With its deal for Century Gaming closed, video gaming terminal provider Accel Entertainment issued pro forma revenue guidance for 2022 that included the deal and posted second-quarter earnings and revenue that topped Wall Street forecasts.
In a statement Thursday, Burr Ridge, Illinois-based Accel said it earned $22.5 million, or 24 cents per diluted share, for the three months ended June 30, up from net income of $12.4 million, or 13 cents per diluted share, a year earlier.
The latest result topped the 18-cents-per-share consensus estimate of analysts surveyed by Seeking Alpha.
Accel’s stock price rallied on the news, rising 41 cents, or 4.31%, to close at $9.92 on the Nasdaq Stock Market in regular trading Thursday. The shares rose 2 cents, or 0.2%, after hours to settle at $9.94.
Adjusted earnings before interest, taxes, depreciation, and amortization, a cash-flow measure that excludes one-time costs, fell 0.7% to $42.7 million from $43 million.
Accel’s second-quarter revenue rose 12.8% to $227.9 million from $202 million and topped the $222.1 million forecast of Seeking Alpha-polled analysts.
Accel closed its $124 million deal for Billings, Montana-based Century Gaming on June 1, adding 8,300 gaming terminals and more than 900 licensed locations across Montana and Nevada.
Factoring in Century’s operations, Accel, which installs, maintains, and operates video gaming terminals in restaurants, bars, taverns, convenience stores, liquor stores, truck stops, and grocery stores, issued pro forma estimates for year-end 2022, with 3,550 to 3,600 locations, 22,700 to 23,200 gaming terminals, and $1.07 billion to $1.13 billion in revenue.
Accel finished the second quarter with 22,128 terminals and 3,489 locations.
“Our performance continues to demonstrate the strength and resilience of our business model,” Accel Chief Executive Officer Andy Rubenstein said in a conference call with analysts and journalists. “We believe local businesses will continue to invest in their gaming due to the incremental profits they receive and players will continue to choose our local high-quality offering due to its convenience and appeal.”
During the quarter, Accel began operating in Nebraska, where Rubenstein said the company will focus on taverns and truck stops. On Aug. 1, Accel acquired amusement operator VVS for $9.5 million.
Rubenstein said Accel is evaluating “multiple opportunities” for mergers or acquisitions in Illinois, but named none. Rubenstein also said Accel is working to roll out the Georgia Lottery’s newly extended gift-card pilot program in its locations.
Accel said it bought back $25 million in stock, bringing its total past $55 million since the buyback program’s November start.
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