Several awards announced. Total awards of $51.1 million include Coastal Protection work of $44.0 million and Maintenance work of $7.1 million. Please see page two for more details.No change in dredging market outlook, but competition has increased. The recent backlog trend has been down and backlog has dropped over the past two quarters to $475 million, but smaller projects have successfully sustained operating results, including a record 1Q2020. News expected this quarter on several large opportunities and Jacksonville C in 3Q/4Q2020 should help stabilize backlog and create visibility into next year.Fleet renewal on the horizon. New build one approved and option for new build two creates optionality. The final investment decision (FID) to build a 6,500 cubic yard (CY) hopper dredge was reached and a contract was signed with Conrad Shipyard in Louisiana. The total cost of new build one is ~$97 million with expected delivery in 1Q2023. There is a one-year option for new build two for $92.7 million so the new build program could approach $190 million. Added details should be available once the 2Q2020 10-Q is filed in early August.Strong credit profile makes new build program manageable and debt refinancing likely. The decline in net debt into the sub-$120 million range in 1Q2020 strengthened the credit profile and should allow for financing the new build(s), plus refinancing existing debt, once the credit market normalizes. While we haven’t published estimates beyond 2020, the new build program appears very manageable since current cash is $207 million and estimated free operating cash flow is $74 million in 2020 after including 2020 capex for new build one.Maintain Outperform rating and price target of $13.80/share due to continued confidence in 2020 outlook. While GLDD has rebounded from the March low and was up 12% in 2Q2020, the stock is down 22% this year. Despite the weak start to 3Q2020 with a loss of 5%, GLDD is poised to move higher. We believe that the decision to move forward with new build program is a strong signal in the confidence in the dredging market outlook. Other potential catalysts include several potential larger awards later this year, infrastructure stimulus legislation, and debt refinancing.Read More >>