Core Viewpoint - Accel Entertainment (ACEL) shares have increased by 4.1% recently, with analysts suggesting a potential upside of 36.7% based on a mean price target of $15.67 [1][11]. Price Targets and Analyst Estimates - The mean price target consists of three short-term estimates with a standard deviation of $0.58, indicating a consensus among analysts [2]. - The lowest estimate is $15, suggesting a 30.9% increase, while the highest estimate is $16, indicating a 39.6% increase from the current price [2]. - A low standard deviation signifies a high degree of agreement among analysts regarding the stock's price movement [9]. Earnings Estimates and Market Sentiment - Analysts are optimistic about ACEL's earnings prospects, as indicated by upward revisions in EPS estimates, which have shown a strong correlation with stock price movements [11]. - Over the past 30 days, two earnings estimates have been revised upward, leading to an 8% increase in the Zacks Consensus Estimate [12]. - ACEL holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, suggesting a strong potential for upside [13].

Group 1 - Accel Entertainment's stock is currently facing challenges despite potential upside linked to Fairmount Park, a historic property in the St. Louis metro area [1] - The company specializes in analyzing restaurant stocks across various segments, including QSR, fast casual, casual dining, fine dining, and family dining [1] - Advanced analytical models and specialized valuation techniques are employed to provide detailed insights and actionable strategies for investors [1] Group 2 - The founder of Goulart's Restaurant Stocks actively engages in academic and journalistic initiatives, contributing to institutions that promote individual and economic freedom [1] - Previous contributions included discussions on monetary policy, financial education, and financial modeling aimed at making these subjects accessible to a broader audience [1]

Core Insights - Accel Entertainment reported quarterly earnings of $0.24 per share, exceeding the Zacks Consensus Estimate of $0.18 per share, and showing an increase from $0.22 per share a year ago, resulting in an earnings surprise of 33.33% [1] - The company achieved revenues of $323.91 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.89% and up from $301.82 million year-over-year [2] - The stock has underperformed slightly, losing about 0.3% since the beginning of the year, compared to a decline of 3.3% in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.22 on revenues of $331.38 million, and for the current fiscal year, it is $0.81 on revenues of $1.32 billion [7] - The estimate revisions trend for Accel Entertainment is currently unfavorable, leading to a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Gaming industry, to which Accel Entertainment belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Another company in the same industry, Playtika Holding, is expected to report quarterly earnings of $0.11 per share, reflecting a year-over-year decline of 26.7%, with revenues projected at $697.25 million, up 7.1% from the previous year [9][10]

Financial Data and Key Metrics Changes - The company reported total revenue of $344 million for Q1 2025, marking a 7% year-over-year increase, which is the highest quarterly revenue since going public [5] - Adjusted EBITDA for the same period was $50 million, also reflecting a 7% year-over-year growth [5] - Capital expenditures for Q1 were $27 million, with a full-year CapEx forecast of $75 million to $80 million [19][20] Business Line Data and Key Metrics Changes - Revenue growth was particularly strong in Illinois and Montana, with year-over-year increases of 48% in both states [5][6] - Revenue per location in core states showed varied performance: Illinois at $885 per day (up 2.9%), Montana at $610 per day (up 2.7%), and Nevada at $802 per day (down 5.3%) [18] Market Data and Key Metrics Changes - Nebraska and Georgia experienced strong double-digit revenue growth, albeit from a smaller base [6] - The company has integrated operations in Louisiana, adding 96 locations and 614 terminals, which is expected to drive future revenue growth [7][8] Company Strategy and Development Direction - The company continues to focus on a decentralized gaming model, which allows for flexibility and efficient capital allocation based on local demand trends [9][10] - The acquisition of Kucan Gaming is expected to enhance the company's southeastern market presence and operational synergies [6][8] - The opening of Fairmont Park Casino is seen as a significant growth driver, with plans for further development in the future [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to scale proprietary products and services across its national footprint, enhancing financial performance and free cash flow [10][21] - The company remains optimistic about consumer demand and does not anticipate significant impacts from tariffs on its existing business [27][28] Other Important Information - The company announced the departure of CFO Matt Ellis, with Mark Phelan stepping in as acting CFO [14][15] - The company is committed to returning capital to shareholders through share repurchases, having repurchased 1 million shares at an average price of $10.34 per share [20] Q&A Session Summary Question: Impact of tariffs on growth and CapEx - Management indicated that most CapEx prices are locked in, minimizing the impact of tariffs on existing business [27][28] Question: Weather impact on performance - Weather was reported as a neutral factor, with no significant negative impact on consumer behavior [30][31] Question: Strategy for underperforming locations - The company continues to prune underperforming locations to optimize profitability and reallocate resources to better-performing areas [35][36] Question: Update on Louisiana's performance - Early indications from Louisiana are positive, with ongoing remodeling and optimization efforts expected to enhance performance [38][39] Question: Timing and next steps for Phase two of Fairmont - Phase two will be informed by the operational performance of Phase one, with clarity expected after the racing season ends in October [47] Question: CapEx expectations for 2025 - The company reiterated its CapEx expectations of $75 million to $80 million for 2025, with a return to normalized levels of $40 million to $45 million thereafter [50][51]

Financial Data and Key Metrics Changes - The company reported total revenue of $344 million for Q1 2025, marking a 7% year-over-year increase, and adjusted EBITDA of $50 million, also a 7% increase year-over-year [5][15] - As of March 31, the company had 27,180 terminals across 4,391 locations, reflecting year-over-year increases of 4.4% and 2.9% respectively [15] Business Line Data and Key Metrics Changes - Revenue growth was particularly strong in Illinois and Montana, with year-over-year increases of 48% in Illinois and 48% in Montana [6] - Revenue per location in core states showed varied performance: Illinois at $885 per day (up 2.9%), Montana at $610 per day (up 2.7%), Nevada at $802 per day (down 5.3%), Louisiana at $972 per day, Nebraska at $263 per day (up 12.9%), and Georgia at $145 per day (up 59.3%) [16] Market Data and Key Metrics Changes - Nebraska and Georgia continued to show strong double-digit revenue growth, while Nevada experienced a slight revenue decline due to the loss of a key customer [6] - The company has completed the integration of operations in Louisiana, which is expected to generate revenue growth opportunities [6] Company Strategy and Development Direction - The company aims to drive further synergies and performance improvements through the integration of acquired operations and the rollout of proprietary products across its national footprint [7][9] - The decentralized gaming model allows the company to efficiently allocate capital based on local demand trends, differentiating it from larger operators [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued strength of consumer demand and the company's ability to scale operations effectively [25][29] - The company remains focused on generating organic revenue growth with expanding margins and improved free cash flow [19] Other Important Information - The Fairmont Park Casino opened on April 18, 2025, marking a significant milestone for the company [10] - The company announced the departure of CFO Matt Ellis, with Mark Phelan stepping in as acting CFO [13][14] Q&A Session Summary Question: Impact of tariffs on growth and CapEx - Management indicated that most CapEx for the year has locked in prices, minimizing tariff impacts, and noted strong consumer demand [24][25] Question: Weather impact on performance - Weather was reported as a neutral factor, with no significant negative impact on consumer behavior [28][29] Question: Strategy for underperforming locations - The company continues to prune underperforming locations to optimize profitability and reallocate assets to better-performing situations [32][33] Question: Update on Louisiana's performance - Early trends in Louisiana are positive, with ongoing remodeling and optimization efforts expected to enhance performance [35][36] Question: Timing and next steps for Fairmont Phase two - Phase two will be informed by the operational performance of Phase one, with clarity expected after the racing season ends in October [45] Question: CapEx expectations for 2025 - The company reiterated its CapEx forecast of $75 million to $80 million for 2025, with expectations of returning to normalized levels of $40 million to $45 million thereafter [48][49]

Q1 2025 Financial Highlights - Accel achieved record revenues of $324 million in Q1 2025, a 7% increase compared to $302 million in Q1 2024[17, 24] - Net income for Q1 2025 was $15 million, a 97% increase compared to $7 million in Q1 2024[17, 32] - Adjusted EBITDA for Q1 2025 reached $50 million, a 7% increase compared to $46 million in Q1 2024[17, 22, 24] - Capital expenditures (CapEx) increased to $27 million in Q1 2025, a 30% increase compared to $21 million in Q1 2024[25] Operational Performance - As of March 31, 2025, Accel operated 27,180 gaming terminals across 4,391 locations in multiple states[9] - The number of locations increased by 3% from 4,267 in Q1 2024 to 4,391 in Q1 2025[25] - The number of terminals increased by 4% from 26,029 in Q1 2024 to 27,180 in Q1 2025[25] - Net Debt was $309 million as of March 31, 2025[11] Capital Allocation - Accel repurchased $10 million of its Class A-1 Common Stock in Q1 2025, bringing the total repurchased to $154 million since the program's inception in November 2021[17] Expansion and New Ventures - Casino and racing operations commenced at Fairmount Park Casino & Racing in April 2025[17]

Financial Performance - Net revenues for Q1 2025 increased by 7.3% to $323.912 million, compared to $301.817 million in Q1 2024[143] - Net gaming revenue rose by 4.8% to $301.951 million, while amusement revenue decreased by 3.6% to $5.908 million[143] - Manufacturing revenue surged by 74.6% to $3.858 million, and ATM fees and other revenues increased by 128.3% to $12.195 million[143] - Total operating expenses grew by 7.9% to $297.960 million, with cost of revenue increasing by 5.9% to $221.472 million[143] - Net income for Q1 2025 was $14.613 million, a significant increase of 97.0% from $7.416 million in Q1 2024[143] - Adjusted EBITDA for Q1 2025 was $49.5 million, up 7.1% from $46.2 million in Q1 2024, attributed to an increase in locations and gaming terminals[165] - Net income for Q1 2025 was $14.6 million, a 97.0% increase from $7.4 million in Q1 2024[165] Taxation - The effective tax rate for income tax expense was approximately 25.4%, with income tax expense rising to $4.993 million[143] - The effective tax rate for Q1 2025 was 25.5%, down from 39.1% in Q1 2024[153] - The tax on net gaming revenue in Illinois increased from 34% to 35% effective July 1, 2024[134] Operational Expansion - The company opened Fairmount Park - Casino & Racing in April 2025, enhancing its market presence in Illinois[125] - The number of gaming terminals increased by 4.4% to 27,180 in Q1 2025, compared to 26,029 in Q1 2024[158] - The number of locations grew by 2.9% to 4,391 in Q1 2025, up from 4,267 in Q1 2024[155] - Location hold-per-day in Illinois increased by 2.9% to $885 in Q1 2025, compared to $860 in Q1 2024[160] Cash Flow and Investments - For the three months ended March 31, 2025, net cash provided by operating activities was $44.8 million, an increase of $16.0 million or 55.7% compared to the prior-year period[173] - Net cash used in investing activities for the same period was $26.2 million, reflecting a slight increase of $0.3 million or 1.1% compared to the prior-year period[175] - Net cash used in financing activities was $27.9 million, an increase of $17.4 million or 164.9% compared to the prior-year period, primarily due to higher net repayments on debt and stock repurchases[176] Debt and Interest - Interest expense for Q1 2025 was $8.685 million, reflecting a slight increase of 0.3% compared to the previous year[143] - The company recognized an unrealized loss of $1.1 million on the change in fair value of interest rate caplets for the three months ended March 31, 2025, compared to an unrealized gain of $1.1 million for the same period in 2024[172] - Interest income on the caplets was $1.8 million for the three months ended March 31, 2025, down from $2.6 million in the prior-year period[172] - As of March 31, 2025, borrowings under the senior secured credit facility amounted to $582.5 million, with a potential annual impact of $2.8 million on future earnings if interest rates increase by 1.0%[181] Capital Expenditures - Capital expenditures are anticipated to be approximately $75–80 million in 2025, with specific allocations of $31–32 million for Fairmount, $5–7 million for Louisiana, and $39–41 million for other expenditures[175] Seasonal Trends - Seasonal trends affect the company's operations, with gross revenue per machine typically lower in summer and higher between February and April[179] Compliance and Accounting Policies - The company remained in compliance with all debt covenants under the Credit Agreement as of March 31, 2025[170] - The company applies the same critical accounting policies as described in its Annual Report on Form 10-K for the year ended December 31, 2024[178]

Financial Performance - Record revenues of $323.9 million in Q1 2025, an increase of 7.3% compared to Q1 2024[4] - Net income of $14.6 million for Q1 2025, an increase of 97.0% compared to Q1 2024[4] - Adjusted EBITDA of $49.5 million for Q1 2025, an increase of 7.1% compared to Q1 2024[4] - Net revenues for Q1 2025 reached $323.9 million, a 7.4% increase from $301.8 million in Q1 2024[23] - Net income attributable to Accel Entertainment, Inc. was $14.6 million, compared to $7.4 million in the same period last year, representing a 97.0% increase[23] - The company reported an operating income of $26.0 million for Q1 2025, compared to $25.6 million in Q1 2024, a 1.5% increase[23] - Basic earnings per share increased to $0.17 in Q1 2025, up from $0.09 in Q1 2024, reflecting an 88.9% growth[23] Operational Metrics - Ended Q1 2025 with 4,391 locations, an increase of 2.9% compared to Q1 2024[4] - Ended Q1 2025 with 27,180 gaming terminals, an increase of 4.4% compared to Q1 2024[4] - Location hold-per-day in Illinois increased by 2.9% to $885[8] Expenses and Liabilities - Total operating expenses increased to $298.0 million in Q1 2025, up from $276.3 million in Q1 2024, indicating a 7.8% rise[23] - Accel Entertainment's total current liabilities rose to $130.8 million from $118.4 million at the end of 2024, a 10.5% increase[25] Cash and Assets - Cash and cash equivalents as of March 31, 2025, were $271.9 million, slightly down from $281.3 million at the end of 2024[25] - Total assets decreased to $1.05 billion from $1.05 billion at the end of 2024, showing a marginal decline[25] Strategic Initiatives - Commenced casino and racing operations at Fairmount Park Casino & Racing in April 2025[4] - The company continues to focus on expanding into casino operations and horse racing, which are part of its strategic growth initiatives[17] - The company expects to maintain attractive low-teens returns on capital and generate growing free cash flow[3] Shareholder Actions - Repurchased 1 million shares of Accel Class A-1 common stock in Q1 2025 for approximately $10.2 million[4]

Group 1 - The article discusses the expertise of a seasoned equity analyst and accountant specializing in restaurant stocks, highlighting the analytical models and valuation techniques employed to provide insights and strategies for investors [1] - The coverage of the company includes various segments of the restaurant industry such as QSR, fast casual, casual dining, fine dining, and family dining, indicating a comprehensive approach to market analysis [1] - The analyst's engagement in academic and journalistic initiatives aims to promote financial education and accessibility of complex financial topics to a broader audience [1]

Core Insights - Vivic Corp. has secured a significant order from ACEL Power Inc. for three electric yachts, valued at approximately US$2.2 million, to be paid in installments based on milestone achievements [1][2][3] - The contract is expected to enhance Vivic's position in the high-end electric yacht market and reflects ACEL's recognition of Vivic's capabilities [3][4] - The partnership with ACEL is aimed at developing new energy-electric yachts, leveraging the complementary technical expertise of both companies to foster innovation in the industry [3][4] Company Overview - Vivic Corp. is focused on becoming a global leader in the yacht industry, emphasizing innovative technology, product diversity, and sustainable development [5][6] - The company offers a wide range of products, including all-electric and traditional power yachts, and provides comprehensive pre-sales and after-sales services [5][6] - Vivic is committed to environmental protection and social responsibility, striving for sustainable development while catering to various client needs [5][6]