Accel Entertainment, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Accel Entertainment, Inc. has filed its 2023 10-K report, detailing financial performance and corporate history.</b>

AI Summary

Accel Entertainment, Inc. (ACEL) filed a Annual Report (10-K) with the SEC on February 28, 2024. Accel Entertainment, Inc. filed its annual report for the fiscal year ending December 31, 2023. The company was formerly known as TPG Pace Holdings Corp. and changed its name on February 24, 2017. Accel Entertainment operates within the Amusement & Recreation Services industry. The filing includes financial data for the fiscal years 2021, 2022, and 2023. Key financial statement elements such as common stock, additional paid-in capital, and retained earnings are detailed for the period ending December 31, 2020, and subsequent periods.

Why It Matters

For investors and stakeholders tracking Accel Entertainment, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Accel Entertainment's financial health and operational status for the fiscal year 2023, crucial for investors assessing the company's performance and future prospects. The detailed financial data and historical information, including name changes and incorporation details, offer transparency and context for stakeholders evaluating the company's market position and investment potential.

Risk Assessment

Risk Level: low — Accel Entertainment, Inc. shows low risk based on this filing. The filing is a standard annual report (10-K) and does not contain immediate red flags or significant negative developments, indicating a routine disclosure.

Analyst Insight

Review the detailed financial statements and segment revenues within the 10-K to understand Accel Entertainment's performance drivers and identify any emerging trends.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reported period)
• 2024-02-28 — Filing Date (Date of submission)
• 128 — Public Document Count (Number of documents in the filing)
• 7900 — SIC Code (Services-Amusement & Recreation Services)

Key Players & Entities

• Accel Entertainment, Inc. (company) — Filer name
• TPG Pace Holdings Corp. (company) — Former company name
• Burr Ridge, IL (location) — Business and mailing address
• Derek Harmer (person) — Member mentioned in relation to financial data
• David W. Ruttenberg (person) — Member mentioned in relation to financial data

FAQ

Industry Context

Accel Entertainment operates in the Amusement & Recreation Services sector, specifically focusing on video gaming and amusement services.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to disclose material information to investors.

What Investors Should Do

1. Analyze the revenue breakdown by segment (Video Gaming, Amusement, Manufacturing, ATM Fees) for fiscal years 2021-2023.
2. Examine the balance sheet details, including assets, liabilities, and equity, for the periods ending December 31, 2020, 2021, 2022, and 2023.
3. Review any disclosed risk factors or management discussion and analysis (MD&A) sections for insights into operational challenges and strategic outlook.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-28: Filing Date — Date Accel Entertainment, Inc. submitted its 10-K.

Year-Over-Year Comparison

This is the initial 10-K filing for the fiscal year ending December 31, 2023, following previous filings which would have covered prior periods.

Filing Documents

• acel-20231231.htm (10-K) — 2036KB
• accelexhibit211-2023.htm (EX-21.1) — 20KB
• accelexhibit23-2023.htm (EX-23) — 2KB
• accelexhibit311-123123.htm (EX-31.1) — 8KB
• accelexhibit312-123123.htm (EX-31.2) — 8KB
• accelexhibit321-123123.htm (EX-32.1) — 5KB
• accelexhibit322-123123.htm (EX-32.2) — 5KB
• accelexhibit97-123123.htm (EX-97) — 59KB
• acel-20231231_g1.jpg (GRAPHIC) — 218KB
• acel-20231231_g2.jpg (GRAPHIC) — 89KB
• 0001698991-24-000007.txt (&nbsp;) — 12814KB
• acel-20231231.xsd (EX-101.SCH) — 92KB
• acel-20231231_cal.xml (EX-101.CAL) — 127KB
• acel-20231231_def.xml (EX-101.DEF) — 439KB
• acel-20231231_lab.xml (EX-101.LAB) — 1136KB
• acel-20231231_pre.xml (EX-101.PRE) — 776KB
• acel-20231231_htm.xml (XML) — 1713KB

BUSINESS

BUSINESS 1 ITEM 1A.

RISK FACTORS

RISK FACTORS 8 ITEM 1B. UNRESOLVED STAFF COMMENTS 26 ITEM 1C. CYBERSECURITY 26 ITEM 2.

PROPERTIES

PROPERTIES 27 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 28 ITEM 4. MINE SAFETY DISCLOSURES 28 PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 29 ITEM 6. [RESERVED] 30 ITEM 7.

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

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 31 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 42 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 42 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 42 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 43 ITEM 9B. OTHER INFORMATION 44

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 45 PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 46 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 46 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 46 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 46 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 46 PART IV ITEM 15. EXHIBIT AND FINANCIAL STATEMENT SCHEDULES 47 ITEM 16. FORM 10-K SUMMARY 49 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K (the "Form 10-K") contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements, other than statements of historical fact, contained in this Annual Report on Form 10-K are forward-looking statements, including, but not limited to, statements regarding our strategy, prospects, plans, objectives, future operations, future revenue and earnings, projected margins and expenses, markets for our services, potential acquisitions or strategic alliances, financial position, liquidity, anticipated cash needs and availability, accounting estimates and judgments, and our estimates of number of gaming terminals, locations, Adjusted EBITDA, and capital expenditures. The words "anticipates," "believes," "estimates," "expects," "intends," "may," "plans," "projects," "will," "would," and similar expressions or the negatives thereof are intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. These forward-looking statements represent our current reasonable expectations and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. We cannot guarantee the accuracy of the forward-looking statements

BUSINESS

ITEM 1. BUSINESS Who We Are We are a leading distributed gaming operator in the United States ("U.S.") and a preferred partner for local business owners in the markets we serve. We offer turnkey, full-service gaming solutions to bars, restaurants, convenience stores, truck stops, and fraternal and veteran establishments across the country. Our focus is providing unmatched customer support, guidance, and expertise so our location partners can grow their businesses with incremental revenue. We install, maintain, operate and service gaming terminals and related equipment for our location partners as well as redemption devices that have automated teller machine ("ATM") functionality and stand-alone ATMs. We offer amusement devices, including jukeboxes, dartboards, pool tables, and other entertainment related equipment. These operations provide a complementary source of lead generation for our gaming business by offering a "one-stop" source of additional equipment for our location partners. We also design and manufacture gaming terminals and related equipment. We are continuously evaluating additional opportunities that are complementary to our core business. Where We Operate State Year Operations Started or Year of Acquisition Branding Operations Illinois 2012 Accel Entertainment Establishments with a liquor license (Up to 6 gaming terminals) – Bars/restaurants/retail – Gaming cafes – Fraternal organizations – Veterans' organizations Truck stops (Up to 6 gaming terminals) Large truck stops (Up to 10 gaming terminals) Montana 2022 Century Gaming Business locations licensed to sell alcoholic beverages for on-premises consumption only, including locations restricted to offering a maximum of 20 slot machines Montana 2022 Grand Vision Gaming Designs and manufactures gaming terminals and software that are sold to Montana, South Dakota, West Virginia, and Louisiana Develops proprietary gaming terminals and related software as well as other ancillary equi