TABLE OF CONTENTS


  

 
 
I. EXECUTIVE SUMMARY 3
II. INDUSTRY THESIS: DOWN BUT NOT OUT 6
Steering Through Uncertainty 7
Ride the Transports out of the Doldrums 10
Risks of Investing in Trucking 13
III. CONTRANS INCOME FUND: INITIATING COVERAGE 14
Company Overview: Riding a Variable Cost Model 14
Investment Thesis and Recommendation 15
Segments and Strategy 17
Financial Projections 20
Cash Flow and Balance Sheet 22
Valuation 23
Financial Model: Contrans Income Fund 24
IV. TRANSFORCE INC.: INITIATING COVERAGE 25
Company Overview: Diversified Canadian Trucking 25
Investment Thesis and Recommendation 26
Segments and Strategy 28
Financial Projections 33
Cash Flow and Balance Sheet 35
Valuation 37
Financial Model: TransForce Inc. 39
V. TRIMAC INCOME FUND: INITIATING COVERAGE 40
Company Overview: The Bulk Specialist 40
Investment Thesis and Recommendation 41
Segments and Strategy 42
Financial Projections 44
Cash Flow and Balance Sheet 45
Valuation 46
Financial Model: Trimac Income Fund 47
VI. VITRAN CORPORATION: INITIATING COVERAGE 48
Company Overview: Southern Exposure 48
Investment Thesis and Recommendation 49
Segments and Strategy 51
Financial Projections 53
Cash Flow and Balance Sheet 56
Valuation 57
Financial Model: Vitran Corporation Inc. 58
APPENDIX I: TRUCKING INDUSTRY OVERVIEW 59
If you got it, a truck brought it! 59
Industry Drivers: Riding the Economic Highway 61
Cost Structure: Driving Forward in a Low-Margin Industry 63
Secular Challenges: Facing the Oncoming Headlights 64
Structure and Evolution: From Weak Hands to Strong 66
APPENDIX II: CANADA’S LEADING TRUCKERS 68
APPENDIX III: COMPREHENSIVE COMPARABLES TABLE 69
DISCLOSURES 70