Accel Entertainment, Inc. · NYSE:ACEL
Accel Entertainment — Q4 2019 Earnings Presentation
14 slides from Accel Entertainment's earnings presentation, Mar 16, 2020
Slide 1: Fourth Quarter Earnings Presentation March 2020
Fourth Quarter Earnings Presentation March 2020 ACCEL ENTERTAINMENT, INC.
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 64 59% CAGR 47 33 26 Accel owns and operates approximately 10,500 Video 19 Gaming Terminals (“VGTs”) across 2,312 third-party 5 licensed establishments in Illinois. Ac
Slide 4: Record YE 2019 Results
Record YE 2019 Results YE 2018 YE 2019(1) % Change Standalone: 1,860 Standalone: +10% Locations 1,686 w/GRJ: 2,312 w/GRJ: +37% Standalone: 8,591 Standalone: +12% VGTs 7,649 w/GRJ: 10,499 w/GRJ: +37% Revenue $332M $424M +28% Adj. $64M $80M +25% EBITDA(2) Capex $23M $21M (8%) M&A $100M Transaction $51
Slide 5: Key KPIs – Industry-Leading Growth
Key KPIs – Industry-Leading Growth Locations (#) Revenue ($mm) +37% +28% 2,312 424 1,686 1,442 332 1,162 248 173 2016 2017 2018 2019 2016 2017 2018 2019 Video Gaming Terminals (#) Adjusted EBITDA ($mm)(2) +26% +37% 80 10,499 64 7,649 6,439 47 4,947 33 2016 2017 2018 2019 2016 2017 2018 2019 Average
Slide 6: Accel Quarterly KPIs
Accel Quarterly KPIs End of Period Live Locations / VGTs (#) Hold per Day(1) ($) YoY Growth (%) VGTs VGTs Ex. Grand River 10,346 10,499 +4% +7% +1% +3% Locations Ex. GRJ $139 Locations Ex. Grand River $134 $131 $129 $130 $124 $126 $128 8,448 8,591 $122 7,935 8,082 w/GRJ 7,649 2,290 2,312 7,001 6,607
Slide 7: Accel Revenue Growth Outstripping Industry at Large
Accel Revenue Growth Outstripping Industry at Large Year-over-Year Revenue Growth (%) 45% 44% 33% 29% 28% 24% 24% 23% 17% 16% 14% 14% 14% 11% 11% 11% 4% 4% 3% 3% 3% 2% 2% 1% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 Gross Gaming Revenue Growth (Ex. LV Strip) Illinois VGT Revenue Accel Revenue Accel ha
Slide 8: The Year Ahead
The Year Ahead ▪ Ryan Hammer hired as President of Gaming Build up Team and Operations ▪ Michael Marino hired as Chief Commercial Officer Infrastructure to Industry ▪ Investment in back office and public company Leading Support Growth compliance ▪ Investment in sales and finance team Gaming Bill Rev
Slide 9: Leadership Team Additions
Leadership Team Additions Executive Relevant Experience ▪ As president of gaming operations Ryan will lead the company’s video gaming business ▪ More than 16 years of gaming experience working in various roles at Caesars Entertainment Ryan Hammer ▪ Most recently served as Senior Vice President & Gen
Slide 10: Regulatory Update
Regulatory Update • Recent Illinois Legislation allows for the addition of a 6th machine at each location, and up to 10 total machines at certain qualified truck stops 6th VGT • The IGB gave approval to start installing 6th machines on January 13th • Accel expects to install 6th machines at 1,000 lo
Slide 11: 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 12: Historical Financial Summary
Historical Financial Summary Twelve Months Ended Three Months Ended $ in millions, except where indicated December 31, December 31, 2016 2017 2018 2019 # Locations 1,162 1,442 1,686 2,312 # VGTs 4,947 6,439 7,649 10,499 Net Video Gaming Revenue 168 240 322 411 Other Revenue 5 8 10 14 Gross Revenues
Slide 13: Accel Balance Sheet
Accel Balance Sheet December 31, $ in millions 2018 2019 Assets Current Assets: Cash $92 $125 Investment in convertible notes (current) – $11 Other current assets $10 $15 Total current assets $102 $151 Property and equipment, net $92 $119 Route and customer acquisition costs, net $14 $17 Location co
Slide 14: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation Twelve Months Ended Nine Months Ended $ in millions, except where indicated December 31, September 30, Standalone Accel 2016 2017 2018 2019 Reported Net Income 5 8 11 (6) (+) Amorization of Op Routes 6 10 15 18 (+) Stock Based Comp(1) 1 1 0 2 (+) Other Expenses (0) 1