Company: ACEL
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001698991-25-000023
Chunk: 68

Company: Accel Entertainment, Inc.
Filing Date: 2025-05-05
Form: 10-Q
Item: Item 2
Chunk 68
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Decrease)20252024Change ($)Change (%)Net income$14,613 $7,416 $7,197 97.0 %Adjustments:Amortization of intangible assets and route and customer acquisition costs6,290 5,438 852 15.7 %Stock-based compensation expense2,091 2,350 (259)(11.0)%Loss from unconsolidated affiliates16 — 16 100.0 %(Gain) loss on change in fair value of contingent earnout shares (2,355)4,716 (7,071)(149.9)%Other expenses, net 2,817 2,426 391 16.1 %Tax effect of adjustments (3,254)(2,841)(413)(14.5)%Adjusted net income20,218 19,505 713 3.7 %Depreciation and amortization of property and equipment12,301 10,434 1,867 17.9 %Interest expense, net8,685 8,660 25 0.3 %Emerging markets 63 40 23 57.5 %Income tax expense8,247 7,608 639 8.4 %Adjusted EBITDA$49,514 $46,247 $3,267 7.1 %

Adjusted EBITDA for the three months ended March 31, 2025, was $49.5 million, an increase of $3.3 million, or 7.1%, compared to the prior-year period. The increase was attributable to an increase in the number of locations and gaming terminals.

Liquidity and Capital Resources

We believe that our cash and cash equivalents, cash flows from operations and borrowing availability under the Credit Agreement (as defined below) will be sufficient to meet our capital requirements for the next twelve months. Our primary short-term cash needs are paying operating expenses and contingent earnout payments, purchases of property and equipment, servicing outstanding indebtedness, and funding our Board of Directors approved share repurchase program and near-term acquisitions. As of March 31, 2025, we had $271.9 million in cash and cash equivalents.

Senior Secured Credit Facility

We have entered into a credit agreement (as amended the “Credit Agreement”) as borrower, with our wholly-owned domestic subsidiaries, as guarantors, the banks, financial institutions and other lending institutions from