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]

Core Viewpoint - Mattel, Inc. is expected to report a decline in revenues and earnings for the first quarter of 2025, primarily due to underperformance in the Barbie brand and adverse macroeconomic conditions [1][3][5]. Financial Performance - In the last quarter, Mattel's earnings exceeded the Zacks Consensus Estimate by 52.2%, while revenues fell short by 0.5%. Year-over-year, earnings and revenues increased by 20.7% and 2%, respectively [1]. - For the upcoming quarter, the Zacks Consensus Estimate indicates a loss of 11 cents per share, representing a 120% decline year-over-year. Revenue is projected at $799.7 million, down 1.2% from $809.5 million a year ago [2]. Brand Performance - The decline in revenues is attributed to weak performance from the Barbie brand in both North America and international markets, despite improvements in the Hot Wheels and Fisher-Price brands [3]. - Worldwide gross billings for the top three Power Brands are estimated at $165 million for Barbie (down 7.3%), $95 million for Fisher-Price (up 2.2%), and $263 million for Hot Wheels (up 1.9%) [4]. Cost and Expenses - The company's bottom line is expected to be negatively impacted by increased selling and administrative expenses, particularly due to higher employee compensation and elevated advertising costs [4]. Market Conditions - Ongoing macroeconomic challenges, including suppressed discretionary spending and inflationary pressures, are likely to hinder the company's performance despite its focus on cost control and diversified entertainment offerings [5]. Earnings Prediction Model - The Zacks model suggests that Mattel is unlikely to achieve an earnings beat this quarter, with an Earnings ESP of -4.76% and a Zacks Rank of 4 (Sell) [6].

Group 1 - Accel Entertainment (ACEL) has experienced a significant decline of 10.6% over the past four weeks, but it is now in oversold territory, indicating a potential trend reversal [1] - The Relative Strength Index (RSI) for ACEL is currently at 28.82, suggesting that the heavy selling pressure may be exhausting itself [5] - There is strong consensus among Wall Street analysts that ACEL will report better earnings than previously predicted, with a 23.7% increase in the consensus EPS estimate over the last 30 days [6] Group 2 - ACEL holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [7]

Company Overview - Golden Entertainment, Inc. operates a diversified entertainment platform in the United States, with four segments: Nevada Casino Resorts, Nevada Locals Casinos, Nevada Taverns, and Distributed Gaming [2] - The company also manages casinos, casino resorts, taverns, and slot machines in third-party non-casino locations [2] Financial Performance - Golden Entertainment is currently rated as Zacks Rank 5 (Strong Sell) due to three analysts cutting their earnings estimates for the current and next year [3] - The Zacks Consensus Estimates for the current year have decreased from 85 cents to 61 cents, indicating a forecasted earnings contraction of 64% this year [3] - For the next year, earnings estimates have been revised down from $1.05 to 88 cents, but there is an expected return to growth at 44% [3] Industry Context - The gaming industry is ranked in the top 35% of the Zacks Industry Rank, indicating a relatively strong position within the market [4] - There are several companies within the gaming industry that are performing well, including Flutter Entertainment (Zacks Rank 1, Strong Buy) and Accel Entertainment (Zacks Rank 2, Buy) [4]

Regulatory Risks - The company is subject to strict government regulations that may limit operations and expose it to fines or penalties [110] - The company is involved in an administrative hearing process related to alleged violations of the Video Gaming Act, which could affect its ability to retain or obtain licenses [113] - Changes in gaming or horse racing legislation could hinder operations and increase compliance costs, potentially impacting profitability [114] - The company is monitoring regulatory developments that could impact the expansion of gaming operations [125] - Holders of Class A-1 common stock are subject to gaming regulations, which may require disclosure and qualification by gaming authorities [150] - Changes in gaming laws and regulations could impact the company's operations and market position [153] Financial Condition and Debt - As of December 31, 2024, the company had total indebtedness of $597.4 million, all borrowed under the Credit Agreement, with approximately $143.5 million of availability [134] - The company is required to maintain 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 [141] - The company may not have sufficient cash flows from operating activities to service all indebtedness and may need to take actions such as refinancing or selling assets [136] - As of December 31, 2024, borrowings under the senior secured credit facility amounted to $597.4 million [274] - A 1.0% increase in underlying interest rates would result in an annual increase in interest expense of approximately $3.0 million, assuming the balance remains at $597.4 million [274] - The company has hedged the variability of cash flows attributable to changes in the 1-month LIBOR/SOFR interest rate on the first $300 million of the term loan through a series of 48 deferred premium caplets [274] Operational Risks - The company faces risks from natural disasters that could disrupt operations and impact financial condition [109] - The company may incur significant expenses related to product defects or claims from location partners, affecting profitability [115] - Ongoing litigation could result in substantial costs and distract management from core operations [117] - The company’s financial results depend on estimates and judgments that, if incorrect, could adversely affect operating results [118] - Security breaches or disruptions could compromise sensitive information and expose the company to liability [126] - The company faces risks related to third-party service providers, such as Microsoft and Salesforce, which have experienced cybersecurity incidents that could adversely affect operations [129] Market Risks - The company is exposed to interest rate risk as a significant portion of borrowings are at variable rates, which could negatively impact cash flows and financial condition if rates increase [135] - The market price and trading volume of Class A-1 common stock may be volatile and could decline significantly due to various factors [152] - Future issuances of debt or equity securities may adversely affect the market price of existing securities and could be dilutive to current stockholders [156] - The company may face substantial costs and management distraction from potential securities class-action litigation following periods of market volatility [155] - The company is exposed to market risk primarily due to fluctuations in interest rates [273] - The sale or perception of a large number of securities could depress the market price of Class A-1 common stock [162] Strategic Risks - The company’s success relies on the protection of intellectual property, which may be difficult to enforce [120] - 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 [131] - The company’s ability to pursue strategic acquisitions or market expansions may be restricted if adequate liquidity is not maintained [132] - The company may not realize anticipated returns on new or renewed contracts due to factors like lower retail sales or higher operating expenses [132]

Financial Data and Key Metrics Changes - For Q4 2024, total revenue reached $318 million, a year-over-year increase of 6.9%, and adjusted EBITDA was $47 million, up 6.2% year-over-year [23] - For the full year, total revenue was $1.2 billion, reflecting a 5.2% increase, while adjusted EBITDA increased by 4.2% to $189 million [23] - As of December 31, 2024, the company had 26,346 terminals across 4,117 locations, representing year-over-year increases of 5% and 3.9%, respectively [23] Business Line Data and Key Metrics Changes - In Illinois, revenue per location was $868 per day, an increase of 3.5% year-over-year, while Montana saw $614 per day, up 4.6% year-over-year [23] - Nebraska reported $253 per day, a 5.9% increase year-over-year, while Louisiana had $979 per day [23] - The company strategically closed 54 underperforming locations in 2024 to enhance operational efficiency [10] Market Data and Key Metrics Changes - Illinois experienced market-wide GGR growth of 4% year-over-year, outperforming local casinos which were down 3% [8] - The company is focusing on refining its sales and operating model to enhance performance across its footprint [11] Company Strategy and Development Direction - The company aims for low single-digit revenue growth, mid-single-digit EBITDA growth, and high single-digit free cash flow growth in its core route-based business model [16] - Future growth levers include organic growth in Illinois, Nebraska, and Georgia, and potential acquisitions in the fragmented local gaming market [17] - The company is also preparing for the rollout of ticket in, ticket out (TITO) technology in 2025 to enhance player experience [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of their business model and the demand for local gaming offerings [23] - The company is optimistic about growth opportunities in Louisiana, particularly in the fragmented truck stop and bar markets [59] - Management is continuously monitoring regulatory changes and believes iGaming legislation may not be prioritized in established route gaming markets like Illinois [55] Other Important Information - The company repurchased 361,000 shares at an average price of $11.14 per share during the quarter, totaling $4 million [26] - The board authorized replenishing the share repurchase program to $200 million, indicating a strong balance sheet and low leverage [27] Q&A Session Summary Question: Contributions from Louisiana and Fairmont to the model - Management indicated that Louisiana is expected to contribute $6 million of EBITDA for the full year 2025, with Fairmont projected to generate $25 million of EBITDA once fully operational [34] Question: Trends in Illinois and other markets - Management noted favorable weather conditions in January contributed to strong performance, while February saw less favorable conditions [38] Question: Pruning of Illinois units and future growth - Management clarified that pruning underperforming locations is an ongoing process, with expectations for improved profitability in the future [44] Question: Expansion in e-pull tabs market - Management acknowledged the potential of the e-pull tabs market but emphasized the need for partnerships to effectively participate [49] Question: Legislative changes and iGaming prospects - Management stated that while iGaming legislation is being monitored, it is unlikely to gain traction in established route gaming markets like Illinois [55] Question: Growth opportunities in Louisiana - Management highlighted the fragmented nature of the Louisiana market and the potential for organic growth through improvements in truck stops and bars [61]

Core Viewpoint - Accel Entertainment reported quarterly earnings of $0.19 per share, missing the Zacks Consensus Estimate of $0.21 per share, and showing a decline from $0.26 per share a year ago, indicating an earnings surprise of -9.52% [1] Group 1: Earnings Performance - The company posted revenues of $317.52 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.81%, compared to $297.07 million in the same quarter last year [2] - Over the last four quarters, Accel Entertainment has exceeded consensus EPS estimates three times [2] Group 2: Stock Performance - Accel Entertainment shares have increased approximately 11.1% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] Group 3: Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.21 on revenues of $312.4 million, and for the current fiscal year, it is $0.85 on revenues of $1.26 billion [7] - The estimate revisions trend for Accel Entertainment is currently favorable, leading to a Zacks Rank 1 (Strong Buy) for the stock, suggesting expected outperformance in the near future [6] Group 4: Industry Context - The Gaming industry, to which Accel Entertainment belongs, is currently ranked in the top 22% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]