Accel (ACEL) Q4 Earnings & Revenues Beat Estimates, Up Y/Y

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]