2021 Results out this week — BMO on Wednesday February 16th. Management will host a 10:00am EST call on Wednesday, February 16th to discuss the operating results and the 2022 outlook. The number is 877-377-7552 and the code is 5544504. Looking for 4Q2021 EBITDA of $42.4 million and 2021 EBITDA of $121.6 million.Big news of 4Q2021 was final investment decision (FID) and shipyard engagement to build first Jones Act qualified incline fallpipe rock installation barge. A contract for $197 million was awarded to Philly Shipyard, a publicly traded Norwegian company that is majority owned by Aker Capital. The goal is to construct the first Jones Act complaint vessel to assist in the installation of the wind turbine towers in US offshore areas beginning in 2025. The payment schedule is favorable and there is an option on a second rock dumper barge that expires in one year.4Q2021 Bidding started off on a good note. Recent awards added to 4Q2021 backlog include South Atlantic Regional Harbor for $25.8 million (excluding options of $3.6 million) and the Oak Island Renourishment Project 2021/2022 of $17.1 million. Also, the Port Houston award of $92.5 million was finalized is late November, which adds to 4Q2021 backlog. In addition, a large job near the Rockaways, New York and the second phase of work on the Houston Ship Channel are on the horizon.Maintain Outperform rating and price target of $17.05/share due to new awards, recovering backlog and fleet renewal program. We are encouraged that the stock was able to shake off softer 2Q/3Q2021 results and ended 4Q2021 with a gain of 4%. We think the 2Q/3Q2021 results shortfall should prove to be speed bumps, but the stock is off to a relatively weak start this year. Following a loss of 13% in January and a flat February, we believe that the risk/reward profile is very favorable. Trading at an EV multiples of 9.9x 2021E EBITDA and 7.3x 2022 EBITDA, the stock remains attractive due to recent awards, recovering backlog and a successful 2Q2021 debt refinancing. Read More >>