Tampa yard sale closing is a positive step forward. There was no appeal of the May 6th second reading and approval by a 4-1-2 vote of REZ-20-92 to rezone the West Tyson property to PD (planned development, etc) so the sale of the Tampa yard closed. The sale generated net proceeds of $22 million and a unquantified gain will be recognized.Financial flexibility increases. Pro forma cash should approach $30 million in 2Q2021 and other asset sales of ~$5 million should close in 3Q2021. While the ERP program is under way, there is a strong preference for growth-oriented investments, like the renovation of an existing barge. Absent an acquisition, a dividend and/or a stock buyback seem possible since the one-year credit facility recently expired.Recent awards are positive and outlook appears constructive. New awards for $38 million in Marine and $17 million in Concrete were announced in mid-May. The Galveston concrete work highlights the collaboration potential of the Concrete and Marine divisions working together. The awards also appear to be incremental to potential backlog and industry fundamentals remain positive, with bids outstanding of close to $1.9 billion (~75% in Concrete).Maintain 2021E EBITDA of $47.0 million, including asset sales of $1.6 million. Tough comps are ahead, but Marine results should pick up and Concrete has upside potential. 1Q2021 backlog of $365 million dropped for both Marine and Concrete, but low bids pending award of $134 million increased $38 million so potential backlog remains high at $499 million.Maintain Outperform and increase price target to $9.00/share from $8.25/share. We believe that the current stock price doesn't fairly reflect improved execution and higher profitability triggered by the ISG restructuring. Strong 2020 operating performance set the bar high and 2021 comps are challenging, but improved profitability, lower financial leverage and attractive valuation of 4.0x 2021E EBITDA supports our view that the risk/reward profile remains compelling. Potential catalysts include added awards, 2Q2021 operating results, infrastructure legislation, the closing of the Tampa yard sale yesterday and the likely closing of the Port Lavaca sale in 3Q2021. Read More >>