Joe Stauff: Makes sense. And then your investments that you will make, I guess this year in 2023, Felicia, provided some numbers in terms of project CapEx, but what does that mean, I guess for specific retail Barstool’s branding and any other sort of cashless investments that you are going to make and expand into 2023 and what are your plans there?
Jay Snowden: I would say and Felicia, you can jump in here. But if I understand your question correctly, Joe, when Felicia broke down the CapEx plans for the year, what you saw is that a total number of, call it, $400 million and roughly $87 million, $88 million, and I call it, $90 million of that is going towards the four growth projects that we talked about earlier in the year, the two in Illinois, the hotel in Columbus, Ohio and the hotel at M Resort in Las Vegas. So, the rest of the $300 million, think about it is exactly how we talked about 2022. You have got $200 million in maintenance, and then you have got $100 million that we sort of consider discretionary spend and €“ but does have a return associated with it. And that $100 million would be going towards the exact types of projects that you are referencing, us launching more Barstool-branded retail sportsbooks.
3C’s roll out, although we have gotten a lot of that work done behind us. We have got more hotel renovation, entertainment additions, food and beverage, that’s really the focus for that last $100 million. And we are very pleased with the early returns that we saw on the $100 million that we spent on those projects in 2022, which is why we are doing more of that in €˜23. So, outside of the growth, the four big projects, our CapEx plans for €˜23 look almost identical to what they look like in €˜22. Felicia, I don’t know if there is anything more to add
Felicia Hendrix: No, that’s exactly right. And I think just to underscore that point is that while we are investing in these new growth projects, it’s business as usual for us elsewhere.
Operator: Our next question comes from Steve Wieczynski with Stifel. Please proceed.
Steve Wieczynski: Yes. Hey guys. Good morning. So Jay, I want to go back to guidance for this year. And I think it was the Barry’s €“ I think it was the first question on the call. But obviously, you called out those potential headwinds in front of you. And new competition is going to be it is what it is, and you have a pretty good handle on what that’s going to look like. But I want to ask, if the consumer stays pretty much status quo. I mean what you are seeing right now through January. Is it fair to think that there actually could be upside to the upper end of your guidance range?
Jay Snowden: Yes. I don’t know how else to answer that. If the trends that we are seeing in January, if that status quo for the remainder of the year, then there would be upside to the midpoint of the range that we provided. We took a haircut to what we anticipated seeing in €˜23, just to build in some level of recessionary concern conservatism really because that’s what we continue to read from those that do this for a living is that something is going to happen later this year. If that something doesn’t happen and what we are seeing in the business today, if the labor market hold steady and housing market holds steady and spend per visit and visitation throughout the year looks like it does in January, then yes, the guidance is going to be conservative.
Steve Wieczynski: Okay. Thanks Jay. And then second question, either for you or Todd. I don’t think you guys talked or mentioned at all labor so far on the call. And just could you give us any kind of quick update on what you are seeing out there from a labor perspective? And has the availability of labor gotten any better for you guys?
Todd George: Sure, Steve. So the second part of that question is a little bit easier to answer it. Yes, we have seen a pickup in inflow of applications and candidates for most of our jobs. So, that’s actually been very encouraging. So, we are able to go at more full capacity with most of our offerings. On the first part, there is pockets where there is a little bit of upward pressure. I would say Colorado with some of what they have just recently passed from a minimum wage standpoint. But much of our portfolio, it’s more kind of status quo. We are not going backwards by any means. But there is more pressure, I guess just from a state mandate or a Federal mandate for minimum wage. But overall, there is a little bit more flow, so it offsets the need to pay up for talent.
Operator: Our next question comes from Stephen Grambling with Morgan Stanley. Please proceed.
Stephen Grambling: Thanks. Just a couple of quick follow-ups on interactive. First, on the implementation of the tech stack, how should we be thinking about the cadence of the rollout? Are you targeting a simultaneous introduction across states or doing any kind of testing at the state level and rolling out over time. And then as a follow-up on your comments about ramping marketing costs or marketing expenses and promotions maybe post implementation. How do you think CPAs are changing in the legacy markets not Ohio, or how might they change as states mature?
Jay Snowden: Yes. So, the first part of your question, Stephen, around the tech stack cadence is we planning to go live across all states in the U.S. at one time. We are targeting baseball all-star weekend when there is literally nothing going on in the sports world in the U.S. we have been working very closely and continue to with our regulators in preparation for this. We feel really confident in the plan. And we have got of course, contingencies that you can imagine based on any adjustments that we need to make for that plan between now and July. But that is the plan right now for us to go live all at one time and to be live for 1.5 months before we have the influx of volume with college football and NFL starting up. So, that’s the tech stack plan.
And then from a CPA perspective, we are seeing that the promotional environment is more rational. You are seeing a little less spend from an advertising perspective for paid media across the online sports betting space, which means that CPAs are a little more attractive, certainly a new market like Ohio that we just launched in, in Maryland and Kansas. Massachusetts will see once mobile goes live. But to your question around some of the markets that have been live now for a year, 2 years, 3 years, we are seeing CPAs there that are a little more attractive than they were a year ago. And so that’s part of what gives us some level of optimism not just having an improved product and tech stack going into football season here in 2023, but also an environment where I think there is much more of a focus from all of the top operators to get to profitability.
We welcome that. It’s been our focus. We got there in Q4. We think we are definitely confident we will be there for the year in 2023. But it allows us to be a little bit more aggressive maybe when the environment is a little bit more efficient, a little bit more attractive from a CPA perspective.
Operator: Mr. Snowden, I will now turn the call back to you. Please continue with your presentation or closing remarks.
Jay Snowden: Great. Thanks everyone for joining us this morning. I appreciate your time and look forward to speaking with you in early May to cover Q1 results.
Operator: That does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your line. Have a great day everyone.
