Company: ACEL
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001698991-25-000034
Chunk: 43

Company: Accel Entertainment, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 1
Chunk 43
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 intangible asset on a straight-line basis over their estimated 7 to 20-year useful lives.

Interest expense, net

Interest expense, net consists of interest on our current credit facilities, amortization of financing fees, accretion of interest on route and customer acquisition costs payable, and interest (income) expense on the interest rate caplets. Interest on the current credit facility is payable monthly on unpaid balances at the variable per annum Secured Overnight Financing Rate (“SOFR”) rate plus an applicable margin, as defined under the terms of the credit facility, ranging from 1.75% to 2.75% depending on the first lien net leverage ratio. 

Income tax expense 

Income tax expense consists mainly of taxes payable to federal, state and local authorities. Deferred income taxes are recognized for the tax consequences of temporary differences between the financial statement carrying amounts and the tax basis of the assets and liabilities. 

30

Results of Operations

The following table summarizes our results of operations on a consolidated basis for the three months ended June 30, 2025 and 2024:

(in thousands, except %'s)Three Months EndedJune 30,Increase / (Decrease)20252024Change ($)Change (%)Net revenues:Net gaming$313,919 $293,240 $20,679 7.1 %Amusement5,517 5,539 (22)(0.4)%Manufacturing1,763 5,208 (3,445)(66.1)%ATM fees and other14,710 5,426 9,284 171.1 %Total net revenues335,909 309,413 26,496 8.6 %Operating expenses:Cost of revenue (exclusive of depreciation and amortization expense shown below)229,758 213,317 16,441 7.7 %Cost of manufacturing goods sold (exclusive of depreciation and amortization expense shown below)886 3,162 (2,276)(72.0)%General and administrative54,878 46,541 8,337 17.9 %Depreciation and amortization of property and equipment13,095 10,794 2,301 21.3 %Amortization of intangible assets and route and customer acquisition costs6,322 5,589 733 13.1 %Other expenses, net4,096 7,327 (3,231)(44.1)%Total