Group 1 - The article discusses the expertise of a seasoned equity analyst and accountant specializing in restaurant stocks, highlighting the analytical models and valuation techniques employed to provide insights and strategies for investors [1] - The coverage of the company includes various segments of the restaurant industry such as QSR, fast casual, casual dining, fine dining, and family dining, indicating a comprehensive approach to market analysis [1] - The analyst's engagement in academic and journalistic initiatives aims to promote financial education and accessibility of complex financial topics to a broader audience [1]

Core Insights - Vivic Corp. has secured a significant order from ACEL Power Inc. for three electric yachts, valued at approximately US$2.2 million, to be paid in installments based on milestone achievements [1][2][3] - The contract is expected to enhance Vivic's position in the high-end electric yacht market and reflects ACEL's recognition of Vivic's capabilities [3][4] - The partnership with ACEL is aimed at developing new energy-electric yachts, leveraging the complementary technical expertise of both companies to foster innovation in the industry [3][4] Company Overview - Vivic Corp. is focused on becoming a global leader in the yacht industry, emphasizing innovative technology, product diversity, and sustainable development [5][6] - The company offers a wide range of products, including all-electric and traditional power yachts, and provides comprehensive pre-sales and after-sales services [5][6] - Vivic is committed to environmental protection and social responsibility, striving for sustainable development while catering to various client needs [5][6]

Group 1 - Accel Entertainment (ACEL) has experienced a significant decline of 10.6% over the past four weeks, but it is now in oversold territory, indicating a potential trend reversal [1] - The Relative Strength Index (RSI) for ACEL is currently at 28.82, suggesting that the heavy selling pressure may be exhausting itself [5] - There is strong consensus among Wall Street analysts that ACEL will report better earnings than previously predicted, with a 23.7% increase in the consensus EPS estimate over the last 30 days [6] Group 2 - ACEL holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [7]

Regulatory Risks - The company is subject to strict government regulations that may limit operations and expose it to fines or penalties [110] - The company is involved in an administrative hearing process related to alleged violations of the Video Gaming Act, which could affect its ability to retain or obtain licenses [113] - Changes in gaming or horse racing legislation could hinder operations and increase compliance costs, potentially impacting profitability [114] - The company is monitoring regulatory developments that could impact the expansion of gaming operations [125] - Holders of Class A-1 common stock are subject to gaming regulations, which may require disclosure and qualification by gaming authorities [150] - Changes in gaming laws and regulations could impact the company's operations and market position [153] Financial Condition and Debt - As of December 31, 2024, the company had total indebtedness of $597.4 million, all borrowed under the Credit Agreement, with approximately $143.5 million of availability [134] - The company is required to maintain a consolidated first lien net debt to consolidated EBITDA ratio no greater than 4.50 to 1.00 and a consolidated EBITDA to consolidated fixed charges ratio no less than 1.20 to 1.00 [141] - The company may not have sufficient cash flows from operating activities to service all indebtedness and may need to take actions such as refinancing or selling assets [136] - As of December 31, 2024, borrowings under the senior secured credit facility amounted to $597.4 million [274] - A 1.0% increase in underlying interest rates would result in an annual increase in interest expense of approximately $3.0 million, assuming the balance remains at $597.4 million [274] - The company has hedged the variability of cash flows attributable to changes in the 1-month LIBOR/SOFR interest rate on the first $300 million of the term loan through a series of 48 deferred premium caplets [274] Operational Risks - The company faces risks from natural disasters that could disrupt operations and impact financial condition [109] - The company may incur significant expenses related to product defects or claims from location partners, affecting profitability [115] - Ongoing litigation could result in substantial costs and distract management from core operations [117] - The company’s financial results depend on estimates and judgments that, if incorrect, could adversely affect operating results [118] - Security breaches or disruptions could compromise sensitive information and expose the company to liability [126] - The company faces risks related to third-party service providers, such as Microsoft and Salesforce, which have experienced cybersecurity incidents that could adversely affect operations [129] Market Risks - The company is exposed to interest rate risk as a significant portion of borrowings are at variable rates, which could negatively impact cash flows and financial condition if rates increase [135] - The market price and trading volume of Class A-1 common stock may be volatile and could decline significantly due to various factors [152] - Future issuances of debt or equity securities may adversely affect the market price of existing securities and could be dilutive to current stockholders [156] - The company may face substantial costs and management distraction from potential securities class-action litigation following periods of market volatility [155] - The company is exposed to market risk primarily due to fluctuations in interest rates [273] - The sale or perception of a large number of securities could depress the market price of Class A-1 common stock [162] Strategic Risks - The company’s success relies on the protection of intellectual property, which may be difficult to enforce [120] - The company may incur significant upfront costs prior to receiving any revenue under gaming or amusement contracts, impacting liquidity and the ability to secure new contracts [131] - The company’s ability to pursue strategic acquisitions or market expansions may be restricted if adequate liquidity is not maintained [132] - The company may not realize anticipated returns on new or renewed contracts due to factors like lower retail sales or higher operating expenses [132]

Financial Data and Key Metrics Changes - For Q4 2024, total revenue reached $318 million, a year-over-year increase of 6.9%, and adjusted EBITDA was $47 million, up 6.2% year-over-year [23] - For the full year, total revenue was $1.2 billion, reflecting a 5.2% increase, while adjusted EBITDA increased by 4.2% to $189 million [7][23] - As of December 31, the company had 26,346 terminals across 4,117 locations, representing year-over-year increases of 5% and 3.9%, respectively [23] Business Line Data and Key Metrics Changes - In Illinois, revenue per location was $868 per day, a 3.5% increase year-over-year, while Montana saw $614 per day, up 4.6% year-over-year [23] - Nebraska reported $253 per day, a 5.9% increase year-over-year, while Nevada experienced a decrease of 6.7% to $786 per day [23] Market Data and Key Metrics Changes - Illinois, the largest market, posted market-wide GGR growth of 4% year-over-year, outperforming Illinois casinos which were down 3% year-over-year [8] - The company strategically closed 54 underperforming locations in 2024 to right-size operations in response to a 1% increase in state gaming tax [10] Company Strategy and Development Direction - The company is focused on organic growth in Illinois, Nebraska, and Georgia, while also pursuing M&A opportunities in the fragmented local gaming market [16][17] - The Fairmont acquisition includes a master sports betting license and aims to develop a locally focused casino, with phase one expected to open in Q2 2025 [19][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth opportunities within the local gaming market, emphasizing the importance of maintaining a healthy balance sheet and low leverage [30] - The company is optimistic about the potential rollout of ticket in, ticket out (TITO) technology in 2025, which is expected to enhance the gaming experience [13] Other Important Information - Capital expenditures for 2024 were $67 million, with forecasts of $75 million to $80 million for 2025 [25] - The board authorized replenishing the share repurchase program back to $200 million, indicating a commitment to returning capital to shareholders [26][27] Q&A Session Summary Question: Contributions from Louisiana and Fairmont to the model - Management indicated that Louisiana is expected to contribute $6 million of EBITDA for the full year 2025, with Fairmont projected to generate $25 million of EBITDA once fully operational [34] Question: Trends in Illinois and other markets - Management noted favorable weather conditions in January contributed to strong performance, while February saw less favorable conditions [38] Question: Pruning of Illinois units and future growth - Management clarified that pruning is an ongoing process and that growth will manifest as assets are redeployed into better-performing locations [44] Question: Expansion in e-pull tabs and legislative developments - Management acknowledged the potential of the e-pull tab market but emphasized the need for partnerships to participate effectively [49] Question: Growth opportunities in Louisiana - Management highlighted the fragmented nature of the Louisiana market, particularly in truck stops and bars, as a significant growth opportunity [61]

Core Viewpoint - Accel Entertainment reported quarterly earnings of $0.19 per share, missing the Zacks Consensus Estimate of $0.21 per share, and showing a decline from $0.26 per share a year ago, indicating an earnings surprise of -9.52% [1] Group 1: Earnings Performance - The company posted revenues of $317.52 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.81%, compared to $297.07 million in the same quarter last year [2] - Over the last four quarters, Accel Entertainment has exceeded consensus EPS estimates three times [2] Group 2: Stock Performance - Accel Entertainment shares have increased approximately 11.1% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] Group 3: Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.21 on revenues of $312.4 million, and for the current fiscal year, it is $0.85 on revenues of $1.26 billion [7] - The estimate revisions trend for Accel Entertainment is currently favorable, leading to a Zacks Rank 1 (Strong Buy) for the stock, suggesting expected outperformance in the near future [6] Group 4: Industry Context - The Gaming industry, to which Accel Entertainment belongs, is currently ranked in the top 22% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Performance - Ended Q4 2024 with record revenues of $317.5 million, an increase of 6.9% compared to Q4 2023[3] - Total net revenues for YE 2024 reached $1.2 billion, reflecting a 5.2% increase from YE 2023[3] - Net income for Q4 2024 was $8.4 million, a decrease of 47.5% compared to Q4 2023[3] - Adjusted EBITDA for Q4 2024 was $47.4 million, an increase of 6.2% compared to Q4 2023[3] - Net income for 2024 was $35,291,000, a decrease of $10,312,000 or 22.6% compared to 2023[15] - Adjusted net income for 2024 was $77,089,000, down $5,431,000 or 6.6% from the previous year[15] - Operating income for 2024 was $90,884,000, a decrease of $16,523,000 or 15.4% from $107,407,000 in 2023[30] - Interest expense increased to $35,892,000 in 2024, up $2,748,000 or 8.3% from $33,144,000 in 2023[15] - The company experienced a significant increase in other expenses, net, which rose to $19,339,000, up $12,886,000 or 199.7% from $6,453,000 in 2023[15] Revenue and Assets - Total net revenues increased to $1,230,972,000 in 2024, up $60,552,000 or 5.2% from $1,170,420,000 in 2023[30] - Adjusted EBITDA for 2024 was $189,147,000, reflecting an increase of $7,702,000 or 4.2% from $181,445,000 in 2023[15] - Total assets increased to $1,048,398,000 in 2024 from $912,893,000 in 2023, representing a growth of approximately 15%[32] - Current assets rose to $326,152,000 in 2024, up from $312,594,000 in 2023, an increase of about 4.5%[32] - Total stockholders' equity increased to $255,029,000 in 2024, compared to $198,404,000 in 2023, reflecting a growth of approximately 28.5%[32] - Cash and cash equivalents grew to $281,305,000 in 2024, up from $261,611,000 in 2023, marking an increase of about 7.5%[32] - Total noncurrent assets increased to $414,249,000 in 2024 from $339,486,000 in 2023, representing a growth of about 22%[32] Liabilities and Debt - Net debt increased to $314 million, an 11.8% rise compared to Q4 2023[3] - Net debt as of December 31, 2024, was $314,074,000, an increase from $280,963,000 in 2023[16] - Long-term liabilities rose to $670,738,000 in 2024 from $604,839,000 in 2023, indicating an increase of approximately 10.9%[32] - Total current liabilities increased to $118,353,000 in 2024, up from $109,650,000 in 2023, reflecting a growth of about 7.5%[32] Share Repurchase and Acquisitions - The company repurchased approximately $4.0 million of Class A-1 common stock in Q4 2024[3] - The Board approved a replenishment of the share repurchase program to $200 million[3] - The company repurchased a total of 13,855,897 shares for $143.6 million under its share repurchase program as of December 31, 2024[17] - The acquisition of Toucan Gaming in Louisiana was completed on November 1, 2024, expanding market presence[3] - The acquisition of FanDuel Sportsbook & Horse Racing was finalized on December 2, 2024, with construction on Phase I of the casino underway[3] Growth Metrics - The company ended Q4 2024 with 4,117 locations, a 3.9% increase from Q4 2023[3] - Accumulated earnings grew to $134,736,000 in 2024, compared to $99,484,000 in 2023, indicating an increase of approximately 35.4%[32] - Goodwill increased to $116,252,000 in 2024, compared to $101,554,000 in 2023, representing a growth of about 14.5%[32] - Additional paid-in capital rose to $221,625,000 in 2024 from $203,046,000 in 2023, an increase of approximately 9.2%[32]

Core Viewpoint - The market anticipates a year-over-year decline in Accel Entertainment's earnings despite an increase in revenues for the quarter ending December 2024, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Accel Entertainment is expected to report quarterly earnings of $0.21 per share, reflecting a year-over-year decrease of 19.2%, while revenues are projected to be $308.85 million, up 4% from the previous year [3]. - The earnings report is scheduled for release on February 27, 2025, and could lead to stock price increases if results exceed expectations [2]. Estimate Revisions - The consensus EPS estimate has been revised 2.7% higher in the last 30 days, indicating a collective reassessment by analysts [4]. - A positive Earnings ESP of +26.83% suggests that analysts have recently become more optimistic about the company's earnings prospects [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy) [8]. - Accel Entertainment currently holds a Zacks Rank of 1, enhancing the likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Accel Entertainment exceeded the expected earnings of $0.18 per share by delivering $0.22, resulting in a surprise of +22.22% [12]. - The company has successfully beaten consensus EPS estimates in the last four quarters [13]. Conclusion - Accel Entertainment is positioned as a compelling candidate for an earnings beat, but investors should consider additional factors influencing stock performance beyond earnings results [16].

Core Viewpoint - The liquidity of stocks is crucial for investors, influencing a company's ability to meet debt obligations and providing potential for maximum returns. Four top-ranked stocks are recommended for portfolio consideration: Accel Entertainment, Inc. (ACEL), Frontdoor, Inc. (FTDR), EverQuote, Inc. (EVER), and Roku, Inc. (ROKU) [1][2]. Group 1: Stock Recommendations - Accel Entertainment, Inc. (ACEL) is a distributed gaming operator that recently acquired 85% of Toucan Gaming and LSM Gaming for $40 million, reporting revenues of $302.2 million, a 5.1% year-over-year increase, and adjusted EBITDA of $45.9 million, up 3.9% year-over-year [10][11]. - Frontdoor, Inc. (FTDR) is the parent company of home service plan brands and recently acquired 2-10 Home Buyers Warranty for $585 million, with revenues of $540 million, a 3% year-over-year increase, and a gross margin expansion of 550 basis points to 57% [12][13][14][15]. - EverQuote, Inc. (EVER) operates as an online insurance marketplace, reporting total revenues of $144.5 million, a significant 163% year-over-year increase, and has a strong focus on technology and data assets [16][17][18]. - Roku, Inc. (ROKU) is a leading TV streaming platform provider, reporting fourth-quarter revenues of $1.2 billion, a 22% year-over-year increase, and an increase in average revenue per user to $41.49 [19][20][21][22]. Group 2: Financial Metrics and Screening Criteria - Current Ratio, Quick Ratio, and Cash Ratio are essential metrics for assessing liquidity, with ideal ranges being 1-3 for current and quick ratios, and greater than 1 for cash ratio, indicating a company's ability to meet obligations [3][4][5][7]. - Asset utilization is a key screening parameter, with companies showing higher ratios than their industry averages considered efficient [6][7]. - Stocks with a Zacks Rank of 1 (Strong Buy) and a Growth Score of A or B are more likely to outperform, narrowing the selection to a few top candidates [8].

Core Viewpoint - Accel Entertainment (ACEL) has shown a 14% gain over the past four weeks, with a mean price target of $15 indicating a potential upside of 25.2% from the current price of $11.98 [1][2]. Price Targets and Analyst Consensus - The mean estimate consists of three short-term price targets with a standard deviation of $0, suggesting strong agreement among analysts [2]. - The lowest estimate of $15 indicates a 25.2% increase from the current price level, while the most optimistic analyst also expects the stock to reach $15 [2]. - A low standard deviation signifies a high degree of agreement among analysts regarding the stock's price movement direction and magnitude [7]. Earnings Estimates and Analyst Optimism - Analysts have shown growing optimism regarding ACEL's earnings prospects, as indicated by a strong consensus in revising EPS estimates higher [9]. - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 0.7%, with one estimate moving higher and no negative revisions [10]. - ACEL currently holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [11]. Implications of Price Targets - While the consensus price target may not reliably indicate the extent of potential gains, it does provide a directional guide for price movement [12].