Accel Entertainment Reports Record Third Quarter Revenue of $364 Million

Mark Phelan, CEO of Accel Entertainment

“We delivered another period of double-digit revenue growth in the third quarter, marking another strong quarter with solid profitability. Third-quarter revenue increased 10% year-over-year a third-quarter record $364 million, while third-quarter net income rose 55% year-over-year. Adjusted EBITDA rose 12% to $57 million, a third quarter record. With the operating leverage inherent in our business model, Adjusted EBITDA again grew faster than revenue, reflecting the quality of our portfolio, disciplined capital deployment and strong execution across our markets.”

Mark Phelan, CEO of Accel Entertainment

“Notably, Accel’s core business continues to get stronger while our growth strategy becomes increasingly diversified. In Illinois, excluding Fairmount Park, revenue increased approximately 7% and hold-per-day increased approximately 9%, highlighting the benefits of our strategy to optimize the Illinois portfolio by pruning lower-performing locations and allocating resources toward our strongest opportunities. We also delivered strong third-quarter performances in Georgia, Nebraska and Louisiana, continued expansion in Nevada, and significant momentum at Fairmount Park, where gaming revenue increased approximately 84% year-over-year.”

Mark Phelan, CEO of Accel Entertainment

“Accel generates meaningful cash flow and maintains a strong balance sheet, with low leverage and substantial liquidity, which provides us with significant flexibility to invest organically, pursue disciplined acquisitions and return capital to shareholders when we believe doing so represents an effective use of capital. We ended the quarter with $294 million of cash and cash equivalents and net debt of approximately $272 million. We also repurchased approximately 624,000 shares of our common stock for $7.2 million during the third quarter as we believe our shares represent an attractive investment opportunity given our strong and growing fundamentals.”

Mark Phelan, CEO of Accel Entertainment

“Finally, we recently completed the build-out of our senior leadership team to execute against the growth opportunities that we see ahead of us, including Chicago, where the rollout has now begun with the receipt of our first licenses, and the continued development of Fairmount. We are very excited about Accel’s future and remain focused on executing initiatives that we believe can enhance long-term shareholder value.”