Across the board, the Illinois-based terminal operator has seen considerable growth, ending the quarter with all indicators pointing in the right direction. It grew its physical footprint, with 2,549 locations and 13,384 video gaming terminals (VGTs) at the close of Q3 2021, rising by 8% and 15% respectively.
Its net income for the period increased by 58% to $10.8m, while its Adjusted EBITDA sat at $37.6m for a 63% bump when compared to the same time last year. Moreover, Accel’s debt experienced a 13% drop, emerging from the quarter with $148m outstanding.
During Q3, Accel also embarked on several ambitious ventures, most notably the acquisition of Montana-based operator Century Gaming, which is on track to close in the first half of 2022. In addition, the company more than doubled its borrowing capacity from $438m to $900m with a new five-year term consisting of a $150m revolving credit facility, a $350m term loan and a $400m delayed draw term loan.
As a result of the strong quarter, Accel has revised its expectations for the full year, raising its estimated number of locations to at least 2,600 and VGTs to 13,660. It also bumped its revenue projections to between $725m and $750m, while its Adjusted EBITDA estimate was raised to between $140m and $145m.
The operator also amended its end of 2022 expectations. Discounting Century due to “the uncertainty on the exact timing” of its acquisition, Accel expects to see its revenue rise to between $820m and $870m and its Adjusted EBITDA to between $160m and $170m.
