Accel Entertainment (ACEL) Q4 2021 earnings summary

Executive summary

• FY 2021 revenue, net income and Adjusted EBITDA reached record highs; location hold per day increased 38% vs 2020.

• Results benefited from more operating days: 347 gaming days in 2021 vs 217 in 2020, following mandated Illinois shutdowns in 2020 and early 2021.

Financial highlights

• FY 2021 revenue was $735 million, up 132% YoY; Q4 revenue was $192 million, up 158%.

• FY 2021 net income was $32 million vs approximately breakeven in 2020; Q4 net income was $7 million vs a $9 million loss.

• FY 2021 Adjusted EBITDA was $140 million, up 312% YoY; Q4 was $33 million, up 606%.

• FY 2021 Adjusted net income was $71 million vs $6 million in 2020; Q4 was $17 million vs a $2 million loss.

• FY 2021 gross profit was $241 million at a 33% margin; EBIT was $83 million.

Outlook and guidance

• 2022 guidance excluding Century: 2,760–2,795 locations, 14,560–14,750 VGTs, revenue of $820–$870 million and Adjusted EBITDA of $160–$170 million.

• 2022 pro forma Century guidance: 3,700–3,800 locations, 23,000–25,000 VGTs, revenue of $1,065–$1,180 million and Adjusted EBITDA of $182–$198 million.

• 2022 CapEx guidance is $20–$25 million excluding Century and $25–$35 million pro forma Century; guidance remained unchanged.

• Guidance assumes Georgia results will not be added back to Adjusted EBITDA in H2 2022, as Georgia will have operated for more than 24 months.