Accel's Q1 2025: Weather and M&A Contradictions Challenge Growth Strategies

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Record Revenue and EBITDA Growth:
- Accel Entertainment, Inc. reported a record revenue of $344 million for Q1 2025, marking its highest quarterly revenue since going public, with a 7% year-over-year growth.
- The growth was driven by stable revenue in Illinois and Montana, double-digit growth in Nebraska and Georgia, and the integration of Louisiana operations.

Expansion and Synergies:
- Accel Entertainment completed the integration of Louisiana operations, adding 96 locations and 614 terminals.
- This expansion is expected to drive further synergies and performance improvements, as the company optimizes its operations and leverages proprietary technology.

Fairmount Park Casino Opening:
- Fairmount Park Casino opened on April 18, becoming the first racino in Illinois's history.
- The initial success of the opening, despite minimal marketing, is expected to contribute to Accel's growth, with increased consumer interest and enhancements to the casino and racing facilities.

Capital Allocation and Share Repurchases:
- Accel Entertainment repurchased 1 million shares during the quarter, with an average purchase price of $10.34 per share.
- This strategy is part of the company's favorable view of share repurchases as an effective way to return capital to shareholders, supported by a strong balance sheet and low leverage.

Market Expansion and Optimization:
- The company continues to optimize its portfolio by pruning underperforming locations, reallocating assets for improved profitability.
- This approach is part of Accel's strategy to scale and optimize its operations in new markets, leveraging its unique distributed gaming model and proprietary technology.