Smooth CFO transition underway. We caught up yesterday with Scott Kornblau who recently joined as SVP and CFO. Based on our meeting, we believe that Scott is a great addition to the executive team, and his 20-plus years of experience, including CFO at Diamond Offshore Drilling, has made the transition smooth. The change was driven by the HQ relocation, and Scott is already up and running in Houston. We expect no changes to the current strategic direction, including moving into offshore wind. We will miss the former CFO, but look forward to working with Scott.Another low bid out. Bids on South Atlantic Regional Harbor Dredging (W912PM21B0008) were opened on Tuesday afternoon and GLDD was the low bidder at $29.4 million. The IGE was $28.3 million and Manson bid $31.6 million. The work includes work at five harbors along the east coast and is broken down as follows: $8.3 million for Morehead City, $4.6 million for Wilmington, $4.5 million for Brunswick, and $3.1 million for Savannah, with overall project costs of $4.0 million. The low bid also included options for work in Charleston for $4.8 million. The project is attractive since it fits weather/environmental windows and hopper dredge availability.3Q2021 awards to date total $302.9 million. Including three recent awards of $65.9 million and previously announced 3Q2021 awards of $237 million, total 3Q2021 awards approximate $302.9 million. Please note the low bid discussed above has not been awarded yet.No change in dredging market outlook. The dredging market outlook remains solid and potential infrastructure spending creates a tailwind. Bidding has been active, and bids on several other projects are slated for opening shortly so recent bidding success sets up for a 2H2021 recovery.Maintain Outperform rating and price target of $17.05/share due to recent awards, the fleet renewal program and disciplined capital allocation. While the stock is up 11% this year, softer 2Q2021 results have dampened stock price performance over the past two months and the stock is off to a weak start to 4Q2021, down 3%. We attribute the 2Q2021 shortfall to COVID-19, which should be transitory, and the risk/reward profile remains favorable so we expect the stock to rebound. We believe that the current EV multiple of 8.3x 2021E EBITDA is attractive due to recent awards and a successful debt refinancing in 2Q2021. Read More >>