August 2018 The use of
freight transportation has generally kept
pace with industrial output over the last
20 years
Cass Freight IndexThe Cass Freight Index of shipments and
expenditures is considered one of the
best indicators of overall US freight activ-
ity Although shipments were at record
highs in early 2018 the first nine months
of 2019 have recorded consecutive
year-over-year declines September 2019
marked the second consecutive month
of monthly gains though it remains to be
seen if this trend will continue
Transportation Services Index (freight seasonally adjusted)
Cass Freight Index
copy 2019 Mercer Capital wwwmercercapitalcom 5
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
IndustryMacro TrendsShipmentsShipments in the third quarter of 2019 increased relative to the second quarter but continued to lag behind the level recorded at this point last year After an exceptionally strong year in 2018 the index began declining on a year-over-year basis in December 2018 which has continued through the second quarter The Cass Report notes that decreases in the shipments index beginning in the second quarter of 2019 signal an economic contraction Increases and declines in the level of freight shipments are frequent precursors to economic activity signaling economic expansion and contraction respectively On a year-over-year basis the Cass Freight
Shipment Index declined 34
Shipments
copy 2019 Mercer Capital wwwmercercapitalcom 6
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Industry Macro Trends
ExpendituresThe Expenditures Index hit 2854 in
September 2019 an increase over
August 2019 but 22 lower than
its level in June 2019 The rate of
expenditure growth has slowed in recent
months and has been negative on a
year-over-year basis since July 2019
The decreasing cost of diesel fuel has
contributed to the Expenditures index
decline however The Cass Report
notes that spot pricing has fallen
significantly over the past fifteen months
and capacity has continued to increase
Expenditures
copy 2019 Mercer Capital wwwmercercapitalcom 7
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Trucking
Truck Tonnage (seasonally adjusted)
Truck TonnageThe Truck Tonnage Index reached a high level in July 2019 at 1193 compared to a low of 748 in April 2009 during the Great
Recession The July increase is the seventh consecutive month of increase and is 11 higher than June 2019 and 51
higher than July 2018 The American Trucking Association estimates that freight tonnage will grow 26 from 2019 to 2030
and industry revenues are expected to increase by over 50
copy 2019 Mercer Capital wwwmercercapitalcom 8
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
TruckingSpot vs Contract RatesThe Spot vs Contract Rates chart
depicts monthly national average line
haul rates and fuel surcharges from
DAT Shippers enter contracts that lock
in a static contract rate for a period of
time Spot rates on the other hand are
one-time shipping quotes for a specific
transaction or series of transactions
Excess capacity has contributed to
spot rates below contract rates in
recent months and a larger than normal
divergence between the two rates
Reefer flatbed and dry van spot rates
all declined relative to June 2019 Reefer
spot rates decreased 10cent to $216 in
September 2019 from $226 in June
2019 Dry van spot rates fell 5cent to $184
from $189 Flatbed rates decreased 9cent
to $215 from $224
Spot vs Contract Rates
copy 2019 Mercer Capital wwwmercercapitalcom 9
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
TruckingLoad-to-Truck RatioThe load-to-truck ratio is calculated
by dividing the total number of loads for
shipment by the total number of trucks
available As a result the load-to-truck
ratio can signal a shortage or excess
of capacity which in turn influences
changes in freight An increase in the
ratio (ie a higher number of loads
relative to the level of available trucks)
is typically associated with shipping
rate increases While economic factors
typically push supply and demand
compression or expansion that occurs
faster in the shipping industry can
accelerate movements faster than the
overall economy
The load-to-truck ratio declined sharply
in the third quarter 2019 for all three
types of trucks tracked by DAT The van
ratio fell 24 the reefer ratio fell 13
and the flatbed ratio fell 31
Dry Van Load-to-Truck
Reefer Load-to-Truck
Flatbed Load-to-Truck
Source DAT
copy 2019 Mercer Capital wwwmercercapitalcom 10
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Rail amp Intermodal
Rail Freight Intermodal Traffic
Rail Freight Intermodal TrafficIntermodal shipments increased in July 2019 relative to June 2019 with intermodal freight volumes up 15 from June
However on an annual basis rail carloads declined 51 from August 2018 American Association of Railroads Senior Vice
President of Policy and Economics John Gray indicated that the year-over-year decline was due largely to reduced traffic in
the three largest rail segments ndash coal grain and intermodal Low natural gas prices cooled demand for coal and ongoing
trade concerns with China depressed the grain and international markets (50 of rail intermodal involves international
shipments)
copy 2019 Mercer Capital wwwmercercapitalcom 11
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Rail amp IntermodalCass Intermodal IndexThe Cass Intermodal Index measures
changes in per-mile US domestic
intermodal costs The index in Sep-
tember 2019 was 1423 relatively un-
changed from 1420 in June 2019 and
a 01 increase on a year-to-year ba-
sis Cass indicates that declining fuel
costs once again impacted the index
value
Cass Intermodal Index Historical Trend
Cass Intermodal Index Annual Comparison
copy 2019 Mercer Capital wwwmercercapitalcom 12
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
MampA ActivityFeatured Transactions
Genesee amp Wyoming Inc (NYSEGWR) acquired by
Brookfield Asset Management
EVO Transportation amp Energy Services Inc
acquired multiple transportation companies
Brookfield Asset Management acquired GWR for
$95 billion on August 26 at a multiple of 41x sales
and 141x EBITDA GWR is an owner and operator
of freight railroads in the US Canada Britain and
Europe GWR had grown rapidly in part through
acquisition of short-line railroads and faced increased
maintenance costs
EVO Transportation closed on at least three acquisi-
tions during the third quarter EVO Transportation ac-
quired Courtlandt and Brown Enterprises LLCFinkle
Transport Inc for $120 million and Ritter Transporta-
tion for $137 million EVO also acquired an LLC that
owns vehicles for leasing
Senior management team purchases
Premium Transportation Logistics
Heartland Express Inc (HTLD) acquired
Millis Transfer Inc
The senior management team of Premium
Transportation Logistics acquired PTL from its parent
company PTL is a expedited ground shipping
company The deal closed in July 2019
Heartland Express acquired Millis Transfer for a total
purchase price of $150 million at a multiple of 10x
revenue Millis is a regional dry van truckload company
based in Iowa Millis was previously family-owned
and operated and Heartland intends to retain the
management team
copy 2019 Mercer Capital wwwmercercapitalcom 13
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Select Transactions
Date Announced
Deal Status
Total Deal Value
Deal Value to
Target Buyer Sales EBITDA
TruckingBWP Transport Inc AampR Logistics Inc 7119 Closed - - -
Carlisle Carrier Corporation Cowan Systems LLC 71119 Closed - - -
Logicorp Enterprises LLC Outwest Express LLC 72219 Closed - - -
Courtlandt and Brown Enterprises LLCFinkle Transport IncEVO Transportation amp Energy Services Inc (OTCP-KEVOA)
72519 Closed $120 - -
Piston Tank Corporation TFI International Inc (TSXTFII) 72919 Closed - - -
Wayne T Fellows IncFellows Truck Brokers Inc Kottke Trucking Inc 73119 Closed - - -
Millis Transfer Inc Heartland Express Inc (NasdaqGSHTLD) 82619 Closed $1500 10x -
DR Graham Trucking LLC Energy amp Environmental Services Inc 82719 Closed - - -
Schindewolf Express Inc Quest Liner Inc 82019 Closed - - -
RailGenesee amp Wyoming Inc (NYSEGWR) DJP XX LLC (Brookfield Asset Management) 7119 Announced $94789 41x 141x
Winchester amp Western Railroad Company Inc OmniTRAX Inc 72619 Closed $1050 - -
Patriot Rail Company LLC First State Investments (Us) Llc MidRail LLC 82619 Announced - - -
The Cleveland Commercial Railroad Company LLC OmniTRAX Inc 82719 Announced - - -
Massena Rail Line of CSX Corporation Canadian National Railway Company (TSXCNR) 82919 Announced - - -
Arrow Material Services LLC Precision Terminal Logistics LLC 9619 Closed - - -
Source SampP Global Market Intelligencein USD millions
copy 2019 Mercer Capital wwwmercercapitalcom 14
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Date Announced
Deal Status
Total Deal Value
Deal Value to
Target Buyer Sales EBITDA
MarineNone during third quarter 2019
Air Freight amp LogisticsPremium Transportation Logistics LLC Senior Management 7119 Closed - - -
Argus Carriers LtdInter-Urban Delivery Service Ltd Mullen Group Ltd (TSXMTL) 7219 Closed - - -
Worldwide Perishables Canada Co Kuehne + Nagel International AG (SWXKNIN) 72419 Closed - - -
Unitrans International Corporation AIT Worldwide Logistics Inc 8519 Closed - - -
GTO Global Logistics Inc Air Menzies International Limited 81219 Closed $23 - -
Ritter Transportation Systems IncRitter Transport IncEVO Transportation amp Energy Services Inc (OTCP-KEVOA)
92019 Closed $137 - -
Source SampP Global Market Intelligencein USD millions
Select Transactions (continued)
copy 2019 Mercer Capital wwwmercercapitalcom 15
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Public Company Performance
Monthly Median TEVEBITDA Multiples (as of Sept 30 2019)
copy 2019 Mercer Capital wwwmercercapitalcom 16
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
TruckloadJB Hunt Transport Services Inc JBHT $11065 21 $13303 11 830 $9033 13 15x 115x 257x 101x 206x
TFI International Inc TFII $3064 -11 $4222 40 660 $3924 14 11x 77x 107x 66x 103x
Ryder System Inc R $5177 11 $10550 74 337 $8905 27 12x 44x 213x 48x 491x
Knight-Swift Transportation Holdings Inc KNX $3630 4 $7269 15 399 $5042 19 14x 75x 157x 77x 162x
Landstar System Inc LSTR $11258 1 $4327 -3 1429 $4277 8 10x 120x 181x 124x 191x
Werner Enterprises Inc WERN $3530 19 $2794 13 674 $2488 19 11x 59x 141x 60x 151x
Schneider National Inc SNDR $2172 14 $3927 2 584 $4912 13 08x 61x 219x 65x 169x
Heartland Express Inc HTLD $2151 19 $1558 -13 519 $577 29 27x 92x 213x 77x 216x
Daseke Inc DSKE $250 -31 $968 77 8 $1781 9 05x 61x nm 59x nm
Marten Transport Ltd MRTN $2078 4 $1054 -8 562 $830 19 13x 65x 186x 61x 188x
Universal Logistics Holdings Inc ULH $2328 14 $1071 41 772 $1522 11 07x 62x 168x 65x 97x
Covenant Transportation Group Inc CVTI $1644 12 $598 49 276 $934 13 06x 51x 127x 61x 216x
PAM Transportation Services Inc PTSI $5911 -5 $539 37 581 $529 19 10x 55x 123x 53x 117x
USA Truck Inc USAK $803 -21 $259 74 283 $540 9 05x 54x 123x 58x 824x
Titanium Transportation Group Inc TTR $098 -3 $98 63 240 $126 9 08x 86x 173x 70x 290x
Patriot Transportation Holding Inc PATI $1790 5 $39 -52 24 $111 8 04x 44x 273x nm nm
Median 5 26 130 10x 61x 173x 65x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 17
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Less-Than-TruckloadOld Dominion Freight Line Inc ODFL $16997 14 $13483 -1 1448 $4127 27 33x 122x 216x 124x 220x
Saia Inc SAIA $9370 45 $2657 9 791 $1750 16 15x 97x 204x 96x 213x
ArcBest Corporation ARCB $3045 8 $833 7 356 $3045 7 03x 42x 128x 41x 119x
YRC Worldwide Inc YRCW $302 -25 $1202 91 138 $4959 4 02x 62x nm 59x nm
Roadrunner Transportation Systems Inc RRTS $1036 8 $778 50 -708 $1999 -2 04x -248x nm -344x nm
Median 8 9 7 04x 62x 204x 59x 213x
Air FreightAtlas Air Worldwide Holdings Inc AAWW $2523 -43 $3520 81 228 $2757 18 13x 70x 20x 74x 56x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Cargojet Inc CJT $7110 11 $1459 35 409 $362 25 40x 164x 565x 125x 674x
Median -3 44 21 17x 96x 163x 97x 180x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 18
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
MarineKirby Corporation KEX $8216 4 $6663 26 307 $2904 18 23x 129x 427x 132x 283x
Triton International Limited TRTN $3384 3 $9951 73 453 $1420 93 70x 75x 74x 80x 74x
Matson Inc MATX $3751 -3 $2674 40 269 $2227 9 12x 128x 183x 99x 194x
Seaspan Corporation SSW $1063 8 $6540 65 380 $1138 63 57x 91x 53x 92x 135x
Textainer Group Holdings Limited TGH $991 -2 $3963 86 286 $706 67 56x 84x 142x 85x 101x
Costamare Inc CMRE $607 18 $2328 69 410 $460 64 51x 79x 86x 71x 70x
Eagle Bulk Shipping Inc EGLE $438 -17 $653 49 139 $308 17 21x 124x nm 113x nm
Navios Maritime Partners LP NMM $1773 31 $650 69 230 $216 47 30x 64x 1495x 57x 67x
Pangaea Logistics Solutions Ltd PANL $321 -4 $350 59 424 $384 13 09x 70x 92x 69x 68x
Global Ship Lease Inc GSL $765 4 $918 86 638 $244 58 38x 65x nm 58x 48x
Sino-Global Shipping America Ltd SINO $076 7 $4 -197 -1710 $47 -8 01x -11x nm nm nm
Median 4 65 30x 79x 117x 83x 74x
RailroadsUnion Pacific Corporation UNP $16198 -4 $140317 19 891 $22253 49 63x 129x 188x 129x 190x
Canadian National Railway Company CNR $8986 -3 $74929 14 915 $11437 51 66x 129x 190x 135x 201x
CSX Corporation CSX $6927 -10 $69900 21 833 $12195 52 57x 109x 162x 109x 165x
Norfolk Southern Corporation NSC $17966 -10 $59393 20 706 $11502 46 52x 112x 172x 115x 177x
Canadian Pacific Railway Limited CP $22240 -6 $37519 18 1002 $5838 54 64x 119x 176x 128x 181x
Kansas City Southern KSU $13301 9 $16407 19 670 $2831 49 58x 119x 232x 117x 191x
Genesee amp Wyoming Inc GWR $11051 11 $9310 32 308 $2289 29 41x 142x 296x 139x 267x
Median -4 19 58x 119x 188x 128x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 19
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Logistics amp IntermodalUnited Parcel Service Inc UPS $11982 16 $124013 17 704 $73374 11 17x 157x 206x 118x 159x
FedEx Corporation FDX $14557 -11 $68386 44 155 $69200 13 10x 78x 104x 81x 95x
Expeditors International of Washington Inc EXPD $7429 -2 $11979 -6 1426 $8366 10 14x 140x 201x 141x 210x
XPO Logistics Inc XPO $7157 24 $14173 53 407 $16901 9 08x 89x 164x 85x 180x
CH Robinson Worldwide Inc CHRW $8478 1 $12647 9 1244 $15654 6 08x 127x 173x 134x 191x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Hub Group Inc HUBG $4650 11 $1773 11 542 $3786 7 05x 65x 124x 66x 137x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Echo Global Logistics Inc ECHO $2265 9 $794 22 308 $2236 3 04x 118x 304x 97x 156x
Radiant Logistics Inc RLGT $517 -16 $288 11 502 $920 4 03x 76x 154x 71x 128x
Median 4 14 09x 103x 168x 91x 158x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
Mercer CapitalTransportation amp Logistics Industry Services
Contact Us
Copyright copy 2019 Mercer Capital Management Inc All rights reserved It is illegal under Federal law to reproduce this publication or any portion of its contents without the publisherrsquos permission Media quotations with source attribution are encouraged
Reporters requesting additional information or editorial comment should contact Barbara Walters Price at 9016852120 Mercer Capitalrsquos Industry Focus is published quarterly and does not constitute legal or financial consulting advice It is offered as an
information service to our clients and friends Those interested in specific guidance for legal or accounting matters should seek competent professional advice Inquiries to discuss specific valuation matters are welcomed To add your name to our mailing
list to receive this complimentary publication visit our web site at wwwmercercapitalcom
Mercer Capital provides valuation and transaction advisory services to the transportation amp logistics industry
Industry Segments
Mercer Capital serves the following industry
segments
bull Trucking
bull Air Freight
bull Marine
bull Railroads
bull Logistics amp Intermodal
Contact a Mercer Capital professional to discuss your needs in confidence
Timothy R Lee ASA
9013229740
leetmercercapitalcom
Nicholas J Heinz ASA
9016852120
heinznmercercapitalcom
Scott A Womack ASA MAFF
6153450234
womacksmercercapitalcom
Samantha L Albert ASA
9013229702
albertsmercercapitalcom
wwwmercercapitalcom
BUSINESS VALUATION amp FINANCIAL ADVISORY SERVICES
Services Provided
bull Valuation of transportation and logistics companies
bull Transaction advisory for acquisitions and
divestitures
bull Valuations for purchase accounting and impairment
testing
bull Fairness and solvency opinions
bull Litigation support for economic damages and
valuation and shareholder disputes
Mercer Capitalwwwmercercapitalcom
copy 2019 Mercer Capital wwwmercercapitalcom 5
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
IndustryMacro TrendsShipmentsShipments in the third quarter of 2019 increased relative to the second quarter but continued to lag behind the level recorded at this point last year After an exceptionally strong year in 2018 the index began declining on a year-over-year basis in December 2018 which has continued through the second quarter The Cass Report notes that decreases in the shipments index beginning in the second quarter of 2019 signal an economic contraction Increases and declines in the level of freight shipments are frequent precursors to economic activity signaling economic expansion and contraction respectively On a year-over-year basis the Cass Freight
Shipment Index declined 34
Shipments
copy 2019 Mercer Capital wwwmercercapitalcom 6
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Industry Macro Trends
ExpendituresThe Expenditures Index hit 2854 in
September 2019 an increase over
August 2019 but 22 lower than
its level in June 2019 The rate of
expenditure growth has slowed in recent
months and has been negative on a
year-over-year basis since July 2019
The decreasing cost of diesel fuel has
contributed to the Expenditures index
decline however The Cass Report
notes that spot pricing has fallen
significantly over the past fifteen months
and capacity has continued to increase
Expenditures
copy 2019 Mercer Capital wwwmercercapitalcom 7
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Trucking
Truck Tonnage (seasonally adjusted)
Truck TonnageThe Truck Tonnage Index reached a high level in July 2019 at 1193 compared to a low of 748 in April 2009 during the Great
Recession The July increase is the seventh consecutive month of increase and is 11 higher than June 2019 and 51
higher than July 2018 The American Trucking Association estimates that freight tonnage will grow 26 from 2019 to 2030
and industry revenues are expected to increase by over 50
copy 2019 Mercer Capital wwwmercercapitalcom 8
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
TruckingSpot vs Contract RatesThe Spot vs Contract Rates chart
depicts monthly national average line
haul rates and fuel surcharges from
DAT Shippers enter contracts that lock
in a static contract rate for a period of
time Spot rates on the other hand are
one-time shipping quotes for a specific
transaction or series of transactions
Excess capacity has contributed to
spot rates below contract rates in
recent months and a larger than normal
divergence between the two rates
Reefer flatbed and dry van spot rates
all declined relative to June 2019 Reefer
spot rates decreased 10cent to $216 in
September 2019 from $226 in June
2019 Dry van spot rates fell 5cent to $184
from $189 Flatbed rates decreased 9cent
to $215 from $224
Spot vs Contract Rates
copy 2019 Mercer Capital wwwmercercapitalcom 9
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
TruckingLoad-to-Truck RatioThe load-to-truck ratio is calculated
by dividing the total number of loads for
shipment by the total number of trucks
available As a result the load-to-truck
ratio can signal a shortage or excess
of capacity which in turn influences
changes in freight An increase in the
ratio (ie a higher number of loads
relative to the level of available trucks)
is typically associated with shipping
rate increases While economic factors
typically push supply and demand
compression or expansion that occurs
faster in the shipping industry can
accelerate movements faster than the
overall economy
The load-to-truck ratio declined sharply
in the third quarter 2019 for all three
types of trucks tracked by DAT The van
ratio fell 24 the reefer ratio fell 13
and the flatbed ratio fell 31
Dry Van Load-to-Truck
Reefer Load-to-Truck
Flatbed Load-to-Truck
Source DAT
copy 2019 Mercer Capital wwwmercercapitalcom 10
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Rail amp Intermodal
Rail Freight Intermodal Traffic
Rail Freight Intermodal TrafficIntermodal shipments increased in July 2019 relative to June 2019 with intermodal freight volumes up 15 from June
However on an annual basis rail carloads declined 51 from August 2018 American Association of Railroads Senior Vice
President of Policy and Economics John Gray indicated that the year-over-year decline was due largely to reduced traffic in
the three largest rail segments ndash coal grain and intermodal Low natural gas prices cooled demand for coal and ongoing
trade concerns with China depressed the grain and international markets (50 of rail intermodal involves international
shipments)
copy 2019 Mercer Capital wwwmercercapitalcom 11
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Rail amp IntermodalCass Intermodal IndexThe Cass Intermodal Index measures
changes in per-mile US domestic
intermodal costs The index in Sep-
tember 2019 was 1423 relatively un-
changed from 1420 in June 2019 and
a 01 increase on a year-to-year ba-
sis Cass indicates that declining fuel
costs once again impacted the index
value
Cass Intermodal Index Historical Trend
Cass Intermodal Index Annual Comparison
copy 2019 Mercer Capital wwwmercercapitalcom 12
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
MampA ActivityFeatured Transactions
Genesee amp Wyoming Inc (NYSEGWR) acquired by
Brookfield Asset Management
EVO Transportation amp Energy Services Inc
acquired multiple transportation companies
Brookfield Asset Management acquired GWR for
$95 billion on August 26 at a multiple of 41x sales
and 141x EBITDA GWR is an owner and operator
of freight railroads in the US Canada Britain and
Europe GWR had grown rapidly in part through
acquisition of short-line railroads and faced increased
maintenance costs
EVO Transportation closed on at least three acquisi-
tions during the third quarter EVO Transportation ac-
quired Courtlandt and Brown Enterprises LLCFinkle
Transport Inc for $120 million and Ritter Transporta-
tion for $137 million EVO also acquired an LLC that
owns vehicles for leasing
Senior management team purchases
Premium Transportation Logistics
Heartland Express Inc (HTLD) acquired
Millis Transfer Inc
The senior management team of Premium
Transportation Logistics acquired PTL from its parent
company PTL is a expedited ground shipping
company The deal closed in July 2019
Heartland Express acquired Millis Transfer for a total
purchase price of $150 million at a multiple of 10x
revenue Millis is a regional dry van truckload company
based in Iowa Millis was previously family-owned
and operated and Heartland intends to retain the
management team
copy 2019 Mercer Capital wwwmercercapitalcom 13
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Select Transactions
Date Announced
Deal Status
Total Deal Value
Deal Value to
Target Buyer Sales EBITDA
TruckingBWP Transport Inc AampR Logistics Inc 7119 Closed - - -
Carlisle Carrier Corporation Cowan Systems LLC 71119 Closed - - -
Logicorp Enterprises LLC Outwest Express LLC 72219 Closed - - -
Courtlandt and Brown Enterprises LLCFinkle Transport IncEVO Transportation amp Energy Services Inc (OTCP-KEVOA)
72519 Closed $120 - -
Piston Tank Corporation TFI International Inc (TSXTFII) 72919 Closed - - -
Wayne T Fellows IncFellows Truck Brokers Inc Kottke Trucking Inc 73119 Closed - - -
Millis Transfer Inc Heartland Express Inc (NasdaqGSHTLD) 82619 Closed $1500 10x -
DR Graham Trucking LLC Energy amp Environmental Services Inc 82719 Closed - - -
Schindewolf Express Inc Quest Liner Inc 82019 Closed - - -
RailGenesee amp Wyoming Inc (NYSEGWR) DJP XX LLC (Brookfield Asset Management) 7119 Announced $94789 41x 141x
Winchester amp Western Railroad Company Inc OmniTRAX Inc 72619 Closed $1050 - -
Patriot Rail Company LLC First State Investments (Us) Llc MidRail LLC 82619 Announced - - -
The Cleveland Commercial Railroad Company LLC OmniTRAX Inc 82719 Announced - - -
Massena Rail Line of CSX Corporation Canadian National Railway Company (TSXCNR) 82919 Announced - - -
Arrow Material Services LLC Precision Terminal Logistics LLC 9619 Closed - - -
Source SampP Global Market Intelligencein USD millions
copy 2019 Mercer Capital wwwmercercapitalcom 14
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Date Announced
Deal Status
Total Deal Value
Deal Value to
Target Buyer Sales EBITDA
MarineNone during third quarter 2019
Air Freight amp LogisticsPremium Transportation Logistics LLC Senior Management 7119 Closed - - -
Argus Carriers LtdInter-Urban Delivery Service Ltd Mullen Group Ltd (TSXMTL) 7219 Closed - - -
Worldwide Perishables Canada Co Kuehne + Nagel International AG (SWXKNIN) 72419 Closed - - -
Unitrans International Corporation AIT Worldwide Logistics Inc 8519 Closed - - -
GTO Global Logistics Inc Air Menzies International Limited 81219 Closed $23 - -
Ritter Transportation Systems IncRitter Transport IncEVO Transportation amp Energy Services Inc (OTCP-KEVOA)
92019 Closed $137 - -
Source SampP Global Market Intelligencein USD millions
Select Transactions (continued)
copy 2019 Mercer Capital wwwmercercapitalcom 15
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Public Company Performance
Monthly Median TEVEBITDA Multiples (as of Sept 30 2019)
copy 2019 Mercer Capital wwwmercercapitalcom 16
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
TruckloadJB Hunt Transport Services Inc JBHT $11065 21 $13303 11 830 $9033 13 15x 115x 257x 101x 206x
TFI International Inc TFII $3064 -11 $4222 40 660 $3924 14 11x 77x 107x 66x 103x
Ryder System Inc R $5177 11 $10550 74 337 $8905 27 12x 44x 213x 48x 491x
Knight-Swift Transportation Holdings Inc KNX $3630 4 $7269 15 399 $5042 19 14x 75x 157x 77x 162x
Landstar System Inc LSTR $11258 1 $4327 -3 1429 $4277 8 10x 120x 181x 124x 191x
Werner Enterprises Inc WERN $3530 19 $2794 13 674 $2488 19 11x 59x 141x 60x 151x
Schneider National Inc SNDR $2172 14 $3927 2 584 $4912 13 08x 61x 219x 65x 169x
Heartland Express Inc HTLD $2151 19 $1558 -13 519 $577 29 27x 92x 213x 77x 216x
Daseke Inc DSKE $250 -31 $968 77 8 $1781 9 05x 61x nm 59x nm
Marten Transport Ltd MRTN $2078 4 $1054 -8 562 $830 19 13x 65x 186x 61x 188x
Universal Logistics Holdings Inc ULH $2328 14 $1071 41 772 $1522 11 07x 62x 168x 65x 97x
Covenant Transportation Group Inc CVTI $1644 12 $598 49 276 $934 13 06x 51x 127x 61x 216x
PAM Transportation Services Inc PTSI $5911 -5 $539 37 581 $529 19 10x 55x 123x 53x 117x
USA Truck Inc USAK $803 -21 $259 74 283 $540 9 05x 54x 123x 58x 824x
Titanium Transportation Group Inc TTR $098 -3 $98 63 240 $126 9 08x 86x 173x 70x 290x
Patriot Transportation Holding Inc PATI $1790 5 $39 -52 24 $111 8 04x 44x 273x nm nm
Median 5 26 130 10x 61x 173x 65x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 17
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Less-Than-TruckloadOld Dominion Freight Line Inc ODFL $16997 14 $13483 -1 1448 $4127 27 33x 122x 216x 124x 220x
Saia Inc SAIA $9370 45 $2657 9 791 $1750 16 15x 97x 204x 96x 213x
ArcBest Corporation ARCB $3045 8 $833 7 356 $3045 7 03x 42x 128x 41x 119x
YRC Worldwide Inc YRCW $302 -25 $1202 91 138 $4959 4 02x 62x nm 59x nm
Roadrunner Transportation Systems Inc RRTS $1036 8 $778 50 -708 $1999 -2 04x -248x nm -344x nm
Median 8 9 7 04x 62x 204x 59x 213x
Air FreightAtlas Air Worldwide Holdings Inc AAWW $2523 -43 $3520 81 228 $2757 18 13x 70x 20x 74x 56x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Cargojet Inc CJT $7110 11 $1459 35 409 $362 25 40x 164x 565x 125x 674x
Median -3 44 21 17x 96x 163x 97x 180x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 18
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
MarineKirby Corporation KEX $8216 4 $6663 26 307 $2904 18 23x 129x 427x 132x 283x
Triton International Limited TRTN $3384 3 $9951 73 453 $1420 93 70x 75x 74x 80x 74x
Matson Inc MATX $3751 -3 $2674 40 269 $2227 9 12x 128x 183x 99x 194x
Seaspan Corporation SSW $1063 8 $6540 65 380 $1138 63 57x 91x 53x 92x 135x
Textainer Group Holdings Limited TGH $991 -2 $3963 86 286 $706 67 56x 84x 142x 85x 101x
Costamare Inc CMRE $607 18 $2328 69 410 $460 64 51x 79x 86x 71x 70x
Eagle Bulk Shipping Inc EGLE $438 -17 $653 49 139 $308 17 21x 124x nm 113x nm
Navios Maritime Partners LP NMM $1773 31 $650 69 230 $216 47 30x 64x 1495x 57x 67x
Pangaea Logistics Solutions Ltd PANL $321 -4 $350 59 424 $384 13 09x 70x 92x 69x 68x
Global Ship Lease Inc GSL $765 4 $918 86 638 $244 58 38x 65x nm 58x 48x
Sino-Global Shipping America Ltd SINO $076 7 $4 -197 -1710 $47 -8 01x -11x nm nm nm
Median 4 65 30x 79x 117x 83x 74x
RailroadsUnion Pacific Corporation UNP $16198 -4 $140317 19 891 $22253 49 63x 129x 188x 129x 190x
Canadian National Railway Company CNR $8986 -3 $74929 14 915 $11437 51 66x 129x 190x 135x 201x
CSX Corporation CSX $6927 -10 $69900 21 833 $12195 52 57x 109x 162x 109x 165x
Norfolk Southern Corporation NSC $17966 -10 $59393 20 706 $11502 46 52x 112x 172x 115x 177x
Canadian Pacific Railway Limited CP $22240 -6 $37519 18 1002 $5838 54 64x 119x 176x 128x 181x
Kansas City Southern KSU $13301 9 $16407 19 670 $2831 49 58x 119x 232x 117x 191x
Genesee amp Wyoming Inc GWR $11051 11 $9310 32 308 $2289 29 41x 142x 296x 139x 267x
Median -4 19 58x 119x 188x 128x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 19
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Logistics amp IntermodalUnited Parcel Service Inc UPS $11982 16 $124013 17 704 $73374 11 17x 157x 206x 118x 159x
FedEx Corporation FDX $14557 -11 $68386 44 155 $69200 13 10x 78x 104x 81x 95x
Expeditors International of Washington Inc EXPD $7429 -2 $11979 -6 1426 $8366 10 14x 140x 201x 141x 210x
XPO Logistics Inc XPO $7157 24 $14173 53 407 $16901 9 08x 89x 164x 85x 180x
CH Robinson Worldwide Inc CHRW $8478 1 $12647 9 1244 $15654 6 08x 127x 173x 134x 191x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Hub Group Inc HUBG $4650 11 $1773 11 542 $3786 7 05x 65x 124x 66x 137x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Echo Global Logistics Inc ECHO $2265 9 $794 22 308 $2236 3 04x 118x 304x 97x 156x
Radiant Logistics Inc RLGT $517 -16 $288 11 502 $920 4 03x 76x 154x 71x 128x
Median 4 14 09x 103x 168x 91x 158x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
Mercer CapitalTransportation amp Logistics Industry Services
Contact Us
Copyright copy 2019 Mercer Capital Management Inc All rights reserved It is illegal under Federal law to reproduce this publication or any portion of its contents without the publisherrsquos permission Media quotations with source attribution are encouraged
Reporters requesting additional information or editorial comment should contact Barbara Walters Price at 9016852120 Mercer Capitalrsquos Industry Focus is published quarterly and does not constitute legal or financial consulting advice It is offered as an
information service to our clients and friends Those interested in specific guidance for legal or accounting matters should seek competent professional advice Inquiries to discuss specific valuation matters are welcomed To add your name to our mailing
list to receive this complimentary publication visit our web site at wwwmercercapitalcom
Mercer Capital provides valuation and transaction advisory services to the transportation amp logistics industry
Industry Segments
Mercer Capital serves the following industry
segments
bull Trucking
bull Air Freight
bull Marine
bull Railroads
bull Logistics amp Intermodal
Contact a Mercer Capital professional to discuss your needs in confidence
Timothy R Lee ASA
9013229740
leetmercercapitalcom
Nicholas J Heinz ASA
9016852120
heinznmercercapitalcom
Scott A Womack ASA MAFF
6153450234
womacksmercercapitalcom
Samantha L Albert ASA
9013229702
albertsmercercapitalcom
wwwmercercapitalcom
BUSINESS VALUATION amp FINANCIAL ADVISORY SERVICES
Services Provided
bull Valuation of transportation and logistics companies
bull Transaction advisory for acquisitions and
divestitures
bull Valuations for purchase accounting and impairment
testing
bull Fairness and solvency opinions
bull Litigation support for economic damages and
valuation and shareholder disputes
Mercer Capitalwwwmercercapitalcom
copy 2019 Mercer Capital wwwmercercapitalcom 6
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Industry Macro Trends
ExpendituresThe Expenditures Index hit 2854 in
September 2019 an increase over
August 2019 but 22 lower than
its level in June 2019 The rate of
expenditure growth has slowed in recent
months and has been negative on a
year-over-year basis since July 2019
The decreasing cost of diesel fuel has
contributed to the Expenditures index
decline however The Cass Report
notes that spot pricing has fallen
significantly over the past fifteen months
and capacity has continued to increase
Expenditures
copy 2019 Mercer Capital wwwmercercapitalcom 7
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Trucking
Truck Tonnage (seasonally adjusted)
Truck TonnageThe Truck Tonnage Index reached a high level in July 2019 at 1193 compared to a low of 748 in April 2009 during the Great
Recession The July increase is the seventh consecutive month of increase and is 11 higher than June 2019 and 51
higher than July 2018 The American Trucking Association estimates that freight tonnage will grow 26 from 2019 to 2030
and industry revenues are expected to increase by over 50
copy 2019 Mercer Capital wwwmercercapitalcom 8
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
TruckingSpot vs Contract RatesThe Spot vs Contract Rates chart
depicts monthly national average line
haul rates and fuel surcharges from
DAT Shippers enter contracts that lock
in a static contract rate for a period of
time Spot rates on the other hand are
one-time shipping quotes for a specific
transaction or series of transactions
Excess capacity has contributed to
spot rates below contract rates in
recent months and a larger than normal
divergence between the two rates
Reefer flatbed and dry van spot rates
all declined relative to June 2019 Reefer
spot rates decreased 10cent to $216 in
September 2019 from $226 in June
2019 Dry van spot rates fell 5cent to $184
from $189 Flatbed rates decreased 9cent
to $215 from $224
Spot vs Contract Rates
copy 2019 Mercer Capital wwwmercercapitalcom 9
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
TruckingLoad-to-Truck RatioThe load-to-truck ratio is calculated
by dividing the total number of loads for
shipment by the total number of trucks
available As a result the load-to-truck
ratio can signal a shortage or excess
of capacity which in turn influences
changes in freight An increase in the
ratio (ie a higher number of loads
relative to the level of available trucks)
is typically associated with shipping
rate increases While economic factors
typically push supply and demand
compression or expansion that occurs
faster in the shipping industry can
accelerate movements faster than the
overall economy
The load-to-truck ratio declined sharply
in the third quarter 2019 for all three
types of trucks tracked by DAT The van
ratio fell 24 the reefer ratio fell 13
and the flatbed ratio fell 31
Dry Van Load-to-Truck
Reefer Load-to-Truck
Flatbed Load-to-Truck
Source DAT
copy 2019 Mercer Capital wwwmercercapitalcom 10
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Rail amp Intermodal
Rail Freight Intermodal Traffic
Rail Freight Intermodal TrafficIntermodal shipments increased in July 2019 relative to June 2019 with intermodal freight volumes up 15 from June
However on an annual basis rail carloads declined 51 from August 2018 American Association of Railroads Senior Vice
President of Policy and Economics John Gray indicated that the year-over-year decline was due largely to reduced traffic in
the three largest rail segments ndash coal grain and intermodal Low natural gas prices cooled demand for coal and ongoing
trade concerns with China depressed the grain and international markets (50 of rail intermodal involves international
shipments)
copy 2019 Mercer Capital wwwmercercapitalcom 11
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Rail amp IntermodalCass Intermodal IndexThe Cass Intermodal Index measures
changes in per-mile US domestic
intermodal costs The index in Sep-
tember 2019 was 1423 relatively un-
changed from 1420 in June 2019 and
a 01 increase on a year-to-year ba-
sis Cass indicates that declining fuel
costs once again impacted the index
value
Cass Intermodal Index Historical Trend
Cass Intermodal Index Annual Comparison
copy 2019 Mercer Capital wwwmercercapitalcom 12
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
MampA ActivityFeatured Transactions
Genesee amp Wyoming Inc (NYSEGWR) acquired by
Brookfield Asset Management
EVO Transportation amp Energy Services Inc
acquired multiple transportation companies
Brookfield Asset Management acquired GWR for
$95 billion on August 26 at a multiple of 41x sales
and 141x EBITDA GWR is an owner and operator
of freight railroads in the US Canada Britain and
Europe GWR had grown rapidly in part through
acquisition of short-line railroads and faced increased
maintenance costs
EVO Transportation closed on at least three acquisi-
tions during the third quarter EVO Transportation ac-
quired Courtlandt and Brown Enterprises LLCFinkle
Transport Inc for $120 million and Ritter Transporta-
tion for $137 million EVO also acquired an LLC that
owns vehicles for leasing
Senior management team purchases
Premium Transportation Logistics
Heartland Express Inc (HTLD) acquired
Millis Transfer Inc
The senior management team of Premium
Transportation Logistics acquired PTL from its parent
company PTL is a expedited ground shipping
company The deal closed in July 2019
Heartland Express acquired Millis Transfer for a total
purchase price of $150 million at a multiple of 10x
revenue Millis is a regional dry van truckload company
based in Iowa Millis was previously family-owned
and operated and Heartland intends to retain the
management team
copy 2019 Mercer Capital wwwmercercapitalcom 13
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Select Transactions
Date Announced
Deal Status
Total Deal Value
Deal Value to
Target Buyer Sales EBITDA
TruckingBWP Transport Inc AampR Logistics Inc 7119 Closed - - -
Carlisle Carrier Corporation Cowan Systems LLC 71119 Closed - - -
Logicorp Enterprises LLC Outwest Express LLC 72219 Closed - - -
Courtlandt and Brown Enterprises LLCFinkle Transport IncEVO Transportation amp Energy Services Inc (OTCP-KEVOA)
72519 Closed $120 - -
Piston Tank Corporation TFI International Inc (TSXTFII) 72919 Closed - - -
Wayne T Fellows IncFellows Truck Brokers Inc Kottke Trucking Inc 73119 Closed - - -
Millis Transfer Inc Heartland Express Inc (NasdaqGSHTLD) 82619 Closed $1500 10x -
DR Graham Trucking LLC Energy amp Environmental Services Inc 82719 Closed - - -
Schindewolf Express Inc Quest Liner Inc 82019 Closed - - -
RailGenesee amp Wyoming Inc (NYSEGWR) DJP XX LLC (Brookfield Asset Management) 7119 Announced $94789 41x 141x
Winchester amp Western Railroad Company Inc OmniTRAX Inc 72619 Closed $1050 - -
Patriot Rail Company LLC First State Investments (Us) Llc MidRail LLC 82619 Announced - - -
The Cleveland Commercial Railroad Company LLC OmniTRAX Inc 82719 Announced - - -
Massena Rail Line of CSX Corporation Canadian National Railway Company (TSXCNR) 82919 Announced - - -
Arrow Material Services LLC Precision Terminal Logistics LLC 9619 Closed - - -
Source SampP Global Market Intelligencein USD millions
copy 2019 Mercer Capital wwwmercercapitalcom 14
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Date Announced
Deal Status
Total Deal Value
Deal Value to
Target Buyer Sales EBITDA
MarineNone during third quarter 2019
Air Freight amp LogisticsPremium Transportation Logistics LLC Senior Management 7119 Closed - - -
Argus Carriers LtdInter-Urban Delivery Service Ltd Mullen Group Ltd (TSXMTL) 7219 Closed - - -
Worldwide Perishables Canada Co Kuehne + Nagel International AG (SWXKNIN) 72419 Closed - - -
Unitrans International Corporation AIT Worldwide Logistics Inc 8519 Closed - - -
GTO Global Logistics Inc Air Menzies International Limited 81219 Closed $23 - -
Ritter Transportation Systems IncRitter Transport IncEVO Transportation amp Energy Services Inc (OTCP-KEVOA)
92019 Closed $137 - -
Source SampP Global Market Intelligencein USD millions
Select Transactions (continued)
copy 2019 Mercer Capital wwwmercercapitalcom 15
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Public Company Performance
Monthly Median TEVEBITDA Multiples (as of Sept 30 2019)
copy 2019 Mercer Capital wwwmercercapitalcom 16
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
TruckloadJB Hunt Transport Services Inc JBHT $11065 21 $13303 11 830 $9033 13 15x 115x 257x 101x 206x
TFI International Inc TFII $3064 -11 $4222 40 660 $3924 14 11x 77x 107x 66x 103x
Ryder System Inc R $5177 11 $10550 74 337 $8905 27 12x 44x 213x 48x 491x
Knight-Swift Transportation Holdings Inc KNX $3630 4 $7269 15 399 $5042 19 14x 75x 157x 77x 162x
Landstar System Inc LSTR $11258 1 $4327 -3 1429 $4277 8 10x 120x 181x 124x 191x
Werner Enterprises Inc WERN $3530 19 $2794 13 674 $2488 19 11x 59x 141x 60x 151x
Schneider National Inc SNDR $2172 14 $3927 2 584 $4912 13 08x 61x 219x 65x 169x
Heartland Express Inc HTLD $2151 19 $1558 -13 519 $577 29 27x 92x 213x 77x 216x
Daseke Inc DSKE $250 -31 $968 77 8 $1781 9 05x 61x nm 59x nm
Marten Transport Ltd MRTN $2078 4 $1054 -8 562 $830 19 13x 65x 186x 61x 188x
Universal Logistics Holdings Inc ULH $2328 14 $1071 41 772 $1522 11 07x 62x 168x 65x 97x
Covenant Transportation Group Inc CVTI $1644 12 $598 49 276 $934 13 06x 51x 127x 61x 216x
PAM Transportation Services Inc PTSI $5911 -5 $539 37 581 $529 19 10x 55x 123x 53x 117x
USA Truck Inc USAK $803 -21 $259 74 283 $540 9 05x 54x 123x 58x 824x
Titanium Transportation Group Inc TTR $098 -3 $98 63 240 $126 9 08x 86x 173x 70x 290x
Patriot Transportation Holding Inc PATI $1790 5 $39 -52 24 $111 8 04x 44x 273x nm nm
Median 5 26 130 10x 61x 173x 65x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 17
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Less-Than-TruckloadOld Dominion Freight Line Inc ODFL $16997 14 $13483 -1 1448 $4127 27 33x 122x 216x 124x 220x
Saia Inc SAIA $9370 45 $2657 9 791 $1750 16 15x 97x 204x 96x 213x
ArcBest Corporation ARCB $3045 8 $833 7 356 $3045 7 03x 42x 128x 41x 119x
YRC Worldwide Inc YRCW $302 -25 $1202 91 138 $4959 4 02x 62x nm 59x nm
Roadrunner Transportation Systems Inc RRTS $1036 8 $778 50 -708 $1999 -2 04x -248x nm -344x nm
Median 8 9 7 04x 62x 204x 59x 213x
Air FreightAtlas Air Worldwide Holdings Inc AAWW $2523 -43 $3520 81 228 $2757 18 13x 70x 20x 74x 56x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Cargojet Inc CJT $7110 11 $1459 35 409 $362 25 40x 164x 565x 125x 674x
Median -3 44 21 17x 96x 163x 97x 180x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 18
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
MarineKirby Corporation KEX $8216 4 $6663 26 307 $2904 18 23x 129x 427x 132x 283x
Triton International Limited TRTN $3384 3 $9951 73 453 $1420 93 70x 75x 74x 80x 74x
Matson Inc MATX $3751 -3 $2674 40 269 $2227 9 12x 128x 183x 99x 194x
Seaspan Corporation SSW $1063 8 $6540 65 380 $1138 63 57x 91x 53x 92x 135x
Textainer Group Holdings Limited TGH $991 -2 $3963 86 286 $706 67 56x 84x 142x 85x 101x
Costamare Inc CMRE $607 18 $2328 69 410 $460 64 51x 79x 86x 71x 70x
Eagle Bulk Shipping Inc EGLE $438 -17 $653 49 139 $308 17 21x 124x nm 113x nm
Navios Maritime Partners LP NMM $1773 31 $650 69 230 $216 47 30x 64x 1495x 57x 67x
Pangaea Logistics Solutions Ltd PANL $321 -4 $350 59 424 $384 13 09x 70x 92x 69x 68x
Global Ship Lease Inc GSL $765 4 $918 86 638 $244 58 38x 65x nm 58x 48x
Sino-Global Shipping America Ltd SINO $076 7 $4 -197 -1710 $47 -8 01x -11x nm nm nm
Median 4 65 30x 79x 117x 83x 74x
RailroadsUnion Pacific Corporation UNP $16198 -4 $140317 19 891 $22253 49 63x 129x 188x 129x 190x
Canadian National Railway Company CNR $8986 -3 $74929 14 915 $11437 51 66x 129x 190x 135x 201x
CSX Corporation CSX $6927 -10 $69900 21 833 $12195 52 57x 109x 162x 109x 165x
Norfolk Southern Corporation NSC $17966 -10 $59393 20 706 $11502 46 52x 112x 172x 115x 177x
Canadian Pacific Railway Limited CP $22240 -6 $37519 18 1002 $5838 54 64x 119x 176x 128x 181x
Kansas City Southern KSU $13301 9 $16407 19 670 $2831 49 58x 119x 232x 117x 191x
Genesee amp Wyoming Inc GWR $11051 11 $9310 32 308 $2289 29 41x 142x 296x 139x 267x
Median -4 19 58x 119x 188x 128x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 19
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Logistics amp IntermodalUnited Parcel Service Inc UPS $11982 16 $124013 17 704 $73374 11 17x 157x 206x 118x 159x
FedEx Corporation FDX $14557 -11 $68386 44 155 $69200 13 10x 78x 104x 81x 95x
Expeditors International of Washington Inc EXPD $7429 -2 $11979 -6 1426 $8366 10 14x 140x 201x 141x 210x
XPO Logistics Inc XPO $7157 24 $14173 53 407 $16901 9 08x 89x 164x 85x 180x
CH Robinson Worldwide Inc CHRW $8478 1 $12647 9 1244 $15654 6 08x 127x 173x 134x 191x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Hub Group Inc HUBG $4650 11 $1773 11 542 $3786 7 05x 65x 124x 66x 137x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Echo Global Logistics Inc ECHO $2265 9 $794 22 308 $2236 3 04x 118x 304x 97x 156x
Radiant Logistics Inc RLGT $517 -16 $288 11 502 $920 4 03x 76x 154x 71x 128x
Median 4 14 09x 103x 168x 91x 158x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
Mercer CapitalTransportation amp Logistics Industry Services
Contact Us
Copyright copy 2019 Mercer Capital Management Inc All rights reserved It is illegal under Federal law to reproduce this publication or any portion of its contents without the publisherrsquos permission Media quotations with source attribution are encouraged
Reporters requesting additional information or editorial comment should contact Barbara Walters Price at 9016852120 Mercer Capitalrsquos Industry Focus is published quarterly and does not constitute legal or financial consulting advice It is offered as an
information service to our clients and friends Those interested in specific guidance for legal or accounting matters should seek competent professional advice Inquiries to discuss specific valuation matters are welcomed To add your name to our mailing
list to receive this complimentary publication visit our web site at wwwmercercapitalcom
Mercer Capital provides valuation and transaction advisory services to the transportation amp logistics industry
Industry Segments
Mercer Capital serves the following industry
segments
bull Trucking
bull Air Freight
bull Marine
bull Railroads
bull Logistics amp Intermodal
Contact a Mercer Capital professional to discuss your needs in confidence
Timothy R Lee ASA
9013229740
leetmercercapitalcom
Nicholas J Heinz ASA
9016852120
heinznmercercapitalcom
Scott A Womack ASA MAFF
6153450234
womacksmercercapitalcom
Samantha L Albert ASA
9013229702
albertsmercercapitalcom
wwwmercercapitalcom
BUSINESS VALUATION amp FINANCIAL ADVISORY SERVICES
Services Provided
bull Valuation of transportation and logistics companies
bull Transaction advisory for acquisitions and
divestitures
bull Valuations for purchase accounting and impairment
testing
bull Fairness and solvency opinions
bull Litigation support for economic damages and
valuation and shareholder disputes
Mercer Capitalwwwmercercapitalcom
copy 2019 Mercer Capital wwwmercercapitalcom 7
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Trucking
Truck Tonnage (seasonally adjusted)
Truck TonnageThe Truck Tonnage Index reached a high level in July 2019 at 1193 compared to a low of 748 in April 2009 during the Great
Recession The July increase is the seventh consecutive month of increase and is 11 higher than June 2019 and 51
higher than July 2018 The American Trucking Association estimates that freight tonnage will grow 26 from 2019 to 2030
and industry revenues are expected to increase by over 50
copy 2019 Mercer Capital wwwmercercapitalcom 8
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
TruckingSpot vs Contract RatesThe Spot vs Contract Rates chart
depicts monthly national average line
haul rates and fuel surcharges from
DAT Shippers enter contracts that lock
in a static contract rate for a period of
time Spot rates on the other hand are
one-time shipping quotes for a specific
transaction or series of transactions
Excess capacity has contributed to
spot rates below contract rates in
recent months and a larger than normal
divergence between the two rates
Reefer flatbed and dry van spot rates
all declined relative to June 2019 Reefer
spot rates decreased 10cent to $216 in
September 2019 from $226 in June
2019 Dry van spot rates fell 5cent to $184
from $189 Flatbed rates decreased 9cent
to $215 from $224
Spot vs Contract Rates
copy 2019 Mercer Capital wwwmercercapitalcom 9
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
TruckingLoad-to-Truck RatioThe load-to-truck ratio is calculated
by dividing the total number of loads for
shipment by the total number of trucks
available As a result the load-to-truck
ratio can signal a shortage or excess
of capacity which in turn influences
changes in freight An increase in the
ratio (ie a higher number of loads
relative to the level of available trucks)
is typically associated with shipping
rate increases While economic factors
typically push supply and demand
compression or expansion that occurs
faster in the shipping industry can
accelerate movements faster than the
overall economy
The load-to-truck ratio declined sharply
in the third quarter 2019 for all three
types of trucks tracked by DAT The van
ratio fell 24 the reefer ratio fell 13
and the flatbed ratio fell 31
Dry Van Load-to-Truck
Reefer Load-to-Truck
Flatbed Load-to-Truck
Source DAT
copy 2019 Mercer Capital wwwmercercapitalcom 10
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Rail amp Intermodal
Rail Freight Intermodal Traffic
Rail Freight Intermodal TrafficIntermodal shipments increased in July 2019 relative to June 2019 with intermodal freight volumes up 15 from June
However on an annual basis rail carloads declined 51 from August 2018 American Association of Railroads Senior Vice
President of Policy and Economics John Gray indicated that the year-over-year decline was due largely to reduced traffic in
the three largest rail segments ndash coal grain and intermodal Low natural gas prices cooled demand for coal and ongoing
trade concerns with China depressed the grain and international markets (50 of rail intermodal involves international
shipments)
copy 2019 Mercer Capital wwwmercercapitalcom 11
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Rail amp IntermodalCass Intermodal IndexThe Cass Intermodal Index measures
changes in per-mile US domestic
intermodal costs The index in Sep-
tember 2019 was 1423 relatively un-
changed from 1420 in June 2019 and
a 01 increase on a year-to-year ba-
sis Cass indicates that declining fuel
costs once again impacted the index
value
Cass Intermodal Index Historical Trend
Cass Intermodal Index Annual Comparison
copy 2019 Mercer Capital wwwmercercapitalcom 12
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
MampA ActivityFeatured Transactions
Genesee amp Wyoming Inc (NYSEGWR) acquired by
Brookfield Asset Management
EVO Transportation amp Energy Services Inc
acquired multiple transportation companies
Brookfield Asset Management acquired GWR for
$95 billion on August 26 at a multiple of 41x sales
and 141x EBITDA GWR is an owner and operator
of freight railroads in the US Canada Britain and
Europe GWR had grown rapidly in part through
acquisition of short-line railroads and faced increased
maintenance costs
EVO Transportation closed on at least three acquisi-
tions during the third quarter EVO Transportation ac-
quired Courtlandt and Brown Enterprises LLCFinkle
Transport Inc for $120 million and Ritter Transporta-
tion for $137 million EVO also acquired an LLC that
owns vehicles for leasing
Senior management team purchases
Premium Transportation Logistics
Heartland Express Inc (HTLD) acquired
Millis Transfer Inc
The senior management team of Premium
Transportation Logistics acquired PTL from its parent
company PTL is a expedited ground shipping
company The deal closed in July 2019
Heartland Express acquired Millis Transfer for a total
purchase price of $150 million at a multiple of 10x
revenue Millis is a regional dry van truckload company
based in Iowa Millis was previously family-owned
and operated and Heartland intends to retain the
management team
copy 2019 Mercer Capital wwwmercercapitalcom 13
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Select Transactions
Date Announced
Deal Status
Total Deal Value
Deal Value to
Target Buyer Sales EBITDA
TruckingBWP Transport Inc AampR Logistics Inc 7119 Closed - - -
Carlisle Carrier Corporation Cowan Systems LLC 71119 Closed - - -
Logicorp Enterprises LLC Outwest Express LLC 72219 Closed - - -
Courtlandt and Brown Enterprises LLCFinkle Transport IncEVO Transportation amp Energy Services Inc (OTCP-KEVOA)
72519 Closed $120 - -
Piston Tank Corporation TFI International Inc (TSXTFII) 72919 Closed - - -
Wayne T Fellows IncFellows Truck Brokers Inc Kottke Trucking Inc 73119 Closed - - -
Millis Transfer Inc Heartland Express Inc (NasdaqGSHTLD) 82619 Closed $1500 10x -
DR Graham Trucking LLC Energy amp Environmental Services Inc 82719 Closed - - -
Schindewolf Express Inc Quest Liner Inc 82019 Closed - - -
RailGenesee amp Wyoming Inc (NYSEGWR) DJP XX LLC (Brookfield Asset Management) 7119 Announced $94789 41x 141x
Winchester amp Western Railroad Company Inc OmniTRAX Inc 72619 Closed $1050 - -
Patriot Rail Company LLC First State Investments (Us) Llc MidRail LLC 82619 Announced - - -
The Cleveland Commercial Railroad Company LLC OmniTRAX Inc 82719 Announced - - -
Massena Rail Line of CSX Corporation Canadian National Railway Company (TSXCNR) 82919 Announced - - -
Arrow Material Services LLC Precision Terminal Logistics LLC 9619 Closed - - -
Source SampP Global Market Intelligencein USD millions
copy 2019 Mercer Capital wwwmercercapitalcom 14
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Date Announced
Deal Status
Total Deal Value
Deal Value to
Target Buyer Sales EBITDA
MarineNone during third quarter 2019
Air Freight amp LogisticsPremium Transportation Logistics LLC Senior Management 7119 Closed - - -
Argus Carriers LtdInter-Urban Delivery Service Ltd Mullen Group Ltd (TSXMTL) 7219 Closed - - -
Worldwide Perishables Canada Co Kuehne + Nagel International AG (SWXKNIN) 72419 Closed - - -
Unitrans International Corporation AIT Worldwide Logistics Inc 8519 Closed - - -
GTO Global Logistics Inc Air Menzies International Limited 81219 Closed $23 - -
Ritter Transportation Systems IncRitter Transport IncEVO Transportation amp Energy Services Inc (OTCP-KEVOA)
92019 Closed $137 - -
Source SampP Global Market Intelligencein USD millions
Select Transactions (continued)
copy 2019 Mercer Capital wwwmercercapitalcom 15
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Public Company Performance
Monthly Median TEVEBITDA Multiples (as of Sept 30 2019)
copy 2019 Mercer Capital wwwmercercapitalcom 16
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
TruckloadJB Hunt Transport Services Inc JBHT $11065 21 $13303 11 830 $9033 13 15x 115x 257x 101x 206x
TFI International Inc TFII $3064 -11 $4222 40 660 $3924 14 11x 77x 107x 66x 103x
Ryder System Inc R $5177 11 $10550 74 337 $8905 27 12x 44x 213x 48x 491x
Knight-Swift Transportation Holdings Inc KNX $3630 4 $7269 15 399 $5042 19 14x 75x 157x 77x 162x
Landstar System Inc LSTR $11258 1 $4327 -3 1429 $4277 8 10x 120x 181x 124x 191x
Werner Enterprises Inc WERN $3530 19 $2794 13 674 $2488 19 11x 59x 141x 60x 151x
Schneider National Inc SNDR $2172 14 $3927 2 584 $4912 13 08x 61x 219x 65x 169x
Heartland Express Inc HTLD $2151 19 $1558 -13 519 $577 29 27x 92x 213x 77x 216x
Daseke Inc DSKE $250 -31 $968 77 8 $1781 9 05x 61x nm 59x nm
Marten Transport Ltd MRTN $2078 4 $1054 -8 562 $830 19 13x 65x 186x 61x 188x
Universal Logistics Holdings Inc ULH $2328 14 $1071 41 772 $1522 11 07x 62x 168x 65x 97x
Covenant Transportation Group Inc CVTI $1644 12 $598 49 276 $934 13 06x 51x 127x 61x 216x
PAM Transportation Services Inc PTSI $5911 -5 $539 37 581 $529 19 10x 55x 123x 53x 117x
USA Truck Inc USAK $803 -21 $259 74 283 $540 9 05x 54x 123x 58x 824x
Titanium Transportation Group Inc TTR $098 -3 $98 63 240 $126 9 08x 86x 173x 70x 290x
Patriot Transportation Holding Inc PATI $1790 5 $39 -52 24 $111 8 04x 44x 273x nm nm
Median 5 26 130 10x 61x 173x 65x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 17
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Less-Than-TruckloadOld Dominion Freight Line Inc ODFL $16997 14 $13483 -1 1448 $4127 27 33x 122x 216x 124x 220x
Saia Inc SAIA $9370 45 $2657 9 791 $1750 16 15x 97x 204x 96x 213x
ArcBest Corporation ARCB $3045 8 $833 7 356 $3045 7 03x 42x 128x 41x 119x
YRC Worldwide Inc YRCW $302 -25 $1202 91 138 $4959 4 02x 62x nm 59x nm
Roadrunner Transportation Systems Inc RRTS $1036 8 $778 50 -708 $1999 -2 04x -248x nm -344x nm
Median 8 9 7 04x 62x 204x 59x 213x
Air FreightAtlas Air Worldwide Holdings Inc AAWW $2523 -43 $3520 81 228 $2757 18 13x 70x 20x 74x 56x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Cargojet Inc CJT $7110 11 $1459 35 409 $362 25 40x 164x 565x 125x 674x
Median -3 44 21 17x 96x 163x 97x 180x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 18
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
MarineKirby Corporation KEX $8216 4 $6663 26 307 $2904 18 23x 129x 427x 132x 283x
Triton International Limited TRTN $3384 3 $9951 73 453 $1420 93 70x 75x 74x 80x 74x
Matson Inc MATX $3751 -3 $2674 40 269 $2227 9 12x 128x 183x 99x 194x
Seaspan Corporation SSW $1063 8 $6540 65 380 $1138 63 57x 91x 53x 92x 135x
Textainer Group Holdings Limited TGH $991 -2 $3963 86 286 $706 67 56x 84x 142x 85x 101x
Costamare Inc CMRE $607 18 $2328 69 410 $460 64 51x 79x 86x 71x 70x
Eagle Bulk Shipping Inc EGLE $438 -17 $653 49 139 $308 17 21x 124x nm 113x nm
Navios Maritime Partners LP NMM $1773 31 $650 69 230 $216 47 30x 64x 1495x 57x 67x
Pangaea Logistics Solutions Ltd PANL $321 -4 $350 59 424 $384 13 09x 70x 92x 69x 68x
Global Ship Lease Inc GSL $765 4 $918 86 638 $244 58 38x 65x nm 58x 48x
Sino-Global Shipping America Ltd SINO $076 7 $4 -197 -1710 $47 -8 01x -11x nm nm nm
Median 4 65 30x 79x 117x 83x 74x
RailroadsUnion Pacific Corporation UNP $16198 -4 $140317 19 891 $22253 49 63x 129x 188x 129x 190x
Canadian National Railway Company CNR $8986 -3 $74929 14 915 $11437 51 66x 129x 190x 135x 201x
CSX Corporation CSX $6927 -10 $69900 21 833 $12195 52 57x 109x 162x 109x 165x
Norfolk Southern Corporation NSC $17966 -10 $59393 20 706 $11502 46 52x 112x 172x 115x 177x
Canadian Pacific Railway Limited CP $22240 -6 $37519 18 1002 $5838 54 64x 119x 176x 128x 181x
Kansas City Southern KSU $13301 9 $16407 19 670 $2831 49 58x 119x 232x 117x 191x
Genesee amp Wyoming Inc GWR $11051 11 $9310 32 308 $2289 29 41x 142x 296x 139x 267x
Median -4 19 58x 119x 188x 128x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 19
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Logistics amp IntermodalUnited Parcel Service Inc UPS $11982 16 $124013 17 704 $73374 11 17x 157x 206x 118x 159x
FedEx Corporation FDX $14557 -11 $68386 44 155 $69200 13 10x 78x 104x 81x 95x
Expeditors International of Washington Inc EXPD $7429 -2 $11979 -6 1426 $8366 10 14x 140x 201x 141x 210x
XPO Logistics Inc XPO $7157 24 $14173 53 407 $16901 9 08x 89x 164x 85x 180x
CH Robinson Worldwide Inc CHRW $8478 1 $12647 9 1244 $15654 6 08x 127x 173x 134x 191x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Hub Group Inc HUBG $4650 11 $1773 11 542 $3786 7 05x 65x 124x 66x 137x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Echo Global Logistics Inc ECHO $2265 9 $794 22 308 $2236 3 04x 118x 304x 97x 156x
Radiant Logistics Inc RLGT $517 -16 $288 11 502 $920 4 03x 76x 154x 71x 128x
Median 4 14 09x 103x 168x 91x 158x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
Mercer CapitalTransportation amp Logistics Industry Services
Contact Us
Copyright copy 2019 Mercer Capital Management Inc All rights reserved It is illegal under Federal law to reproduce this publication or any portion of its contents without the publisherrsquos permission Media quotations with source attribution are encouraged
Reporters requesting additional information or editorial comment should contact Barbara Walters Price at 9016852120 Mercer Capitalrsquos Industry Focus is published quarterly and does not constitute legal or financial consulting advice It is offered as an
information service to our clients and friends Those interested in specific guidance for legal or accounting matters should seek competent professional advice Inquiries to discuss specific valuation matters are welcomed To add your name to our mailing
list to receive this complimentary publication visit our web site at wwwmercercapitalcom
Mercer Capital provides valuation and transaction advisory services to the transportation amp logistics industry
Industry Segments
Mercer Capital serves the following industry
segments
bull Trucking
bull Air Freight
bull Marine
bull Railroads
bull Logistics amp Intermodal
Contact a Mercer Capital professional to discuss your needs in confidence
Timothy R Lee ASA
9013229740
leetmercercapitalcom
Nicholas J Heinz ASA
9016852120
heinznmercercapitalcom
Scott A Womack ASA MAFF
6153450234
womacksmercercapitalcom
Samantha L Albert ASA
9013229702
albertsmercercapitalcom
wwwmercercapitalcom
BUSINESS VALUATION amp FINANCIAL ADVISORY SERVICES
Services Provided
bull Valuation of transportation and logistics companies
bull Transaction advisory for acquisitions and
divestitures
bull Valuations for purchase accounting and impairment
testing
bull Fairness and solvency opinions
bull Litigation support for economic damages and
valuation and shareholder disputes
Mercer Capitalwwwmercercapitalcom
copy 2019 Mercer Capital wwwmercercapitalcom 8
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
TruckingSpot vs Contract RatesThe Spot vs Contract Rates chart
depicts monthly national average line
haul rates and fuel surcharges from
DAT Shippers enter contracts that lock
in a static contract rate for a period of
time Spot rates on the other hand are
one-time shipping quotes for a specific
transaction or series of transactions
Excess capacity has contributed to
spot rates below contract rates in
recent months and a larger than normal
divergence between the two rates
Reefer flatbed and dry van spot rates
all declined relative to June 2019 Reefer
spot rates decreased 10cent to $216 in
September 2019 from $226 in June
2019 Dry van spot rates fell 5cent to $184
from $189 Flatbed rates decreased 9cent
to $215 from $224
Spot vs Contract Rates
copy 2019 Mercer Capital wwwmercercapitalcom 9
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
TruckingLoad-to-Truck RatioThe load-to-truck ratio is calculated
by dividing the total number of loads for
shipment by the total number of trucks
available As a result the load-to-truck
ratio can signal a shortage or excess
of capacity which in turn influences
changes in freight An increase in the
ratio (ie a higher number of loads
relative to the level of available trucks)
is typically associated with shipping
rate increases While economic factors
typically push supply and demand
compression or expansion that occurs
faster in the shipping industry can
accelerate movements faster than the
overall economy
The load-to-truck ratio declined sharply
in the third quarter 2019 for all three
types of trucks tracked by DAT The van
ratio fell 24 the reefer ratio fell 13
and the flatbed ratio fell 31
Dry Van Load-to-Truck
Reefer Load-to-Truck
Flatbed Load-to-Truck
Source DAT
copy 2019 Mercer Capital wwwmercercapitalcom 10
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Rail amp Intermodal
Rail Freight Intermodal Traffic
Rail Freight Intermodal TrafficIntermodal shipments increased in July 2019 relative to June 2019 with intermodal freight volumes up 15 from June
However on an annual basis rail carloads declined 51 from August 2018 American Association of Railroads Senior Vice
President of Policy and Economics John Gray indicated that the year-over-year decline was due largely to reduced traffic in
the three largest rail segments ndash coal grain and intermodal Low natural gas prices cooled demand for coal and ongoing
trade concerns with China depressed the grain and international markets (50 of rail intermodal involves international
shipments)
copy 2019 Mercer Capital wwwmercercapitalcom 11
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Rail amp IntermodalCass Intermodal IndexThe Cass Intermodal Index measures
changes in per-mile US domestic
intermodal costs The index in Sep-
tember 2019 was 1423 relatively un-
changed from 1420 in June 2019 and
a 01 increase on a year-to-year ba-
sis Cass indicates that declining fuel
costs once again impacted the index
value
Cass Intermodal Index Historical Trend
Cass Intermodal Index Annual Comparison
copy 2019 Mercer Capital wwwmercercapitalcom 12
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
MampA ActivityFeatured Transactions
Genesee amp Wyoming Inc (NYSEGWR) acquired by
Brookfield Asset Management
EVO Transportation amp Energy Services Inc
acquired multiple transportation companies
Brookfield Asset Management acquired GWR for
$95 billion on August 26 at a multiple of 41x sales
and 141x EBITDA GWR is an owner and operator
of freight railroads in the US Canada Britain and
Europe GWR had grown rapidly in part through
acquisition of short-line railroads and faced increased
maintenance costs
EVO Transportation closed on at least three acquisi-
tions during the third quarter EVO Transportation ac-
quired Courtlandt and Brown Enterprises LLCFinkle
Transport Inc for $120 million and Ritter Transporta-
tion for $137 million EVO also acquired an LLC that
owns vehicles for leasing
Senior management team purchases
Premium Transportation Logistics
Heartland Express Inc (HTLD) acquired
Millis Transfer Inc
The senior management team of Premium
Transportation Logistics acquired PTL from its parent
company PTL is a expedited ground shipping
company The deal closed in July 2019
Heartland Express acquired Millis Transfer for a total
purchase price of $150 million at a multiple of 10x
revenue Millis is a regional dry van truckload company
based in Iowa Millis was previously family-owned
and operated and Heartland intends to retain the
management team
copy 2019 Mercer Capital wwwmercercapitalcom 13
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Select Transactions
Date Announced
Deal Status
Total Deal Value
Deal Value to
Target Buyer Sales EBITDA
TruckingBWP Transport Inc AampR Logistics Inc 7119 Closed - - -
Carlisle Carrier Corporation Cowan Systems LLC 71119 Closed - - -
Logicorp Enterprises LLC Outwest Express LLC 72219 Closed - - -
Courtlandt and Brown Enterprises LLCFinkle Transport IncEVO Transportation amp Energy Services Inc (OTCP-KEVOA)
72519 Closed $120 - -
Piston Tank Corporation TFI International Inc (TSXTFII) 72919 Closed - - -
Wayne T Fellows IncFellows Truck Brokers Inc Kottke Trucking Inc 73119 Closed - - -
Millis Transfer Inc Heartland Express Inc (NasdaqGSHTLD) 82619 Closed $1500 10x -
DR Graham Trucking LLC Energy amp Environmental Services Inc 82719 Closed - - -
Schindewolf Express Inc Quest Liner Inc 82019 Closed - - -
RailGenesee amp Wyoming Inc (NYSEGWR) DJP XX LLC (Brookfield Asset Management) 7119 Announced $94789 41x 141x
Winchester amp Western Railroad Company Inc OmniTRAX Inc 72619 Closed $1050 - -
Patriot Rail Company LLC First State Investments (Us) Llc MidRail LLC 82619 Announced - - -
The Cleveland Commercial Railroad Company LLC OmniTRAX Inc 82719 Announced - - -
Massena Rail Line of CSX Corporation Canadian National Railway Company (TSXCNR) 82919 Announced - - -
Arrow Material Services LLC Precision Terminal Logistics LLC 9619 Closed - - -
Source SampP Global Market Intelligencein USD millions
copy 2019 Mercer Capital wwwmercercapitalcom 14
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Date Announced
Deal Status
Total Deal Value
Deal Value to
Target Buyer Sales EBITDA
MarineNone during third quarter 2019
Air Freight amp LogisticsPremium Transportation Logistics LLC Senior Management 7119 Closed - - -
Argus Carriers LtdInter-Urban Delivery Service Ltd Mullen Group Ltd (TSXMTL) 7219 Closed - - -
Worldwide Perishables Canada Co Kuehne + Nagel International AG (SWXKNIN) 72419 Closed - - -
Unitrans International Corporation AIT Worldwide Logistics Inc 8519 Closed - - -
GTO Global Logistics Inc Air Menzies International Limited 81219 Closed $23 - -
Ritter Transportation Systems IncRitter Transport IncEVO Transportation amp Energy Services Inc (OTCP-KEVOA)
92019 Closed $137 - -
Source SampP Global Market Intelligencein USD millions
Select Transactions (continued)
copy 2019 Mercer Capital wwwmercercapitalcom 15
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Public Company Performance
Monthly Median TEVEBITDA Multiples (as of Sept 30 2019)
copy 2019 Mercer Capital wwwmercercapitalcom 16
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
TruckloadJB Hunt Transport Services Inc JBHT $11065 21 $13303 11 830 $9033 13 15x 115x 257x 101x 206x
TFI International Inc TFII $3064 -11 $4222 40 660 $3924 14 11x 77x 107x 66x 103x
Ryder System Inc R $5177 11 $10550 74 337 $8905 27 12x 44x 213x 48x 491x
Knight-Swift Transportation Holdings Inc KNX $3630 4 $7269 15 399 $5042 19 14x 75x 157x 77x 162x
Landstar System Inc LSTR $11258 1 $4327 -3 1429 $4277 8 10x 120x 181x 124x 191x
Werner Enterprises Inc WERN $3530 19 $2794 13 674 $2488 19 11x 59x 141x 60x 151x
Schneider National Inc SNDR $2172 14 $3927 2 584 $4912 13 08x 61x 219x 65x 169x
Heartland Express Inc HTLD $2151 19 $1558 -13 519 $577 29 27x 92x 213x 77x 216x
Daseke Inc DSKE $250 -31 $968 77 8 $1781 9 05x 61x nm 59x nm
Marten Transport Ltd MRTN $2078 4 $1054 -8 562 $830 19 13x 65x 186x 61x 188x
Universal Logistics Holdings Inc ULH $2328 14 $1071 41 772 $1522 11 07x 62x 168x 65x 97x
Covenant Transportation Group Inc CVTI $1644 12 $598 49 276 $934 13 06x 51x 127x 61x 216x
PAM Transportation Services Inc PTSI $5911 -5 $539 37 581 $529 19 10x 55x 123x 53x 117x
USA Truck Inc USAK $803 -21 $259 74 283 $540 9 05x 54x 123x 58x 824x
Titanium Transportation Group Inc TTR $098 -3 $98 63 240 $126 9 08x 86x 173x 70x 290x
Patriot Transportation Holding Inc PATI $1790 5 $39 -52 24 $111 8 04x 44x 273x nm nm
Median 5 26 130 10x 61x 173x 65x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 17
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Less-Than-TruckloadOld Dominion Freight Line Inc ODFL $16997 14 $13483 -1 1448 $4127 27 33x 122x 216x 124x 220x
Saia Inc SAIA $9370 45 $2657 9 791 $1750 16 15x 97x 204x 96x 213x
ArcBest Corporation ARCB $3045 8 $833 7 356 $3045 7 03x 42x 128x 41x 119x
YRC Worldwide Inc YRCW $302 -25 $1202 91 138 $4959 4 02x 62x nm 59x nm
Roadrunner Transportation Systems Inc RRTS $1036 8 $778 50 -708 $1999 -2 04x -248x nm -344x nm
Median 8 9 7 04x 62x 204x 59x 213x
Air FreightAtlas Air Worldwide Holdings Inc AAWW $2523 -43 $3520 81 228 $2757 18 13x 70x 20x 74x 56x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Cargojet Inc CJT $7110 11 $1459 35 409 $362 25 40x 164x 565x 125x 674x
Median -3 44 21 17x 96x 163x 97x 180x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 18
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
MarineKirby Corporation KEX $8216 4 $6663 26 307 $2904 18 23x 129x 427x 132x 283x
Triton International Limited TRTN $3384 3 $9951 73 453 $1420 93 70x 75x 74x 80x 74x
Matson Inc MATX $3751 -3 $2674 40 269 $2227 9 12x 128x 183x 99x 194x
Seaspan Corporation SSW $1063 8 $6540 65 380 $1138 63 57x 91x 53x 92x 135x
Textainer Group Holdings Limited TGH $991 -2 $3963 86 286 $706 67 56x 84x 142x 85x 101x
Costamare Inc CMRE $607 18 $2328 69 410 $460 64 51x 79x 86x 71x 70x
Eagle Bulk Shipping Inc EGLE $438 -17 $653 49 139 $308 17 21x 124x nm 113x nm
Navios Maritime Partners LP NMM $1773 31 $650 69 230 $216 47 30x 64x 1495x 57x 67x
Pangaea Logistics Solutions Ltd PANL $321 -4 $350 59 424 $384 13 09x 70x 92x 69x 68x
Global Ship Lease Inc GSL $765 4 $918 86 638 $244 58 38x 65x nm 58x 48x
Sino-Global Shipping America Ltd SINO $076 7 $4 -197 -1710 $47 -8 01x -11x nm nm nm
Median 4 65 30x 79x 117x 83x 74x
RailroadsUnion Pacific Corporation UNP $16198 -4 $140317 19 891 $22253 49 63x 129x 188x 129x 190x
Canadian National Railway Company CNR $8986 -3 $74929 14 915 $11437 51 66x 129x 190x 135x 201x
CSX Corporation CSX $6927 -10 $69900 21 833 $12195 52 57x 109x 162x 109x 165x
Norfolk Southern Corporation NSC $17966 -10 $59393 20 706 $11502 46 52x 112x 172x 115x 177x
Canadian Pacific Railway Limited CP $22240 -6 $37519 18 1002 $5838 54 64x 119x 176x 128x 181x
Kansas City Southern KSU $13301 9 $16407 19 670 $2831 49 58x 119x 232x 117x 191x
Genesee amp Wyoming Inc GWR $11051 11 $9310 32 308 $2289 29 41x 142x 296x 139x 267x
Median -4 19 58x 119x 188x 128x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 19
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Logistics amp IntermodalUnited Parcel Service Inc UPS $11982 16 $124013 17 704 $73374 11 17x 157x 206x 118x 159x
FedEx Corporation FDX $14557 -11 $68386 44 155 $69200 13 10x 78x 104x 81x 95x
Expeditors International of Washington Inc EXPD $7429 -2 $11979 -6 1426 $8366 10 14x 140x 201x 141x 210x
XPO Logistics Inc XPO $7157 24 $14173 53 407 $16901 9 08x 89x 164x 85x 180x
CH Robinson Worldwide Inc CHRW $8478 1 $12647 9 1244 $15654 6 08x 127x 173x 134x 191x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Hub Group Inc HUBG $4650 11 $1773 11 542 $3786 7 05x 65x 124x 66x 137x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Echo Global Logistics Inc ECHO $2265 9 $794 22 308 $2236 3 04x 118x 304x 97x 156x
Radiant Logistics Inc RLGT $517 -16 $288 11 502 $920 4 03x 76x 154x 71x 128x
Median 4 14 09x 103x 168x 91x 158x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
Mercer CapitalTransportation amp Logistics Industry Services
Contact Us
Copyright copy 2019 Mercer Capital Management Inc All rights reserved It is illegal under Federal law to reproduce this publication or any portion of its contents without the publisherrsquos permission Media quotations with source attribution are encouraged
Reporters requesting additional information or editorial comment should contact Barbara Walters Price at 9016852120 Mercer Capitalrsquos Industry Focus is published quarterly and does not constitute legal or financial consulting advice It is offered as an
information service to our clients and friends Those interested in specific guidance for legal or accounting matters should seek competent professional advice Inquiries to discuss specific valuation matters are welcomed To add your name to our mailing
list to receive this complimentary publication visit our web site at wwwmercercapitalcom
Mercer Capital provides valuation and transaction advisory services to the transportation amp logistics industry
Industry Segments
Mercer Capital serves the following industry
segments
bull Trucking
bull Air Freight
bull Marine
bull Railroads
bull Logistics amp Intermodal
Contact a Mercer Capital professional to discuss your needs in confidence
Timothy R Lee ASA
9013229740
leetmercercapitalcom
Nicholas J Heinz ASA
9016852120
heinznmercercapitalcom
Scott A Womack ASA MAFF
6153450234
womacksmercercapitalcom
Samantha L Albert ASA
9013229702
albertsmercercapitalcom
wwwmercercapitalcom
BUSINESS VALUATION amp FINANCIAL ADVISORY SERVICES
Services Provided
bull Valuation of transportation and logistics companies
bull Transaction advisory for acquisitions and
divestitures
bull Valuations for purchase accounting and impairment
testing
bull Fairness and solvency opinions
bull Litigation support for economic damages and
valuation and shareholder disputes
Mercer Capitalwwwmercercapitalcom
copy 2019 Mercer Capital wwwmercercapitalcom 9
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
TruckingLoad-to-Truck RatioThe load-to-truck ratio is calculated
by dividing the total number of loads for
shipment by the total number of trucks
available As a result the load-to-truck
ratio can signal a shortage or excess
of capacity which in turn influences
changes in freight An increase in the
ratio (ie a higher number of loads
relative to the level of available trucks)
is typically associated with shipping
rate increases While economic factors
typically push supply and demand
compression or expansion that occurs
faster in the shipping industry can
accelerate movements faster than the
overall economy
The load-to-truck ratio declined sharply
in the third quarter 2019 for all three
types of trucks tracked by DAT The van
ratio fell 24 the reefer ratio fell 13
and the flatbed ratio fell 31
Dry Van Load-to-Truck
Reefer Load-to-Truck
Flatbed Load-to-Truck
Source DAT
copy 2019 Mercer Capital wwwmercercapitalcom 10
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Rail amp Intermodal
Rail Freight Intermodal Traffic
Rail Freight Intermodal TrafficIntermodal shipments increased in July 2019 relative to June 2019 with intermodal freight volumes up 15 from June
However on an annual basis rail carloads declined 51 from August 2018 American Association of Railroads Senior Vice
President of Policy and Economics John Gray indicated that the year-over-year decline was due largely to reduced traffic in
the three largest rail segments ndash coal grain and intermodal Low natural gas prices cooled demand for coal and ongoing
trade concerns with China depressed the grain and international markets (50 of rail intermodal involves international
shipments)
copy 2019 Mercer Capital wwwmercercapitalcom 11
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Rail amp IntermodalCass Intermodal IndexThe Cass Intermodal Index measures
changes in per-mile US domestic
intermodal costs The index in Sep-
tember 2019 was 1423 relatively un-
changed from 1420 in June 2019 and
a 01 increase on a year-to-year ba-
sis Cass indicates that declining fuel
costs once again impacted the index
value
Cass Intermodal Index Historical Trend
Cass Intermodal Index Annual Comparison
copy 2019 Mercer Capital wwwmercercapitalcom 12
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
MampA ActivityFeatured Transactions
Genesee amp Wyoming Inc (NYSEGWR) acquired by
Brookfield Asset Management
EVO Transportation amp Energy Services Inc
acquired multiple transportation companies
Brookfield Asset Management acquired GWR for
$95 billion on August 26 at a multiple of 41x sales
and 141x EBITDA GWR is an owner and operator
of freight railroads in the US Canada Britain and
Europe GWR had grown rapidly in part through
acquisition of short-line railroads and faced increased
maintenance costs
EVO Transportation closed on at least three acquisi-
tions during the third quarter EVO Transportation ac-
quired Courtlandt and Brown Enterprises LLCFinkle
Transport Inc for $120 million and Ritter Transporta-
tion for $137 million EVO also acquired an LLC that
owns vehicles for leasing
Senior management team purchases
Premium Transportation Logistics
Heartland Express Inc (HTLD) acquired
Millis Transfer Inc
The senior management team of Premium
Transportation Logistics acquired PTL from its parent
company PTL is a expedited ground shipping
company The deal closed in July 2019
Heartland Express acquired Millis Transfer for a total
purchase price of $150 million at a multiple of 10x
revenue Millis is a regional dry van truckload company
based in Iowa Millis was previously family-owned
and operated and Heartland intends to retain the
management team
copy 2019 Mercer Capital wwwmercercapitalcom 13
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Select Transactions
Date Announced
Deal Status
Total Deal Value
Deal Value to
Target Buyer Sales EBITDA
TruckingBWP Transport Inc AampR Logistics Inc 7119 Closed - - -
Carlisle Carrier Corporation Cowan Systems LLC 71119 Closed - - -
Logicorp Enterprises LLC Outwest Express LLC 72219 Closed - - -
Courtlandt and Brown Enterprises LLCFinkle Transport IncEVO Transportation amp Energy Services Inc (OTCP-KEVOA)
72519 Closed $120 - -
Piston Tank Corporation TFI International Inc (TSXTFII) 72919 Closed - - -
Wayne T Fellows IncFellows Truck Brokers Inc Kottke Trucking Inc 73119 Closed - - -
Millis Transfer Inc Heartland Express Inc (NasdaqGSHTLD) 82619 Closed $1500 10x -
DR Graham Trucking LLC Energy amp Environmental Services Inc 82719 Closed - - -
Schindewolf Express Inc Quest Liner Inc 82019 Closed - - -
RailGenesee amp Wyoming Inc (NYSEGWR) DJP XX LLC (Brookfield Asset Management) 7119 Announced $94789 41x 141x
Winchester amp Western Railroad Company Inc OmniTRAX Inc 72619 Closed $1050 - -
Patriot Rail Company LLC First State Investments (Us) Llc MidRail LLC 82619 Announced - - -
The Cleveland Commercial Railroad Company LLC OmniTRAX Inc 82719 Announced - - -
Massena Rail Line of CSX Corporation Canadian National Railway Company (TSXCNR) 82919 Announced - - -
Arrow Material Services LLC Precision Terminal Logistics LLC 9619 Closed - - -
Source SampP Global Market Intelligencein USD millions
copy 2019 Mercer Capital wwwmercercapitalcom 14
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Date Announced
Deal Status
Total Deal Value
Deal Value to
Target Buyer Sales EBITDA
MarineNone during third quarter 2019
Air Freight amp LogisticsPremium Transportation Logistics LLC Senior Management 7119 Closed - - -
Argus Carriers LtdInter-Urban Delivery Service Ltd Mullen Group Ltd (TSXMTL) 7219 Closed - - -
Worldwide Perishables Canada Co Kuehne + Nagel International AG (SWXKNIN) 72419 Closed - - -
Unitrans International Corporation AIT Worldwide Logistics Inc 8519 Closed - - -
GTO Global Logistics Inc Air Menzies International Limited 81219 Closed $23 - -
Ritter Transportation Systems IncRitter Transport IncEVO Transportation amp Energy Services Inc (OTCP-KEVOA)
92019 Closed $137 - -
Source SampP Global Market Intelligencein USD millions
Select Transactions (continued)
copy 2019 Mercer Capital wwwmercercapitalcom 15
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Public Company Performance
Monthly Median TEVEBITDA Multiples (as of Sept 30 2019)
copy 2019 Mercer Capital wwwmercercapitalcom 16
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
TruckloadJB Hunt Transport Services Inc JBHT $11065 21 $13303 11 830 $9033 13 15x 115x 257x 101x 206x
TFI International Inc TFII $3064 -11 $4222 40 660 $3924 14 11x 77x 107x 66x 103x
Ryder System Inc R $5177 11 $10550 74 337 $8905 27 12x 44x 213x 48x 491x
Knight-Swift Transportation Holdings Inc KNX $3630 4 $7269 15 399 $5042 19 14x 75x 157x 77x 162x
Landstar System Inc LSTR $11258 1 $4327 -3 1429 $4277 8 10x 120x 181x 124x 191x
Werner Enterprises Inc WERN $3530 19 $2794 13 674 $2488 19 11x 59x 141x 60x 151x
Schneider National Inc SNDR $2172 14 $3927 2 584 $4912 13 08x 61x 219x 65x 169x
Heartland Express Inc HTLD $2151 19 $1558 -13 519 $577 29 27x 92x 213x 77x 216x
Daseke Inc DSKE $250 -31 $968 77 8 $1781 9 05x 61x nm 59x nm
Marten Transport Ltd MRTN $2078 4 $1054 -8 562 $830 19 13x 65x 186x 61x 188x
Universal Logistics Holdings Inc ULH $2328 14 $1071 41 772 $1522 11 07x 62x 168x 65x 97x
Covenant Transportation Group Inc CVTI $1644 12 $598 49 276 $934 13 06x 51x 127x 61x 216x
PAM Transportation Services Inc PTSI $5911 -5 $539 37 581 $529 19 10x 55x 123x 53x 117x
USA Truck Inc USAK $803 -21 $259 74 283 $540 9 05x 54x 123x 58x 824x
Titanium Transportation Group Inc TTR $098 -3 $98 63 240 $126 9 08x 86x 173x 70x 290x
Patriot Transportation Holding Inc PATI $1790 5 $39 -52 24 $111 8 04x 44x 273x nm nm
Median 5 26 130 10x 61x 173x 65x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 17
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Less-Than-TruckloadOld Dominion Freight Line Inc ODFL $16997 14 $13483 -1 1448 $4127 27 33x 122x 216x 124x 220x
Saia Inc SAIA $9370 45 $2657 9 791 $1750 16 15x 97x 204x 96x 213x
ArcBest Corporation ARCB $3045 8 $833 7 356 $3045 7 03x 42x 128x 41x 119x
YRC Worldwide Inc YRCW $302 -25 $1202 91 138 $4959 4 02x 62x nm 59x nm
Roadrunner Transportation Systems Inc RRTS $1036 8 $778 50 -708 $1999 -2 04x -248x nm -344x nm
Median 8 9 7 04x 62x 204x 59x 213x
Air FreightAtlas Air Worldwide Holdings Inc AAWW $2523 -43 $3520 81 228 $2757 18 13x 70x 20x 74x 56x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Cargojet Inc CJT $7110 11 $1459 35 409 $362 25 40x 164x 565x 125x 674x
Median -3 44 21 17x 96x 163x 97x 180x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 18
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
MarineKirby Corporation KEX $8216 4 $6663 26 307 $2904 18 23x 129x 427x 132x 283x
Triton International Limited TRTN $3384 3 $9951 73 453 $1420 93 70x 75x 74x 80x 74x
Matson Inc MATX $3751 -3 $2674 40 269 $2227 9 12x 128x 183x 99x 194x
Seaspan Corporation SSW $1063 8 $6540 65 380 $1138 63 57x 91x 53x 92x 135x
Textainer Group Holdings Limited TGH $991 -2 $3963 86 286 $706 67 56x 84x 142x 85x 101x
Costamare Inc CMRE $607 18 $2328 69 410 $460 64 51x 79x 86x 71x 70x
Eagle Bulk Shipping Inc EGLE $438 -17 $653 49 139 $308 17 21x 124x nm 113x nm
Navios Maritime Partners LP NMM $1773 31 $650 69 230 $216 47 30x 64x 1495x 57x 67x
Pangaea Logistics Solutions Ltd PANL $321 -4 $350 59 424 $384 13 09x 70x 92x 69x 68x
Global Ship Lease Inc GSL $765 4 $918 86 638 $244 58 38x 65x nm 58x 48x
Sino-Global Shipping America Ltd SINO $076 7 $4 -197 -1710 $47 -8 01x -11x nm nm nm
Median 4 65 30x 79x 117x 83x 74x
RailroadsUnion Pacific Corporation UNP $16198 -4 $140317 19 891 $22253 49 63x 129x 188x 129x 190x
Canadian National Railway Company CNR $8986 -3 $74929 14 915 $11437 51 66x 129x 190x 135x 201x
CSX Corporation CSX $6927 -10 $69900 21 833 $12195 52 57x 109x 162x 109x 165x
Norfolk Southern Corporation NSC $17966 -10 $59393 20 706 $11502 46 52x 112x 172x 115x 177x
Canadian Pacific Railway Limited CP $22240 -6 $37519 18 1002 $5838 54 64x 119x 176x 128x 181x
Kansas City Southern KSU $13301 9 $16407 19 670 $2831 49 58x 119x 232x 117x 191x
Genesee amp Wyoming Inc GWR $11051 11 $9310 32 308 $2289 29 41x 142x 296x 139x 267x
Median -4 19 58x 119x 188x 128x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 19
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Logistics amp IntermodalUnited Parcel Service Inc UPS $11982 16 $124013 17 704 $73374 11 17x 157x 206x 118x 159x
FedEx Corporation FDX $14557 -11 $68386 44 155 $69200 13 10x 78x 104x 81x 95x
Expeditors International of Washington Inc EXPD $7429 -2 $11979 -6 1426 $8366 10 14x 140x 201x 141x 210x
XPO Logistics Inc XPO $7157 24 $14173 53 407 $16901 9 08x 89x 164x 85x 180x
CH Robinson Worldwide Inc CHRW $8478 1 $12647 9 1244 $15654 6 08x 127x 173x 134x 191x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Hub Group Inc HUBG $4650 11 $1773 11 542 $3786 7 05x 65x 124x 66x 137x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Echo Global Logistics Inc ECHO $2265 9 $794 22 308 $2236 3 04x 118x 304x 97x 156x
Radiant Logistics Inc RLGT $517 -16 $288 11 502 $920 4 03x 76x 154x 71x 128x
Median 4 14 09x 103x 168x 91x 158x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
Mercer CapitalTransportation amp Logistics Industry Services
Contact Us
Copyright copy 2019 Mercer Capital Management Inc All rights reserved It is illegal under Federal law to reproduce this publication or any portion of its contents without the publisherrsquos permission Media quotations with source attribution are encouraged
Reporters requesting additional information or editorial comment should contact Barbara Walters Price at 9016852120 Mercer Capitalrsquos Industry Focus is published quarterly and does not constitute legal or financial consulting advice It is offered as an
information service to our clients and friends Those interested in specific guidance for legal or accounting matters should seek competent professional advice Inquiries to discuss specific valuation matters are welcomed To add your name to our mailing
list to receive this complimentary publication visit our web site at wwwmercercapitalcom
Mercer Capital provides valuation and transaction advisory services to the transportation amp logistics industry
Industry Segments
Mercer Capital serves the following industry
segments
bull Trucking
bull Air Freight
bull Marine
bull Railroads
bull Logistics amp Intermodal
Contact a Mercer Capital professional to discuss your needs in confidence
Timothy R Lee ASA
9013229740
leetmercercapitalcom
Nicholas J Heinz ASA
9016852120
heinznmercercapitalcom
Scott A Womack ASA MAFF
6153450234
womacksmercercapitalcom
Samantha L Albert ASA
9013229702
albertsmercercapitalcom
wwwmercercapitalcom
BUSINESS VALUATION amp FINANCIAL ADVISORY SERVICES
Services Provided
bull Valuation of transportation and logistics companies
bull Transaction advisory for acquisitions and
divestitures
bull Valuations for purchase accounting and impairment
testing
bull Fairness and solvency opinions
bull Litigation support for economic damages and
valuation and shareholder disputes
Mercer Capitalwwwmercercapitalcom
copy 2019 Mercer Capital wwwmercercapitalcom 10
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Rail amp Intermodal
Rail Freight Intermodal Traffic
Rail Freight Intermodal TrafficIntermodal shipments increased in July 2019 relative to June 2019 with intermodal freight volumes up 15 from June
However on an annual basis rail carloads declined 51 from August 2018 American Association of Railroads Senior Vice
President of Policy and Economics John Gray indicated that the year-over-year decline was due largely to reduced traffic in
the three largest rail segments ndash coal grain and intermodal Low natural gas prices cooled demand for coal and ongoing
trade concerns with China depressed the grain and international markets (50 of rail intermodal involves international
shipments)
copy 2019 Mercer Capital wwwmercercapitalcom 11
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Rail amp IntermodalCass Intermodal IndexThe Cass Intermodal Index measures
changes in per-mile US domestic
intermodal costs The index in Sep-
tember 2019 was 1423 relatively un-
changed from 1420 in June 2019 and
a 01 increase on a year-to-year ba-
sis Cass indicates that declining fuel
costs once again impacted the index
value
Cass Intermodal Index Historical Trend
Cass Intermodal Index Annual Comparison
copy 2019 Mercer Capital wwwmercercapitalcom 12
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
MampA ActivityFeatured Transactions
Genesee amp Wyoming Inc (NYSEGWR) acquired by
Brookfield Asset Management
EVO Transportation amp Energy Services Inc
acquired multiple transportation companies
Brookfield Asset Management acquired GWR for
$95 billion on August 26 at a multiple of 41x sales
and 141x EBITDA GWR is an owner and operator
of freight railroads in the US Canada Britain and
Europe GWR had grown rapidly in part through
acquisition of short-line railroads and faced increased
maintenance costs
EVO Transportation closed on at least three acquisi-
tions during the third quarter EVO Transportation ac-
quired Courtlandt and Brown Enterprises LLCFinkle
Transport Inc for $120 million and Ritter Transporta-
tion for $137 million EVO also acquired an LLC that
owns vehicles for leasing
Senior management team purchases
Premium Transportation Logistics
Heartland Express Inc (HTLD) acquired
Millis Transfer Inc
The senior management team of Premium
Transportation Logistics acquired PTL from its parent
company PTL is a expedited ground shipping
company The deal closed in July 2019
Heartland Express acquired Millis Transfer for a total
purchase price of $150 million at a multiple of 10x
revenue Millis is a regional dry van truckload company
based in Iowa Millis was previously family-owned
and operated and Heartland intends to retain the
management team
copy 2019 Mercer Capital wwwmercercapitalcom 13
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Select Transactions
Date Announced
Deal Status
Total Deal Value
Deal Value to
Target Buyer Sales EBITDA
TruckingBWP Transport Inc AampR Logistics Inc 7119 Closed - - -
Carlisle Carrier Corporation Cowan Systems LLC 71119 Closed - - -
Logicorp Enterprises LLC Outwest Express LLC 72219 Closed - - -
Courtlandt and Brown Enterprises LLCFinkle Transport IncEVO Transportation amp Energy Services Inc (OTCP-KEVOA)
72519 Closed $120 - -
Piston Tank Corporation TFI International Inc (TSXTFII) 72919 Closed - - -
Wayne T Fellows IncFellows Truck Brokers Inc Kottke Trucking Inc 73119 Closed - - -
Millis Transfer Inc Heartland Express Inc (NasdaqGSHTLD) 82619 Closed $1500 10x -
DR Graham Trucking LLC Energy amp Environmental Services Inc 82719 Closed - - -
Schindewolf Express Inc Quest Liner Inc 82019 Closed - - -
RailGenesee amp Wyoming Inc (NYSEGWR) DJP XX LLC (Brookfield Asset Management) 7119 Announced $94789 41x 141x
Winchester amp Western Railroad Company Inc OmniTRAX Inc 72619 Closed $1050 - -
Patriot Rail Company LLC First State Investments (Us) Llc MidRail LLC 82619 Announced - - -
The Cleveland Commercial Railroad Company LLC OmniTRAX Inc 82719 Announced - - -
Massena Rail Line of CSX Corporation Canadian National Railway Company (TSXCNR) 82919 Announced - - -
Arrow Material Services LLC Precision Terminal Logistics LLC 9619 Closed - - -
Source SampP Global Market Intelligencein USD millions
copy 2019 Mercer Capital wwwmercercapitalcom 14
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Date Announced
Deal Status
Total Deal Value
Deal Value to
Target Buyer Sales EBITDA
MarineNone during third quarter 2019
Air Freight amp LogisticsPremium Transportation Logistics LLC Senior Management 7119 Closed - - -
Argus Carriers LtdInter-Urban Delivery Service Ltd Mullen Group Ltd (TSXMTL) 7219 Closed - - -
Worldwide Perishables Canada Co Kuehne + Nagel International AG (SWXKNIN) 72419 Closed - - -
Unitrans International Corporation AIT Worldwide Logistics Inc 8519 Closed - - -
GTO Global Logistics Inc Air Menzies International Limited 81219 Closed $23 - -
Ritter Transportation Systems IncRitter Transport IncEVO Transportation amp Energy Services Inc (OTCP-KEVOA)
92019 Closed $137 - -
Source SampP Global Market Intelligencein USD millions
Select Transactions (continued)
copy 2019 Mercer Capital wwwmercercapitalcom 15
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Public Company Performance
Monthly Median TEVEBITDA Multiples (as of Sept 30 2019)
copy 2019 Mercer Capital wwwmercercapitalcom 16
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
TruckloadJB Hunt Transport Services Inc JBHT $11065 21 $13303 11 830 $9033 13 15x 115x 257x 101x 206x
TFI International Inc TFII $3064 -11 $4222 40 660 $3924 14 11x 77x 107x 66x 103x
Ryder System Inc R $5177 11 $10550 74 337 $8905 27 12x 44x 213x 48x 491x
Knight-Swift Transportation Holdings Inc KNX $3630 4 $7269 15 399 $5042 19 14x 75x 157x 77x 162x
Landstar System Inc LSTR $11258 1 $4327 -3 1429 $4277 8 10x 120x 181x 124x 191x
Werner Enterprises Inc WERN $3530 19 $2794 13 674 $2488 19 11x 59x 141x 60x 151x
Schneider National Inc SNDR $2172 14 $3927 2 584 $4912 13 08x 61x 219x 65x 169x
Heartland Express Inc HTLD $2151 19 $1558 -13 519 $577 29 27x 92x 213x 77x 216x
Daseke Inc DSKE $250 -31 $968 77 8 $1781 9 05x 61x nm 59x nm
Marten Transport Ltd MRTN $2078 4 $1054 -8 562 $830 19 13x 65x 186x 61x 188x
Universal Logistics Holdings Inc ULH $2328 14 $1071 41 772 $1522 11 07x 62x 168x 65x 97x
Covenant Transportation Group Inc CVTI $1644 12 $598 49 276 $934 13 06x 51x 127x 61x 216x
PAM Transportation Services Inc PTSI $5911 -5 $539 37 581 $529 19 10x 55x 123x 53x 117x
USA Truck Inc USAK $803 -21 $259 74 283 $540 9 05x 54x 123x 58x 824x
Titanium Transportation Group Inc TTR $098 -3 $98 63 240 $126 9 08x 86x 173x 70x 290x
Patriot Transportation Holding Inc PATI $1790 5 $39 -52 24 $111 8 04x 44x 273x nm nm
Median 5 26 130 10x 61x 173x 65x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 17
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Less-Than-TruckloadOld Dominion Freight Line Inc ODFL $16997 14 $13483 -1 1448 $4127 27 33x 122x 216x 124x 220x
Saia Inc SAIA $9370 45 $2657 9 791 $1750 16 15x 97x 204x 96x 213x
ArcBest Corporation ARCB $3045 8 $833 7 356 $3045 7 03x 42x 128x 41x 119x
YRC Worldwide Inc YRCW $302 -25 $1202 91 138 $4959 4 02x 62x nm 59x nm
Roadrunner Transportation Systems Inc RRTS $1036 8 $778 50 -708 $1999 -2 04x -248x nm -344x nm
Median 8 9 7 04x 62x 204x 59x 213x
Air FreightAtlas Air Worldwide Holdings Inc AAWW $2523 -43 $3520 81 228 $2757 18 13x 70x 20x 74x 56x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Cargojet Inc CJT $7110 11 $1459 35 409 $362 25 40x 164x 565x 125x 674x
Median -3 44 21 17x 96x 163x 97x 180x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 18
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
MarineKirby Corporation KEX $8216 4 $6663 26 307 $2904 18 23x 129x 427x 132x 283x
Triton International Limited TRTN $3384 3 $9951 73 453 $1420 93 70x 75x 74x 80x 74x
Matson Inc MATX $3751 -3 $2674 40 269 $2227 9 12x 128x 183x 99x 194x
Seaspan Corporation SSW $1063 8 $6540 65 380 $1138 63 57x 91x 53x 92x 135x
Textainer Group Holdings Limited TGH $991 -2 $3963 86 286 $706 67 56x 84x 142x 85x 101x
Costamare Inc CMRE $607 18 $2328 69 410 $460 64 51x 79x 86x 71x 70x
Eagle Bulk Shipping Inc EGLE $438 -17 $653 49 139 $308 17 21x 124x nm 113x nm
Navios Maritime Partners LP NMM $1773 31 $650 69 230 $216 47 30x 64x 1495x 57x 67x
Pangaea Logistics Solutions Ltd PANL $321 -4 $350 59 424 $384 13 09x 70x 92x 69x 68x
Global Ship Lease Inc GSL $765 4 $918 86 638 $244 58 38x 65x nm 58x 48x
Sino-Global Shipping America Ltd SINO $076 7 $4 -197 -1710 $47 -8 01x -11x nm nm nm
Median 4 65 30x 79x 117x 83x 74x
RailroadsUnion Pacific Corporation UNP $16198 -4 $140317 19 891 $22253 49 63x 129x 188x 129x 190x
Canadian National Railway Company CNR $8986 -3 $74929 14 915 $11437 51 66x 129x 190x 135x 201x
CSX Corporation CSX $6927 -10 $69900 21 833 $12195 52 57x 109x 162x 109x 165x
Norfolk Southern Corporation NSC $17966 -10 $59393 20 706 $11502 46 52x 112x 172x 115x 177x
Canadian Pacific Railway Limited CP $22240 -6 $37519 18 1002 $5838 54 64x 119x 176x 128x 181x
Kansas City Southern KSU $13301 9 $16407 19 670 $2831 49 58x 119x 232x 117x 191x
Genesee amp Wyoming Inc GWR $11051 11 $9310 32 308 $2289 29 41x 142x 296x 139x 267x
Median -4 19 58x 119x 188x 128x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 19
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Logistics amp IntermodalUnited Parcel Service Inc UPS $11982 16 $124013 17 704 $73374 11 17x 157x 206x 118x 159x
FedEx Corporation FDX $14557 -11 $68386 44 155 $69200 13 10x 78x 104x 81x 95x
Expeditors International of Washington Inc EXPD $7429 -2 $11979 -6 1426 $8366 10 14x 140x 201x 141x 210x
XPO Logistics Inc XPO $7157 24 $14173 53 407 $16901 9 08x 89x 164x 85x 180x
CH Robinson Worldwide Inc CHRW $8478 1 $12647 9 1244 $15654 6 08x 127x 173x 134x 191x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Hub Group Inc HUBG $4650 11 $1773 11 542 $3786 7 05x 65x 124x 66x 137x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Echo Global Logistics Inc ECHO $2265 9 $794 22 308 $2236 3 04x 118x 304x 97x 156x
Radiant Logistics Inc RLGT $517 -16 $288 11 502 $920 4 03x 76x 154x 71x 128x
Median 4 14 09x 103x 168x 91x 158x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
Mercer CapitalTransportation amp Logistics Industry Services
Contact Us
Copyright copy 2019 Mercer Capital Management Inc All rights reserved It is illegal under Federal law to reproduce this publication or any portion of its contents without the publisherrsquos permission Media quotations with source attribution are encouraged
Reporters requesting additional information or editorial comment should contact Barbara Walters Price at 9016852120 Mercer Capitalrsquos Industry Focus is published quarterly and does not constitute legal or financial consulting advice It is offered as an
information service to our clients and friends Those interested in specific guidance for legal or accounting matters should seek competent professional advice Inquiries to discuss specific valuation matters are welcomed To add your name to our mailing
list to receive this complimentary publication visit our web site at wwwmercercapitalcom
Mercer Capital provides valuation and transaction advisory services to the transportation amp logistics industry
Industry Segments
Mercer Capital serves the following industry
segments
bull Trucking
bull Air Freight
bull Marine
bull Railroads
bull Logistics amp Intermodal
Contact a Mercer Capital professional to discuss your needs in confidence
Timothy R Lee ASA
9013229740
leetmercercapitalcom
Nicholas J Heinz ASA
9016852120
heinznmercercapitalcom
Scott A Womack ASA MAFF
6153450234
womacksmercercapitalcom
Samantha L Albert ASA
9013229702
albertsmercercapitalcom
wwwmercercapitalcom
BUSINESS VALUATION amp FINANCIAL ADVISORY SERVICES
Services Provided
bull Valuation of transportation and logistics companies
bull Transaction advisory for acquisitions and
divestitures
bull Valuations for purchase accounting and impairment
testing
bull Fairness and solvency opinions
bull Litigation support for economic damages and
valuation and shareholder disputes
Mercer Capitalwwwmercercapitalcom
copy 2019 Mercer Capital wwwmercercapitalcom 11
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Rail amp IntermodalCass Intermodal IndexThe Cass Intermodal Index measures
changes in per-mile US domestic
intermodal costs The index in Sep-
tember 2019 was 1423 relatively un-
changed from 1420 in June 2019 and
a 01 increase on a year-to-year ba-
sis Cass indicates that declining fuel
costs once again impacted the index
value
Cass Intermodal Index Historical Trend
Cass Intermodal Index Annual Comparison
copy 2019 Mercer Capital wwwmercercapitalcom 12
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
MampA ActivityFeatured Transactions
Genesee amp Wyoming Inc (NYSEGWR) acquired by
Brookfield Asset Management
EVO Transportation amp Energy Services Inc
acquired multiple transportation companies
Brookfield Asset Management acquired GWR for
$95 billion on August 26 at a multiple of 41x sales
and 141x EBITDA GWR is an owner and operator
of freight railroads in the US Canada Britain and
Europe GWR had grown rapidly in part through
acquisition of short-line railroads and faced increased
maintenance costs
EVO Transportation closed on at least three acquisi-
tions during the third quarter EVO Transportation ac-
quired Courtlandt and Brown Enterprises LLCFinkle
Transport Inc for $120 million and Ritter Transporta-
tion for $137 million EVO also acquired an LLC that
owns vehicles for leasing
Senior management team purchases
Premium Transportation Logistics
Heartland Express Inc (HTLD) acquired
Millis Transfer Inc
The senior management team of Premium
Transportation Logistics acquired PTL from its parent
company PTL is a expedited ground shipping
company The deal closed in July 2019
Heartland Express acquired Millis Transfer for a total
purchase price of $150 million at a multiple of 10x
revenue Millis is a regional dry van truckload company
based in Iowa Millis was previously family-owned
and operated and Heartland intends to retain the
management team
copy 2019 Mercer Capital wwwmercercapitalcom 13
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Select Transactions
Date Announced
Deal Status
Total Deal Value
Deal Value to
Target Buyer Sales EBITDA
TruckingBWP Transport Inc AampR Logistics Inc 7119 Closed - - -
Carlisle Carrier Corporation Cowan Systems LLC 71119 Closed - - -
Logicorp Enterprises LLC Outwest Express LLC 72219 Closed - - -
Courtlandt and Brown Enterprises LLCFinkle Transport IncEVO Transportation amp Energy Services Inc (OTCP-KEVOA)
72519 Closed $120 - -
Piston Tank Corporation TFI International Inc (TSXTFII) 72919 Closed - - -
Wayne T Fellows IncFellows Truck Brokers Inc Kottke Trucking Inc 73119 Closed - - -
Millis Transfer Inc Heartland Express Inc (NasdaqGSHTLD) 82619 Closed $1500 10x -
DR Graham Trucking LLC Energy amp Environmental Services Inc 82719 Closed - - -
Schindewolf Express Inc Quest Liner Inc 82019 Closed - - -
RailGenesee amp Wyoming Inc (NYSEGWR) DJP XX LLC (Brookfield Asset Management) 7119 Announced $94789 41x 141x
Winchester amp Western Railroad Company Inc OmniTRAX Inc 72619 Closed $1050 - -
Patriot Rail Company LLC First State Investments (Us) Llc MidRail LLC 82619 Announced - - -
The Cleveland Commercial Railroad Company LLC OmniTRAX Inc 82719 Announced - - -
Massena Rail Line of CSX Corporation Canadian National Railway Company (TSXCNR) 82919 Announced - - -
Arrow Material Services LLC Precision Terminal Logistics LLC 9619 Closed - - -
Source SampP Global Market Intelligencein USD millions
copy 2019 Mercer Capital wwwmercercapitalcom 14
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Date Announced
Deal Status
Total Deal Value
Deal Value to
Target Buyer Sales EBITDA
MarineNone during third quarter 2019
Air Freight amp LogisticsPremium Transportation Logistics LLC Senior Management 7119 Closed - - -
Argus Carriers LtdInter-Urban Delivery Service Ltd Mullen Group Ltd (TSXMTL) 7219 Closed - - -
Worldwide Perishables Canada Co Kuehne + Nagel International AG (SWXKNIN) 72419 Closed - - -
Unitrans International Corporation AIT Worldwide Logistics Inc 8519 Closed - - -
GTO Global Logistics Inc Air Menzies International Limited 81219 Closed $23 - -
Ritter Transportation Systems IncRitter Transport IncEVO Transportation amp Energy Services Inc (OTCP-KEVOA)
92019 Closed $137 - -
Source SampP Global Market Intelligencein USD millions
Select Transactions (continued)
copy 2019 Mercer Capital wwwmercercapitalcom 15
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Public Company Performance
Monthly Median TEVEBITDA Multiples (as of Sept 30 2019)
copy 2019 Mercer Capital wwwmercercapitalcom 16
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
TruckloadJB Hunt Transport Services Inc JBHT $11065 21 $13303 11 830 $9033 13 15x 115x 257x 101x 206x
TFI International Inc TFII $3064 -11 $4222 40 660 $3924 14 11x 77x 107x 66x 103x
Ryder System Inc R $5177 11 $10550 74 337 $8905 27 12x 44x 213x 48x 491x
Knight-Swift Transportation Holdings Inc KNX $3630 4 $7269 15 399 $5042 19 14x 75x 157x 77x 162x
Landstar System Inc LSTR $11258 1 $4327 -3 1429 $4277 8 10x 120x 181x 124x 191x
Werner Enterprises Inc WERN $3530 19 $2794 13 674 $2488 19 11x 59x 141x 60x 151x
Schneider National Inc SNDR $2172 14 $3927 2 584 $4912 13 08x 61x 219x 65x 169x
Heartland Express Inc HTLD $2151 19 $1558 -13 519 $577 29 27x 92x 213x 77x 216x
Daseke Inc DSKE $250 -31 $968 77 8 $1781 9 05x 61x nm 59x nm
Marten Transport Ltd MRTN $2078 4 $1054 -8 562 $830 19 13x 65x 186x 61x 188x
Universal Logistics Holdings Inc ULH $2328 14 $1071 41 772 $1522 11 07x 62x 168x 65x 97x
Covenant Transportation Group Inc CVTI $1644 12 $598 49 276 $934 13 06x 51x 127x 61x 216x
PAM Transportation Services Inc PTSI $5911 -5 $539 37 581 $529 19 10x 55x 123x 53x 117x
USA Truck Inc USAK $803 -21 $259 74 283 $540 9 05x 54x 123x 58x 824x
Titanium Transportation Group Inc TTR $098 -3 $98 63 240 $126 9 08x 86x 173x 70x 290x
Patriot Transportation Holding Inc PATI $1790 5 $39 -52 24 $111 8 04x 44x 273x nm nm
Median 5 26 130 10x 61x 173x 65x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 17
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Less-Than-TruckloadOld Dominion Freight Line Inc ODFL $16997 14 $13483 -1 1448 $4127 27 33x 122x 216x 124x 220x
Saia Inc SAIA $9370 45 $2657 9 791 $1750 16 15x 97x 204x 96x 213x
ArcBest Corporation ARCB $3045 8 $833 7 356 $3045 7 03x 42x 128x 41x 119x
YRC Worldwide Inc YRCW $302 -25 $1202 91 138 $4959 4 02x 62x nm 59x nm
Roadrunner Transportation Systems Inc RRTS $1036 8 $778 50 -708 $1999 -2 04x -248x nm -344x nm
Median 8 9 7 04x 62x 204x 59x 213x
Air FreightAtlas Air Worldwide Holdings Inc AAWW $2523 -43 $3520 81 228 $2757 18 13x 70x 20x 74x 56x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Cargojet Inc CJT $7110 11 $1459 35 409 $362 25 40x 164x 565x 125x 674x
Median -3 44 21 17x 96x 163x 97x 180x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 18
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
MarineKirby Corporation KEX $8216 4 $6663 26 307 $2904 18 23x 129x 427x 132x 283x
Triton International Limited TRTN $3384 3 $9951 73 453 $1420 93 70x 75x 74x 80x 74x
Matson Inc MATX $3751 -3 $2674 40 269 $2227 9 12x 128x 183x 99x 194x
Seaspan Corporation SSW $1063 8 $6540 65 380 $1138 63 57x 91x 53x 92x 135x
Textainer Group Holdings Limited TGH $991 -2 $3963 86 286 $706 67 56x 84x 142x 85x 101x
Costamare Inc CMRE $607 18 $2328 69 410 $460 64 51x 79x 86x 71x 70x
Eagle Bulk Shipping Inc EGLE $438 -17 $653 49 139 $308 17 21x 124x nm 113x nm
Navios Maritime Partners LP NMM $1773 31 $650 69 230 $216 47 30x 64x 1495x 57x 67x
Pangaea Logistics Solutions Ltd PANL $321 -4 $350 59 424 $384 13 09x 70x 92x 69x 68x
Global Ship Lease Inc GSL $765 4 $918 86 638 $244 58 38x 65x nm 58x 48x
Sino-Global Shipping America Ltd SINO $076 7 $4 -197 -1710 $47 -8 01x -11x nm nm nm
Median 4 65 30x 79x 117x 83x 74x
RailroadsUnion Pacific Corporation UNP $16198 -4 $140317 19 891 $22253 49 63x 129x 188x 129x 190x
Canadian National Railway Company CNR $8986 -3 $74929 14 915 $11437 51 66x 129x 190x 135x 201x
CSX Corporation CSX $6927 -10 $69900 21 833 $12195 52 57x 109x 162x 109x 165x
Norfolk Southern Corporation NSC $17966 -10 $59393 20 706 $11502 46 52x 112x 172x 115x 177x
Canadian Pacific Railway Limited CP $22240 -6 $37519 18 1002 $5838 54 64x 119x 176x 128x 181x
Kansas City Southern KSU $13301 9 $16407 19 670 $2831 49 58x 119x 232x 117x 191x
Genesee amp Wyoming Inc GWR $11051 11 $9310 32 308 $2289 29 41x 142x 296x 139x 267x
Median -4 19 58x 119x 188x 128x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 19
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Logistics amp IntermodalUnited Parcel Service Inc UPS $11982 16 $124013 17 704 $73374 11 17x 157x 206x 118x 159x
FedEx Corporation FDX $14557 -11 $68386 44 155 $69200 13 10x 78x 104x 81x 95x
Expeditors International of Washington Inc EXPD $7429 -2 $11979 -6 1426 $8366 10 14x 140x 201x 141x 210x
XPO Logistics Inc XPO $7157 24 $14173 53 407 $16901 9 08x 89x 164x 85x 180x
CH Robinson Worldwide Inc CHRW $8478 1 $12647 9 1244 $15654 6 08x 127x 173x 134x 191x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Hub Group Inc HUBG $4650 11 $1773 11 542 $3786 7 05x 65x 124x 66x 137x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Echo Global Logistics Inc ECHO $2265 9 $794 22 308 $2236 3 04x 118x 304x 97x 156x
Radiant Logistics Inc RLGT $517 -16 $288 11 502 $920 4 03x 76x 154x 71x 128x
Median 4 14 09x 103x 168x 91x 158x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
Mercer CapitalTransportation amp Logistics Industry Services
Contact Us
Copyright copy 2019 Mercer Capital Management Inc All rights reserved It is illegal under Federal law to reproduce this publication or any portion of its contents without the publisherrsquos permission Media quotations with source attribution are encouraged
Reporters requesting additional information or editorial comment should contact Barbara Walters Price at 9016852120 Mercer Capitalrsquos Industry Focus is published quarterly and does not constitute legal or financial consulting advice It is offered as an
information service to our clients and friends Those interested in specific guidance for legal or accounting matters should seek competent professional advice Inquiries to discuss specific valuation matters are welcomed To add your name to our mailing
list to receive this complimentary publication visit our web site at wwwmercercapitalcom
Mercer Capital provides valuation and transaction advisory services to the transportation amp logistics industry
Industry Segments
Mercer Capital serves the following industry
segments
bull Trucking
bull Air Freight
bull Marine
bull Railroads
bull Logistics amp Intermodal
Contact a Mercer Capital professional to discuss your needs in confidence
Timothy R Lee ASA
9013229740
leetmercercapitalcom
Nicholas J Heinz ASA
9016852120
heinznmercercapitalcom
Scott A Womack ASA MAFF
6153450234
womacksmercercapitalcom
Samantha L Albert ASA
9013229702
albertsmercercapitalcom
wwwmercercapitalcom
BUSINESS VALUATION amp FINANCIAL ADVISORY SERVICES
Services Provided
bull Valuation of transportation and logistics companies
bull Transaction advisory for acquisitions and
divestitures
bull Valuations for purchase accounting and impairment
testing
bull Fairness and solvency opinions
bull Litigation support for economic damages and
valuation and shareholder disputes
Mercer Capitalwwwmercercapitalcom
copy 2019 Mercer Capital wwwmercercapitalcom 12
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
MampA ActivityFeatured Transactions
Genesee amp Wyoming Inc (NYSEGWR) acquired by
Brookfield Asset Management
EVO Transportation amp Energy Services Inc
acquired multiple transportation companies
Brookfield Asset Management acquired GWR for
$95 billion on August 26 at a multiple of 41x sales
and 141x EBITDA GWR is an owner and operator
of freight railroads in the US Canada Britain and
Europe GWR had grown rapidly in part through
acquisition of short-line railroads and faced increased
maintenance costs
EVO Transportation closed on at least three acquisi-
tions during the third quarter EVO Transportation ac-
quired Courtlandt and Brown Enterprises LLCFinkle
Transport Inc for $120 million and Ritter Transporta-
tion for $137 million EVO also acquired an LLC that
owns vehicles for leasing
Senior management team purchases
Premium Transportation Logistics
Heartland Express Inc (HTLD) acquired
Millis Transfer Inc
The senior management team of Premium
Transportation Logistics acquired PTL from its parent
company PTL is a expedited ground shipping
company The deal closed in July 2019
Heartland Express acquired Millis Transfer for a total
purchase price of $150 million at a multiple of 10x
revenue Millis is a regional dry van truckload company
based in Iowa Millis was previously family-owned
and operated and Heartland intends to retain the
management team
copy 2019 Mercer Capital wwwmercercapitalcom 13
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Select Transactions
Date Announced
Deal Status
Total Deal Value
Deal Value to
Target Buyer Sales EBITDA
TruckingBWP Transport Inc AampR Logistics Inc 7119 Closed - - -
Carlisle Carrier Corporation Cowan Systems LLC 71119 Closed - - -
Logicorp Enterprises LLC Outwest Express LLC 72219 Closed - - -
Courtlandt and Brown Enterprises LLCFinkle Transport IncEVO Transportation amp Energy Services Inc (OTCP-KEVOA)
72519 Closed $120 - -
Piston Tank Corporation TFI International Inc (TSXTFII) 72919 Closed - - -
Wayne T Fellows IncFellows Truck Brokers Inc Kottke Trucking Inc 73119 Closed - - -
Millis Transfer Inc Heartland Express Inc (NasdaqGSHTLD) 82619 Closed $1500 10x -
DR Graham Trucking LLC Energy amp Environmental Services Inc 82719 Closed - - -
Schindewolf Express Inc Quest Liner Inc 82019 Closed - - -
RailGenesee amp Wyoming Inc (NYSEGWR) DJP XX LLC (Brookfield Asset Management) 7119 Announced $94789 41x 141x
Winchester amp Western Railroad Company Inc OmniTRAX Inc 72619 Closed $1050 - -
Patriot Rail Company LLC First State Investments (Us) Llc MidRail LLC 82619 Announced - - -
The Cleveland Commercial Railroad Company LLC OmniTRAX Inc 82719 Announced - - -
Massena Rail Line of CSX Corporation Canadian National Railway Company (TSXCNR) 82919 Announced - - -
Arrow Material Services LLC Precision Terminal Logistics LLC 9619 Closed - - -
Source SampP Global Market Intelligencein USD millions
copy 2019 Mercer Capital wwwmercercapitalcom 14
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Date Announced
Deal Status
Total Deal Value
Deal Value to
Target Buyer Sales EBITDA
MarineNone during third quarter 2019
Air Freight amp LogisticsPremium Transportation Logistics LLC Senior Management 7119 Closed - - -
Argus Carriers LtdInter-Urban Delivery Service Ltd Mullen Group Ltd (TSXMTL) 7219 Closed - - -
Worldwide Perishables Canada Co Kuehne + Nagel International AG (SWXKNIN) 72419 Closed - - -
Unitrans International Corporation AIT Worldwide Logistics Inc 8519 Closed - - -
GTO Global Logistics Inc Air Menzies International Limited 81219 Closed $23 - -
Ritter Transportation Systems IncRitter Transport IncEVO Transportation amp Energy Services Inc (OTCP-KEVOA)
92019 Closed $137 - -
Source SampP Global Market Intelligencein USD millions
Select Transactions (continued)
copy 2019 Mercer Capital wwwmercercapitalcom 15
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Public Company Performance
Monthly Median TEVEBITDA Multiples (as of Sept 30 2019)
copy 2019 Mercer Capital wwwmercercapitalcom 16
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
TruckloadJB Hunt Transport Services Inc JBHT $11065 21 $13303 11 830 $9033 13 15x 115x 257x 101x 206x
TFI International Inc TFII $3064 -11 $4222 40 660 $3924 14 11x 77x 107x 66x 103x
Ryder System Inc R $5177 11 $10550 74 337 $8905 27 12x 44x 213x 48x 491x
Knight-Swift Transportation Holdings Inc KNX $3630 4 $7269 15 399 $5042 19 14x 75x 157x 77x 162x
Landstar System Inc LSTR $11258 1 $4327 -3 1429 $4277 8 10x 120x 181x 124x 191x
Werner Enterprises Inc WERN $3530 19 $2794 13 674 $2488 19 11x 59x 141x 60x 151x
Schneider National Inc SNDR $2172 14 $3927 2 584 $4912 13 08x 61x 219x 65x 169x
Heartland Express Inc HTLD $2151 19 $1558 -13 519 $577 29 27x 92x 213x 77x 216x
Daseke Inc DSKE $250 -31 $968 77 8 $1781 9 05x 61x nm 59x nm
Marten Transport Ltd MRTN $2078 4 $1054 -8 562 $830 19 13x 65x 186x 61x 188x
Universal Logistics Holdings Inc ULH $2328 14 $1071 41 772 $1522 11 07x 62x 168x 65x 97x
Covenant Transportation Group Inc CVTI $1644 12 $598 49 276 $934 13 06x 51x 127x 61x 216x
PAM Transportation Services Inc PTSI $5911 -5 $539 37 581 $529 19 10x 55x 123x 53x 117x
USA Truck Inc USAK $803 -21 $259 74 283 $540 9 05x 54x 123x 58x 824x
Titanium Transportation Group Inc TTR $098 -3 $98 63 240 $126 9 08x 86x 173x 70x 290x
Patriot Transportation Holding Inc PATI $1790 5 $39 -52 24 $111 8 04x 44x 273x nm nm
Median 5 26 130 10x 61x 173x 65x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 17
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Less-Than-TruckloadOld Dominion Freight Line Inc ODFL $16997 14 $13483 -1 1448 $4127 27 33x 122x 216x 124x 220x
Saia Inc SAIA $9370 45 $2657 9 791 $1750 16 15x 97x 204x 96x 213x
ArcBest Corporation ARCB $3045 8 $833 7 356 $3045 7 03x 42x 128x 41x 119x
YRC Worldwide Inc YRCW $302 -25 $1202 91 138 $4959 4 02x 62x nm 59x nm
Roadrunner Transportation Systems Inc RRTS $1036 8 $778 50 -708 $1999 -2 04x -248x nm -344x nm
Median 8 9 7 04x 62x 204x 59x 213x
Air FreightAtlas Air Worldwide Holdings Inc AAWW $2523 -43 $3520 81 228 $2757 18 13x 70x 20x 74x 56x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Cargojet Inc CJT $7110 11 $1459 35 409 $362 25 40x 164x 565x 125x 674x
Median -3 44 21 17x 96x 163x 97x 180x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 18
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
MarineKirby Corporation KEX $8216 4 $6663 26 307 $2904 18 23x 129x 427x 132x 283x
Triton International Limited TRTN $3384 3 $9951 73 453 $1420 93 70x 75x 74x 80x 74x
Matson Inc MATX $3751 -3 $2674 40 269 $2227 9 12x 128x 183x 99x 194x
Seaspan Corporation SSW $1063 8 $6540 65 380 $1138 63 57x 91x 53x 92x 135x
Textainer Group Holdings Limited TGH $991 -2 $3963 86 286 $706 67 56x 84x 142x 85x 101x
Costamare Inc CMRE $607 18 $2328 69 410 $460 64 51x 79x 86x 71x 70x
Eagle Bulk Shipping Inc EGLE $438 -17 $653 49 139 $308 17 21x 124x nm 113x nm
Navios Maritime Partners LP NMM $1773 31 $650 69 230 $216 47 30x 64x 1495x 57x 67x
Pangaea Logistics Solutions Ltd PANL $321 -4 $350 59 424 $384 13 09x 70x 92x 69x 68x
Global Ship Lease Inc GSL $765 4 $918 86 638 $244 58 38x 65x nm 58x 48x
Sino-Global Shipping America Ltd SINO $076 7 $4 -197 -1710 $47 -8 01x -11x nm nm nm
Median 4 65 30x 79x 117x 83x 74x
RailroadsUnion Pacific Corporation UNP $16198 -4 $140317 19 891 $22253 49 63x 129x 188x 129x 190x
Canadian National Railway Company CNR $8986 -3 $74929 14 915 $11437 51 66x 129x 190x 135x 201x
CSX Corporation CSX $6927 -10 $69900 21 833 $12195 52 57x 109x 162x 109x 165x
Norfolk Southern Corporation NSC $17966 -10 $59393 20 706 $11502 46 52x 112x 172x 115x 177x
Canadian Pacific Railway Limited CP $22240 -6 $37519 18 1002 $5838 54 64x 119x 176x 128x 181x
Kansas City Southern KSU $13301 9 $16407 19 670 $2831 49 58x 119x 232x 117x 191x
Genesee amp Wyoming Inc GWR $11051 11 $9310 32 308 $2289 29 41x 142x 296x 139x 267x
Median -4 19 58x 119x 188x 128x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 19
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Logistics amp IntermodalUnited Parcel Service Inc UPS $11982 16 $124013 17 704 $73374 11 17x 157x 206x 118x 159x
FedEx Corporation FDX $14557 -11 $68386 44 155 $69200 13 10x 78x 104x 81x 95x
Expeditors International of Washington Inc EXPD $7429 -2 $11979 -6 1426 $8366 10 14x 140x 201x 141x 210x
XPO Logistics Inc XPO $7157 24 $14173 53 407 $16901 9 08x 89x 164x 85x 180x
CH Robinson Worldwide Inc CHRW $8478 1 $12647 9 1244 $15654 6 08x 127x 173x 134x 191x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Hub Group Inc HUBG $4650 11 $1773 11 542 $3786 7 05x 65x 124x 66x 137x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Echo Global Logistics Inc ECHO $2265 9 $794 22 308 $2236 3 04x 118x 304x 97x 156x
Radiant Logistics Inc RLGT $517 -16 $288 11 502 $920 4 03x 76x 154x 71x 128x
Median 4 14 09x 103x 168x 91x 158x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
Mercer CapitalTransportation amp Logistics Industry Services
Contact Us
Copyright copy 2019 Mercer Capital Management Inc All rights reserved It is illegal under Federal law to reproduce this publication or any portion of its contents without the publisherrsquos permission Media quotations with source attribution are encouraged
Reporters requesting additional information or editorial comment should contact Barbara Walters Price at 9016852120 Mercer Capitalrsquos Industry Focus is published quarterly and does not constitute legal or financial consulting advice It is offered as an
information service to our clients and friends Those interested in specific guidance for legal or accounting matters should seek competent professional advice Inquiries to discuss specific valuation matters are welcomed To add your name to our mailing
list to receive this complimentary publication visit our web site at wwwmercercapitalcom
Mercer Capital provides valuation and transaction advisory services to the transportation amp logistics industry
Industry Segments
Mercer Capital serves the following industry
segments
bull Trucking
bull Air Freight
bull Marine
bull Railroads
bull Logistics amp Intermodal
Contact a Mercer Capital professional to discuss your needs in confidence
Timothy R Lee ASA
9013229740
leetmercercapitalcom
Nicholas J Heinz ASA
9016852120
heinznmercercapitalcom
Scott A Womack ASA MAFF
6153450234
womacksmercercapitalcom
Samantha L Albert ASA
9013229702
albertsmercercapitalcom
wwwmercercapitalcom
BUSINESS VALUATION amp FINANCIAL ADVISORY SERVICES
Services Provided
bull Valuation of transportation and logistics companies
bull Transaction advisory for acquisitions and
divestitures
bull Valuations for purchase accounting and impairment
testing
bull Fairness and solvency opinions
bull Litigation support for economic damages and
valuation and shareholder disputes
Mercer Capitalwwwmercercapitalcom
copy 2019 Mercer Capital wwwmercercapitalcom 13
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Select Transactions
Date Announced
Deal Status
Total Deal Value
Deal Value to
Target Buyer Sales EBITDA
TruckingBWP Transport Inc AampR Logistics Inc 7119 Closed - - -
Carlisle Carrier Corporation Cowan Systems LLC 71119 Closed - - -
Logicorp Enterprises LLC Outwest Express LLC 72219 Closed - - -
Courtlandt and Brown Enterprises LLCFinkle Transport IncEVO Transportation amp Energy Services Inc (OTCP-KEVOA)
72519 Closed $120 - -
Piston Tank Corporation TFI International Inc (TSXTFII) 72919 Closed - - -
Wayne T Fellows IncFellows Truck Brokers Inc Kottke Trucking Inc 73119 Closed - - -
Millis Transfer Inc Heartland Express Inc (NasdaqGSHTLD) 82619 Closed $1500 10x -
DR Graham Trucking LLC Energy amp Environmental Services Inc 82719 Closed - - -
Schindewolf Express Inc Quest Liner Inc 82019 Closed - - -
RailGenesee amp Wyoming Inc (NYSEGWR) DJP XX LLC (Brookfield Asset Management) 7119 Announced $94789 41x 141x
Winchester amp Western Railroad Company Inc OmniTRAX Inc 72619 Closed $1050 - -
Patriot Rail Company LLC First State Investments (Us) Llc MidRail LLC 82619 Announced - - -
The Cleveland Commercial Railroad Company LLC OmniTRAX Inc 82719 Announced - - -
Massena Rail Line of CSX Corporation Canadian National Railway Company (TSXCNR) 82919 Announced - - -
Arrow Material Services LLC Precision Terminal Logistics LLC 9619 Closed - - -
Source SampP Global Market Intelligencein USD millions
copy 2019 Mercer Capital wwwmercercapitalcom 14
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Date Announced
Deal Status
Total Deal Value
Deal Value to
Target Buyer Sales EBITDA
MarineNone during third quarter 2019
Air Freight amp LogisticsPremium Transportation Logistics LLC Senior Management 7119 Closed - - -
Argus Carriers LtdInter-Urban Delivery Service Ltd Mullen Group Ltd (TSXMTL) 7219 Closed - - -
Worldwide Perishables Canada Co Kuehne + Nagel International AG (SWXKNIN) 72419 Closed - - -
Unitrans International Corporation AIT Worldwide Logistics Inc 8519 Closed - - -
GTO Global Logistics Inc Air Menzies International Limited 81219 Closed $23 - -
Ritter Transportation Systems IncRitter Transport IncEVO Transportation amp Energy Services Inc (OTCP-KEVOA)
92019 Closed $137 - -
Source SampP Global Market Intelligencein USD millions
Select Transactions (continued)
copy 2019 Mercer Capital wwwmercercapitalcom 15
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Public Company Performance
Monthly Median TEVEBITDA Multiples (as of Sept 30 2019)
copy 2019 Mercer Capital wwwmercercapitalcom 16
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
TruckloadJB Hunt Transport Services Inc JBHT $11065 21 $13303 11 830 $9033 13 15x 115x 257x 101x 206x
TFI International Inc TFII $3064 -11 $4222 40 660 $3924 14 11x 77x 107x 66x 103x
Ryder System Inc R $5177 11 $10550 74 337 $8905 27 12x 44x 213x 48x 491x
Knight-Swift Transportation Holdings Inc KNX $3630 4 $7269 15 399 $5042 19 14x 75x 157x 77x 162x
Landstar System Inc LSTR $11258 1 $4327 -3 1429 $4277 8 10x 120x 181x 124x 191x
Werner Enterprises Inc WERN $3530 19 $2794 13 674 $2488 19 11x 59x 141x 60x 151x
Schneider National Inc SNDR $2172 14 $3927 2 584 $4912 13 08x 61x 219x 65x 169x
Heartland Express Inc HTLD $2151 19 $1558 -13 519 $577 29 27x 92x 213x 77x 216x
Daseke Inc DSKE $250 -31 $968 77 8 $1781 9 05x 61x nm 59x nm
Marten Transport Ltd MRTN $2078 4 $1054 -8 562 $830 19 13x 65x 186x 61x 188x
Universal Logistics Holdings Inc ULH $2328 14 $1071 41 772 $1522 11 07x 62x 168x 65x 97x
Covenant Transportation Group Inc CVTI $1644 12 $598 49 276 $934 13 06x 51x 127x 61x 216x
PAM Transportation Services Inc PTSI $5911 -5 $539 37 581 $529 19 10x 55x 123x 53x 117x
USA Truck Inc USAK $803 -21 $259 74 283 $540 9 05x 54x 123x 58x 824x
Titanium Transportation Group Inc TTR $098 -3 $98 63 240 $126 9 08x 86x 173x 70x 290x
Patriot Transportation Holding Inc PATI $1790 5 $39 -52 24 $111 8 04x 44x 273x nm nm
Median 5 26 130 10x 61x 173x 65x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 17
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Less-Than-TruckloadOld Dominion Freight Line Inc ODFL $16997 14 $13483 -1 1448 $4127 27 33x 122x 216x 124x 220x
Saia Inc SAIA $9370 45 $2657 9 791 $1750 16 15x 97x 204x 96x 213x
ArcBest Corporation ARCB $3045 8 $833 7 356 $3045 7 03x 42x 128x 41x 119x
YRC Worldwide Inc YRCW $302 -25 $1202 91 138 $4959 4 02x 62x nm 59x nm
Roadrunner Transportation Systems Inc RRTS $1036 8 $778 50 -708 $1999 -2 04x -248x nm -344x nm
Median 8 9 7 04x 62x 204x 59x 213x
Air FreightAtlas Air Worldwide Holdings Inc AAWW $2523 -43 $3520 81 228 $2757 18 13x 70x 20x 74x 56x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Cargojet Inc CJT $7110 11 $1459 35 409 $362 25 40x 164x 565x 125x 674x
Median -3 44 21 17x 96x 163x 97x 180x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 18
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
MarineKirby Corporation KEX $8216 4 $6663 26 307 $2904 18 23x 129x 427x 132x 283x
Triton International Limited TRTN $3384 3 $9951 73 453 $1420 93 70x 75x 74x 80x 74x
Matson Inc MATX $3751 -3 $2674 40 269 $2227 9 12x 128x 183x 99x 194x
Seaspan Corporation SSW $1063 8 $6540 65 380 $1138 63 57x 91x 53x 92x 135x
Textainer Group Holdings Limited TGH $991 -2 $3963 86 286 $706 67 56x 84x 142x 85x 101x
Costamare Inc CMRE $607 18 $2328 69 410 $460 64 51x 79x 86x 71x 70x
Eagle Bulk Shipping Inc EGLE $438 -17 $653 49 139 $308 17 21x 124x nm 113x nm
Navios Maritime Partners LP NMM $1773 31 $650 69 230 $216 47 30x 64x 1495x 57x 67x
Pangaea Logistics Solutions Ltd PANL $321 -4 $350 59 424 $384 13 09x 70x 92x 69x 68x
Global Ship Lease Inc GSL $765 4 $918 86 638 $244 58 38x 65x nm 58x 48x
Sino-Global Shipping America Ltd SINO $076 7 $4 -197 -1710 $47 -8 01x -11x nm nm nm
Median 4 65 30x 79x 117x 83x 74x
RailroadsUnion Pacific Corporation UNP $16198 -4 $140317 19 891 $22253 49 63x 129x 188x 129x 190x
Canadian National Railway Company CNR $8986 -3 $74929 14 915 $11437 51 66x 129x 190x 135x 201x
CSX Corporation CSX $6927 -10 $69900 21 833 $12195 52 57x 109x 162x 109x 165x
Norfolk Southern Corporation NSC $17966 -10 $59393 20 706 $11502 46 52x 112x 172x 115x 177x
Canadian Pacific Railway Limited CP $22240 -6 $37519 18 1002 $5838 54 64x 119x 176x 128x 181x
Kansas City Southern KSU $13301 9 $16407 19 670 $2831 49 58x 119x 232x 117x 191x
Genesee amp Wyoming Inc GWR $11051 11 $9310 32 308 $2289 29 41x 142x 296x 139x 267x
Median -4 19 58x 119x 188x 128x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 19
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Logistics amp IntermodalUnited Parcel Service Inc UPS $11982 16 $124013 17 704 $73374 11 17x 157x 206x 118x 159x
FedEx Corporation FDX $14557 -11 $68386 44 155 $69200 13 10x 78x 104x 81x 95x
Expeditors International of Washington Inc EXPD $7429 -2 $11979 -6 1426 $8366 10 14x 140x 201x 141x 210x
XPO Logistics Inc XPO $7157 24 $14173 53 407 $16901 9 08x 89x 164x 85x 180x
CH Robinson Worldwide Inc CHRW $8478 1 $12647 9 1244 $15654 6 08x 127x 173x 134x 191x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Hub Group Inc HUBG $4650 11 $1773 11 542 $3786 7 05x 65x 124x 66x 137x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Echo Global Logistics Inc ECHO $2265 9 $794 22 308 $2236 3 04x 118x 304x 97x 156x
Radiant Logistics Inc RLGT $517 -16 $288 11 502 $920 4 03x 76x 154x 71x 128x
Median 4 14 09x 103x 168x 91x 158x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
Mercer CapitalTransportation amp Logistics Industry Services
Contact Us
Copyright copy 2019 Mercer Capital Management Inc All rights reserved It is illegal under Federal law to reproduce this publication or any portion of its contents without the publisherrsquos permission Media quotations with source attribution are encouraged
Reporters requesting additional information or editorial comment should contact Barbara Walters Price at 9016852120 Mercer Capitalrsquos Industry Focus is published quarterly and does not constitute legal or financial consulting advice It is offered as an
information service to our clients and friends Those interested in specific guidance for legal or accounting matters should seek competent professional advice Inquiries to discuss specific valuation matters are welcomed To add your name to our mailing
list to receive this complimentary publication visit our web site at wwwmercercapitalcom
Mercer Capital provides valuation and transaction advisory services to the transportation amp logistics industry
Industry Segments
Mercer Capital serves the following industry
segments
bull Trucking
bull Air Freight
bull Marine
bull Railroads
bull Logistics amp Intermodal
Contact a Mercer Capital professional to discuss your needs in confidence
Timothy R Lee ASA
9013229740
leetmercercapitalcom
Nicholas J Heinz ASA
9016852120
heinznmercercapitalcom
Scott A Womack ASA MAFF
6153450234
womacksmercercapitalcom
Samantha L Albert ASA
9013229702
albertsmercercapitalcom
wwwmercercapitalcom
BUSINESS VALUATION amp FINANCIAL ADVISORY SERVICES
Services Provided
bull Valuation of transportation and logistics companies
bull Transaction advisory for acquisitions and
divestitures
bull Valuations for purchase accounting and impairment
testing
bull Fairness and solvency opinions
bull Litigation support for economic damages and
valuation and shareholder disputes
Mercer Capitalwwwmercercapitalcom
copy 2019 Mercer Capital wwwmercercapitalcom 14
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Date Announced
Deal Status
Total Deal Value
Deal Value to
Target Buyer Sales EBITDA
MarineNone during third quarter 2019
Air Freight amp LogisticsPremium Transportation Logistics LLC Senior Management 7119 Closed - - -
Argus Carriers LtdInter-Urban Delivery Service Ltd Mullen Group Ltd (TSXMTL) 7219 Closed - - -
Worldwide Perishables Canada Co Kuehne + Nagel International AG (SWXKNIN) 72419 Closed - - -
Unitrans International Corporation AIT Worldwide Logistics Inc 8519 Closed - - -
GTO Global Logistics Inc Air Menzies International Limited 81219 Closed $23 - -
Ritter Transportation Systems IncRitter Transport IncEVO Transportation amp Energy Services Inc (OTCP-KEVOA)
92019 Closed $137 - -
Source SampP Global Market Intelligencein USD millions
Select Transactions (continued)
copy 2019 Mercer Capital wwwmercercapitalcom 15
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Public Company Performance
Monthly Median TEVEBITDA Multiples (as of Sept 30 2019)
copy 2019 Mercer Capital wwwmercercapitalcom 16
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
TruckloadJB Hunt Transport Services Inc JBHT $11065 21 $13303 11 830 $9033 13 15x 115x 257x 101x 206x
TFI International Inc TFII $3064 -11 $4222 40 660 $3924 14 11x 77x 107x 66x 103x
Ryder System Inc R $5177 11 $10550 74 337 $8905 27 12x 44x 213x 48x 491x
Knight-Swift Transportation Holdings Inc KNX $3630 4 $7269 15 399 $5042 19 14x 75x 157x 77x 162x
Landstar System Inc LSTR $11258 1 $4327 -3 1429 $4277 8 10x 120x 181x 124x 191x
Werner Enterprises Inc WERN $3530 19 $2794 13 674 $2488 19 11x 59x 141x 60x 151x
Schneider National Inc SNDR $2172 14 $3927 2 584 $4912 13 08x 61x 219x 65x 169x
Heartland Express Inc HTLD $2151 19 $1558 -13 519 $577 29 27x 92x 213x 77x 216x
Daseke Inc DSKE $250 -31 $968 77 8 $1781 9 05x 61x nm 59x nm
Marten Transport Ltd MRTN $2078 4 $1054 -8 562 $830 19 13x 65x 186x 61x 188x
Universal Logistics Holdings Inc ULH $2328 14 $1071 41 772 $1522 11 07x 62x 168x 65x 97x
Covenant Transportation Group Inc CVTI $1644 12 $598 49 276 $934 13 06x 51x 127x 61x 216x
PAM Transportation Services Inc PTSI $5911 -5 $539 37 581 $529 19 10x 55x 123x 53x 117x
USA Truck Inc USAK $803 -21 $259 74 283 $540 9 05x 54x 123x 58x 824x
Titanium Transportation Group Inc TTR $098 -3 $98 63 240 $126 9 08x 86x 173x 70x 290x
Patriot Transportation Holding Inc PATI $1790 5 $39 -52 24 $111 8 04x 44x 273x nm nm
Median 5 26 130 10x 61x 173x 65x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 17
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Less-Than-TruckloadOld Dominion Freight Line Inc ODFL $16997 14 $13483 -1 1448 $4127 27 33x 122x 216x 124x 220x
Saia Inc SAIA $9370 45 $2657 9 791 $1750 16 15x 97x 204x 96x 213x
ArcBest Corporation ARCB $3045 8 $833 7 356 $3045 7 03x 42x 128x 41x 119x
YRC Worldwide Inc YRCW $302 -25 $1202 91 138 $4959 4 02x 62x nm 59x nm
Roadrunner Transportation Systems Inc RRTS $1036 8 $778 50 -708 $1999 -2 04x -248x nm -344x nm
Median 8 9 7 04x 62x 204x 59x 213x
Air FreightAtlas Air Worldwide Holdings Inc AAWW $2523 -43 $3520 81 228 $2757 18 13x 70x 20x 74x 56x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Cargojet Inc CJT $7110 11 $1459 35 409 $362 25 40x 164x 565x 125x 674x
Median -3 44 21 17x 96x 163x 97x 180x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 18
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
MarineKirby Corporation KEX $8216 4 $6663 26 307 $2904 18 23x 129x 427x 132x 283x
Triton International Limited TRTN $3384 3 $9951 73 453 $1420 93 70x 75x 74x 80x 74x
Matson Inc MATX $3751 -3 $2674 40 269 $2227 9 12x 128x 183x 99x 194x
Seaspan Corporation SSW $1063 8 $6540 65 380 $1138 63 57x 91x 53x 92x 135x
Textainer Group Holdings Limited TGH $991 -2 $3963 86 286 $706 67 56x 84x 142x 85x 101x
Costamare Inc CMRE $607 18 $2328 69 410 $460 64 51x 79x 86x 71x 70x
Eagle Bulk Shipping Inc EGLE $438 -17 $653 49 139 $308 17 21x 124x nm 113x nm
Navios Maritime Partners LP NMM $1773 31 $650 69 230 $216 47 30x 64x 1495x 57x 67x
Pangaea Logistics Solutions Ltd PANL $321 -4 $350 59 424 $384 13 09x 70x 92x 69x 68x
Global Ship Lease Inc GSL $765 4 $918 86 638 $244 58 38x 65x nm 58x 48x
Sino-Global Shipping America Ltd SINO $076 7 $4 -197 -1710 $47 -8 01x -11x nm nm nm
Median 4 65 30x 79x 117x 83x 74x
RailroadsUnion Pacific Corporation UNP $16198 -4 $140317 19 891 $22253 49 63x 129x 188x 129x 190x
Canadian National Railway Company CNR $8986 -3 $74929 14 915 $11437 51 66x 129x 190x 135x 201x
CSX Corporation CSX $6927 -10 $69900 21 833 $12195 52 57x 109x 162x 109x 165x
Norfolk Southern Corporation NSC $17966 -10 $59393 20 706 $11502 46 52x 112x 172x 115x 177x
Canadian Pacific Railway Limited CP $22240 -6 $37519 18 1002 $5838 54 64x 119x 176x 128x 181x
Kansas City Southern KSU $13301 9 $16407 19 670 $2831 49 58x 119x 232x 117x 191x
Genesee amp Wyoming Inc GWR $11051 11 $9310 32 308 $2289 29 41x 142x 296x 139x 267x
Median -4 19 58x 119x 188x 128x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 19
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Logistics amp IntermodalUnited Parcel Service Inc UPS $11982 16 $124013 17 704 $73374 11 17x 157x 206x 118x 159x
FedEx Corporation FDX $14557 -11 $68386 44 155 $69200 13 10x 78x 104x 81x 95x
Expeditors International of Washington Inc EXPD $7429 -2 $11979 -6 1426 $8366 10 14x 140x 201x 141x 210x
XPO Logistics Inc XPO $7157 24 $14173 53 407 $16901 9 08x 89x 164x 85x 180x
CH Robinson Worldwide Inc CHRW $8478 1 $12647 9 1244 $15654 6 08x 127x 173x 134x 191x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Hub Group Inc HUBG $4650 11 $1773 11 542 $3786 7 05x 65x 124x 66x 137x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Echo Global Logistics Inc ECHO $2265 9 $794 22 308 $2236 3 04x 118x 304x 97x 156x
Radiant Logistics Inc RLGT $517 -16 $288 11 502 $920 4 03x 76x 154x 71x 128x
Median 4 14 09x 103x 168x 91x 158x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
Mercer CapitalTransportation amp Logistics Industry Services
Contact Us
Copyright copy 2019 Mercer Capital Management Inc All rights reserved It is illegal under Federal law to reproduce this publication or any portion of its contents without the publisherrsquos permission Media quotations with source attribution are encouraged
Reporters requesting additional information or editorial comment should contact Barbara Walters Price at 9016852120 Mercer Capitalrsquos Industry Focus is published quarterly and does not constitute legal or financial consulting advice It is offered as an
information service to our clients and friends Those interested in specific guidance for legal or accounting matters should seek competent professional advice Inquiries to discuss specific valuation matters are welcomed To add your name to our mailing
list to receive this complimentary publication visit our web site at wwwmercercapitalcom
Mercer Capital provides valuation and transaction advisory services to the transportation amp logistics industry
Industry Segments
Mercer Capital serves the following industry
segments
bull Trucking
bull Air Freight
bull Marine
bull Railroads
bull Logistics amp Intermodal
Contact a Mercer Capital professional to discuss your needs in confidence
Timothy R Lee ASA
9013229740
leetmercercapitalcom
Nicholas J Heinz ASA
9016852120
heinznmercercapitalcom
Scott A Womack ASA MAFF
6153450234
womacksmercercapitalcom
Samantha L Albert ASA
9013229702
albertsmercercapitalcom
wwwmercercapitalcom
BUSINESS VALUATION amp FINANCIAL ADVISORY SERVICES
Services Provided
bull Valuation of transportation and logistics companies
bull Transaction advisory for acquisitions and
divestitures
bull Valuations for purchase accounting and impairment
testing
bull Fairness and solvency opinions
bull Litigation support for economic damages and
valuation and shareholder disputes
Mercer Capitalwwwmercercapitalcom
copy 2019 Mercer Capital wwwmercercapitalcom 15
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
Public Company Performance
Monthly Median TEVEBITDA Multiples (as of Sept 30 2019)
copy 2019 Mercer Capital wwwmercercapitalcom 16
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
TruckloadJB Hunt Transport Services Inc JBHT $11065 21 $13303 11 830 $9033 13 15x 115x 257x 101x 206x
TFI International Inc TFII $3064 -11 $4222 40 660 $3924 14 11x 77x 107x 66x 103x
Ryder System Inc R $5177 11 $10550 74 337 $8905 27 12x 44x 213x 48x 491x
Knight-Swift Transportation Holdings Inc KNX $3630 4 $7269 15 399 $5042 19 14x 75x 157x 77x 162x
Landstar System Inc LSTR $11258 1 $4327 -3 1429 $4277 8 10x 120x 181x 124x 191x
Werner Enterprises Inc WERN $3530 19 $2794 13 674 $2488 19 11x 59x 141x 60x 151x
Schneider National Inc SNDR $2172 14 $3927 2 584 $4912 13 08x 61x 219x 65x 169x
Heartland Express Inc HTLD $2151 19 $1558 -13 519 $577 29 27x 92x 213x 77x 216x
Daseke Inc DSKE $250 -31 $968 77 8 $1781 9 05x 61x nm 59x nm
Marten Transport Ltd MRTN $2078 4 $1054 -8 562 $830 19 13x 65x 186x 61x 188x
Universal Logistics Holdings Inc ULH $2328 14 $1071 41 772 $1522 11 07x 62x 168x 65x 97x
Covenant Transportation Group Inc CVTI $1644 12 $598 49 276 $934 13 06x 51x 127x 61x 216x
PAM Transportation Services Inc PTSI $5911 -5 $539 37 581 $529 19 10x 55x 123x 53x 117x
USA Truck Inc USAK $803 -21 $259 74 283 $540 9 05x 54x 123x 58x 824x
Titanium Transportation Group Inc TTR $098 -3 $98 63 240 $126 9 08x 86x 173x 70x 290x
Patriot Transportation Holding Inc PATI $1790 5 $39 -52 24 $111 8 04x 44x 273x nm nm
Median 5 26 130 10x 61x 173x 65x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 17
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Less-Than-TruckloadOld Dominion Freight Line Inc ODFL $16997 14 $13483 -1 1448 $4127 27 33x 122x 216x 124x 220x
Saia Inc SAIA $9370 45 $2657 9 791 $1750 16 15x 97x 204x 96x 213x
ArcBest Corporation ARCB $3045 8 $833 7 356 $3045 7 03x 42x 128x 41x 119x
YRC Worldwide Inc YRCW $302 -25 $1202 91 138 $4959 4 02x 62x nm 59x nm
Roadrunner Transportation Systems Inc RRTS $1036 8 $778 50 -708 $1999 -2 04x -248x nm -344x nm
Median 8 9 7 04x 62x 204x 59x 213x
Air FreightAtlas Air Worldwide Holdings Inc AAWW $2523 -43 $3520 81 228 $2757 18 13x 70x 20x 74x 56x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Cargojet Inc CJT $7110 11 $1459 35 409 $362 25 40x 164x 565x 125x 674x
Median -3 44 21 17x 96x 163x 97x 180x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 18
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
MarineKirby Corporation KEX $8216 4 $6663 26 307 $2904 18 23x 129x 427x 132x 283x
Triton International Limited TRTN $3384 3 $9951 73 453 $1420 93 70x 75x 74x 80x 74x
Matson Inc MATX $3751 -3 $2674 40 269 $2227 9 12x 128x 183x 99x 194x
Seaspan Corporation SSW $1063 8 $6540 65 380 $1138 63 57x 91x 53x 92x 135x
Textainer Group Holdings Limited TGH $991 -2 $3963 86 286 $706 67 56x 84x 142x 85x 101x
Costamare Inc CMRE $607 18 $2328 69 410 $460 64 51x 79x 86x 71x 70x
Eagle Bulk Shipping Inc EGLE $438 -17 $653 49 139 $308 17 21x 124x nm 113x nm
Navios Maritime Partners LP NMM $1773 31 $650 69 230 $216 47 30x 64x 1495x 57x 67x
Pangaea Logistics Solutions Ltd PANL $321 -4 $350 59 424 $384 13 09x 70x 92x 69x 68x
Global Ship Lease Inc GSL $765 4 $918 86 638 $244 58 38x 65x nm 58x 48x
Sino-Global Shipping America Ltd SINO $076 7 $4 -197 -1710 $47 -8 01x -11x nm nm nm
Median 4 65 30x 79x 117x 83x 74x
RailroadsUnion Pacific Corporation UNP $16198 -4 $140317 19 891 $22253 49 63x 129x 188x 129x 190x
Canadian National Railway Company CNR $8986 -3 $74929 14 915 $11437 51 66x 129x 190x 135x 201x
CSX Corporation CSX $6927 -10 $69900 21 833 $12195 52 57x 109x 162x 109x 165x
Norfolk Southern Corporation NSC $17966 -10 $59393 20 706 $11502 46 52x 112x 172x 115x 177x
Canadian Pacific Railway Limited CP $22240 -6 $37519 18 1002 $5838 54 64x 119x 176x 128x 181x
Kansas City Southern KSU $13301 9 $16407 19 670 $2831 49 58x 119x 232x 117x 191x
Genesee amp Wyoming Inc GWR $11051 11 $9310 32 308 $2289 29 41x 142x 296x 139x 267x
Median -4 19 58x 119x 188x 128x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 19
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Logistics amp IntermodalUnited Parcel Service Inc UPS $11982 16 $124013 17 704 $73374 11 17x 157x 206x 118x 159x
FedEx Corporation FDX $14557 -11 $68386 44 155 $69200 13 10x 78x 104x 81x 95x
Expeditors International of Washington Inc EXPD $7429 -2 $11979 -6 1426 $8366 10 14x 140x 201x 141x 210x
XPO Logistics Inc XPO $7157 24 $14173 53 407 $16901 9 08x 89x 164x 85x 180x
CH Robinson Worldwide Inc CHRW $8478 1 $12647 9 1244 $15654 6 08x 127x 173x 134x 191x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Hub Group Inc HUBG $4650 11 $1773 11 542 $3786 7 05x 65x 124x 66x 137x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Echo Global Logistics Inc ECHO $2265 9 $794 22 308 $2236 3 04x 118x 304x 97x 156x
Radiant Logistics Inc RLGT $517 -16 $288 11 502 $920 4 03x 76x 154x 71x 128x
Median 4 14 09x 103x 168x 91x 158x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
Mercer CapitalTransportation amp Logistics Industry Services
Contact Us
Copyright copy 2019 Mercer Capital Management Inc All rights reserved It is illegal under Federal law to reproduce this publication or any portion of its contents without the publisherrsquos permission Media quotations with source attribution are encouraged
Reporters requesting additional information or editorial comment should contact Barbara Walters Price at 9016852120 Mercer Capitalrsquos Industry Focus is published quarterly and does not constitute legal or financial consulting advice It is offered as an
information service to our clients and friends Those interested in specific guidance for legal or accounting matters should seek competent professional advice Inquiries to discuss specific valuation matters are welcomed To add your name to our mailing
list to receive this complimentary publication visit our web site at wwwmercercapitalcom
Mercer Capital provides valuation and transaction advisory services to the transportation amp logistics industry
Industry Segments
Mercer Capital serves the following industry
segments
bull Trucking
bull Air Freight
bull Marine
bull Railroads
bull Logistics amp Intermodal
Contact a Mercer Capital professional to discuss your needs in confidence
Timothy R Lee ASA
9013229740
leetmercercapitalcom
Nicholas J Heinz ASA
9016852120
heinznmercercapitalcom
Scott A Womack ASA MAFF
6153450234
womacksmercercapitalcom
Samantha L Albert ASA
9013229702
albertsmercercapitalcom
wwwmercercapitalcom
BUSINESS VALUATION amp FINANCIAL ADVISORY SERVICES
Services Provided
bull Valuation of transportation and logistics companies
bull Transaction advisory for acquisitions and
divestitures
bull Valuations for purchase accounting and impairment
testing
bull Fairness and solvency opinions
bull Litigation support for economic damages and
valuation and shareholder disputes
Mercer Capitalwwwmercercapitalcom
copy 2019 Mercer Capital wwwmercercapitalcom 16
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
TruckloadJB Hunt Transport Services Inc JBHT $11065 21 $13303 11 830 $9033 13 15x 115x 257x 101x 206x
TFI International Inc TFII $3064 -11 $4222 40 660 $3924 14 11x 77x 107x 66x 103x
Ryder System Inc R $5177 11 $10550 74 337 $8905 27 12x 44x 213x 48x 491x
Knight-Swift Transportation Holdings Inc KNX $3630 4 $7269 15 399 $5042 19 14x 75x 157x 77x 162x
Landstar System Inc LSTR $11258 1 $4327 -3 1429 $4277 8 10x 120x 181x 124x 191x
Werner Enterprises Inc WERN $3530 19 $2794 13 674 $2488 19 11x 59x 141x 60x 151x
Schneider National Inc SNDR $2172 14 $3927 2 584 $4912 13 08x 61x 219x 65x 169x
Heartland Express Inc HTLD $2151 19 $1558 -13 519 $577 29 27x 92x 213x 77x 216x
Daseke Inc DSKE $250 -31 $968 77 8 $1781 9 05x 61x nm 59x nm
Marten Transport Ltd MRTN $2078 4 $1054 -8 562 $830 19 13x 65x 186x 61x 188x
Universal Logistics Holdings Inc ULH $2328 14 $1071 41 772 $1522 11 07x 62x 168x 65x 97x
Covenant Transportation Group Inc CVTI $1644 12 $598 49 276 $934 13 06x 51x 127x 61x 216x
PAM Transportation Services Inc PTSI $5911 -5 $539 37 581 $529 19 10x 55x 123x 53x 117x
USA Truck Inc USAK $803 -21 $259 74 283 $540 9 05x 54x 123x 58x 824x
Titanium Transportation Group Inc TTR $098 -3 $98 63 240 $126 9 08x 86x 173x 70x 290x
Patriot Transportation Holding Inc PATI $1790 5 $39 -52 24 $111 8 04x 44x 273x nm nm
Median 5 26 130 10x 61x 173x 65x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 17
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Less-Than-TruckloadOld Dominion Freight Line Inc ODFL $16997 14 $13483 -1 1448 $4127 27 33x 122x 216x 124x 220x
Saia Inc SAIA $9370 45 $2657 9 791 $1750 16 15x 97x 204x 96x 213x
ArcBest Corporation ARCB $3045 8 $833 7 356 $3045 7 03x 42x 128x 41x 119x
YRC Worldwide Inc YRCW $302 -25 $1202 91 138 $4959 4 02x 62x nm 59x nm
Roadrunner Transportation Systems Inc RRTS $1036 8 $778 50 -708 $1999 -2 04x -248x nm -344x nm
Median 8 9 7 04x 62x 204x 59x 213x
Air FreightAtlas Air Worldwide Holdings Inc AAWW $2523 -43 $3520 81 228 $2757 18 13x 70x 20x 74x 56x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Cargojet Inc CJT $7110 11 $1459 35 409 $362 25 40x 164x 565x 125x 674x
Median -3 44 21 17x 96x 163x 97x 180x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 18
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
MarineKirby Corporation KEX $8216 4 $6663 26 307 $2904 18 23x 129x 427x 132x 283x
Triton International Limited TRTN $3384 3 $9951 73 453 $1420 93 70x 75x 74x 80x 74x
Matson Inc MATX $3751 -3 $2674 40 269 $2227 9 12x 128x 183x 99x 194x
Seaspan Corporation SSW $1063 8 $6540 65 380 $1138 63 57x 91x 53x 92x 135x
Textainer Group Holdings Limited TGH $991 -2 $3963 86 286 $706 67 56x 84x 142x 85x 101x
Costamare Inc CMRE $607 18 $2328 69 410 $460 64 51x 79x 86x 71x 70x
Eagle Bulk Shipping Inc EGLE $438 -17 $653 49 139 $308 17 21x 124x nm 113x nm
Navios Maritime Partners LP NMM $1773 31 $650 69 230 $216 47 30x 64x 1495x 57x 67x
Pangaea Logistics Solutions Ltd PANL $321 -4 $350 59 424 $384 13 09x 70x 92x 69x 68x
Global Ship Lease Inc GSL $765 4 $918 86 638 $244 58 38x 65x nm 58x 48x
Sino-Global Shipping America Ltd SINO $076 7 $4 -197 -1710 $47 -8 01x -11x nm nm nm
Median 4 65 30x 79x 117x 83x 74x
RailroadsUnion Pacific Corporation UNP $16198 -4 $140317 19 891 $22253 49 63x 129x 188x 129x 190x
Canadian National Railway Company CNR $8986 -3 $74929 14 915 $11437 51 66x 129x 190x 135x 201x
CSX Corporation CSX $6927 -10 $69900 21 833 $12195 52 57x 109x 162x 109x 165x
Norfolk Southern Corporation NSC $17966 -10 $59393 20 706 $11502 46 52x 112x 172x 115x 177x
Canadian Pacific Railway Limited CP $22240 -6 $37519 18 1002 $5838 54 64x 119x 176x 128x 181x
Kansas City Southern KSU $13301 9 $16407 19 670 $2831 49 58x 119x 232x 117x 191x
Genesee amp Wyoming Inc GWR $11051 11 $9310 32 308 $2289 29 41x 142x 296x 139x 267x
Median -4 19 58x 119x 188x 128x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 19
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Logistics amp IntermodalUnited Parcel Service Inc UPS $11982 16 $124013 17 704 $73374 11 17x 157x 206x 118x 159x
FedEx Corporation FDX $14557 -11 $68386 44 155 $69200 13 10x 78x 104x 81x 95x
Expeditors International of Washington Inc EXPD $7429 -2 $11979 -6 1426 $8366 10 14x 140x 201x 141x 210x
XPO Logistics Inc XPO $7157 24 $14173 53 407 $16901 9 08x 89x 164x 85x 180x
CH Robinson Worldwide Inc CHRW $8478 1 $12647 9 1244 $15654 6 08x 127x 173x 134x 191x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Hub Group Inc HUBG $4650 11 $1773 11 542 $3786 7 05x 65x 124x 66x 137x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Echo Global Logistics Inc ECHO $2265 9 $794 22 308 $2236 3 04x 118x 304x 97x 156x
Radiant Logistics Inc RLGT $517 -16 $288 11 502 $920 4 03x 76x 154x 71x 128x
Median 4 14 09x 103x 168x 91x 158x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
Mercer CapitalTransportation amp Logistics Industry Services
Contact Us
Copyright copy 2019 Mercer Capital Management Inc All rights reserved It is illegal under Federal law to reproduce this publication or any portion of its contents without the publisherrsquos permission Media quotations with source attribution are encouraged
Reporters requesting additional information or editorial comment should contact Barbara Walters Price at 9016852120 Mercer Capitalrsquos Industry Focus is published quarterly and does not constitute legal or financial consulting advice It is offered as an
information service to our clients and friends Those interested in specific guidance for legal or accounting matters should seek competent professional advice Inquiries to discuss specific valuation matters are welcomed To add your name to our mailing
list to receive this complimentary publication visit our web site at wwwmercercapitalcom
Mercer Capital provides valuation and transaction advisory services to the transportation amp logistics industry
Industry Segments
Mercer Capital serves the following industry
segments
bull Trucking
bull Air Freight
bull Marine
bull Railroads
bull Logistics amp Intermodal
Contact a Mercer Capital professional to discuss your needs in confidence
Timothy R Lee ASA
9013229740
leetmercercapitalcom
Nicholas J Heinz ASA
9016852120
heinznmercercapitalcom
Scott A Womack ASA MAFF
6153450234
womacksmercercapitalcom
Samantha L Albert ASA
9013229702
albertsmercercapitalcom
wwwmercercapitalcom
BUSINESS VALUATION amp FINANCIAL ADVISORY SERVICES
Services Provided
bull Valuation of transportation and logistics companies
bull Transaction advisory for acquisitions and
divestitures
bull Valuations for purchase accounting and impairment
testing
bull Fairness and solvency opinions
bull Litigation support for economic damages and
valuation and shareholder disputes
Mercer Capitalwwwmercercapitalcom
copy 2019 Mercer Capital wwwmercercapitalcom 17
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Less-Than-TruckloadOld Dominion Freight Line Inc ODFL $16997 14 $13483 -1 1448 $4127 27 33x 122x 216x 124x 220x
Saia Inc SAIA $9370 45 $2657 9 791 $1750 16 15x 97x 204x 96x 213x
ArcBest Corporation ARCB $3045 8 $833 7 356 $3045 7 03x 42x 128x 41x 119x
YRC Worldwide Inc YRCW $302 -25 $1202 91 138 $4959 4 02x 62x nm 59x nm
Roadrunner Transportation Systems Inc RRTS $1036 8 $778 50 -708 $1999 -2 04x -248x nm -344x nm
Median 8 9 7 04x 62x 204x 59x 213x
Air FreightAtlas Air Worldwide Holdings Inc AAWW $2523 -43 $3520 81 228 $2757 18 13x 70x 20x 74x 56x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Cargojet Inc CJT $7110 11 $1459 35 409 $362 25 40x 164x 565x 125x 674x
Median -3 44 21 17x 96x 163x 97x 180x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 18
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
MarineKirby Corporation KEX $8216 4 $6663 26 307 $2904 18 23x 129x 427x 132x 283x
Triton International Limited TRTN $3384 3 $9951 73 453 $1420 93 70x 75x 74x 80x 74x
Matson Inc MATX $3751 -3 $2674 40 269 $2227 9 12x 128x 183x 99x 194x
Seaspan Corporation SSW $1063 8 $6540 65 380 $1138 63 57x 91x 53x 92x 135x
Textainer Group Holdings Limited TGH $991 -2 $3963 86 286 $706 67 56x 84x 142x 85x 101x
Costamare Inc CMRE $607 18 $2328 69 410 $460 64 51x 79x 86x 71x 70x
Eagle Bulk Shipping Inc EGLE $438 -17 $653 49 139 $308 17 21x 124x nm 113x nm
Navios Maritime Partners LP NMM $1773 31 $650 69 230 $216 47 30x 64x 1495x 57x 67x
Pangaea Logistics Solutions Ltd PANL $321 -4 $350 59 424 $384 13 09x 70x 92x 69x 68x
Global Ship Lease Inc GSL $765 4 $918 86 638 $244 58 38x 65x nm 58x 48x
Sino-Global Shipping America Ltd SINO $076 7 $4 -197 -1710 $47 -8 01x -11x nm nm nm
Median 4 65 30x 79x 117x 83x 74x
RailroadsUnion Pacific Corporation UNP $16198 -4 $140317 19 891 $22253 49 63x 129x 188x 129x 190x
Canadian National Railway Company CNR $8986 -3 $74929 14 915 $11437 51 66x 129x 190x 135x 201x
CSX Corporation CSX $6927 -10 $69900 21 833 $12195 52 57x 109x 162x 109x 165x
Norfolk Southern Corporation NSC $17966 -10 $59393 20 706 $11502 46 52x 112x 172x 115x 177x
Canadian Pacific Railway Limited CP $22240 -6 $37519 18 1002 $5838 54 64x 119x 176x 128x 181x
Kansas City Southern KSU $13301 9 $16407 19 670 $2831 49 58x 119x 232x 117x 191x
Genesee amp Wyoming Inc GWR $11051 11 $9310 32 308 $2289 29 41x 142x 296x 139x 267x
Median -4 19 58x 119x 188x 128x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 19
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Logistics amp IntermodalUnited Parcel Service Inc UPS $11982 16 $124013 17 704 $73374 11 17x 157x 206x 118x 159x
FedEx Corporation FDX $14557 -11 $68386 44 155 $69200 13 10x 78x 104x 81x 95x
Expeditors International of Washington Inc EXPD $7429 -2 $11979 -6 1426 $8366 10 14x 140x 201x 141x 210x
XPO Logistics Inc XPO $7157 24 $14173 53 407 $16901 9 08x 89x 164x 85x 180x
CH Robinson Worldwide Inc CHRW $8478 1 $12647 9 1244 $15654 6 08x 127x 173x 134x 191x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Hub Group Inc HUBG $4650 11 $1773 11 542 $3786 7 05x 65x 124x 66x 137x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Echo Global Logistics Inc ECHO $2265 9 $794 22 308 $2236 3 04x 118x 304x 97x 156x
Radiant Logistics Inc RLGT $517 -16 $288 11 502 $920 4 03x 76x 154x 71x 128x
Median 4 14 09x 103x 168x 91x 158x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
Mercer CapitalTransportation amp Logistics Industry Services
Contact Us
Copyright copy 2019 Mercer Capital Management Inc All rights reserved It is illegal under Federal law to reproduce this publication or any portion of its contents without the publisherrsquos permission Media quotations with source attribution are encouraged
Reporters requesting additional information or editorial comment should contact Barbara Walters Price at 9016852120 Mercer Capitalrsquos Industry Focus is published quarterly and does not constitute legal or financial consulting advice It is offered as an
information service to our clients and friends Those interested in specific guidance for legal or accounting matters should seek competent professional advice Inquiries to discuss specific valuation matters are welcomed To add your name to our mailing
list to receive this complimentary publication visit our web site at wwwmercercapitalcom
Mercer Capital provides valuation and transaction advisory services to the transportation amp logistics industry
Industry Segments
Mercer Capital serves the following industry
segments
bull Trucking
bull Air Freight
bull Marine
bull Railroads
bull Logistics amp Intermodal
Contact a Mercer Capital professional to discuss your needs in confidence
Timothy R Lee ASA
9013229740
leetmercercapitalcom
Nicholas J Heinz ASA
9016852120
heinznmercercapitalcom
Scott A Womack ASA MAFF
6153450234
womacksmercercapitalcom
Samantha L Albert ASA
9013229702
albertsmercercapitalcom
wwwmercercapitalcom
BUSINESS VALUATION amp FINANCIAL ADVISORY SERVICES
Services Provided
bull Valuation of transportation and logistics companies
bull Transaction advisory for acquisitions and
divestitures
bull Valuations for purchase accounting and impairment
testing
bull Fairness and solvency opinions
bull Litigation support for economic damages and
valuation and shareholder disputes
Mercer Capitalwwwmercercapitalcom
copy 2019 Mercer Capital wwwmercercapitalcom 18
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
MarineKirby Corporation KEX $8216 4 $6663 26 307 $2904 18 23x 129x 427x 132x 283x
Triton International Limited TRTN $3384 3 $9951 73 453 $1420 93 70x 75x 74x 80x 74x
Matson Inc MATX $3751 -3 $2674 40 269 $2227 9 12x 128x 183x 99x 194x
Seaspan Corporation SSW $1063 8 $6540 65 380 $1138 63 57x 91x 53x 92x 135x
Textainer Group Holdings Limited TGH $991 -2 $3963 86 286 $706 67 56x 84x 142x 85x 101x
Costamare Inc CMRE $607 18 $2328 69 410 $460 64 51x 79x 86x 71x 70x
Eagle Bulk Shipping Inc EGLE $438 -17 $653 49 139 $308 17 21x 124x nm 113x nm
Navios Maritime Partners LP NMM $1773 31 $650 69 230 $216 47 30x 64x 1495x 57x 67x
Pangaea Logistics Solutions Ltd PANL $321 -4 $350 59 424 $384 13 09x 70x 92x 69x 68x
Global Ship Lease Inc GSL $765 4 $918 86 638 $244 58 38x 65x nm 58x 48x
Sino-Global Shipping America Ltd SINO $076 7 $4 -197 -1710 $47 -8 01x -11x nm nm nm
Median 4 65 30x 79x 117x 83x 74x
RailroadsUnion Pacific Corporation UNP $16198 -4 $140317 19 891 $22253 49 63x 129x 188x 129x 190x
Canadian National Railway Company CNR $8986 -3 $74929 14 915 $11437 51 66x 129x 190x 135x 201x
CSX Corporation CSX $6927 -10 $69900 21 833 $12195 52 57x 109x 162x 109x 165x
Norfolk Southern Corporation NSC $17966 -10 $59393 20 706 $11502 46 52x 112x 172x 115x 177x
Canadian Pacific Railway Limited CP $22240 -6 $37519 18 1002 $5838 54 64x 119x 176x 128x 181x
Kansas City Southern KSU $13301 9 $16407 19 670 $2831 49 58x 119x 232x 117x 191x
Genesee amp Wyoming Inc GWR $11051 11 $9310 32 308 $2289 29 41x 142x 296x 139x 267x
Median -4 19 58x 119x 188x 128x 190x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
copy 2019 Mercer Capital wwwmercercapitalcom 19
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Logistics amp IntermodalUnited Parcel Service Inc UPS $11982 16 $124013 17 704 $73374 11 17x 157x 206x 118x 159x
FedEx Corporation FDX $14557 -11 $68386 44 155 $69200 13 10x 78x 104x 81x 95x
Expeditors International of Washington Inc EXPD $7429 -2 $11979 -6 1426 $8366 10 14x 140x 201x 141x 210x
XPO Logistics Inc XPO $7157 24 $14173 53 407 $16901 9 08x 89x 164x 85x 180x
CH Robinson Worldwide Inc CHRW $8478 1 $12647 9 1244 $15654 6 08x 127x 173x 134x 191x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Hub Group Inc HUBG $4650 11 $1773 11 542 $3786 7 05x 65x 124x 66x 137x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Echo Global Logistics Inc ECHO $2265 9 $794 22 308 $2236 3 04x 118x 304x 97x 156x
Radiant Logistics Inc RLGT $517 -16 $288 11 502 $920 4 03x 76x 154x 71x 128x
Median 4 14 09x 103x 168x 91x 158x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
Mercer CapitalTransportation amp Logistics Industry Services
Contact Us
Copyright copy 2019 Mercer Capital Management Inc All rights reserved It is illegal under Federal law to reproduce this publication or any portion of its contents without the publisherrsquos permission Media quotations with source attribution are encouraged
Reporters requesting additional information or editorial comment should contact Barbara Walters Price at 9016852120 Mercer Capitalrsquos Industry Focus is published quarterly and does not constitute legal or financial consulting advice It is offered as an
information service to our clients and friends Those interested in specific guidance for legal or accounting matters should seek competent professional advice Inquiries to discuss specific valuation matters are welcomed To add your name to our mailing
list to receive this complimentary publication visit our web site at wwwmercercapitalcom
Mercer Capital provides valuation and transaction advisory services to the transportation amp logistics industry
Industry Segments
Mercer Capital serves the following industry
segments
bull Trucking
bull Air Freight
bull Marine
bull Railroads
bull Logistics amp Intermodal
Contact a Mercer Capital professional to discuss your needs in confidence
Timothy R Lee ASA
9013229740
leetmercercapitalcom
Nicholas J Heinz ASA
9016852120
heinznmercercapitalcom
Scott A Womack ASA MAFF
6153450234
womacksmercercapitalcom
Samantha L Albert ASA
9013229702
albertsmercercapitalcom
wwwmercercapitalcom
BUSINESS VALUATION amp FINANCIAL ADVISORY SERVICES
Services Provided
bull Valuation of transportation and logistics companies
bull Transaction advisory for acquisitions and
divestitures
bull Valuations for purchase accounting and impairment
testing
bull Fairness and solvency opinions
bull Litigation support for economic damages and
valuation and shareholder disputes
Mercer Capitalwwwmercercapitalcom
copy 2019 Mercer Capital wwwmercercapitalcom 19
Mercer Capitalrsquos Value Focus Transportation amp Logistics Third Quarter 2019
LTM LTM Multiples Forward Multiples
Company Name TickerPrice at 93019
QoQ Price
ChangeEnterprise
Value
Debt Total
CapitalReturn on
Assets RevEBITDA Margin
EV Rev
EV EBITDA
Price Earn
EV EBITDA
Price Earn
Logistics amp IntermodalUnited Parcel Service Inc UPS $11982 16 $124013 17 704 $73374 11 17x 157x 206x 118x 159x
FedEx Corporation FDX $14557 -11 $68386 44 155 $69200 13 10x 78x 104x 81x 95x
Expeditors International of Washington Inc EXPD $7429 -2 $11979 -6 1426 $8366 10 14x 140x 201x 141x 210x
XPO Logistics Inc XPO $7157 24 $14173 53 407 $16901 9 08x 89x 164x 85x 180x
CH Robinson Worldwide Inc CHRW $8478 1 $12647 9 1244 $15654 6 08x 127x 173x 134x 191x
Forward Air Corporation FWRD $6372 8 $1997 10 883 $1385 12 14x 123x 199x 121x 204x
Hub Group Inc HUBG $4650 11 $1773 11 542 $3786 7 05x 65x 124x 66x 137x
Air Transport Services Group Inc ATSG $2102 -14 $2682 54 460 $1330 31 20x 65x 128x 60x 157x
Echo Global Logistics Inc ECHO $2265 9 $794 22 308 $2236 3 04x 118x 304x 97x 156x
Radiant Logistics Inc RLGT $517 -16 $288 11 502 $920 4 03x 76x 154x 71x 128x
Median 4 14 09x 103x 168x 91x 158x
Source SampP Global Market IntelligenceUSD millions except per share values | Financial statement data as of Q3
Publicly Traded Companies
Mercer CapitalTransportation amp Logistics Industry Services
Contact Us
Copyright copy 2019 Mercer Capital Management Inc All rights reserved It is illegal under Federal law to reproduce this publication or any portion of its contents without the publisherrsquos permission Media quotations with source attribution are encouraged
Reporters requesting additional information or editorial comment should contact Barbara Walters Price at 9016852120 Mercer Capitalrsquos Industry Focus is published quarterly and does not constitute legal or financial consulting advice It is offered as an
information service to our clients and friends Those interested in specific guidance for legal or accounting matters should seek competent professional advice Inquiries to discuss specific valuation matters are welcomed To add your name to our mailing
list to receive this complimentary publication visit our web site at wwwmercercapitalcom
Mercer Capital provides valuation and transaction advisory services to the transportation amp logistics industry
Industry Segments
Mercer Capital serves the following industry
segments
bull Trucking
bull Air Freight
bull Marine
bull Railroads
bull Logistics amp Intermodal
Contact a Mercer Capital professional to discuss your needs in confidence
Timothy R Lee ASA
9013229740
leetmercercapitalcom
Nicholas J Heinz ASA
9016852120
heinznmercercapitalcom
Scott A Womack ASA MAFF
6153450234
womacksmercercapitalcom
Samantha L Albert ASA
9013229702
albertsmercercapitalcom
wwwmercercapitalcom
BUSINESS VALUATION amp FINANCIAL ADVISORY SERVICES
Services Provided
bull Valuation of transportation and logistics companies
bull Transaction advisory for acquisitions and
divestitures
bull Valuations for purchase accounting and impairment
testing
bull Fairness and solvency opinions
bull Litigation support for economic damages and
valuation and shareholder disputes
Mercer Capitalwwwmercercapitalcom
Mercer CapitalTransportation amp Logistics Industry Services
Contact Us
Copyright copy 2019 Mercer Capital Management Inc All rights reserved It is illegal under Federal law to reproduce this publication or any portion of its contents without the publisherrsquos permission Media quotations with source attribution are encouraged
Reporters requesting additional information or editorial comment should contact Barbara Walters Price at 9016852120 Mercer Capitalrsquos Industry Focus is published quarterly and does not constitute legal or financial consulting advice It is offered as an
information service to our clients and friends Those interested in specific guidance for legal or accounting matters should seek competent professional advice Inquiries to discuss specific valuation matters are welcomed To add your name to our mailing
list to receive this complimentary publication visit our web site at wwwmercercapitalcom
Mercer Capital provides valuation and transaction advisory services to the transportation amp logistics industry
Industry Segments
Mercer Capital serves the following industry
segments
bull Trucking
bull Air Freight
bull Marine
bull Railroads
bull Logistics amp Intermodal
Contact a Mercer Capital professional to discuss your needs in confidence
Timothy R Lee ASA
9013229740
leetmercercapitalcom
Nicholas J Heinz ASA
9016852120
heinznmercercapitalcom
Scott A Womack ASA MAFF
6153450234
womacksmercercapitalcom
Samantha L Albert ASA
9013229702
albertsmercercapitalcom
wwwmercercapitalcom
BUSINESS VALUATION amp FINANCIAL ADVISORY SERVICES
Services Provided
bull Valuation of transportation and logistics companies
bull Transaction advisory for acquisitions and
divestitures
bull Valuations for purchase accounting and impairment
testing
bull Fairness and solvency opinions
bull Litigation support for economic damages and
valuation and shareholder disputes
Mercer Capitalwwwmercercapitalcom
Mercer Capitalwwwmercercapitalcom
Top Related