Q1 2024 Accel Entertainment Inc Earnings Call
Operator: Ladies and gentlemen, please remain holding. Your conference call will begin shortly. Again, please remain holding.
Ladies and gentlemen, please remain holding the conference call will begin shortly.
Operator: Again, please remain holding the conference call will begin shortly.
Operator: Your conference call will begin shortly. My name is Sierra, and I will be your moderator for today. All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end. If you would like to ask a question, press star 1 on your telephone keypad. I would now like to pass the conference over to our host, Derek Harmer.
Operator: [music].
Operator: Yeah.
Derek Harmer: Hello, everyone.
Derek Harmer: Thank you for attending today's lifestyle Entertainment Q1, 'twenty 'twenty four earnings call.
Sierra: My name is Sierra and I will be your moderator for today.
Sierra: All lines will be muted during the presentation portion of the call.
Speaker Change: An opportunity for questions and answers at the end if.
Operator: If you would like to ask a question press star one on your telephone keypad.
Operator: I would now like to pass the conference over to our host Derek Harmer.
Derek Harmer: Welcome to Accel Entertainment's first quarter 2024 earnings call. Participating on the call today are Andy Rubenstein, Accel's Chief Executive Officer, and Matt Ellis, Accel's Chief Financial Officer.
Derek Harmer: Welcome to Accel Entertainment's first quarter 2024 earnings call participating on the call today are Andy Rubenstein, <unk>, Chief Executive Officer, and Matt Ellis <unk> Chief Financial Officer.
Derek Harmer: 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 and 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. Such forward-looking statements are subject to risks and uncertainty. Actual results may differ materially from those discussed today, and the company undertakes no obligation to update these statements unless required by law.
Derek Harmer: 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 and presentations within the Investor Relations section of our website.
Derek Harmer: Some of the comments in today's call may constitute forward looking statements within the meaning of the private Securities Reform Act of 995.
Derek Harmer: These forward looking statements are subject to risks and uncertainties.
Derek Harmer: Actual results may differ materially from those discussed today and the company undertakes no obligation to update these statements unless required by law.
Derek Harmer: 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.
Derek Harmer: 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.
Andy: During the call we may discuss certain non-GAAP financial measures for a reconciliation of the non-GAAP measures as well as other information regarding these measures. Please refer to our earnings release and other materials.
Andy: Investor Relations section of our website.
Andy: I'll now turn the call over to Ed Thanks, Derek and good afternoon, everyone. Thank you for joining us for <unk> first quarter earnings call and.
Andrew Harry Rubenstein: Thanks, Derek, and good afternoon, everyone. Thank you for joining us on Accel's first quarter earnings call. I'm pleased to report we once again had a strong quarter. We reported revenue of $302 million, a year-over-year increase of 2.9%, and adjusted EBITDA of $46 million, a year-over-year increase of 0.3%. Similar to other companies in Illinois, we saw negative same-store sales growth primarily due to unfavorable weather, especially in January.
Andrew Harry Rubenstein: I am pleased to report we once again had a strong quarter, we reported revenue of $302 million.
Andrew Harry Rubenstein: Year over year increase of two 9%.
Andrew Harry Rubenstein: And adjusted EBITDA of $46 million, a year over year increase of 3%.
Andrew Harry Rubenstein: Similar to other companies and Illinois, we saw negative same store sales growth.
Andrew Harry Rubenstein: Similarly, due to unfavorable weather, especially in January.
Andrew Harry Rubenstein: However, adding new locations in Illinois and Nebraska allowed us to grow revenue overall. Our location partners recognize the value we provide and rely on the incremental revenues our convenient, high-quality offering brings to their business. On the expense side, we continue to optimize our operations, which has helped us maintain a stable cost structure despite inflationary impact. Our highly variable cost structure allows us to quickly adjust to any changes in the economy.
Andrew Harry Rubenstein: However, adding new locations in Illinois, Nebraska allowed us to grow revenue overall.
Andrew Harry Rubenstein: Patient partners recognize the value, we provide and rely on the incremental revenues are convenient high quality offering brings to their businesses.
Andrew Harry Rubenstein: On the expense side, we continue to optimize our operations, which has helped us maintain a stable cost structure despite inflationary impacts.
Andrew Harry Rubenstein: Our highly variable cost structure allows us to quickly adjust to any changes in the economy.
Andrew Harry Rubenstein: Looking ahead to future growth, our pipeline remains more active than ever as we evaluate multiple opportunities across the country. We are working hard to get the right opportunities across the finish line and look forward to sharing them with you in the near future. We are also optimistic about the opportunities in the markets where we are currently operating. Our strong balance sheet, proven business model, and consistent growth offer one of the best investments in gaming. With that said, I'd like to turn it over to Matt to walk you through our financials in more detail. Thanks.
Andrew Harry Rubenstein: Looking at future growth, our pipeline remains more active than ever as we evaluate multiple opportunities across the country.
Matt: We are working hard to get the right opportunities across the finish line and look forward to sharing them with you in the near future.
Matt: We are also optimistic about the opportunities in the markets, where we're currently operating or.
Matt: Our strong balance sheet proven business model and consistent growth offer one of the best investments in gaming.
Andrew Harry Rubenstein: With that I'd like to turn it over to Matt to walk you through our financials in more detail. Thanks, Andy and good afternoon, everyone for the first quarter. We had total revenue of $302 million a year over year increase of two 9% and adjusted EBITDA of $46 million a year over year increase of 0.3%.
Mathew Ellis: Thanks, Andy, and good afternoon, everyone. For the first quarter, we had total revenue of $302 million, a year-over-year increase of 2.9%, and adjusted EBITDA of $46 million, a year-over-year increase of 0.3%. As of March 31st, we had 25,321 terminals in 3,987 locations, year-over-year increases of 5.6% and 5.1%, respectively. Location attrition continues to remain low and is mostly attributable to our lowest-performing locations closing their doors.
Mathew Ellis: As of March 31, we had 25321 terminals and 3987 locations year over year increases of five six and five 1% respectively.
Mathew Ellis: Location attrition continues to remain low and is mostly attributable to our lowest performing locations closing their doors.
Mathew Ellis: Capital expenditures for the first quarter were $21 million in cash. The increase was attributable to payments of outstanding invoices from last year. As a reminder, the primary driver of our elevated CapEx was the introduction of four new high-performing gaming terminals at the same time in LA. In the past, we would normally see one high-performance cabinet released every 12 to 18 weeks.
Mathew Ellis: Capital expenditures for the first quarter were $21 million cash spend.
Mathew Ellis: The increase was attributable to payments of outstanding invoices from last year.
Mathew Ellis: As a reminder, the primary driver of our elevated Capex was the introduction of four new high performing gaming terminals at the same time in Illinois.
Mathew Ellis: In the past, we would normally see one high performing cabinet released every 12 to 18 months.
Mathew Ellis: We view last year and this quarter's CapEx as one-time in nature. For 2024, we are still projecting CAFX to be between $55 million and $65 million, a decrease of more than 20%. Over the longer term, we expect CAFX to decrease even further.
Mathew Ellis: We view last year in this quarter's capex as onetime in nature.
Mathew Ellis: For 2024, we're still projecting capex to be between $55 million and $65 million a decrease of more than 20%.
Mathew Ellis: Over the longer term, we expect capex to decrease even further.
Andrew Harry Rubenstein: At the end of the first quarter, we had approximately $286 million of net debt and $553 million of liquidity, consisting of $254 million of cash on our balance sheet and $299 million of availability on our credit facility. As part of our capital allocation strategy, we continue to make progress on our $200 million share repurchase program. During the quarter, we repurchased 600,000 shares at an average purchase price of $10.60 a share for a total of $6 million.
Mathew Ellis: At the end of the first quarter, we had approximately $286 million of net debt and $553 million of liquidity consisting of $254 million of cash on our balance sheet and $299 million of availability on our credit facility.
Andrew Harry Rubenstein: On our capital allocation strategy, we continue to make progress on our $200 million share repurchase program.
Andrew Harry Rubenstein: During the quarter, we repurchased 600000 shares at an average purchase price of $10 60, a share for a total of $6 million.
Andrew Harry Rubenstein: We are almost 60% through the repurchase program with 12 million shares repurchased at a cost of $124 million. With our strong balance sheet and low leverage, we are in a unique position where we can grow our business and return capital to shareholders. With that, I'd like to turn it back over to Andy. Thanks, Matt.
Andrew Harry Rubenstein: We are almost 60% through the repurchase program with 12 million shares repurchased at a cost of $124 million.
Andy: With our strong balance sheet and low leverage we are in a unique position, where we can grow our business and return capital to shareholders.
Andrew Harry Rubenstein: With that I'd like to turn it back over to Andy Thanks, Matt.
Andrew Harry Rubenstein: We're pleased with another strong quarter and remain focused on executing our growth strategy to create value for our investors. We're confident that our turnkey, full-service local gaming solutions provide a platform to continue to produce strong and consistent results. Our focus is to provide unmatched customer support, guidance, and expertise so our location partners can grow their business. We will now take your questions.
Andy: We're pleased with another strong quarter and remain focused on executing our growth strategy to create value for our investors. We're confident that our turnkey full service local gaming solutions provide a platform to continue to produce strong and consistent results.
Andrew Harry Rubenstein: Our focus is to provide unmatched customer support guidance and expertise. So our location partners can grow their businesses, we will now take your questions.
Speaker Change: Thank you.
Operator: We will now begin the Q&A session. If you would like to ask a question, please press star followed by one on your telephone keypad. To remove a question, press star followed by two. And if you are using a speakerphone, please pick up your handset before asking your question. Our first question today comes from Chad Beynon on behalf of McGuire. Please proceed.
Speaker Change: Now begin the Q&A session.
Operator: If you would like to ask a question. Please press star followed by one on your telephone keypad.
Operator: That question Press Star followed by Tim.
Chad C. Beynon: And if you are using a speakerphone. Please pick up your handset before asking your question.
Operator: Our first question today comes from Chad Beynon with Macquarie.
Chad C. Beynon: Please proceed.
Chad C. Beynon: Afternoon, Andy, Matt. Thanks for taking my question. I wanted to start with just kind of the legislative landscape, places like, you know, Virginia, North Carolina, Georgia, etc. Not necessarily for 24, but kind of where things are shaping up. And if you think any of these, you know, have a decent probability of passing something favorable for your business in 25.
Chad C. Beynon: Afternoon, Andy Matt Thanks for taking my question.
Chad C. Beynon: I wanted to start with I'm.
Chad C. Beynon: Just kind of the legislation landscape places like Virginia.
Chad C. Beynon: North Carolina, Georgia et cetera.
Chad C. Beynon: Not necessarily for 'twenty, four but kind of where things are shaping up and if you think any of these.
Chad C. Beynon: Have a decent probability of passing something favorable for your business and 25.
Andrew Harry Rubenstein: Thanks, Chad. This is Andy.
Andy: Thanks, Chad.
Andy: This is Andy.
Andrew Harry Rubenstein: As far as, I'll go down the states that you mentioned and a few others. Virginia has legislation that's kind of, pending, not probable of getting passed and signed by the governor, but something has to give in that state because of the existing equipment that's out in the field and the governor's desire to kind of clean up an illegal industry. I don't think this year is the year; whether 25 is the year, I don't know.
Andy: As far as I'll go down the states that you mentioned and a few others.
Andrew Harry Rubenstein: Daniel has legislation thats kind of.
Andrew Harry Rubenstein: Pending.
Andrew Harry Rubenstein: Not probable.
Andrew Harry Rubenstein: Getting passed and signed by the Governor, but something has to given that state because of the.
Andrew Harry Rubenstein: The existing equipment, that's out in the field and.
Andrew Harry Rubenstein: The governor's.
Andrew Harry Rubenstein: Desire to kind of.
Andrew Harry Rubenstein: Clean up.
Andrew Harry Rubenstein: In the legal industry.
Andrew Harry Rubenstein: I don't think this year is the year and weather twenty-five as theater I don't know.
Andrew Harry Rubenstein: But.
Andrew Harry Rubenstein: It has a probability, it's obviously greater than zero, but it's tough legislation. I mean, just in general, but we feel that something has to give because there have been so many different bills that have been pushed forward in the last couple of years, and there's a real need to do something. Georgia, legislation passed this year, kind of solidifying the gift card or kind of value card as a redemption option.
Andrew Harry Rubenstein: It has a probability is obviously greater than zero, but it's helpful legislation I mean, just in general.
Andrew Harry Rubenstein: But we feel that something has to give because theres been so many.
Andrew Harry Rubenstein: Current bills that have been pushed forward in the last couple of years.
Andrew Harry Rubenstein: There's a real need to do something.
Andrew Harry Rubenstein: Georgia legislation passed this year kind of solidifying the.
Andrew Harry Rubenstein: The gift card or kind of value card.
Andrew Harry Rubenstein: As the redemption option.
Andrew Harry Rubenstein: And I believe that's the beginning of a more long-term. [inaudible] in Georgia, a cash-out environment that's more like Illinois. I don't think that's going to happen in 25 or 26, but it's..., directionally possible.
Andrew Harry Rubenstein: And I believe.
Andrew Harry Rubenstein: That's the beginning of a more long term.
Andrew Harry Rubenstein: Movement.
Andrew Harry Rubenstein: And Georgia toward.
Andrew Harry Rubenstein:
Andrew Harry Rubenstein: A cash out.
Andrew Harry Rubenstein: Environment.
Andrew Harry Rubenstein: It's more like Illinois.
Andrew Harry Rubenstein:
Andrew Harry Rubenstein: I don't think that's going to happen in 'twenty, five 'twenty six but its directionally positive.
Andrew Harry Rubenstein: And that bill is signed and done. North Carolina is still, their session is still going on. Last year got very close.
Andrew Harry Rubenstein: And that that bill signed and done.
Andrew Harry Rubenstein: North Carolina is still the recessions so going.
Andrew Harry Rubenstein: Last year, we got very close.
Andrew Harry Rubenstein: This year, we haven't seen the bills, but again, there is good momentum due to the fact that there's a lot of equipment out in the field that there's a strong opposition. Let's call it an illegal market from the government leaders. So this year's legislation will probably not include casino gambling, and that gives it a better chance, but again, it's not. It's very difficult legislation to pass and not that optimistic. Finally, Pennsylvania has a very similar situation to North Carolina and Virginia.
Andrew Harry Rubenstein: This year, we haven't seen the bills.
Andrew Harry Rubenstein: But again.
Andrew Harry Rubenstein: There is good momentum due to the fact that there's a lot of equipment out in the field that.
Andrew Harry Rubenstein: There's a there's a strong opposition.
Andrew Harry Rubenstein: Two.
Andrew Harry Rubenstein: Let's call it an illegal market from the.
Andrew Harry Rubenstein: Government leaders so.
Andrew Harry Rubenstein: As soon as legislation.
Andrew Harry Rubenstein: Not include casino.
Andrew Harry Rubenstein: And that gives us a better chance, but again, it's not.
Andrew Harry Rubenstein: It's very difficult legislation to pass and.
Andrew Harry Rubenstein: Not that optimistic.
Andrew Harry Rubenstein:
Andrew Harry Rubenstein: Finally, Pennsylvania has a very similar situation.
Andrew Harry Rubenstein: To North Carolina and Virginia.
Andrew Harry Rubenstein: There hasn't been any real movement there, whether it happens or not. There's going to have to be some type of impetus for them to push some legislation through. There appears to be a lot of people that are happy with the status quo. So, what am I telling you? I would say it's less than.
Andrew Harry Rubenstein: There hasnt been any real movement there.
Andrew Harry Rubenstein:
Andrew Harry Rubenstein: Whether it happens.
Andrew Harry Rubenstein: It could be there is going to have to be some type of an impetus to.
Andrew Harry Rubenstein: For them to push.
Andrew Harry Rubenstein: Some legislation through because.
Andrew Harry Rubenstein: Peters to be a lot of people that are happy with the status quo.
Andrew Harry Rubenstein: So.
Andrew Harry Rubenstein: We've been telling you.
Andrew Harry Rubenstein: I would say it's less than <unk>.
Andrew Harry Rubenstein: 50% chance of anything happening in the next two years, but there are states that have a reason to pass legislation allowing VGTs or a skill game environment, and that would be regulated. And we're watching it actively. We're ready to move when legislation gets passed. We're going to expand what we're doing and lean into the gift card in Georgia. So I think it will benefit our business, but the question is how much.
Andrew Harry Rubenstein: 50% chance of anything happen in the next two years, but the odd.
Andrew Harry Rubenstein: Our states that have a reason to pass legislation.
Andrew Harry Rubenstein: Allowing <unk> or a skill game environment.
Andrew Harry Rubenstein: And that would be regulated and we're watching it actively.
Andrew Harry Rubenstein: <unk> move win.
Andrew Harry Rubenstein: Legislation gets passed.
Andrew Harry Rubenstein: We're going to expand what we're doing.
Andrew Harry Rubenstein: And lead into the gift card.
Andrew Harry Rubenstein: In Georgia, So I think it will benefit our business, but the question is how much.
Chad C. Beynon: That's great. Thanks for running that through, Andy.
Speaker Change: That's great thanks for running through that.
Andrew Harry Rubenstein: And then, just in terms of what you're seeing with the consumer in your establishment, so the revenue growth was stronger than, I guess, what we've seen in a lot of weather-impacted markets and kind of what we've seen from other operators in the first quarter. That would tell me that the February-March exit rate was fairly stable, or maybe even healthy, I would say. Is that kind of what you were seeing in your establishments? Were you pretty happy with how the business recovered throughout the quarter after a tough January?
Chad C. Beynon: And then just in terms of what Youre seeing with the consumer in your establishment. So the revenue growth was <unk> was stronger than I guess, what we've seen in a lot of <unk>.
Andrew Harry Rubenstein: Weather impacted markets and kind of what we've seen from other operators in the first quarter that would tell me that.
Andrew Harry Rubenstein: The February March exit rate.
Andrew Harry Rubenstein: It was fairly stable or maybe even healthy I would say is that kind of what you're seeing.
Andrew Harry Rubenstein: And your establishment, where you're pretty happy with how the business recovered throughout the quarter after a tough January.
Andrew Harry Rubenstein: Yeah, I mean it was a very strong recovery from kind of getting a real punch to the mouth early in the year, and you kind of give us confidence that where we sit in the... World of Gaming, where you talk about the vertical of gaming, that we're, we are the gaming entertainment that is closest to home. It takes the least investment to participate. You don't have to drive very far.
Speaker Change: Yes, I mean, it was a very strong recovery from kind of getting a.
Andrew Harry Rubenstein: A real punched in the mouth early in the.
Andrew Harry Rubenstein: In the year and you kind of.
Andrew Harry Rubenstein: It gives us confidence that.
Andrew Harry Rubenstein: Where we sit.
Andrew Harry Rubenstein: And kind of the.
Andrew Harry Rubenstein: World of gaming.
Andrew Harry Rubenstein: Talk the talk about like the the vertical of gaming.
Andrew Harry Rubenstein: That where we are the.
Andrew Harry Rubenstein:
Andrew Harry Rubenstein: The gaming entertainment that is closest to home.
Andrew Harry Rubenstein: It takes the least investment.
Andrew Harry Rubenstein: You don't have to fly anywhere. You don't have to have a large commitment in terms of the play. And so as the dollars get pushed, [inaudible] Good, every day or weekly entertainment, and we seem to benefit from all kinds of economic cycles, and the question is just how much. Thank you very much.
Andrew Harry Rubenstein: To participate you don't have to drive very far to fly anywhere.
Andrew Harry Rubenstein: You don't have to have a large commitment.
Andrew Harry Rubenstein: Of the play.
Andrew Harry Rubenstein: And so as the dollars get pushed.
Andrew Harry Rubenstein: Away from the destination gaming even away from.
Andrew Harry Rubenstein: At peoples drop off from the regional Big Casino nights out.
Andrew Harry Rubenstein:
Andrew Harry Rubenstein: They keep one those dollars get pushed down to us, but even more importantly.
Andrew Harry Rubenstein: They have a world regular experience for them.
Andrew Harry Rubenstein: Good.
Andrew Harry Rubenstein: Every day, our weekly entertainment and we seem to benefit.
Andrew Harry Rubenstein: <unk>.
Andrew Harry Rubenstein: And kind of all economic cycles and the question is just how much.
Andrew Harry Rubenstein: Thank you very much.
Speaker Change: Thank you.
Operator: Our next question comes from Steve Pizzella with Deutsche Bank. Please proceed. Steve, your line is now open.
Andrew Harry Rubenstein: Our next question comes from Steve <unk> with Deutsche Bank.
Steven Donald Pizzella: Please proceed.
Steven Donald Pizzella: Steve Your line is now open.
Steven Donald Pizzella: Hey can you hear me now.
Steven Donald Pizzella: Yes. Hey, Steve.
Steven Donald Pizzella: Yes, Hey, Steve.
Steven Donald Pizzella: Hey Matt, Andy, thanks. And good evening, everyone. Just wanted to ask from an M&A perspective, what's kind of holding back deals from getting to the finish line? And what geographies have you guys been looking at?
Steven Donald Pizzella: Hey, Matt Andy Thanks.
Steven Donald Pizzella: Good evening, everyone just wanted to ask from an M&A perspective.
Steven Donald Pizzella: What's kind of holding back deal from getting to the finish line.
Steven Donald Pizzella: And what geographies have you guys been looking at.
Andrew Harry Rubenstein: So I don't think there's anything that's been holding them back. We take a very disciplined approach, going through due diligence, making sure that any regulatory questions are answered prior to closing. I believe that some of the things that we're pursuing will get there. It's just more important to us to get there in a very confident way, minimizing any future risks, and to fully understand the business and the potential revenue, and then make sure it's priced accordingly. So,
Speaker Change: So I don't think theres anything thats been holding them back.
Andrew Harry Rubenstein: We take a very disciplined approach going through diligence.
Andrew Harry Rubenstein: Making sure that any regulatory questions are answered prior to closing.
Andrew Harry Rubenstein: And I.
Andrew Harry Rubenstein: I believe that.
Andrew Harry Rubenstein: Some of the things that we're pursuing.
Andrew Harry Rubenstein: We will get there.
Andrew Harry Rubenstein: It's just more important to us to get there and they vary.
Andrew Harry Rubenstein:
Andrew Harry Rubenstein: Confident way minimizing any future risk.
Andrew Harry Rubenstein: And to fully understand the business and the potential revenue and then make sure it's priced accordingly.
Andrew Harry Rubenstein: So.
Andrew Harry Rubenstein: The.
Andrew Harry Rubenstein: [inaudible] These opportunities are going to be significantly accretive to the business, but we've been doing a lot of work to make sure they're the right type of opportunities for Accel to expand. And as far as geographically, as a national company, it's not just one market or one area of the country that we're looking at. I would expect us to be involved in multiple markets by the end of the year, with some of these opportunities that we've talked about, and we're excited to share that with you when they get to the finish line.
Andrew Harry Rubenstein: These opportunities are.
Andrew Harry Rubenstein: Are we believe are going to be.
Andrew Harry Rubenstein: <unk> significantly accretive to the business.
Andrew Harry Rubenstein: We have been doing a lot of work to make sure the right type of opportunities.
Andrew Harry Rubenstein: For <unk> to expand.
Andrew Harry Rubenstein: And as far as geographically.
Andrew Harry Rubenstein: As being a national company.
Andrew Harry Rubenstein: Not just one market or one area of the country that we're looking I would expect us to be involved in multiple markets.
Andrew Harry Rubenstein: By the end of the year with some of these opportunities that we've talked about and we're excited to share that with you.
Andrew Harry Rubenstein: When they get to the finish line.
Andrew Harry Rubenstein: Okay, thanks. And then it's always nice to see revenue growth in Illinois even when the location hold per day is down year over year, driven by actual location growth. Can you give us any color on the pipeline you have for location growth moving forward, whether in Illinois or some of your other states, and how we should think about that for the remainder of the year?
Speaker Change: Okay. Thanks, and then always nice to see revenue growth in Illinois, even one.
Andrew Harry Rubenstein: Location hold per day is down year over year.
Andrew Harry Rubenstein: Driven by the actual location growth.
Andrew Harry Rubenstein: Can you give us any color on the pipeline you have solar.
Andrew Harry Rubenstein: Location growth moving forward.
Andrew Harry Rubenstein: Some of your other stores and how we should think about that.
Andrew Harry Rubenstein: The remainder of the year.
Andrew Harry Rubenstein: I mean, we continue to have opportunities. Establishment owners select us consistently over our competition, and we tend to win on the sales front over and over again. And whether that's Illinois, whether it's Montana, whether it's Nevada, toward.
Andrew Harry Rubenstein: Yes.
Andrew Harry Rubenstein: We continue to have the opportunities.
Andrew Harry Rubenstein: We the establishment.
Andrew Harry Rubenstein: Establishment owners.
Andrew Harry Rubenstein: Select us consistently over our competition.
Andrew Harry Rubenstein: And we tend to win on the sales front over and over again.
Andrew Harry Rubenstein: Whether thats, Illinois, whether it's Montana, whether it's Nevada.
Andrew Harry Rubenstein: George.
Andrew Harry Rubenstein: And I think that theme will continue to..., carry us as we move forward. We obviously always experience business owners that are not successful, and their establishments close. The locations that we sign, on the whole, are definitely a big improvement for what we lose. So you're seeing constant improvement in the portfolio. I think as we've seen some softness with some of our locations, they will be a little more cautious in bringing on new locations.
Andrew Harry Rubenstein: And I think that that team will continue to.
Andrew Harry Rubenstein: Carry us as we move forward.
Andrew Harry Rubenstein: We are obviously always experience business owners that are not successful in their establishments close.
Andrew Harry Rubenstein: But.
Andrew Harry Rubenstein: We continue to upgrade our portfolio as the bottom kind of self cleansers.
Andrew Harry Rubenstein: And.
Andrew Harry Rubenstein: The locations that we sign on on a whole are definitely a big improvement from what we lose.
Andrew Harry Rubenstein: <unk> seen a constant improvement in.
Andrew Harry Rubenstein: In the portfolio.
Andrew Harry Rubenstein: I think as we've seen some.
Andrew Harry Rubenstein: Softness with some of our locations that will be a little more cautious.
Andrew Harry Rubenstein: And bringing on new locations.
Andrew Harry Rubenstein: Because going forward.
Andrew Harry Rubenstein: Going forward, there's You need a certain amount of revenue on the location side, more than we do, to support your establishment's cost structure. [inaudible] Labor costs rise, and Cost of Goods Sold, they impact those businesses greater than ours. And so we're very aware that their business model changes to be a little more cautious as we sign up new locations.
Andrew Harry Rubenstein: There is you need a certain amount of revenue on the location side more than than we do to support your established.
Andrew Harry Rubenstein: Establishment cost structure.
Andrew Harry Rubenstein: There is.
Andrew Harry Rubenstein: Labor.
Andrew Harry Rubenstein: Costs rise.
Andrew Harry Rubenstein: Raw material costs.
Andrew Harry Rubenstein: Cost of goods sold.
Andrew Harry Rubenstein: The impact of those businesses.
Andrew Harry Rubenstein: Greater than ours, and so we're very aware.
Andrew Harry Rubenstein: Is there business model changes to be a little more cautious.
Andrew Harry Rubenstein: As we sign up new.
Andrew Harry Rubenstein: New locations.
Steven Donald Pizzella: Okay, thanks. And then just one more for me, if I may. The Nevada location hold per day was just slightly negative year over year in the quarter. Is there anything you're seeing in that market that you want to highlight, and how should we think about that moving forward?
Speaker Change: Okay. Thanks, and then just one more from me if I may.
Steven Donald Pizzella: Nevada location hold per day.
Steven Donald Pizzella: I was just slightly negative year over year in the quarter.
Steven Donald Pizzella: Anything you are seeing in that market the high level, how should we think about that moving forward.
Mathew Ellis: Thanks, Steve. This is Matt.
Steven Donald Pizzella: Thanks, Steve This is Matt.
Matt: I think.
Mathew Ellis: You know, I think similar to what Andy said earlier, players push for our local close to home offering, and there's a very local regional offering there as well. We don't see anything systemic. I think demand is still there. If you look at the overall local market, I think we're on the better end of that spectrum. And it's just again, our offering improves, especially because we're able to make smart investments in that market with our location. So, obviously, I would love to see it go up, but I think with what you're seeing, again, it highlights that close-to-home, convenient offering, the whole concept of 10 minutes door-to-door versus a much further journey to somewhere.
Matt: Similar to what Andy said earlier players push to our local close to home offering and there is a very local regional offering there as well but.
Mathew Ellis: We don't see anything systemic I think demand is still there.
Mathew Ellis: You look at that overall locals market I think we're on the better end of that spectrum.
Mathew Ellis: And it's just again.
Mathew Ellis: We're offering improves, especially we're able to make smart investments in that market with our location. So.
Mathew Ellis: Obviously, I would love to see it up but I think with what Youre seeing again, it highlights that close to home convenient offering the whole concept of 10 minutes door to door versus a much further journey to something else.
Steven Donald Pizzella: Okay, I appreciate it. Thanks, guys. Thank you.
Speaker Change: Okay I appreciate it thanks guys.
Speaker Change: Thank you.
Operator: Thank you all for your questions. There are currently no questions waiting, so as a reminder, it is Star 1 to ask a question. It seems we have no further questions, so I will pass the conference back over to Andy Rubenstein for closing remarks.
Speaker Change: Thank you all for your questions.
Andrew Harry Rubenstein: There are currently no questions waiting so as a reminder, it is star one to ask a question.
Operator: It seems we have no further questions. So I will pass the conference back over to Andy Rubenstein for closing remarks.
Andrew Harry Rubenstein: And thank you, everyone, for joining us today. As a reminder, the Accel Entertainment annual meeting is tomorrow.
Andrew Harry Rubenstein: Okay. Thank you everyone for joining us today as a reminder, the.
Andrew Harry Rubenstein: <unk> Entertainment annual meeting is tomorrow.
Andrew Harry Rubenstein: I hope everyone will be able to join us. We had a very good first quarter, despite a rough start. We're excited one month into the second quarter. We look forward to sharing more and more news about the growth of Accel on next quarter's call. So, thank you and hope all of you enjoy the rest of your week. The Mother's Day Weekend.
Andrew Harry Rubenstein: Im hoping everyone will be able to join us.
Andrew Harry Rubenstein: <unk> had a very good first quarter, despite a rough start.
Andrew Harry Rubenstein: We're excited.
Andrew Harry Rubenstein: One month into the second quarter.
Andrew Harry Rubenstein: <unk>.
Andrew Harry Rubenstein: We look forward to sharing.
Andrew Harry Rubenstein: More and more news about the growth of excel.
Andrew Harry Rubenstein: On next quarter's call. So thank you and.
Andrew Harry Rubenstein: All of you enjoy.
Andrew Harry Rubenstein: The other day mother's day weekend.
Andrew Harry Rubenstein: Okay.
Operator: That will conclude today's conference call. Thank you all for your participation. You may now disconnect your line.
Speaker Change: That will conclude today's conference call.
Operator: Thank you all for your participation you may now disconnect your lines.
Operator: Okay.
Operator: Okay.