Cash America 2015 Annual Report Download - page 68

Proceeds from disposition of marketable securities increased cash from investing activities by $0.5 million
in 2015 compared to 2014, due to the disposition of Enova common stock that was withheld for taxes in conjunction
with the issuance of Enova shares under the Company’s long-term incentive plans. With respect to the Enova shares
retained by the Company in connection with the Enova Spin-off, the Company agreed, pursuant to a private letter
ruling received from the Internal Revenue Service, to dispose of its Enova shares (other than shares retained for
delivery under the Company’s long-term incentive plans) within two years following the Enova Spin-off, which will
increase cash flows from continuing investing activities when sold. At the time of the private letter ruling, Company
management believed that the Company’s shares of Enova common stock would be registered with the Securities
and Exchange Commission (“SEC”) as close to the Enova Spin-off date as possible in order to efficiently dispose of
the shares in open market dispositions over a two-year period. Due to delays in the registration process, the
Company’s shares of Enova common stock were not registered until September 15, 2015, thereby only allowing the
Company slightly over a year to dispose of its shares of Enova stock. In November 2015, the Company sent a
supplemental request to the Internal Revenue Service requesting that the Company be allowed to extend the original
two-year period to dispose of its retained shares of Enova common stock by an additional year. The Company
anticipates that it will receive a response from the Internal Revenue Service in the first half of 2016.
The Company’s investment in Enova common stock was $42.6 million as of December 31, 2015 based on a
quoted market price per share of $6.61. AsofDecember31,2014,theCompany’sinvestmentinEnovacommon
stock was $131.6 million, based on a quoted market price per share of $22.26, less an adjustment factor since these
shares were not yet registered with the SEC as of that date. See “Item 8. Financial Statements and Supplementary
Data—Note 9” for additional information.
2014 comparison to 2013
Net cash provided by continuing investing activities was $487.1 million in 2014, which represented an
increase of $720.1 million from net cash used in continuing investing activities of $233.0 million in 2013, primarily
due to transactions related to the Company’s former subsidiary, Enova, that occurred in 2014 prior to the Enova
Spin-off. These transactions included the receipt of $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, compared to the receipt
of $36.2 million in proceeds for the Enova Note Receivable in 2013.
Investing cash flows in 2014 compared to 2013 also benefited from a $164.1 million decrease in cash used
for acquisitions. 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. Furthermore, investing cash flows increased in 2014 compared to 2013 due to
an $8.5 million decrease in cash used for purchases of property and equipment.
Cash Flows from Continuing Financing Activities
2015 comparison to 2014
Netcashflowsusedincontinuingfinancingactivitieswas$94.9millionin2015,whichrepresenteda
decreaseof$486.6million,from$581.5millionin2014.The decrease was mainly due to a decrease of
$589.3millionfordebtpayments,netofborrowings,in2015comparedto2014.The debt payment activity in 2014
took place prior to the Enova Spin-off and was facilitated by the proceeds received from Enova for the Enova Note
Receivable and from cash dividends received from Enova. Debt payment activity in 2014 included $193.7 million
in net payments made under the Company’s Line of Credit and $380.5 million in payments made as part of the 2014
Debt Reduction. In 2015, the Company repurchased $12.0 million in principal amount of the 2018 Senior Notes and
had $27.1 million in net borrowings under its Line of Credit.
This decrease in net cash flows used in continuing financing activities was partially offset by an increase of
$101.7millionincashusedforrepurchasesofsharesoftheCompany’scommonstockin2015comparedto2014.
64