Good day, thank you for standing by. Welcome to the fourth quarter 2022 Great Lakes Dredge and Dock Earnings Conference Call. At this time, all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Tina Baginskis, Director of Investor Relations. Please go ahead. Thank you. Good morning and welcome to our fourth quarter conference call. Joining me on the call this morning is our President and Chief Executive Officer, Lasse Petterson, and our Chief Financial Officer, Scott Kornblau. Lasse will provide an update on the events of the quarter and the year, then Scott will continue with an update on our financial results for the quarter and the year. Lasse will conclude with an update on the outlook for the business and market. Following their comments, there will be an opportunity for questions. During this call, we will make certain forward-looking statements to help you understand our business. These statements involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from our expectations. Certain risk factors inherent in our business are set forth in our earnings release and in filings with the SEC, including our 2021 Form 10-K and subsequent filings. During this call, we also refer to certain non-GAAP financial measures, including adjusted EBITDA, which are explained in the net income to adjusted EBITDA reconciliation attached to our earnings release and posted on our investor relations website, along with certain other operating data. With that, I will turn the call over to Lasse. Thanks, Tina. As seen in our financial results, 2022 turned out to be challenging. We entered the year with a good backlog, a solid cash position, and a record U.S. Army Corps of Engineers budget of $8.3 billion. We had high expectations to return to normal operations after overcoming the challenges from COVID-19 in 2020 and 2021. As the year progressed, we saw significant delays in the overall dredging bid market and specifically large capital and port deepening projects were delayed, with bid dates now moved into 2023. According to our bid re-records, the overall dredging bid market in the first 4.5 months of 2022 was less than 50% of previous year's averages, which severely impacted our fleet utilization in the second half of 2022 as a portion of our annual revenues rely on projects bid and executed within the year, which we call book and burn. Typically, the majority of these projects are beach renourishment projects or, and coastal restoration projects which carry higher margins. Overall, for 2022, the bid market for beach renourishment projects were about only at 73% of the 2021 levels, and coastal restoration projects were at 57% of 2021 levels. To some extent, the lack of capital work was replaced by an increase in maintenance work. However, maintenance projects typically earn lower margins due to the nature of the work and the competitive landscape. As bidding picked up in the second half of the year, we won 47% of the bid volumes and ended the year with $375.5 million of dredging backlog and $584.7 million in open options and projects pending award. The U.S. Army Corps of Engineers is the largest client, and during the year we held numerous and constructive discussions with the Corps leadership on what was impacting the bid market and how to resolve the issues. We have started to see positive developments for 2023. Other external issues also significantly impacted operations. High inflations impacted projects and dry docking costs, and supply chain issues delayed dry docking completions. We experienced unseasonal and extreme weather conditions on some of our projects on the East Coast. We experienced more than normal challenging soils and site conditions on projects. Claims related to these projects are still pending resolution. Revenue and profit recognitions are impacted until these discussions are completed. The fourth quarter was impacted by the same issues as we have experienced this year. Specifically, we had significant weather impacts from storms in the Northeast. The earlier than planned hopper dredge requirement of the Terrapin Island dredge and both the Ellis Island and Padre Island had lengthy stays in dry dock, which increased costs and delayed revenues into 2023. We have through the year been taking action to adjust to the current difficult market conditions, as well as preparing for future years. We have temporarily cold stacked two dredges and related support equipment, which will reduce operating costs. The cold stacked dredges can easily be reactivated when we see the bid markets improve. In our fleet renewal and improvement program, the 42-year-old hopper dredge, the Terrapin Island, was scheduled for retirement following the delivery of the new hopper dredge, Galveston Island, mid-2023. A major mechanical issue, combined with a delayed bid market, led to a decision to retire her now in the fourth quarter of 2022. Correspondingly, we have during the year, been reducing our general and administration and overhead cost structure to reflect the current market conditions. Earlier this month, we had an additional 10% reduction in G&A and overhead staff, and we target a further 5% reduction in 2023 through natural attrition. As we adjust to the current market situation, we remain optimistic in the long-term outlooks for both dredging and offshore wind markets. Our ambition is to continue to be the U.S. industry leader in our selected market segments. An important part of our strategy is to keep our fleet renewal program moving forward as planned. After decommissioning several of our oldest dredges in 2012, 2017, we have invested in productivity upgrades to our best-performing vessels. Our new hopper dredge, the Galveston Island, is on budget and is expected to be operational in the middle of 2023. Her sister ship, the Amelia Island, is expected to be delivered in 2025. Our U.S.-flagged Jones Act-compliant inclined pipeline vessel for subsea rock installation is on budget and expected to be ready for operation in the first half of 2025 to start working on the Empire Wind 1 and 2 projects for Equinor and bp. I will now turn the call over to Scott to further discuss the results of the quarter and the year, and then I will provide further commentary around the market and our business. Thank you, Lasse. Good morning, everyone. Let me start by walking through our fourth quarter results, which include a non-cash $8.1 million write-down for the retirement of the Terrapin Island. For the fourth quarter of 2022, revenues were $146.7 million. Net loss was $31.2 million, and adjusted EBITDA was negative $24.2 million. Revenue of $146.7 million in the fourth quarter decreased $63.3 million from the prior year fourth quarter, mostly as a result of lower capital revenue, which was driven by a substantial decrease in the Army Corps' capital projects bid in 2022 and lower coastal protection dredging revenue, partially offset by higher maintenance project revenue. Fourth quarter 2022 revenue came in lower than expected, primarily due to longer than expected dry docking of the Ellis Island and Padre Island, the unexpected early retirement of the Terrapin Island, production issues on a few jobs, and significant downtime due to weather. Current quarter gross profit and gross profit margin were negative $16.2 million and negative 11% respectively, compared to $53 million and 25.2% respectively in the fourth quarter of 2021. Similar to revenue, gross margin was impacted by the unexpected dry docking scope increases, which resulted in additional costs and delays for the dredges, the Ellis Island and the Padre Island. The earlier than expected retirement of the Terrapin Island and production issues on a few projects. The mix of projects also negatively impacted gross margin as we had less than half the capital revenue in the fourth quarter 2022 compared to the same quarter of 2021, driven by the slow and unusual 2022 bid market. In addition, weather along the Northeast coast continued to severely impact those jobs. During the quarter, we were working three major Northeast projects. Collectively, these jobs had over 40% downtime in the quarter due to inclement weather. We also worked several other smaller jobs along the East Coast that were similarly impacted. Operating loss for the current quarter of $36.7 million decreased from prior year quarter's operating income of $36.5 million. The decrease is a result of the lower gross margin and the one-time non-cash $8 million charge due to the retirement of the Terrapin, partially offset by lower general and administrative expenses compared to the prior year fourth quarter. Fourth quarter 2022 G&A of $12.4 million is $4 million lower than the same quarter last year due to our continued efforts on cost reduction. Net interest expense of $3.2 million for the fourth quarter of 2022 came in as expected and was down from $4.2 million in the fourth quarter of 2021, primarily due to additional capitalized interest on the new builds. Fourth quarter 2022 income tax benefit of $8.4 million compared to income tax expense of $8 million from the same quarter of 2021 was driven by the lower current quarter income. Rounding out the P&L, net loss for the fourth quarter of 2022 was $31.2 million, down from $24.7 million of net income in the prior quarter. Turning now to our full year results. Revenue for 2022 was $648.8 million. Net loss was $34.1 million, and adjusted EBITDA was $17 million. These results represent a $77.4 million decrease in year-over-year revenue, a decrease in net income of $83.5 million, and a decrease of $110.5 million in adjusted EBITDA. 2022 results were greatly hindered by rampant inflation, supply chain delays, less higher margin capital projects, significant weather delays, production issues, unplanned maintenance, and a high number of differing site conditions on projects, in addition to the slow bid market, which left us with more than expected idle time during the year. During 2022, we also had regulatory dry docking on five dredges, including the Liberty Island and the Ellis Island, two of our largest and most productive dredges. In addition, we performed emission upgrades to the Carolina. Turning to our balance sheet, we ended 2022 with $6.5 million in cash and nothing drawn on our $300 million revolver. 2022 capital expenditures were $144.7 million, which included $42.9 million for the Galveston Island, $42.4 million for maintenance CapEx and emission upgrades, $27.2 million for the construction of new scows and multicat, $16.8 million for the design and build of the subsea rock installation vessel, and $15.4 million for the build of our second new hopper dredge, the Amelia Island. I'll conclude with some commentary on the upcoming year and quarter. We are entering the year with $377 million of backlog. However, because of the unusual 2022 bid market, only $148 million of the backlog is made up of high-margin capital work. This is 39% of the prior 4-year average of $379 million of capital work in backlog entering the year. Because of this, margins will be lower than historical levels during the first two to three quarters of the year. The path to normal margins returning in the fourth quarter of 2023 is contingent on the large port deepening and widening projects bidding in the first half of the year. Moving to the fleet, as Lasse mentioned earlier, we currently have two vessels cold stacked with no crews and minimal cost. If follow-on work does not materialize for a couple of other currently working older dredges, we will take similar cold stacking actions on them to take out costs. When the bid market picks up, we can quickly and efficiently reactivate these vessels. We have other cost-cutting initiatives ongoing, including the recent headcount reduction, further rationalization of support equipment, and a greatly reduced operating expense budget. 2023 will be a lighter dry docking year than 2022. Currently, the Ohio is in the shipyard for her regulatory dry docking. 2 other dredges are scheduled to go into dry dock this year, one in the second quarter and one in the third quarter. Timing of dry dockings are estimates and can move to the left or right depending on scheduling. Turning to capital expenditures, we expect 2023 CapEx to be around $175 million, comprised of approximately $85 million for the SRI wind vessel, $35 million and $20 million respectively for the Amelia Island and Galveston Island new builds, $10 million to finish construction of the multicat, and $25 million for maintenance CapEx. Far this year, we have drawn $65 million on our revolver to help fund the progress payment that were due and plan to continue utilizing the revolver and operating cash flow to support the new build program. In January of this year, we applied with the Maritime Administration, or MARAD, which is a unit of the Department of Transportation, for Title XI financing, which typically comes with very attractive terms. MARAD announced in 2022 that they want to facilitate more offshore wind construction and have designated vessels like our subsea rock installation ship as vessels of national interest, which will prioritize our application for review and funding through Title XI. While we work with MARAD on the process, which can take up to 9 months, we will continue to explore other sources of capital. Moving to the 1st quarter of 2023, utilization looks solid as most of the available vessels have worked for the majority of the quarter. Both the Ellis Island and Padre Island are currently working following their dry dockings. The Ohio should complete her regulatory dry docking towards the end of the 1st quarter and will go straight from the yard to a job. Utilization is strong, the 1st quarter will be negatively impacted by some remaining drag on prior year projects that are still ongoing. In addition, weather continues to be a problem on multiple projects in the Northeast. Finally, the projects we are working in Q1 consist of a high volume of lower margin maintenance work. With that, I will turn the call back over to Lasse for his remarks on the outlook moving forward. Thank you, Scott. We continue to see strong support from the Biden administration and Congress for the dredging industry. As you saw in December 2022, the Omnibus Appropriation Bill for fiscal year 2023 was passed, which included another record budget of $8.7 billion for the U.S. Army Corps of Engineers Civil Works program, for which $2.3 billion is provided for the Harbor Maintenance Trust Fund to maintain and modernize our nation's waterways. In addition, the Disaster Relief Supplemental Appropriations Act for fiscal year 2023 was approved, which includes an additional $1.5 billion for the Corps to make necessary repairs to infrastructure impacted by hurricanes and other natural disasters, and to initiate beach renourishment projects that will increase coastal resiliency. We anticipate bids for new phases for larger port deepening projects previously planned to be bid in 2022 will bid in the first half of 2023. Expected port deepening bids include the ports of Sabine, Freeport, Mobile, San Juan, Houston, Corpus Christi, and additional phases on Norfolk. Included in our low bid spending are 2 liquid natural gas projects that has been awaiting notice to proceed from our clients. Several North American LNG export projects have been delayed in the past couple of years during the pandemic, but these LNG projects appear to be gaining momentum and are targeting final investment decions in 2023. Our expectation is that we will contract at least one of these major dredging projects this year. The increased budget and additional funding, combined with expected bids for the delayed port deepening projects and LNG projects, support our expectation for a strong 2023 bid market. At the end of the year, the Water Resources Development Act of 2022, or the WRDA 2022, was approved by Congress and signed into law by the President. WRDA is on a 2-year renewal cycle and includes legislation that authorizes the financing of course projects for flood and hurricane protection, dredging, ecosystem restoration, and other construction projects over the next 5 years. The WRDA 2022 features, among other things, authorization for the New York and New Jersey shipping channel to be deepened to 55 feet, estimated at $6 billion, as well as the Coastal Texas Program, estimated at $30 billion. Finally, a few comments around offshore wind. In 2021, the current administration announced the ambitious goal of 30 gigawatts of offshore wind by 2030, and provided $3 billion in federal loan guarantees for offshore wind projects. As stated previously, Equinor and bp has already awarded Great Lakes the rock installation contract for the Empire Wind 1 and 2 projects. We have tendered and are in discussions with several other offshore wind farm developers for projects commencing rock placements in 2025 and beyond, which supports our plan to have a full work schedule for the SRI vessels as she starts operation in 2025. We have been managing through a very unusual and difficult environment in 2022, and we are starting 2023. We look forward to an improved bid market and dredging work volumes in second half of the year and onwards. Combined with delivery of the Galveston Island and the cost reduction and operation improvements initiative we have in place, we are confident to manage through the current difficult market situation and deliver improved results in 2023 and beyond. With that, I'll turn the call over for questions. Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Adam Thalhimer from Thompson Davis. Your line is open. Thanks. Good morning, guys. Yeah. Good morning. Can you give a little bit more details on what you're currently seeing from the Corps in terms of bidding? What's your confidence that the bidding will improve as we move through this year? Yeah, I can comment on that. The last year's activity in the bid market was really the change of mix from capital works to maintenance dredging works. We see this, the projects that were delayed from 2022 to 2023 has fairly, let's say defined bid dates. We are optimistic to see these capital projects are now being bid and executed through 2023. The LNG projects will take some time before the dredging works picks up in large volumes, but we see that start happening towards the end of the year. Okay. You're on the larger capital projects, Lasse. Your teams are working on those now, or you're still waiting for formal notification from the Corps? What we are waiting for on the port deepening projects is for the bids to be issued to the market. These bids for the ports that I mentioned, the port deepenings that I mentioned, seems to have firm bid dates. From the time that the bids are issued until dredging can start, as we have said before, is typically some 6 to 8 weeks. Perfect. Okay. Very helpful. Scott, are you willing to kind of help level set? I think you gave a good way to think about margins for 2023, but just for Q1 specifically, I'm curious if margins for Q1, we should expect at least on the gross margin line, a positive result. Yeah. Adam, I'm not gonna give that kind of granularity. You know, I will kind of this quarter like I did, we'll continue to give updates, you know, how we see the fleet in terms of which vessels will be working, how utilization's shaping up, dry docking, if there's any challenges we're facing like we are, the weather this year, you know, and on the bid market. You know, utilization is strong this quarter. The vessels that are not cold stacked and dry dock have, you know, are working the majority or all of the quarter. We do have the drag that I've talked about. Just with all the macro drivers that do influence results quarter to quarter, I'm gonna shy away from guidance, but I will give commentary on how we see it shaping up. To answer your question, do I expect to see margins higher than Q4? The obvious answer is yes, but that's not saying much with how Q4 went. So far, Q1 is shaping up as expected. We have not seen any surprises except for the weather. Good. Okay. Last one, then I'll turn it over. The differing site conditions, are you still in discussions with customers on potential compensation on those? Yeah. Adam, you know, we called out the 3 claims last quarter. Those have not settled. They are in various stages of discussions right now. 2 of those have been submitted, and the 3rd one, the job is wrapping up and should be done this quarter. You know, the reason we pointed these out last year, it's unusual to have 3 large claims hit in 1 period. We wanted to have visibility on that. The good news is we haven't seen any other major different site conditions. We had said it was an anomaly and it's proven out to be. You know, as I previously mentioned, two of these claims are with clients that we have a very long-standing relationship with, and we may have good conversations going on and expect those to settle, you know, in the next quarter or so. The third one is a smaller different government entity that we said all along, this one will take longer to resolve. Nothing has changed on that, but these are progressing as they normally do. They just take some time. Okay. Good color. Thanks, guys. Good luck in Q1. Thanks. One moment for our next question. Our next question comes from the line of Jonathan Tanwanteng from CJS Securities. Your line is open. Hey, good morning. Thank you for taking my questions. Scott, I was wondering if you could break out the headwinds that you faced in Q4, you know, between weather, you know, site issues, unexpected inflation, the dry docks and the retirements. Could you just tell us, you know, the what relative size of those were in the buckets and kind of how much you've budgeted for each of those, leaning into Q1, whether it's weather, inflation or other stuff? Yeah. I'm not gonna quantify. I will, however, talk in kind of degree of severity on what impacted us. You know, I mean, obviously the $8 million write-off of the Terrapin, we can kind of normalize it from that. We did, though, lose about half the quarter of projected Terrapin margin as well in addition to the write-off. You know, that was just lost work. The dry docking scope increases, again, that's a double whammy. There were some increased costs, but I think more relevant, especially for the Ellis, was that delay did not allow her to earn margin. As you know, she is right at the top of the margins to have vessels. That was pretty impactful. The weather, you know, I've talked about that, you know, having three major jobs with 40% downtime. I mean, 40% of the time it was not working. Even when it is working in higher seas, it does impact production. We were able to work that 40% with actually zero down days. Those were really the big drivers, you know, that had, I would say, the largest impact. You know, inflation was not, you know, as impactful as we had seen in the past. You know, I told you we were gonna make adjustments to the way we bid the project. A lot of these projects that we started working in Q4 was that $390 million of work that we did win in Q3. We did make adjustments there. We did not see a huge impact of that. It was really weather production, the dry docking, and then the Terrapin missed opportunity and write-down. Okay, great. How much of an impact has weather been in Q1 so far? It's been Q1, I mean, January in particular, it did just kind of follow on, you know, to December when we, you know, made our adjustments at the end of the year. When we kind of estimated the main job, we did up our weather impact. It has turned out to be pretty severe. The expectation is that we won't have as much of an impact because we adjusted the estimates at year-end. January was still pretty nasty. It'll have some impact, but my expectation is not as big of an impact as it had in Q4. Okay. Do you have a scheduled liquidation of backlog for the quarter? Is that adjusted for weather? I'm sorry, can you repeat that? Did you have a backlog liquidation schedule for this quarter? Is weather factored into that? It is. It is. It's all been adjusted based on our best estimate after we saw the December weather issues that we had. Okay. You frequently provided that number to investors. Would you care to do that today? Well, I gave the quantity as far as how many days were down. The impact I'm not gonna quantify. I can tell you it was well above the way that we had estimated the weather on these jobs when we first put in the bid. 40% downtime on these jobs is unusual. I'm sorry. I meant the revenue you expect to generate in the quarter from backlog. That's the number I'm looking for. Yeah. No. All... We don't have any... If where you're going with it, we're not assuming any additional revenue on top of what we have in backlog for Q1. But again, I'm not going to give a revenue number on for this quarter or going forward. od. Second, I was just wondering if you could give us a little bit more color on how you expect your revolver draw to progress through the year, just based on your expectations for margin and obviously what's in backlog and the early schedule. How much, you know, can we expect to see just in terms of drawdown, you know, at the worst, you know, as you start funding these ships? And is there a schedule for CapEx that makes any one quarter worse than any other Again, I'm not going to give what my expected draw is going to be. I will, however, kind of give you a cadence of the way the CapEx is flowing. Q1 is the heaviest CapEx quarter by a long shot. You saw that our full year 2022 CapEx was under what we were expecting, and that's because some of the Q4 payments got pushed into Q1. Of that $175 million that I guided to for the full year, I think $70 million-$75 million, again, these are fluid, they can move left or right, but you will see the largest amount. Q2 is fairly light, and the remaining balance kinda gets split equally between Q3 and Q4. Okay, great. Thank you. Lasse, do you have an expected bid market for this year? You know, last year was obviously a lot lower than expected. What one do you have a forecast for that, you know, what's your confidence level in that being hit? Yeah. The overall bid market for last year came out somewhat less than what we had in 2021. What really was the impact on us was the lateness of the bidding. There was very little bids issued for 4.5 months, in addition to the 2 last months of 2021, where there was no bid issued. That delayed the whole, let's say, revenue stream for us on book and burn. There was a lot of bids issued in June and July, and then it tapered off again. The big impact was really the change of the mix. The capital projects for port deepenings that we thought was ready and teed up by the Corps to be issued did not happen, and they were delayed into 2023. The Corps has now a very good budget for the year. We have the additional appropriation source that was done, which will fund beach restoration in the southeast. I have very high confidence actually on the bid market for 2023 based upon those facts. There's nothing certain in this world, but it certainly looks as if we're going to have a good bid market for capital projects. I think the LNG projects, one or two of those will go to FID. I'm optimistic. Jonathan, let me just put a little more color on that. You know, we talked about, you know, the slowness at the beginning, but I think Lasse is right. It was really this mix. If you look at the Corps' capital budget in 2022, or I'm sorry, the bids in 2022 on capital projects of the Corps compared to 2021, 2022 was 38% of the levels in 2021. The good news is these jobs didn't go anywhere. They are just pushing into this first half of the year. It was pretty severe on that mix of project from what we were expecting. Okay, great. I'll jump back in queue. Thank you. One moment for our next question. Our next question comes from the line of Joe Gomes from Noble Capital. Your line is open. Thank you. Good morning. Thanks for taking my questions. Morning, Joe. Just, you know, one of the things we had talked about previously, you know, and I think you touched on it a little bit, but maybe we could get some more color, you know, with Hurricane Ian and the impact, and you had talked about, you know, how quickly some of those replenishment and jobs might come out. I mean, how are you seeing those today? Are you seeing a fair number of opportunities to help restore the beaches in the that were impacted by the hurricane? Yes. I think on the last call, we commented that there would be a flurry of projects for the Southeast coming to bid here in mid this year, mid-2023, that is then funded by the additional appropriation billion that was put through Congress. I expect these beach renourishment and coastal protection projects to come to the bid market, let's call it midyear and then come to execution during Q3 and Q4 and onwards into 2024. Okay. Thanks for that. Been reading a number of articles here on offshore wind. You know, they've been quoting that, you know, some poor economics and the technology has really negatively impacted people in here. You know, Siemens, stating that, you know, really need a lot more government action and subsidies to start or to continue some of these projects. GE supposedly reporting a big loss on its wind turbine business. Supposedly, you know, somebody looking to try and get out of a project in New Hampshire. Just trying to get a, you know, better feel of, you know, what you see as the, you know, kind of the status right now in the offshore wind, you know, and are we starting to see maybe some obstacles come up that had not been anticipated previously? Yeah. I don't wanna comment on our clients', clients for their projects, but I can comment on the activity that we see in the market. As you know, we already have one firm contract with Equinor and bp. We have not seen any diminishing activity in the request for estimates and bidding and also requirements for reservation agreements for our vessel. The activity in the market does not really... I don't see the, let's say, any delay impacting what we do with our vessel on the bids that we are involved in. Yes, you are correct. The turbine manufacturers are suffering from low margins and also there are some supply chain issues which leads to delays. The projects that we have been addressing, seems to be moving forward. Okay, great. That's some good news. Thank you for that. Just given the drawdown or what you're expecting to draw down on the credit line, Scott, any can you give us any kind of indication of where you see interest expense, kind of how that's gonna play out for this year? Yeah. I mean, Joe, that would give you feel for the draw. Yeah, I'll tell you that the, this beginning part, the first half of the year will be higher draw in the first quarter particular because of the way that the CapEx is weighted and it will trickle down. You know, if I mentioned the draw that we have, you know, don't extrapolate or straight line that for the, for the rest of the year. That's not how we're seeing it. It was going to be very heavy in Q1 and then definitely, diminishing down. You know, as you recall, we did upsize the revolver last year. There is, you know, ample availability on there right now. We also did it at a time we were able to get very favorable terms. You know, we're still borrowing today at sub 6%, so, you know, it's very manageable the way we kind of see the cadence of the draws this year and the interest burden that will come from it. Okay, great. Thanks for taking my questions. One moment for our next question. Our next question comes from the line of DeForest Hinman. Your line is open. Hi. Thanks for taking the questions. Can you just help us understand where we stand with our lenders as it relates to the covenants? Just give us an update there in terms of what covenants we're dealing with. You know, based on the commentary you gave us, it seems like we're gonna need some help to kind of bridge us through some lower levels of profitability over the course of, 2023. I have some follow-ups. On the notes that are due in 2029, there are no covenants. It's a unsecured 5.25%. That one's by the revolver also has it has no hard covenant. It does have a springing covenant. That springs when availability on the revolver is less than 12.5%. It's a fixed charge coverage ratio that, with the new build program, we likely won't meet for the next couple of years. Once, if availability becomes less than 12.5%, we do that test. If we don't pass the test, it caps the availability at the 87.5%. That's the only covenants we have in either one of them. Okay. Can you give us a little bit more color on the DOT financing? I think this was something that was discussed previously, maybe a couple quarters ago. What type of rate will be looking at on that type of financing? What kind of term would we be thinking about? What we had talked about last year was actually a different program. It was through the DOE. This is different through MARAD. Earlier in the year, June, July or so of last year is when they deemed the offshore wind industry and the vessel like ours as a vessel of national interest. It really then became very attractive. If you go out to their website and play around, it does show that they are quoting rates at 10-year Treasury plus 37.5 basis points. It is 10 years up to 25 years. That is what our application had asked for, and it's very low to no amortization. Again, very attractive, backed by the government and as they're trying to really encourage investment in this. The application was submitted a few weeks ago. As I said, this will take some time. you know, it's a Q3, Q4, point that, you know, I think we know, but we are having what I would call very good dialogue with them already after we put in their application and we'll continue to work on it with them. Given how we've already started spending on the rock vessel, would we be able to take money that we've already spent for progress payments and put that on that loan, or would it only work on a go-forward basis? No. It's up to 87.5% of the full value of the vessel is the loan that you can put in for. That's what we put in for. Okay. Then just kind of taking a 10,000 foot view of things just as it relates to the Army Corps on the bids being released. I mean, it just seems kind of odd that, you know. I've covered the stock for a very long time. I think even the previous management team that was there would kind of give an expectation for the amount of bidding that would occur for the year. You know, most of it would get put out and, you know, we'd win a certain percentage of it. You know, in for 2022, this didn't really seem to be the case. Can you give us any more color as to why that happened? It strikes me as odd too because you also had a situation where the funding was there. There was, you know, you kind of said the same script last year that you said this year in terms of appropriations. Budget was high, and then the money never was let out. Was there leadership transition issues there? Was there key people that were lost within the Army Corps? Like, why did that happen? I guess what gives us confidence that it's not gonna happen again this year? Because it's proving to be, you know, highly problematic and, you know, you're having to lay off workers, which you've probably, you know, voiced that to them as a result of this. Yes. As I started my commentary about was that, at the beginning of the year, we thought that we were in a good position, good backlog. The Corps had their budgets, we were past the pandemic issues. Unfortunately what happened was, as I said, the first 4.5 months of the year, there was very little work that was being bid and put out into the bid market. The work that was being put out was the majority was maintenance work, which carries lower margins, and there's a different competitive environment around those projects compared to the larger capital projects. We have had, we always have a very good dialogue with the Army Corps of Engineers. I have numerous meetings with them. One of the reasons that they are giving is that there was a continuing resolution in place for the first half of the year. Under our continuing resolution, the Corps is limited in funding new projects. They continue to fund ongoing projects. That is one reason they gave. We are not under a continuing resolution this year, the Omnibus was passed and the Corps has the money for this year. That's similar situation. The Corps is short of personnel and also the federal agencies are partially back in the office. As a company, we have been back in our office for the last year because we saw that it's very difficult to do larger projects when not being together as a team. We movements in that during the year in the core. I think we have a good dialogue. I think the setup for 2023 is different from what we experienced in 2022, and that gives me that confidence to believe that the bid market will recover and also the mix will go back to more capital projects. Okay. Thank you. Just the last question. A couple announcements over the last month or so. Qatar doing some pretty, you know, seemingly sizable long-term LNG contracts with China. We haven't really been too involved in international dredging for a while now. Is that something that there's a revenue opportunity there, potentially redeploying some assets to the Middle East, or is that not an opportunity? The short answer is there's over the next couple of years, there's not an opportunity. I do see the domestic bid market here to recover. I do see the need for our capacity here in the U.S. We are not actively addressing and bidding international work. We are following the development. That international dredging market is competitive, and in order to address that market, we would have to have competitive and modern equipment to go to that market with. At this moment, our investments are going into the U.S. dredge offshore wind. That's where we see the best opportunities. Okay. Then just I guess this will be my last question on how you guys define cold stack. How long does it take to get a vessel out of cold stack? How long does it take to recrew that vessel? Well, it is difficult to give exact estimates, but once you have the cold stack, the vessel, what you need to do is to get it back up and running again. Depending on the type of dredge, this will be different. Then you need to find the crews. From we bid the work until we actually have to mobilize out on the field, we have a couple of months, that should be sufficient to get the dredge up and running and get the crew back on board. Okay, thank you. One moment for our next question. Next, we have a follow-up from the line of John Tanwanteng from CJS Securities. Your line is open. Hi, guys. Thanks for taking my follow-up. Just a question on the bidding environment. I would have to assume that your competitors are hurting as well, just that given the amount of bids and the work that's out there. Is there any change to, you know, the competitiveness of how you're bidding? Obviously, everyone has to deal with inflation and other prices and things like that, but obviously weather has been an issue. Are you seeing pressure on pricing or are you seeing a little bit more rationality just in terms of being able to price these things in that have affected the entire market? Yeah. I think you can, from a bid market that is changing, you can assume that there is pressure on the bid market currently. The target market that we have is really these larger capital projects where we are the leading dredging contractor and I think best suited to execute those projects. There have been some additional capacity added by competitors. We have addressed that on earlier calls. We have seen 2 hopper dredges come to the market and some new cutter dredges. Our fleet, as we have it at this point in time, we will have a very modern and efficient hopper dredge fleet. Our cutter dredge fleet has been rationalized and also upgraded for productivity over the last years. We have a solid cutter fleet, and the mechanical fleet is really a complementary equipment to be used on larger projects in combination with cutters or hoppers. We have two of the most efficient mechanical dredges in the U.S. I think our competitive situation is strong and good going forward. Okay, great. Is the Galveston capacity spoken for, when it comes to work, for the rest of the year? Or do you still have schedule to fill on that particular dredge? Maybe the same question for the Ellis as well, just given those will be the two, you know, biggest sources of earnings for you this year? Yeah. The answer is yes. We have backlog to put her onto once she comes out. Okay. The Ellis Island? The Ellis is going straight to work. Yeah. The Ellis, it came out hard. It's working right now and we have backlog on her already for the majority of the year. Still some to fill in on the tail end. Ellis is in a good position right now, with backlog. Okay, great. Just a question on the wind market, a follow-up. Do you have any expected timing for when the next couple of major projects will be released there and go to bid in the work? Can you repeat that? Do you have any sense of timing for when you will be able to announce the next wind project awards? I'm very hopeful we can do that, during the year. Any sense of whether it be earlier or later in the year? mid-year to third quarter. The way that these projects are being developed, the developer is going to sell the power and secure the power sales agreements. Mm-hmm. That determines the timing of when we are being awarded our contracts. The way it looks currently, I'm very hopeful that we can secure one additional contract here, like quality mid-year of 2023. Yeah. John, with it, the bids have come out. We have submitted bids. Now we're at their timing on when they're gonna do the award. It's not when are the bids gonna come out, it's when are they going to award on based on the bids that are already outstanding. Understood. Thank you. Scott, the G&A run rate you had in Q4, should we expect that to keep coming down with the cost savings that you're planning or is that the right run rate to be using? Yeah, I mean, you know, if normalized for incentive, I think that is comparable to the run rate. You know, there's always some, you know, Q4 adjustments as you're aware, though it's not quite but, you know, I think if you kind of look at maybe Q3 and Q4 together, that's kinda how we're trending. Okay, great. Last one for Lasse. When you return those ships from cold stacked, are there any costs associated with getting them back up that would be unusual? Yes, there will be some costs to start up the vessel again. I don't see that as a major outlay for us. Any additional costs that we need to put into the vessels to get them out of cold stack will be included for in the bids that we are putting in. If not, we will not take them out of cold stacking. Got it. That makes sense. Thank you. Thank you. I'm not showing any further questions in the queue. I'd like to turn the call back over to Tina for any closing remarks. Thank you. We appreciate the support of our shareholders, employees, and business partners, and we thank you for joining us in this discussion about the important developments and initiatives in our business. We look forward to speaking with you during our next earnings discussion. This concludes today's conference call. Thank you for participating. You may now disconnect. Everyone, have a great day.