You don’t have as much visibility, but you have kind of six months’ worth of visibility on the corporate marketer side, and we feel really good about the position we have going into 2024.
Kartik Mehta: And then just on the Pursuit side, I’m wondering how much do you anticipate the new attractions, experiences to benefit in 2024? How much of a contribution are you anticipating?
David Barry: Yes, I would answer that is we’re looking for continued growth. We had a good period of growth through ’23. If you take a look and you got a variety of attractions that all of them at a healthy growth rate. We’re going to continue to see increased visitations. We expect those numbers to continue to perform and we’re in a good position as we move forward.
Kartik Mehta: Thank you very much. I appreciate it.
Steve Moster: Thanks, Kartik.
Operator: [Operator Instructions] Our next question comes from Tyler Batory of Oppenheimer. Please go ahead.
Tyler Batory: Good afternoon. Thank you. First question for me on the GES side of things, Steve. What are your expectations for same-show revenue in 2024? The past few calls as well, there’s a lot of discussion about square footage, show sizes. So what are your latest thoughts on those topics? And then the third part of this question, price has been a reason and a way you’ve been able to grow your revenue in GES. Do you think you can hold on to price going forward or perhaps even grow it from here? Just trying to get a good sense of your views on those topics.
Steve Moster: Yes, I think so. The drivers of growth for next year, one is, as you mentioned same-show growth. And I would expect that to be in the mid-single digit range, partially driven by pricing and partially driven by increase in the square footage of those events as we’ve talked about on prior calls. The second, is obviously a large one, which is the non-annual events that are taking place. And it’s roughly $65 million of incremental revenue that will occur in ’24, that did not occur in ’23. And then the last element of growth is just a continuation of what we’ve seen in the growth of Spiro. We’re really pleased with the new clients that we’ve picked up during the course of ’23, and I feel there’s momentum behind us and that will definitely help our overall growth for Spiro in ’24. So those are kind of the three buckets and kind of where I see them shaking out for this year.
Tyler Batory: Okay, great. Switching gears to Pursuit, in terms of the revenue guide, what’s implied in terms of long-haul visitation. Are we having any conversations with tour groups, travel trade coming from Asia?
David Barry: We certainly are and as we talked a little bit about in the remarks that one of the things we’ve been able to do, Tyler, is to have demand coming from other parts of the world, as certain countries in Asia take longer to recover. So if you look at the visitation growth and you look at the room night growth, we’ve been able to basically substitute. And as China returns specifically, we think that’s going to be a multi-year return, but we do believe it will return. So no meaningful change anticipated from Asia group travel, demand remains consistent, and they’re really rebuilding. And they’re rebuilding their channels out of the country and into Canada. And so the good news is we have demand from all over the world.
And the other thing, we try not to concentrate too much in one country. So you’re not stuck if a country’s economy falters, you’re not stuck waiting for business from that country. So we tend to spread out allocations into the forward look. And I can tell you that demand in ’24, demand in ’25 remains quite strong.
Tyler Batory: Okay. And then in terms of the margin outlook there, the growth in terms of 2024 is really quite strong. In the past, you talked about getting back to low 30% on EBITDA margin and pursuits. Is that still something that you think is doable? Do you have any line of sight in terms of when that might happen?
David Barry: Yes. So if you take a look at Page 16, in the deck, you can see EBITDA margin. I mean, we’re quite confident and on track for our return to 30% margin in 2024. And so we’re working hard in that direction, and we’re pleased with the 370-basis point increase in 2023. But we’re on track and working hard for ’24. Feel confident about it.
Tyler Batory: Okay. My last question in terms of cash flow here on the CapEx side of things, $20 million of growth CapEx, I’m assuming, that’s all related to FlyOver? So just wanted to be sure that that’s the right way to be thinking about it. And then free cash flow is going to be moving quite higher year-over-year. I think in the prepared remarks, you called out perhaps leaning more into reducing debt. So wanted to be sure that I heard that correct. Kind of how you’re thinking about leverage and the opportunities to reduce debt going forward.
Ellen Ingersoll: Yes, you did hear that right. Regarding the growth CapEx though, about $6 million is FlyOver Chicago and a handful of smaller projects after that. As far as our cash flow Q3 will obviously be a big cash flow quarter. We will likely pay off our revolver in Q3, probably add to it in Q4. But we will have excess cash flow to pay down some debt and do some selective growth projects at Pursuit.
Tyler Batory: Okay, great. That’s all for me. Thank you for the detail.
David Barry: Thanks, Tyler.
Operator: The next question is from Alex Fuhrman of Craig-Hallum. Your line is open.
