Accel Entertainment, Inc. · NYSE:ACEL
Accel Entertainment — SPAC Merger (September 2019)
22 slides from Accel Entertainment's SPAC merger presentation, Sep 3, 2019
Slide 1: Accel Entertainment – Q2 2019 & Acquisition Update
September 2019 Accel Entertainment – Q2 2019 & Acquisition Update Exhibit 99.2
Slide 2: Use of Projections
Use of Projections This presentation contains financial forecasts prepared by TPG Pace Holdings Corp. (“Pace”) with respect to certain financial metrics of Accel Entertainment, Inc. (“Accel”), including, but not limited to, revenues (gaming, other, and gross), gross profit, adjusted EBITDA, adjusted
Slide 3: Important Information (continued)
Important Information (continued) No Representations or Warranties This presentation does not purport to contain all of the information that may be required to evaluate a possible transaction. No representation or warranty, express or implied, is or will be given by Pace or Accel or any of their res
Slide 4: TPG Pace Holdings Corp. Transaction Update
TPG Pace Holdings Corp. Transaction Update On June 13, 2019, TPG Pace Holdings Corp. (“Pace” or “TPGH”) announced a transaction with the shareholders of Accel Entertainment, Inc. (“Accel”) Accel is the best-in-class gaming-as-a-service platform and the largest video gaming operator in the U.S. on an
Slide 5: 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 Clear objectives to drive sustained value creation New Locations Competitor Conversion Refill Backlog with New Sales M&A Synerg
Slide 6: Record Q2 Results and Add-On Transaction Validate Pace's Investment Thesis
Accel’s Record Q2 Results and Attractive Recent Add-On Transaction Validate Pace’s Investment Thesis Multiple Opportunities to Invest for Growth Attractive Fundamental Valuation Highly Visible EBITDA Growth Substantial FCF Generation from a Unique Asset-Light Model Strong Balance Sheet
Slide 7: Q2 2019 Update
Q2 2019 Update
Slide 8: Key Q1 and Q2 KPIs – Industry-Leading Growth
Key Q1 and Q2 KPIs – Industry-Leading Growth(1) Locations (#) Revenue ($mm) Video Gaming Terminals (“VGTs”) (#) Adjusted EBITDA ($mm)(3) Average Hold per Day ($)(2) Backlog (as of Q2 2019) 1. Prior to Grand River Jackpot acquisition 2. Hold Per Day (HPD) calculated as net terminal income / days per
Slide 9: Accel Revenue Growing Rapidly Year over Year
Accel Revenue Growing Rapidly Year over Year Revenue Growth (%) Accel has grown revenue well in excess of the broader industry over the last two years Source: Management as of June 2019, SunTrust Robinson Humphrey Research.
Slide 10: Location Trends by Vintage
Location Trends by Vintage Revenue by Vintage ($mm)(1) Stable base of topline growth and predictable revenue maturation curve as new locations are signed up Hold Per Day per Month since Opening by Vintage ($)(2) 1. Run-rate revenue based on annualized revenue from pre-2019 installed base and adjuste
Slide 11: Illinois Regulatory Update
Illinois Regulatory Update Regulatory Update & Impact on Accel Run-Rate EBITDA(1) New gaming expansion bill passed in June increased the maximum number of VGTs per location from 5 to 6 (some large trucks stops are now eligible for up to 10 VGTs) On August 14th, emergency rules for issuing keys to Te
Slide 12: Acquisition Update
Acquisition Update 4 -
Slide 13: 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% Source: Management as of Ju
Slide 14: Grand River Jackpot – Company Overview
Grand River Jackpot – Company Overview Accel’s M&A Playbook Grand River Jackpot – Key Facts As of May 2019: Locations: 446 Live VGTs: 1,854 Average HPD: ~$84 Average Remaining Contract Term: 5.8 years 2019E Revenue: $57 million 2019E Adjusted EBITDA: $12 million Outlook: low to mid-teens near-term E
Slide 15: Grand River Jackpot – Geographic Location Density
Grand River Jackpot – Geographic Location Density Accel Standalone Locations (as of 1H19) Grand River Jackpot Locations (as of May 2019) 18 5 4 11 10 10 13 2 1 5 2 14 13 8 2 1 2 3 16 6 1 2 6 1 16 9 1 6 2 8 11 3 24 38 1 3 5 6 1 18 57 8 100 104 34 6 24 9 29 47 11 104 18 3 7 8 27 12 28 85 310 19 24 20
Slide 16: Grand River Jackpot – Pro Forma Accel Financials
Grand River Jackpot – Pro Forma Accel Financials # Locations Revenue ($mm) Adjusted EBITDA ($mm) Capital Expenditures ($mm) 1. PF 2019 represents a full year impact of the Grand River acquisition and 40 additional acquired locations à reported 2019 results will be lower due to only partial year cont
Slide 17: Transaction Update
Transaction Update 4 -
Slide 18: Transaction Overview and Pro Forma Valuation
1. Transaction share price based on amount of cash in trust including interest as of 6/30/2019; PIPE raised at $10.22 / share 2. Debt includes additional debt from $100mm Grand River cash consideration and recent capex investments. Cash & Other Investments includes $5mm convertible note and proceeds
Slide 19: Accel vs. Publicly-Traded Comparable Companies
PF Accel Gaming Peers Above 10% ROIC Gaming Peers Below 3x Net Leverage Route-Based Service Peers 2019E Net Leverage 2019E-2021E Revenue CAGR ROIC(1) 2020E TEV / Adj. EBITDA 2020E TEV / FCF(2) 2021E TEV / Adj. EBITDA 2021E TEV / FCF(2) Accel vs. Publicly-Traded Comparable Companies Accel is well-pos
Slide 20: Post-Transaction Balance Sheet Firepower
Post-Transaction Balance Sheet Firepower Illustrative Balance Sheet Capacity Accel will have significant flexibility to pursue multiple growth avenues for value creation Note: Projections are Pace estimates. With respect to projections, see page 2 “Use of Projections” under “Important Information”
Slide 21: Revised Transaction Timeline
Revised Transaction Timeline Date Event June 2019 $45 million PIPE committed (upsized by $3 million in August) Transaction Agreement executed / announced July 2019 Accel shareholders issued drag notice Preliminary Extension proxy filed with the SEC Shareholder lawsuit Filed August 2019 Shareholder l
Slide 22: 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