The 2022 acquisition of Century Gaming continued to echo throughout Accel Entertainment’s quarterly-earnings tables. The company celebrated big year-to-year increases in video-gaming terminals (VGT) and locations and posted a first-quarter revenue increase.
Earnings per share fell year-to-year and missed Wall Street forecasts, though revenue topped them.
In a statement, the Burr Ridge, Illinois-based VGT provider said net income was $9.2 million, or 11 cents per diluted share, for the three months ended March 31, down from $15.8 million, or 17 cents per share, a year earlier.
The latest result missed the 16-cents-per-share consensus estimate of analysts surveyed by Seeking Alpha.
Adjusted earnings before interest, taxes, depreciation, and amortization, a cash-flow measure that excludes one-time costs, rose 31% to $46.1 million from $35.2 million. A 9% increase in Illinois same-stores sales boosted that EBITDA total.
Revenue rose 49% to $293.2 million from $196.9 million and topped the $269.5 million forecast of Seeking Alpha-polled analysts.
In the statement, Chief Executive Officer Andy Rubenstein said his company was succeeding even with the macroeconomic uncertainty.
“Our record-breaking performance this quarter is a direct testament to the strength of our business and execution of our growth strategy,” he said.
Accel, which installs, operates, and maintains VGT in restaurants, bars, taverns, convenience stores, liquor stores, truck stops, and grocery stores, ended the first quarter with 41% more locations (3,628) and 72% more terminals (23,497) than a year earlier. The company’s $124 million deal for Century, which closed June 1, boosted both totals.
In the first quarter, Accel bought back about $4 million in Class A-1 common stock. Accel ended the first quarter with $309 million of net debt, up 111% from a year earlier. The company said $160 million in second-quarter-2022 credit-facility borrowings to finance the Century acquisition widened the debt.
Accel shares fell 22 cents, or 2.51%, Wednesday, to close at $8.54 on the Nasdaq Stock Market. The shares faded further after hours, slipping 28 cents, or 3.28%, to $8.26.
Accel’s stock price has risen 11% since January 1.
