Accel Entertainment, Inc. (NYSE:ACEL) Q3 2023 Earnings Conference Call November 7, 2023 5:30 PM ET

Company Participants

Derek Harmer - General Counsel, Chief Compliance Officer & Secretary

Andrew Rubenstein - Co-Founder, President, CEO & Director

Mathew Ellis - CFO

Conference Call Participants

Steven Pizzella - Deutsche Bank

Samir Ghafir - Macquarie Research

Gregory Gibas - Northland Capital Markets

Operator

Good afternoon, and thank you for attending today's Accel Entertainment third quarter earnings call. My name is Jason, and I'll be the moderator for today. [Operator Instructions].

I would now like to pass the conference over to our host, Derek Harmer.

Derek Harmer

Welcome to Accel Entertainment's Third Quarter 2023 Earnings Call. Participating on the call today are Andy Rubenstein, Accel's Chief Executive Officer; and Mat Ellis, Accel's Chief Financial Officer.

Please refer to our website for the press release and supplemental information that will be discussed on this call. Today's call is being recorded and will be available on our website under Events & Presentations within the Investor Relations section of our website.

Some of the comments in today's call may constitute forward-looking statements within the meaning of the Private Securities Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties. Actual results may differ materially from those discussed today, and the company undertakes no obligation to update these statements unless required by law.

For a more detailed discussion of these and other risk factors, investors should review the forward-looking statements section of the earnings press release available on our website as well as other risk factor disclosures in our filings with the SEC.

During the call, we may discuss certain non-GAAP financial measures. For reconciliations of the non-GAAP measures as well as other information regarding these measures, please refer to our earnings release and other materials in the Investor Relations section of our website.

I will now turn the call over to Andy.

Andrew Rubenstein

Thanks, Derek, and good afternoon, everyone. Thank you for joining us for Accel's third quarter earnings call. I am pleased to report we had another strong quarter. We reported revenue of $287 million, a year-over-year increase of 8% and adjusted EBITDA of $44 million, a year-over-year increase of 7%.

Q3's revenue growth was primarily driven by adding new locations in Illinois, along with 1% same-store sales growth. We also saw some growth in our developing markets where we continue to add locations and attract new players. Our continued growth in the current economic environment demonstrates the strength of our hyper-local business model. Our establishment partners recognize and rely on the incremental profits that our high-quality offering brings to their businesses.