Accel Entertainment, Inc. · NYSE:ACEL
Accel Entertainment — Q3 2020 Earnings Presentation
11 slides from Accel Entertainment's earnings presentation, Nov 5, 2020
Slide 1: Third Quarter 2020 Earnings Presentation
Accel Entertainment Third Quarter 2020 Earnings Presentation November 2020 1
Slide 2: Important Information
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 $29 $26 $19 Accel owns and operates more than 11,500 Video Gaming $5 Terminals (“VGTs”) across 2,363 third-party licensed establishments in Illin
Slide 4: Update
Update • Q3 2020 revenue was the highest revenue quarter in Accel’s history • COVID-19 Update • On July 1st, video gaming relaunched • On July 15th, Governor Pritzker divided Illinois into 11 regions • On November 4th, all regions were operating with mitigation measures limiting play from 8am to 11p
Slide 5: Liquidity and Capital Update
Liquidity and Capital Update • As of September 30th, Accel had $179 million of cash and $95 million of availability on its 2019 Senior Secured Credit Facility • On July 16th, the Company redeemed the Pace Public Warrants at an exchange ratio of 1 warrant for 0.25 shares of common stock • On August 1
Slide 6: Q3 2020 Results
Q3 2020 Results Q3 2019 Q3 2020 % Change Locations 2,290 2,363 +3% VGTs 10,346 11,597 +12% Revenue $101M $136M 35% IL VGT tax Adj. EBITDA(1) $18M $23M 27% increased from 33% to 34% on July 1st 1. Adjusted EBITDA is a non-GAAP financial measures that may not be comparable to other similarly titled me
Slide 7: Accel Quarterly KPIs
Accel Quarterly KPIs End of Period Live Locations / VGTs (#) Location Hold per Day(1) ($) VGTs Ex. GRJ Ex. GRJ Ex. GRJ Ex. GRJ VGTs Ex. GRJ $649 $611 $623 $635 $605 Locations $585 Locations Ex. GRJ 11,597 $596 11,164 11,108 $572 10,346 10,499 $574 w/GRJ w/GRJ $554 w/GRJ w/GRJ 9,750 9,244 9,221 8,448
Slide 8: Regulatory Update
Regulatory Update • On July 1st, video gaming relaunched • On November 4th, all regions were operating with mitigation measures limiting play from 8am to 11pm COVID-19 and restricting indoor dining • Based on 2019 revenue pro forma for the Grand River Acquisition, no region is responsible for more t
Slide 9: Historical Financial Summary
Historical Financial Summary Twelve Months Ended Three Months Ended Nine Months Ended $ in millions December 31, September 30, YoY September 30, YoY 2016 2017 2018 2019 2019 2020 Growth 2019 2020 Growth # Locations 1,162 1,442 1,686 2,312 2,290 2,363 3% 2,290 2,363 3% # VGTs 4,947 6,439 7,649 10,499
Slide 10: Accel Balance Sheet
Accel Balance Sheet December 31, September 30, $ in millions 2019 2020 Assets Current Assets: Cash and cash equivalents $125 $179 Investment in convertible notes (current) $11 $14 Other current assets $15 $17 Total current assets $151 $210 Property and equipment, net $119 $131 Route and customer acq
Slide 11: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation Twelve Months Ended Three Months Ended Nine Months Ended $ in millions December 31, September 30, September 30, Standalone Accel 2016 2017 2018 2019 2019 2020 2019 2020 Reported Net Income (Loss) 5 8 11 (6) (2) 12 7 (11) (+) Amortization of Op Routes 6 10 15 18 4 6 13