Interim CEO. The key Company development was the appointment of Austin Shanfelter as Interim CEO on April 7th. A member of the Board since 2007, Mr. Shanfelter brings a wealth of experience to the position, including as Chief Executive Officer and President of MasTec from 2001 to 2007. Short-term Goals. Although it is in the early days, among Mr. Shanfelter's immediate goals is to improve the quality of the backlog, improve utilization of the asset base, and enhance efficiencies to capitalize on industry tailwinds. Given Mr. Shanfelter's background, we believe he will be successful in implementing the necessary changes to improve Orion's operating performance. Asset Sales. Orion continues to move forward on the sale of excess property, which could bring in $35 million of gross proceeds, with proceeds to be used to pay down debt. Mr. Shanfelter has indicated to either see the sales close in the near-term or seek out a different path to monetize these surplus assets.Updated Projections. With Interim CEO Shanfelter's goal of only bidding on projects that meet appropriate margin profiles, Orion could see some short-term retraction in its pipeline. We are taking a cautious stance on the second quarter. While the first quarter is historically the softest, we only raised our 2Q22 revenue estimate to $160 million from a prior $155 million. We also scaled back our margin expectations to be more reflective of 1Q22 margins, resulting in a projected net loss of $0.03 per share, down from our prior loss of $0.01/sh. Adjusted EBITDA remains at $5.75 million.Maintain Outperform and $6.00 PT. We believe that the current stock price does not reflect the prospects for better execution and solid market fundamentals. Recovering profitability, higher backlog, and attractive valuation of ~2.8x 2022E EBITDA supports our view that the risk/reward profile remains compelling. Potential catalysts include added awards, improved execution, and the closing of real estate sales. Read More >>