Low bids converted into final awards of $118.8 million. A $4.3 million award was added after market closed so low bids pending award of $33.6 million remain outstanding. Yesterday, final awards of $118.8 million were announced, including several projects that we highlighted as pending at the start of the week. The awarded work includes capital work of $75.6 million, coastal protection work of $37.0 million and maintenance work of $6.2 million. The two largest projects in Charleston and Freeport represented ~$68.4 million of our low apparent bid estimate, but several low bids on other projects were not included and are pending award. The Fernandina Harbor award of $4.3 million was finalized late yesterday so we consequently estimate that low apparent bids of $33.6 million remain outstanding.Combined with awards announced in mid-August that totaled ~$118 million, the new awards of $119 million and low bids pending award of $38 million should help stabilize backlog in 3Q2020. In 3Q2020, awards of $237 million have been announced, including $119 million announced yesterday and $118 million announced in mid-August. The scope of work is broad and it includes a total of six projects, including five maintenance awards for $84.8 million, three capital awards for $75.6 million, and four coastal protection awards for $76.2 million. In total, the new awards and remaining low bids pending award approach $275 million and support our constructive view. News expected shortly on large opportunities, including Jacksonville C. While backlog has dropped for the last three quarters to $433 million, a solid 2H2020 rebound is expected with announced awards, low bids pending award and large opportunities on the horizon.Maintain Outperform rating and price target of $14.35/share due to continued confidence in 2020 outlook and the added positive of the new stock buyback program. Despite the positive response to 2Q2020 operating results and the stock buyback program, GLDD has faded a bit over the past month and remains down 19% this year. We expect the stock to rebound since concerns about the below average project win rate and backlog direction should not linger with the announced and soon to be announced awards. We also believe that the current EV multiple of 4.4x 2020E EBITDA and the stock buyback are positives.Read More >>