Accel Entertainment, Inc.

Ladies and gentlemen, please remain holding the call begin momentarily. Once again, please remain holding the call begin momentarily. Thank you. Good afternoon and thank you for attending today's Excel Entertainment third quarter earnings call. My name is Jason and I'll be the 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'd like to ask a question, please press star one on your telephone keypad. Now I'd like to pass the conference over to our host, Derek Harmer.

Welcome to Excel Entertainment's third quarter 2023 earnings call. Participating on the call today are Andy Rubenstein, Excel's Chief Executive Officer, and Matt Ellis, Excel'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 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. 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.

Thanks, Derek, and good afternoon, everyone. Thank you for joining us for Excel's third quarter earnings call. I am pleased to report we have another strong quarter. We reported revenue of $287 million, a year-over-year increase of 8%, an 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. On the expense side, our cost structure continues to remain stable. despite the inflationary impacts on labor and other expenses, such as parts. While the labor market remains tight, we have seen some signs of stabilization, allowing us to better retain and attract talent. Our vendors have worked through nearly all the supply chain disruptions and are now able to provide parts on a timely and consistent basis. Our asset-light business model and highly variable cost structure allow us to quickly calibrate our business to any changes in the economy. Looking at future growth, our pipeline remains active and I'm excited to share we're evaluating multiple opportunities across the country. We're working hard to get those opportunities across the finish line and look forward to sharing them with you in the future. Our long-term goal remains to continue to increase the percentage of our revenue that is generated outside of Illinois. Overall, Excel continues to execute its growth playbook. We remain excited about the opportunities in the markets where we are currently operating, as well as new markets where we're looking to enter. Our strong balance sheet, local business model, and highly visible growth offers one of the best returns in gaming. With that, I'd like to turn it over to Matt to walk you through our financials in more detail.