Company: ACEL
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001698991-25-000011
Chunk: 185

Company: Accel Entertainment, Inc.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7
Chunk 185
---
out shares

•Gain on expiration of warrants

•Other expenses, net 

•Tax effect of adjustments

•Depreciation and amortization of property and equipment

•Interest expense, net

•Emerging markets which reflects the results, on an Adjusted EBITDA basis, for non-core jurisdictions where our operations are developing

◦Markets are no longer considered emerging when we have installed or acquired at least 500 gaming terminals in the jurisdiction, or when 24 months have elapsed from the date we first install or acquire gaming terminals in the jurisdiction, whichever occurs first

◦We currently view Pennsylvania as an emerging market

◦Prior to January 2024, Iowa was considered an emerging market

◦Prior to April 2023, Nebraska was considered an emerging market

•Income tax expense

Adjusted net income and Adjusted EBITDA

(in thousands, except %s)Year EndedDecember 31,Increase / (Decrease)20242023ChangeChange %Net income$35,291 $45,603 $(10,312)(22.6)%Adjustments:Amortization of intangible assets and route and customer acquisition costs22,577 21,211 1,366 6.4 %Stock-based compensation12,204 9,416 2,788 29.6 %Loss from unconsolidated affiliates— — — — %Loss on change in fair value of contingent earnout shares1,276 8,539 (7,263)(85.1)%Gain on expiration of warrants(13)— (13)100.0 %Other expenses, net19,339 6,453 12,886 199.7 %Tax effect of adjustments(13,585)(8,702)(4,883)(56.1)%Adjusted net income77,089 82,520 (5,431)(6.6)%Depreciation and amortization of property and equipment43,978 37,906 6,072 16.0 %Interest expense, net35,892 33,144 2,748 8.3 %Emerging markets165 (948)1,113 117.4 %Income tax expense32,023 28,823 3,200 11.1 %Adjusted EBITDA$189,147 $181,445 $7,702 4.2 %

Adjusted EBITDA for