And I think if you look out over a two to three -year timeframe you know it will be a significant amount of what I’ll call the cumulative cash balances if you take what we have today and you just accumulate cash over the next two to three years. Obviously, we don’t have to retire the 6% notes at maturity, we can’t refinance, but we’re also cognizant that it’s likely to be a higher interest rate environment than when we issued the notes back in the summer — late summer of 2021. So stay tuned. You’ll see it. The derivative question which I had to say, it’s very hard to answer is — the specific question is on free cash flow for 2024. So let’s start by where we are in 2023. So we’re at $83 million for the nine months, but Q4 is generally not a cash-generative quarter.
We’ve just paid $25.5 million of interest on the two tranches of noted. It’s also a quarter when we pay estimated tax payments. And then of course there is the normal CapEx et cetera that will occur in the quarter. So it’s likely that we finished the year below the $83 million number somewhere probably in the mid-$70 million range in terms of the baseline. As I look forward, I don’t know based on the last answer how much of the debt we’ll repurchase and how much of an arbitrage that will be, because recognize we are earning $540 million on our cash. So eliminating the coupon of 6% and 6.5% gives us a little bit of delta. But I don’t know how much we’ll be able to buyback, the timing and for that matter the price. So the way we look at sort of the cash flow into the next year and once again these are very rough numbers as budgeting is far from complete, but we would look at just building the cash through the year earning interest on it paying the taxes associated with it.
And then, we should do better than that if in fact we are buying debt in and eliminating either a higher coupon and/or getting a discount which I expect for both. What I think is the most linear relationship from 2023 to 2024 is the reduction in capitalized labor — CapEx for capitalized labor. We expect that to come down at least $7 million year-over-year. That would flow through directly to free cash flow. So when you knit all that together it means we should be somewhere in the low-$80s million next year. Hopefully that is a conservative number. And we can do better based on what we do believe will be some EBITDA growth as well as some repurchases of the debt in the open market which will give us some incremental leverage against just earning $540 million on the cash.
Q – Unidentified Analyst: Perfect. Thanks Scott.
Operator: Thank you. And there were no other questions in queue at this time. I would now like to hand the call back to Scott Turicchi, for closing remarks.
Scott Turicchi: Great. Thank you Paul and thank you all for joining us today on our Q3 call. We will have the next earnings call which of course will be the Q4 call. And as I mentioned at the beginning, we will have a more robust discussion about 2024 guidance. That will be sometime in probably the latter part of February, third week of February of 2024. But we do have an upcoming High Yield Bond Conference at the end of this month, the courtesy of Bank of America Merrill Lynch, we’ll be there. There will be another conference from BTIG that we’ll be at on 20th of November. That’s for the equity holders, and then stay tuned for additional press releases, for additional conferences probably more likely at the beginning of next year versus the balance of this year. And of course, if you do have further questions you can contact any one of us. And we’d be happy to get back to you. Thank you.
Operator: Thank you. This does conclude today’s conference. You may disconnect at this time. And have a wonderful day. Thank you for your participation.
