Accel Entertainment, Inc.

Good afternoon and thank you for attending today's Excel Entertainment Q1 2025 earnings call. 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 queue for a question on today's call, you can do so by dialing star 1 on your telephone keypad. I'll now hand the call over to Scott Levin, Chief Legal Officer, to begin. You may proceed.

Welcome to Excel Entertainment's first quarter 2025 earnings call. Participating on the call today are Andy Rubenstein, Excel's chief executive officer, Matt Ellis, Excel's chief financial officer, and Mark Phelan, Excel's president of U.S. Gaming. 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 Litigation 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 statement section of the earnings press release available on our website, as well as other risk factor disclosures in our filings with the SEC. Any projected financial information presented in this call is for illustrative purposes only and should not be relied upon as being predictive of future results. The inclusion of any financial forecast information in this call should not be regarded as a representation by any person that the results reflected in such forecasts will be achieved. During the call, we may discuss certain non-GAAP financial measures. For reconciliation 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.

Thank you, Scott, and good afternoon, everyone. Thank you for joining today's call. I'm pleased to report we had another record-setting quarter with total revenue of $344 million, which is our highest quarterly revenue since going public. And we also had strong adjusted EBITDA of $50 million. Both revenue and adjusted EBITDA grew 7% year over year, demonstrating again the strength of our local distributed gaming model operated in 10 states and four time zones. During the first quarter, we continue to see stable revenue growth in our largest markets of Illinois and Montana with 4% and 8% Q1 year-over-year revenue growth, respectively. We see this trend continuing into Q2. Nebraska and Georgia continue to generate strong double-digit revenue growth, albeit from a smaller base, while Nevada experienced a small revenue decline in the first quarter as we worked through the loss of a key customer due to an ownership change. We've now completed the integration of our recently acquired operations in Louisiana and are looking forward to the revenue growth opportunities that this acquisition should generate. As a reminder, in late 2024, we took control over Kukan Gaming, which will continue to be led by its founder, Dan Giedros. who has over 22 years of local market industry experience. Operationally, the acquisition further expands Excel's Southeastern exposure, adding 96 locations and 614 terminals as of the end of the first quarter. As the combined entity continues to roll out operations, bringing together previously separate businesses, including legacy truck stops and organically developed distributed gaming routes we expect to drive further synergies and performance improvements over time finally we are proud to announce that fairmont park casino opened on april 18th being the first racino in illinois history mark will provide more details on fairmont and we look forward to it being another growth driver for excel Across our national footprint, we continue to refine our customer acquisition and retention efforts to drive profitable sales growth. Distributed gaming is a dynamic and competitive market, and Excel is differentiated by its scale and innovation, which will enable us to continue to grow and prosper. In addition, we continue to review our markets and operations to find areas of improvement. As a result, we identified additional efficiencies and opportunities for growth that will contribute to expanding free cash flow. We'd like to remind analysts, investors, and potential investors that our business, providing safe, convenient, and fun local gaming entertainment, is fundamentally straightforward and delivers compelling returns on invested capital. Unlike larger gaming operators with capital tied up in large, immobile projects, our model spreads capital across thousands of retail locations in multiple states and regions. This decentralized approach gives us the diversification and flexibility to reallocate capital efficiently based on local demand trends. Over the past four years, we've expanded beyond our home market of Illinois into new gaming jurisdictions through our distributed gaming model. We've made significant investments to integrate key operating platforms, procurement, logistics, finance, and reporting, and have worked closely with our local leaders to ensure all of Excel is aligned in delivering a superior gaming experience for our local players. Today, I'm confident in our ability to scale our proprietary products and services across our national footprint, delivering unmatched value to our retail location partners. I also believe our growing scale will continue to drive operational efficiencies, enhance financial performance, and deliver enhanced free cash flow growth. With that, I'm going to turn it over to Mark.