Accel Entertainment experienced a remarkable third quarter in 2022, generating $267 million in income. This represents an impressive 38% surge compared to the corresponding period the previous year.
Their earnings also witnessed significant growth, reaching $22.4 million, a substantial 108% increase from the third quarter of 2021. This accomplishment is evident in their adjusted EBITDA of $41.1 million, demonstrating a robust 9% year-over-year expansion.
The company has been actively repurchasing its own shares, allocating $22.5 million for Class A-1 common stock this quarter. Furthermore, they have expanded their operations by incorporating 68% more gaming machines into their portfolio.
It’s important to highlight that Accel secured a significant loan in the second quarter of 2022, amounting to $1.6 billion, to acquire Century Gaming. This transaction explains the 109% year-over-year rise in their debt.
Accel has also been engaged in strategic acquisitions, purchasing the gaming holdings of Nevada-based operator VVS for $9.5 million and investing an additional $2.8 million in River City Amusement Company.
Andy Rubinstein, Accel’s CEO, expressed his satisfaction, stating, “We are delighted with another exceptional quarter and remain dedicated to implementing our growth plan.”
He further remarked, “Despite inflationary pressures, our strong results emphasize the robustness and resilience of our locally-oriented business approach.”
Accel is undoubtedly in an expansionary phase. They have extended their presence in Nebraska and are actively seeking prospects nationwide while simultaneously providing returns to their investors.
Although they are making significant strides in Nevada and Montana, Illinois remains their primary revenue source, contributing a substantial $200.9 million in income this quarter.
The Prairie State is at the forefront of video gaming venues, with an impressive 2,596 locations, dwarfing Montana’s 586 and Nevada’s paltry 335, a fact that largely accounts for the numerical gap. Accel projects it will have a presence of about 22,700 to 23,200 gaming machines across an estimated 3,550 to 3,600 sites by the close of 2022.