Accel Entertainment Reports Mixed Q2 Results, Raises FY21 Outlook

Accel Entertainment Inc ACEL reported second-quarter FY21 revenue of $201.97 million, beating the analyst consensus of $195.67 million. It reported $0.38 million in revenue in Q2 FY20, as there were no gaming days due to the IGB mandated COVID-19 shutdown.
Revenue per location per day increased 35% compared to Q2 FY19.
Licensed establishments as of June 30, 2021, rose 8.2% Y/Y to 2,527. Video game terminals increased 18.6% to 13,177.
The operating margin was 12.3%. Operating income for the quarter was $24.9 million, versus an operating loss of $(23.84) million last year. Adjusted EBITDA was $42.98 million.
Net cash provided by operating activities for the six months amounted to $54.2 million. Net debt reduced 33.4% Y/Y to $166.5 million at Q2 end.
EPS of $0.13 missed the analyst consensus of $0.20.
"These results were supported by the completion of higher bet limit software upgrades, sixth VGT installations, as well as the economic recovery in the state of Illinois," said CEO Andy Rubenstein.
Outlook: Due to the uncertainty of the COVID-19 delta variant, Accel conservatively raised the FY21 revenue outlook to $700 million - $725 million (prior $650 million - $705 million), versus the consensus of $684.5 million.
The company expects to end FY21 with an estimated 2,590 – 2,615 locations (prior 2,575 – 2,600 locations).
Price action: ACEL shares closed lower by 1.61% at $11.03 on Wednesday.

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