Accel Entertainment, Inc. · NYSE:ACEL
Accel Entertainment — Investor Presentation (December 2019)
18 slides from Accel Entertainment's investor presentation, Dec 11, 2019
Slide 1: Introduction to Accel Entertainment
December 2019 Introduction to Accel Entertainment Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements As used in this presentation, “Accel” refers to Accel Entertainment, Inc., “Pace” refers to TPG Pace Holdings Corp. and the “Business Combination” refers to the combination of Pace with Accel as consummated on November 20, 2019. This presentation includes “forward-looking
Slide 3: Introduction to Accel
Introduction to Accel High Quality Service Company in Gaming Vertical Contracted, Recurring Revenue Strong Track Record of Growth Disciplined Stewards of Capital Accel owns and operates more than 10,300 Video Gaming Terminals across 2,290 third-party licensed establishments in Illinois. Accel operat
Slide 4: Why Invest in Accel Entertainment?
Why Invest in Accel Entertainment? Delivering Industry Leading Growth Favorable tailwinds expect to continue with significant backlog of locations yet to go-live Unique Asset Light Business Model Contracted recurring revenues and best-in-class ROICs Multiple Ways to Create Value Organic expansion op
Slide 5: Gaming-as-a-Service Business Model
Licensed Establishments Gaming-as-a-Service Business Model 1. Some large truck stops are eligible to host up to 10 VGTs. Terminal operators may also sell and maintain other amusement machines or other devices 2. Newly legislated tax / revenue sharing enacted to begin July 1, 2020 vs. current tax rat
Slide 6: Gaming Has Been Resilient in Recessions
Gaming Has Been Resilient in Recessions Low-limit slots are resilient as consumers typically continue to engage in locally convenient, low cost forms of entertainment even in a recession Accel’s pipeline of signed locations provides a solid cycle buffer and as the economy weakens creates added incen
Slide 7: Favorable Industry Tailwinds for Continued Growth
Favorable Industry Tailwinds for Continued Growth Stable New License Issuance (IL)… …Drives New Location Openings… ... And Steady Illinois VGT Growth Accel continues to outpace market growth Accel % Total 19% 18% 26% 26% 28% Source: Illinois Gaming Board, Accel management, Scientific Games’ terminal
Slide 8: Growth Opportunities Both In and Out of Illinois
Growth Opportunities Both In and Out of Illinois Addition of 6th VGT at Each Licensed Establishment Legalization of VGTs in Chicago Potential Addition of Sports Betting Player Tracking / Loyalty Programs Other use of “tethered distribution” model Accel has numerous avenues available to pursue future
Slide 9: Why Choose Accel? – Pitch to Location Owners
Why Choose Accel? – Pitch to Location Owners Data & Analytics Service Culture Scale and Know-how Differentiated Relationship Manager Model (with incentives to drive same-store sales growth) In-house cash collection and treasury services 50-60 minute average response time with 92% first time fix rate
Slide 10: Accel is a Disciplined Buyer
Accel is a Disciplined Buyer Acquired locations typically improve performance as a result of Accel’s operating rigor Acquired Year: 2013 2014 2014 2014 2016 2017 2018 2018 # Locations Acquired 51 8 10 27 122 121 23 71 Total % Increase +68% +59% +58% +41% +13% +14% +4% +8% Acquisition Track Record Pl
Slide 11: Accel Revenue Growth Outstripping Industry at Large
Accel Revenue Growth Outstripping Industry at Large Year over Year Revenue Growth (%) Accel has grown revenue well in excess of the broader industry over the last two years Source: Accel management, SunTrust Robinson Humphrey Research, Illinois Gaming Board.
Slide 12: Key KPIs – Industry-Leading Growth
Key KPIs – Industry-Leading Growth Locations (#) Revenue ($mm) Video Gaming Terminals (“VGTs”) (#) Adjusted EBITDA ($mm)(2) Average Hold per Day ($)(1) Average Remaining Contract Length 1. Hold Per Day (HPD) calculated as net terminal income / days per measurement period / weighted average # of VGT’
Slide 13: Accel has a Straightforward Value Creation Plan
Accel has a Straightforward Value Creation Plan Execute on Backlog to Deliver Growth Benefit from Gaming Expansion Bill Invest for Sustained Growth Use Strong Balance Sheet Accel is executing on its strategic vision to drive value creation for shareholders New Locations Competitor Conversion Refill
Slide 14: Accel Quarterly KPIs
Accel Quarterly KPIs End of Period Live Locations / VGTs (#) Hold per Day(1) ($) Revenue ($mm) Adjusted EBITDA(2) ($mm) +24% +29% +24% YoY Growth (%) +18% +18% +48% YoY Growth (%) +20% +20% +19% +24% +30% +25% YoY Growth (%) +4% +7% +1% YoY Growth (%) +21% +48% 1. Hold Per Day (HPD) calculated as ne
Slide 15: Historical Financial Summary
Historical Financial Summary 1. Video Gaming Expenses includes Illinois state gaming taxes, Scientific Gaming revenue sharing, and Location revenue sharing. 2. Adjusted EBITDA and Adjusted Net Income are non-GAAP financial measures that may not be comparable to other similarly titled measures of oth
Slide 16: Accel – Pro Forma Summary Balance Sheet
Accel – Pro Forma Summary Balance Sheet 1. Source: Exhibit 99.3 (Unaudited Pro Forma Condensed Combined Financial Information) of 8-K filed by Accel with the SEC on 11/25/2019.
Slide 17: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation 1. Stock-based compensation consists of options, restricted stock units and warrants 2. Calculated by excluding the impact of the non-GAAP adjustments from the current period tax provision calculations Note: With respect to Non-GAAP financial measures, see page 2 "Use
Slide 18: Illustrative Fully Diluted Share Count
Illustrative Fully Diluted Share Count 1. 5 million Class A-2 earnout shares vest in 3 equal tranches (1.7mm shares each). Earnout triggers: 1) $132mm 2021 EBITDA or $12.00 share price; 2) $152mm 2022 EBITDA or $14.00 share price; and 3) $172mm 2023 EBITDA or $16.00 share price 2. Assumes treasury s
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