Accel Entertainment, Inc. · NYSE:ACEL
Accel Entertainment — Q1 2020 Earnings Presentation
12 slides from Accel Entertainment's earnings presentation, May 11, 2020
Slide 1: Accel Entertainment First Quarter 2020 Earnings Presentation
Accel Entertainment First Quarter 2020 Earnings Presentation May 2020 1
Slide 2: Important Information: Forward-Looking Statements
Important Information Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical
Slide 3: Introduction to Accel
Introduction to Accel High Quality Service Company in Gaming Vertical Strong Track Record of Growth Annual Adjusted EBITDA(1) $mm $80 59% $64 CAGR $47 $33 $26 Accel owns and operates more than 11,000 Video Gaming $19 Terminals (“VGTs”) across 2,353 third-party licensed $5 establishments in Illinois.
Slide 4: Q1 2020 Results
Q1 2020 Results Q1 2019 Q1 2020 % Change Locations 1,740 2,353 +35% VGTs 7,935 11,164 +41% Revenue $97M $105M +8% Comparable like-for-like period growth of open gaming Gaming operations Revenue: $78M $101M +29% Jan 1 - Mar 16 Adj. $20M $15M (25%) EBITDA(1) 1. Adjusted EBITDA is a non-GAAP financial
Slide 5: COVID-19 Update
COVID-19 Update • In response to the COVID-19 pandemic, the Illinois Gaming Board shut down all VGTs across the state of Illinois starting at 9PM on Monday March 16th • On March 20th, Illinois’ Governor instituted a stay at home order to limit the spread of COVID-19. The stay at home order, and susp
Slide 6: Liquidity Update
Liquidity Update • Immediately following the suspension of video gaming activities on March 16th, Accel began expedited cash collections from our location partners. All field cash was collected within 72 hours • On March 18th Accel drew down $65 million on its delayed-draw term loan • As of March 31
Slide 7: Accel Quarterly KPIs
Accel Quarterly KPIs End of Period Live Locations / VGTs (#) Hold per Day(1) ($) VGTs 11,164 VGTs Ex. GRJ 10,346 10,499 Ex. GRJ Locations $134 $139 $132 $126 $131 Locations Ex. GRJ 9,244 $124 8,448 8,591 w/GRJ 8,082 7,935 2,290 2,312 2,353 1,740 1,762 1,838 1,860 1,904 Q1 Q2 Q3 Q4 1Q19 2Q19 3Q19 4Q1
Slide 8: Regulatory Update
Regulatory Update • Illinois VGT operations have been suspended since March 16th due to COVID-19 related restrictions. Current restrictions are in place until May 30th • The vast majority of our location partners are eligible for PPP loans under CARES act, and based off a COVID-19 survey of our loca
Slide 9: Accel has a Straightforward Value Creation Plan
Accel has a Straightforward Value Creation Plan 2019 Accomplishments 2020 In-Progress Execute on Benefit from IL Invest for Backlog to Gaming Sustained Use Strong Deliver Growth Expansion Growth Balance Sheet New Locations 6th VGT per Accretive M&A Accretive M&A Location Competitor New States Share
Slide 10: Historical Financial Summary
Historical Financial Summary Twelve Months Ended Three Months Ended $ in millions December 31, March 31, YoY 2016 2017 2018 2019 2019 2020 Growth # Locations 1,162 1,442 1,686 2,312 1,740 2,353 35% # VGTs 4,947 6,439 7,649 10,499 7,935 11,164 41% Net Video Gaming Revenue 168 240 322 411 94 102 8% Ot
Slide 11: Accel Balance Sheet
Accel Balance Sheet December 31, March 31, $ in millions 2019 2020 Assets Current Assets: Cash and Cash Equivalents $125 $167 Investment in convertible notes (current) $11 $14 Other current assets $15 $14 Total current assets $151 $195 Property and equipment, net $119 $125 Route and customer acquisi
Slide 12: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation Twelve Months Ended Three Months Ended $ in millions December 31, March 31, Standalone Accel 2016 2017 2018 2019 2019 2020 Reported Net Income 5 8 11 (6) 4 (2) (+) Amorization of Op Routes 6 10 15 18 4 6 (+) Stock Based Comp(1) 1 1 0 2 0 1 (+) Other Expenses (0) 1 3 2