Company: ACEL
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001698991-25-000023
Chunk: 46

Company: Accel Entertainment, Inc.
Filing Date: 2025-05-05
Form: 10-Q
Item: Item 1
Chunk 46
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easurement of contingent consideration liabilities, (ii) non-recurring lobbying and legal expenses related to distributed gaming expansion in current or prospective markets, and (iii) other non-recurring expenses

•Tax effect of adjustments

Adjusted EBITDA is defined as net income plus:

•Amortization of intangible assets and route and customer acquisition costs 

•Stock-based compensation expense

•Loss from unconsolidated affiliates

•(Gain) loss on change in fair value of contingent earnout shares

•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

•Income tax expense

35

Adjusted net income and Adjusted EBITDA

(in thousands)Three Months EndedMarch 31,Increase / (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