Cash America 2015 Annual Report Download - page 69
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Please find page 69 of the 2015 Cash America annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.In2015,theCompanyusedcashtorepurchase$104.6millionofitscommonstock.See“ShareRepurchases”below
for additional information.
AsofDecember31,2015,theCompanyhad$27.1millioninborrowingsoutstandingundertheLineof
Credit, with $252.9 million in available borrowings remaining under the Line of Credit as of that date. Management
believes that the borrowings available under the Line of Credit, anticipated cash generated from operations and
current working capital of $573.9 million is sufficient to meet the Company’s anticipated capital requirements for its
business. In addition, the Company had standby letters of credit of $6.0 million issued under its $20.0 million
standbyLetterofCreditFacilityasofDecember31,2015.See“Item8.FinancialStatementsandSupplementary
Information—Note 11” for additional information regarding the Company’s debt instruments, including the Line of
Credit.
AsofDecember31,2015,2014and2013,theCompanybelievesitwasincompliancewithallcovenants
and other requirements set forth in its debt agreements. On June 26, 2015, Wilmington Savings Fund Society, FSB,
as trustee (the “Trustee”) under the Indenture, dated as of May 15, 2013, that governs the 2018 Senior Notes, among
the Company, the guarantors party thereto and the Trustee (the “2018 Senior Notes Indenture”), filed a lawsuit
against the Company in the United States District Court for the Southern District of New York. The lawsuit alleges
that the Enova Spin-off was not permitted by the 2018 Senior Notes Indenture, and the Trustee is seeking a remedy
equal to principal and accrued and unpaid interest, plus a make-whole premium, to be paid to the holders of the
2018 Senior Notes. The Company disagrees with the assertion in the lawsuit that the Enova Spin-off was not
permitted under the 2018 Senior Notes Indenture. The Company also disagrees that a make-whole premium would
be due to the holders of the 2018 Senior Notes even if it is determined that the Enova Spin-off was not permitted
under the 2018 Senior Notes Indenture. The Company believes the position taken by the Trustee is without merit,
and the Company intends to vigorously defend its position. Regardless of the outcome of this claim, the Company
has ample liquidity and capital resources to sustain its ongoing operations and to repay the 2018 Senior Notes,
including any make-whole premium on the 2018 Senior Notes, if such a premium were to be finally determined to
be payable, notwithstanding the Company’s belief that such a premium is not payable. The Company’s sources of
liquidityincludeavailabilityundertheLineofCredit,whichhad$252.9millioninunusedamountsasofDecember
31, 2015. AsofDecember31,2015,theCompanyhad$184.5millioninaggregateprincipalamountof2018Senior
Notesoutstanding,andamake-wholepremiumonsuchprincipalbalancesasofDecember31,2015wouldhave
been approximately $18.7 million.
2014 comparison to 2013
Netcashusedincontinuingfinancingactivitieswas$581.5millionin2014,whichrepresentedadecrease
of$670.8millioncomparedtonetcashprovidedbycontinuingfinancingactivitiesof$89.3millionin2013.This
decreasewasprimarilyduetoa$424.9millionincreaseincashusedtopaydowndebtin2014andincluded$193.7
million in net payments made under the Line of Credit and $380.5 million in payments made as part of the 2014
Debt Reduction. In addition, net cash provided by continuing financing activities in 2013 included $300.0 million in
cash received from the issuance in 2013 of the 2018 Senior Notes. Partially offsetting this activity, cash used for
repurchasesofsharesoftheCompany’scommonstockdecreased$44.7millionin2014comparedto2013.
Net Cash Flows from Discontinued Operations
2014 comparison to 2013
Net cash flows provided by discontinued operations increased by $51.2 million in 2014 compared to 2013,
primarily due to a $143.0 million decrease in cash used by investing activities in 2014, mainly as a result of a
decrease in cash used for consumer loan activities due to decreased loans written and increased payments from
customers and collections on consumer loans. The increase in cash flows provided by discontinued activities was
partially offsetbya$39.8millionincreaseincashusedbyfinancingactivities,primarilyduetopaymentsof
$431.0millionmadebyEnovatorepaytheEnovaNoteReceivableandforaggregatedividendpaymentsof
$122.4milliontotheCompanyin2014,aswellasa$52.0milliondecreaseincashprovidedbyoperatingactivities,
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