TRANSPORTATION & LOGISTICS

Transcription

1 Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number ). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

2 WHAT WE RE READING GLOBAL TELEMATICS MARKET TO BE WORTH $233B USD BY 2022 According to Netscribes, the global telematics market is expected to grow at a compound annual growth rate (CAGR) of 28.5 percent between 2017 and 2022 to reach a global revenue of $233 billion USD by An increased need to track vehicles in real time and monitor driver behavior, coupled with the rising demand for onboard infotainment, is expected to drive the use of telematics technology percent of the telematics solutions and devices that includes infotainment and UBI cater to the automotive industry. North America is the highest revenuegenerating region for the automotive telematics industry. The telematics market is at a mature stage in countries like the U.S. and Canada, where stable growth is forecasted until Aftermarket News RISE OF SELF-DRIVING VEHICLES WILL INCREASE CAR OWNERSHIP When people predict the demise of car ownership, they are overlooking the reality that the new autonomous automotive industry is not going to be just a re-hash of today s car industry with driverless vehicles. Instead, the automotive industry of the future will be selling what could be considered an entirely new product: a wide variety of intelligent, self-guiding transportation robots. When cars become a widely used type of transportation robot, they will be cheap, ubiquitous, and versatile. Several unique characteristics of autonomous vehicles will ensure that people will continue to buy their own cars: cost, personal belongings, frequent upgrades, instant accessibility, and diversity of form and function. SingularityHub TIRE INDUSTRY ADVANCEMENTS LAUDED AT TIRE TECH EXPO Goodyear; Pirelli and C. S.p.A; Smithers Rapra; Versalis S.p.A.; and MegaRide S.r.l. received accolades for their achievements in tire technology, each taking home a Tire Technology International Award for Innovation and Excellence from the 2018 Tire Technology Expo. In addition, Ulf Sandberg, senior research scientist at the Swedish National Road and Transport Research Institute (VTI), was presented with a Lifetime Achievement Award. He is one of the world's foremost experts on tire/road noise. Goodyear's research and development efforts involving the use of soybean oil in tire tread compounds earned the Akron-based tire maker the award in the "Environmental Achievement of the Year" category. Rubber & Plastics News THE HURDLES OF FIXING AUTOMATED VEHICLES As automated vehicles slowly populate selected urban areas, the question persists: Who will repair and maintain these robotic and technological marvels? "It's not something that immediately comes to mind when we think about all the research and development that comes with automated driving," says Kay Stepper, vice president of driver assistance systems and automated driving at Robert Bosch. As a first mover in automated vehicle technology, Bosch is addressing a need that might be five or 10 years from reaching critical mass. But automakers, dealers, industry groups and academics agree that a significant gap exists in education and marketing of careers for automated vehicle service technicians. Classroom learning, reinforced by hands-on exposure to software and electrical integration of sensors in automated vehicle prototypes, is creating job opportunities beyond those that require four-year and graduate degrees. Bosch has hired about 10 Schoolcraft students with two-year associate degrees and is continuing their education. Automotive News CONTENTS M&A TRANSACTIONS PUBLIC MARKETS OVERVIEW STOCK PRICE PERFORMANCE OUR GROUP CONTACTS UNITED STATES Frank Mountcastle Managing Director fmountcastle@harriswilliams.com +1 (804) Jason Bass Managing Director jbass@harriswilliams.com +1 (804) Joe Conner Managing Director jconner@harriswilliams.com +1 (804) Jershon Jones Director jjones@harriswilliams.com +1 (804) Jeff Burkett Director jburkett@harriswilliams.com +1 (804) Jeff Kidd Director jkidd@harriswilliams.com +1 (804) James O Malley Vice President jomalley@harriswilliams.com +1 (804) Jon Meredith Vice President jmeredith@harriswilliams.com +1 (804) EUROPE Jeffery Perkins Managing Director jperkins@harriswilliams.com +49 (0) PAGE 1

3 M&A TRANSACTIONS (1) RECENT M&A TRANSACTIONS Date Target Business Description Acquirer 2/23/2018* Mavis Tire Supply LLC Operates as an online dealer of discount tires Express Oil Change LLC 2/20/2018 Behrens Supply Co. Supplies automotive and industrial parts Golden Gate Private Equity, Inc. 2/9/2018* Fenix Parts, Inc. Engages in the recycling and resale of original equipment manufacturer automotive products in the United States and Canada Upstate Shredding LLC 2/6/2018 ATC Drivetrain LLC Provides remanufacturing and logistics solutions for automotive industry Crestview LLC 2/6/2018 Air Transport Components LLC Provides aircraft maintenance & repair services includes electrical accessories shop, flap transmission and gearbox shop, carriages and track shop Holder Family Investments LLC 2/2/2018 Fore Transportation, Inc. Provides long-haul intermodal and truckload services Universal Logistics Holdings, Inc. 1/26/2018 Lucky's Lease, Inc. Manufactures and repairs trailer trucks General Finance Corp. 1/23/2018 Kamm Industries, Inc. Manufactures suspension seat and accessories for utility task vehicles (UTV) and off-road vehicles Bestop, Inc. 1/22/2018 Kodiak Products Co., Inc. Manufactures parts and equipment for transportation trailers Kinderhook Industries LLC 1/16/2018 Parkmobile Provides mobile parking services in North America BMW Group 1/11/2018 AFG Allgemeine Provides automotive distribution services MOSOLF SE & Co. KG Fahrzeugübernahme- Gesellschaft mbh 1/11/2018 Continental Batteries Distributes aftermarket batteries Incline Equity Partners 1/11/2018 Jett Express Car Washes LLC Provides car cleaning services with a tunnel express conveyor Zips Car Wash LLC 1/9/2018 Safe Fleet Provides safety products for fleet vehicles Oak Hill 1/9/2018 Tiger Accessories Group Supplies vehicle lighting and cleaning products in North America Hopkins 1/8/2018 Levin s Auto Supply Supplies automotive aftermarket products to retailers and automotive parts stores Highline Aftermarket 1/8/2018 Piston Rings Komarov Designers and manufacturers of piston rings for the OEM and aftermarket channels Hastings Manufacturing 1/4/2018 SARL Giraud-Garage du Bois de la Chaize Provides automotive repair services Giraud-Garage du Bois de la Chaize SARL /Monnier/ 1/4/2018 Truck Parts & Equipment, Inc. Supplies new and used semi trailers and truck equipment FleetPride, Inc. *Denotes pending transactions PAGE 2

4 PUBLIC MARKETS OVERVIEW (1) TEV / LTM EBITDA TEV / 2018P EBITDA Dealerships and Services Providers 12.6x Dealerships and Services Providers 11.9x 10.7x 10.2x 10.0x 10.1x 8.6x 7.2x AVERAGE REVENUE GROWTH ( ) AVERAGE REVENUE GROWTH ( P) Dealerships and Services Providers 8.8% Dealerships and Services Providers 5.7% 3.1% 5.0% 0.8% 2.6% 0.3% (9.0%) AVERAGE EBITDA GROWTH ( ) AVERAGE EBITDA GROWTH ( P) Dealerships and Services Providers 9.7% 8.1% 8.6% Dealerships and Services Providers 6.0% 5.1% 1.0% 2.9% (7.0%) PAGE 3

5 STOCK PRICE PERFORMANCE (1) MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH) S&P 500 (3.2%) Vehicle Manufacturers 19.1% (4.2%) S&P % Distributors and Retailers (7.8%) Dealerships and Service Providers 3.3% Vehicle Manufacturers (7.9%) (4.6%) Dealerships and Service Providers (8.8%) Distributors and Retailers (5.4%) TRAILING TWELVE MONTHS (Indexed to February 26 th, 2017) 30% 20% 10% 0% (10%) (20%) (30%) Feb-17 May-17 Aug-17 Nov-17 Feb-18 Dealerships and Service Providers S&P 500 Index PAGE 4

6 INDUSTRY UPDATE FEBRUARY 2018 OUR GROUP Harris Williams & Co. is a leading advisor to the transportation and logistics M&A market. Our Transportation & Logistics Group serves companies in a broad range of attractive niches, including third-party logistics (3PL), truck, rail, marine and air transportation, transportation equipment, and the automotive and heavy duty vehicle market. RECENTLY CLOSED T&L TRANSACTIONS A portfolio company of has been recapitalized by has merged with is merging with an operating company of has merged with in a recapitalization by and DEEP EXPERIENCE ACROSS T&L SECTORS THIRD-PARTY LOGISTICS RAIL & RAIL SERVICES MARINE TRANSPORTATION TRANSPORTATION EQUIPMENT NICHE TRANSPORTATION AUTOMOTIVE & HEAVY DUTY VEHICLE AIR TRANSPORTATION PAGE 5

7 OUR FIRM Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities. Our clients benefit from our deep-sector experience, integrated industry intelligence and collaboration across the firm, and our commitment to learning what makes them unique. For more information, visit our website at Aerospace, Defense & Government Services Building Products & Materials Business Services Consumer Energy, Power & Infrastructure Healthcare & Life Sciences Industrials Specialty Distribution Technology, Media & Telecom Transportation & Logistics HARRIS WILLIAMS & CO. OFFICE LOCATIONS Boston One International Place Suite 2620 Boston, Massachusetts Phone: +1 (617) Cleveland 1900 East 9th Street 20th Floor Cleveland, Ohio Phone: +1 (216) Minneapolis 222 South 9th Street Suite 3350 Minneapolis, Minnesota Phone: +1 (612) UNITED STATES Richmond (Headquarters) 1001 Haxall Point 9th Floor Richmond, Virginia Phone: +1 (804) San Francisco 575 Market Street 31st Floor San Francisco, California Phone: +1 (415) Washington, D.C th St. NW 2nd Floor Washington, D.C Phone: Beijing Hong Kong Mumbai EUROPE Frankfurt Bockenheimer Landstrasse Frankfurt Germany Phone: London 63 Brook Street London W1K 4HS, England Phone: +44 (0) NETWORK OFFICES New Delhi Shanghai PAGE 6

8 PUBLIC COMPARABLES (1) Stock Performance Stock Price Change from 52-Week TEV / LTM EBITDA as of TEV / EBITDA ($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Feb-17 Aug-17 Current 2018P 2019P Automotive Aftermarket BorgWarner Inc. $12,820 $52.32 (7.0%) 26.0% $ % 7.2x 7.3x 7.9x 7.2x 6.8x Cooper Tire & Rubber Company 1, (15.1%) (20.9%) % 3.7x 3.6x 3.9x 4.4x 4.1x Dorman Products, Inc. 2, (1.6%) (4.6%) % 13.4x 10.4x 12.2x 11.6x 10.8x Goodyear Tire & Rubber Company 12, (16.8%) (16.5%) % 5.5x 5.4x 5.7x 5.0x 4.6x Modine Manufacturing Company 1, % 111.1% % 7.3x 9.2x 8.6x 7.5x 6.9x Motorcar Parts of America, Inc (20.8%) (22.5%) % 9.5x 7.4x 8.6x 5.1x 4.9x Standard Motor Products, Inc. 1, % 2.9% % 9.6x 8.6x 9.5x 10.0x 9.1x Tenneco Inc. 4, (4.2%) (14.0%) % 6.3x 6.7x 5.8x 4.5x 4.3x Visteon Corporation 3, (3.5%) 34.5% % 9.2x 9.8x 10.4x 10.1x 9.3x Median (4.2%) (4.6%) 83.0% 7.3x 7.4x 8.6x 7.2x 6.8x Advance Auto Parts, Inc. $9,118 $ (3.8%) (26.1%) $ % 11.7x 8.8x 10.7x 9.4x 8.7x AutoZone, Inc. 25, (7.8%) (1.1%) % 11.1x 8.5x 10.4x 10.2x 10.1x Genuine Parts Company 17, (11.1%) (1.8%) % 12.4x 10.8x 14.3x 11.8x 10.8x LKQ Corporation 15, (5.8%) 25.8% % 12.9x 12.5x 14.2x 12.5x 11.6x O'Reilly Automotive, Inc. 25, (6.9%) (5.4%) % 14.5x 10.8x 13.1x 12.6x 11.9x U.S. Auto Parts Network, Inc (12.0%) (35.1%) % 13.1x 13.0x 10.2x 5.9x NA Uni-Select Inc. 1, (17.1%) (28.4%) % 11.3x 10.0x 10.1x 8.8x 8.4x Median (7.8%) (5.4%) 87.7% 12.4x 10.8x 10.7x 10.2x 10.4x Dealerships and Service Providers Asbury Automotive Group, Inc. $3,137 $68.90 (8.3%) 3.3% $ % 9.9x 8.8x 9.6x 9.6x 9.9x AutoNation, Inc. 11, (14.4%) 12.0% % 9.3x 9.3x 12.5x 12.9x 12.2x Boyd Group Income Fund 1, (1.1%) 24.2% % 14.1x 14.6x 18.4x 14.0x 12.2x CarMax, Inc. 24, (12.3%) (4.7%) % NM NM NM 17.4x 16.7x Copart, Inc. 11, % 58.6% % 15.1x 14.7x 19.2x 17.5x 15.7x Group 1 Automotive, Inc. 4, (4.5%) (4.9%) % 10.5x 9.9x 10.3x 11.1x 10.6x KAR Auction Services, Inc. 10, (5.9%) 15.5% % 13.1x 12.1x 13.1x 11.9x 11.1x Lithia Motors, Inc. Class A 5, (11.3%) 12.7% % 12.0x 11.7x 11.8x 11.6x 11.0x Monro Inc 2, (16.4%) (9.2%) % 14.0x 11.7x 12.8x 11.5x 10.3x Penske Automotive Group, Inc. 10, (11.4%) (7.8%) % 14.5x 13.3x 14.2x 12.5x 12.8x Sonic Automotive, Inc. Class A 3, (8.8%) (10.4%) % 10.8x 10.3x 11.1x 11.4x 11.2x Median (8.8%) 3.3% 87.1% 12.6x 11.7x 12.6x 11.9x 11.2x PAGE 7

9 PUBLIC COMPARABLES (1) Stock Performance Stock Price Change from 52-Week TEV / LTM EBITDA as of TEV / EBITDA ($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Feb-17 Aug-17 Current 2018P 2019P Automotive Aftermarket Bayerische Motoren Werke AG $171,646 $ (8.2%) 20.2% $ % 7.9x 9.7x 10.5x 9.4x 9.0x Daimler AG 219, (6.9%) 19.1% % 6.9x 7.0x 8.5x 8.8x 8.6x Ford Motor Company 158, (7.5%) (14.2%) % 12.5x 12.2x 12.4x 12.4x 12.4x General Motors Company 129, (5.2%) 10.9% % 5.3x 5.1x 5.5x 6.9x 7.0x Harley-Davidson, Inc. 14, (14.8%) (17.6%) % 13.1x 12.8x 12.8x 14.1x 13.2x Navistar International Corporation 7, (15.6%) 46.8% % 13.4x 14.6x 11.4x 10.6x 9.4x Oshkosh Corp 6, (12.4%) 26.1% % 10.4x 9.9x 10.2x 9.7x 8.8x PACCAR Inc 30, (7.6%) 5.8% % 9.9x 9.4x 8.8x 11.5x 11.3x Toyota Motor Corp. 344, (2.2%) 19.0% % 8.9x 9.1x 9.9x 10.8x 10.2x Volkswagen AG Pref 256, (11.8%) 33.9% % 5.3x 5.9x 6.7x 5.7x 5.5x Median (7.9%) 19.1% 86.0% 9.4x 9.5x 10.0x 10.1x 9.2x PAGE 8

10 PUBLIC COMPARABLES (1) Revenue Revenue Growth EBITDA EBITDA Growth ($ in millions) P 2019P '14-17 '17-19P P 2019P '14-17 '17-19P Automotive Aftermarket BorgWarner Inc. $8,304 $8,025 $9,071 $9,796 $9,796 $11, % 7.5% $1,385 $1,330 $1,507 $1,626 $1,626 $1, % 8.3% Cooper Tire & Rubber Company 3,421 2,959 2,925 2,851 2,851 2,997 (5.9%) 2.5% % (0.5%) Dorman Products, Inc , % 6.7% % 6.6% Goodyear Tire & Rubber Company 18,138 16,443 15,158 15,377 15,377 16,420 (5.4%) 3.3% 2,251 2,349 2,520 2,178 2,178 2,641 (1.1%) 10.1% Modine Manufacturing Company 1,496 1,353 1,503 2,055 2,177 2, % 6.1% % 12.8% Motorcar Parts of America, Inc % 6.8% % 11.0% Standard Motor Products, Inc ,058 1,116 1,116 1, % 2.8% % 2.1% Tenneco Inc. 8,420 8,209 8,599 9,274 9,274 10, % 4.8% (1.3%) 16.9% Visteon Corporation 7,509 3,245 3,161 3,146 3,146 3,453 (25.2%) 4.8% (17.5%) 5.6% Total $49,322 $42,377 $42,756 $44,955 $45,115 $49, % 5.0% $5,902 $5,684 $6,206 $5,938 $5,984 $7, % 8.1% Advance Auto Parts, Inc. $9,844 $9,737 $9,568 $9,374 $9,374 $9,568 (1.6%) 1.0% $1,244 $1,147 $1,068 $849 $849 $1,034 (12.0%) 10.4% AutoZone, Inc. 9,475 10,187 10,636 10,889 10,889 11, % 3.9% 2,089 2,223 2,358 2,403 2,403 2, % 2.5% Genuine Parts Company 15,342 15,280 15,340 16,309 16,309 18, % 7.4% 1,273 1,266 1,217 1,187 1,187 1,534 (2.3%) 13.6% LKQ Corporation 6,740 7,193 8,584 9,737 9,737 11, % 7.1% ,007 1,098 1,098 1, % 10.4% O'Reilly Automotive, Inc. 7,216 7,967 8,593 8,978 8,978 10, % 5.6% 1,465 1,743 1,917 1,959 1,959 2, % 5.1% U.S. Auto Parts Network, Inc % (100.0%) % (100.0%) Uni-Select Inc. 1,784 1,355 1,197 1,448 1,448 1,814 (6.7%) 11.9% % 9.1% Total $50,685 $52,010 $54,221 $57,041 $57,050 $63, % (9.0%) $6,968 $7,331 $7,684 $7,629 $7,630 $8, % (7.0%) Dealerships and Service Providers Asbury Automotive Group, Inc. $5,868 $6,588 $6,528 $6,457 $6,457 $6, % 1.4% $313 $331 $334 $325 $325 $ % (0.9%) AutoNation, Inc. 19,109 20,862 21,609 21,535 21,535 22, % 1.4% % 1.5% Boyd Group Income Fund ,047 1,212 1,409 1, % 14.5% % 19.1% CarMax, Inc. 14,269 15,150 15,875 17,295 18,300 19, % 6.7% ,341 1,397 1, % 3.9% Copart, Inc. 1,163 1,146 1,268 1,448 1,448 1, % 13.1% % 15.7% Group 1 Automotive, Inc. 9,938 10,633 10,888 11,130 11,130 11, % 1.5% % (2.3%) KAR Auction Services, Inc. 2,365 2,640 3,150 3,458 3,458 3, % 5.9% % 8.6% Lithia Motors, Inc. Class A 5,390 7,864 8,678 10,087 10,087 11, % 7.5% % 3.2% Monro Inc ,022 1,129 1,188 1, % 7.4% % 8.8% Penske Automotive Group, Inc. 17,177 19,285 20,119 21,387 21,387 22, % 1.8% % 8.3% Sonic Automotive, Inc. Class A 9,197 9,624 9,732 9,867 9,867 10, % 1.4% % (0.1%) Total $86,134 $95,653 $99,915 $105,004 $106,264 $112, % 5.7% $4,617 $5,143 $5,277 $6,183 $6,278 $6, % 6.0% PAGE 9

11 PUBLIC COMPARABLES (1) Revenue Revenue Growth EBITDA EBITDA Growth ($ in millions) P 2019P '14-17 '17-19P P 2019P '14-17 '17-19P Automotive Aftermarket Bayerische Motoren Werke AG $106,648 $102,215 $104,163 $121,551 $125,301 $129, % 3.3% $21,734 $19,303 $19,370 $18,341 $18,289 $19,109 (5.5%) 2.1% Daimler AG 172, , , , , , % 8.6% 25,517 25,668 26,177 25,869 25,869 26, % 1.1% Ford Motor Company 144, , , , , , % (3.4%) 11,324 15,079 12,296 12,810 12,810 12, % 0.0% General Motors Company 155, , , , , ,940 (2.3%) 0.1% 10,160 15,518 20,671 23,745 23,745 18, % (12.8%) Harley-Davidson, Inc. 6,229 5,995 5,996 5,647 5,647 4,977 (3.2%) (6.1%) 1,452 1,330 1,240 1,120 1,120 1,071 (8.3%) (2.2%) Navistar International Corporation 10,806 10,140 8,111 8,570 8,570 9,929 (7.4%) 7.6% NM 13.0% Oshkosh Corp 6,808 6,098 6,279 6,830 6,830 7, % 6.3% % 12.0% PACCAR Inc 18,997 19,115 17,005 19,469 19,469 21, % 4.2% 2,899 3,198 2,939 3,433 3,433 2, % (12.7%) Toyota Motor Corp. 247, , , , , , % 2.0% 38,164 36,457 34,060 30,193 31,042 32,835 (7.5%) 4.3% Volkswagen AG Pref 268, , , , , , % 3.8% 36,343 26,777 37,788 41,383 45,401 46, % 5.5% Total $1,138,291 $1,084,281 $1,124,689 $1,209,983 $1,231,459 $1,277, % 2.6% $148,510 $144,420 $155,533 $158,178 $162,994 $160, % 1.0% PAGE 10

12 TRANSPORTATION & LOGISTICS SOURCES 1. FactSet. 2. MergerMarket. 3. Pitchbook. DISCLOSURES Harris Williams & Co. ( is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services. Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number ). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business. THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US. The information and views contained in this report were prepared by Harris Williams & Co. ( Harris Williams ). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams judgment and are subject to change without notice. The financial instruments discussed in this report may not be suitable for all investors, and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams prior written consent. Copyright 2018 Harris Williams & Co., all rights reserved. PAGE 11