Accel Entertainment, Inc. · NYSE:ACEL
Accel Entertainment — Q3 2019 Earnings Presentation
12 slides from Accel Entertainment's earnings presentation, Nov 27, 2019
Slide 1: Third Quarter Earnings Presentation
November 2019 Third Quarter Earnings Presentation Exhibit 99.3
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: Q3 2019 Update
Q3 2019 Update Locations VGTs Revenue Adj. EBITDA Capex M&A Transaction Value 1,551 7,001 $241M $47M $20M $10M Standalone: 1,838 w/GRJ: 2,290 Standalone: 8,448 w/GRJ: 10,346 $303M $59M $20M $105M Standalone: +19% w/GRJ: +48% Standalone: +21% w/GRJ: +48% +26% +26% +1% 9M 2018 9M 2019(1) % Change Stro
Slide 5: Key KPIs – Industry-Leading Growth
Key KPIs – Industry-Leading Growth Locations (#) Revenue ($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 / average # of VGT’s 2. Adju
Slide 6: 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 7: Strong Free Float and Capitalization
Strong Free Float and Capitalization Ownership at Close Pro-Forma Capitalization (As of Closing) Reached 98% of voting shares voting in favor Initial Enterprise value of approximately $1.0 Billion Merger closed on November 20, 2019 Public currency and strong balance sheet enable Accel’s growth plans
Slide 8: 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 9: Historical Financial Summary
Historical Financial Summary 1. Video Gaming Expenses includes Illinois state gaming taxes, Scientific Gaming revenue sharing, and Location revenue sharing. Note: With respect to Non-GAAP financial measures, see page 2 "Use of Non-GAAP Financial Measures" under Important Information and page 11 "Non
Slide 10: 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 11: 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 12: 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