Company: ACEL
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001698991-25-000023
Chunk: 70

Company: Accel Entertainment, Inc.
Filing Date: 2025-05-05
Form: 10-Q
Item: Item 2
Chunk 70
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 and the notes thereto included in this filing:

(in thousands)Three Months EndedMarch 31,Increase / (Decrease)20252024Change ($)Change (%)Net cash provided by operating activities$44,752 $28,750 $16,002 55.7 %Net cash used in investing activities(26,186)(25,896)(290)(1.1)%Net cash used in financing activities(27,932)(10,546)(17,386)(164.9)%

Net cash provided by operating activities

For the three months ended March 31, 2025, net cash provided by operating activities was $44.8 million, an increase in cash of $16.0 million compared to the prior-year period due primarily to changes in working capital adjustments. 

Net cash used in investing activities

For the three months ended March 31, 2025, net cash used in investing activities was $26.2 million, an increase in cash of $0.3 million compared to the prior-year period. The increase in cash was primarily attributable to higher purchases of property and equipment, partially offset by less cash used for business and asset acquisitions. We anticipate our capital expenditures will be approximately $75–80 million in 2025, of which $31–32 million relates to Fairmount, $5–7 million relates to Louisiana and the remaining $39–41 million for all other capital expenditures.

Net cash used in financing activities

For the three months ended March 31, 2025, net cash used in financing activities was $27.9 million, an increase in cash used of $17.4 million compared to the prior-year period. The change reflects higher net repayments on our debt and higher stock repurchases. 

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Critical Accounting Policies and Estimates

In preparing our condensed consolidated financial statements, we applied the same critical accounting policies as described in our Annual Report on Form 10-K for the year ended December 31, 2024, that affect judgments and estimates of amounts recorded for certain assets, liabilities, revenues, and expenses.

Seasonality

Our results of operations can fluctuate due to seasonal trends and other factors. For example, the gross revenue per machine per day is typically lower in the summer when players will typically spend less time indoors at our locations, and higher in cold weather between February and April, when players will typically spend more time indoors at our locations. Our horse racing operations only operate during the months where the weather is conducive to racing, which is