Accel Entertainment(US:ACEL)2024-07-30 20:13Financial Performance - The company reported record revenues of $309.4 million for Q2 2024, reflecting a 5.7% increase from $292.6 million in Q2 2023[2] - Net income for Q2 2024 was $14.6 million, a significant increase of 46.1% compared to $10.0 million in Q2 2023[2] - Adjusted EBITDA reached a record $49.7 million for Q2 2024, up 6.5% from $46.6 million in Q2 2023[2] - Operating income for the three months ended June 30, 2024, was $22,683,000, down from $29,164,000 in the same period of 2023, indicating a decrease of 22.2%[23] - Net income for the three months ended June 30, 2024, was $14,586,000, compared to $9,983,000 for the same period in 2023, representing a significant increase of 46.4%[23] - Basic earnings per share for the three months ended June 30, 2024, were $0.17, up from $0.12 in the same period of 2023, marking a growth of 41.7%[23] - Total operating expenses increased to $286,730,000 for the three months ended June 30, 2024, from $263,483,000 in the same period of 2023, an increase of 8.8%[23] Growth and Expansion - Accel Entertainment ended Q2 2024 with 4,034 locations, a 4.7% increase compared to Q2 2023[1] - The total number of gaming terminals increased to 25,757, marking a 5.7% rise from 24,368 in Q2 2023[6] - Accel anticipates continued growth in gaming terminals and locations, with a focus on expanding into new jurisdictions[17] - The company announced the acquisition of Fairmount Holdings, expected to close in Q4 2024, enhancing its local gaming offerings[1] - The company is in the process of acquiring Fairmount Holdings, Inc., which may impact future operations and market presence[17] Debt and Liabilities - Net debt at the end of Q2 2024 was $311 million, a 9% increase from $284.8 million in Q2 2023[1] - Long-term liabilities increased to $635,505,000, compared to $604,839,000, indicating a rise of approximately 5.1%[26] - Total current liabilities decreased to $105,755,000 from $109,650,000, a reduction of about 3.6%[26] Assets and Equity - Total assets increased to $950,348,000 as of June 30, 2024, up from $912,893,000 at December 31, 2023, representing a growth of approximately 4.1%[26] - Total current assets rose to $322,201,000, compared to $312,594,000 at the end of 2023, marking an increase of about 3.0%[26] - Stockholders' equity increased to $209,088,000, up from $198,404,000, reflecting a growth of approximately 5.3%[26] - Cash and cash equivalents decreased slightly to $254,923,000 from $261,611,000, a decline of about 2.6%[26] - Accounts receivable, net increased to $15,149,000 from $13,467,000, showing a growth of about 12.5%[26] - Accumulated earnings rose significantly to $121,486,000 from $99,484,000, an increase of approximately 22.1%[26] - Property and equipment, net increased to $276,477,000 from $260,813,000, reflecting a growth of approximately 6.0%[26] - Goodwill remained relatively stable, increasing slightly to $101,859,000 from $101,554,000[26] Market Performance - The Illinois market generated $227.1 million in net revenues for Q2 2024, an increase of 5.3% from $215.9 million in Q2 2023[4] - Net revenues for the three months ended June 30, 2024, reached $309,413,000, a 5.3% increase from $292,647,000 in the same period of 2023[23] - Net gaming revenues were $293,240,000 for the three months ended June 30, 2024, compared to $277,551,000 for the same period in 2023, reflecting a growth of 5.6%[23] Operational Insights - Adjusted EBITDA is a key metric for monitoring ongoing core operations, enhancing understanding of profitability trends[21] - The company reported a decrease in operating income to $22.7 million for Q2 2024, down from $29.2 million in Q2 2023[2] - Accel's dependence on relationships with key manufacturers and developers is critical for obtaining gaming terminals and related supplies[19]