Accel Entertainment ((ACEL)) has held its Q1 earnings call. Read on for the main highlights of the call.
Accel Entertainment’s latest earnings call painted a positive picture of the company’s performance and future prospects. Despite some challenges, such as a revenue decline in Nevada and a key leadership change, the overall sentiment was optimistic. The company celebrated record revenue and successful expansions, suggesting a promising outlook.
Record-Breaking Quarterly Revenue
Accel Entertainment reported a remarkable milestone with total revenue reaching $344 million for Q1 2025. This achievement marks the company’s highest quarterly revenue since going public, representing a 7% year-over-year growth. This record-breaking performance underscores the company’s robust market presence and strategic initiatives.
Strong Adjusted EBITDA Growth
The company also highlighted a strong adjusted EBITDA growth, achieving $50 million, which reflects a 7% year-over-year increase. This growth in EBITDA demonstrates Accel’s effective cost management and operational efficiency, contributing to its overall financial health.
Successful Fairmount Park Casino Opening
A significant highlight of the earnings call was the successful opening of Fairmount Park Casino on April 18. The project was completed ahead of schedule and under budget, marking a milestone as the first racino in Illinois. This development is expected to contribute positively to the company’s growth trajectory.
Growth in Key Markets
Accel Entertainment reported revenue growth in key markets, with Illinois and Montana seeing increases of 4% and 8% year-over-year, respectively. Additionally, Nebraska and Georgia experienced strong double-digit revenue growth, with Georgia’s revenue per day increasing by an impressive 59.3% year-over-year.
Strategic Expansion and Acquisition
The company completed the integration of recently acquired operations in Louisiana, adding 96 locations and 614 terminals. This strategic expansion is anticipated to drive future synergies and performance improvements, further solidifying Accel’s market position.
Revenue Decline in Nevada
Despite overall positive performance, Nevada experienced a small revenue decline in the first quarter due to the loss of a key customer following an ownership change. The revenue per day in Nevada decreased by 5.3% year-over-year, highlighting a challenge the company aims to address.
CFO Departure
The earnings call also addressed a significant leadership change, with CFO Matt Ellis announcing his departure effective May 9. This creates a temporary leadership gap as the company searches for a permanent replacement, but Accel remains confident in its leadership team to navigate this transition.
Forward-Looking Guidance
Looking ahead, Accel Entertainment provided forward-looking guidance with capital expenditures for 2025 projected to be between $75 million and $80 million. The company expects future normalized annual CapEx to return to $40 million to $45 million. Accel emphasized its strategy of optimizing locations and leveraging its distributed gaming model to drive growth and improve free cash flow.
In summary, Accel Entertainment’s earnings call reflected a strong and positive sentiment, with record-breaking revenue and strategic expansions leading the way. Despite some challenges, the company’s robust performance and forward-looking strategies suggest a bright future ahead.