Accel Entertainment, Inc. · NYSE:ACEL
Accel Entertainment — Q2 2020 Earnings Presentation
12 slides from Accel Entertainment's earnings presentation, Aug 6, 2020
Slide 1: Accel Entertainment Second Quarter 2020 Earnings Presentation
Accel Entertainment Second Quarter 2020 Earnings Presentation August 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 2,335 third-party licensed $5 establishments in Illinois.
Slide 4: Gaming Update
Gaming Update • In reaction to the COVID-19 pandemic, the Illinois Gaming Board shut down all VGTs across the state of Illinois from March 16th to June 30th • In late March, Accel reduced cash expenses to $2 - $3 million per month of which interest and insurance made up over 50% of the cash expense
Slide 5: Liquidity Update
Liquidity Update • As of June 30th, Accel had $149 million of cash and $50 million of availability on its 2019 Senior Secured Credit Facility (“Credit Facility”) • Accel is in full compliance with all Credit Facility covenants • On August 4th, Accel proactively amended its Credit Facility which: • P
Slide 6: Q2 2020 Results
Q2 2020 Results Q2 2019 Q2 2020 % Change Locations 1,762 2,335 +33% VGTs 8,082 11,108 +37% Revenue $104M $0M (100%) Adj. EBITDA(1) $21M ($9M) (142%) 1. Adjusted EBITDA is a non-GAAP financial measures that may not be comparable to other similarly titled measures of other companies. Accel does not co
Slide 7: Accel Quarterly KPIs
Accel Quarterly KPIs End of Period Live Locations / VGTs (#) Hold per Day(1) ($) VGTs VGTs Ex. GRJ Ex. GRJ Locations $134 $139 $132 $126 $131 Locations Ex. GRJ 11,164 11,108 10,346 10,499 $124 w/GRJ 9,244 9,221 8,448 8,591 8,082 2,290 2,312 2,353 2,335 – Q1 Q2 Q3 Q4 1,762 1,838 1,860 1,904 1,895 2Q1
Slide 8: Regulatory Update
Regulatory Update • On July 1st, video gaming relaunched • On July 15th, Governor Pritzker divided Illinois into 11 regions COVID-19 • Based on 2019 revenue annualized for the Grand River Acquisition, no region is responsible for more than 20% of Accel’s revenue • Chicago is a separate region (Accel
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 Six Months Ended $ in millions December 31, June 30, YoY June 30, YoY 2016 2017 2018 2019 2019 2020 Growth 2019 2020 Growth # Locations 1,162 1,442 1,686 2,312 1,762 2,335 33% 1,762 2,335 33% # VGTs 4,947 6,439 7,649 10,499 8,082 11
Slide 11: Accel Balance Sheet
Accel Balance Sheet December 31, June 30, $ in millions 2019 2020 Assets Current Assets: Cash and cash equivalents $125 $149 Investment in convertible notes (current) $11 $17 Other current assets $15 $14 Total current assets $151 $180 Property and equipment, net $119 $124 Route and customer acquisit
Slide 12: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation Twelve Months Ended Three Months Ended Six Months Ended $ in millions December 31, June 30, June 30, Standalone Accel 2016 2017 2018 2019 2019 2020 2019 2020 Reported Net Income (Loss) 5 8 11 (6) 4 (21) 8 (23) (+) Amortization of Op Routes 6 10 15 18 5 6 9 11 (+) Stoc