Turning to Australia’s customer activity and our owned-villages remains incredibly strong and we expect to continue to see similar levels going forward. We are currently full at three of our Bowen Basin villages with very healthy occupancy at the rest of our owned-village portfolio in Australia. As it relates to our integrated services business, our improved margins are expected to continue for the remainder of the year. We are encouraged by our progress to-date and we are continuing to focus on our inflation mitigation plan. We are excited about growth potential of our Western Australian integrated services business and now we have made strides on our inflation mitigation plan, we can shift our focus to winning work and growing the business.
Again, our team has set a goal to grow our integrated services business to AUD 500 million of top line by 2027. I will conclude by underscoring the key elements of our strategy. We will prioritize, as always, the safety and wellbeing of our guests, employees and communities. We will invest in our operational improvements and innovation to continue to enhance our best-in-class hospitality offerings and we will allocate capital prudently to maximize free cash flow generation while we continue to return capital to shareholders and evaluate growth opportunities. With that, we’re happy to take your questions.
Q – Alec Scheibelhoffer: Hi, thanks and good morning, everyone and thanks for taking my questions. So just to kick us off here. Two for me, just so when we were looking at the full year guidance, can you just talk about some of the drivers between the low and the high end? And also, should we expect to see normal seasonality with roughly about 65% of full year EBITDA in 2Q, 3Q?
Bradley Dodson: Thank you. To answer the second part of the question, yes, seasonality should continue. Again, the amount of EBITDA coming in Q2 and Q3 is largely driven by the turnaround season in Canada, and we expect that to be the case this year. The upper end and the lower end is actually linked to the same issue, which is, what does the Canadian turnaround season look like. Right now, it looks as expected, we’re obviously only one month into it, so we’ll see how it plays out. But that’s probably the biggest driver for us. Inflation continues to be an issue largely across the globe. Most impactful right now in Australia around food costs and more importantly, labor. The team has done a great job in terms of trying to improve, increase our full-time labor, as opposed to using temporary labor, which has a negative impact on costs and productivity.
So, those are primarily the largest drivers of the issue. Currency has gone against us, but we’ve had a few things go for us year-to-date. We’ve had better occupancy in our Kitimat Sitka Lodge. We’ve seen better occupancy in the core Canadian area, coupled with really, just really strong occupancy in Australian Bowen Basin villages, and clearly very good execution on the integrated services side in Australia.
Alec Scheibelhoffer: Got it. Thanks. Appreciate the color. And then just as a second question, I’m just curious if you flush out just how you think about uses of cash and what are your key criteria when you’re looking at potential M&A?
Bradley Dodson: Well, uses of cash, we’ve got the dividend, which is $0.25 a share or $1 for the full year. For shareholders, that is paramount. We’ve been opportunistically buying back shares as well. We need to get back to growing the business, and those returns for growth opportunities have to size up and be better than the opportunity buying back stock. So, there are a handful of organic opportunities, and then we’re looking at M&A. The organic opportunities are around contracted lodge and village rooms, either bringing them back online or modest increase in rooms. And the M&A side is around integrated services and expansion of geographies within Canada and Australia.
Alec Scheibelhoffer: Got it. Thank you. I appreciate the color. That’s all for me. I’ll turn it back.
Bradley Dodson: Thank you.
Operator: Our next question comes from the line of Steve Ferazani with Sidoti. Please proceed with your question.
Steve Ferazani: Thanks. Good morning. Bradley, Barclay. Appreciate all the color on the call this morning. I wanted to ask about Australia. Another really impressive quarter in terms of accommodations and food revenue. You announced so many new contracts or renewed contracts at better rates. Have we seen it all now? Is there more near-term growth or does this level off near-term?
Bradley Dodson: No, we’ll see further growth, particularly on the integrated services side. The team has a lot of lines in the water and is really building a good business there. I mean, if you recall, that business was a $70 million business back five years ago and we did $230 million. I’m talking local currency. Last year budget for this year was $250 million. Going to beat that resoundingly. So, and that factored into guidance. And so, we’re making good strides there. It’s a differentiated service in terms of the competition we’re winning market share from others. So, we’re more than cautiously optimistic on it.
Steve Ferazani: Great. What are the risks there, given the number of contracts you have renewed already? Anything near-term we should be concerned about or – and what kind of term do you have that you’ve de-risked sort of what’s in place right now?
Bradley Dodson: There are no, on the questions about Australian integrated services, there are no material renewals until 2027. That being said, in the integrated services business, as you know, all the contracts can be canceled. So, every day we have to show up and deliver service and the team is there. We’ve got a good relationship with the major customers there where there’s transparency and good conversation, where inevitably when you’re trying to serve 8,000, 9,000 people a day, there are going to be mistakes. But with the transparency, the conversation, the willingness to and the effort to deliver excellent service every day, that carries the day.
Steve Ferazani: Fair enough. Turning to the other side, on food and service in Canada, two straight quarters where your year-over-year top line was up more than 20%. And given, can you give a little sense of what’s driving that? I know the margins are fairly thin there, but is pretty significant revenue growth given everything else that’s going on in Canada.
