Company: ACEL
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001698991-25-000023
Chunk: 29

Company: Accel Entertainment, Inc.
Filing Date: 2025-05-05
Form: 10-Q
Item: Item 1
Chunk 29
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 racing. However, due to the fact the construction of the Fairmount Park casino is in the process of being completed and the limited operations of racing in the winter months, the casino and racing operating segment does not reach the criteria of being a reportable segment in the first quarter of 2025. In April 2025, the Fairmount Park casino opened and the racing season began. As such, the Company expects to disclose a second reportable segment in the second quarter of 2025. Significant segment expenses, including disaggregated significant expenses that are presented within general and administrative expenses, are presented in the Company’s condensed consolidated statement of operations and comprehensive income and are included in the table below.The following table presents financial information with respect to the Company’s single reportable segment, distributed gaming, for the for the three months ended March 31, 2025 and 2024. Additionally, the Company has included an "all other" operating segment which is its casino and racing business that is neither individually reportable nor able to be aggregated or combined with another operating segment. 

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Table of ContentsAccel Entertainment, Inc. and SubsidiariesNotes to Condensed Consolidated Financial Statements — (Continued)

(in thousands)Three Months EndedMarch 31,20252024Distributed gamingTotal net revenues (1)$318,062 $301,817 Adjustments: (2)Cost of revenue219,680 209,167 Compensation related costs - operations (3)20,956 18,685 Compensation related costs - general and administrative (3)12,447 12,127 All other segment items (4)15,632 15,591 Adjusted EBITDA for distributed gaming$49,347 $46,247 Adjusted EBITDA for “all other” operating segment (5)$167 $— Less Adjustments for:Depreciation and amortization of property and equipment$12,301 $10,434 Amortization of intangible assets and route and customer acquisition costs6,290 5,438 Interest expense, net8,685 8,660 Emerging markets63 40 Loss from unconsolidated affiliates16 — Stock-based compensation2,091 2,350 (Gain) loss on change in fair value of contingent earnout shares(2,355)4,716 Other expenses, net2,817 2,426 Income before income tax expense$19,606