Accel Entertainment (ACEL) Q4 2022 earnings summary

Executive summary

• FY2022 net revenue rose 32.0% YoY to $969.8M; Adjusted EBITDA increased 16.3% to $162.4M, supported by Century and the resumption of Illinois gaming after prior-year shutdowns.

• The June Century acquisition expanded operations in Montana and Nevada and added gaming-terminal manufacturing; year-end footprint reached 3,598 locations and 23,150 terminals.

Financial highlights

• Net income was $74.1M vs. $31.6M in 2021; operating income was $96.9M vs. $70.2M, and diluted EPS was $0.81 vs. $0.33.

• Total net revenue was $969.8M, up $235.1M YoY; net gaming revenue rose 31.1% to $925.0M and amusement revenue rose 26.6% to $21.1M.

• Adjusted net income was $79.9M, up 11.9%; Adjusted EBITDA was $162.4M, up 16.3%.

• Operating cash flow was $108.0M; cash and cash equivalents were $224.1M at year-end.

Outlook and guidance

• 2023 capital expenditures were projected at $40M–$45M; cash, operating cash flow and available credit were expected to cover capital needs for the next 12 months.

• Pennsylvania gaming operations were targeted to commence in 2023, subject to regulatory and other conditions; a binding truck-stop partner agreement was in place.