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ACEL NYSE· Accel Entertainment
Earnings report Q4 2023

Accel Entertainment, Inc. Reports Strong Revenue Growth in Latest Quarter

Segments of Revenue

In the latest quarter, Accel Entertainment, Inc. reported total net revenues of $1.17 billion. The company's revenue is generated from various segments, including net gaming, amusement, manufacturing, and ATM fees and other. Net gaming revenue increased from $925 million in the previous year to $1.11 billion, reflecting a significant growth of 20.3%. Amusement revenue also showed positive growth, reaching $24 million compared to $21.1 million in the prior year. Manufacturing revenue was $13.4 million, and ATM fees and other revenue amounted to $19.5 million.

Strengths

Accel Entertainment, Inc. demonstrated strong financial performance in the latest quarter, with a notable increase in revenue. The growth in net gaming revenue can be attributed to the company's acquisition of Century, which led to an expansion in the number of locations and gaming terminals. This expansion contributed to the overall increase in revenue. Management comments indicate that the company is focused on maintaining sufficient liquidity and reviewing cash flow projections to ensure a strong capital structure.

Challenges

While Accel Entertainment, Inc. experienced overall revenue growth, there were some challenges in the latest quarter. The company reported higher payroll-related costs and parts and repair expenses, which partially offset the positive impact of the increased number of locations and gaming terminals. These challenges highlight the need for effective cost management strategies to optimize profitability.

Noteworthy

Adjusted EBITDA for the year ended December 31, 2023, was $181.4 million, representing an 11.7% increase compared to the previous year. This growth can be attributed to the expansion of the company's operations and the acquisition of Century. Additionally, Accel Entertainment, Inc. reported a net income of $45.6 million in the latest quarter, reflecting a positive financial performance.

Summary

Accel Entertainment, Inc. delivered a strong financial performance in the latest quarter, with significant revenue growth driven by the expansion of their gaming operations. The acquisition of Century played a crucial role in increasing the number of locations and gaming terminals, leading to a substantial increase in net gaming revenue. However, the company faced challenges in managing higher payroll-related costs and parts and repair expenses. Overall, Accel Entertainment, Inc. demonstrated resilience and strategic focus in maintaining strong liquidity and capital resources.

Source documents

Form 10-K  filed on Feb 28, 2024
105 pages scanned

Reference data

Company financials Q4 revenue 297M
Analyst estimates Q4 EPS beat by 46.30%
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