Video-gambling-terminal provider Accel Entertainment closed two acquisitions during the third quarter and posted earnings per share that rose from a year ago, topping Wall Street forecasts. Revenue rose, too, but missed forecasts.
In a statement, the Burr Ridge, Illinois-based company, which operates in Illinois, Montana, and Nevada, said its net income was $22.4 million, or 25 cents per diluted share, for the three months ended Sept. 30, up from net income of $10.8 million, or 11 cents per diluted share, a year earlier.
The latest result topped the 18-cents-per-share forecasts of analysts polled by Seeking Alpha.
Earnings before interest, taxes, depreciation, and amortization, a cash-flow measure that excludes one-time costs, rose 9.3% to $41.1 million from $37.6 million.
Revenue rose 38.1% to $267 million from $193.4 million, but missed the $270 million forecast of Seeking Alpha-polled analysts.
“Our solid performance, despite the current inflationary pressures, further demonstrates the strength and resilience of our locally focused business model,” Accel Entertainment Chief Executive Officer Andy Rubenstein said. “We expanded our footprint in Nebraska and continue to evaluate multiple opportunities across the country, while returning capital to our shareholders.”
During the quarter, Accel made two deals, acquiring the amusement assets of Nebraska operator VVS Inc. for $9.5 million on Aug. 1 and River City Amusement Co., an amusement operator in Nebraska and Iowa, for $2.8 million.
Accel said its total locations rose in the third quarter to 37.9% to 3,517 from 2,549. Terminal count rose 67.6% to 22,429 from 13,384.
On Wednesday, Deutsche Bank and Macquarie lowered their price targets for Accel Entertainment to $13 from $14. Deutsche Bank rates Accel “buy”; Macquarie rates it “outperform.”
Also Wednesday in a filing with the Securities and Exchange Commission, Accel said it named Christie Kozlik chief accounting officer. She’d been a vice president at insurer Assurant.
During the quarter, Accel bought back $22.5 million of Class A-1 common stock. The company issued revenue guidance of $960 million to $990 million and adjusted EBIDTA of $160 million to $165 million for fiscal 2022.
Accel Entertainment shares fell 82 cents or 8.74% to close at $8.56 on the Nasdaq Stock Market. The shares rose 1 cent, or 0.12%, to settle at $8.56. The shares have dipped 34.3% in 2022.
