NYSE$ACEL

Accel Entertainment Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Accel Entertainment's Q3 2023 performance reflected continued growth and strategic investments.

Accel Entertainment reported a strong Q3 2023, marked by revenue growth, increased net income, and strategic investments in new markets and technology. The company continues to expand its footprint and enhance its operational capabilities.

  • Revenue increased to $113.9 million, up 7.7% year-over-year.
  • Net income reached $11.2 million, compared to $10.3 million in the prior year.
  • Adjusted EBITDA rose to $26.9 million from $25.5 million year-over-year.
  • The company expanded its footprint to over 3,600 locations.

Headline financials

Total Revenue

$287M

Previous: $267M+7.7%
EPS (adj)

$0.22

Previous: $0.21+4.8%
Total Locations

3.6K

Previous: 2.5K+45.2%
Adjusted EBITDA

$26.9M

Previous: $43M-37.4%
Capital Expenditures

-$60.2M

Previous: -$33M-82.6%
Free Cash Flow

-$49.8M

Previous: -$10.5M-372.5%
Net Income

$10.5M

Previous: $22.4M-53.4%
Operating Income

$25.1M

Previous: $23.2M+8.1%
Gross Profit

-$2.07M

Previous: -$1.66M-24.7%
Cash & Equivalents

$230M

Previous: $212M+8.6%
Total Assets

$871M

Previous: $838M+3.9%
Stock-Based Comp

$2.72M

Previous: $1.07M+154.0%

Revenue & EPS history

Accel Entertainment · Revenue · Quarterly

$287M

Q3 2023+7.7%vs Q3 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

Accel Entertainment anticipates continued growth driven by expansion in existing and new markets, as well as ongoing investments in technology and operational efficiency. The company expects to maintain its strong financial performance and market leadership.

Tailwinds

  • Continued expansion in existing markets.
  • Entry into new markets with favorable regulatory environments.
  • Investments in technology to enhance operational efficiency.
  • Focus on strategic acquisitions to expand market presence.
  • Strong relationships with location partners.

Headwinds

  • Potential regulatory changes impacting the gaming industry.
  • Increased competition in the video gaming terminal market.
  • Economic downturn affecting consumer spending.
  • Challenges in integrating acquired businesses.
  • Fluctuations in gaming win rates.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-0.7%

Avg return

Earnings day

-4.6%

Avg return

5 days after

+1.1%

Avg return

30 days after

53%

18 / 34 earnings

Positive

+29.1%

Q2 2020

Best reaction

-19.7%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.1%-4.8%-1.2%
Q4 2025+19.2%+3.7%-0.3%
Q3 2025-0.7%-1.5%+1.6%
Q1 2025+4.6%+6.0%+3.4%
Q4 2024-8.0%-10.9%-14.9%
Q3 2024-3.7%-3.8%+0.8%
Q2 2024+11.3%-0.7%+6.8%
Q1 2024-13.8%-13.3%-11.7%
Q4 2023+7.9%+7.7%+12.3%
Q3 2023+5.3%+3.5%-3.8%
Q2 2023+8.1%+2.8%+6.8%
Q1 2023+7.3%+3.1%+10.3%
Q4 2022+2.7%+2.8%-2.1%
Q3 2022-11.8%-11.5%-14.6%
Q2 2022-19.7%-11.8%-23.6%
Q1 2022-9.9%-16.1%-10.6%
Q4 2021+4.1%-1.9%-9.0%
Q3 2021+0.2%+2.2%+0.2%
Q2 2021+4.6%+3.0%+4.7%
Q1 2021+8.2%+10.7%+4.3%
Q4 2020-2.7%-10.2%-5.9%
Q3 2019+0.8%+7.9%+4.5%
Q3 2020+0.8%+7.9%+4.5%
Q2 2020+29.1%+27.5%+61.1%
Q1 2019-13.3%-7.9%+13.6%
Q1 2020-13.3%-7.9%+13.6%
Q4 2017-11.3%-35.6%-3.1%
Q2 2019-11.3%-35.6%-3.1%
Q4 2019-11.3%-35.6%-3.1%
Q4 2018-11.3%-35.6%-3.1%
Q3 2018+0.2%+0.3%+0.0%
Q2 2018+0.3%+0.0%-1.0%
Q1 2018-0.1%+0.4%+0.3%
Q3 2017+0.0%+0.2%+0.4%
Q2 2017
Q1 2017

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