1 Vision Statement Medallion is recognized as a leading Transportation Solution Company built on traditional core values and a valued partner to our Business Agents, Capacity Providers and Customers Safety Integrity Accountability Communication Stability While creating and maintaining The Gold Standard in Safety & Service 2 3 Fact Sheet Medallion Transport Holdings, Inc. Corporate offices: Moorestown, NJ – Credit, Finance Mooresville, NC – Operations, Safety & Business Development SR Management possess over 100 years industry experience & successful track record Gary Weilheimer – CEO, Founder Bill Winey – COO Richard Panuski – SVP Sean Bauder – CFO Medallion portfolio companies have built a superior operations network (See office location map), Owner Operators and Carriers dedicated to providing the highest level of service and safety Medallion has rapidly filled the need in the marketplace for a top quality carrier by focusing on safety, providing superior service and financial stability to our customers and large diverse capacity pool Medallion recognized by Grant Thornton LLC – Top 100 Private Companies 3 consecutive years 4 Agent/Office Locations 5 Service Offering Core Agent Platform Rail & Barge International •Truckload •Brokerage FF&E Management Medalli on Transpo rt Holding s Corporate Brokerage Services Warehouse Delivery & Installation LTL Platform Driver Recruiting 6 Medallion Transport Holdings, Inc Operating Entities Medallion Transport Holdings, Inc. Medallion Transport & Logistics LLC Medallion International LLC Ace Heavy Haul LLC NHH Services LLC Trailblazer Logistics LLC Transport Worldwide LLC 7 Medallion Transport and Logistics • Primary Equipment is Van, Flatbed, and Stepdeck • Nationwide Coverage • Customs Bonded Carrier, CT-PAT compliant, Smart-way Certified Medallion International • Primary Equipment is Flatbed, Step-deck, and up to 7 axle Lowboys • Nationwide and Canada Coverage • CT-PAT Compliant Medallion Transport Services • • • • Corporate Brokerage LTL LTL Software Platform International Import and Export Services NHH Services • Primary Equipment is Flatbed, Step-deck, and Lowboys up to 13axle Extendable & Double Drops • Specialized Over-dimensional/Heavy Hauling • Nationwide Coverage • Baytown 6 acre yard offers Outside Storage, blocking and bracing. • Forklift Services • UIIA active, CT-PAT compliant CC Medallion Growth Revenue (millions) 81 65 50 36 24 10 2009 2010 2011 2012 2013 2014 17 18 Safety First Focus & Commitment Safety Department 20 SR MGMT Safety Commitment Monthly Safety Calls Participants: Executive Management, Safety Personnel, AIG, Marsh Purpose: Safety Department generated internal Transit reports are reviewed monthly and are analyzed for trending concerns. Transit reports are forwarded to each respective agent to: Keep agents abreast of driver/trending issues Review plan for corrective action Quarterly Insurance Reviews Participants: Executive Management, Safety Personnel, AIG Purpose: Quarterly reviews with AIG provide details as to accident/claim frequency and type. This information is reviewed and incorporated into field safety meetings to bring awareness and corrective action plans into place. Quarterly Claims Reviews Participants: Executive Management, Safety Personnel, AIG, Marsh Purpose: Quarterly reviews are held to discuss the status of open claims. Each claim is reviewed in detail and suggestions are made on how to proceed. 21 Qualification of Drivers & Equipment At least 23 years of age at time of application Valid CDL and any endorsements Current physical and medical card Negative pre-employment drug screen No DUI convictions in the previous five years No felony convictions in the previous seven years No safety-related revocation of driving privileges in the previous five years Verifiable Over-the-road driving experience of one year in the last three Minimum of one year experience with trailing equipment applicant wishes to pull Applicant shall meet the moving violations and accident guidelines as follows: In the prior three years: No more than three (3) moving violations or two (2) preventable accidents No more than a combination of three (3) moving violations and preventable accidents (All serious violations, as defined by FMCSR 383.51, will be counted as two (2) moving violations) There shall be no preventable DOT recordable accidents within the past 12 months Applicant shall consent to the PSP (Pre-Qualification Screening Program) Federal inspection within previous thirty days at time of lease Receipt copies for all recent preventative maintenance Valid registration 22 M.U.S.T. (Managing and Understanding Safety Together) Goals for this program: Communication with drivers Maintain professional accreditations Provide regulatory updates Provides the driver with a resource to ask questions Topics always discussed on the calls include: Hours-of-Service Load Securement Pre/Post-Trip Inspections Conforming with Speed Limits Roadside Inspections and Proper Procedures Accidents / Claims and Proper Procedures Other topics discussed throughout the year include but are not limited to: Holiday Traffic Conditions Annual Programs such as Road Check / Brake Safety Week / Operation Safe Driver Weather Conditions No Drop Trailer Policy 23 Log Compliance Audits Log Compliance Audits are performed daily on top of the 100% audit performed by our third party administrator, Operating Tax Systems. Logs are scanned for: Form and Manner Incompleteness 30-Minute Break Violations Obvious 10-Hour Break Violations Any discrepancies are immediately addressed with the driver. Those drivers discovered not in compliance are placed on a Watch List so as to monitor corrective action going forward. If a driver does not show improvement within 30-days from the date of counseling, the driver will be subject to disqualification. 24 Mock Audits In an effort to reduce potential errors found in a typical Federal Compliance Review, our company performs monthly mock audits. The mock audits are in addition to the 100% audit on logs provided through our third party administrator, Operating Tax Systems. Ten percent of the driver pool is audited monthly and a full investigation is performed for accuracy, just as it would be in a Federal Compliance Review. Each driver selected is audited on: 1. 2. 3. 4. 5. 6. 7. Complete month of logs Legibility Form and Manner DVIR (Driver Vehicle Inspection Reports) Hours-of-Service including the 11/14/70 hour and 30-minute break regulations Bill of Lading Documents and Log Accuracy Fuel Stop Supporting Documents and Log Accuracy Drivers found to have discrepancies are immediately contacted, counseled, and placed on a Watch List so as to monitor on-going improvements. Should improvements not be made within 30-days from the date of counseling, the driver is subject to immediate disqualification. This program has proven quite beneficial in identifying potential issues/risks in a more proactive manner. 25 CSA Monitoring • We know where we stand before the CSA Data is pulled Inspections checked daily Internal tracking system Tracks inspections per driver, by agency and trending details Reports from internal audits Counseling Calls 26 27 Data Q Challenges Roadside Report Counseling Our drivers are the direct link to our CSA scores. As such, roadside compliance is imperative. • • • • Portal is checked daily for new inspections Calls immediately placed to: • Congratulate for clean inspections • Interviewed for specifics on any violations found Repair documentation secured Compliance with State / Federal regulations Roadside inspections with violations typically out-weight clean/violation-free inspections. Challenges are entered based on: • • Violations coded incorrectly Non out-of-service violations coded as out-of-service Inaccurate violations put stress on the time/weight calculations. In the past year, the Safety Department successfully challenged and removed/reduced approximately 69 % of those violations originally cited. 28 Field Safety Meetings Hosted by either VP of Safety, Field Safety Manager or Field Safety Compliance Coordinator Provided to drivers and agents – safety commitment at the terminal level Attendance required (minimum 1 meeting per year) Purpose of meetings: Regulatory and Company policy updates Status as to personal performance CSA goals Advise on quarterly insurance trending reports Medallion utilizes the following consultants in addition to its trained safety personnel NATC (North American Transportation Consultants) NCTA (North Carolina Trucking Association) CVSA (Commercial Vehicle Safety Alliance) 29 Program Success Our programs and commitment to success have been proven in our past three full Federal Compliance Reviews. All have resulted in Satisfactory ratings with no acute and no critical violations found! October 10, 2013 October 25, 2011 July 2, 2010 30