Company: ACEL
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001698991-25-000051
Chunk: 72

Company: Accel Entertainment, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 2
Chunk 72
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5% to 2.5% depending on the first lien net leverage ratio. 

Income tax expense 

32

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. 

Results of Operations

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

(in thousands, except %'s)Three Months EndedSeptember 30,Increase / (Decrease)20252024Change ($)Change (%)Net revenues:Net gaming$308,481 $289,923 $18,558 6.4 %Amusement4,977 5,104 (127)(2.5)%Manufacturing1,678 1,705 (27)(1.6)%ATM fees and other14,557 5,495 9,062 164.9 %Total net revenues329,693 302,227 27,466 9.1 %Operating expenses:Cost of revenue (exclusive of depreciation and amortization expense shown below)225,511 210,841 14,670 7.0 %Cost of manufacturing goods sold (exclusive of depreciation and amortization expense shown below)916 962 (46)(4.8)%General and administrative55,600 47,930 7,670 16.0 %Depreciation and amortization of property and equipment13,339 11,001 2,338 21.3 %Amortization of intangible assets and route and customer acquisition costs6,389 5,781 608 10.5 %Other expenses, net2,577 3,867 (1,290)(33.4)%Total operating expenses304,332 280,382 23,950 8.5 %Operating income25,361 21,845 3,516 16.1 %Interest expense, net8,622 9,164 (542)(5.9)%Loss from unconsolidated affiliates22 1 21 2,100.0 %(Gain) loss on change in fair value of contingent earnout shares(2,170)4,216 (6,386)(151.5)%Loss on debt extinguishment1,090 — 1,090