Automotive Aftermarket Stock Performance *

Transcription

1 Weekly Automotive Aftermarket Intelligence Report March 30, 205 AUTOMOTIVE AFTERMARKET Automotive Aftermarket Stock Performance * 5% SLIPPING LEADING Boyd 0% Dorman Pep Boys Cooper Tire Uni-Select AutoZone MPA Last Month s Return 5% 0% (5%) S&P 500 Last Month s Return (2.%) O'Reilly AutoNation Monro Penske KAR Lithia Sonic Remy Copart CarMax Federal-Mogul Standard Motor Genuine Parts Advance Auto Snap-on Rush Tenneco Solera LKQ Group Asbury Goodyear (0%) (5%) S&P 500 Last Week s Return (2.2%) (20%) (25%) LAGGING U.S. Auto Parts IMPROVING (0%) (5%) 0% 5% 0% *Size of the bubble represents relative market capitalization Source: CapitalIQ Last Week s Return Segment Index Percent Change Week Month LTM Suppliers 0.8% (0.3%) 4.4% Retailers & Distributors 0.3% 2.0% 30.% Independent Service Providers & Dealers (0.%).3% 33.4% Collision (0.0%) (0.4%) 4.6% BB&T Automotive Aftermarket Index 0.4%.% 24.6% S&P 500 (2.2%) (2.%) 4.0% Weighted by market capitalization

2 Automotive Aftermarket Stock Performance 40% 30% 20% 0% 0% (0%) (20%) Apr-4 May-4 Jun-4 Jul-4 Aug-4 Sep-4 Oct-4 Nov-4 Dec-4 Jan-5 Feb-5 Mar-5 Source: Capital IQ Suppliers Independent Service Providers & Dealers BB&T Automotive Aftermarket Index Retailers & Distributors Collision S&P 500 Index Most Recent Quarter Sales Growth (Year-Over-Year) 80% 70% 75.0% 60% 58.8% 50% 40% 45.4% 48.7% 30% 28.% 27.9% 20% 0% 0% (0%) (4.8%) 2.5% 6.0% (9.%) 8.5% (0.3%)(.3%) (5.8%) 8.% 2.% 7.7% 8.7% 8.8% 9.4%.6% 5.5%.4% 2.% 0.4% 9.2% 6.2% 2.%.6% 2.% (3.6%) 8.3% Cooper Tire & Rubber Co. Dorman Products, Inc. Federal-Mogul Corp. Goodyear Tire & Rubber Co. Motorcar Parts of America Inc. Remy International, Inc. Snap-on Inc. Standard Motor Products Inc. Tenneco Inc. Advance Auto Parts Inc. AutoZone, Inc. Genuine Parts Company KAR Auction Services, Inc. O'Reilly Automotive Inc. Pep Boys - Manny, Moe & Jack U.S. Auto Parts Network, Inc. Uni-Select Inc. Asbury Automotive Group, Inc. AutoNation Inc. CarMax Inc. Group Automotive Inc. Lithia Motors Inc. Monro Muffler Brake Inc. Penske Automotive Group, Inc. Pep Boys - Manny, Moe & Jack Rush Enterprises, Inc. Sonic Automotive Inc. Boyd Group Income Fund Copart, Inc. KAR Auction Services, Inc. LKQ Corp. Solera Holdings Inc. Suppliers Retailers & Distributors Independent Service Providers & Dealers Collision Source: Capital IQ 2

3 Enterprise Value / Last 2 Months EBITDA Multiples,2,3 SUPPLIERS RETAILERS & DISTRIBUTORS 8.2x 8.3x 8.5x 8.4x.2x 2.2x 9.9x INDEPENDENT SERVICE PROVIDERS & DEALERS COLLISION 2.7x 3.5x 3.7x.6x 5.x 3.4x 2.9x 2.2x TOTAL AUTOMOTIVE AFTERMARKET.x.9x 0.6x Enterprise Value = Market Capitalization + Debt Cash; EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization 2 Pep Boys is included in both Retailers & Distributors and Independent Service Providers & Dealers 3 KAR is included in both Retailers & Distributors and Collision Source: Capital IQ 3

4 Valuation Metrics As of 3/27/205 ($ in millions, except per share) SUPPLIERS Stock 52 Week Market Price / P / E Forward PEG TEV / Revenue TEV / EBITDA Ticker Price High / Low Cap TEV TBV LTM CY 205 CY 206 CY 205 CY 206 LTM CY 205 CY 206 LTM CY 205 CY 206 Cooper Tire & Rubber Co. CTB $4.26 $4.44 / $23.40 $2,368 $2, x 3.2x 3.8x 2.3x 0.8x 0.7x 0.6x 0.7x 0.7x 4.3x 5.2x 4.9x Dorman Products, Inc. DORM $48.55 $60.99 / $37.22,725, x 5.0x.x 0.9x 2.2x.8x 0.9x 9.8x 8.7x Federal-Mogul Corp. FDML $2.89 $2.2 / $2.45 2,79 4,640 NM 6.6x 6.2x.5x NA NA 0.6x 0.6x 0.5x 7.0x 7.2x Goodyear Tire & Rubber Co. GT $26.29 $28.98 / $8.87 7,092 2,42 2.5x 2.7x 9.0x 7.8x NA NA 0.7x 0.7x 0.7x 5.4x 4.9x 4.6x Motorcar Parts of America, Inc. MPAA $27.96 $36.43 / $ x 34.4x 6.x 4.7x 0.7x 0.6x.7x.6x.4x NM 7.7x 6.3x Remy International, Inc. REMY $22.83 $27.30 / $ NM 32.9x.9x 0.9x 0.8x 0.8x 0.8x 0.8x 7.6x 7.0x 6.2x Snap-on, Inc. SNA $44.06 $48.4 / $ ,402 9, x 2.9x 8.4x 6.4x.5x.4x 2.6x 2.7x 2.5x 2.x.2x 0.3x Standard Motor Products, Inc. SMP $4.7 $45.80 / $ x 6.5x 4.5x 3.0x.4x.2x.0x.0x 0.9x 8.8x NA Tenneco, Inc. TEN $55.85 $69.22 / $ ,423 4, x 4.5x.4x 9.8x 0.9x 0.8x 0.5x 0.5x 0.5x 5.9x 5.3x 4.9x MEAN $3,04 $4, X 20.3X 4.5X 2.5X.X 0.9X.2X.2X.X 7.8X 7.4X 6.5X MEDIAN $2,79 $2, X 6.6X 4.5X 2.3X 0.9X 0.8X 0.8X 0.8X 0.8X 7.3X 7.2X 6.X RETAILERS & DISTRIBUTORS Advance Auto Parts, Inc. AAP $5.39 $65.00 / $5.76 $,073 $2, x 2 7.7x 5.5x.2x.0x.3x.3x.2x 0.2x 9.4x 8.6x AutoZone, Inc. AZO $68.34 $ / $ ,64 25,906 NM 20.9x 9.0x 7.0x.4x.3x 2.6x 2.6x 2.4x 2.x.6x.0x Genuine Parts Company GPC $92.93 $09.00 / $82.5 4,90 4, x 20.5x 9.x 7.6x 2.7x 2.5x.0x 0.9x 0.9x.7x 0.7x 0.x KAR Auction Services, Inc. KAR $36.95 $37.73 / $25.9 5,220 7,687 NM 28.4x 2.5x 8.9x.6x.4x 3.3x 3.x 2.9x 3.4x.8x 0.9x O'Reilly Automotive, Inc. ORLY $25.42 $27.60 / $4.08 2,930 23, x 29.9x 25.2x 22.x.5x.3x 3.2x 3.0x 2.8x 5.7x 4.x 3.x Pep Boys - Manny, Moe & Jack PBY $9.54 $3.22 / $ x NM NM 33.5x NM NA 0.4x 0.4x 0.4x 9.5x 8.5x 6.2x U.S. Auto Parts Network, Inc. PRTS $2.4 $4.09 / $ x NM NM NM NM NM 0.3x 0.3x 0.3x 6.3x 3.5x 8.8x Uni-Select, Inc. UNS $43.99 $44.57 / $ ,40 5.0x 24.6x 9.0x 8.4x NM NM 0.8x.x.2x 2.9x 5.6x 6.5x MEAN $9,443 $0,84 3.0X 24.X 20.3X 20.4X.7X.5X.6X.6X.5X 2.7X.9X 0.7X MEDIAN $8,47 $0,57 6.2X 22.8X 9.0X 8.4X.5X.3X.X.2X.2X 2.5X.7X 0.5X INDEPENDENT SERVICE PROVIDERS & DEALERS Asbury Automotive Group, Inc. ABG $8.54 $82.84 / $52.88 $2,33 $3,872 8.x 5.8x 4.x.0x 0.9x 0.7x 0.6x 0.6x 3.0x 2.2x.3x AutoNation, Inc. AN $63.00 $64.95 / $46.6 7,55 2, x 7.9x 5.9x 4.2x.x.0x 0.6x 0.6x 0.6x 3.4x 2.6x.6x CarMax, Inc. KMX $66.69 $68.7 / $ ,006 22,63 4.4x 27.x 25.7x 22.9x.8x.6x.6x.6x.4x 22.2x 9.6x Group Automotive, Inc. GPI $85.2 $93.23 / $60.3 2,066 4,520 NM 3.4x 2.7x.4x 0.8x 0.7x 0.5x 0.4x 0.4x.7x 2.2x.3x Lithia Motors, Inc. LAD $96.67 $99.50 / $ ,538 4, x 8.7x 5.7x 0.8x 0.7x 0.8x 0.6x 0.5x 6.4x 2.7x.6x Monro Muffler Brake, Inc. MNRO $64.96 $67.93 / $ ,057 2, x 34.7x 34.4x 27.7x.6x 2.7x 2.6x 2.4x 6.5x 6.3x 3.7x Penske Automotive Group, Inc. PAG $50.49 $52.70 / $ ,560 8,638 NM 6.6x 3.6x 2.3x.0x 0.9x 0.5x 0.4x 0.4x 3.5x 2.5x Pep Boys - Manny, Moe & Jack PBY $9.54 $3.22 / $ x NM NM 33.5x NM NA 0.4x 0.4x 0.4x 9.5x 8.5x 6.2x Rush Enterprises, Inc. RUSH.B $3.33 $3.64 / $9.58,333 2, x 25.9x 6.x 3.9x NA NA 0.7x 0.6x 0.5x 3.x.4x Sonic Automotive, Inc. SAH $24.76 $27.87 / $2.76,26 3,33.8x 2.3x 2.9x.2x.0x 0.9x 0.4x 0.3x 0.3x.0x.5x 0.6x MEAN $3,782 $6,526 0.X 20.5X 8.X 7.5X.2X.0X 0.9X 0.8X 0.8X 4.X 3.5X 2.0X MEDIAN $2,98 $4,00 7.9X 8.X 5.8X 4.0X.0X 0.9X 0.7X 0.6X 0.5X 3.3X 2.7X.5X COLLISION Boyd Group Income Fund BYD.UN $4.6 $42.60 / $27.7 $869 $762 NM 25.4x 8.9x 5.8x NA NA 0.9x 0.8x 0.7x 3.9x 9.2x Copart, Inc. CPRT $37.9 $38.50 / $ ,702 4, x 2.6x 9.5x.6x.4x 4.x 4.x 3.9x.5x.6x 0.7x KAR Auction Services, Inc. KAR $36.95 $37.73 / $25.9 5,220 7,687 NM 28.4x 2.5x 8.9x.6x.4x 3.3x 3.x 2.9x 3.4x.8x 0.9x LKQ Corp. LKQ $24.77 $29.84 / $ ,533 9, x 20.2x 7.5x 4.8x 0.9x 0.8x.4x.3x.2x.8x 0.6x 9.4x Solera Holdings, Inc. SLH $5.40 $69.60 / $ ,454 5,763 NM 49.2x 6.x 4.8x.5x.3x 5.3x 5.0x 4.7x 3.9x 2.3x.4x MEAN $4,356 $5, X 29.0X 9.X 6.8X.4X.2X 3.0X 2.8X 2.7X 2.9X.X 0.X MEDIAN $4,702 $5, X 25.4X 8.9X 5.8X.5X.4X 3.3X 3.X 2.9X 3.4X.6X 0.7X Stock Prices, Market Cap, and Enterprise Values converted at the exchange rate as of the date above * Definitions: LTM = Last Twelve Months; EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization; P / E = Stock Price / Earnings Per Share; TEV = Total Enterprise Value TBV = Tangible Book Value; PEG = (Calendarized P / E) / Long Term Growth Rate Sources: Capital IQ, Company filings 4

5 Operating Results Last 2 Months as of 3/27/205 ($ in millions, except per share) SUPPLIERS Net Margins Sales Growth EBITDA Growth SSS Ticker LTM Date Revenue EBITDA EBIT Income Gross EBITDA EBIT NI Year 5 Year Year 5 Year Latest Q Affinia Group Intermediate Holdings, Inc. N/A 2/3/4 $,396 $69 $49 $ % 2.% 0.7% 5.9% 2.6% 3.0% 5.0% 7.3% Cooper Tire & Rubber Co. CTB 2/3/4 3, % 5.%.% 6.2% (0.4%) 4.3% 7.3% 9.% Dorman Products, Inc. DORM 2/27/ % 20.4% 8.7% 2.0% 3.% 4.8%.% 24.4% Federal-Mogul Corp. FDML 2/3/4 7, (68) 4.4% 8.4% 3.8% (2.3%) 7.8% 6.5% 8.% 0.0% Goodyear Tire & Rubber Co. GT 2/3/4 8,38 2,25,59 2, % 2.4% 8.4% 3.5% (7.2%) 2.2% 6.9% 20.% Motorcar Parts of America, Inc. MPAA 2/3/ % 2.8% 2.0% 3.9% 22.7% 6.3% 2.% 5.0% Remy International, Inc. REMY 2/3/4, % 0.7% 4.7% 0.5% 3.7% 5.4% (0.3%) 3.4% Snap-on, Inc. SNA 0/03/5 3, % 2.7% 9.8% 2.% 7.9% 7.6% 5.7% 7.5% Standard Motor Products, Inc. SMP 2/3/ %.5% 9.8% 4.4% (0.3%) 5.9% 6.4% 20.8% Tenneco, Inc. TEN 2/3/4 8, % 8.7% 6.5% 2.7% 5.7% 2.6% 5.9% 6.0% UCI Holdings Limited N/A 2/3/4, (36) 4.5%.4% 6.% (3.6%).4% 2.7% (2.3%) 3.7% MEAN $4,29 $508 $359 $ % 3.2% 0.% 5.0% 5.2% 7.4% 6.9% 4.3% NA MEDIAN $,396 $69 $49 $ % 2.% 9.8% 4.4% 3.7% 5.9% 6.9% 5.0% NA RETAILERS & DISTRIBUTORS Advance Auto Parts, Inc. AAP 0/03/5 $9,844 $,243 $958 $ % 2.6% 9.7% 5.0% 5.6% 2.7% 37.9% 5.3%.% American Tire Distributors Holdings, Inc. N/A 0/03/5 5, (95) 7.6% 4.8%.8% (.9%) 3.% 8.3% 29.4% 9.4% AutoZone, Inc. AZO 02/4/5 9,795 2,46,879, % 2.9% 9.2%.3% 4.4% 7.0% 4.5% 8.9% 4.3% Genuine Parts Company 2 GPC 2/3/4 5,342,273, % 8.3% 7.3% 4.6% 9.0% 8.8% 5.2% 0.8% 7.0% KAR Auction Services, Inc. KAR 2/3/4 2, % 24.3% 6.0% 7.2% 8.8% NA 6.% NA O'Reilly Automotive, Inc. ORLY 2/3/4 7,26,468, % 20.4% 7.6% 0.8% 8.5% 8.3% 3.8% 6.4% 6.0% Pep Boys - Manny, Moe & Jack 3 PBY /0/4 2, (4) 23.5% 4.3% 0.8% (0.2%) (.%).6% (22.%) (.3%) (0.2%) U.S. Auto Parts Network, Inc. PRTS 0/03/ (4) (7) 28.%.9% (.4%) (2.4%).3% 0.0% 7.5% (4.9%) Uni-Select, Inc. 5 UNS 2/3/4, NM 5.2% 4.0% 2.8% (0.2%) 7.9% 2.5% 3.%.% MEAN $5,97 $793 $642 $ %.5% 8.3% 4.% 3.7% 9.3% 2.8% 8.5% 3.2% MEDIAN $5,03 $574 $378 $69 37.% 8.3% 7.3% 4.6% 8.8% 8.5% 3.8% 9.9% 2.7% INDEPENDENT SERVICE PROVIDERS & DEALERS Asbury Automotive Group, Inc. ABG 2/3/4 $5,868 $297 $270 $2 6.5% 5.% 4.6%.9% 0.0%.7% 4.6% 20.8% AutoNation, Inc. AN 2/3/4 9, % 4.8% 4.2% 2.2% 9.% 2.4% 0.7% 4.7% CarMax, Inc. KMX /30/4 4,89, % 7.2% 6.4% 3.9% 2.% 4.4% 8.5% 7.7% Group Automotive, Inc. GPI 2/3/4 9, % 3.9% 3.5% 0.9%.4% 7.0% 9.8% 20.% Lithia Motors, Inc. LAD 2/3/4 5, % 4.9% 4.4% 2.6% 34.6% 25.5% 26.8% 34.4% Monro Muffler Brake, Inc. MNRO 2/27/ % 6.% 2.3% 7.0% 6.6% 0.4% 5.0% 3.% (.8%) Penske Automotive Group, Inc. PAG 2/3/4 7, % 3.3% 2.9%.7% 8.9% 3.8% 6.4% 7.8% Pep Boys - Manny, Moe & Jack 4 PBY /0/4 2, (4) 23.5% 4.3% 0.8% (0.2%) (.%).6% (22.%) (.3%) 6.% Rush Enterprises, Inc. RUSH.B 2/3/4 4, % 5.6% 3.%.7% 39.7% 3.5% 37.2% 39.4% Sonic Automotive, Inc. SAH 2/3/4 9, % 3.3% 2.6%.% 4.0% 8.7% (0.%) 7.8% MEAN $8,855 $425 $358 $84 8.6% 5.9% 4.5% 2.3% 4.5% 4.7% 2.7% 8.4% 2.2% MEDIAN $7,532 $298 $255 $04 5.5% 4.9% 3.8%.8% 0.7% 3.% 4.8% 7.8% 2.2% COLLISION Boyd Group Income Fund 5 BYD.UN 2/3/4 $844 $69 $48 ($5) 46.2% 8.2% 5.7% (.8%) 46.0% 30.4% 06.6% 35.4% 7.6% Copart, Inc. 6 CPRT 0/3/5, % 35.9% 3.7% 6.9% 5.% 9.4% 24.4% 9.0% 4.6% KAR Auction Services, Inc. KAR 2/3/4 2, % 24.3% 6.0% 7.2% 8.8% NA 6.% NA LKQ Corp. 7 LKQ 2/3/4 6, %.7% 9.9% 5.7% 33.% 26.9% 26.6% 23.8% 7.% Solera Holdings, Inc. SLH 2/3/4, % 38.0% 24.7% 4.2% 22.8% 2.8% 9.3%.9% MEAN $2,44 $453 $346 $ % 23.6% 7.6% 6.4% 23.2% 9.9% 38.6% 20.0% 6.4% MEDIAN $,64 $47 $369 $ % 24.3% 6.0% 5.7% 22.8% 9.9% 24.4% 7.8% 7.% Affinia Group, American Tire Distributors, and UCI International have publicly traded debt only and thus are included in operating and performance metrics, but not valuation multiples 2 Same Store Sales for Genuine Parts reflects automotive segment only 3 Same Store Sales reflect Pep Boys merchandise business only 4 Same Store Sales reflect Pep Boys service business only 5 Reported results converted at the exchange rate as of the above date 6 Same Store Sales reflect Copart s organic comp growth 7 Same Store Sales reflect LKQ s organic growth for parts and services * Definitions: LTM = Last Twelve Months; EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization; EBIT = Earnings Before Interest & Taxes; NI = Net Income SSS = Same Store Sales, where applicable Sources: Capital IQ, Company filings 5

6 Balance Sheet Metrics As of 3/27/205 ($ in millions, except per share) SUPPLIERS Days Outstanding Cash Total Debt / Debt / Interest Quick S&P Debt Ticker A / R Inventory A / P Conversion Debt Capital EBITDA Coverage Ratio Ratio Rating Outlook Affinia Group Intermediate Holdings, Inc. N/A $8 37.0% 4.8x 2.6x 2.2x 0.8x B Stable Cooper Tire & Rubber Co. CTB % 0.7x 3.2x 2.8x.8x BB- Stable Dorman Products, Inc. DORM NA NA NA 5.0x 2.8x NA NA Federal-Mogul Corp. FDML , % 4.4x.6x.7x.0x B Stable Goodyear Tire & Rubber Co. GT , % 2.8x 3.x.6x 0.9x BB- Positive Motorcar Parts of America, Inc. MPAA NA NA % 2.2x 2.6x.7x 0.8x NA NA Remy International, Inc. REMY % 2.5x 5.2x.7x.0x BB- Stable Snap-on, Inc. SNA %.2x 2.8x 2.6x.6x A- Stable Standard Motor Products, Inc. SMP % 0.5x NM.9x 0.6x NA NA Tenneco, Inc. TEN , %.5x 4.5x.3x 0.8x BB+ Stable UCI Holdings Limited N/A % 6.x.5x 2.x.0x B- Stable RETAILERS & DISTRIBUTORS MEAN $, % 2.7X 5.2X 2.2X.2X MEDIAN $ % 2.3X 3.X.9X.0X Advance Auto Parts, Inc. AAP $, %.3x 3.8x.3x 0.2x BBB- Stable American Tire Distributors Holdings, Inc. N/A , % 7.5x.3x.8x 0.5x NA NA AutoZone, Inc. AZO NA NA 4, % 2.x 3.5x 0.8x BBB Stable Genuine Parts Company GPC % 0.6x NM.6x 0.6x NA NA KAR Auction Services, Inc. KAR NA 25.5 NA 2, % 4.6x 5.5x.3x.2x B+ Stable O'Reilly Automotive, Inc. ORLY , %.0x 9.5x.x 0.2x BBB+ Stable Pep Boys - Manny, Moe & Jack PBY % 4.2x.4x.3x 0.x B Stable U.S. Auto Parts Network, Inc. PRTS % 3.8x NM.3x 0.2x NA NA Uni-Select, Inc. UNS % 4.6x 6.x.8x 0.5x NA NA MEAN $, % 3.3X 8.7X.4X 0.4X MEDIAN $, % 3.8X 6.X.3X 0.2X INDEPENDENT SERVICE PROVIDERS & DEALERS Asbury Automotive Group, Inc. ABG $, % 5.2x 4.5x.2x 0.3x BB Positive AutoNation, Inc. AN , % 5.7x 5.0x.0x 0.2x BBB- Stable CarMax, Inc. KMX , % 8.6x NM 2.8x 0.3x NA NA Group Automotive, Inc. GPI , % 6.5x 3.3x.x 0.2x BB+ Stable Lithia Motors, Inc. LAD , % 6.9x 7.3x.x 0.2x NA NA Monro Muffler Brake, Inc. MNRO % 0.2x.2x 0.x NA NA Penske Automotive Group, Inc. PAG , % 7.x.x 0.2x BB Stable Pep Boys - Manny, Moe & Jack PBY % 4.2x.4x.3x 0.x B Stable Rush Enterprises, Inc. RUSH.B , % 4.9x 0.4x.x 0.3x NA NA Sonic Automotive, Inc. SAH , % 6.9x 2.4x.x 0.2x BB Stable MEAN $2, % 5.8X 4.3X.2X 0.X MEDIAN $, % 6.X 4.0X.2X 0.X COLLISION Boyd Group Income Fund BYD.UN NM $47 0.5x 2.x.3x.0x NA NA Copart, Inc. CPRT NM x.6x NM 3.8x 3.6x NA NA KAR Auction Services, Inc. KAR NA 25.5 NA 2, x 4.6x 5.5x.3x.2x B+ Stable LKQ Corp. LKQ , x 2.4x 0.x 3.x.0x BB+ Stable Solera Holdings, Inc. SLH 48.5 NA 37.2 NA 2, x 5.5x 3.4x 2.2x BB- Stable MEAN $, % 3.2X 4.7X 2.3X.7X MEDIAN $, % 2.4X 4.5X 2.2X.2X Affinia Group, American Tire Distributors, and UCI International have publicly traded debt only and thus are included in operating and balance sheet metrics, but not valuation multiples * Definitions: EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization; Acct. Rec. Days Outstanding = Accounts Receivable / Sales * Days; Inventory Days Outstanding = Inventory / Cost of Goods Sold * Days; Days Payable Outstanding = Accounts Payable / Cost of Goods Sold * Days; Cash Conversion = Acct. Rec. Days Outstanding + Inventory Days Outstanding - Days Payable Outstanding; Debt / Capital = Total Debt / (Total Debt + Book Value of Equity); Interest Coverage = EBITDA / Interest Expense Sources: Capital IQ, Bloomberg, Company filings 6

7 What We Are Hearing From the Road Kinderhook Acquires Superwinch: New York, NY-based private equity firm Kinderhook Industries LLC announced on March 25, 205 that it had acquired Dayville, CT-based manufacturer of winch systems and accessories Superwinch, LLC from Newton Lower Falls, MA-based private equity firm Islington Capital Partners. Founded in 968, Superwinch designs, manufactures, and markets winch products including electric winches, power drives, hydraulic winches, accessories, parts, and hubs for consumer and industrial applications. The acquisition will allow Superwinch to invest in research and development, implement new product initiatives, and pursue organic and acquisition-led global growth. As part of the acquisition, industry veteran David Burns will assume the role of Chief Executive Officer. Paul Cifelli, Managing Director at Kinderhook, said, The acquisition of Superwinch aligns perfectly with Kinderhook s investment strategy of partnering with world-class management teams to acquire companies that are leaders in their respective niches. Kinderhook has developed an expertise in the automotive aftermarket and we are excited about the opportunity to work with Mr. Burns and his team to support his vision for growth. Kinderhook s proven buy-and-build strategy will accelerate the company s growth and allow us to build the largest and most diverse supplier of winches to both the consumer and industrial markets. Financial terms of the transaction were not disclosed. The acquisition represents Kinderhook s 4th transaction in the automotive aftermarket and the firm s seventh automotive aftermarket platform investment. Kinderhook participated in a growth capital financing round for Superwinch in October SAME STORE SALES GROWTH * 5.0% 0.0% 5.0% 0.0% (5.0%) 3.3% 0.4% 5.4% 2.7% 2.8% 2.5% 0.6% 0.4% (0.3%) (2.%) (0.6%) (0.5%) (2.2%) (3.3%) 5.3% 0.4% 6.2%.5% 0.6% 9.7%.% 7.7% 3.% 0.3% 7.0% (2.8%) (2.3%) (.8%) 9.0%.9% 2.3%.0% 0.4% 6.7% 8.3% 2.8% 2.% 3.9% 7.% (0.0%) Q4' Q'2 Q2'2 Q3'2 Q4'2 Q'3 Q2'3 Q3'3 Q4'3 Q'4 Q2'4 Q3'4 Q4'4 Retailers and Distributors Independent Service Providers Collision *Same Store Sales growth measures revenue growth for stores that have been open for at least one year Retailers & Distributors include: Advance Auto Parts, AutoZone, GPC (NAPA), O Reilly Automotive, Uni-Select, and Pep Boys Independent Service Providers include: Monro Muffler Brake and Pep Boys Collision includes: Copart, Boyd Group, and LKQ. LKQ and Copart report organic comp sales LKQ reports comp growth on a distribution center and Copart does so on an established, mature location that has repeat sales Sources: Capital IQ, Company filings MILES TRAVELED AND AVERAGE GASOLINE PRICE PER GALLON 5.0% 4.6% $5.00 Year-Over-Year Change in Miles Traveled 4.0% 3.0% 2.0%.0% 0.0% (.0%) (2.0%).7% (.4%) (0.9%) 0.%.5%.4%.3% 0.8% 0.3% 2.0% 2.% 0.6% $4.50 $4.00 $3.50 $3.00 $2.50 Average Gasoline Prices Per Gallon (3.0%) $2.00 Dec-3 Jan-4 Feb-4 Mar-4 Apr-4 May-4 Jun-4 Jul-4 Aug-4 Sep-4 Oct-4 Nov-4 Dec-4 Vehicle Miles Traveled Gasoline Prices Data computed with the Federal Highway Administration Statistics table focusing on highway-going registered motor vehicles Sources: FHWA, U.S. Energy Information Administration 7

8 Recent Mergers & Acquisitions Close Date Target Buyer (Sponsor) Transaction Details Pending Pending U.S. automotive parts distribution activities of Uni-Select Inc. TI Group Automotive Systems, L.L.C. Icahn Enterprises, L.P. Bain Capital, LLC Icahn Enterprises has agreed to acquire the U.S. automotive parts distribution activities of Uni-Select Inc., a leading distributor of automotive parts, equipment, tools, accessories, and paint. Bain Capital has entered into a definitive agreement to acquire TI Group Automotive Systems, a supplier of fluid storage, transfer, and delivery systems for the automotive aftermarket and OEM industry. Pending United Automotive Supply Auto-Wares Auto-Wares has entered into a definitive agreement to acquire United Automotive Supply, a leading family-owned automotive parts distributor. 3/25/205 Superwinch, LLC Kinderhook Industries Kinderhook Industries has acquired Superwinch, a Connecticut based designer, manufacturer, and marketer of winch systems and accessories for consumer and industrial end-markets. 3/7/205 Pittsburgh Auto Auction ADESA, Inc. ADESA, a business unit of KAR Auction Services, has acquired Pittsburgh Auto Auction, a dealer automotive auction company. 3/7/205 Savannah Tire and Rubber Company, Inc. Express Oil, LLC (Carousel Capital) Express Oil Change & Tire Service has acquired Savannah Tire Brake & Alignment Centers, a Savannah-based dealership operating nine retail locations under the Tire Pros umbrella. 3/6/205 Interstate Glass ABRA (Hellman & Friedman) ABRA has acquired Interstate Glass, a multi-shop full service glass company in North Carolina. 3/9/205 ReadyLIFT Suspension Inc. Mangrove Equity Partners Mangrove Equity Partners with management has recapitalized ReadyLIFT, a manufacturer of lifted and off-road suspension kits for trucks and SUVs. 3/5/205 Wilter Auto & Industrial Supply Uni-Select Uni-Select has acquired Wilter Auto & Industrial Supply, a wholesaler of automotive parts in Northeastern Alberta. 3/3/205 Loro Auto Works Collision Repair Center, Inc. Service King Paint & Body, LLC (The Blackstone Group) 3/2/205 Central Collision Centers, Inc. Service King Paint & Body, LLC (The Blackstone Group) Service King, a national collision repair operator has acquired Loro Auto Works Collision Repair Center, a collision repair operator in Illinois. Service King, a national collision repair operator has acquired Central Collision Centers, a collision repair operator in Illinois. 3/2/205 Leon Automotive Interiors Motus Integrated Technologies Motus Integrated Technologies has acquired Leon Automotive Interiors, a supplier of automotive interior products. 3/2/205 Maval Manufacturing, Inc. Remy International, Inc. Remy International, a manufacturer and distributor of auto parts, has acquired Maval Manufacturing, a manufacturer and distributor of steering systems and specialty products to the automotive service, OE powersports, and off-road markets. 2/27/205 Crash Off Alpine Collision Center ABRA (Hellman & Friedman) ABRA has acquired Crash Off Alpine Collision Center, a collision operator in Rockford, NY. 2/25/205 Collision Experts Inc. H&V Collision Center, Inc. H&V Collision Center, Inc., a multi-shop operator in New York, has acquired Collision Experts Inc., a multi-shop collision repair operator in New York. 2/23/205 Competition Suspension, Inc. A-FAB, LLC A-FAB, LLC, a manufacturer of performance racing products, has acquired Competition Suspension, Inc., a manufacturer of racing suspension products primarily for circle track racers. 2/20/205 Triangle Auto Body Corp. ABRA (Hellman & Friedman) ABRA has acquired Triangle Auto Body Corporation, a collision operator in Durham, North Carolina. 2/9/205 Sea Hawk Refinish Line, Inc. FinishMaster Inc. FinishMaster, a subsidiary of Uni-Select Inc., has acquired Sea Hawk Refinish Line, Inc., a distributor of automotive and marine paint products in Clearwater, Fl. 2/8/205 HH Investment Limited (Hammerhead) Polaris Industries Inc. Polaris Industries Inc. has acquired HH Investment Limited ("Hammerhead"), a manufacturer of gasoline-powered go-karts, light utility vehicles, and electric utility vehicles. 2/2/205 ATDynamics, Inc. Stemco LP Stemco LP, a supplier of commercial vehicle wheel ends, braking and suspension components, has acquired ATDynamics, maker of the aero fairings and other drag-reducing products for trailers. 2/6/205 Barrett's Collision Centers ABRA (Hellman & Friedman) ABRA has acquired Barrett's Collision Centers, a multi-shop collision repair operator in Washington. 2/6/205 GW Auto Rebuild ABRA (Hellman & Friedman) ABRA has acquired GW Auto Rebuild, a collision repair operator in Washington. 2/6/205 Parasol Canada XPEL Canada Corporation XPEL Canada Corporation, a global supplier of automotive paint and headlamp protection films, has acquired Parasol Canada, a distributor of paint protection and tint products for the Canadian market. 2/6/205 Hi-Level Enterprises Limited Arrowhead Electrical Products, Inc. (Pfingsten Partners) Arrowhead Electrical Products ( Pfingsten Parters), a supplier and distributor of rotating electrical products and powersports aftermarket parts, has acquired Hi-Level Enterprises, a U.K.-based distributor of powersports parts. 2/6/205 Rigid Industries, Inc. Truck-Lite Co. Truck-Lite Co., a leading supplier of LED lighting systems, has acquired Rigid Industries, a supplier of LED lighting and electronics for the off-road, powersports, agricultural, marine, industrial, and mining markets. 2/3/205 Poison Spyder Customs Transamerican Manufacturing Group 2/3/205 Charlie's State Avenue Collision Repair, Inc. Service King Paint & Body, LLC (The Blackstone Group) /28/205 OE Quality Friction Inc. Brake Parts Inc. (Torque Capital Group) /20/205 Jack's Collision Center, LLC Service King Paint & Body, LLC (The Blackstone Group) /20/205 Bushwacker Lund International (Highlander Partners) /9/205 Integra Tire and Auto Centers Ltd. Trican Tire Distributors, Inc. Transamerican Manufacturing Group, a subsidiary of Transamerican Auto Parts, has acquired Poison Spyder Customs, a leading manufacturer of Jeep exterior parts and accessories. Service King, a national collision repair operator has acquired Charlie's State Avenue Collision, a collision repair operator in Washington. Brake Parts Inc., Torque Capital Group, has acquired OE Quality Friction, a supplier of brake pads from Huron Capital Partners. Service King, a national collision repair operator has acquired Jack's Collision Center, a collision repair operator in Florida. Lund International Holding Co. ( Highlander Partners L.P.), a supplier of accessories for the light and heavy duty truck markets, has acquired Bushwacker, the fender flares and truck accessories manufacturer. Trican Tire Distributors, the Canadian subsidiary of American Tire Distributors ( TPG Capital), has acquired Integra Tire and Auto Centers Ltd, a Canadian tire and automotive service provider. /6/205 AxleTech International The Carlyle Group Carlyle Group has acquired AxleTech International, a global engineering and manufacturing company for both OE and aftermarket drivetrain systems and components from General Dynamics Corporation. /6/205 Craftmaster Auto Body Group, Inc. Boyd Group Boyd Group, has acquired Craftmaster Auto Body Group, Inc., a multi-shop collision repair operator in Florida. 8

9 Driven by success. portfolio companies of have been acquired by Audax Group has acquired $250,250,000 Secondary Co-Manager Contact our Automotive Aftermarket Investment Banking team to find out more. Jonathan Carey Managing Director Rex Green Managing Director Joe Sparacino Vice President Treavor Hill Vice President BBTCAPITALMARKETS.COM/AUTO The information contained herein has been obtained from sources we believe to be reliable and accurate, but we do not guarantee its accuracy or completeness. This material is not to be considered an offer or solicitation regarding the sale of any security. BB&T Capital Markets is a division of BB&T Securities, LLC, member FINRA/SIPC. BB&T Securities, LLC, is a wholly owned nonbank subsidiary of BB&T Corporation. Securities or insurance products and annuities sold, offered or recommended are not a deposit, not FDIC insured, not guaranteed by a bank, not guaranteed by any federal government agency and may go down in value. 205, Branch Banking and Trust Company. All rights reserved. Connect with us on 9