Core Viewpoint - Investing success may rely more on "time in the market" rather than "timing the market," but identifying the right stocks at the right time can yield significant profits. Researching lesser-known stocks can uncover valuable investment opportunities [1]. Group 1: Investment Opportunities - Accel Entertainment (ACEL) is the largest operator of distributed gaming terminals in the U.S., with a stock performance increase of over 21% in the past year. It trades at 13.2 times forward earnings and is expected to benefit from the expansion of distributed gaming in more states [3]. - Costamare (CMRE) operates in the shipping sector, trading at a low P/E ratio of 4. The ongoing conflict in the Red Sea has positively impacted freight rates, suggesting potential for sustained high earnings and stock price recovery [5]. - Ensign Group (ENSG) is a growth stock with a forward earnings multiple of 23.3, focusing on skilled nursing facilities. The company has seen a 39.2% increase in stock price over the past year, driven by acquisitions and the aging population trend [6]. - Griffon Corporation (GFF) has more than doubled in stock price over the past year. The company focuses on maximizing shareholder value through strategic acquisitions and divestitures, trading at 15.2 times forward earnings [7][8]. - Hibbett (HIBB), a sporting goods retailer, trades for under 10 times forward earnings despite a recent stock surge. The company benefits from a competitive advantage in underserved markets and partnerships, positioning it for continued strong fiscal results [9]. - Turning Point Brands (TPB) has a low valuation of 8.7 times forward earnings, with growth driven by its smokeless tobacco business and potential expansion into the nicotine pouch market, which is expected to grow by 35.7% annually from 2023 to 2030 [10][11]. - Village Super Market (VLGEA) trades at a low 7.7 times forward earnings and offers a 3.8% dividend yield. The company may increase dividends or buy back stock due to recent earnings growth, making it a solid value investment [12].

Core Insights - Accel Entertainment, Inc. reported strong fourth-quarter 2023 results, with earnings and net revenues exceeding expectations, driven by a focus on the local gaming market and growth in locations and gaming terminals [1][2] Financial Performance - Adjusted earnings per share (EPS) for the quarter were 26 cents, surpassing the Zacks Consensus Estimate of 17 cents by 52.9%, and up from 23 cents in the same quarter last year [2] - Total net revenues reached $297.1 million, beating the consensus mark of $286 million by 3.8%, and increased by 6.8% year-over-year, supported by revenue growth from Illinois, Montana, and Nebraska [2] - Operating income was $25.5 million, a 1.4% increase year-over-year, while the operating margin decreased by 40 basis points to 8.6% [3] - Adjusted EBITDA for the quarter was $44.6 million, up from $43.3 million year-over-year, with an adjusted EBITDA margin of 15%, down 60 basis points [3] Annual Overview - For the full year 2023, net revenues totaled $1.17 billion, an increase from $969.8 million in 2022 [4] - Adjusted EBITDA for 2023 was $181.4 million, up from $162.4 million the previous year [4] - EPS for 2023 was 53 cents, down from 81 cents in 2022 [4] Balance Sheet Highlights - As of December 31, 2023, cash and cash equivalents were $261.6 million, up from $224.1 million at the end of 2022 [5] - Net debt decreased to $281 million from $317.9 million year-over-year [5] - Net cash provided by operating activities for 2023 was $132.5 million, compared to $108 million in the prior year [5] - The company repurchased approximately $14 million worth of its common stock during the quarter [5]

Accel Entertainment, Inc. (NYSE:ACEL) Q4 2023 Earnings Conference Call February 28, 2024 5:30 PM ET Company Participants Derek Harmer - General Counsel and Chief Compliance Officer Andrew Rubenstein - President and Chief Executive Officer Mathew Ellis - Chief Financial Officer Conference Call Participants Steven Pizzella - Deutsche Bank Chad Beynon - Macquarie Research Gregory Gibas - Northland Capital Markets Operator Hello, everyone. Thank you for attending today's Accel Entertainment Q4 and 2023 Earnings ...

Fourth Quarter 2023 Earnings Presentation Important Information Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, contained in this presentation are forward-looking statements, including, but not limited to, any statements regarding our estimates of number of gaming terminals, ...

Business Operations Risks - The company relies on data from Light & Wonder, Inc. for key business metrics, which may not always be accurate, potentially affecting reputation and business operations[96] - The company faces risks from natural disasters, such as hurricanes and floods, which could disrupt operations and impact financial condition[98] - Regulatory compliance is critical, with strict gaming laws in various jurisdictions that could limit operations and expose the company to fines[99] - The company is currently involved in an administrative hearing related to alleged violations of the Video Gaming Act, which could affect licensing and operations[102] - Changes in gaming legislation could hinder operations, increase compliance costs, and negatively impact profitability, especially in jurisdictions with new taxes or regulations[103] - Ongoing litigation could distract management and result in significant costs, impacting overall business operations and financial condition[107] - Security breaches or disruptions could compromise sensitive information, leading to liability and reputational damage for the company[117] Financial Condition and Debt - As of December 31, 2023, the company had total indebtedness of $545.4 million, all borrowed under the Credit Agreement, with approximately $304.0 million of availability[127] - The company may incur significant upfront costs prior to receiving any revenue under gaming or amusement contracts, impacting liquidity and the ability to secure new contracts[124] - The company is subject to financial covenants requiring a consolidated first lien net debt to consolidated EBITDA ratio no greater than 4.50 to 1.00 and a consolidated EBITDA to consolidated fixed charges ratio no less than 1.20 to 1.00[135] - The company may not have sufficient cash flows from operating activities to service all indebtedness and obligations, potentially forcing alternative actions[129] - The company’s ability to generate revenue and procure new contracts depends on liquidity levels and the ability to obtain financing on commercially reasonable terms[124] - Adverse developments in the financial services industry could lead to less favorable financing terms, impacting the company's results of operations and financial condition[138] - The agreements governing the company's indebtedness impose restrictions that may affect operational flexibility and the ability to finance future operations[132] - As of December 31, 2023, borrowings under the senior secured credit facility amounted to $545.4 million[242] Interest Rate Risks - The company is exposed to interest rate risk as a significant portion of borrowings are at variable rates, which could negatively impact financial condition if rates increase[128] - A 1.0% increase in interest rates would lead to an annual increase in interest expense of approximately $2.5 million, assuming the balance remains at $545.4 million[242] - The company has hedged the variability of cash flows on the first $300 million of the term loan by entering into a series of 48 deferred premium caplets, maturing monthly[242] - The company is exposed to interest rate risk, primarily due to fluctuations in interest rates affecting its financial position[241] - The company’s cash and cash equivalents are held in highly liquid accounts, minimizing the impact of interest rate changes[243] Market and Stock Risks - Approximately 20% of the shares of Class A-1 common stock were beneficially owned by affiliates of Clairvest as of December 31, 2023, which may influence corporate actions[141] - The market price and trading volume of Class A-1 common stock may be volatile, with potential significant declines[147] - Future issuances of debt or equity securities may adversely affect the market price of existing securities and could be dilutive to current stockholders[150] - A significant number of shares of Class A-1 common stock are registered for resale, which could increase market volatility[157] - The realization of risk factors presented in the Annual Report could lead to significant price fluctuations in Class A-1 common stock[147] - Changes in gaming laws and regulations could impact the company's operations and market conditions[149] Intellectual Property and Product Risks - The company’s success is tied to the protection of intellectual property, with potential risks from infringement and litigation that could divert resources[111] - The company may face liabilities from product defects, which could lead to recalls and significant expenses, affecting profitability[104]

Accel Entertainment Announces 2023 Operating Results Chicago, IL – February 28, 2024 – Accel Entertainment, Inc. (NYSE: ACEL) today announced certain financial and operating results for the three-months and year ended December 31, 2023. Highlights: • Ended 2023 with 3,961 locations; an increase of 6% compared to 2022; excluding Nebraska, locations increased 3% compared to 2022 • Ended 2023 with 25,083 gaming terminals, an increase of 7% compared to 2022; excluding Nebraska, gaming terminals increased 5% com ...

Accel Entertainment, Inc. (NYSE:ACEL) Q3 2023 Earnings Conference Call November 7, 2023 5:30 PM ET Company Participants Derek Harmer - General Counsel, Chief Compliance Officer & Secretary Andrew Rubenstein - Co-Founder, President, CEO & Director Mathew Ellis - CFO Conference Call Participants Steven Pizzella - Deutsche Bank Samir Ghafir - Macquarie Research Gregory Gibas - Northland Capital Markets Operator Good afternoon, and thank you for attending today's Accel Entertainment third quarter earnings call. ...

PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2023, covering operations, balance sheets, and cash flows [Condensed Consolidated Statements of Operations and Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) For Q3 2023, total net revenues grew 7.7% to **$287.5 million**, but net income declined 53.4% to **$10.5 million**, primarily due to a loss on contingent earnout shares and higher interest expenses Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Q3 2023 | Q3 2022 | YoY Change | Nine Months 2023 | Nine Months 2022 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Net Revenues** | $287,497 | $266,967 | 7.7% | $873,352 | $691,727 | 26.3% | | **Operating Income** | $25,120 | $23,239 | 8.1% | $81,956 | $71,761 | 14.2% | | **Net Income** | $10,450 | $22,444 | (53.4%) | $29,615 | $60,696 | (51.2%) | | **Diluted EPS** | $0.12 | $0.25 | (52.0%) | $0.34 | $0.66 | (48.5%) | [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2023, total assets increased slightly to **$871.4 million**, while total liabilities decreased to **$672.6 million**, and stockholders' equity grew to **$198.8 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | Sep 30, 2023 (Unaudited) | Dec 31, 2022 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $230,388 | $224,113 | | **Total current assets** | $282,650 | $299,212 | | **Total assets** | $871,408 | $862,769 | | **Total current liabilities** | $92,217 | $89,905 | | **Total debt, net of current maturities** | $484,004 | $518,566 | | **Total liabilities** | $672,634 | $684,179 | | **Total stockholders' equity** | $198,774 | $178,590 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2023, net cash from operations increased to **$92.0 million**, while investing activities used less cash, and financing activities reversed to a net use Consolidated Statements of Cash Flows Summary (in thousands) | Cash Flow Activity | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $92,007 | $78,250 | | **Net cash used in investing activities** | $(35,404) | $(168,871) | | **Net cash (used in) provided by financing activities** | $(50,328) | $103,898 | | **Net increase in cash and cash equivalents** | $6,275 | $13,277 | [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed information on business operations, accounting policies, acquisitions, debt, and legal contingencies, including revenue disaggregation and share repurchase program details - The company's business primarily consists of installing, maintaining, and operating gaming terminals and ATMs in non-casino locations like restaurants, bars, and convenience stores across several states including Illinois, Montana, and Nevada[19](index=19&type=chunk) Net Revenues by State (in thousands) | State | Q3 2023 | Q3 2022 | Nine Months 2023 | Nine Months 2022 | | :--- | :--- | :--- | :--- | :--- | | **Illinois** | $212,113 | $200,914 | $647,903 | $601,735 | | **Montana** | $39,362 | $33,456 | $115,088 | $44,282 | | **Nevada** | $28,003 | $28,439 | $87,833 | $37,359 | | **Other** | $8,019 | $4,158 | $22,528 | $8,351 | - In May 2023, the company settled its dispute with Gold Rush Amusements, receiving **$32.5 million**, which resolved all outstanding obligations under the convertible notes[33](index=33&type=chunk) - The company's Board of Directors approved a **$200 million** share repurchase program, under which **10,010,374 shares** totaling **$103.6 million** were acquired as of September 30, 2023[103](index=103&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=28&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses the company's financial results, highlighting a 26.3% year-over-year revenue increase for the first nine months of 2023, despite a significant decline in net income due to non-cash charges and higher interest expenses [Results of Operations](index=31&type=section&id=Results%20of%20Operations) For Q3 2023, revenues increased 7.7% to **$287.5 million**, but net income fell 53.4% to **$10.5 million**, primarily due to a loss on contingent earnout shares and increased net interest expense Q3 2023 vs Q3 2022 Performance (in thousands) | Metric | Q3 2023 | Q3 2022 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Total net revenues** | $287,497 | $266,967 | $20,530 | 7.7% | | **Operating income** | $25,120 | $23,239 | $1,881 | 8.1% | | **Net income** | $10,450 | $22,444 | $(11,994) | (53.4)% | Nine Months 2023 vs 2022 Performance (in thousands) | Metric | Nine Months 2023 | Nine Months 2022 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Total net revenues** | $873,352 | $691,727 | $181,625 | 26.3% | | **Operating income** | $81,956 | $71,761 | $10,195 | 14.2% | | **Net income** | $29,615 | $60,696 | $(31,081) | (51.2)% | - The increase in general and administrative expenses for the nine months ended Sep 30, 2023, was driven by higher payroll costs, parts and repair expense, stock-based compensation, and a **$1.1 million** settlement with the Illinois Gaming Board (IGB)[168](index=168&type=chunk) [Key Business Metrics](index=36&type=section&id=Key%20Business%20Metrics) The company's growth is monitored through the number of locations and gaming terminals, which increased by 4.8% and 7.1% respectively year-over-year as of September 30, 2023 Number of Locations by State | State | As of Sep 30, 2023 | As of Sep 30, 2022 | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Illinois** | 2,724 | 2,596 | 4.9% | | **Montana** | 611 | 586 | 4.3% | | **Nevada** | 352 | 335 | 5.1% | | **Total locations** | 3,687 | 3,517 | 4.8% | Number of Gaming Terminals by State | State | As of Sep 30, 2023 | As of Sep 30, 2022 | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Illinois** | 15,020 | 14,033 | 7.0% | | **Montana** | 6,252 | 5,782 | 8.1% | | **Nevada** | 2,744 | 2,614 | 5.0% | | **Total gaming terminals** | 24,016 | 22,429 | 7.1% | [Non-GAAP Financial Measures](index=37&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA, a non-GAAP measure, increased by 7.3% to **$44.1 million** for Q3 2023 and by 14.9% to **$136.9 million** for the nine-month period, reflecting growth in locations and terminals Adjusted EBITDA Reconciliation (in thousands) | Metric | Q3 2023 | Q3 2022 | Nine Months 2023 | Nine Months 2022 | | :--- | :--- | :--- | :--- | :--- | | **Net Income** | $10,450 | $22,444 | $29,615 | $60,696 | | **Adjusted EBITDA** | $44,138 | $41,125 | $136,869 | $119,083 | [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) The company ended Q3 2023 with **$230.4 million** in cash and cash equivalents, believing existing cash, operating cash flows, and borrowing availability are sufficient for future capital requirements - As of September 30, 2023, the company had **$230.4 million** in cash and cash equivalents[185](index=185&type=chunk) - In June 2023, the company drew **$100 million** on its delayed draw term loan facility, with **$342 million** remaining available under the Credit Agreement as of September 30, 2023[189](index=189&type=chunk) - The company was in compliance with all debt covenants as of September 30, 2023, and expects to remain so for the next 12 months[195](index=195&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risk is interest rate fluctuations on its **$515.5 million** floating-rate debt, which it mitigates using interest rate caplets to hedge cash flow variability - The company is exposed to interest rate risk on its **$515.5 million** of floating-rate debt, where a **1.0%** increase would raise annual interest expense by approximately **$2.2 million**[208](index=208&type=chunk) - To manage interest rate risk, the company uses a 4-year series of interest rate caplets to hedge cash flow variability on the first **$300 million** of its term loan, protecting against the 1-month LIBOR/SOFR rate exceeding **2%**[208](index=208&type=chunk) [Controls and Procedures](index=42&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that previously identified material weaknesses in internal controls persisted as of September 30, 2023, rendering disclosure controls ineffective, yet the financial statements are fairly presented - The CEO and CFO concluded that material weaknesses identified in the 2022 Form 10-K were still present as of September 30, 2023, rendering disclosure controls and procedures ineffective[210](index=210&type=chunk) - Notwithstanding the material weaknesses, management asserts that the condensed consolidated financial statements in this Form 10-Q are fairly presented in all material respects[211](index=211&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=43&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is involved in various legal matters, including a **$1.1 million** settlement with the Illinois Gaming Board in Q3 2023 and ongoing disputes with competitors over contractual rights - On July 6, 2023, the company entered into a settlement agreement with the IGB for **$1.1 million** to resolve a disciplinary complaint, which was paid in Q3 2023[121](index=121&type=chunk) - The company remains involved in a series of litigated matters with J&J Ventures Gaming, LLC, stemming from claims of tortious interference with contracts dating back to 2012[112](index=112&type=chunk)[114](index=114&type=chunk) [Risk Factors](index=43&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company highlights key business risks, emphasizing that unfavorable economic conditions and instability in the financial services industry could adversely affect revenue and operations - Unfavorable economic conditions, including recession, inflation, and rising interest rates, pose a significant risk by potentially reducing players' disposable income and gaming activity, adversely affecting revenue[217](index=217&type=chunk)[219](index=219&type=chunk) - Instability in the U.S. and global banking systems could lead to less favorable financing terms, tighter credit access, and potential financial distress for location partners, negatively impacting operations[218](index=218&type=chunk)[222](index=222&type=chunk) [Issuer Purchases of Equity Securities](index=44&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%2C%20USE%20OF%20PROCEEDS%2C%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) Under its **$200 million** share repurchase program, the company bought back **301,199 shares** of Class A-1 common stock in Q3 2023 at an average price of **$11.10** per share, with **$96.4 million** remaining available Share Repurchases in Q3 2023 | Period | Total Shares Purchased | Average Price Paid per Share | Max. Value Remaining for Purchase (in millions) | | :--- | :--- | :--- | :--- | | **July 2023** | — | $— | $99.7 | | **August 2023** | — | $— | $99.7 | | **September 2023** | 301,199 | $11.10 | $96.4 | | **Total Q3** | **301,199** | **$11.10** | | - The share repurchase program, approved in November 2021, authorizes up to **$200 million** in repurchases of Class A-1 common stock[224](index=224&type=chunk)

Second Quarter 2023 Earnings Presentation Important Information Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, contained in this presentation are forward-looking statements, including, but not limited to, any statements regarding our estimates of number of gaming terminals, ...

Accel Entertainment, Inc. (NYSE:ACEL) Q2 2023 Earnings Conference Call August 3, 2023 5:30 PM ET Company Participants Derek Harmer - General Counsel and Chief Compliance Officer Andrew Rubenstein - CEO Mathew Ellis - CFO Conference Call Participants Steve Pizzella - Deutsche Bank Chad Beynon - Macquarie Greg Gibas - Northland Operator Good afternoon. Thank you for attending the Accel Entertainment's Second Quarter 2023 Earnings Call. My name is Matt, and I'll be your moderator for today's call. [Operator In ...