Cash America 2015 Annual Report Download - page 67

In addition, net cash provided by continuing operating activities decreased $7.9 million due to the reclassification
during 2014 of cash from “Restricted cash” to “Cash and cash equivalents” on the Company’s consolidated balance
sheet in connection with the release of restrictions on certain funds associated with the Company’s consent order
issued by the CFPB. The decrease also resulted from a $5.4 million decrease for current and deferred income taxes
payable, mainly due to payments received from Enova in 2014 related to its income tax liability for 2014. Finally,
net cash provided by continuing operating activities were affected by a $4.2 million decrease related to additional
changes in operating assets and liabilities and non-cash adjustments.
Management believes that its expected cash flows from operations and available cash balances and
borrowings will be sufficient to fund the Company’s operating liquidity needs.
2014 comparison to 2013
Net cash provided by continuing operating activities was $127.8 million in 2014, which represented a
decreaseof$13.0million,or9.2%,from$140.8millionin2013,primarilyduetoa$69.9milliondecreaseinnet
incomefromcontinuingoperationsanda$20.4milliondecreaseinaccountspayableandaccruedexpenses,
primarily as a result of an $18.6 million payment made in 2014 related to the accrued 2013 Litigation Settlement.
Partially offsetting this decrease, net cash provided by continuing operating activities increased
$23.6millionduetocurrentanddeferredincometaxespayable,primarilyasaresultoftherecognizedincometax
benefit of $33.2 million associated with the Creazione Deduction in 2013, offset by the tax impact of lower pre-tax
incomein2014.Netcashprovidedbycontinuingoperatingactivitiesalsoincreased$19.8millionduetoa
downward adjustment for non-cash interest income on the Enova Note Receivable in 2013, which was paid by
Enova as part of the full repayment of the Enova Note Receivable in 2014. In addition, net cash provided by
continuingoperatingactivitiesincreased$15.9millionduetochangesin“Restrictedcash.”The Company
established an $8.0 million restricted cash fund in 2013 in connection with the Company’s Consent Order issued by
the CFPB. In 2014, the Company reclassified a majority of the cash previously held in “Restricted cash” to “Cash
and cash equivalents” in connection with the release of restrictions on the accrued funds. Net cash provided by
continuing operating activities also increased $8.3 million due to upward adjustments for non-cash losses on the
extinguishment of debt and divestitures. Finally, net cash provided by continuing operating activities increased $9.7
million due to additional changes in operating assets and liabilities and non-cash adjustments.
Cash Flows from Continuing Investing Activities
2015 comparison to 2014
Net cash used in continuing investing activities was $64.5 million in 2015, which represented a decrease of
$551.6 million, or 113.2%, from net cash provided by continuing investing activities of $487.1 million in 2014,
primarily due to transactions related to the Company’s former subsidiary, Enova, that occurred in 2014 prior to the
Enova Spin-off. Proceeds from these transactions totaled $553.4 million and included $431.0 million in proceeds
for the repayment in full of the Enova Note Receivable and $122.4 million in cash dividends received from Enova
in 2014 with no corresponding amounts in 2015. In addition, the Company completed the divestitures of its Mexico-
based pawn operations and all five pawn-lending locations in Colorado in 2014 and received aggregate cash
consideration, net of cash held at the date of divestiture, of $21.5 million, compared to aggregate net cash
considerationof$2.9millionreceivedforthedivestitureof12lendinglocationsin2015.Partiallyoffsetting these
factors,cashusedinconsumerloanactivitiesdecreased$13.8millionin2015comparedto2014,duetoadecrease
in the volume of consumer loans written as a result of the Company’s strategic reduction of its consumer lending
activities.
In addition, expenditures for property and equipment decreased $17.5 million in 2015 compared to 2014.
Management anticipates that expenditures for property and equipment for 2016 will be between $25 million and
$30 million, excluding acquisitions of stores, primarily for information technology development investments, the
remodeling of stores, facility upgrades and technology infrastructure.
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