We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Accel Entertainment Inc | NYSE:ACEL | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-1.81 | -15.59% | 9.80 | 11.375 | 9.54 | 11.26 | 1,505,829 | 22:16:27 |
Accel Entertainment, Inc. (NYSE: ACEL) today announced certain financial and operating results for the three-months and year ended December 31, 2023.
Highlights:
Accel CEO Andy Rubenstein commented, “I am excited to report that Accel had another record-setting year in 2023. Our continued success demonstrates the long-term viability of focusing on the local gaming market. We continue to explore opportunities throughout the country to expand our reach as an industry leader and remain committed to providing value and positive returns to our investors.”
Consolidated Statements of Operations and Other Data
(in thousands)
Three Months Ended December 31,
Year Ended December 31,
2023
2022
2023
2022
Total net revenues
$
297,068
$
278,070
$
1,170,420
$
969,797
Operating income
25,451
25,094
107,407
96,855
Income before income tax expense
19,377
17,535
65,724
94,762
Net income
15,988
13,406
45,603
74,102
Other Financial Data:
Adjusted EBITDA(1)
44,577
43,309
181,445
162,392
Adjusted net income (2)
21,953
20,822
82,520
79,875
(1)
Adjusted EBITDA is defined as net income plus amortization of intangible assets and route and customer acquisition costs; (gain) loss on change in fair value of contingent earnout shares; stock-based compensation expense; other expenses, net; tax effect of adjustments; depreciation and amortization of property and equipment; interest expense, net; emerging markets; and income tax expense. For additional information on Adjusted EBITDA and a reconciliation of net income to Adjusted EBITDA, see “Non-GAAP Financial Measures—Adjusted EBITDA and Adjusted net income.”
(2)
Adjusted net income is defined as net income plus amortization of intangible assets and route and customer acquisition costs; (gain) loss on change in fair value of contingent earnout shares; stock-based compensation expense; other expenses, net; and tax effect of adjustments. For additional information on Adjusted net income and a reconciliation of net income to Adjusted net income, see "Non-GAAP Financial Measures— Adjusted net income and Adjusted EBITDA.”
(in thousands)
Three Months Ended December 31,
Year Ended December 31,
2023
2022
2023
2022
Total net revenues by state:
Illinois
$
219,297
$
206,917
$
867,200
$
808,652
Montana
39,314
35,357
154,402
79,639
Nevada
29,241
29,630
117,074
66,989
Nebraska
5,830
3,168
19,043
5,217
All other
3,386
2,998
12,701
9,300
Total net revenues
$
297,068
$
278,070
$
1,170,420
$
969,797
Key Business Metrics
Locations (1)
As of December 31,
2023
2022
Illinois
2,762
2,648
Montana
609
610
Nevada
352
340
Nebraska
238
143
Total locations
3,961
3,741
Gaming terminals (1)
As of December 31,
2023
2022
Illinois
15,276
14,397
Montana
6,276
6,108
Nevada
2,704
2,645
Nebraska
827
391
Total gaming terminals
25,083
23,541
(1)
Based on a combination of third-party portal data and data from our internal systems. This metric is utilized by Accel to continually monitor growth from existing locations, organic openings, acquired locations, and competitor conversions.
Consolidated Statements of Cash Flows Data
Year Ended December 31,
(in thousands)
2023
2022
Net cash provided by operating activities
$
132,530
$
107,999
Net cash used in investing activities
(59,793
)
(189,263
)
Net cash (used in) provided by financing activities
(35,239
)
106,591
Non-GAAP Financial Measures
Three Months Ended December 31,
Year Ended December 31,
(in thousands)
2023
2022
2023
2022
Net income
$
15,988
$
13,406
$
45,603
$
74,102
Adjustments:
Amortization of intangible assets and route and customer acquisition costs(1)
5,386
5,206
21,211
17,484
Stock-based compensation(2)
2,443
1,884
9,416
6,840
(Gain) loss on change in fair value of contingent earnout shares(3)
(2,524
)
(47
)
8,539
(19,544
)
Other expenses, net(4)
1,446
1,426
6,453
9,320
Tax effect of adjustments(5)
(786
)
(1,053
)
(8,702
)
(8,327
)
Adjusted net income
21,953
20,822
82,520
79,875
Depreciation and amortization of property and equipment
9,992
8,720
37,906
29,295
Interest expense, net
8,598
7,606
33,144
21,637
Emerging markets(6)
(142
)
979
(948
)
2,598
Income tax expense
4,176
5,182
28,823
28,987
Adjusted EBITDA
$
44,577
$
43,309
$
181,445
$
162,392
(1)
Amortization of intangible assets and route and customer acquisition costs consist of upfront cash payments and future cash payments to third-party sales agents to acquire the location partners that are not connected with a business acquisition, as well as the amortization of other intangible assets. We amortize the upfront cash payment over the life of the contract, including expected renewals, beginning on the date the location goes live, and recognizes non-cash amortization charges with respect to such items. Future or deferred cash payments, which may occur based on terms of the underlying contract, are generally lower in the aggregate as compared to established practice of providing higher upfront payments, and are also capitalized and amortized over the remaining life of the contract. Future cash payments do not include cash costs associated with renewing customer contracts as we do not generally incur significant costs as a result of extension or renewal of an existing contract. Location contracts acquired in a business combination are recorded at fair value as part of the business combination accounting and then amortized as an intangible asset on a straight-line basis over the expected useful life of the contract of 15 years. “Amortization of intangible assets and route and customer acquisition costs” aggregates the non-cash amortization charges relating to upfront route and customer acquisition cost payments and location contracts acquired, as well as the amortization of other intangible assets.
(2)
Stock-based compensation consists of options, restricted stock units, performance-based stock units, and warrants.
(3)
(Gain) loss on change in fair value of contingent earnout shares represents a non-cash fair value adjustment at each reporting period end related to the value of these contingent shares. Upon achieving certain exchange conditions, shares of Class A-2 common stock convert to Class A-1 common stock resulting in a non-cash settlement of the obligation.
(4)
Other expenses, net consists of (i) non-cash expenses including the remeasurement of contingent consideration liabilities, (ii) non-recurring lobbying and legal expenses related to distributed gaming expansion in current or prospective markets, and (iii) other non-recurring expenses.
(5)
Calculated by excluding the impact of the non-GAAP adjustments from the current period tax provision calculations.
(6)
Emerging markets consist of the results, on an Adjusted EBITDA basis, for non-core jurisdictions where our operations are developing. Markets are no longer considered emerging when we have installed or acquired at least 500 gaming terminals in the jurisdiction, or when 24 months have elapsed from the date we first install or acquire gaming terminals in the jurisdiction, whichever occurs first. We currently view Iowa and Pennsylvania as emerging markets. Prior to April 2023, Nebraska was considered an emerging market. Prior to July 2022, Georgia was considered an emerging market.
Reconciliation of Debt to Net Debt
As of December 31,
(in thousands)
2023
2022
Debt, net of current maturities
$
514,091
$
518,566
Plus: Current maturities of debt
28,483
23,466
Less: Cash and cash equivalents
(261,611
)
(224,113
)
Net debt
$
280,963
$
317,919
Conference Call
Accel will host an investor conference call on February 28, 2024 at 4:30 p.m. Central time (5:30 p.m. Eastern time) to discuss these financial and operating results. Interested parties may join the live webcast by registering at https://www.netroadshow.com/events/login?show=6a462f7f&confId=59904 or accessing the webcast via the company’s investor relations website: ir.accelentertainment.com. Following completion of the call, a replay of the webcast will be posted on Accel’s investor relations website.
About Accel
Accel is a leading distributed gaming operator in the United States and a preferred partner for local business owners in the markets it serves. Accel offers turnkey full-service gaming solutions to authorized non-casino locations such as bars, restaurants, convenience stores, truck stops, and fraternal and veteran establishments across the country. Accel installs, maintains, operates and services gaming terminals and related equipment for its location partners as well as redemption devices, stand-alone ATMs and amusement devices, including jukeboxes, dartboards, pool tables, and other entertainment related equipment. Accel also designs and manufactures gaming terminals and related equipment.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, contained in this press release are forward-looking statements, including, but not limited to, any statements regarding our estimates of number of gaming terminals, locations, revenues, Adjusted EBITDA and capital expenditures. The words “predict,” “estimated,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “would,” “continue,” and similar expressions or the negatives thereof are intended to identify forward-looking statements. These forward-looking statements represent our current reasonable expectations and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. We cannot guarantee the accuracy of the forward-looking statements, and you should be aware that results and events could differ materially and adversely from those contained in the forward-looking statements due to a number of factors including, but not limited to: Accel’s ability to operate in existing markets or expand into new jurisdictions; Accel’s ability to offer new and innovative products and services that fulfill the needs of location partners and create strong and sustained player appeal; Accel’s dependence on relationships with key manufacturers, developers and third parties to obtain gaming terminals, amusement machines, and related supplies, programs, and technologies for its business on acceptable terms; the negative impact on Accel’s future results of operations by the slow growth in demand for gaming terminals and by the slow growth of new gaming jurisdictions; Accel’s heavy dependency on its ability to win, maintain and renew contracts with location partners; unfavorable macroeconomic conditions or decreased discretionary spending due to other factors such as interest rate volatility, persistent inflation, actual or perceived instability in the U.S. and global banking systems, high fuel rates, recessions, epidemics or other public health issues, terrorist activity or threat thereof, civil unrest or other macroeconomic or political uncertainties, that could adversely affect Accel’s business, results of operations, cash flows and financial conditions and other risks and uncertainties indicated from time to time in documents filed or to be filed with the Securities and Exchange Commission (“SEC”).
Accordingly, forward-looking statements, including any projections or analysis, should not be viewed as factual and should not be relied upon as an accurate prediction of future results. The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments and their potential effects on Accel. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control), or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in the section entitled “Risk Factors” in the Annual Report on Form 10-K filed by Accel with the SEC, as well as Accel’s other filings with the SEC. Except as required by law, we do not undertake publicly to update or revise these statements, even if experience or future changes make it clear that any projected results expressed in this or other press releases or future quarterly reports, or company statements will not be realized. In addition, the inclusion of any statement in this press release does not constitute an admission by us that the events or circumstances described in such statement are material. We qualify all of our forward-looking statements by these cautionary statements. In addition, the industry in which we operate is subject to a high degree of uncertainty and risk due to a variety of factors including those described in the section entitled “Risk Factors” in the Annual Report on Form 10-K filed by Accel with the SEC, as well as Accel’s other filings with the SEC. These and other factors could cause our results to differ materially from those expressed in this press release.
Non-GAAP Financial Information
This press release includes certain financial information not prepared in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”), including Adjusted EBITDA, Adjusted net income, and Net Debt. Adjusted EBITDA, Adjusted net income, and Net Debt are non-GAAP financial measures and are key metrics used to monitor ongoing core operations. Management of Accel believes Adjusted EBITDA, Adjusted net income, and Net Debt enhance the understanding of Accel’s underlying drivers of profitability and trends in Accel’s business and facilitates company-to-company and period-to-period comparisons, because these non-GAAP financial measures exclude the effects of certain non-cash items, represents certain nonrecurring items that are unrelated to core performance, or excludes non-core operations. Management of Accel also believes that these non-GAAP financial measures are used by investors, analysts and other interested parties as measures of financial performance.
Adjusted EBITDA, Adjusted net income, and Net Debt
Although Accel excludes amortization of intangible assets and route and customer acquisition costs from Adjusted EBITDA and Adjusted net income, Accel believes that it is important for investors to understand that these route, customer and other intangible assets contribute to revenue generation. Any future acquisitions may result in amortization of intangible assets and route and customer acquisition costs.
Adjusted EBITDA, Adjusted net income, and Net Debt are not recognized terms under GAAP. These non-GAAP financial measures exclude some, but not all, items that affect net income, and these measures may vary among companies. These non-GAAP financial measures are unaudited and have important limitations as an analytical tool, should not be viewed in isolation and do not purport to be alternatives to net income as indicators of operating performance.
ACCEL ENTERTAINMENT, INC. CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Years ended December 31,
2023
2022
2021
Revenues:
Net gaming
$
1,113,573
$
925,009
$
705,784
Amusement
23,973
21,106
16,667
Manufacturing
13,353
7,621
—
ATM fees and other
19,521
16,061
12,256
Total net revenues
1,170,420
969,797
734,707
Operating expenses:
Cost of revenue (exclusive of depreciation and amortization expense shown below)
809,524
666,126
494,032
Cost of manufacturing goods sold (exclusive of depreciation and amortization expense shown below)
7,671
4,775
—
General and administrative
180,248
145,942
110,818
Depreciation and amortization of property and equipment
37,906
29,295
24,636
Amortization of intangible assets and route and customer acquisition costs
21,211
17,484
22,040
Other expenses, net
6,453
9,320
12,989
Total operating expenses
1,063,013
872,942
664,515
Operating income
107,407
96,855
70,192
Interest expense, net
33,144
21,637
12,702
Loss (gain) on change in fair value of contingent earnout shares
8,539
(19,544
)
9,762
Loss on debt extinguishment
—
—
1,152
Income before income tax expense
65,724
94,762
46,576
Income tax expense
20,121
20,660
15,017
Net income
$
45,603
$
74,102
$
31,559
Earnings per common share:
Basic
$
0.53
$
0.82
$
0.34
Diluted
0.53
0.81
0.33
Weighted average number of shares outstanding:
Basic
85,949
90,629
93,781
Diluted
86,803
91,229
94,638
ACCEL ENTERTAINMENT, INC. CONSOLIDATED BALANCE SHEETS
(in thousands, except par value and share amounts)
December 31,
2023
2022
Assets
Current assets:
Cash and cash equivalents
$
261,611
$
224,113
Accounts receivable, net
13,467
11,166
Prepaid expenses
6,287
7,407
Inventories
7,681
6,941
Interest rate caplets
8,140
8,555
Investment in convertible notes
—
32,065
Other current assets
15,408
8,965
Total current assets
312,594
299,212
Property and equipment, net
260,813
211,844
Noncurrent assets:
Route and customer acquisition costs, net
19,188
18,342
Location contracts acquired, net
176,311
189,343
Goodwill
101,554
100,707
Other intangible assets, net
20,542
22,979
Interest rate caplets, net of current
4,871
11,364
Other assets
17,020
8,978
Total noncurrent assets
339,486
351,713
Total assets
$
912,893
$
862,769
Liabilities and Stockholders’ Equity
Current liabilities:
Current maturities of debt
$
28,483
$
23,466
Current portion of route and customer acquisition costs payable
1,505
1,487
Accrued location gaming expense
9,350
7,791
Accrued state gaming expense
18,364
16,605
Accounts payable and other accrued expenses
36,012
22,302
Accrued compensation and related expenses
12,648
10,607
Current portion of consideration payable
3,288
7,647
Total current liabilities
109,650
89,905
Long-term liabilities:
Debt, net of current maturities
514,091
518,566
Route and customer acquisition costs payable, less current portion
4,955
5,137
Consideration payable, less current portion
4,201
6,872
Contingent earnout share liability
31,827
23,288
Other long-term liabilities
7,015
3,390
Deferred income tax liability
42,750
37,021
Total long-term liabilities
604,839
594,274
Stockholders’ equity:
Preferred Stock, par value of $0.0001; 1,000,000 shares authorized; 0 shares issued and outstanding at December 31, 2023 and December 31, 2022
—
—
Class A-1 Common Stock, par value $0.0001; 250,000,000 shares authorized; 95,016,960 shares issued and 84,123,385 shares outstanding at December 31, 2023; 94,504,051 shares issued and 86,674,390 shares outstanding at December 31, 2022
8
9
Additional paid-in capital
203,046
194,157
Treasury stock, at cost
(112,070
)
(81,697
)
Accumulated other comprehensive income
7,936
12,240
Accumulated earnings
99,484
53,881
Total stockholders' equity
198,404
178,590
Total liabilities and stockholders' equity
$
912,893
$
862,769
View source version on businesswire.com: https://www.businesswire.com/news/home/20240228919514/en/
Media: Eric Bonach Abernathy MacGregor 212-371-5999 ejb@abmac.com
1 Year Accel Entertainment Chart |
1 Month Accel Entertainment Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions