Accel Entertainment Announces 2024 Operating Results and Replenishment of Share Repurchase Program
Accel Entertainment (NYSE: ACEL) reported mixed Q4 2024 financial results with record revenues but declining profits. Q4 revenue reached $317.5 million, up 6.9% year-over-year, while full-year 2024 revenue hit $1.2 billion, a 5.2% increase.
However, Q4 net income declined 47.5% to $8.4 million, and full-year net income fell 22.6% to $35.3 million. The company expanded its operations, growing to 4,117 locations (+3.9%) and 26,346 gaming terminals (+5.0%). Notable Q4 developments include the acquisition of Toucan Gaming in Louisiana and FanDuel Sportsbook & Horse Racing in Illinois.
The Board approved replenishing the share repurchase program back to $200 million, following previous purchases of 13.8 million shares for $143.6 million. Net debt increased 11.8% to $314 million compared to Q4 2023.
Accel Entertainment (NYSE: ACEL) ha riportato risultati finanziari misti per il quarto trimestre del 2024, con ricavi record ma profitti in calo. Il fatturato del Q4 ha raggiunto 317,5 milioni di dollari, in aumento del 6,9% rispetto all'anno precedente, mentre il fatturato totale per il 2024 ha toccato 1,2 miliardi di dollari, con un incremento del 5,2%.
Tuttavia, l'utile netto del Q4 è diminuito del 47,5% a 8,4 milioni di dollari, e l'utile netto annuale è calato del 22,6% a 35,3 milioni di dollari. L'azienda ha ampliato le sue operazioni, arrivando a 4.117 sedi (+3,9%) e 26.346 terminali di gioco (+5,0%). Tra gli sviluppi significativi del Q4 ci sono l'acquisizione di Toucan Gaming in Louisiana e FanDuel Sportsbook & Horse Racing in Illinois.
Il Consiglio ha approvato il ripristino del programma di riacquisto di azioni fino a 200 milioni di dollari, dopo acquisti precedenti di 13,8 milioni di azioni per 143,6 milioni di dollari. Il debito netto è aumentato dell'11,8% a 314 milioni di dollari rispetto al Q4 2023.
Accel Entertainment (NYSE: ACEL) reportó resultados financieros mixtos para el cuarto trimestre de 2024, con ingresos récord pero beneficios en declive. Los ingresos del Q4 alcanzaron los 317,5 millones de dólares, un aumento del 6,9% en comparación con el año anterior, mientras que los ingresos totales para 2024 alcanzaron 1,2 mil millones de dólares, un incremento del 5,2%.
Sin embargo, el ingreso neto del Q4 cayó un 47,5% a 8,4 millones de dólares, y el ingreso neto anual disminuyó un 22,6% a 35,3 millones de dólares. La compañía expandió sus operaciones, creciendo a 4,117 ubicaciones (+3,9%) y 26,346 terminales de juego (+5,0%). Los desarrollos notables del Q4 incluyen la adquisición de Toucan Gaming en Louisiana y FanDuel Sportsbook & Horse Racing en Illinois.
La Junta aprobó reponer el programa de recompra de acciones hasta 200 millones de dólares, tras compras previas de 13,8 millones de acciones por 143,6 millones de dólares. La deuda neta aumentó un 11,8% a 314 millones de dólares en comparación con el Q4 de 2023.
Accel Entertainment (NYSE: ACEL)는 2024년 4분기 혼합 재무 결과를 보고했으며, 기록적인 수익을 올렸으나 이익은 감소했습니다. 4분기 수익은 3억 1,750만 달러에 달했습니다, 전년 대비 6.9% 증가했으며, 2024년 전체 수익은 12억 달러에 달했습니다, 5.2% 증가했습니다.
그러나 4분기 순이익은 47.5% 감소하여 840만 달러에 이르렀고, 연간 순이익은 22.6% 감소하여 3530만 달러에 그쳤습니다. 이 회사는 4,117개 위치(+3.9%)와 26,346개의 게임 단말기(+5.0%)로 사업을 확장했습니다. 4분기의 주요 개발 사항으로는 루이지애나에서 Toucan Gaming을 인수하고 일리노이에서 FanDuel Sportsbook & Horse Racing을 인수한 것이 포함됩니다.
이사회는 1억 2천만 달러까지 주식 매입 프로그램을 보충하는 것을 승인했으며, 이전에 1,360만 주를 1억 4,360만 달러에 매입한 바 있습니다. 순부채는 2023년 4분기 대비 11.8% 증가하여 3억 1,400만 달러에 이르렀습니다.
Accel Entertainment (NYSE: ACEL) a annoncé des résultats financiers mitigés pour le quatrième trimestre de 2024, avec des revenus record mais des bénéfices en baisse. Le chiffre d'affaires du Q4 a atteint 317,5 millions de dollars, en hausse de 6,9% par rapport à l'année précédente, tandis que le chiffre d'affaires total pour 2024 a atteint 1,2 milliard de dollars, soit une augmentation de 5,2%.
Cependant, le bénéfice net du Q4 a chuté de 47,5% à 8,4 millions de dollars, et le bénéfice net annuel a baissé de 22,6% à 35,3 millions de dollars. L'entreprise a élargi ses opérations, atteignant 4 117 emplacements (+3,9%) et 26 346 terminaux de jeu (+5,0%). Parmi les développements notables du Q4, on trouve l'acquisition de Toucan Gaming en Louisiane et de FanDuel Sportsbook & Horse Racing en Illinois.
Le Conseil a approuvé le réapprovisionnement du programme de rachat d'actions jusqu'à 200 millions de dollars, après des achats précédents de 13,8 millions d'actions pour 143,6 millions de dollars. La dette nette a augmenté de 11,8% pour atteindre 314 millions de dollars par rapport au Q4 2023.
Accel Entertainment (NYSE: ACEL) berichtete über gemischte Finanzzahlen für das vierte Quartal 2024 mit Rekordumsätzen, aber sinkenden Gewinnen. Der Umsatz im Q4 erreichte 317,5 Millionen Dollar, was einem Anstieg von 6,9% im Vergleich zum Vorjahr entspricht, während der Gesamtumsatz für 2024 1,2 Milliarden Dollar betrug, was einem Anstieg von 5,2% entspricht.
Allerdings fiel der Nettogewinn im Q4 um 47,5% auf 8,4 Millionen Dollar, und der Nettogewinn für das gesamte Jahr fiel um 22,6% auf 35,3 Millionen Dollar. Das Unternehmen erweiterte seine Aktivitäten und wuchs auf 4.117 Standorte (+3,9%) und 26.346 Spielterminals (+5,0%). Zu den bemerkenswerten Entwicklungen im Q4 gehört die Übernahme von Toucan Gaming in Louisiana und FanDuel Sportsbook & Horse Racing in Illinois.
Der Vorstand genehmigte die Auffüllung des Aktienrückkaufprogramms auf 200 Millionen Dollar, nachdem zuvor 13,8 Millionen Aktien für 143,6 Millionen Dollar zurückgekauft wurden. Die Nettoverschuldung stieg im Vergleich zum Q4 2023 um 11,8% auf 314 Millionen Dollar.
- Record Q4 revenue of $317.5M (+6.9% YoY)
- Record annual revenue of $1.2B (+5.2% YoY)
- Gaming terminal count increased 5.0% to 26,346
- Location count grew 3.9% to 4,117
- Strategic expansion into Louisiana market
- Q4 Adjusted EBITDA up 6.2% to $47.4M
- Q4 net income down 47.5% to $8.4M
- Annual net income decreased 22.6% to $35.3M
- Net debt increased 11.8% to $314M
Insights
Accel Entertainment's Q4 2024 results present a contradictory picture: record revenues of
The company's strategic expansion continues on multiple fronts: increasing its location count to 4,117 and gaming terminals to 26,346, while making two notable acquisitions. The Toucan Gaming purchase marks Accel's entry into Louisiana's distributed gaming market, diversifying its geographic footprint beyond its core Midwest operations. More transformative is the FanDuel Sportsbook acquisition in Illinois, which signals Accel's evolution beyond distributed gaming into traditional casino operations.
The
Accel's Adjusted EBITDA growth (
Management's projection of "low-teens returns on capital" appears optimistic given current profitability trends, suggesting they anticipate significant operational improvements or synergies from recent acquisitions to reverse the net income decline trend in 2025.
Highlights:
-
Ended Q4 2024 with 4,117 locations; an increase of
3.9% compared to Q4 2023 -
Ended Q4 2024 with 26,346 gaming terminals; an increase of
5.0% compared to Q4 2023 -
Record revenues of
$317.5 million 6.9% compared to Q4 2023 -
Record revenues of
$1.2 billion 5.2% compared to YE 2023 -
Net income of
$8.4 million 47.5% compared to Q4 2023 -
Net income of
$35.3 million 22.6% compared to YE 2023 -
Adjusted EBITDA of
$47.4 million 6.2% compared to Q4 2023 -
Adjusted EBITDA of
$189.1 million 4.2% compared to YE 2023 -
Q4 2024 ended with
$314 million 11.8% compared to Q4 2023 -
Repurchased approximately
$4.0 million -
Acquisition of Toucan Gaming, a distributed gaming operator in the state of
Louisiana , closed on November 1, 2024 -
Acquisition of the FanDuel Sportsbook & Horse Racing in
Collinsville, Illinois , closed on December 2, 2024 -
Board of Directors approved an amendment to the share repurchase program to replenish the dollar amount that may be repurchased under the program back to
$200 million
Accel CEO Andy Rubenstein commented, “I am very pleased to report that we ended 2024 on very strong footing, positioning us well as we enter 2025. We delivered another record quarter in terms of revenue, entered the
Condensed Consolidated Statements of Operations and Other Data
|
Three Months Ended
|
|
Year Ended
|
||||||||
(in thousands) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
|
|
|
|
|
|
|
||||
Total net revenues |
$ |
317,515 |
|
$ |
297,068 |
|
$ |
1,230,972 |
|
$ |
1,170,420 |
Operating income |
|
20,797 |
|
|
25,451 |
|
|
90,884 |
|
|
107,407 |
Income before income tax expense |
|
14,563 |
|
|
19,377 |
|
|
53,729 |
|
|
65,724 |
Net income |
|
8,394 |
|
|
15,988 |
|
|
35,291 |
|
|
45,603 |
Other Financial Data: |
|
|
|
|
|
|
|
||||
Adjusted EBITDA(1) |
|
47,355 |
|
|
44,577 |
|
|
189,147 |
|
|
181,445 |
Adjusted net income (2) |
|
17,851 |
|
|
21,953 |
|
|
77,089 |
|
|
82,520 |
(1) |
Adjusted EBITDA is a non-GAAP metric. See "Non-GAAP Financial Measures" for a reconciliation to GAAP. |
(2) |
Adjusted net income is a non-GAAP metric. See "Non-GAAP Financial Measures" for a reconciliation to GAAP. |
Net Revenues
(in thousands) |
Three Months Ended
|
|
Year Ended
|
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Net revenues by state: |
|
|
|
|
|
|
|
||||
|
$ |
231,278 |
|
$ |
219,297 |
|
$ |
906,572 |
|
$ |
867,200 |
|
|
41,326 |
|
|
39,314 |
|
|
161,698 |
|
|
154,402 |
|
|
27,670 |
|
|
29,241 |
|
|
114,551 |
|
|
117,074 |
|
|
6,763 |
|
|
5,830 |
|
|
25,384 |
|
|
19,043 |
|
|
5,445 |
|
|
— |
|
|
5,445 |
|
|
— |
Other |
|
5,033 |
|
|
3,386 |
|
|
17,322 |
|
|
12,701 |
Total net revenues |
$ |
317,515 |
|
$ |
297,068 |
|
$ |
1,230,972 |
|
$ |
1,170,420 |
(1) |
Revenues for |
Key Business Metrics
Locations (1) |
As of December 31, |
|
Increase / (Decrease) |
||||
|
2024 |
|
2023 |
|
Change |
|
Change (%) |
|
2,775 |
|
2,762 |
|
13 |
|
0.5 % |
|
619 |
|
609 |
|
10 |
|
1.6 % |
|
357 |
|
352 |
|
5 |
|
1.4 % |
|
270 |
|
238 |
|
32 |
|
13.4 % |
|
96 |
|
— |
|
96 |
|
100.0 % |
Total locations |
4,117 |
|
3,961 |
|
156 |
|
3.9 % |
Gaming terminals (1) |
As of December 31, |
|
Increase / (Decrease) |
||||
|
2024 |
|
2023 |
|
Change |
|
Change (%) |
|
15,693 |
|
15,276 |
|
417 |
|
2.7 % |
|
6,467 |
|
6,276 |
|
191 |
|
3.0 % |
|
2,650 |
|
2,704 |
|
(54) |
|
(2.0) % |
|
948 |
|
827 |
|
121 |
|
14.6 % |
|
588 |
|
— |
|
588 |
|
100.0 % |
Total gaming terminals |
26,346 |
|
25,083 |
|
1,263 |
|
5.0 % |
Location hold-per-day (2) |
Three Months Ended
|
|
Increase / (Decrease) |
|||||||||
|
2024 |
|
2023 |
|
Change ($) |
|
Change (%) |
|||||
|
$ |
868 |
|
$ |
839 |
|
$ |
29 |
|
|
3.5 |
% |
|
|
614 |
|
|
587 |
|
|
27 |
|
|
4.6 |
% |
|
|
786 |
|
|
842 |
|
|
(56 |
) |
|
(6.7 |
)% |
|
|
253 |
|
|
239 |
|
|
14 |
|
|
5.9 |
% |
|
|
979 |
|
|
— |
|
|
|
|
|||
|
Twelve Months Ended
|
|
Increase / (Decrease) |
|||||||||
|
2024 |
|
2023 |
|
Change ($) |
|
Change (%) |
|||||
|
$ |
864 |
|
$ |
849 |
|
$ |
15 |
|
|
1.8 |
% |
|
|
609 |
|
|
582 |
|
|
27 |
|
|
4.6 |
% |
|
|
823 |
|
|
851 |
|
|
(28 |
) |
|
(3.3 |
)% |
|
|
241 |
|
|
234 |
|
|
7 |
|
|
3.0 |
% |
|
|
979 |
|
|
— |
|
|
|
|
|||
(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. |
(2) |
Location hold-per-day is calculated by dividing net gaming revenue in the period by the average number of locations. We then divide the calculated amount by the number of operational days. We utilize this metric to compare market and location performance on a normalized basis. The percent change in location hold-per-day is the underlying metric used to determine the change in same-store sales. |
Condensed Consolidated Statements of Cash Flows Data
|
Year Ended
|
||||||||||
(in thousands) |
|
2024 |
|
|
|
2023 |
|
|
Change ($) |
||
Net cash provided by operating activities |
$ |
121,194 |
|
|
$ |
132,530 |
|
|
$ |
(11,336 |
) |
Net cash used in investing activities |
|
(124,151 |
) |
|
|
(59,793 |
) |
|
|
(64,358 |
) |
Net cash provided by (used in) financing activities |
|
22,651 |
|
|
|
(35,239 |
) |
|
|
57,890 |
|
Non-GAAP Financial Measures
Adjusted net income is defined as net income plus:
- Amortization of intangible assets and route and customer acquisition costs
- Stock-based compensation expense
- Loss from unconsolidated affiliates
- Loss on change in fair value of contingent earnout shares
- Gain on expiration of warrants
- Other expenses, net which 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
- Tax effect of adjustments
Adjusted EBITDA is defined as net income plus:
- Amortization of intangible assets and route and customer acquisition costs
- Stock-based compensation expense
- Loss from unconsolidated affiliates
- Loss on change in fair value of contingent earnout shares
- Gain on expiration of warrants
- Other expenses, net
- Tax effect of adjustments
- Depreciation and amortization of property and equipment
- Interest expense, net
-
Emerging markets, which reflects 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
Pennsylvania as an emerging market -
Prior to January 2024,
Iowa was considered an emerging market -
Prior to April 2023,
Nebraska was considered an emerging market
- Income tax expense
Net debt is defined as debt, net of current maturities:
- plus Current maturities of debt
- less Cash and cash equivalents
Adjusted net income and Adjusted EBITDA
|
Three Months Ended
|
|
Increase / (Decrease) |
|||||||||||
(in thousands) |
|
2024 |
|
|
|
2023 |
|
|
Change ($) |
|
Change (%) |
|||
Net income |
$ |
8,394 |
|
|
$ |
15,988 |
|
|
$ |
(7,594 |
) |
|
(47.5 |
)% |
Adjustments: |
|
|
|
|
|
|
|
|||||||
Amortization of intangible assets and route and customer acquisition costs |
|
5,769 |
|
|
|
5,386 |
|
|
|
383 |
|
|
7.1 |
% |
Stock-based compensation expense |
|
3,277 |
|
|
|
2,443 |
|
|
|
834 |
|
|
34.1 |
% |
Loss from unconsolidated affiliates |
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
|
(100.0 |
)% |
Loss on change in fair value of contingent earnout shares |
|
(2,914 |
) |
|
|
(2,524 |
) |
|
|
(390 |
) |
|
(15.5 |
)% |
Gain on expiration of warrants |
|
(13 |
) |
|
|
— |
|
|
|
(13 |
) |
|
(100.0 |
)% |
Other expenses, net |
|
5,719 |
|
|
|
1,446 |
|
|
|
4,273 |
|
|
295.5 |
% |
Tax effect of adjustments |
|
(2,380 |
) |
|
|
(786 |
) |
|
|
(1,594 |
) |
|
(202.8 |
)% |
Adjusted net income |
|
17,851 |
|
|
|
21,953 |
|
|
|
(4,102 |
) |
|
(18.7 |
)% |
Depreciation and amortization of property and equipment |
|
11,749 |
|
|
|
9,992 |
|
|
|
1,757 |
|
|
17.6 |
% |
Interest expense, net |
|
9,162 |
|
|
|
8,598 |
|
|
|
564 |
|
|
6.6 |
% |
Emerging markets |
|
44 |
|
|
|
(142 |
) |
|
|
186 |
|
|
131.1 |
% |
Income tax expense |
|
8,549 |
|
|
|
4,176 |
|
|
|
4,373 |
|
|
104.7 |
% |
Adjusted EBITDA |
$ |
47,355 |
|
|
$ |
44,577 |
|
|
$ |
2,778 |
|
|
6.2 |
% |
|
Year Ended
|
|
Increase / (Decrease) |
|||||||||||
(in thousands) |
|
2024 |
|
|
|
2023 |
|
|
Change |
|
Change % |
|||
Net income |
$ |
35,291 |
|
|
$ |
45,603 |
|
|
$ |
(10,312 |
) |
|
(22.6 |
)% |
Adjustments: |
|
|
|
|
|
|
|
|||||||
Amortization of intangible assets and route and customer acquisition costs |
|
22,577 |
|
|
|
21,211 |
|
|
|
1,366 |
|
|
6.4 |
% |
Stock-based compensation expense |
|
12,204 |
|
|
|
9,416 |
|
|
|
2,788 |
|
|
29.6 |
% |
Loss from unconsolidated affiliates |
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
% |
Loss on change in fair value of contingent earnout shares |
|
1,276 |
|
|
|
8,539 |
|
|
|
(7,263 |
) |
|
(85.1 |
)% |
Gain on expiration of warrants |
|
(13 |
) |
|
|
— |
|
|
|
(13 |
) |
|
100.0 |
% |
Other expenses, net |
|
19,339 |
|
|
|
6,453 |
|
|
|
12,886 |
|
|
199.7 |
% |
Tax effect of adjustments |
|
(13,585 |
) |
|
|
(8,702 |
) |
|
|
(4,883 |
) |
|
(56.1 |
)% |
Adjusted net income |
|
77,089 |
|
|
|
82,520 |
|
|
|
(5,431 |
) |
|
(6.6 |
)% |
Depreciation and amortization of property and equipment |
|
43,978 |
|
|
|
37,906 |
|
|
|
6,072 |
|
|
16.0 |
% |
Interest expense, net |
|
35,892 |
|
|
|
33,144 |
|
|
|
2,748 |
|
|
8.3 |
% |
Emerging markets |
|
165 |
|
|
|
(948 |
) |
|
|
1,113 |
|
|
117.4 |
% |
Income tax expense |
|
32,023 |
|
|
|
28,823 |
|
|
|
3,200 |
|
|
11.1 |
% |
Adjusted EBITDA |
$ |
189,147 |
|
|
$ |
181,445 |
|
|
$ |
7,702 |
|
|
4.2 |
% |
Net Debt
|
As of December 31, |
||||||
(in thousands) |
|
2024 |
|
|
|
2023 |
|
Debt, net of current maturities |
$ |
560,936 |
|
|
$ |
514,091 |
|
Plus: Current maturities of debt |
|
34,443 |
|
|
|
28,483 |
|
Less: Cash and cash equivalents |
|
(281,305 |
) |
|
|
(261,611 |
) |
Net debt |
$ |
314,074 |
|
|
$ |
280,963 |
|
Amendment to Share Repurchase Program
On November 22, 2021, Accel previously announced a share repurchase program of up to
On February 27, 2025, the Board of Directors approved an amendment to the share repurchase program to replenish the dollar amount that may be repurchased under the program back to up to
Under the share repurchase program, repurchases can be made from time to time using a variety of methods, including open market purchases or privately negotiated transactions, in compliance with the rules of the Securities and Exchange Commission (the “SEC”) and other applicable legal requirements. The share repurchase program does not obligate Accel to acquire any particular amount of shares, and the share repurchase program may be suspended or discontinued at any time at Accel’s discretion.
Conference Call
Accel will host an investor conference call on February 27, 2025 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=a8e678a0&confId=71436 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
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, Adjusted net income, location hold-per-day and capital expenditures, our ability to continue to generate returns on capital and improve our trading multiples, our expansion into casino operations and horse racing, and our ability to consummate share repurchases in the amounts authorized pursuant to our share repurchase program or at all. 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; Accel's expansion into casino operations and horse racing; unfavorable macroeconomic conditions or decreased discretionary spending due to other factors such as interest rate volatility, persistent inflation, increased or retaliatory tariffs, actual or perceived instability in the
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 for the fiscal year ended December 31, 2024. 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 Form 10-K, 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.
Industry and Market Data
Unless otherwise indicated, information contained in this press release concerning our industry and the markets in which we operate, including our general expectations and market position, market opportunity, and market size, is based on information from various sources, on assumptions that we have made that are based on those data and other similar sources, and on our knowledge of the markets for our services. This information includes a number of assumptions and limitations, and you are cautioned not to give undue weight to such information. In addition, projections, assumptions, and estimates of our future performance and the future performance of the industry in which we operate are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in the Form 10-K, as well as Accel's other filings with the SEC. These and other factors could cause results to differ materially from those expressed in the estimates made by third parties and by us.
Non-GAAP Financial Information
This press release includes certain financial information not prepared in accordance with Generally Accepted Accounting Principles in
ACCEL ENTERTAINMENT, INC. CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||
(In thousands, except per share amounts) |
Years ended December 31, |
|||||||||
|
|
2024 |
|
|
|
2023 |
|
|
2022 |
|
Net revenues: |
|
|
|
|
|
|||||
Net gaming |
$ |
1,172,777 |
|
|
$ |
1,113,573 |
|
$ |
925,009 |
|
Amusement |
|
22,244 |
|
|
|
23,973 |
|
|
21,106 |
|
Manufacturing |
|
12,235 |
|
|
|
13,353 |
|
|
7,621 |
|
ATM fees and other |
|
23,716 |
|
|
|
19,521 |
|
|
16,061 |
|
Total net revenues |
|
1,230,972 |
|
|
|
1,170,420 |
|
|
969,797 |
|
Operating expenses: |
|
|
|
|
|
|||||
Cost of revenue (exclusive of depreciation and amortization expense shown below) |
|
852,373 |
|
|
|
809,524 |
|
|
666,126 |
|
Cost of manufacturing goods sold (exclusive of depreciation and amortization expense shown below) |
|
7,100 |
|
|
|
7,671 |
|
|
4,775 |
|
General and administrative |
|
194,721 |
|
|
|
180,248 |
|
|
145,942 |
|
Depreciation and amortization of property and equipment |
|
43,978 |
|
|
|
37,906 |
|
|
29,295 |
|
Amortization of intangible assets and route and customer acquisition costs |
|
22,577 |
|
|
|
21,211 |
|
|
17,484 |
|
Other expenses, net |
|
19,339 |
|
|
|
6,453 |
|
|
9,320 |
|
Total operating expenses |
|
1,140,088 |
|
|
|
1,063,013 |
|
|
872,942 |
|
Operating income |
|
90,884 |
|
|
|
107,407 |
|
|
96,855 |
|
Interest expense, net |
|
35,892 |
|
|
|
33,144 |
|
|
21,637 |
|
Loss (gain) on change in fair value of contingent earnout shares |
|
1,276 |
|
|
|
8,539 |
|
|
(19,544 |
) |
Gain on expiration of warrants |
|
(13 |
) |
|
|
— |
|
|
— |
|
Income before income tax expense |
|
53,729 |
|
|
|
65,724 |
|
|
94,762 |
|
Income tax expense |
|
18,438 |
|
|
|
20,121 |
|
|
20,660 |
|
Net income |
$ |
35,291 |
|
|
$ |
45,603 |
|
$ |
74,102 |
|
Less: Net income attributed to non-controlling interests |
$ |
39 |
|
|
$ |
— |
|
$ |
— |
|
Net income attributable to Accel Entertainment, Inc. |
$ |
35,252 |
|
|
$ |
45,603 |
|
$ |
74,102 |
|
|
|
|
|
|
|
|||||
Earnings per common share: |
|
|
|
|
|
|||||
Basic |
$ |
0.42 |
|
|
$ |
0.53 |
|
$ |
0.82 |
|
Diluted |
|
0.41 |
|
|
|
0.53 |
|
|
0.81 |
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|||||
Basic |
|
83,747 |
|
|
|
85,949 |
|
|
90,629 |
|
Diluted |
|
84,977 |
|
|
|
86,803 |
|
|
91,229 |
|
ACCEL ENTERTAINMENT, INC. CONSOLIDATED BALANCE SHEETS |
|||||||
(In thousands, except par value and share amounts) |
December 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
281,305 |
|
|
$ |
261,611 |
|
Accounts receivable, net |
|
10,550 |
|
|
|
13,467 |
|
Prepaid expenses |
|
8,950 |
|
|
|
6,287 |
|
Inventories |
|
8,122 |
|
|
|
7,681 |
|
Interest rate caplets |
|
6,342 |
|
|
|
8,140 |
|
Other current assets |
|
10,883 |
|
|
|
15,408 |
|
Total current assets |
|
326,152 |
|
|
|
312,594 |
|
Property and equipment, net |
|
307,997 |
|
|
|
260,813 |
|
Noncurrent assets: |
|
|
|
||||
Route and customer acquisition costs, net |
|
23,258 |
|
|
|
19,188 |
|
Location contracts acquired, net |
|
202,618 |
|
|
|
176,311 |
|
Goodwill |
|
116,252 |
|
|
|
101,554 |
|
Other intangible assets, net |
|
53,940 |
|
|
|
23,352 |
|
Interest rate caplets, net of current |
|
479 |
|
|
|
4,871 |
|
Other assets |
|
17,702 |
|
|
|
14,210 |
|
Total noncurrent assets |
|
414,249 |
|
|
|
339,486 |
|
Total assets |
$ |
1,048,398 |
|
|
$ |
912,893 |
|
Liabilities, Temporary equity, and Stockholders’ equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Current maturities of debt |
$ |
34,443 |
|
|
$ |
28,483 |
|
Current portion of route and customer acquisition costs payable |
|
2,197 |
|
|
|
1,505 |
|
Accrued location gaming expense |
|
4,734 |
|
|
|
9,350 |
|
Accrued state gaming expense |
|
19,802 |
|
|
|
18,364 |
|
Accounts payable and other accrued expenses |
|
41,944 |
|
|
|
36,012 |
|
Accrued compensation and related expenses |
|
12,117 |
|
|
|
12,648 |
|
Current portion of consideration payable |
|
3,116 |
|
|
|
3,288 |
|
Total current liabilities |
|
118,353 |
|
|
|
109,650 |
|
Long-term liabilities: |
|
|
|
||||
Debt, net of current maturities |
|
560,936 |
|
|
|
514,091 |
|
Route and customer acquisition costs payable, less current portion |
|
7,160 |
|
|
|
4,955 |
|
Consideration payable, less current portion |
|
14,596 |
|
|
|
4,201 |
|
Contingent earnout share liability |
|
33,103 |
|
|
|
31,827 |
|
Other long-term liabilities |
|
7,571 |
|
|
|
7,015 |
|
Deferred income tax liability, net |
|
47,372 |
|
|
|
42,750 |
|
Total long-term liabilities |
|
670,738 |
|
|
|
604,839 |
|
|
|
|
|
||||
Temporary equity - Redeemable noncontrolling interest |
|
4,278 |
|
|
|
— |
|
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Class A-1 Common Stock, par value |
|
8 |
|
|
|
8 |
|
Additional paid-in capital |
|
221,625 |
|
|
|
203,046 |
|
Treasury stock, at cost |
|
(105,485 |
) |
|
|
(112,070 |
) |
Accumulated other comprehensive income |
|
4,145 |
|
|
|
7,936 |
|
Accumulated earnings |
|
134,736 |
|
|
|
99,484 |
|
Total stockholders' equity |
|
255,029 |
|
|
|
198,404 |
|
Total liabilities, temporary equity, and stockholders' equity |
$ |
1,048,398 |
|
|
$ |
912,893 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250227494908/en/
Media Contact:
Eric Bonach
H/Advisors Abernathy
212-371-5999
eric.bonach@h-advisors.global
Source: Accel Entertainment, Inc.
FAQ
What were Accel Entertainment's (ACEL) Q4 2024 revenue and profit numbers?
How many gaming terminals and locations did ACEL have at the end of 2024?
What acquisitions did ACEL complete in Q4 2024?
How much is ACEL's new share repurchase program and how many shares were previously bought?
What was ACEL's net debt position at the end of 2024?
