2023 Q2 Form 10-Q Financial Statement

#000169899123000028 Filed on May 03, 2023

View on sec.gov

Income Statement

Concept 2023 Q2 2023 Q1 2022 Q4
Revenue $292.6M $293.2M $278.1M
YoY Change 28.43% 48.92% 44.59%
Cost Of Revenue $204.5M $205.0M $195.3M
YoY Change 31.54% 54.55% 50.67%
Gross Profit $88.19M $88.25M $82.75M
YoY Change 21.74% 37.3% 32.02%
Gross Profit Margin 30.13% 30.1% 29.76%
Selling, General & Admin $44.22M $43.02M $42.31M
YoY Change 35.15% 38.24% 31.49%
% of Gross Profit 50.14% 48.75% 51.13%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $9.400M $9.100M $13.93M
YoY Change -7.59% 56.9% 48.67%
% of Gross Profit 10.66% 10.31% 16.83%
Operating Expenses $59.02M $60.57M $57.66M
YoY Change 30.8% 40.66% 26.39%
Operating Profit $29.16M $27.67M $25.09M
YoY Change 6.77% 30.49% 47.07%
Interest Expense -$8.243M -$7.888M -$7.606M
YoY Change 117.44% 97.15% 156.44%
% of Operating Profit -28.26% -28.51% -30.31%
Other Income/Expense, Net -$4.836M -$4.602M $47.00K
YoY Change -184.52% -234.68% -101.62%
Pretax Income $16.09M $15.18M $17.54M
YoY Change -45.0% -26.38% 74.48%
Income Tax $6.100M $6.000M $4.129M
% Of Pretax Income 37.92% 39.52% 23.55%
Net Earnings $9.983M $9.182M $13.41M
YoY Change -55.56% -41.84% 96.97%
Net Earnings / Revenue 3.41% 3.13% 4.82%
Basic Earnings Per Share $0.12 $0.11
Diluted Earnings Per Share $0.11 $0.11 $0.15
COMMON SHARES
Basic Shares Outstanding 86.01M shares 86.67M shares 87.47M shares
Diluted Shares Outstanding 86.82M shares 87.13M shares

Balance Sheet

Concept 2023 Q2 2023 Q1 2022 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $233.4M $260.6M $256.2M
YoY Change -7.45% 14.82% 10.97%
Cash & Equivalents $233.4M $228.5M $224.1M
Short-Term Investments $0.00 $32.07M $32.07M
Other Short-Term Assets $11.93M $8.166M $8.427M
YoY Change -36.38% -24.6% -16.94%
Inventory $7.313M $7.476M $6.941M
Prepaid Expenses $8.009M $7.078M $7.407M
Receivables $9.713M $7.740M $11.17M
Other Receivables $909.0K $0.00 $538.0K
Total Short-Term Assets $280.9M $299.3M $299.2M
YoY Change -2.46% 17.54% 20.65%
LONG-TERM ASSETS
Property, Plant & Equipment $235.7M $225.8M $211.8M
YoY Change 24.28% 43.54% 39.14%
Goodwill $101.6M $101.6M $100.7M
YoY Change 119.81% 117.98%
Intangibles $21.80M $22.40M $23.00M
YoY Change
Long-Term Investments
YoY Change
Other Assets $346.7M $345.3M $351.7M
YoY Change 2597.22% 62.4% 62.96%
Total Long-Term Assets $582.4M $571.1M $563.6M
YoY Change 10.18% 54.38% 53.11%
TOTAL ASSETS
Total Short-Term Assets $280.9M $299.3M $299.2M
Total Long-Term Assets $582.4M $571.1M $563.6M
Total Assets $863.3M $870.3M $862.8M
YoY Change 5.72% 39.36% 40.04%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $24.51M $28.29M $22.30M
YoY Change 10.55% 45.83% 52.59%
Accrued Expenses $30.77M $31.84M $35.00M
YoY Change 20.47% 56.27% 44.07%
Deferred Revenue $1.500M $1.500M $1.500M
YoY Change -25.0% -28.57%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $28.47M $23.47M $23.47M
YoY Change 21.36% 27.16% 34.09%
Total Short-Term Liabilities $92.75M $92.86M $89.91M
YoY Change 7.85% 28.32% 25.15%
LONG-TERM LIABILITIES
Long-Term Debt $489.7M $514.1M $518.6M
YoY Change 2.32% 59.15% 60.04%
Other Long-Term Liabilities $5.514M $3.164M $3.390M
YoY Change -88.83% -94.28% -94.3%
Total Long-Term Liabilities $581.8M $595.0M $594.3M
YoY Change 10.19% 54.41% 54.05%
TOTAL LIABILITIES
Total Short-Term Liabilities $92.75M $92.86M $89.91M
Total Long-Term Liabilities $581.8M $595.0M $594.3M
Total Liabilities $674.5M $687.8M $684.2M
YoY Change 4.95% 50.28% 49.51%
SHAREHOLDERS EQUITY
Retained Earnings $73.05M $63.06M $53.88M
YoY Change -1522.58% -366.46%
Common Stock $9.000K $9.000K $9.000K
YoY Change 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost) $94.13M $85.90M $81.70M
YoY Change 274.84% 809.46%
Treasury Stock Shares
Shareholders Equity $188.7M $182.5M $178.6M
YoY Change
Total Liabilities & Shareholders Equity $863.3M $870.3M $862.8M
YoY Change 5.72% 39.36% 40.04%

Cashflow Statement

Concept 2023 Q2 2023 Q1 2022 Q4
OPERATING ACTIVITIES
Net Income $9.983M $9.182M $13.41M
YoY Change -55.56% -41.84% 96.97%
Depreciation, Depletion And Amortization $9.400M $9.100M $13.93M
YoY Change -7.59% 56.9% 48.67%
Cash From Operating Activities $25.86M $37.98M $29.75M
YoY Change 35.05% 72.17% -2.44%
INVESTING ACTIVITIES
Capital Expenditures $20.18M $21.46M $14.40M
YoY Change -411.89% 217.85% -231.09%
Acquisitions $2.600M
YoY Change
Other Investing Activities $27.52M -$2.124M -$5.991M
YoY Change -122.12% -681.92% 156.24%
Cash From Investing Activities $7.340M -$23.59M -$20.39M
YoY Change -105.61% 269.27% 53.05%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -28.30M -$9.982M 2.693M
YoY Change -120.65% -48.97% 55.31%
NET CHANGE
Cash From Operating Activities 25.86M $37.98M 29.75M
Cash From Investing Activities 7.340M -$23.59M -20.39M
Cash From Financing Activities -28.30M -$9.982M 2.693M
Net Change In Cash 4.905M $4.416M 12.05M
YoY Change -80.59% -213.58% -36.25%
FREE CASH FLOW
Cash From Operating Activities $25.86M $37.98M $29.75M
Capital Expenditures $20.18M $21.46M $14.40M
Free Cash Flow $5.686M $16.52M $15.35M
YoY Change -77.81% 7.92% -63.0%

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DepreciationDepletionAndAmortization
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CY2023Q1 acel Amortization Of Intangible Assets And Capitalized Contract Cost
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CY2022Q1 acel Amortization Of Intangible Assets And Capitalized Contract Cost
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CY2023Q1 us-gaap Amortization Of Financing Costs
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CY2022Q1 us-gaap Amortization Of Financing Costs
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CY2023Q1 acel Contingent Earnout Gain Loss On Change In Fair Value
ContingentEarnoutGainLossOnChangeInFairValue
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CY2022Q1 acel Contingent Earnout Gain Loss On Change In Fair Value
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CY2023Q1 us-gaap Share Based Compensation
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105000 usd
CY2023Q1 acel Gain Loss On Contract With Customer Asset Liability
GainLossOnContractWithCustomerAssetLiability
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CY2022Q1 acel Gain Loss On Contract With Customer Asset Liability
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CY2023Q1 us-gaap Business Combination Contingent Consideration Arrangements Change In Amount Of Contingent Consideration Liability1
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162000 usd
CY2022Q1 us-gaap Business Combination Contingent Consideration Arrangements Change In Amount Of Contingent Consideration Liability1
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CY2023Q1 us-gaap Accretion Expense
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CY2022Q1 us-gaap Accretion Expense
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CY2023Q1 us-gaap Deferred Income Tax Expense Benefit
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2315000 usd
CY2022Q1 us-gaap Deferred Income Tax Expense Benefit
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CY2023Q1 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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CY2022Q1 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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529000 usd
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CY2022Q1 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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58000 usd
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22061000 usd
CY2023Q1 us-gaap Payments To Acquire Property Plant And Equipment
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21461000 usd
CY2022Q1 us-gaap Payments To Acquire Property Plant And Equipment
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6752000 usd
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CY2022Q1 us-gaap Proceeds From Sale Of Property Plant And Equipment
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365000 usd
CY2023Q1 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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2600000 usd
CY2022Q1 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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CY2022Q1 us-gaap Net Cash Provided By Used In Investing Activities
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CY2023Q1 us-gaap Proceeds From Lines Of Credit
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CY2023Q1 us-gaap Repayments Of Lines Of Credit
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CY2023Q1 us-gaap Payments For Repurchase Of Common Stock
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CY2022Q1 us-gaap Payments For Repurchase Of Common Stock
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CY2022Q1 us-gaap Payments For Derivative Instrument Financing Activities
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CY2023Q1 acel Proceeds From Exerciseof Common Stock Optionsand Preferred Stock Warrants
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CY2022Q1 acel Proceeds From Exerciseof Common Stock Optionsand Preferred Stock Warrants
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CY2023Q1 us-gaap Payment For Contingent Consideration Liability Financing Activities
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CY2022Q1 us-gaap Payment For Contingent Consideration Liability Financing Activities
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CY2023Q1 us-gaap Payments Related To Tax Withholding For Share Based Compensation
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CY2022Q1 us-gaap Payments Related To Tax Withholding For Share Based Compensation
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CY2023Q1 us-gaap Net Cash Provided By Used In Financing Activities
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CY2022Q1 us-gaap Net Cash Provided By Used In Financing Activities
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CY2023Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
4416000 usd
CY2022Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
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CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2023Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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228529000 usd
CY2022Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2023Q1 us-gaap Interest Paid Net
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CY2022Q1 us-gaap Interest Paid Net
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CY2023Q1 us-gaap Proceeds From Income Tax Refunds
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CY2022Q1 us-gaap Proceeds From Income Tax Refunds
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204000 usd
CY2023Q1 us-gaap Capital Expenditures Incurred But Not Yet Paid
CapitalExpendituresIncurredButNotYetPaid
10885000 usd
CY2022Q1 us-gaap Capital Expenditures Incurred But Not Yet Paid
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4338000 usd
CY2023Q1 acel Deferred Premium On Derivatives
DeferredPremiumOnDerivatives
2784000 usd
CY2022Q1 acel Deferred Premium On Derivatives
DeferredPremiumOnDerivatives
3898000 usd
CY2023Q1 us-gaap Noncash Or Part Noncash Acquisition Net Nonmonetary Assets Acquired Liabilities Assumed1
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2600000 usd
CY2022Q1 us-gaap Noncash Or Part Noncash Acquisition Net Nonmonetary Assets Acquired Liabilities Assumed1
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CY2023Q1 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
2600000 usd
CY2022Q1 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
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CY2023Q1 us-gaap Nature Of Operations
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Description of Business<div style="margin-top:8pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:144%">Accel Entertainment, Inc. (and together with its subsidiaries, </span><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:144%">the </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:144%">“</span><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:144%">Company</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:144%">” or “Accel”)</span><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:144%"> is a leading distributed gaming operator in the United States. The Company's wholly owned subsidiary, Accel Entertainment Gaming, LLC, has been licensed by the State of Illinois Gaming Board (“IGB”) since March 15, 2012 to be a terminal operator in the State of Illinois. Its Illinois terminal operator license allows the Company to install and operate gaming terminals in licensed gaming locations throughout the State of Illinois as approved by individual municipalities. The Illinois terminal operator license, which is not transferable or assignable, requires compliance with applicable regulations and the license is renewable annually unless sooner cancelled or terminated. </span></div><div style="margin-top:8pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:144%">In July 2020, the Georgia Lottery Corporation approved one of the Company's consolidated subsidiaries as a licensed operator, or Master Licensee, which allows the Company to install and operate coin operated amusement machines for commercial use by the public for play </span><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:144%">throughout the State of Georgia</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:144%">. The Company also holds a license from the Pennsylvania Gaming Control Board. On December 30, 2021, one of the Company's consolidated subsidiaries acquired amusement and </span><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:144%">automated teller machines (“ATMs”)</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:144%"> operations in Iowa and registered with the Iowa Department of Inspections and Appeals to conduct such operations in Iowa. </span></div><div style="margin-top:8pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:144%"> On June 1, 2022, the Company acquired Century Gaming, Inc. (“Century”), which is a leading distributed gaming operator in the Montana and Nevada gaming markets. Century is also a manufacturer of gaming terminals in the Montana, Nevada, South Dakota, Louisiana and West Virginia markets. In connection with the acquisition, Accel was granted a two-year terminal operator license by the Nevada Gaming Commission and a manufacturer, distributor and route operator license by the Gambling Control Division of the Montana Department of Justice through June 2023. The Montana license is renewable annually. </span></div><div style="margin-top:8pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:144%">In June 2022, the Company became a licensed distributor of mechanical amusement devices (“MADs”) in Nebraska and commenced operations in this market. </span><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:144%">The Company also operates redemption terminals, which also function as ATMs at its gaming locations, and amusement equipment at certain locations. </span></div>The Company is also subject to various other federal, state and local laws and regulations in addition to gaming regulations.
CY2023Q1 acel Terminal Operator License Term
TerminalOperatorLicenseTerm
P2Y
CY2023Q1 us-gaap Use Of Estimates
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<span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:144%">Use of estimates</span><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:144%">: The preparation of condensed consolidated financial statements requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) disclosure of contingent assets and liabilities at the </span>date of the condensed consolidated financial statements and (iii) the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates used by the Company include, among other things, the useful lives for depreciable and amortizable assets, income tax provisions, the evaluation of the future realization of deferred tax assets, projected cash flows in assessing the initial valuation of intangible assets in conjunction with business acquisitions, the selection of useful lives for depreciable and amortizable assets in conjunction with business acquisitions, the valuation of level 3 investments, the valuation of contingent earnout shares and interest rate caplets, contingencies, and the expected term of share-based compensation awards and stock price volatility when computing share-based compensation expense. Actual results may differ from those estimates.
CY2023Q1 us-gaap Revenue From Contract With Customer Including Assessed Tax
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CY2023Q1 us-gaap Inventory Valuation Reserves
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0 usd
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CY2023Q1 us-gaap Depreciation Depletion And Amortization
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CY2022Q1 us-gaap Depreciation Depletion And Amortization
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CY2023Q1 acel Contract With Customer Liability Gross
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CY2023Q1 acel Capitalized Contract Cost Subject To Claw Back
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400000 usd
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300000 usd
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185083000 usd
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CY2023Q1 us-gaap Goodwill
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CY2023Q1 us-gaap Business Acquisition Purchase Price Allocation Goodwill Expected Tax Deductible Amount
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CY2022Q4 us-gaap Goodwill
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CY2022Q4 us-gaap Intangible Assets Net Excluding Goodwill
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CY2023Q1 us-gaap Debt Instrument Carrying Amount
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CY2023Q1 acel Interest Rate Caplet Liability
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CY2022Q4 acel Interest Rate Caplet Liability
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CY2022Q4 us-gaap Deferred Finance Costs Net
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CY2023Q1 us-gaap Long Term Debt
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CY2022Q4 us-gaap Long Term Debt
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4900000 usd
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CY2022Q1 us-gaap Business Combination Pro Forma Information Earnings Or Loss Of Acquiree Since Acquisition Date Actual
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15788000 usd
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CY2023Q1 us-gaap Business Combination Contingent Consideration Liability Noncurrent
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CY2022Q4 us-gaap Business Combination Contingent Consideration Liability Noncurrent
BusinessCombinationContingentConsiderationLiabilityNoncurrent
6872000 usd
CY2023Q1 us-gaap Class Of Warrant Or Right Outstanding
ClassOfWarrantOrRightOutstanding
5144 shares
CY2021Q4 us-gaap Stock Repurchase Program Authorized Amount1
StockRepurchaseProgramAuthorizedAmount1
200000000 usd
us-gaap Stock Repurchased During Period Shares
StockRepurchasedDuringPeriodShares
8822001 shares
us-gaap Stock Repurchased During Period Value
StockRepurchasedDuringPeriodValue
92200000 usd
CY2023Q1 us-gaap Stock Repurchased During Period Shares
StockRepurchasedDuringPeriodShares
476718 shares
CY2023Q1 us-gaap Stock Repurchased During Period Value
StockRepurchasedDuringPeriodValue
4200000 usd
CY2023Q1 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
1700000 usd
CY2022Q1 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
1600000 usd
CY2023Q1 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
6000000.0 usd
CY2022Q1 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
4800000 usd
CY2023Q1 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.395
CY2022Q1 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.234
CY2023Q1 us-gaap Loss Contingency Number Of Defendants
LossContingencyNumberOfDefendants
10 defendant
CY2022Q1 us-gaap Loss Contingency Estimate Of Possible Loss
LossContingencyEstimateOfPossibleLoss
1000000 usd
CY2023Q1 us-gaap Net Income Loss
NetIncomeLoss
9182000 usd
CY2022Q1 us-gaap Net Income Loss
NetIncomeLoss
15788000 usd
CY2023Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
86885000 shares
CY2022Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
92993000 shares
CY2023Q1 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
247000 shares
CY2022Q1 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
748000 shares
CY2023Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
87132000 shares
CY2022Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
93741000 shares
CY2023Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.11
CY2022Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.17
CY2023Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.11
CY2022Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.17
CY2023Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
4907216 shares
CY2022Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
4729800 shares

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acel-20230331_def.xml Edgar Link unprocessable
acel-20230331_pre.xml Edgar Link unprocessable
0001698991-23-000028-index-headers.html Edgar Link pending
0001698991-23-000028-index.html Edgar Link pending
0001698991-23-000028.txt Edgar Link pending
0001698991-23-000028-xbrl.zip Edgar Link pending
accelex1013rsuagreement.htm Edgar Link pending
accelex1023psuagreement.htm Edgar Link pending
accelexhibit31133123.htm Edgar Link pending
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acel-20230331.htm Edgar Link pending
acel-20230331.xsd Edgar Link pending
Financial_Report.xlsx Edgar Link pending
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