Video gaming terminal provider Accel Entertainment on Wednesday said its $140 million deal for based Century Gaming Technologies remains on track to close by the end of this month and said its first-quarter earnings surged from a year ago to top Wall Street forecasts. Revenue rose but missed forecasts.
In a 10-Q statement filed with the Securities and Exchange Commission, Burr Ridge, Illinois-based Accel said its net income was $15.8 million, or 17 cents per diluted share, for the three months ended March 31, up from $1.5 million, or 2 cents per share, a year earlier.
Analysts surveyed by Seeking Alpha had, on average, forecast 15 cents in earnings per share. Accel shares rose 13 cents, or 1.06% Wednesday to close at $12.35 on the Nasdaq. The share spiked after hours, adding 50 cents, or 4.05% to settle at $12.85.
Revenue rose 15.5% to $196.9 million from $147.1 million. Seeking Alpha analysts had forecast earnings of $197.8 million.
Accel didn’t explain what caused the earnings surge, but did say machine locations rose 4% from a year earlier to 2,565 and video gaming terminals rose 7% from a year earlier to 13,663.
Accel Chief Executive Officer Andy Rubenstein said the first-quarter results reflected customer loyalty and business strength.
“Looking ahead, we remain focused on closing the Century acquisition as we bring together the best practices of both our companies,” he said. and we continue to see compelling opportunities for additional expansion.”
Rubenstein didn’t specify what Accel might acquire or when it might happen.
Adjusted earnings before interest, taxes, depreciation and amortization, a cash-flow measure that excludes one-time costs, rose 36.2% to $35.2 million from $25.8 million.
Accounting for the acquisition of Billings, Montana-based Century Gaming Technologies, announced in March 2021, Accel Entertainment has forecast it would have 23,000 to 25,000 video gambling terminals by the end of 2022, up from 13,639 for 2021 (which was an 11% increase from 2020.) Accel has forecast that the combined company would end 2022 with an estimated 3,700 to 3,800 locations, up from 2,584 locations in 2021 (a 6% jump from 2020.)
During the quarter, Accel promoted Mathew Ellis to chief financial officer. Ellis, who had been Accel’s senior vice president of corporate strategy, took the post May 1, succeeding Brian Carroll, who announced last year that he’d retire. Carroll will remain with the company as an adviser until Dec. 31, 2023.
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