The good times keep on rolling at Accel Entertainment. The company announced during its Q3 earnings call this month that quarterly revenue came in at $267.0 million, a 38% annual increase.
Accel CEO Andy Rubenstein said the company’s growth amid trying economic times shows its strength:
“We’re pleased with another strong quarter and remain focused on executing our growth strategy. Our solid performance despite the current inflationary pressures further demonstrates the strength and resilience of our locally-focused business model.”
Net income rose 108% to $22.4 million from Q3 2021 to Q3 2022.
In terms of market presence, the company is a staple in the Illinois gambling market and operates games in licensed establishments in Montana and Nevada, too.
Accel expands credit, acquires two new businesses worth $12.3M
The company expanded its borrowing capacity in Q3 from $438 million to $900 million. Accel’s CEO admitted the company made a big ask of its lenders. But after seeing the company’s plans for the money and its credit history, Accel received more credit than it asked for.
The company plans to use the money, in part, for future mergers and acquisitions in existing gambling states and states with plans to legalize gambling.
Q3 was a relatively busy one for acquisitions. Accel completed the purchase of two companies:
- Nebraska-based VVS, Inc. for $9.5 million
- Midwest operation River City Amusement Company for $2.8 million
Century acquisition boosts Q3 location, terminal numbers
The Q3 buyouts came on the heels of the company’s big Q2 purchase: Century Gaming for $164.2 million in cash and stock.
The company brought with it 8,300 gaming terminals and licenses to operate at more than 900 locations in Montana and Nevada including locations Accel usually operates in, such as:
- Truck stops
- Convenience stores
Accel saw the benefits of that big purchase in Q3. The company operated in 3,517 locations at the end of Q3, a 38% jump year-on-year. Accel ended Q3 with 22,429 gaming terminals in service, up 68% year-on-year thanks to the Century acquisition.
Both of these data points fell just short of Accel’s 2022 goals: 3,550-3,600 locations and 22,700-23,200 gaming terminals. However, with one quarter to go in the fiscal year, Accel will likely hit its location and terminal targets.
Accel Entertainment, a leader in the Illinois gambling market
Accel is an Illinois-based company that has a wide portfolio of products and services. Slots are its bread-and-butter, offering terminals from several high-profile operators including Light & Wonder, Bally, IGT, and Aristocrat.
The company also offers:
- Equipment and league management for darts and billiards
- Smart jukeboxes
- Other specialty amusement machines including crane games and pinball
- Installation, maintenance and operation of gaming terminals