Accel Entertainment Files Q2 2024 10-Q

TL;DR

Accel Ent. 10-Q filed: Q2 & H1 2024 financials out. Gaming & amusement biz updates.

AI Summary

Accel Entertainment, Inc. filed its 10-Q for the period ending June 30, 2024. The company, formerly TPG Pace Holdings Corp., reported financial results for the second quarter and the first half of 2024. Key financial data and operational details for their amusement and video gaming segments are included in this filing.

Why It Matters

This filing provides investors with the latest financial performance and operational updates for Accel Entertainment, Inc., crucial for understanding the company's current standing and future prospects.

Risk Assessment

Risk Level: medium — 10-Q filings inherently carry medium risk due to the detailed financial and operational information that can impact stock price.

Key Players & Entities

• Accel Entertainment, Inc. (company) — Filer of the 10-Q
• TPG Pace Holdings Corp. (company) — Former name of Accel Entertainment, Inc.
• 20240630 (date) — End of reporting period
• 20240730 (date) — Filing date

FAQ

Filing Documents

• acel-20240630.htm (10-Q) — 1214KB
• accelexhibit3116302024.htm (EX-31.1) — 8KB
• accelexhibit3126302024.htm (EX-31.2) — 8KB
• accelexhibit3216302024.htm (EX-32.1) — 5KB
• accelexhibit32263024.htm (EX-32.2) — 5KB
• 0001698991-24-000037.txt ( ) — 6517KB
• acel-20240630.xsd (EX-101.SCH) — 52KB
• acel-20240630_cal.xml (EX-101.CAL) — 70KB
• acel-20240630_def.xml (EX-101.DEF) — 246KB
• acel-20240630_lab.xml (EX-101.LAB) — 607KB
• acel-20240630_pre.xml (EX-101.PRE) — 425KB
• acel-20240630_htm.xml (XML) — 741KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 1

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS 1 Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) for the three and six months ended June 30, 2024 and 2023 1 Condensed Consolidated Balance Sheets (Unaudited) as of June 30, 2024 and December 31, 2023 2 Condensed Consolidated Statements of Stockholders' Equity (Unaudited) for the three and six months ended June 30, 2024 and 2023 3 Condensed Consolidated Statements of Cash Flows (Unaudited) for the six months ended June 30, 2024 and 2023 4 Notes to the Condensed Consolidated Financial Statements (Unaudited) 6

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 22

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 35

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES 35

OTHER INFORMATION

PART II. OTHER INFORMATION 36

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS 36

RISK FACTORS

ITEM 1A. RISK FACTORS 36

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 36

DEFAULTS UPON SENIOR SECURITIES

ITEM 3. DEFAULTS UPON SENIOR SECURITIES 37

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 37

OTHER INFORMATION 37

ITEM 5. OTHER INFORMATION 37

EXHIBITS

ITEM 6. EXHIBITS 37

SIGNATURES

SIGNATURES 38 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS. ACCEL ENTERTAINMENT, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) (In thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net revenues: Net gaming $ 293,240 $ 277,551 $ 581,377 $ 556,931 Amusement 5,539 5,630 11,668 12,428 Manufacturing 5,208 4,430 7,417 6,552 ATM fees and other 5,426 5,036 10,768 9,944 Total net revenues 309,413 292,647 611,230 585,855 Operating expenses: Cost of revenue (exclusive of depreciation and amortization expense shown below) 213,317 202,306 422,484 405,860 Cost of manufacturing goods sold (exclusive of depreciation and amortization expense shown below) 3,162 2,154 4,321 3,562 General and administrative 46,541 44,220 94,175 87,238 Depreciation and amortization of property and equipment 10,794 9,446 21,228 18,509 Amortization of intangible assets and route and customer acquisition costs 5,589 5,284 11,027 10,526 Other expenses, net 7,327 73 9,753 3,324 Total operating expenses 286,730 263,483 562,988 529,019 Operating income 22,683 29,164 48,242 56,836 Interest expense, net 8,906 8,243 17,566 16,131 (Gain) loss on change in fair value of contingent earnout shares ( 4,742 ) 4,836 ( 26 ) 9,438 Income before income tax expense 18,519 16,085 30,702 31,267 Income tax expense 3,933 6,102 8,700 12,102 Net income $ 14,586 $ 9,983 $ 22,002 $ 19,165 Earnings per common share: Basic $ 0.17 $ 0.12 $ 0.26 $ 0.22 Diluted 0.17 0.11 0.26 0.22 Weighted average number of common shares outstanding: Basic 83,911 86,184 84,105 86,529 Diluted 85,054 86,820 85,178 86,971 Comprehensive income Net income $ 14,586 $ 9,983 $ 22,002 $ 19,165 Unrealized (loss) gain on interest rate caplets (net of income taxes of $( 403 ), $ 789 , $ 2 , and $( 40 ) respectively) ( 1,077 ) 2,062 4 ( 104 ) Comprehensive income $ 13,509 $ 12,045 $ 22,006 $ 19,061 The accompanying notes are an integral part of thes

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